Washington Real Estate Broker Exam — All Questions

Washington real estate closings are commonly handled by a neutral third party that holds funds and documents and completes the transaction. This party is the:

• a.Listing broker acting alone
• b.State treasurer
• c.Escrow agent or closing agent✓
• d.County assessor

Washington transactions are typically closed through a neutral escrow or closing agent who holds the buyer's funds and the deed, follows the parties' instructions, and disburses funds and records documents at closing. Escrow protects both buyer and seller.

When a Washington firm receives earnest money, the funds must generally be:

• a.Deposited into the firm's trust account and handled per RCW 18.85 rules✓
• b.Given to the seller before closing
• c.Kept as cash by the individual broker
• d.Spent on marketing the property

Earnest money and other client funds must be deposited into the firm's real estate trust account and handled according to the requirements of RCW 18.85, not commingled with personal or operating funds. The designated broker is responsible for the trust account.

When must a Washington broker deposit earnest money into the firm's trust account?

• a.Within three banking days after mutual acceptance is reached
• b.On the same banking day the funds are received by the broker
• c.The next banking day after receipt, absent a deferral term✓
• d.Within five business days after the seller signs the offer

RCW 18.85.285 requires brokers to deposit all funds into their firm's trust bank account the next banking day following receipt, unless the purchase and sale agreement provides for a deferred deposit. Cite: RCW 18.85.285.

Interest earned on a Washington firm's pooled trust account is remitted to the state. How is it divided?

• a.75 percent to the housing trust fund, 25 percent to education✓
• b.50 percent to the housing trust fund, 50 percent to education
• c.100 percent to the real estate commission account for audits
• d.25 percent to the housing trust fund, 75 percent to education

RCW 18.85.311 divides remittances received under RCW 18.85.285 between the housing trust fund created by RCW 43.185A.130, which receives 75 percent, and the real estate education program account created by RCW 18.85.321, which receives 25 percent. The depository remits quarterly. Cite: RCW 18.85.311.

Absent a written agreement otherwise, to whom must an earnest money check be made payable in Washington?

• a.The individual broker who is handling the transaction
• b.The real estate firm, exactly as the firm is licensed✓
• c.The seller, who then forwards it to the closing agent
• d.The designated broker, in that person's own name

WAC 308-124D-200 requires checks for earnest money, security and damage deposits, rent, lease, contract or mortgage payments on client-owned property to be made payable to the real estate firm as licensed, unless the parties agree in writing that the seller or an escrow agent will be the payee; the firm must keep a copy of that written agreement. Cite: WAC 308-124D-200.

How long must a Washington real estate firm keep transaction records available for inspection?

• a.Two years from the date the transaction closes or fails
• b.Seven years, to match federal recordkeeping standards
• c.Five years from the date the listing agreement is signed
• d.Three years, at the licensed office or a central facility✓

WAC 308-124C-110 requires records to be retained and available for inspection by the director for a minimum of three years. Records are kept at the licensed office address, but transactions closed for at least one year may be moved to one central facility located in Washington. Cite: WAC 308-124C-110.

Which basis does the Washington Law Against Discrimination protect in real estate transactions that the federal Fair Housing Act does not name?

• a.Marital status, and veteran or military status✓
• b.Race, color, and national origin, exactly as under federal law
• c.Religion and sex, which Washington names creed and gender
• d.Familial status, which Washington calls families with children

RCW 49.60.222(1) covers sex, marital status, sexual orientation, race, creed, color, national origin, citizenship or immigration status, families with children status, honorably discharged veteran or military status, disability, and the use of a trained dog guide or service animal. Marital status, sexual orientation, veteran or military status, and citizenship or immigration status reach past the federal list; families with children status is Washington's wording for the federal familial status. Cite: RCW 49.60.222(1).

When must a Washington seller deliver the Form 17 seller disclosure statement?

• a.Before the property is first advertised for sale to the public
• b.At the time the buyer's written offer is presented to the seller
• c.Not later than five business days after mutual acceptance✓
• d.Not later than ten business days before the closing date

RCW 64.06.030 requires the seller to deliver a completed, signed and dated real property transfer disclosure statement not later than five business days after mutual acceptance, unless otherwise agreed or unless the buyer has expressly waived the right to receive it. Cite: RCW 64.06.030.

A Washington buyer receives the Form 17 and does nothing for a week. What is the effect?

• a.The agreement is void because the buyer never approved it
• b.The statement is deemed approved and accepted by the buyer✓
• c.The buyer keeps the right to rescind until the closing date
• d.The seller must redeliver the statement and restart the clock

RCW 64.06.030 gives the buyer three business days from receipt, or as otherwise agreed, to approve the statement or to rescind the agreement in the buyer's sole discretion by written notice. If no written rescission notice is delivered within that window, the disclosure statement is deemed approved and accepted by the buyer. Cite: RCW 64.06.030.

A Washington buyer expressly waives the seller disclosure statement. Which part cannot be waived?

• a.The section on structural defects in the dwelling itself
• b.The section listing homeowners association assessments
• c.The section on the title and any recorded encumbrances
• d.The Environmental section, if any answer would be yes✓

RCW 64.06.010(7) exempts a transfer in which the buyer expressly waives receipt of the seller disclosure statement, but adds that if the answer to any of the questions in the section entitled Environmental would be yes, the buyer may not waive receipt of that section. Cite: RCW 64.06.010(7).

Which transfer is exempt from Washington's seller disclosure statement requirement?

• a.A sale of a four-unit residential building to an investor
• b.A sale by an owner who never occupied the residence
• c.A sale to a buyer who held an interest within two years✓
• d.A sale of a condominium unit that is under ten years old

RCW 64.06.010(4) exempts a transfer where the buyer had an ownership interest in the property within two years of the date of the transfer. Chapter 64.06 RCW otherwise reaches improved residential real property of one to four dwelling units, so the fourplex sale is covered, and nothing turns on whether the seller lived there. Cite: RCW 64.06.010(4); RCW 64.06.005.

Who owes the Washington real estate excise tax, and what happens while it is unpaid?

• a.The seller; the deed cannot be recorded until paid✓
• b.The buyer; the sale is void until the treasurer is satisfied
• c.The escrow agent; the firm's trust account covers a shortfall
• d.The listing firm; the commission is held back until it is paid

RCW 82.45.080 makes the tax the obligation of the seller, enforceable by an action of debt or in the manner prescribed for foreclosing mortgages. RCW 82.45.090 bars the county auditor from accepting the instrument of sale or conveyance for filing or recording until the tax is paid and the treasurer affixes verification of payment. Cite: RCW 82.45.080; RCW 82.45.090.