Washington Real Estate Broker Exam — All Questions
12 questions
Real estate licensing in Washington is administered by the Department of Licensing under which chapter of the Revised Code of Washington?
- a.RCW 84.40
- b.RCW 64.06
- c.RCW 18.85✓
- d.RCW 59.18
Washington real estate broker licensing is governed by RCW 18.85 and administered by the Washington State Department of Licensing (DOL). RCW 64.06 covers the seller disclosure statement, and RCW 59.18 is the Residential Landlord-Tenant Act.
In Washington's current licensing structure, the entry-level license for a person who lists and sells real estate under supervision is called a:
- a.Salesperson
- b.Real estate broker (working under a managing broker)✓
- c.Registered agent
- d.Realtor
Washington replaced the term salesperson; the entry-level license is now the real estate broker, who must be affiliated with and supervised by a designated or managing broker. A managing broker has additional experience and education and may supervise a firm.
Which individual real estate license levels does Washington issue?
- a.Salesperson, broker, and broker-in-charge
- b.Sales agent, broker associate, and qualifying broker
- c.Broker, managing broker, and designated broker✓
- d.Associate broker, principal broker, and salesperson
Washington has no salesperson license. RCW 18.85.011 defines a broker, who acts for a firm under supervision; a managing broker, who may supervise other licensees; and a designated broker, the natural person who acts for the firm and must hold an endorsed managing broker's license. Cite: RCW 18.85.011.
A Washington real estate license runs two years from issuance. What happens if the renewal fee is never paid?
- a.The license is canceled one year after the expiration date✓
- b.The license is canceled immediately on the expiration date
- c.The license stays renewable for five years after expiring
- d.The license drops to inactive status and never is canceled
RCW 18.85.191 gives a license a two-year term and cancels the license of a person whose renewal fee is not received within one year from the date of expiration. Inactive status under RCW 18.85.265 is something a licensee elects, not a resting place for an unpaid renewal. Cite: RCW 18.85.191.
A Washington broker candidate passes the national portion of the licensing examination. What is the deadline for the state portion?
- a.Twelve months, or the national portion must be retaken
- b.Two years, matching the life of the education courses
- c.Ninety days, after which both portions must be retaken
- d.Six months, or both portions must be taken over again✓
The Department of Licensing requires a candidate to pass the state and national examinations within six months of each other or retake both. Two separate clocks also run: the examinations must be taken within two years of finishing the 90 clock hours, and the license application filed within one year of passing the final examination. Cite: Washington DOL, Get your license: Real estate brokers.
A Washington broker closes a sale. Who may pay the broker's share of the commission?
- a.The escrow agent, directly out of the closing funds
- b.The firm, through its designated broker only✓
- c.The buyer, by separate check written at closing
- d.The cooperating firm that produced the buyer
RCW 18.85.301(3) makes it unlawful for brokers or managing brokers to be paid any part of their commission except through the firm's designated broker, and subsection (2) bars a firm from paying a licensee who is not licensed to that firm. Cite: RCW 18.85.301.
Washington bars paying commission to unlicensed persons who perform brokerage services. Which payment does the statute expressly allow?
- a.A finder's fee to an unlicensed buyer who refers a friend
- b.A commission split with the firm's unlicensed assistant
- c.A shared commission with a manufactured housing retailer✓
- d.A referral fee to an unlicensed out-of-state salesperson
RCW 18.85.301(4) permits a commission to be shared with a manufactured housing retailer licensed under chapter 46.70 RCW on the sale of personal property manufactured housing sold in conjunction with the sale or lease of land. Subsection (1) otherwise reaches only persons licensed in some state or in a foreign jurisdiction with a real estate regulatory program. Cite: RCW 18.85.301(4).
A person who was unlicensed when a Washington listing was taken sues for the commission. What is the result?
- a.Recovery in quantum meruit for the value of services
- b.Recovery is allowed if licensed by the closing date
- c.Recovery is allowed if the seller knew of the lapse
- d.No suit lies; licensure must be pleaded and proven✓
RCW 18.85.331 bars any suit for compensation without alleging and proving that the plaintiff was duly licensed before offering to perform the transaction or procuring the promise of compensation. Licensing up later, and the seller's knowledge, do not cure it. Cite: RCW 18.85.331.
Which activity is exempt from Washington real estate licensing?
- a.An attorney-in-fact under a power of attorney, without pay✓
- b.An unlicensed assistant who shows listings for a small fee
- c.A property manager who negotiates leases for owner clients
- d.A referral company paid a share of the closing commission
RCW 18.85.151(2) exempts a duly authorized attorney-in-fact acting under a power of attorney without compensation. Subsection (8) exempts a referral provider only when the compensation is not contingent on the transaction, which is why a commission-share referral company is not exempt. Cite: RCW 18.85.151.
A Washington designated broker must supervise licensees for compliance with what?
- a.Only the firm's own written office policy manual
- b.Only chapter 18.85 RCW and the firm's listing forms
- c.Chapters 18.85 and 18.235 RCW, and RCW 18.86.030✓
- d.Only the federal fair housing and RESPA requirements
RCW 18.85.275(1) directs the designated broker or managing broker to supervise the conduct of brokers and managing brokers for compliance with chapter 18.85 RCW, chapter 18.235 RCW (the Uniform Regulation of Business and Professions Act), and RCW 18.86.030. Cite: RCW 18.85.275(1).
A Washington broker with six years of experience is asked to supervise three new brokers. What does that take?
- a.Two years of experience and the designated broker's consent
- b.A managing broker license, which supervision always requires✓
- c.A written delegation from the firm's designated broker alone
- d.Nothing more; any broker may supervise less senior brokers
RCW 18.85.275(5) requires any broker who supervises other brokers in the performance of real estate brokerage services to hold a managing broker license. Experience and a written delegation are not substitutes. A managing broker in the first two years must also receive heightened supervision under RCW 18.85.275(6). Cite: RCW 18.85.275.
Who may rescind or release a real estate brokerage service contract on behalf of a Washington firm?
- a.Any broker licensed to the firm who signed the contract
- b.The firm's owner, whether or not that person is licensed
- c.The principal alone, since the firm is only the agent
- d.The designated broker or the designated broker's delegate✓
RCW 18.85.275(4) gives the designated broker, or the designated broker's delegate, authority to amend, modify, bind, create, rescind, terminate, or release real estate brokerage service contracts on behalf of the real estate firm. Cite: RCW 18.85.275(4).