Free Washington real estate practice exam

Answer key and explanations

Every answer, with the reasoning. Work through the ones you missed — that list is your study plan.

1. Question 1 — answer D

   A property is described as being located on a specific lot and block of a subdivision. What type of legal description is this?

   The description refers to a specific lot and block, which is a lot and block description.

2. Question 2 — answer D

   A built-in oven in a residential property is considered what type of property?

   A built-in oven is attached to the property and is therefore considered a fixture, which is a type of real property.

3. Question 3 — answer D

   What type of lien is created when a property owner fails to pay property taxes?

   An involuntary lien, such as a tax lien, is created when a property owner fails to pay property taxes, and the government places a lien on the property to secure payment.

4. Question 4 — answer D

   A refrigerator that is not built-in is considered what type of property?

   A free-standing appliance like a refrigerator is personal property because it is not attached to the real estate.

5. Question 5 — answer D

   A farmer plants crops on his land. What type of property do the crops represent?

   Emblements are crops that are planted and grown on real property, and they are considered personal property until they are harvested.

6. Question 6 — answer D

   A property is described using metes and bounds. What type of description is this?

   A metes and bounds description is a type of legal description that uses physical features and distances to define the boundaries of a property.

7. Question 7 — answer D

   What is the effect of a lien on a property's title?

   A lien provides a creditor with a claim against the property, which can affect the property's marketability and value.

8. Question 8 — answer A

   A property owner grants a neighbor an easement to use their property for access to a shared driveway. What type of easement is this?

   An appurtenant easement is an easement that benefits a neighboring property, such as an easement for access to a shared driveway.

9. Question 9 — answer D

   A property owner grants an easement to their neighbor to use a portion of their property. What type of interest is created?

   An easement appurtenant is created when a property owner grants an easement to their neighbor to use a portion of their property, benefiting the neighboring property.

10. Question 10 — answer D

    Which type of estate is characterized by a bundle of rights that includes the right to use, sell, and dispose of the property?

    A freehold estate is a type of estate that includes a bundle of rights, such as the right to use, sell, and dispose of the property, and is typically associated with ownership of real property.

11. Question 11 — answer D

    A homeowner's association has CC&Rs that prohibit parking on the front lawn. What type of control is this?

    The CC&Rs are a type of private land-use control because they are imposed by the homeowner's association rather than a government entity.

12. Question 12 — answer D

    What is the primary purpose of CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act)?

    CERCLA is a federal law that establishes liability for environmental contamination, allowing the government to hold responsible parties accountable for cleanup costs.

13. Question 13 — answer A

    What is the primary purpose of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)?

    CERCLA is a federal law that provides funding for environmental cleanup and holds parties liable for environmental contamination.

14. Question 14 — answer D

    A homeowner's association (HOA) has rules that restrict the colors that can be used to paint houses in the neighborhood. What type of control is this?

    The HOA's rules are an example of covenants, conditions, and restrictions (CC&Rs), which are private controls that govern the use of property in a development.

15. Question 15 — answer D

    A city uses its police power to regulate the height of buildings in a particular area. What is the result of this action?

    The city's use of police power allows it to regulate the property without providing compensation to the owners.

16. Question 16 — answer D

    Functional depreciation refers to

    Functional depreciation refers to the loss of value due to a property's design, layout, or features becoming outdated or less desirable.

17. Question 17 — answer D

    A Broker Price Opinion (BPO) is typically prepared by which of the following?

    A BPO is an estimate of a property's value prepared by a real estate broker or agent, often for use in lending or marketing decisions.

18. Question 18 — answer D

    The principle of progression in real estate appraisal refers to:

    The principle of progression states that a lesser property's value is enhanced by its proximity to superior properties.

19. Question 19 — answer D

    Which approach to value considers the potential gross income of a property?

    The Income Approach estimates the value of a property based on its potential to generate income, such as rental income from an apartment building.

20. Question 20 — answer D

    The income approach to value is most commonly used for

    The income approach is most commonly used for commercial properties, such as office buildings, retail centers, and apartment complexes, where the primary source of value is the potential for rental income.

21. Question 21 — answer D

    Which of the following is a key aspect of appraiser independence?

    Appraiser independence requires that the appraiser be unbiased and not influenced by external factors, such as the client's desired outcome or financial interests.

22. Question 22 — answer D

    What type of depreciation occurs when a property's design or layout is no longer functional?

    Functional depreciation occurs when a property's design or layout is no longer functional, reducing its value.

23. Question 23 — answer D

    A commercial property has a net operating income of $36,000 and the market cap rate is 6%. Using the income approach, what is its estimated value?

    Value = NOI ÷ cap rate = $36,000 ÷ 6% = $600,000.

24. Question 24 — answer D

    A loan that exceeds the conforming loan limit may be considered a

    A jumbo loan is a loan that exceeds the conforming loan limit, which is set by Fannie Mae and Freddie Mac.

25. Question 25 — answer A

    A borrower is considering a loan with a loan-to-value (LTV) ratio of 80%. What does this mean in terms of the borrower's down payment?

    An LTV ratio of 80% means that the borrower is financing 80% of the purchase price and must make a down payment of 20% of the purchase price.

26. Question 26 — answer D

    What is the primary benefit of using an escrow account to pay property taxes and insurance?

    The primary benefit of using an escrow account is to ensure timely payment of property taxes and insurance, which helps to avoid penalties and fines.

27. Question 27 — answer D

    A property is valued at $210,000 and the buyer makes a 5% down payment, financing the rest. What is the loan-to-value (LTV) ratio?

    Loan = $199,500. LTV = loan ÷ value = $199,500 ÷ $210,000 = 95% (equivalently 100% − 5% down).

28. Question 28 — answer D

    A borrower is applying for a mortgage loan and is considering paying points to reduce the interest rate. What is the primary benefit of paying points?

    Paying points can reduce the interest rate and monthly payment amount, which can result in long-term savings for the borrower.

29. Question 29 — answer D

    Which mortgage clause lets the lender demand full repayment if the property is sold?

    The alienation or due-on-sale clause triggers on transfer of the property. Acceleration triggers on default; defeasance cancels the lien at payoff.

30. Question 30 — answer A

    A lender is evaluating a borrower's credit application and determines that the borrower has been denied credit in the past. Which of the following is a requirement of the Equal Credit Opportunity Act?

    The Equal Credit Opportunity Act requires lenders to provide borrowers with a written explanation of the reasons for denying a credit application, which includes the specific factors that contributed to the denial.

31. Question 31 — answer B

    A buyer is purchasing a home with a $200,000 price and a 20% down payment. What is the loan-to-value ratio of the mortgage?

    The loan amount is $160,000, which is 80% of the $200,000 price. Loan-to-value ratio is the loan amount divided by the property value.

32. Question 32 — answer D

    A borrower is defaulting on their mortgage loan payments. Which of the following is a possible consequence of defaulting on a mortgage loan?

    If a borrower defaults on their mortgage loan payments, the lender may foreclose on the property.

33. Question 33 — answer D

    A borrower is considering a mortgage loan with an adjustable interest rate. Which of the following is a potential risk associated with this type of loan?

    An adjustable-rate mortgage (ARM) has an interest rate that may change over time, which means the borrower's monthly payment may increase if the interest rate rises.

34. Question 34 — answer D

    Which of the following is a fiduciary duty owed by an agent to their principal?

    The fiduciary duties owed by an agent to their principal include obedience, loyalty, disclosure, accounting, and confidentiality, often remembered by the acronym OLD CAR.

35. Question 35 — answer D

    A seller lists their property with a broker, who agrees to represent the seller's interests. What is the name of this type of representation?

    When a broker represents the seller's interests, it is called seller representation.

36. Question 36 — answer A

    A real estate agent represents both the buyer and seller in a transaction. What is this type of representation called?

    This type of representation is called dual agency, where the agent represents both the buyer and seller in the same transaction.

37. Question 37 — answer D

    A buyer's agent is working with a buyer to purchase a property. What is the agent's fiduciary duty of obedience?

    The agent's fiduciary duty of obedience requires them to follow the instructions of the buyer, as long as they are lawful and reasonable.

38. Question 38 — answer D

    A seller enters into a listing agreement with a broker to sell their property. What type of agency is created in this scenario?

    A special agency is created when a seller grants a broker the authority to act on their behalf in a specific transaction, such as selling a property.

39. Question 39 — answer D

    A seller's agent is working with a buyer who is not their client. What must the agent disclose to the buyer?

    The agent must disclose that they represent the seller and not the buyer, to avoid any confusion or perceived conflict of interest.

40. Question 40 — answer D

    A real estate agent is working with a buyer who is interested in purchasing a property. What must the agent disclose to the buyer regarding agency representation?

    The agent must disclose their representation to the buyer, including whether they represent the buyer, seller, or both parties.

41. Question 41 — answer A

    A seller lists their property with a real estate broker, granting the broker the authority to market and sell the property. What type of agent is the broker in this scenario?

    The broker is a special agent, as they have been granted limited authority to perform specific tasks, such as marketing and selling the property.

42. Question 42 — answer D

    A real estate agent represents both the buyer and the seller in a transaction. What type of representation is this?

    Dual agency occurs when an agent represents both parties in a transaction, which can create potential conflicts of interest.

43. Question 43 — answer D

    What type of agency relationship occurs when an agent represents both the buyer and the seller in a transaction?

    Dual agency occurs when an agent represents both the buyer and the seller in a transaction, which can create potential conflicts of interest.

44. Question 44 — answer D

    What is the primary difference between an agent's duties to a principal versus a customer?

    An agent owes duties of loyalty, confidentiality, and obedience to their principal, but only duties of honesty, fairness, and disclosure of material facts to a customer.

45. Question 45 — answer D

    What is the duty of an agent to account for all money and property received on behalf of their client?

    The duty of accounting requires the agent to keep accurate records and account for all money and property received on behalf of their client.

46. Question 46 — answer D

    A real estate agent is working with a buyer to purchase a property. What is the agent's fiduciary duty of confidentiality?

    The agent's fiduciary duty of confidentiality requires them to keep all information about the buyer confidential, unless authorized to disclose, in order to maintain the buyer's trust and protect their interests.

47. Question 47 — answer D

    Which of the following environmental hazards is NOT typically disclosed by the seller?

    While mold can be a concern, it is not typically disclosed by the seller as it is often considered a maintenance issue rather than an environmental hazard.

48. Question 48 — answer A

    A property was built in 1960 and contains lead-based paint. What federal disclosure requirement applies to the sale of this property?

    The federal Lead-Based Paint Disclosure Rule requires sellers of pre-1978 properties to disclose the presence of lead-based paint to buyers.

49. Question 49 — answer D

    Which environmental hazard is commonly associated with older buildings and can pose health risks to occupants?

    All of the above options (radon, asbestos, and mold) are environmental hazards that can be associated with buildings and pose health risks to occupants.

50. Question 50 — answer A

    A buyer is purchasing a property that was previously used as a methamphetamine lab. What type of property is this considered?

    A property that was previously used as a methamphetamine lab is considered a stigmatized property.

51. Question 51 — answer D

    A seller of a pre-1978 home must provide the buyer with a specific disclosure regarding a potential environmental hazard. What is the primary purpose of this disclosure?

    The seller of a pre-1978 home must provide the buyer with a lead-based paint disclosure, as required by federal law, to inform the buyer of the potential presence of lead-based paint and the risks associated with it.

52. Question 52 — answer A

    A seller is required to disclose any known material defects in the property. What is an example of a material defect?

    A material defect is a condition that affects the property's value or usability, such as a cracked foundation.

53. Question 53 — answer D

    A seller of a pre-1978 residential property is required by federal law to provide a specific disclosure to the buyer. What is the primary purpose of this disclosure?

    The federal law requires sellers of pre-1978 residential properties to disclose the presence of lead-based paint to buyers.

54. Question 54 — answer B

    A buyer and seller enter into a contract, but the buyer fails to perform. What remedy is available to the seller?

    Specific performance is a remedy available to the seller, where the court orders the buyer to perform their obligations under the contract.

55. Question 55 — answer D

    A buyer and seller enter into a purchase and sale agreement, but later decide to make changes to the terms of the agreement. What is the proper way to make these changes?

    The proper way to make changes to a purchase and sale agreement is by executing an amendment to the original agreement, which must be in writing and signed by all parties to the agreement.

56. Question 56 — answer D

    A buyer makes an offer on a property, and the seller responds with a counter-offer. What is the effect on the original offer?

    When a seller responds to an offer with a counter-offer, the original offer is terminated and replaced by the counter-offer.

57. Question 57 — answer D

    A buyer signs a contract to purchase a property, but later discovers a material defect. What remedy is available to the buyer if the seller refuses to repair or credit the defect?

    The buyer may seek various remedies, including specific performance, rescission, or damages, depending on the circumstances and the terms of the contract.

58. Question 58 — answer D

    A buyer and seller enter into a purchase and sale agreement that includes an earnest money deposit. What happens to the earnest money if the buyer breaches the contract?

    If the buyer breaches the contract, the earnest money is typically forfeited to the seller as liquidated damages.

59. Question 59 — answer A

    A real estate contract is subject to a contingency for the buyer's financing. If the buyer is unable to secure financing, what is the result?

    If the buyer is unable to secure financing, the contract is terminated and the earnest money is typically refunded, as the contingency was not met.

60. Question 60 — answer D

    A buyer's contract to purchase a home is contingent upon the sale of their current residence. If the buyer's current residence does not sell, what happens to the contract?

    If the contingency is not met, the contract is terminated, and the buyer's earnest money is typically refunded.

61. Question 61 — answer D

    A buyer breaches a purchase and sale agreement, and the seller is entitled to liquidated damages. What is the purpose of liquidated damages?

    Liquidated damages are a predetermined amount of damages that are specified in the contract, which are intended to compensate the seller for actual damages in the event of a breach.

62. Question 62 — answer D

    A buyer signs a buyer representation agreement with a broker. What is the primary obligation of the broker under this agreement?

    Under a buyer representation agreement, the broker has a fiduciary duty to act in the best interests of the buyer, which includes duties of loyalty, confidentiality, and obedience.

63. Question 63 — answer A

    What is the effect of a breach of contract by the buyer on the earnest money deposit?

    If the buyer breaches the contract, the buyer may forfeit the earnest money deposit to the seller, depending on the contract terms.

64. Question 64 — answer A

    What happens to the earnest money deposit if a buyer breaches a purchase and sale agreement?

    The buyer typically forfeits the earnest money deposit to the seller as liquidated damages for breaching the contract

65. Question 65 — answer A

    A buyer and seller agree to amend a purchase and sale agreement. What is required for this amendment to be effective?

    The amendment must be in writing and signed by both parties to be effective, as oral agreements to amend a contract may not be enforceable.

66. Question 66 — answer A

    What is the primary difference between a contingency and an option in a real estate contract?

    A contingency is a condition that must be met in order for the contract to be binding, while an option is a choice to perform or not perform the contract.

67. Question 67 — answer D

    A buyer makes an offer to purchase a property, but the seller responds with a counter-offer that includes different terms. What is the effect of the seller's counter-offer on the original offer?

    The seller's counter-offer rejects the original offer and proposes new terms, which replaces the original offer.

68. Question 68 — answer D

    What is the primary purpose of the Statute of Frauds in real estate transactions?

    The Statute of Frauds requires certain contracts, including those for the sale of real estate, to be in writing to prevent fraudulent activities.

69. Question 69 — answer D

    A buyer and seller enter into a purchase and sale agreement that includes an earnest money deposit. What is the purpose of the earnest money deposit?

    The earnest money deposit demonstrates the buyer's good faith and commitment to the transaction, and can be forfeited if the buyer breaches the contract.

70. Question 70 — answer D

    A buyer puts down earnest money on a property, but the sale falls through due to a contingency. Who is entitled to the earnest money?

    The earnest money is typically returned to the buyer if the sale falls through due to a contingency, but the terms of the contract can specify who is entitled to the earnest money.

71. Question 71 — answer D

    A buyer makes an offer to purchase a property with a contingency for financing. The seller responds with a counteroffer that changes the price. What is the effect of the seller's counteroffer on the original offer?

    A counteroffer terminates the original offer, and the buyer must accept the new terms of the counteroffer for a contract to be formed.

72. Question 72 — answer D

    A buyer and seller agree to amend their purchase and sale agreement to extend the closing date. What is required to make the amendment effective?

    To be effective, an amendment to a purchase and sale agreement must be in writing and signed by both parties, which ensures that both parties agree to the changes.

73. Question 73 — answer D

    What type of estate is created when a landlord leases a property to a tenant for a specific period?

    A leasehold estate is created when a landlord grants a tenant the right to use a property for a specific period in exchange for rent.

74. Question 74 — answer D

    A landlord is responsible for maintaining a habitable living environment for their tenants. What is the primary obligation of the landlord in this regard?

    The landlord's primary obligation is to maintain the essential systems, such as plumbing and heating, to provide a habitable living environment.

75. Question 75 — answer D

    Which of the following is a primary responsibility of a property manager?

    A property manager's primary responsibilities include maintaining the property and collecting rent on behalf of the owner.

76. Question 76 — answer D

    What is the effect of a title search on a property?

    A title search examines the historical sequence of owners to reveal potential defects in title, such as encumbrances, liens, or breaks in the chain of title.

77. Question 77 — answer A

    Which of the following types of deeds contains a warranty that the grantor has the right to convey the property and that the property is free from encumbrances?

    A General Warranty Deed contains a warranty that the grantor has the right to convey the property and that the property is free from encumbrances, providing the grantee with the greatest protection.

78. Question 78 — answer D

    A seller signs a general warranty deed to transfer title to a buyer. Which of the following covenants is implied in this type of deed?

    A general warranty deed implies that the title is free from encumbrances and that the seller will defend it against all claims, providing the broadest protection for the buyer.

79. Question 79 — answer D

    A property owner dies without a will, and the property is to be transferred to the owner's heirs. Which of the following best describes the process by which the property will be transferred?

    When a property owner dies without a will, the property is transferred to the heirs through the process of descent, according to the laws of intestacy, which dictate how property is distributed among heirs.

80. Question 80 — answer A

    What is the term for the document that transfers title to a property from one party to another?

    A Deed is the document that transfers title to a property from one party to another, and it must be properly executed and recorded to be valid.

81. Question 81 — answer D

    What is the primary difference between a general warranty deed and a special warranty deed?

    A general warranty deed provides a broader warranty, covering all defects in the title, while a special warranty deed only covers defects that occurred during the grantor's ownership.

82. Question 82 — answer A

    Which federal law prohibits real estate agents from making false or misleading statements about the availability of a property based on a person's race, color, religion, sex, national origin, disability, or familial status?

    The Fair Housing Act prohibits discriminatory practices in housing, including making false or misleading statements about the availability of a property.

83. Question 83 — answer A

    A real estate broker is using email to advertise properties to potential clients. What federal law requires the broker to provide a way for recipients to opt-out of future emails?

    The CAN-SPAM Act requires commercial email senders to provide a way for recipients to opt-out of future emails.

84. Question 84 — answer D

    A real estate salesperson is working with a client who is interested in purchasing a property that is being sold 'as-is'. What should the salesperson do to ensure that the client is aware of the potential risks and consequences of purchasing the property?

    The salesperson should recommend that the client hire a professional inspector to evaluate the property and identify any potential issues. This will help to ensure that the client is aware of any potential risks or consequences of purchasing the property, and can make an informed decision about whether to proceed with the purchase.

85. Question 85 — answer D

    A sales agent is discussing neighborhoods with a client. Which of the following statements would be a violation of the Federal Fair Housing Act?

    The statement 'I don't think you'd be comfortable here, there are a lot of families with children' is steering, which is a violation of the Federal Fair Housing Act, as it is discriminating based on familial status.

86. Question 86 — answer D

    A real estate broker is marketing a property and creates an advertisement that excludes a particular protected class. Which of the following actions is the broker most likely violating?

    The Fair Housing Act prohibits discrimination in housing based on protected classes, including race, color, national origin, religion, sex, familial status, and disability.

87. Question 87 — answer D

    A real estate broker is handling a transaction where the buyer and seller are negotiating the terms of the sale. What is the broker's responsibility in terms of ensuring that the transaction is fair and honest?

    The broker's responsibility is to facilitate the negotiation and ensure that both parties are aware of all material facts and terms of the transaction. This means providing honest and accurate information, and ensuring that both parties understand the terms of the sale and any potential risks or consequences.

88. Question 88 — answer A

    A real estate agent is marketing a property in a neighborhood with a high concentration of Hispanic residents. The agent creates an advertisement that specifically highlights the proximity of the property to a local Spanish-language church. This advertising practice may be considered

    The Fair Housing Act prohibits discriminatory advertising practices, including those that target specific racial or ethnic groups. By highlighting the proximity to a Spanish-language church, the agent may be engaging in discriminatory advertising.

89. Question 89 — answer D

    A real estate agent is creating an advertisement for a property. What is the primary consideration when creating the advertisement?

    The agent should ensure that the advertisement complies with all applicable fair housing laws, to avoid any potential discrimination or steering issues.

90. Question 90 — answer A

    A real estate sales agent creates an advertisement for a property that includes a statement about the proximity of the property to a particular church. This action could be considered a violation of which federal law?

    The Fair Housing Act prohibits discriminatory advertising practices, including those that indicate a preference for or against a particular religion. By mentioning the proximity to a particular church, the advertisement could be seen as appealing to a specific religious group, potentially violating the Act.

91. Question 91 — answer D

    A real estate broker is found to have engaged in price-fixing with other brokers in the area. What law has the broker likely violated?

    The broker has likely violated the Sherman Antitrust Act, which prohibits price-fixing and other anti-competitive practices.

92. Question 92 — answer D

    A real estate agent is marketing a property in a predominantly minority neighborhood. Which of the following advertising practices is a violation of the Federal Fair Housing Act?

    The Federal Fair Housing Act prohibits discriminatory advertising practices, including indicating a preference for a specific racial or ethnic group.

93. Question 93 — answer A

    What is the term for the practice of directing clients to or away from certain neighborhoods based on their race, color, or other protected characteristics?

    Steering is the practice of directing clients to or away from certain neighborhoods based on their race, color, or other protected characteristics, which is prohibited under the Federal Fair Housing Act.

94. Question 94 — answer C

    A lender charges 1 discount point on a $200,000 loan. One point equals 1% of the loan amount. What is the cost of the points?

    1 point = 1% of $200,000 = $2,000.

95. Question 95 — answer A

    A lender charges 3 discount points on a $320,000 loan. One point equals 1% of the loan amount. What is the cost of the points?

    3 points = 3% of $320,000 = $9,600.

96. Question 96 — answer D

    A home sells for $480,000 with a 5% commission and no other closing costs. What does the seller net?

    Commission = $480,000 × 5% = $24,000. Net = $480,000 − $24,000 = $456,000.

97. Question 97 — answer D

    A home sells for $220,000 with a 6% commission and no other closing costs. What does the seller net?

    Commission = $220,000 × 6% = $13,200. Net = $220,000 − $13,200 = $206,800.

98. Question 98 — answer D

    A commercial property has a net operating income of $41,000 and the market cap rate is 6%. Using the income approach, what is its estimated value?

    Value = NOI ÷ cap rate = $41,000 ÷ 6% = $683,333.

99. Question 99 — answer A

    Annual property taxes are $3,000. Using a 365-day year, the seller is responsible for 227 days. What is the seller's prorated share?

    Daily tax = $3,000 ÷ 365 = $8.22. Seller's share = $8.22 × 227 = $1,865.75.

100. Question 100 — answer D

     A lender charges 3 discount points on a $330,000 loan. One point equals 1% of the loan amount. What is the cost of the points?

     3 points = 3% of $330,000 = $9,900.

101. Question 101 — answer D

     Who has the authority to conduct investigations and audits of real estate brokers in Washington state?

     The Director of the Department of Licensing has the authority to conduct investigations and audits of real estate brokers in Washington state.

102. Question 102 — answer D

     What is a possible consequence of a real estate licensee's failure to comply with a disciplinary sanction?

     A real estate licensee's failure to comply with a disciplinary sanction may result in additional education requirements, a fine, or revocation of their license.

103. Question 103 — answer A

     Who advises the Director of the Department of Licensing on real estate licensing matters?

     The Washington Real Estate Commission advises the Director of the Department of Licensing on real estate licensing matters.

104. Question 104 — answer A

     What is the result of a successful appeal of a disciplinary action against a real estate licensee in Washington state?

     A successful appeal of a disciplinary action against a real estate licensee in Washington state results in the disciplinary action being overturned.

105. Question 105 — answer D

     What type of licence is held by a business entity that engages in real estate brokerage activities in Washington state?

     A business entity that engages in real estate brokerage activities in Washington state must hold a real estate firm licence.

106. Question 106 — answer D

     How many clock hours of education are required for a Washington real estate broker licence?

     A total of 90 clock hours of education is required, consisting of a 60-hour Real Estate Fundamentals course and a 30-hour Real Estate Practices course.

107. Question 107 — answer D

     What are the minimum requirements to apply for a Washington state real estate broker license?

     To apply for a Washington state real estate broker license, one must be at least 18 years old, have a high school diploma or equivalent, and complete 90 clock hours of education.

108. Question 108 — answer D

     What is the continuing education requirement for a Washington state real estate broker's first license renewal?

     For a Washington state real estate broker's first license renewal, the continuing education requirement is a 30-hour Advanced Practices course plus a 3-hour Core course.

109. Question 109 — answer D

     What are the educational requirements to obtain a Washington real estate broker's licence?

     To obtain a Washington real estate broker's licence, an individual must complete 90 clock hours of education, consisting of a 60-hour Real Estate Fundamentals course and a 30-hour Real Estate Practices course.

110. Question 110 — answer A

     What is the minimum educational requirement to apply for a Washington real estate broker licence?

     The applicant must have a high school diploma or equivalent.

111. Question 111 — answer A

     Can a Washington state real estate broker transfer their license to a different firm?

     A Washington state real estate broker can transfer their license to a different firm at any time.

112. Question 112 — answer D

     What happens to a Washington real estate broker licence if the broker fails to complete the required continuing education?

     If a Washington real estate broker fails to complete the required continuing education, their licence will become inactive until the education requirements are met.

113. Question 113 — answer D

     How must a real estate broker in Washington handle client funds?

     A real estate broker in Washington must deposit client funds into the firm's pooled trust account, as per WAC 308-124.

114. Question 114 — answer D

     How must a Washington real estate brokerage firm maintain its trust account?

     A Washington real estate brokerage firm must maintain its trust account as a pooled account for all clients, maintained by the Designated Broker, under WAC 308-124.

115. Question 115 — answer D

     A real estate broker is required to retain records for

     In Washington, a real estate broker is required to retain records for at least 3 years.

116. Question 116 — answer D

     How must a real estate team in Washington state advertise its services?

     A real estate team in Washington state must advertise its services using the firm name and the team name, to identify the firm.

117. Question 117 — answer C

     What is prohibited for a real estate broker in Washington?

     Both commingling and conversion of client funds are prohibited in Washington.

118. Question 118 — answer D

     A Washington real estate firm has a team of licensees. What is the responsibility of the Designated Broker regarding the team?

     The Designated Broker is responsible for supervising all team members, ensuring they comply with state laws and rules.

119. Question 119 — answer D

     A Washington real estate broker wants to advertise their services online. What information must the advertisement include?

     The advertisement must include the firm's name and contact information, as required by Washington state advertising rules, to identify the firm.

120. Question 120 — answer A

     A Washington real estate firm must maintain a pooled trust account for client funds.

     In Washington, a real estate firm must maintain a pooled trust account for client funds, as required by WAC 308-124.

121. Question 121 — answer A

     What is the purpose of the Washington State Department of Licensing's audit of a real estate firm's trust account?

     The purpose of the audit is to verify the firm's compliance with state laws and rules, including the handling of client funds and trust account management.

122. Question 122 — answer D

     What is the purpose of the trust account required for property management activities in Washington state?

     The trust account required for property management activities in Washington state is used to hold security deposits and rent payments.

123. Question 123 — answer D

     What is a requirement for advertising by a Washington real estate firm?

     A Washington real estate firm's advertisement must identify the firm.

124. Question 124 — answer D

     What is a requirement for a Washington real estate firm's trust account?

     A Washington real estate firm's trust account must be a pooled account for all clients, to prevent commingling and conversion, and must be maintained by the Designated Broker.

125. Question 125 — answer D

     What is the purpose of the firm's trust account?

     The firm's trust account is used to hold client deposits and earnest money, as required by WAC 308-124.

126. Question 126 — answer D

     How is an agency relationship terminated in Washington state?

     An agency relationship can be terminated by the expiration of the listing agreement, the completion of the transaction, or the mutual agreement of the parties in Washington state.

127. Question 127 — answer D

     What is the statutory duty of a real estate broker to all parties in a transaction?

     The statutory duty of a real estate broker is to act with honesty, fairness, and integrity towards all parties in a transaction.

128. Question 128 — answer D

     When can an agency relationship be terminated in Washington state?

     An agency relationship can be terminated in Washington state by either the client or the broker, with written notice.

129. Question 129 — answer D

     What is the role of the designated broker in a dual agency relationship in Washington?

     In Washington, the designated broker is the default dual agent when two affiliated licensees represent opposite sides in a transaction.

130. Question 130 — answer D

     What happens when a buyer and seller provide written consent to dual agency?

     When a buyer and seller provide written consent to dual agency, the dual agency is allowed to proceed, as required by RCW 18.86.

Common questions