WA-STATE-RECIPROP Flashcards
In Washington, a designated broker holds a ______ license.
* Managing broker’s
The designated broker holds a managing broker’s license that has a special endorsement from the
DOL.
- Broker’s
- Designated broker’s
- Firm’s
* Managing broker’s
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
Washington brokers must disclose in writing whether they represent the buyer, the seller, both parties, or neither party.
- How many clients the broker currently represents
- How much the cooperating broker will earn
* Whether the broker represents one or more of the parties - Whether the property appraised at the list price
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.
Even after agency terminates, Shannon owes Linda the duty of confidentiality.
- No, because agency continues between Shannon and Linda after the sale.
* No, because an agent’s duty of confidentiality never ends. - Yes, because agency has been terminated.
- Yes, if the information is helpful to a future client.
In Washington, what’s the pre-licensing education requirement for brokers?
* 90 hours
Brokers must complete 90 hours of coursework, including 60 hours of Real Estate Fundamentals and 30 hours of Real Estate Practices.
- 120 hours
- 160 hours
- 60 hours
* 90 hours
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.
Lenders first issue the Loan Estimate; borrowers can compare the Closing Disclosure, issued before closing, to the estimate’s figures.
- Lenders issue the Loan Estimate to verify the figures detailed on the Closing Disclosure.
* Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the loan estimate. - Loan Estimate figures should match Closing Disclosure figures exactly.
- The Closing Disclosure outlines the lender’s responsibilities to the borrower.
What’s the maximum fine the director can impose on a Washington licensee for a single violation?
** $5,000**
The director can impose a fine of as much as $5,000 per violation.
$1,500
$2,500
$3,000
** $5,000**
In a Washington real estate company, what must be displayed or available for viewing in a public area?
* Broker licenses
Broker licenses must be displayed in a public area of the real estate firm.
- Branch office information
* Broker licenses - Current listings
- Recent area sales
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.
When the necessary hearing requires calling witnesses to testify and is more complex than a brief hearing and review of documentation will resolve, the director orders an administrative law hearing.
- To address criminal charges against a licensee or applicant.
- To enforce specific performance of a contract.
- To resolve earnest money complaints between buyers and sellers.
* To respond to a licensing law complaint when the hearing is more complex than a brief adjudicative hearing will resolve.
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?
- 10 days
- 14 days
- 30 days
* 30 days
The security deposit must be returned or accounted for within 30 days.
- 10 days
- 14 days
- 30 days
* 30 days
How often are audits typically conducted on Washington brokerage transactional and accounting records?
- Every seven years
* Every three years - Every two years
- Every year
Washington audits are conducted routinely, typically every three years.
- Every seven years
* Every three years - Every two years
- Every year
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.
Washington law requires that brokers deposit trust funds no later than the next banking day.
* Jon must deposit this check into the firm’s trust account no later than the next banking day.
* Jon must use the night depository to ensure that the check is deposited by the next day.
* Jon should deposit this in the firm’s operating account until it can be transferred to the trust account.
* Jon shouldn’t have accepted the check until the bank was open so he could deposit it immediately.
Which of the following would be considered unprofessional real estate licensee conduct in Washington?
* Leaving the real estate firm’s name off of any advertisements
All real estate ads must include the licensee’s affiliated real estate company. Neglecting to include the company name is considered unprofessional.
- Advertising on social media
- Advertising too frequently
* Leaving the real estate firm’s name off of any advertisements
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?
* Summary
Summary action takes place without a hearing and is implemented by the director when an investigation uncovers acts that the director feels should be stopped immediately.
- Permanent
* Summary - Temporary
- Urgency
How do brokers in Washington help fund the Washington Center for Real Estate Research?
- Fee billed quarterly to all licensees
- Fines paid for licensing law violations
* Portion of license fee - Voluntary contributions
Current Washington law requires that all applicants for a new license, a renewed license, or a reactivated license pay a $10 fee that helps to fund the center.
- Fee billed quarterly to all licensees
- Fines paid for licensing law violations
* Portion of license fee - Voluntary contributions
In Washington, which of the following closing costs are typically split equally between the buyer and the seller?
* Escrow fees
* Homeowner’s title insurance
* Recording fees
* Seller’s agent commission
In Washington, escrow fees are typically split equally between the buyer and the seller.
* Escrow fees
* Homeowner’s title insurance
* Recording fees
* Seller’s agent commission
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.
- 15, 15, 27, 4
* 30, 30, 27, 3 - 30, 30, 30, 4
- 90, 90, 30, 3
New licensees complete 30 hours of advanced practice, 30 hours of real estate law, 27 hours of CE, and the three-hour core course to renew. Subsequent license renewal requires 27 hours of CE and the core course.
- 15, 15, 27, 4
* 30, 30, 27, 3 - 30, 30, 30, 4
- 90, 90, 30, 3
Which of the following is a required element in a Washington property management agreement?
* Property manager’s compensation
The property manager’s compensation must be outlined in the management agreement.
- Complete list of renters
- Legal property description
* Property manager’s compensation - Property tax amount
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.
Only the legislature is authorized to pass laws or statutes. The director is charged with administering licensing law through the implementation of rules, regulations, and standards that support existing licensing laws.
- Enforce all laws and rules related to real estate licensing and education.
* Pass laws and statutes related to real estate licensing laws. - Refer complaints against licensees to a higher jurisdiction if warranted.
- Take disciplinary action for licensing law violations.
Which licensees may a Washington broker supervise?
* None
Brokers may not supervise any other licensees. “Only managing brokers and designated brokers are permitted to supervise other real estate licensees in Washington.
- A designated broker
- A managing broker
- Another broker
* None
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.
Washington law states that the required statutory duties are limited to certain tasks, which doesn’t preclude licensees from performing value-added tasks for clients or customers.
- Bonnie and her client Charles agreed in writing that Bonnie would prepare a detailed comparison sheet of all the offers made on Charles’s house. Washington statutory duties prohibit her from doing so.
* Caroline isn’t prohibited by the outlined statutory duties from performing value-added services for her clients. - Colvin, a managing broker, owes a certain set of statutory duties to the licensees who
- report to him, including the duty of confidentiality.
- Jeannie is required to provide statutory duties only to Robert, who’s her client, not to Tim, who’s a customer.
In which of these scenarios does 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.
In general, unlicensed consumers can’t perform real estate activities for others for a fee. Jessie is receiving compensation and would need to be licensed to accept this without breaking any laws.
* 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.
* Mickey is selling his own home and isn’t using the services of a listing agent.
* Peter is helping his sister, Kristen, find a new apartment and will not be compensated
in any way.
* Ronald is acting as executor of his uncle’s estate, which includes selling the property his uncle owned.
In Washington, which of the following duties does a licensee owe to all parties to a transaction?
* Exercise reasonable care and skill
Exercising reasonable care and skill is a duty licensees owe to all parties, not just to their clients. The standard of care expected of licensees is that of a competent real estate professional.
* Exercise reasonable care and skill
* Negotiate counter-offers
* Obey all lawful instructions
* Serve the best interests of the parties
Darnell is the buyer’s agent for a Washington transaction in which Maddie, who works for a different brokerage, was the listing agent on Henry’s property. From whom will Darnell receive his compensation?
* From his own broker
Brokers in Washington may receive compensation for real estate services only from their own brokers.
- From Henry
* From his own broker - From Maddie’s broker
- It depends
How much real estate practice experience must a Washington broker have to become a managing broker?
* Three years
Brokers must have either three years of real estate practice experience or experience in other DOLapproved areas.
- Five years
- Four years
* Three years - Two years
In Washington, an agency’s duties are determined by ______.
- Common law
* Statute - The buyer
- Your brokerage firm
Washington statutory duties are written by the legislature.
- Common law
* Statute - The buyer
- Your brokerage firm
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
Kurt will have to take the state portion of the exam. His license must be in good standing or current within the last six months. He doesn’t have to live in Washington, but he has to be affiliated with a Washington firm.
* The national portion of the exam
* The requirement that his license be in good standing
* The requirement to live in Washington for three months out of the year
* The state portion of the exam
Which of the following types of compensation is prohibited in Washington?
*** Referral fees from settlement service providers to licensees **
Licensees may not receive any kind of compensation, directly or indirectly, from a settlement service provider.
- Commission from a buyer
- Commission from a seller
- Commission from one’s designated broker
*** Referral fees from settlement service providers to licensees **
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.
In Washington, if a licensee has actual knowledge of a material fact that would have a substantial adverse impact on a property’s desirability or value, it must be disclosed to all parties as soon as known.
* Licensees are required to disclose those material facts of which they have actual knowledge.
* Licensees don’t have to disclose material facts if the property is being sold as-is.
* Licensees may disclose material facts either before or after closing.
* Licensees owe this duty to their clients only.
In Washington, whose responsibility is it to supervise associated licensees?
- Affiliated licensee
- Brokerage CEO
* Managing broker - Managing partner
The managing broker supervises associated licensees and can be held liable for their conduct.
- Affiliated licensee
- Brokerage CEO
* Managing broker - Managing partner
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 and pay all accumulated renewal fees, penalties, and a reinstatement fee.
If her license has been cancelled for more than two years, the licensee must begin the entire licensing process again. Before that time, she may complete the required coursework, pay accumulated renewal fees, penalties, and a reinstatement fee
- Complete 30 clock hours of coursework and pay all accumulated renewal fees, penalties, and a reinstatement fee.
- Complete 30 clock hours of coursework and take the Washington portion of the licensing exam.
* Complete 60 clock hours of continuing education coursework and and pay all accumulated renewal fees, penalties, and a reinstatement fee. - Start the licensing process over by completing the required coursework, taking the exam, and applying for the license.
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.
* Rebecca may deposit it in the firm’s regular trust account.
* Rebecca must deposit it in an individual trust account set up for just this client.
* Rebecca must deposit the funds in a non-interest bearing trust account.
* Rebecca must deposit the funds into a DOL special trust fund account.
When are real estate brokers allowed to work for the Washington State Department of Licensing?
* Once their licenses are inactivated
- After they disclose any potential conflicts of interest
- After they’ve been practicing five years
* Once their licenses are inactivated
- When they have written permission from their designated brokers
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
- To detail the amount George needs to bring to closing
* To detail the estimated closing costs for George’s loan - To disclose the interest rates available on this lender’s various loan programs
- To disclose the lender’s source of loan funds
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.
* It must be licensed to do business with the original firm.
* It must employ at least two licensed individuals.
* It must have been in business at least three years.
* It must share its financial records with the original firm.
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.
Charlie is Claude’s agent.
Sue is Claude’s customer.
This doesn’t change the agency relationships.
This is undisclosed dual agency.
Thomas, a Washington broker, received a notice of violation for having failed to provide records properly upon request. If he chooses to ignore the notice of violation, what may occur?
* The director may issue a default judgment and impose sanctions based on whatever evidence is available.
- He may be subject to arrest.
- His license may be automatically revoked.
- The case may be automatically moved to be heard in superior court.
* The director may issue a default judgment and impose sanctions based on whatever evidence is available.
In Washington, how many hours of coursework must an applicant complete before applying for a managing broker’s license?
* 90
In Washington, how many hours of coursework must an applicant complete before applying for a managing broker’s license?
- 120
- 30
- 60
* 90
The Washington legislature has passed new licensing legislation designed to change the amount and type of education required for licensing. The director has 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 the necessary rules to support the new laws.
- The commission has no responsibilities related to this new legislation.
- The commission must approve the new legislation before it can be signed into law.
* The commission will provide advice to the director regarding the necessary rules to support the new laws. - The commission will serve as the legislature’s ambassadors in gaining acceptance from those in the real estate industry.
In Washington, new licensees must complete a three-hour ______ course before their first renewal.
* Core
In Washington, new licensees must complete a three-hour ______ course before their first renewal.
- Advanced practice
- Continuing education
* Core - Real estate law
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.
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?
- A cooperating broker must include alternative methods of compensation in the buyer’s brokerage agreement.
* The cooperating brokerage firm may decline to show to the buyer any properties for which there is no compensation agreement with the listing broker. - The cooperating broker may require the buyer to pay a commission, even if it’s not indicated in the written agreement.
- The listing brokerage firm is required to split its commission with the cooperating brokerage firm.
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.
- Complete the replace process.
- Request approval from the Department of Licensing director.
- Use the reversion form and pay the correct fee.
* Use the same process as a broker.
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.
- She can apply to the DOL for an extension and then apply for her license.
* She’ll need to take her exam again and then apply for her license. - She must take a three-hour licensing review course and then apply for her license.
- She must take her coursework over and then apply for her license.
Based on Washington statutory duties, which of the following is a material fact?
* Based on a recent city council ruling, the buyer will be unable to use the property for the intended purpose.
Based on Washington statutory duties, which of the following is a material fact?
* Based on a recent city council ruling, the buyer will be unable to use the property for the intended purpose.
* Property conditions that are discovered through the broker’s required personal property inspection.
* Property values in the area are expected to rise sharply in the coming year.
* The buyer’s lender has confirmed that the loan will most likely be approved.
What passing score must a candidate achieve on the Washington broker’s exam?
- 70
What passing score must a candidate achieve on the Washington broker’s exam?
- 65
- 70
- 75
- 80
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.
**
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.
* No. She can’t be appointed because she’s not a judge.
* Yes, because she has expert knowledge of the facts of the case.
* Yes. The lead investigator is usually appointed as the presiding officer.
Margaret initially showed a property to Trina, who decided to wait to buy a house after all. But 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?
* Procuring cause
Margaret initially showed a property to Trina, who decided to wait to buy a house after all. But 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?
- Compensation cause
* Procuring cause - Reasonable cause
- Sale cause
Joan is one of the Washington 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 Cascade mountains.
* Two
Joan is one of the Washington 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 Cascade mountains.
- Four
- One
- Three
* Two
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.
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?
- Arrange for an immediate hearing.
- Have the broker arrested.
* Issue an emergency license suspension. - Wait for the regularly scheduled hearing to take place.
How do you create implied agency?
- Through the parties’ actions
How do you create implied agency?
Through agency disclosure
Through express written agreement
Through oral agreement
* Through the parties’ actions
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.
**
* 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.
* Banks offer trust accounts free of service and other charges.
* Brokers collect an additional fee when the contract is signed to offset bank service charges.
* Ordinary service charges may be deducted from the interest earned on or trust funds deposited into a pooled trust account.
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.
- A fee is required to reactivate an inactive license.
- Licensees whose licenses have been inactive for more than three years must complete 27 hours of coursework to reactivate.
- Licensees with inactive licenses aren’t required to complete any coursework until they’re ready to reactivate.
* Licensees with inactive licenses must continue to renew their licenses every two years.
Which of the following represents the Washington real estate industry’s flow of governance from most authority to least authority?
* Governor, DOL, commission
Which of the following represents the Washington real estate industry’s flow of governance from most authority to least authority?
- Commission, DOL, legislature
* Governor, DOL, commission - Legislature, commission, DOL
- Real Estate Division, DOL, legislature
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.
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 for a broker’s license.
- She’s eligible for a managing broker’s license.
- She’s eligible to take a 30-hour Washington course and then get her broker’s license.
* She’s eligible to take the state exam.
What must a Washington designated broker do with a trust account every month?
* Perform reconciliation of the bank account statements.
What must a Washington designated broker do with a trust account every month?
- Close it if there are no active transactions.
* Perform reconciliation of the bank account statements. - Send a copy of the bank statement to the Washington state treasurer.
- Use the interest to pay the account service fees.
The Washington Residential Landlord-Tenant Act establishes responsibilities for both landlords and tenants. How are the property manager’s duties addressed by this act?
**
* The property manager is required to understand and abide by the owner’s legal responsibilities to tenants.**
The Washington Residential Landlord-Tenant Act establishes responsibilities for both landlords and tenants. How are the property manager’s duties addressed by this act?
**
* The property manager is required to understand and abide by the owner’s legal responsibilities to tenants.**
* The property manager’s duties are outlined in a separate section of the Washington Residential Landlord-Tenant Act.
* The property manager’s duties to tenants are prescribed in the Washington Residential Property Management Act.
* The property manager works under the property management agreement with the landlord and isn’t responsible for duties designated for the landlord.
A(n) ______ budget helps property managers maximize profitability and avoid unforeseen major expenses and repairs.
* Operating
A(n) ______ budget helps property managers maximize profitability and avoid unforeseen major expenses and repairs.
- Cash reserve
- Expense
* Operating - Stabilized
Which of the following can perform services for more than one firm at a time in Washington?
* Designated broker
Which of the following can perform services for more than one firm at a time in Washington?
- Branch manager
- Broker
* Designated broker - Managing broker
Washington requires property management firms to execute written ______ with owners for whom they provide services.
* Management agreements
Washington requires property management firms to execute written ______ with owners for whom they provide services.
- Agency agreements
- Employment contracts
* Management agreements - Power of attorney
Some Washington real estate brokerage records may be kept offsite if they’re for transactions that closed how long ago?
* One year or more
Some Washington real estate brokerage records may be kept offsite if they’re for transactions that closed how long ago?
* One year or more
* Six months or more
* Three years or more
* Two years or more
The ______ Division oversees all licensed professions in Washington.
* Business and Professions
The ______ Division oversees all licensed professions in Washington.
* Business and Professions
* Legislative
* Licensing
* Real Estate
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?
* Administrative
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?
* Administrative
* Brief adjudicative
* Stipulated disposition
* Superior court
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
Which of the following scenarios is an example of corrective maintenance that a property manager may oversee?
- Hiring an HVAC contractor to inspect the air conditioner annually
- Oiling door hinges every six months
* Replacing a section of roof after a leak - Replacing furnace filters according to the manufacturer-suggested timeline
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.
- A dual agent is only obligated to perform the statutory duty of honesty with the two clients in the relationship.
- A dual agent owes more statutory duties to each client in a transaction than would a single agent.
- A dual agent owes the same statutory duties to the clients in a transaction as a single agent.
- * 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.
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.
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.
*
* Tanya’s degree isn’t in real estate, so her experience doesn’t qualify her to take the exam.
*
* Tanya’s experience as a closing officer isn’t related closely enough to real estate brokerage to qualify her.
*
* Tanya will be required to take only the state portion of the Washington licensing exam.
Which of the following positions is appointed by the Washington DOL director to serve as an non-voting member and preside over meetings?
* Commission chair
Which of the following positions is appointed by the Washington DOL director to serve as an non-voting member and preside over meetings?
* Commission chair
* Commission vice-chair
* Director of the real estate division
* Representative from the secretary of state’s office
What’s the term for a charge that either party has to pay at closing for a Washington real estate transaction?
* Debit
What’s the term for a charge that either party has to pay at closing for a Washington real estate transaction?
- Balance
- Credit
* Debit - Mortgage
Which of these is an example of conversion of funds in Washington?
* Monica used funds from the firm’s trust account to pay her firm’s rent.
- Marcus converted a CD to cash and deposited it in the firm’s
- operating account.
* Monica used funds from the firm’s trust account to pay her firm’s rent. - Soo Min transferred funds from her firm’s trust account to the closing company’s trust account in time for settlement.
- Tristan deposited a client’s earnest money check into the firm’s operating account.
Which of the following bodies is responsible for creating Washington real estate laws and statutes?
- The legislature
Which of the following bodies is responsible for creating Washington real estate laws and statutes?
*
* The Department of Licensing
* The legislature
* The Real Estate Commission
* The Real Estate Division
To what Washington court may parties to an administrative hearing appeal the ALJ’s decision?
* Superior court
To what Washington court may parties to an administrative hearing appeal the ALJ’s decision?
- Agency court
- Civil court
* Superior court - Supreme court
In Washington, which agency is responsible for approving real estate schools and education?
* Department of Licensing
In Washington, which agency is responsible for approving real estate schools and education?
- Attorney general’s office
* Department of Licensing - U.S. Department of Education
- Washington Department of Education
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**
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**
* Only if it is via signature of a promissory note
* Yes, by using a personal check from any licensees from the firm
* Yes, They can be paid directly out of the trust funds themselves
Which Washington office oversees administrative hearings?
* Office of Administrative Hearings
Which Washington office oversees administrative hearings?
- Attorney general’s office
- Department of Licensing
* Office of Administrative Hearings - Real estate division
Given the daily property tax rate, how can you calculate the prorated property tax amount to debit a seller and credit a buyer at closing?
* * Multiply the daily rate times the number of days the seller owned the property, not including the closing day.
- Multiply the daily rate times the number of days in the current month, including the closing day.
- Multiply the daily rate times the number of days left in the month, not including the closing day.
- Multiply the daily rate times the number of days the buyer will own the property during that tax year, not including the closing day.
- * Multiply the daily rate times the number of days the seller owned the property, not including the closing day.
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.
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 can hire a third party to manage its trust account operations.
- * The brokerage firm can elect to have a third party, such as the closing company, hold the funds for each individual transaction.
- The brokerage firm can’t work only with seller clients if it doesn’t establish a trust account.
- The brokerage must maintain a trust account.
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.
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.
* Pass the national portion of the Washington exam.
* Submit a detailed work history to the DOL.
* Take a 30-hour real estate law class and then take her exam.
How are Washington commission members selected?
* Appointed by the governor
How are Washington commission members selected?
- Appointed by the DOL director
* Appointed by the governor - Elected by the public
- Elected by the Washington Association of REALTORS®
If a Washington real estate firm has a branch office, who’s responsible for ensuring that the affiliated licensees maintain their licenses?
* Branch manager
If a Washington real estate firm has a branch office, who’s responsible for ensuring that the affiliated licensees maintain their licenses?
* Branch manager
* Broker
* Designated broker
* Managing broker
What’s true about broker responsibilities in Washington?
* They include but aren’t limited to those in the regulations.
What’s true about broker responsibilities in Washington?
- The only duties are those found in agency common law.
* They include but aren’t limited to those in the regulations. - They’re limited to those duties outlined in the administrative regulations.
- They’re prescribed only in statutory law.
What kind of research does WCRER perform?
* Affordable housing
What kind of research does WCRER perform?
* Affordable housing
*
* Individual licensing exam pass rates
*
* Licensing pass rates by provider
*
* Washington cost of living
Which of the following do a Washington broker, managing broker, designated broker, and real estate firm have in common?
* Each is considered a licensee.
Which of the following do a Washington broker, managing broker, designated broker, and real estate firm have in common?
- Each is considered a legal person.
* Each is considered a licensee. - Each is considered a natural person.
- Each may hold a broker’s license.
What is the maximum amount of time that can elapse between completing the required coursework and applying for a Washington managing broker’s license?
* Three years
What is the maximum amount of time that can elapse between completing the required coursework and applying for a Washington managing broker’s license?
- One year
- Six months
- * Three years
- Two years
Brokers must deliver transactional documents and contracts to their managing or designated brokers within how many business days?
* Two
Brokers must deliver transactional documents and contracts to their managing or designated brokers within how many business days?
- Five
- One
- Three
- * Two
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.
Kennedy and Matthew have an express verbal agreement. The agreement isn’t implied because Kennedy agreed to perform all the tasks she’d perform for any listing.
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?
- No. There’s no signed agreement.
- No. Verbal agreements are illegal.
* Yes. Express agreements may be verbal or written. - Yes. They have a verbal implied agreement.
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.
Rules for property management trust accounts are different than those for sales transactions. Trust accounts should be established as interest-bearing demand deposit accounts.
Which of the following statements about Washington trust accounts is true?
- The same trust account rules are applied to accounts for sales and property management transactions.
- Trust accounts may not be established at credit unions.
* Trust funds are to be held in interest-bearing demand deposit accounts, such as checking or savings accounts. - Trust funds are to be held in non-interest-bearing, long-term accounts, such as certificates of deposit.
*
Which of the following tasks does the Washington DOL director perform?
* Establish rules for fingerprinting and background checks.
The director establishes rules that require applicants to submit to fingerprinting and backgrounds checks; the DOL doesn’t perform or oversee the actual fingerprinting or background check process.
Which of the following tasks does the Washington DOL director perform?
* Establish rules for fingerprinting and background checks.
* Fingerprint license applicants.
* Implement standards for the steps in the fingerprinting process.
* Perform background checks.
Topic: General RulesSubtopic: Powers and duties of the Real Estate Commi
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
Denise must first separate from her existing firm; then her new firm can invite her to join and she can accept.
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?
- Accept invitation to join new firm
- Get designated broker’s approval to separate from existing firm
- New firm issues an invitation to join
* Separate from existing firm
The owner of an apartment house would most likely capitalize which of the following expenditures for income tax purposes?
* c. remodeling
Remodeling is the only expenditure listed that could be capitalized; to capitalize an expenditure means to add the cost to the basis or book value of the property.
The owner of an apartment house would most likely capitalize which of the following expenditures for income tax purposes?
- a. repairs
- b. assessment
* c. remodeling - d. maintenance
- c. remodeling
Remodeling is the only expenditure listed that could be capitalized; to capitalize an expenditure means to add the cost to the basis or book value of the property.
The most accurate determination of the age of a house can be made by inspecting the:
* a. Tax assessor’s records*
The recorded subdivision map may show the date that the land was divided into parcels, and not when the improvements were built. The tax assessor’s records will show when the assessor first started assessing that improvement.
The most accurate determination of the age of a house can be made by inspecting the:
* a. Tax assessor’s records
* b. Recorded subdivision map
* c. Physical condition of the house
* d. Architectural style of the house
The recorded subdivision map may show the date that the land was divided into parcels, and not when the improvements were built. The tax assessor’s records will show when the assessor first started assessing that improvement.
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?
* b. 30 hours of advanced practice
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?
- a. 27 hours of continuing education
* b. 30 hours of advanced practice - c. 30 hours of real estate fundamentals
- d. Three-hour core class
All renewals require 27 hours of CE and the three-hour core class. In addition, first-time renewals require 30 hours of advanced practice and 30 hours of real estate law.
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?
*** c. Complete 60 clock hours of continuing education coursework and and pay all accumulated renewal fees, penalties, and a reinstatement fee.
**
If her license has been cancelled for more than two years, the licensee must begin the entire licensing process again. Before that time, she may complete the required coursework, pay accumulated renewal fees, penalties, and a reinstatement fee.
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?
- a. Complete 30 clock hours of coursework and pay all accumulated renewal fees, penalties, and a reinstatement fee.
- b. Complete 30 clock hours of coursework and take the Washington portion of the licensing exam.
*** c. Complete 60 clock hours of continuing education coursework and and pay all accumulated renewal fees, penalties, and a reinstatement fee.
**
Tanner successfully completed his coursework and has passed his exam. He has selected the firm he’ll affiliate with and has sent his application materials to the DOL. When can he begin work?
* b. As early as either the postmark date or the date the required documents were hand-delivered to the DOL
- Washington allows licensees to begin work as soon as all required materials are mailed or delivered to the DOL. The application serves as a temporary 45-day license.
Tanner successfully completed his coursework and has passed his exam. He has selected the firm he’ll affiliate with and has sent his application materials to the DOL. When can he begin work?
- a. When the DOL confirms that his license application has been received
* b. As early as either the postmark date or the date the required documents were hand-delivered to the DOL - c. When he receives his physical license in the mail
- b. As early as either the postmark date or the date the required documents were hand-delivered to the DOL
Select the statement that best describes how to handle a Washington tenant’s security deposit.
* D. The landlord or property manager must deposit security deposits in a trust account.
-The Revised Code of Washington requires that tenant security deposits be promptly deposited in an approved trust account.
Select the statement that best describes how to handle a Washington tenant’s security deposit.
- A. Security deposits are considered operating funds and may be deposited in the property’s operating account.
- B. Tenant security deposits must be held in cash form on the premises so they’re immediately available for refund.
- C. The Washington Landlord-Tenant Act prohibits property managers from handling tenant security deposits.
* D. The landlord or property manager must deposit security deposits in a trust account.
-The Revised Code of Washington requires that tenant security deposits be promptly deposited in an approved trust account.
Trinity’s firm is thinking of storing some of its records electronically in order to conserve space. Which of the following statements is true?
* C. Records stored electronically must be indexed and available for immediate online viewing or printing.
-The DOL allows firms to store records electronically at the firm or on remote devices. The forms must be immediately retrievable, and the storage method must permit either online viewing or printing.
Trinity’s firm is thinking of storing some of its records electronically in order to conserve space. Which of the following statements is true?
- A. The DOL doesn’t allow firms to store records electronically.
- B. Firms must store records on electronic devices maintained at the firm’s primary location.
* C. Records stored electronically must be indexed and available for immediate online viewing or printing. - D. Only backup copies of records may be stored electronically.
-The DOL allows firms to store records electronically at the firm or on remote devices. The forms must be immediately retrievable, and the storage method must permit either online viewing or printing.
How long before expiration can a firm submit a license renewal application in Washington?
**
* 120 days
How long before expiration can a firm submit a license renewal application in Washington?
**
* 120 days**
Who is most likely to sue a property manager for mishandling of funds, breach of contract, fraud, or theft?
* Owner
Owners typically file lawsuits for these issues. Mishandling funds is the number-one reason owners file lawsuits against property managers.
Who is most likely to sue a property manager for mishandling of funds, breach of contract, fraud, or theft?
- Broker
- Lessor
* Owner - Tenant
Owners typically file lawsuits for these issues. Mishandling funds is the number-one reason owners file lawsuits against property managers.
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.
Firms may store records offsite. Storage must be in state and only at a site where the firm is licensed to do business, and only records for transactions that have been closed for over a year may be stored off site.
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 electronically.
- Store records for transactions that closed a year or more ago in an offsite location in Washington.
- Store records in the designated broker’s personal home.
* Store records in the firm’s out-of-state storage facility.
Which piece of information must a Washington licensee include in any advertisement?
* The licensed firm or assumed name
All advertising must include the firm name or assumed name as licensed.
Which piece of information must a Washington licensee include in any advertisement?
- The firm’s contact information
* The licensed firm or assumed name - The licensee’s contact information
- The licensee’s own name
All advertising must include the firm name or assumed name as licensed.
What is the maximum amount of time that can elapse between completing the required coursework and applying for the Washington broker’s licensing exam?
Topic: Licensing RequirementsSubtopic: Eligibility for licensing
* Two years
Applicants must apply for a broker’s licensing exam within two years of completing their coursework.
What is the maximum amount of time that can elapse between completing the required coursework and applying for the Washington broker’s licensing exam?
Topic: Licensing RequirementsSubtopic: Eligibility for licensing
* One year
* Six months
* Three years
* Two years
Applicants must apply for a broker’s licensing exam within two years of completing their coursework.
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.
Trent works for Eleanor, and thus owes his loyalty to Eleanor as the seller. Trent must disclose his subagency relationship to the buyer customer before showing the buyer the property.
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?
- Eleanor is the subagent to the seller.
- No one is a subagent in this scenario.
- The buyer is the subagent to Eleanor.
* Trent owes his loyalty to the seller.
Trent works for Eleanor, and thus owes his loyalty to Eleanor as the seller. Trent must disclose his subagency relationship to the buyer customer before showing the buyer the property.
