Washington · state portion

Free Washington Real Estate Brokerage Relationships (Agency) practice questions

10 original questions with full explanations. 5 of the 30 scored state-portion questions (about 17%) come from this area.

1. 1

   How is an agency relationship terminated in Washington state?

   • A. By the expiration of the listing agreement
   • B. By the completion of the transaction
   • C. By the mutual agreement of the parties
   • D. All of the above
   Show answer & explanation

   Answer: D

   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.

2. 2

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

   • A. To act as an advocate for the buyer
   • B. To act as an advocate for the seller
   • C. To disclose all known facts about the property
   • D. To act with honesty, fairness, and integrity
   Show answer & explanation

   Answer: D

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

3. 3

   When can an agency relationship be terminated in Washington state?

   • A. Only by the client
   • B. Only by the broker
   • C. Automatically, when the transaction is closed
   • D. By either the client or the broker, with written notice
   Show answer & explanation

   Answer: D

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

4. 4

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

   • A. The designated broker represents one of the parties
   • B. The designated broker only discloses the agency relationship
   • C. The designated broker is not involved in the transaction
   • D. The designated broker is the default dual agent
   Show answer & explanation

   Answer: D

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

5. 5

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

   • A. The transaction is cancelled
   • B. The broker is disqualified
   • C. The broker must withdraw from the transaction
   • D. The dual agency is allowed to proceed
   Show answer & explanation

   Answer: D

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

6. 6

   Under Washington's statutory agency law, what is the primary purpose of providing the pamphlet 'The Law of Real Estate Agency' to clients?

   • A. To establish a dual agency relationship
   • B. To disclose the terms of the purchase and sale agreement
   • C. To obtain written consent for a buyer agency relationship
   • D. To inform clients about the law of real estate agency and the duties of licensees
   Show answer & explanation

   Answer: D

   The pamphlet 'The Law of Real Estate Agency' is provided to inform clients about the law of real estate agency and the duties of licensees.

7. 7

   Which of the following types of agency relationships requires the written consent of both parties?

   • A. Seller Agency
   • B. Buyer Agency
   • C. Dual Agency
   • D. None of the above
   Show answer & explanation

   Answer: C

   Dual agency requires the written consent of both parties, as it involves representing both the buyer and seller in the same transaction.

8. 8

   What duties are owed to all parties in a real estate transaction under RCW 18.86?

   • A. Fidelity, honesty, and disclosure
   • B. Loyalty, obedience, and confidentiality
   • C. Reasonable care, disclosure, and accounting
   • D. All of the above
   Show answer & explanation

   Answer: C

   Under RCW 18.86, the duties owed to all parties in a real estate transaction include reasonable care, disclosure, and accounting, while additional duties such as loyalty and obedience are owed to the principal.

9. 9

   What is the result when a Washington state real estate broker represents both the buyer and seller in a transaction without written consent?

   • A. The broker is automatically the dual agent
   • B. The broker's commission is reduced
   • C. The transaction is invalid
   • D. The broker is in violation of statutory agency law
   Show answer & explanation

   Answer: D

   In Washington state, a real estate broker must obtain written consent from both parties to act as a dual agent; without such consent, the broker is in violation of statutory agency law.

10. 10

    In Washington, what additional duties are owed to a principal in a real estate transaction?

    • A. Duties of loyalty, obedience, and confidentiality
    • B. Duties of honesty, fair dealing, and timely disclosure
    • C. Duties of accounting, cooperation, and reasonable care
    • D. Duties of disclosure, inspection, and warranty
    Show answer & explanation

    Answer: A

    In Washington, the additional duties owed to a principal in a real estate transaction include the fiduciary duties of loyalty, obedience, and confidentiality.