Washington License Law and Firm Requirements (RCW 18.85)
Washington real estate practice is governed by RCW 18.85 and the rules in WAC 308-124, administered by the Department of Licensing. This chapter covers the three-name license ladder and the firm structure a managing broker works within.
The Department of Licensing and RCW 18.85
The Washington State Department of Licensing (DOL) issues and regulates real estate licenses under RCW 18.85, with detailed rules in WAC 308-124. DOL sets licensing standards, investigates complaints, and may deny, suspend, revoke, or condition a license or impose fines. Anyone who performs real estate brokerage services for compensation must be licensed unless a statutory exemption applies.
Broker, Managing Broker, and Designated Broker
Washington uses three names. A Broker is the entry license. A Managing Broker has met additional experience and education and is qualified to supervise affiliated licensees. Each real estate firm must have a Designated Broker, a managing broker the firm designates as legally responsible for the firm's operations, records, and trust accounts. Understanding which duties attach to each tier is central to the managing broker exam.
Qualifying for the Managing Broker License
The managing broker credential requires experience and education beyond the entry Broker license, generally about three years of full-time work as an active Washington broker within the prior five years plus additional approved clock-hour education, before the candidate may sit for the managing broker examination. Candidates should confirm the current experience and hour requirements directly with DOL, which updates them periodically.