Washington Managing Broker Exam — All Questions

A distinctive feature of the Washington managing broker exam, compared with the plain broker exam, is heavier testing on the licensee's duty to:

• a.Personally appraise every listed property
• b.Supervise affiliated licensees, including the supervision of teams✓
• c.Guarantee the buyer's mortgage financing
• d.Draft title insurance policies

The managing broker portion emphasizes supervisory responsibility. Beyond overseeing individual affiliated licensees, Washington managing brokers must supervise real estate teams operating within the firm. This supervision content is weighted more heavily on the managing broker exam (about 18 items) than on the plain broker exam (about 13 items).

Under Washington firm requirements, a managing broker who supervises other licensees is expected to:

• a.Delegate all recordkeeping to the affiliated brokers with no review
• b.Allow affiliated brokers to hold client funds in their own personal accounts
• c.Avoid reviewing transaction files to reduce liability
• d.Establish and enforce policies so that the firm's transactions and records comply with RCW 18.85 and WAC 308-124✓

A Washington managing broker's supervisory duty includes adopting and enforcing office policies, reviewing transactions and advertising, and ensuring records and trust funds are handled according to RCW 18.85 and WAC 308-124. Supervision cannot simply be delegated away; failing to reasonably supervise affiliated licensees is itself a basis for discipline.

A newly formed team within a Washington firm advertises under a team name. The managing broker's responsibility is to:

• a.Ensure the team's advertising and conduct comply with firm policy and Washington law, because team activity remains under the firm's and its brokers' supervision✓
• b.Treat the team as a separate licensed firm exempt from supervision
• c.Ignore the team name because only the designated broker is responsible
• d.Let the team keep its own independent trust account

Washington regulates real estate teams as part of the firm, not as independent entities. The managing broker must supervise team advertising, disclosures, and conduct so they comply with firm policy and Washington law. Teams may not operate their own trust accounts or hold themselves out as a separate firm.