Download Washington Real Estate Agent Exam 2025 – Latest Real Questions and Correct Answers (Grade and more Exams Engineering in PDF only on Docsity!
WASHINGTON REAL ESTATE AGENT
EXAM 2025 LATEST REAL QUESTIONS
AND CORRECT ANSWERS GRADE A
A firm's satellite office at a new condominium does not need a managing broker on site if it is within how many miles of the nearest branch office? A) 20 B) 35 C) 40 D) 50 - CORRECT ANSWER B) 35 Feedback: Correct: State regulations allow a satellite sales office without a managing broker present if is within 35 miles of the nearest branch office. When a licensee is determined by the state to not be in compliance of court-ordered child support payments, the Department of Licensing can: A) suspend the licensee's license until current B) revoke the licensee's license until current C) notify the licensee's firm to withhold commissions D) any of the above - CORRECT ANSWER A) suspend the licensee's license until current Feedback: Correct: Since the state issues a person's license, it has the authority to suspend that license if the licensee is not meeting the court's order of child support. In order for a firm to terminate an affiliate's working relationship, the firm must: A) both parties must concur and submit to the DOL in writing B) either party can act unilaterally to terminate an affiliation
C) the designated broker must take action, but only with cause of the affiliate D) the DOL must give permission for termination - CORRECT ANSWER B) either party can act unilaterally to terminate an affiliation Feedback: Incorrect: Either the affiliate or the firm can unilaterally terminate an affiliation and notify the DOL of their desire. Termination would be completed when the affiliated license is sent back to the DOL for processing. If a licensee does not renew their license for over a year, the license is: A) cancelled and the person must start all over with getting a license B) cancelled unless the continuing education requirement is met C) inactive until renewed D) suspended - CORRECT ANSWER A) cancelled and the person must start all over with getting a license Feedback: Correct: A licensee is granted a 1 year grace period regarding their license. After 1 year, the license is cancelled and the individual would have to start all over again with the requirements of licensing. When a licensee terminates their affiliation with a firm, the designated broker must: A) start termination procedures immediately B) release all listing agreements owned by the license C) both are correct D) neither are correct - CORRECT ANSWER A) start termination procedures immediately Feedback: Correct: The listings are owned by the firm and retained by the firm. The designated broker must start the DOL termination procedures immediately.
The pamphlet on agency representation law must be provided: A) to your client prior to signing an agreement B) all parties prior to signing an agreement C) given only to the seller prior to signing D) prior to all commercial transactions - CORRECT ANSWER B) all parties prior to signing an agreement Feedback: Correct: When in contact with clients and customer, you must provide them with the agency pamphlet provided by your firm. It is not required for commercial sales and transactions. A licensee that is representing a firm as a broker is called a(n): A) affiliated licensee B) associate licensee C) self-employed licensee D) all are correct - CORRECT ANSWER A) affiliated licensee Feedback: Correct: A licensee practicing through a firm/designated managing broker is called an affiliated licensee. The old term "associate" is no longer used. The notice to a licensee to appear at a hearing called by the Director of the Department of Licensing requires: A) written notice to the licensee B) 30 days' notice C) both are correct D) neither is correct - CORRECT ANSWER C) both are correct Feedback:
Correct: Notification to appear at a hearing with the Director requires it to be in writing and 30 days prior to the hearing date. Which of the following continuing education rules for licensees is correct? A) 90 hours are required for the first renewal B) 30 hours is required for the second and subsequent renewals C) both are correct D) neither is correct - CORRECT ANSWER C) both are correct Feedback: Correct: The first renewal requires 30 hours of Advanced Practices, 30 hours of Law, and 30 hours of a course of your choosing. The second and subsequent renewals are simply 30 hours. When a licensee begins practicing professional real estate, they are subject to all of the following EXCEPT: A) the supervision of their affiliated firm B) the Washington Administrative Code (WAC) C) the Revised Code of Washington (RCWs) D) the local real estate board - CORRECT ANSWER D) the local real estate board Feedback: Incorrect: All licensees are subject to the rules and regulations of the WAC and RCWs. They are supervised by their firm/designated broker. The local real estate board does not regulate their actions. Which of the following involved money does not have to be placed in an interest-bearing account? A) sale of commercial property B) property management accounts C) sale of a residence with a $5,000 earnest money deposit D) a buyer puts less than $1,000 of earnest money down on an offer - CORRECT ANSWER B) property management accounts
B) selling a mobile home at a mobile home park C) selling a business on its owned land D) all require a license - CORRECT ANSWER C) selling a business on its owned land Feedback: Correct: The key to needing a license is selling land that the business or mobile home is situated on. If the land is leased, no license is required. Which of the following is not a requirement of a broker candidate in obtaining a license? A) age 18 or older B) high school diploma or GED C) pass the State exam D) complete 60 hours of required instruction - CORRECT ANSWER D) complete 60 hours of required instruction Feedback: Correct: The required instruction is 60 hours of fundamentals and 30 hours (90 hours) of total instruction. A person does not need a college degree, but must have a high school diploma or GED. When a person passes the Broker Exam, when could he/she begin practicing professional real estate for the firm of his/her choosing? A) When the fees and application are received by the DOL B) when his/her designed broker mails the forms and fees to the DOL C) when the DOL issues the license D) when the license is received by the designated broker - CORRECT ANSWER B) when his/her designed broker mails the forms and fees to the DOL Feedback: Correct: Mailing in the forms, test results, and fees to the DOL starts a 45 day temporary license prior to receiving the actual license.
When does an agency relationship begin under Washington law regarding the purchase of real estate? A) when a licensee meets a customer B) when a licensee gives real estate advice at an open house C) when a licensee begins to provide real estate brokerage services D) when real estate documents are signed by the client - CORRECT ANSWER C) when a licensee begins to provide real estate brokerage services Feedback: Correct: Beginning to provide brokerage services for a client which can be buying or selling of the real estate begins the agency relationship. The licensee must give the pamphlet on agency law at that time. Giving advice to a customer (not a client) is not an agency relationship. Agency law requires brokerage action on behalf of a person/client. Vern failed to appear at a hearing order by the Director. What is in store for Vern? A) the hearing will begin whether Vern is there or not to defend himself B) Vern's license is immediately suspended C) the hearing is automatically rescheduled D) the Director turns it over to the Attorney General - CORRECT ANSWER A) the hearing will begin whether Vern is there or not to defend himself Feedback: Correct: Hearings commence whether the license appears or not. Suspension and further legal action is not automatic. If a property management firm negotiates each property management agreement with each owner, the contract: A) that is standardized can be altered by a licensee B) must be drawn by an attorney C) must be a state approved standardized contract D) the firm is allowed to draft an agreed contract if both the owner and firm agree in advance - CORRECT ANSWER B) must be drawn by an attorney
Feedback: Correct: If inactive, the individual does not have to do continuing education to renew their inactive license. Current licensed individuals must do continuing education. Which of the following is not an appropriate place to display the licenses of the affiliated licensees of the firm? A) in the reception area of the firm B) on the wall where the file cabinets are kept C) on the office wall of the designated broker D) in an unmarked book in the reception area - CORRECT ANSWER D) in an unmarked book in the reception area Feedback: Correct: Being tucked away in an unmarked book, no matter where it is, is not an example of displaying licenses in a prominent manner. When collecting a check as earnest money from a buyer, the licensee should make sure it is made out to: A) the licensed real estate firm B) the designated broker C) the bank with the trust account D) any of the above can be used - CORRECT ANSWER A) the licensed real estate firm Feedback: Correct: Checks must be made out to the firm with the trust account utilized by all licensees. Which of the following is determined to be the most important records regarding the practicing of property management? A) the property management agreements B) the expenses each property C) record of all income and expenses
D) ledgers of owner payments into the program - CORRECT ANSWER C) record of all income and expenses Feedback: Correct: The main concern are records of income and expenses of the managed property of clients. If a person wants to reactivate their inactive license, a 30 clock hour course must be taken if the inactive license has existed longer than: A) 1 year B) 2 years C) 3 years D) 5 years - CORRECT ANSWER C) 3 years Feedback: Correct: Once an inactive license goes beyond 3 years, the DOL will require a 30 clock hour course to be completed before going active. It is usually the most up-to-date real estate law course. What is the minimum balance amount that a firm's client trust account must meet? A) $ B) $ C) $ D) there is no minimum requirement - CORRECT ANSWER D) there is no minimum requirement Feedback: Correct: There is no minimum amount. Earnest money deposits are required to go here. If a there are no earnest money deposits that are in escrow, the balance could be $0. Larry is an affiliate of Able Realty in Sunnyside. The main office of the firm is in Yakima. Where does the state require transactional records of Larry to be kept? A) the main office in Yakima
A blind ad presents problems under Washington regulations. Which of the following is correct regarding the use of them? A) it fails to identify the advertiser that is licensed within the State of Washington B) the ad does not specify the address of the property C) the ad does not properly state the condition of the property advertised D) the ad is not available for the public to view - CORRECT ANSWER A) it fails to identify the advertiser that is licensed within the State of Washington Feedback: Correct: All advertising must specify the name of the firm and its location. If this is not done by the firm or its affiliates, it is considered a blind ad and not allowed. How long should a firm keep the transactional files on record for state inspection? A) 1 year B) 2 years C) 3 years D) 5 years - CORRECT ANSWER C) 3 years Feedback: Correct: State regulations require 3 years. However, be careful; the IRS requires income records for 5 years. Jill did not respond to an inquiry of the Director regarding a client complaint. The Director then suspended her license. How would her affiliated firm handle the sales that she made and are currently in escrow? A) commissions must be withheld until ordered by the Director to pay Jill B) all commissions would go to the firm C) her sales transactions would held up by escrow D) Jill would be eligible for commission - CORRECT ANSWER D) Jill would be eligible for commission
Feedback: Correct: All sales made by Jill prior to suspension can be paid to Jill. The key is that the sales were put into the mill prior to suspension. These can be paid to Jill. Brokers are allowed to accept compensation from: A) their client B) sub-agent firms C) their designated broker D) all the above - CORRECT ANSWER C) their designated broker Feedback: Correct: Compensation can only be received through the designated broker of the affiliate broker. Other parties would have to pay the designated broker who would then pay the affiliate broker. Property management summary statements given to owners must include all the following EXCEPT: A) payments by the owner to the property management firm B) rent receipts from tenants C) the balances of ledger statements on account D) maintenance and repair needs of each property - CORRECT ANSWER D) maintenance and repair needs of each property Feedback: Correct: Only financial information is required by the state. Maintenance and repair needs would be a request of the owner. If a person is selling property on behalf of others without a license, the state considers this to be: A) felony B) misdemeanor C) civil action D) gross misdemeanor - CORRECT ANSWER D) gross misdemeanor
C) disallowing some firms from membership in a multiple-listing-service organization D) all are anti-trust activities - CORRECT ANSWER D) all are anti-trust activities Feedback: Correct: All three answers have been determined by the Department of Justice and State Attorney General to be anti-trust activities When the Director collects a fine from a licensee, these penalty moneys are: A) deposited into the General Fund of the State of Washington B) sent to the Department of Licensing C) placed into the Real Estate Education Account of the DOL D) placed into the housing trust fund account - CORRECT ANSWER C) placed into the Real Estate Education Account of the DOL Feedback: Correct: The Washington Administration Code allows DOL real estate fines to go to the Real Estate Education Account. The moneys are utilized exclusively for the education benefit of real estate licensees. In the past, all moneys went to the General Fund of the State of Washington. The Washington Center for Real Estate Research (WCRER) is located in: A) Olympia B) Tacoma C) Seattle D) Ellensburg - CORRECT ANSWER C) Seattle Feedback: Correct: The Washington Center for Real Estate Research is an industry-focused unit within the Runstad Center for Real Estate Studies located at the University of Washington in Seattle Wa. The Director of the DOL can take disciplinary action against all licensees. Which of the following is not allowed as a penalty? A) suspend a license
B) revoke a license C) fine up to $5,000 per offense D) deny a requested hearing by a licensee - CORRECT ANSWER D) deny a requested hearing by a licensee Feedback: Correct: All licensees are allowed the opportunity to have a hearing with the Director as an appeal of a penalty. If losing, the licensee can go on to State Superior Court. In which of the following situations would a licensee not have to retake the State Exam in order to obtain a license? A) the license was revoked B) an inactive license was not renewed for over 2 years C) an active license was not renewed for over 2 year D) the license was suspended for 1 year - CORRECT ANSWER D) the license was suspended for 1 year Feedback: Correct: Suspension of the license does not require the obtaining of a new license. Once an inactive or active license is off the books for over 2 years, a new exam is required. Which of the following is NOT a goal of the Real Estate Research Center regarding its function in behalf of the State of Washington? A) constructing the State real estate exam B) finding out real estate information such as the vacancy rates of rentals in various parts of the State C) recommending revisions of the Revised Code of Washington for the real estate profession D) promoting the development of the real estate industry within the State of Washington - CORRECT ANSWER A) constructing the State real estate exam Feedback: Correct: The Real Estate Commission works with and approves the State Exam and not the RERC. The RERC tries to gain important information needed by the real estate profession such as vacancy rates, sale pricing, needed revisions in the RCWs and WACs.
Correct: Amounts over $10,000 can be deposited into a separated trust account with the interest going to the buyer. Licensed broker Y worked as a sub-agent at an open house for another firm. A customer came in and became a client for the listing/open house company. The listing company is paying Y a $500 bonus for handling it. How would the $500 be paid to Y? A) the listing agent can pay Y $ B) the listing firm can pay Y $ C) the listing firm would pay Y's firm who pays the $500 to Y D) Y cannot get the $500 - CORRECT ANSWER C) the listing firm would pay Y's firm who pays the $ to Y Feedback: Correct: All compensation to Y must come from Y's firm and no one else. The listing company would have to pay Y's firm and Y's firm would pay him/her. Broker Mary place a large listing with her (then) firm Ajax Realty. Before the transaction closed, Mary left and moved to Able Realty. How would the commission be handled. A) Ajax gets to keep 100% of the commission B) Ajax would pay Able Realty who would pay Mary C) Ajax would move the listing to Able when Mary left D) Ajax can pay Mary her commission - CORRECT ANSWER D) Ajax can pay Mary her commission Feedback: Correct: As long as the sale was made while Mary was with Ajax, Ajax can pay Mary her commission. The listing stays with Ajax and does not move with Mary to Able. Paul and Paula are self-employed managing brokers. They want to share office space and open two separate business within that space. What involves the practicing of real estate with separated firms within the same space? A) real estate records must be kept separated B) separate enterances must be maintained C) they cannot share the same bathroom
D) all are requirements - CORRECT ANSWER A) real estate records must be kept separated Feedback: Correct: The State allows this as long as the spaces are separated and there is no confusion as to what company has which part of the space. They do not have to have separate entrances or bathrooms. Storage of records MUST BE separated at all times. Broker Bob is handling a transaction clear on the other side of the State. The earnest money was $100,000 made out to his designated broker. He cannot get to his firm's office by the next business day. What can Bob do with the check? A) deposit it with his bank in the name of his firm's account B) contact his firm and ask how they want to handle the situation C) get the account number of the firm's trust account from the firm's bank on the other side of the State D) any of the these would be acceptable - CORRECT ANSWER B) contact his firm and ask how they want to handle the situation Feedback: Correct: Bob should call his designated broker and see what to do. It is the decision of the firm as to how to get the check into the proper trust account. The firm's bank will not work with Bob and give him the account number without authorization from his firm. A designated managing broker is responsible for the actions of the affiliated brokers. This is due to: A) State regulations B) vicarious liability C) both are correct D) neither is correct - CORRECT ANSWER C) both are correct Feedback: Correct: The affiliated brokers are working in behalf of the firm as the agent of the firm/designated broker. The firm enjoys the use of their services. This is known as vicarious liability. The firm/designated broker are responsible for their broker's actions. This is required by State regulation.
