Chapter 5 of 169% of exam

Scenarios in Real Estate Practice (Managing Broker Only)

Area IV appears only on the managing broker exam: four items worth eight points, which is why 44 items carry 48 points. The bulletin names the four subjects — property management, supervision, and two topics drawn at random from the Statutes and Rules area.

How the block is scored

The bulletin's examination summary table gives the managing broker state portion as 44 questions and 48 points, and the state content outline records area IV as '4 questions/8 points.' Each scenario item is therefore worth two points rather than one. The bulletin's description of scenario items says options may be weighted zero, one, or two points based on the completeness and accuracy of the solution, and asks the candidate for the BEST answer rather than merely a defensible one. Several options in a scenario will be partly right; the exam is looking for the one that resolves the situation most completely.

Reading a scenario

Work in three steps. First identify the duty at stake — supervision, trust account integrity, honesty and disclosure to all parties, or the terms of a written agreement. Second, name the rule and its deadline: two business days to deliver funds, next banking day to deposit, five business days to review a new broker's contract, twenty days to report a charge, three years to retain records. Third, choose the option that both fixes the immediate problem and documents the fix. The distractors are typically correct about one rule and wrong about the one that governs — an owner's authority over his own money mistaken for authority over his tenants' deposits, a lapsed review window treated as a reason to skip the review, a duty that survives termination treated as a license to delay disclosure until after closing.

What the wrong answers look like

Options that shift responsibility onto the affiliated licensee usually fail, because RCW 18.85.361(22) makes inadequate supervision the supervisor's own violation and RCW 18.85.275(3) lets tasks be delegated but not accountability. Options that wait — for an audit, for closing, for the other side to ask — usually fail, because the rules are written with deadlines that have already started running. Options that ask a consumer to sign something curative usually fail, because a signature cannot make improperly held money properly held and a client cannot waive a duty RCW 18.86.030 says may not be waived. And options that move client money into the firm's own account fail twice over, adding commingling to whatever the original problem was.

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State-specific details

State exam facts

Exam vendor
PSI
Prelicensing education
90 clock hours beyond the broker license — advanced real estate law, brokerage management and business management, each at least 30 hours — plus 3 years of full-time Washington broker experience
Passing score
Scaled score of 75 on each portion (the entry Broker exam passes at 70)
Scored questions
134
Time limit
240 minutes
Who regulates real estate brokers in Washington?

The Washington State Department of Licensing (DOL) regulates real estate licensees under chapter 18.85 RCW; the real estate commission created by RCW 18.85.021 is the director plus six governor-appointed members who act in an advisory capacity. Note Washington's tiered naming: the entry-level license is called 'broker,' while the supervisory tier is 'managing broker.' DOL contracts with PSI to deliver both exams.

What experience do I need before the Washington managing broker exam?

RCW 18.85.111 requires three years of licensed experience as a full-time real estate broker in Washington or a comparable jurisdiction, obtained within the five years before you apply, plus 90 clock hours of instruction that must include advanced real estate law, real estate brokerage management and business management. WAC 308-124A-750 requires each of those courses to run at least 30 hours, carry a comprehensive examination and be completed within three years of applying; WAC 308-124A-713 sets out alternative routes for applicants qualifying by practical experience in an allied business.

How is the Washington managing broker exam structured?

PSI bulletin 4658 gives the managing broker exam a national portion of 90 scored items worth 100 points in 150 minutes and a Washington state portion of 44 scored items worth 48 points in 90 minutes — 134 scored items in 240 minutes together, plus 5 to 10 unscored experimental questions. The state items are not all worth one point: the four 'Scenarios in Real Estate Practice' items are worth two points each, which is why 44 items carry 48 points, and that block appears only on the managing broker exam. The portions are scored separately, you must attain a scaled score of 75 on each, and a passing portion is valid for six months while you complete the other. The entry Broker exam is 100 national plus 30 state items and passes at 70.

Sources: https://test-takers.psiexams.com/api/content/bulletin/4658, https://dol.wa.gov/professional-licenses/real-estate-managing-brokers, https://app.leg.wa.gov/RCW/default.aspx?cite=18.85, https://app.leg.wa.gov/RCW/default.aspx?cite=18.86

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