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30 hr WA Real Estate Practice exam
Terms in this set (297)
You are recording an accrued expense for your seller client, Sam Bosworth. This represents an item that Sam ____________________.
Has incurred but hasn't paid
Because proper trust fund handling and record keeping is extremely important, the ________ conducts routine audits of real estate companies.
Washington State Department of Licensing
Karen would like to sell her own home. What's the minimum real estate license she must possess?
Carla is selling her house in Wenatchee to her sister. Neither party wants to be represented. They only want some assistance with handling the paperwork. Who should they consider engaging in this situation?
Which designation may you not use in any marketing materials unless you belong to NAR?
What's part of the licensee's role in the closing process?
Preparing clients for closing
Cheryl Ann received a summary judgment from the DOL because she did not ______ within 20 days of receiving notice of a DOL investigation.
Request a hearing.
How are Washington commission members selected?
Appointed by the governor.
In Washington, the buyer usually pays for which of the following title insurance policies?
Lender's title insurance
Amendments to a Washington property management agreement must be ______.
In Washington, a designated broker holds a ______ license.
Which one of the following entities is responsible for creating Washington real estate laws and statutes?
Licensee compensation is funneled through the broker. Who may pay the compensation that goes through the broker?
A party to the transaction, a third party, or another broker
Frank, a Washington broker, wants to open his own real estate firm. Which of the following statements is true?
Frank must either hire a designated broker or be endorsed as one himself.
In Washington, what kind of license is issued to a corporation that performs brokerage services?
In Washington, which agency is authorized to disseminate and enforce real estate licensing laws?
Department of Licensing
If a Washington real estate firm is closing, the firm's designated broker must provide an affidavit to the Washington DOL within ______ days.
How does Washington define subagency?
An agent appointed by another agent to assist the principal
Charlie represents Sue, a buyer, in Redmond. Charlie is being paid by Claude, the seller, through his brokerage. What's true about this situation?
This doesn't change the agency relationships.
For which of the following expenses will a lender most likely require reserves?
Homeowner's insurance and real estate taxes
Robert has passed his Washington broker's licensing exam. How long does he have to apply for his license?
In a real estate company office, the licenses of all brokers who are affiliated with the company must be displayed ________.
In a public area
Tomas, a listing agent, plans to share his commission with Marea, who served as a subagent and interpreter for his clients who spoke Portuguese. How will Marea receive her share of the commission?
Tomas' company will provide Marea's commission.
In Washington, what's it called when a licensee performs tasks for but doesn't represent a customer?
Marcel has been engaging in some shady real estate practices, but no one has filed a complaint against him. However, the Washington DOL director heard about his actions. What option does the director have?
Launch an investigation without a formal complaint.
Which of the following areas would be considered a "closely related field" as a substitution for broker experience on the Washington managing broker's license application?
Real property appraisal
Candidates for a Washington commission seat must have five years of brokerage experience, or ______ years of experience in a related investigative position.
Deana is a broker for North Washington Realty, LLC, and is the listing broker from a property. In this transaction, what kinds of compensation is Deana entitled to receive from payors other than her brokerage firm?
All compensation must be paid through her broker.
Washington licensees can maintain their licenses in inactive status as long as they want. Which of the following statements about the reactivation requirement is correct?
Licensees with inactive licenses must continue to renew their licenses every two years.
All new Washington licensees must submit fingerprint cards when applying for a real estate license. How often do licensees submit fingerprint cards after they receive their first license?
Every three renewal periods
If the Washington DOL director determines that a complaint has merit, must the DOL launch an investigation?
No. The director may determine that the violation wasn't severe enough or doesn't pose a danger to consumers.
What's the best way to create an agency relationship in Washington?
Jessie works for Tri-City Homes. She's the cooperating broker on a sale made through Golden Realty. Golden Realty issues Jessie a check for her portion of the commission. Which of the following statements about this situation is true?
This is illegal because Jessie isn't licensed to work with Golden Realty.
Which duty to clients in Washington generally survives termination of the agency relationship?
Someone who has agency representation with a Washington licensee is a ______.
What kind of research does WCRER perform?
Some Washington real estate brokerage records may be kept offsite if they're for transactions that closed how long ago?
One year or more
Dontelle had a great experience with his apartment and landlord until about three months ago, when the plumbing in the unit above started leaking into his apartment. The landlord keeps saying he'll fix it but hasn't, and now Dontelle has mold growing on two walls. Dontelle is moving out before his lease has expired, due to ________.
Who delivers the evidence of a clear title at the closing?
Title insurance representative
Tamara is assisting a buyer who's making an offer on her client's listing in Renton. Tamara and the buyer develop a good rapport, and in her desire to be helpful, Tamara offers the buyer advice about how to structure her offer. What does Tamara risk being charged with?
Undisclosed dual agency
Ethan is a real estate licensee in Seattle. He's busy making last-minute preparations for an open house at his client's property. What type of agent is he?
How will the buyer or seller know where and when the closing is being held?
Their agents will inform them of the date once it's set.
In a Washington real estate company, what must be displayed or available for viewing in a public area?
Larry is assisting a buyer who's making an offer on his client's listing in Edmonds. If Larry is too helpful to the buyer, what might occur?
Implied agency and undisclosed dual agency
Washington's director has taken steps to restrict a managing broker from supervising other brokers until after the broker's hearing has taken place. What's the official term for this type of action?
Who requests authorization from the Washington Department of Licensing to establish a branch office?
The designated broker
Managing broker applicants in Washington must have three years' broker experience or ______ to qualify to take the exam.
Five years' experience in a closely related field
How often is the Washington Real Estate Commission required to meet?
Four times a year
In Washington, how many hours of coursework must an applicant complete before applying for a managing broker's license?
Which of the following activities must be specifically delegated in order for a Washington branch manager to perform it?
Handling trust accounts
In Washington, what does it mean to have a disciplinary action stayed?
The action is suspended or delayed until a future date.
Eleanor from X Realty in Lynnwood has a new listing, and, with the seller's permission, Eleanor appointed Trent from Target Realty as her subagent. Trent brings a buyer customer to the listing, and the customer ends up buying the property. What's true about the agency relationships in this situation?
Trent owes his loyalty to the seller.
If a real estate company in Washington moves to a new address, the designated broker has ________ to inform the Department of Licensing.
Washington rules indicate that a designated broker may delegate to a branch manager the task of reviewing which of the following documents?
Which of the following describes a statutory duty that's performed by a Washington managing broker?
Provide increased supervision for new licensees.
Robert's Washington real estate license was immediately restricted when he received notice that a complaint had been filed against him and an investigation would follow. What's the earliest that a hearing can be held after the notice is served?
As soon as possible
How is the physical license for a branch office handled in Washington?
A duplicate of the primary firm's license, which displays both the primary firm's and the branch office's address, is issued.
In Washington, what agency role involves a licensee working on behalf of another agent's principal?
Jerry owns and operates his own real estate firm as a sole proprietor, and no other licensees working with him. He uses a trust account to deposit all earnest money. If the DOL audits him, which of the following would cause trouble for Jerry?
The inability to show a clear audit trail of where the money in the trust account came from and where it went
How frequently should property management commissions be disbursed from a Washington trust account?
At least monthly
The director has decided that Marty's infraction wasn't serious, but Marty needs to be put on notice that his actions aren't acceptable. The director can issue a letter of ________ or reprimand.
Tina applied for a Washington broker's license after her license in Wyoming was revoked. The DOL denied her application, and Tina requested a review. If the director decides to review the matter, can a brief adjudicative hearing be used to resolve the issue?
Yes. A brief hearing process can be used for licensee or applicant issues.
In Washington real estate, DOL stands for ______.
Department of Licensing
Harrison is the buyer's agent for a transaction in which Mary, who works for a different Washington brokerage, is listing the house for seller Graham. From whom will Harrison receive his compensation?
From his own brokerage
In addition to the required education and experience to request a substitution, what must applicants for a Washington managing broker's license submit with the application?
How much real estate practice experience must a Washington broker have to become a managing broker?
You're representing Abe and Burt in a dual agency situation. Abe tells you something that would give Burt a distinct advantage if he knew. Do you tell Burt?
No, because you can't share one client's confidential information with another client.
Golden Years Realty elects to use closing and title companies to manage earnest money deposits. Jessica, a broker with Golden Years, gets a receipt from Equity Title for an earnest money deposit from a buyer. What must she do with the receipt?
Present it to the firm's designated broker for placement in the transaction file.
Terry represents Farrah, the seller of a property in Seattle. Michael is representing Troy, the buyer. Who is/are the principal(s) in this transaction?
Farrah and Troy
A Washington managing broker is allowed to complete certain tasks related to licensee supervision, but only if those tasks are ______ by the designated broker.
Tracy, a Washington broker, is working with buyers on two transactions. Both buyers want to look at houses all day on the coming Saturday. Tracy asks her brother, who's also a broker, to show homes to one of the buyers, saying she'll give him part of her commission as a referral fee when the buyers purchase a home. Which of the following statement about this is true?
Tracy can pay a referral fee to her brother as long as the payment is processed through her brokerage firm.
Which of these is an example of commingling in Washington?
Mixing earnest money with personal funds
How long must confidential information remain confidential?
In Washington, designated brokers may delegate some of their responsibilities, but these delegations must be ______.
Made in writing
Terrance is a managing broker in Washington. He's moving to a new firm. What does he have to do to transfer his license?
Use the same process as a broker.
What are the three primary acts that impact mortgage loan disclosure?
RESPA, TILA, and Dodd-Frank
Jenny is a Washington property manager who's preparing a budget for property repairs and improvements, which is a(n) ______ budget.
Kayleigh is closing on the house she's purchasing on Wednesday. Which of these statements is true?
The lender must provide the Closing Disclosure by Friday of the week before closing.
You decide to take the earnest money deposit you've been given and place it in your personal account until it is needed at the final closing. What violation have you committed?
What's true about broker responsibilities in Washington?
They include but aren't limited to those in the regulations.
Which of the following must always be disclosed to parties in a transaction in order to adhere to Washington standards of professional conduct?
A broker's personal interest in a property
Firm names in Washington must be unique, which means they can't be similar to the name of any other national firm or local firm in the same area, and they should not be misleading in any way. Which of the following would be most appropriate for a small, local firm?
Perfectly at Home Real Estate
The primary purpose of the Real Estate Settlement Procedures Act is to ensure that Washington buyers ______.
Know all settlement costs up front
Who provides real estate-specific information in a Washington disciplinary investigation?
A member or members of the commission
In Washington, an agency's duties are determined by ______.
In order for a licensed firm to share commissions with another firm, what must be true of the second firm?
It must be licensed to do business with the original firm.
Tera opened her own brokerage firm, and she's working within a strict budget. She opens a checking account that she uses for both operating funds and to hold earnest money deposits. This is an illegal practice called ______.
Which of the following requirements would a Washington licensee renewing for the first time be required to complete that isn't required for a second renewal?
30 hours of advanced practice
Which of the following statements about an expired real estate license in Washington is correct?
Expired licenses are considered inactive until renewal is complete.
Carlotta is performing brokerage duties in Washington though she doesn't yet have her real estate license. What provision in Washington's licensing law permits Carlotta to do this?
If she's passed her licensing exam and submitted all application materials, she can work under a temporary license.
Howard is a managing broker in Spokane. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What role does Howard play in this transaction?
Howard is a dual agent for both the buyer and the seller.
Jarvis is an expert negotiator. He's helping his colleague negotiate a multi-million-dollar Seattle commercial real estate development transaction with a commercial broker, and his colleague has agreed to pay Jarvis a percentage of the first year's profit if the deal comes together. Which of the following factors requires that Jarvis be licensed?
The promise of compensation
An administrative hearing in Washington may be held when a licensee appeals the decision from a brief adjudicative hearing. In what other situation is an administrative law hearing held?
To respond to a licensing law complaint when the hearing is more complex than a brief adjudicative hearing will resolve.
Where does Washington require brokerages to keep current records?
In the licensed office address
What's the minimum age requirement to qualify for a Washington managing broker's license?
Kevin and Marsha have both been through the real estate buying and selling process in Washington many times. They don't want representation, but they'd like Mark to facilitate their transaction. Mark is acting as a ______.
Who, with the advice and support of the Washington Real Estate Commission, establishes rules and regulations and enforces real estate licensing law in Washington?
Margaret initially showed a property to Trina, who decided not to make an offer at that time. Two weeks later, without notifying Margaret, Trina made an offer on the property through another brokerage firm. What term relates to the party (Margaret) who started the chain of events that led to this sale?
Which of the following statements about trust account service charges, fees for checks, and other administrative charges for a pooled account is true?
Bank charges are business expenses of the real estate firm and may not be funded through the accrued interest or trust funds deposited in a pooled account.
Which of the following sanctions would be most appropriate for a Washington licensee who generally does a good job of following licensing laws, but has received several complaints about incorrectly completed contract forms?
Satisfactory completion of prescribed training
If a listing agreement doesn't state that the listing broker is permitted to share compensation with a cooperating broker, which of the following statements is true about a cooperating (selling) broker's responsibility under Washington law?
The cooperating brokerage firm may decline to show to the buyer any properties for which there is no compensation agreement with the listing broker.
Roberto has been a managing broker for 15 years. He's been offered a position with the Washington State Department of Licensing. Which of these statements about this situation is true?
In order to accept the DOL position, Roberto must inactivate his license.
In Washington, brokers who supervise other brokers are called ______.
In Washington, licensees renewing for the first time will complete ______ hours in advanced practice coursework, ______ hours in real estate law, ______ hours of continuing education coursework, and a ______-hour core course.
30, 30, 27, 3
Jerry, a Washington licensee, is holding an open house for a property he's listing. He speaks to several visitors, but none of them discuss making an offer. What are these visitors called?
One of the following tasks is outside the scope of the Washington DOL director. Which is it?
Pass laws and statutes related to real estate licensing laws.
What is the maximum amount of time that can elapse between completing the required coursework and applying for a Washington managing broker's license?
In Washington, whose responsibility is it to supervise associated licensees?
Which document is signed and agreed to at closing and reconciles what the final financial obligations are for both the buyer and seller?
How many hours of unused CE credit may be carried over to the next license renewal period in Washington?
Jennifer is selling her property in Puyallup and hired Larry as her agent. After the property is listed, Jane brings her client, Andrew, to see the property, which Andrew is interested in purchasing. Who is Jane in this scenario?
A buyer's agent
Which of the following factors related to the property purchased will have the greatest impact on closing costs?
Select the statement that best describes how to handle a Washington tenant's security deposit.
The landlord or property manager must deposit security deposits in a trust account.
Joy, who has no experience in real estate, has passed her Washington broker's license exam. Which of the following is true about Joy's license?
Joy must be affiliated with an actively licensed firm to apply for her license.
In addition to routine audits, real estate company audits may be conducted under what circumstances?
If a previous audit revealed violations
Tanya has been a closing officer at Integrity First Title Company for eight years. She has a bachelor's degree in business finance. Which of the following statements is correct regarding her experience and the related Washington managing broker's exam?
Even without a degree, Tanya's eight years of experience as a closing officer will likely qualify her.
In Washington, designated brokers must ensure that all contracts are submitted for recordkeeping at the brokerage no more than ______ days after the parties sign the contract.
As part of a designated broker's supervisory responsibilities, the broker must review brokerage service contracts involving which licensees?
Licensees with fewer than two years of experience
What must a Washington broker disclose to all parties in writing prior to signing a purchase offer?
Whether the broker represents one or more of the parties
When is a Washington real estate license required?
When performing real estate activities for others, for compensation of any kind
Which of the following is the correct order of steps in getting a Washington real estate license?
Complete required coursework, take licensing exam, affiliate with a firm, apply for license
What's the relationship between the Loan Estimate and the Closing Disclosure used in Washington transactions?
Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the loan estimate.
Which of the following do a Washington broker, managing broker, designated broker, and real estate firm have in common?
Each is considered a licensee.
What does the Washington Residential Landlord-Tenant Act legislate?
If a buyer owes a seller for a June utility bill of $140, prorated for nine days, how much is the buyer's debit and seller's credit (rounded to the nearest whole dollar)?
The buyer owes the seller $42. The calculation is $140 ÷ 30 days in June = $4.67 per day. $4.67 x nine days = $42.03 ($42 rounded to the nearest whole dollar).
Agents Bothwell and Dones work for Hillside Realty. They've both worked with Jacob to find the perfect home for him. When Jacob finally buys a house, Dones, who's also the buyer's agent, receives his portion of the commission from Hillside. Dones then gives half of his commission to Bothwell. This is ______.
Illegal, because all commissions and commission splits must be paid through the brokerage firm
Licensees may be disciplined for violating Washington compensation laws. Which of the following options describes the possible penalties for doing so?
Censure, fines, probation
Kim is a licensee in Washington and has listed his own property for sale. Which of the following does Washington's standards of professional conduct require of him?
Kim must disclose his personal interest in the property to potential buyers.
Who may supervise a managing broker in Washington?
A managing broker
Per Washington regulations, what's the primary function of a property management accounting system?
Document cash in and cash out
Branch managers in Washington can supervise licensees and review their contracts if these duties are ______ by the designated broker.
Corey is a new broker working for Redmond City Realty. She has a buyer representation agreement with Craig, and helps him make an offer on a listing with Countryside Realty. When the sale closes, the seller pays the commission for the listing agent and for Corey. Who is Corey's client?
Terrance is interested in becoming a real estate broker in Washington. To qualify, how old must he be?
At the conclusion of a brief hearing in Washington, how are parties informed of the presiding officer's decision?
A written initial order will be served on both parties within 10 days of the hearing.
In Washington, compensation from more than one party in a single transaction is allowed if the broker ______.
Discloses it to all parties in writing
Kurt, who's licensed in another state, is applying for a Washington broker's license. If the DOL decides he's eligible under a written recognition agreement, what requirement will be waived for him?
The national portion of the exam
How many members serve on the Washington Real Estate Commission?
At closing, who pays for and receives clear title for the property being purchased?
After completing the required coursework, a candidate has ______ year(s) to complete the Washington broker's exam.
Sanctions for violating Washington compensation laws may be imposed on ________ in addition to the broker who committed the violation.
The firm's designated broker
Richard is a member of the Washington Real Estate Commission. His primary role is to provide advice and support to the ______.
Director of the DOL
Though Washington Administrative Code does allow the DOL director to develop written recognition agreements with other states, in practice, what qualifies licensees from other states to take only the state portion of the Washington licensing exam?
A similar license in good standing from another state
You call the closing agent at the title company to make arrangements for tomorrow's closing. As you're ending the call you say, "You know, I've been using your company quite frequently lately! I heard you guys have box seats at the arena; any chance I could get tickets?" The closing agent hesitates, but then quickly gets off the phone. You don't ever actually get any tickets, so why did you receive a letter of disciplinary inquiry from the DOL?
You asked for a gift from a title company, even though the gift wasn't ever actually received.
Which Washington office oversees administrative hearings?
Office of Administrative Hearings
Jonathan, a Washington licensee, has spoken with a new firm and plans to affiliate with it. Which of the following may be a reason he hasn't seen an online request from it to join the firm?
He hasn't separated from his current firm yet.
James is performing real estate activities under a court order, so he is ______.
Not required to have a real estate license
Your client is interested in placing his earnest money deposit in an individual trust account so that he can collect the interest. How large must the deposit be for this to be an option in Washington?
Greater than $10,000
In which of these scenarios would the consumer need a real estate license?
Jessie is searching for a new home for a friend moving into town, who will compensate her 2% of the sale price for her time and effort.
Karl plans to shop around for his mortgage loan to be sure he's getting the best interest rate and terms. What document from his lender permits him to make comparisons?
The Loan Estimate permits Kenneth to comparison shop.
Jimbo doesn't yet have a real estate license. Which activity is he legally allowed to perform without one?
Give advice to a friend who is negotiating the purchase of a house.
When homebuyers agree to open an escrow account for their mortgage, the mortgage lender uses that money to pay ______.
Taxes and insurance
As a way to deal with a slump in the real estate market in Washington, you've decided to launch a marketing campaign to pull in more clients. You create a series of ads claiming you're the best broker in town. What unprofessional conduct are you potentially engaging in?
False or misleading advertising
Which of the following information must appear on the firm's records for a trust account deposit?
The source of funds
Which of the following tasks does the Washington DOL director perform?
Establish rules for fingerprinting and background checks.
The Washington Legislature passed new laws designed to change the amount and type of required licensing education. The director proposed additional licensing rules to support the new legislation. What's the commission's role in this process?
The commission will provide advice to the director regarding necessary rules to support the new laws.
Disbursements from a Washington sales transaction trust account can't be made prior to closing without what?
Written release from both buyer and seller
What's the minimum financial penalty that can be imposed for a violation of licensing law in Washington?
What information is provided to the IRS on Form 1099-S after a real estate closing?
Address or legal description of the property
A(n) ______ budget helps property managers maximize profitability and avoid unforeseen major expenses and repairs.
Seller Martin is looking at his Closing Disclosure. Which one of the following items is he likely to see?
Licensed Washington brokers can't share commissions with anyone providing brokerage services if they're ______.
If a property management trust account in Washington bears interest, to whom must the interest be distributed?
The property owner
In Washington, how many hours of continuing education coursework must new licensees take before renewing for the first time?
Designated brokers are required to cooperate with the Washington DOL in any audits or ______.
It appears that Brianne's license in another state makes her eligible, under Washington's written recognition agreement, to get her Washington license. Which of the following is a step Brianne has to take to get the license?
Obtain and submit to the DOL a certified license history from her home state.
Kendra received a commission check from her firm for her portion of the sale of a seller client's home in Bellingham. She's an inexperienced licensee, and one of her colleagues provided a lot of advice. Kendra wants to share her commission, and her managing broker says, "Sure, go ahead. It's your money now." This is _______.
Illegal, because the funds must pass through the firm, not from one broker to another
Jon, a Washington managing broker, received an earnest money deposit check on Saturday. Which of the following statements best represents how Jon should handle this check after the offer's accepted?
Jon must deposit this check into the firm's trust account no later than the next banking day.
What's the term for a charge that either party has to pay at closing for a Washington real estate transaction?
Your real estate firm in Redmond is undergoing a routine audit. What could happen if the requested records aren't made immediately accessible to the auditors?
Disciplinary action against licensees and the company
What Washington document typically authorizes the listing brokerage firm to share the commission with the cooperating (selling) brokerage firm?
The listing agreement
Washington's statutory duties specify that licensees' duties are limited to those outlined under state statute. Based on this, which of the following statements is true?
Caroline isn't prohibited by the outlined statutory duties from performing value-added services for her clients.
In Washington, new licensees must complete a three-hour ______ course before their first renewal.
Melissa loves her job as a Washington real estate professional. Her broker supervises her as far as licensing law, but she sets her own hours and is paid based on results, not the time she puts in. Sure, she pays her own expenses, but she's cool with that. Which of the following best describes Melissa?
If a Washington real estate firm has a branch office, who's responsible for ensuring that the affiliated licensees properly maintain their licenses?
The Washington DOL director has reason to believe that a firm violated licensing law. Can the director initiate a complaint for investigation?
Yes. The director can initiate a complaint and begin the investigation process.
Renee received notice of a complaint and investigation against her, and agreed to a stipulated disposition. What does this mean in Washington?
The hearing process won't take place, and Renee will accept the director's sanctions as outlined to her.
In addition to real estate-specific knowledge, what does the Washington licensing exam test for?
Adequate knowledge of the English language
Firm financial management is a designated broker responsibility in Washington, but financial oversight can be delegated to ______.
What is the maximum amount of time that can elapse between completing the required coursework and applying for a Washington broker's license?
Can a Washington firm pay its business expenses directly out of a trust account?
No, they must be paid from a regular business account at the same bank
Which of the following statements about the duty to disclose material facts is true in Washington?
Licensees are required to disclose those material facts of which they have actual knowledge.
How is WCRER's research helpful to licensees?
Provides meaningful market data such as median home prices and housing affordability
Thomas, a Washington broker, received a notice of violation for failing to provide records upon request. If he chooses to ignore the notice, what may occur?
The director may issue a default judgment and impose sanctions based on whatever evidence is available.
Licensee Len receives an offer for his seller client's property. It's a good offer that Len thinks his client will accept. The only wrinkle is that it includes a one-quarter interest in a local hunting club as the earnest money deposit. Which of the following statements is true?
Len must inform his seller client of the form of earnest money before the seller signs the purchase contract.
Which one of the following residential property managers' duties requires that they handle leases, address tenant complaints and emergencies, supervise move-ins and move-outs, and evict tenants?
Under Washington law, a broker who performs real estate brokerage services for a buyer is a buyer's agent in which of the following situations?
The broker has a buyer's agency agreement with the buyer.
Roger let his neighbor, Carlene, think he was licensed when in fact his license had been suspended. He helped her negotiate the sale of her condo and happily deposited the check he received from her. What infraction is Roger guilty of?
Misrepresentation of his position
How often does a Washington real estate firm's license expire?
Every two years
The Washington Department of Licensing cancelled Karen's license after one year because she didn't renew it. Another six months has passed since her license was cancelled. What does Karen have to do to get her license back?
Complete 60 clock hours of continuing education coursework and file an affidavit of reactivation with the DOL.
Which of the following statements describing a dual agent's responsibilities in Washington is the most accurate?
The statutory duty of loyalty to a client is very difficult to perform in a dual agency relationship, given the duties of loyalty, confidentiality, and care.
In general, applicants for a Washington managing broker's license may substitute ______ years of closely related experience for the three years of required broker experience.
Determine which of the following statements regarding compensation is true.
Compensation may be (and usually is) shared between firms.
What happens to the interest earned on pooled Washington trust accounts?
The Washington State Treasurer's Office gets it
Which licensees may a Washington broker supervise?
David's Washington license has been inactive for two years. What does he have to do to reactivate it?
Complete and submit the DOL form.
Washington requires that real estate companies keep current transactional and trust account records in a specific location. Where must companies keep these records?
At the office address identified as the primary license location
Denise is switching Washington brokerage firms. She's talked with the firm she's going to affiliate with, and it's ready for her to start. What's the next step?
Separate from existing firm
Roger is a member of the Washington Real Estate Commission. What's his role during the disciplinary investigation process?
Provide expert advice to the director based on his real estate knowledge.
Jeannette, a real estate professional in Washington, knows a good deal when she sees one, so she decides to make an offer on a house that just came on the market. When she contacts the listing agent to set up a showing, she mentions that she's representing herself. Which duty requires Jeannette to provide this information?
Disclose personal interest in the property.
What disciplinary action will occur if a Washington broker disregards a child support order?
Which of the following scenarios is an example of corrective maintenance that a property manager may oversee?
Replacing a section of roof after a leak
In Washington, what does it mean to be a dual agent?
You represent the buyer and the seller in the same transaction.
Qualified Washington commission candidates must have at least ______ years of brokerage experience or a certain amount of related experience.
Ginny's buyer client owns a nice boat and offers it in lieu of cash for the earnest money deposit. Which of the following statements is true?
With the seller's permission, the buyer may offer the boat instead of cash.
A branch manager in Washington must be licensed as a ______.
Your client Kevin listed his house in Bremerton, but isn't offering a cooperating agent's commission. Ji-eun represents the buyer, Marta, and Marta's parents, Jean and Tom, are paying Ji-eun's commission. On which of these factors is your agency relationship based?
Kevin signed a listing agreement with you.
Guidance for real estate licensees and companies that plan to share commissions with other licensees and firms can be found in ________.
Washington Administrative Code (WAC)
Jason is the designated broker for Stevenson Land and Homes in Yakima. The firm closes. What happens to Jason's license?
It becomes inactive until he affiliates with another firm.
Which of the following represents the Washington real estate industry's flow of governance from most authority to least authority?
Governor, DOL, commission
Clint has always had an interest in real estate. He's helped a few friends determine the asking price for their properties, and now he's considering going into business doing this kind of work. Does Clint need a real estate license?
Yes, he does.
Based on Washington statutory duties, which of the following is considered a material fact?
Based on a recent city council ruling, the buyer will be unable to use the property for the intended purpose.
Corliss, a Washington licensee, is the subject of an investigation and has requested a hearing. The complaint is complex and involves multiple individuals. The director wants to hear testimony from several witnesses in order to make a decision. What kind of hearing will be used?
Buyer Holly is meeting with broker Norah this afternoon to tour a property in Pasco. Norah showed her several properties, and Holly told Norah that she wanted representation in her house hunt. What kind of agency representation will Holly have with Norah upon signing an agency agreement?
How does a property owner give permission allowing a property manager to collect rents in Washington?
By written authorization in a management agreement
Jane, licensed broker for Mesa Homes, was the cooperating broker in a sales transaction with Silver Spur Realty as the listing firm and Tom as the listing broker. Which of the following best represents the flow of commission payment to Jane?
Seller to Silver Spur, Silver Spur to Mesa, Mesa to Jane
In Washington, which of the following statements regarding seller agency is true?
A seller's agent represents the seller, while the buyer's agent represents the buyer.
Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account to pay the developer. Which answer correctly identifies the violation(s) Jill has committed?
Commingling and conversion
In Washington, which agency is responsible for approving real estate schools and education?
Department of Licensing
What Washington document typically outlines the method and amount of payment that will be made to the listing brokerage firm?
The listing agreement
Which of the following expenses does the seller typically pay?
Which of the following statements about Washington trust accounts is true?
Trust funds are to be held in interest-bearing demand deposit accounts, such as checking or savings accounts.
The Washington listing contract that you have with your seller client Helena states that you'll receive 5% of the sales price after closing. Helena tells you during the property's first week on the market that you'll receive an additional 1% if you can get the transaction closed within 10 weeks. A buyer makes an offer a week later, and the transaction closes in the following month. You probably can't hold Helena to the additional 1% commission. Why?
Washington requires all compensation agreements to be in writing. The extra 1% was a verbal agreement.
After beginning the investigation process into a complaint against a managing broker, the director is concerned that additional harm may be caused by waiting for the hearing process to take place. Which of the following options does the director have?
Issue an emergency license suspension.
Renata is a Washington broker who has a buyer representation agreement with Olivia. The transaction is a FSBO (For Sale By Owner) transaction and the seller has stated they will not pay buyer agent commission. The buyer agency agreement states that in the event that the seller doesn't offer compensation, buyer agrees to compensate agent. However after the transaction closes, Olivia can't afford to pay it. In the end, Olivia's parents pay Renata's commission. Who is Renata's client?
Which of the following is a required element in a Washington property management agreement?
Property manager's compensation
Joan is one of the Washington Real Estate Commission's six board members. She qualified for appointment by having seven years' brokerage experience. She's one of at least _____ commission member(s) from east of the Cascades.
What must a Washington designated broker do with a trust account every month?
Perform a reconciliation of the bank account statements.
With which entity is Washington's DOL director partnered in order to create a real estate research center?
The Runstad Center for Real Estate Studies
What passing score must a candidate achieve on the Washington broker's exam?
Carol passed her Washington licensing exam 14 months ago and hasn't applied for her license. What happens now, if she still wants to be a broker?
She'll need to take her exam again and then apply for her license.
Washington requires property management firms to execute written ______ with owners for whom they provide services.
RCW statutes specifically address a licensee's responsibilities for providing referrals to what type of third party?
Home inspection companies
Which entity must approve the name of a Washington real estate firm?
Department of Licensing
In Washington, which of the following duties does a licensee owe to all parties to a transaction?
Exercise reasonable care and skill
How often are audits typically conducted on Washington brokerage transactional and accounting records?
Every three years
In Washington, a designated broker ______.
Holds a managing broker's license with a special DOL endorsement
Who is most likely to sue a property manager for mishandling of funds, breach of contract, fraud, or theft?
Washington leases may be terminated by expiration, eviction, or ______.
After a Washington lease agreement expires and a tenant vacates the property, leaving it in good condition, how long does the landlord have to return the security deposit?
What's the maximum fine the director can impose on a Washington licensee for a single violation?
If it's found that a managing broker didn't adequately supervise a licensee who violated Washington real estate law, who may be held legally liable?
The broker and managing broker
When referring to real estate licensing law in Washington, the term board means ______.
The Real Estate Commission
Marla Ricardo has been offered her dream job in another state. She asks her current landlord to let her out of her lease early. The landlord agrees to do so, with no strings attached. Marla and her landlord have decided to terminate the contract through ______.
When disbursing security deposit funds, a Washington property manager must receive written permission from the ______.
In Washington, which of the following statements about the duty to provide timely accounting for all funds and property received is true?
The duty of accountability may continue even after the transaction closes.
If a Washington real estate firm is involved in an audit or investigation, brokers in the firm are legally required to ________ during the investigation.
Reggie is a real estate licensee and a licensed cosmetologist in Washington. The DOL revokes Reggie's cosmetology license. Which of these statements about Reggie's real estate license is true?
The DOL may revoke Reggie's real estate license.
A client's earnest money deposit will be more than $10,000. Which one of the following statements about this deposit is true?
The buyer has the option of placing the funds in a separate interest-bearing account.
In Washington, licensees renewing for the first time will complete 30 hours in each of which two areas of coursework besides the required CE hours and core course?
Advanced practice and real estate law
Trinity's firm is thinking of storing some of its records electronically in order to conserve space. Which of the following statements is true?
Records stored electronically must be indexed and available for immediate online viewing or printing.
Which of the following would be considered unprofessional real estate licensee conduct in Washington?
Leaving the real estate firm's name off any advertisements
Daniel holds an active broker's license in good standing in another state. What license is he eligible to test for in Washington?
Dan and Alice are selling their home in Redmond and just signed a listing agreement with their new agent, Jan. What type of agency exists between Jan and her clients?
A routine audit of a real estate company by the Washington State Department of Licensing will take place where?
At the main license location
In addition to passing a licensing exam and providing background qualifications and a credit report, Washington escrow agents must provide proof that they hold what type of insurance policy?
Errors and omissions
In Washington, which of the following closing costs are typically split equally between the buyer and the seller?
Which of the following types of compensation is prohibited in Washington?
Referral fees from settlement service providers to licensees
What happens to a Washington firm's license if the firm changes locations?
The DOL must issue a new license with the new address.
Which of the following individuals would need a real estate license?
Someone performing real estate services for others for a fee
The designated broker at Tacoma Realty decides that maintaining and managing a trust account is too much work. What are the broker's options?
The brokerage firm can elect to have a third party, such as the closing company, hold the funds for each individual transaction.
Which of the following can perform services for more than one firm at a time in Washington?
The ________ Division oversees all licensed professions in Washington.
Business and Professions
Rebecca receives an earnest money deposit in the amount of $12,000. Which of the following statements best describes the deposit of this trust money?
Rebecca may deposit it in the firm's regular trust account.
Every Washington real estate firm must have at least ______.
One designated broker
Carmine met with a seller and left the meeting with a signed agency agreement. Before Carmine submitted it to her managing broker, the client called and asked her to cancel the agreement, so Carmine tore it up. Did Carmine act outside the scope of her authority?
Yes. Carmine was acting as a sub-agent of her managing broker, and the agreement was between the firm and the seller.
Martha, a Washington DOL staff member, worked diligently to gather evidence during the investigation phase of a disciplinary action. Can the director appoint her as the presiding officer for the hearing?
No, because she participated in the investigation.
Geraldine's Washington license was suspended because she was late on her federal student loan payments. Which of the following steps must Geraldine take to reactivate her license?
Make up any late payments.
Kennedy, a Washington broker, tends to be rather informal about her real estate business. Her daughter's teacher, Matthew, tells Kennedy that he'd like her help selling his house. Kennedy tells Matthew she'll perform all the tasks she'd perform for any listing, though she has no written agency agreement with Matthew. Do Matthew and Kennedy have a legal agreement?
Yes. Express agreements may be verbal or written.
In Washington, real estate companies must keep both accounting and transaction records for a minimum of ______ years.
Beverly doesn't represent either party to this Yakima real estate transaction. Her role is limited to handling paperwork. What role is Beverly taking in this transaction?
A transaction coordinator
The Washington managing broker's exam national questions are simulation-based. What are the components of each problem?
A scenario, an information-gathering section, and a decision-making section
Business is brisk, and Justin's firm is running out of room to store records. Which of these options isn't allowed by the DOL?
Store records in the firm's out-of-state storage facility.
What regulatory authority does the Washington Real Estate Commission have?
No regulatory authority; the commission provides advice and support to the DOL director.
Shannon just helped Linda sell her property in northern Washington. When agency between Shannon and Linda terminates, can Shannon disclose confidential information that Shannon learned while Linda was a client?
No, because an agent's duty of confidentiality never ends.
In addition to contracts, purchase agreements, disclosures, and other records related to real estate transactions, what records are Washington real estate firms required to keep for three years?
Trust account records
What can listing agents prepare for their clients to give them unofficial estimates of all closing costs?
Seller net sheet
Which of the following is true regarding the definition of agency in Washington?
Agency describes the relationship between the real estate professional and the person or persons being represented
Which of the following actions would be considered unprofessional conduct in Washington?
Letting your clients believe you're a distressed property expert when you aren't.
Even without delegated authority from a designated broker, what is a Washington branch manager authorized to do relative to employed licensees?
Jean is a branch manager in Washington. For which of the following tasks must Jean receive specific permission from her designated broker to perform?
Completing monthly trust account reconciliations
Licensees ______ clients and ______ customers.
Before closing, the ______ should get an appraisal of the property if the transaction's being financed.
When are real estate brokers allowed to work for the Washington State Department of Licensing?
Once their licenses are inactivated
What must a Washington broker collect from a third-party holder of an earnest money deposit?
How do brokers in Washington help fund the Washington Center for Real Estate Research?
Portion of license fee
Under Washington law, which of the following situations is an example of a buyer agency relationship between Rob and Stuart?
Though they have no written agreement, Rob agrees to help Stuart negotiate with a seller.
Who should review the settlement statement before closing?
The buyer and the seller
If a Washington real estate company moves, who's responsible for informing the Washington State Department of Licensing about the new company address?
Juanita holds an active broker's license in a state that has a written recognition agreement with Washington. She's worked as a managing broker for several years. Her license is in good standing. She moves to Washington. Which of the following is correct?
She's eligible to take the state exam.
Who's legally responsible for informing the Washington State Department of Licensing if a real estate firm moves?
How long before expiration can a firm submit a license renewal application in Washington?
Jermaine has received a Closing Disclosure from his lender. What's the purpose of this form?
To detail all costs Jermaine will owe at closing
Nathan assisted with the purchase of a commercial building that will be used as a community center. He doesn't hold a real estate license, yet his actions didn't violate any license laws. What must be true about Nathan's situation?
Nathan is a public official whose salaried duties include real estate transactions.
What must a Washington real estate company establish in order to keep track of trust accounts' accrued interest?
A ledger titled "Housing Trust Account Interest"
In addition to the firm's physical location, which of the following addresses must be identified on the Washington firm's license application?
Bank holding the firm's trust account
George is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document?
To detail the estimated closing costs for George's loan
Brokers must deliver transactional documents and contracts to their managing or designated broker within how many business days?
THIS SET IS OFTEN IN FOLDERS WITH...
WA State exam
Washington State Broker's Exam Trivia
Washington State portion (real estate exam)
Real Estate CE Shop Topics
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