Washington Real Estate Broker Exam — All Questions

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AllProperty OwnershipLand Use Controls and RegulationsValuation and Market AnalysisFinancingContractsAgencyProperty DisclosuresTransfer of TitlePractice of Real EstateProperty ManagementReal Estate CalculationsWashington License Law (RCW 18.85)Washington Agency Law (RCW 18.86)Washington Practice & ClosingWashington Licensing Requirements

2 questions

Washington Practice & Closing

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

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.

Washington Practice & Closing

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

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

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.

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