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WRA Real Estate Exam Questions & answers
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WRA Real Estate Exam Questions & answers
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WRA Real Estate ExamAgency - CORRECT ANSWER-Is the foundation upon which real estate
brokerage is practiced. Agency describes a legal and ethical relationship
between a real estate licensee and a party to a transaction. A party can be a
buyer, a seller, a landlord, or a tenant.
Licensee - CORRECT ANSWER-Is any person licensed under state law to
practice real estate. A licensee is any person licensed as a salesperson, an
individual broker. or a broker business entity.
Broker - CORRECT ANSWER-Is someone who can be included in the 5 part
definition. Negotiation, pattern of sales, shows property, or advertises property,
issues a written report of property value that is prepared for another person that
is not an appraisal.
Negotiation - CORRECT ANSWER-A broker is a person who, for another,
person, and for commision, money or other thing of value, negotaties or offers or
attempts to negotiate a sale or service.
Negotiate means to provide assistance within the scope of knowledge, skills, and
training. This includes
a) Acting as an intermediary by facilitating or participating in communications
between parties related to the parties' interests in a transaction.
b) Completing, when requested by a party, appropriate board-approved forms or
other writings to document the party's proposal consistent with the party's
instruction.
c)Presenting to a party the proposals of other parties to the transaction and
giving the party a general explanation of the provisions of the proposal.
Just providing information or showing a property is not negotiation. Determining
when a person moves from just providing information about a property to acting
as an intermediary is not always clear.
,Pattern of Sales - CORRECT ANSWER-Presumptive evidence that a broker's
license is required because one has participated in five sales in one year or 10
sales in five years. Ex for a builder, they would have to get their license or hirer a
brokerage to represent them.
Shows Property - CORRECT ANSWER-Shows real estate, showing real
property, does not include someone showing rental properties.
If a property owner pays someone to show the person's home to potential
buyers, the person who is showing the home needs to be licensed. If a rental
property owner hires a person to show rental properties, who they hire does not
need a license in a sense the owner can show it.
Advertises Property - CORRECT ANSWER-Promotes the sale, exchange,
purchase, option, rental or leasing of real estate, a timeshare, or a business or its
goodwill, inventory, or fixtures, whether or not the business includes real property.
This does not include publishing or disseminating verbatim information provided
by another person.
Issues a written report of property value - CORRECT ANSWER-A broker is a
person who issues a written report of property value that is prepared for another
person, such as a seller, and that is not an appraisal.
Exchange - CORRECT ANSWER-Sales of real property will probably make up
the largest part of a licensee's real estate practice, but licensees can also assist
parties in other transactions such as exchanges, options, and business sales.
An exchange is a tax-planning tool for a property owner to exchange on property
for another and defer payment of the tax on the gain realized from the transfer.
Option to Purchase - CORRECT ANSWER-An agreement to keep open, for a set
period, an offer to sell or lease real property. An option gives a buyer time to
resolve questions of financing, title, or zoning before committing to purchase the
property.
,Business sale - CORRECT ANSWER-Any type of business that is for sale
including the goodwill of an existing business and all the assets. A business sale
does not necessarily include the building in which the business is located.
A person owns a building where she operates a restaurant. She sells the
restaurant, including the restaurant's goodwill, the name, and the entire inventory
but not the building. A buyer purchases the business and executes a lease with
the building owner for the space in the building.
Who does not need a license? - CORRECT ANSWER-Receivers, trustees,
personal representatives, guardians, or other persons appointed by or acting
under a judgement or order of the court.
Personal Representative - CORRECT ANSWER-a person who represents and
settles the estate of deceased persons, i.e., executors and administrators. If they
sell eight properties in one year as instructed by the terms of the decedent's will.
By selling more than five properties in one year, the personal representative
establishes a pattern of sales buy is statutorily exempt from needing a license
even when engaging in activities that are part of the definition of broker.
Public officers while performing official duties - CORRECT ANSWER-A sheriff
engages in the sale of real property when selling foreclosed properties. When
doing so, a sheriff could quickly develop a pattern of sales by selling more than
five properties in one year. The sheriff does not need a license.
Any custodian, janitor, employee or agent of the owner or manager of a
residential building who accepts applications for leases and gives information. -
CORRECT ANSWER-This covers property managers who show residential units
and provide information. If a property manager can sign leases on behalf of a
landlord or can negotiate lease terms on behalf of the landlord, the property
manager must have a license.
attorney - CORRECT ANSWER-yes they want to receive a commision for listing
a property or acting as a buyer's firm.
Firm - CORRECT ANSWER-A licensed individual broker acting as a sole
proprietorship or a licensed broker business entity.
, Salesperson - CORRECT ANSWER-A person who performs real estate activities
while employed by or associated with a licensed real estate broker. They're a
licensee
Agent - CORRECT ANSWER-Act on behalf of a principal and carries out the
directions of the principal. A seller or a buyer hires a brokerage firm to act as the
seller's or the buyer's agent in a real estate transaction. A firm engages licensees
to act as agents of the firm.
A buyer hires a firm to negotiate on the buyer's behalf in the purchase of a
property. The firm is the agent of the buyer, who is the principal in the
relationship.
A seller hires a firm to list a property for sale. The firm is the agent of the seller
and the seller is the principal.
A firm engages licensees to act for the firm when working with or representing
buyers and sellers. The licensees are agents of the firm.
Client - CORRECT ANSWER-A party to a transaction who has an agency
agreement with a firm for brokerage services. The client is the party who hires
the agent to represent the client's interest. When a seller signs a listing contract,
the seller is the client and the listing firm is the seller's agent. A buyer who signs
a buyer agency agreement is a client and the buyer's firm is the buyer's agent.
A seller hires a real estate firm to list a property. The seller is the client and the
listing firm is the seller's agent. A licensee is the firm's agent, which is why real
estate licensees are commonly referred to as agents.
Principal Firm - CORRECT ANSWER-A firm that engages a subagent to provide
brokerage services in a transaction. In many transactions, the principal firm is the
listing firm. A subagent is the agent of the principal firm.
Subagent - CORRECT ANSWER-Means a firm that is engaged by a principal
firm to provide a brokerage services in a transaction, but that is not associated
with the principal firm. A subagent may write an offer for a buyer-customer on a
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