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Washington Real Estate Brokerage Relationships (Agency) — Printable Practice Pack
Washington state portion · RCW 18.85/18.86, the Law of Real Estate Agency pamphlet and WAC 308-124 trust rules · 20 questions · Answer key on the last page · agentexamcoach.com
1.In Washington state, who is responsible for providing the pamphlet 'The Law of Real Estate Agency' to all parties in a real estate transaction?
(A)The designated broker
(B)The managing broker
(C)The real estate firm
(D)The broker representing the buyer or seller
2.In Washington state, can a broker act as a dual agent without the written consent of both parties?
(A)Yes, if the parties are aware of the dual agency
(B)Yes, if the broker discloses the dual agency in the purchase and sale agreement
(C)No, dual agency is prohibited in Washington state
(D)No, written consent from both parties is always required
3.Which of the following is a requirement for a dual agency relationship in Washington state?
(A)The written consent of only one party
(B)The disclosure of the dual agency relationship only in the purchase and sale agreement
(C)The approval of the firm's designated broker
(D)The written consent of both parties
4.What is the additional duty owed by a broker to their principal?
(A)To act with honesty, fairness, and good faith
(B)To recommend the highest offer
(C)To disclose only the defects of the property
(D)To act as an advocate for the principal
5.A broker is working with a buyer and a seller in a transaction, but has not obtained written consent from both parties to act as a dual agent. What should the broker do?
(A)Continue with the transaction and disclose the dual agency in the Purchase and Sale Agreement
(B)Represent the interests of the seller only
(C)Represent the interests of the buyer only
(D)Obtain written consent from both parties to act as a dual agent
6.In Washington state, what type of agency relationship requires the written consent of both parties?
(A)Seller agency
(B)Buyer agency
(C)Designated agency
(D)Dual agency
7.What is the role of the designated broker in a dual agency relationship where two licensees affiliated with the same firm represent opposite sides?
(A)The designated broker is the principal broker for one of the parties
(B)The designated broker must withdraw from the transaction
(C)The designated broker has no role in the transaction
(D)The designated broker is the dual agent by default
8.What type of agency relationship requires the written consent of both parties in Washington?
(A)Seller agency
(B)Buyer agency
(C)No agency
(D)Dual agency
9.Which of the following is a statutory duty owed to all parties in a real estate transaction in Washington state?
(A)To advise on the price of the property
(B)To prepare the purchase and sale agreement
(C)To represent the interests of only one party
(D)To disclose all known facts about the property
10.What is the result when a broker represents both the buyer and the seller in the same transaction without written consent?
(A)The transaction is automatically terminated
(B)The transaction is valid, but the broker's commission may be forfeited
(C)The broker's firm is liable for any damages
(D)The broker is subject to disciplinary action
11.What is the additional duty of a broker to a principal in a transaction?
(A)To act with honesty, good faith, and fair dealing
(B)To disclose all known facts about the property
(C)To prepare the purchase and sale agreement
(D)To act as an advocate for the principal and maintain confidentiality
12.Can a broker represent both the buyer and seller in the same transaction without their consent?
(A)Yes, with the consent of one party
(B)Yes, without the consent of either party
(C)No, it is never allowed
(D)No, unless the parties agree in writing
13.What is the consequence of a real estate broker's failure to disclose dual agency in a transaction in Washington state?
(A)The transaction is automatically voided
(B)The parties can sue the broker for negligence
(C)The broker is liable for any damages caused to the parties
(D)The broker is subject to disciplinary action
14.What is the role of the designated broker in a dual agency relationship when two affiliated licensees represent opposite sides?
(A)The designated broker is the buyer's agent
(B)The designated broker is the seller's agent
(C)The designated broker has no role
(D)The designated broker is the default dual agent
15.A broker is working with a buyer to find a home. What type of agency relationship is this?
(A)Seller Agency
(B)No Agency
(C)Dual Agency
(D)Buyer Agency
16.When a Washington real estate brokerage represents both the seller and the buyer in the same transaction, what is required for this dual agency relationship to be lawful?
(A)The seller and buyer must negotiate the price without the broker's assistance
(B)The broker must provide the pamphlet 'The Law of Real Estate Agency' but need not obtain consent
(C)The broker must only disclose the dual agency in the purchase and sale agreement
(D)The written consent of both parties must be obtained
17.How is agency disclosed in a Washington real estate transaction?
(A)Only in the purchase and sale agreement
(B)Only in the listing agreement
(C)Not at all
(D)In the purchase and sale agreement and through the provision of The Law of Real Estate Agency pamphlet
18.What is the result if a broker fails to provide the pamphlet 'The Law of Real Estate Agency' to all parties in a real estate transaction?
(A)The transaction is automatically terminated
(B)The broker's license is automatically suspended
(C)The parties are not bound by the terms of the purchase and sale agreement
(D)The broker is subject to disciplinary action
19.What additional duties are owed to a principal in a Washington state real estate transaction?
(A)Fiduciary duties, including loyalty and confidentiality
(B)Statutory duties only
(C)Common-law duties only
(D)No additional duties are owed
20.What is the consequence of a real estate broker's failure to disclose dual agency in a transaction?
(A)The transaction is automatically voided
(B)The client can sue for damages
(C)The broker's license is automatically revoked
(D)The broker is subject to disciplinary action
Answer key & explanations
1. D — In Washington state, the broker representing the buyer or seller is responsible for providing the pamphlet 'The Law of Real Estate Agency' to all parties in a real estate transaction.
2. D — In Washington state, a broker cannot act as a dual agent without the written consent of both parties, as dual agency requires the written consent of both parties to exist.
3. D — In Washington state, a dual agency relationship requires the written consent of both parties.
4. D — The additional duty owed by a broker to their principal is to act as an advocate for the principal, which includes promoting the principal's interests and negotiating on their behalf.
5. D — The broker should obtain written consent from both parties to act as a dual agent in order to comply with Washington state law.
6. D — Dual agency requires the written consent of both parties, as it involves a conflict of interest where the broker represents both the buyer and the seller.
7. D — In a dual agency relationship where two licensees affiliated with the same firm represent opposite sides, the firm's designated broker is the dual agent by default.
8. D — Dual agency requires the written consent of both parties in Washington.
9. D — In Washington state, one of the statutory duties owed to all parties is to disclose all known facts about the property.
10. D — In Washington state, representing both the buyer and the seller in the same transaction without written consent can result in the broker being subject to disciplinary action.
11. D — In Washington state, a broker has an additional duty to a principal to act as an advocate for the principal and maintain confidentiality.
12. D — A broker cannot represent both the buyer and seller in the same transaction without their written consent, as this would be a dual agency relationship.
13. D — In Washington state, a real estate broker's failure to disclose dual agency in a transaction can result in disciplinary action.
14. D — The designated broker is the default dual agent when two affiliated licensees represent opposite sides in a transaction.
15. D — This is a buyer agency relationship because the broker is working with the buyer to find a home.
16. D — Dual agency is legal in Washington with the written consent of both parties, which must be obtained by the broker to make the dual agency relationship lawful.
17. D — Agency is disclosed in Washington through the provision of The Law of Real Estate Agency pamphlet and in the purchase and sale agreement, to ensure that all parties understand the nature of the agency relationship.
18. D — Failure to provide the pamphlet 'The Law of Real Estate Agency' to all parties in a real estate transaction can result in disciplinary action against the broker.
19. A — In Washington state, a principal is owed additional duties, including fiduciary duties such as loyalty and confidentiality, beyond the statutory duties owed to all parties.
20. D — A real estate broker's failure to disclose dual agency in a transaction can result in the broker being subject to disciplinary action.
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