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WASHINGTON Real Estate Regulations
and Terms 2025 Exam
- What kind of research does WCRER perform? - Correct Ans:
✅Affordable housing
- How does WCRER support Washington real estate licensees? -
Correct Ans: ✅Provides research to support development of relevant continuing education courses
- How often does a Washington real estate firm's license expire? -
Correct Ans: ✅Every 2 years
- In addition to the required education and experience to request a substitution, what must applicants for a Washington managing broker's license submit with the application? - Correct Ans: ✅Detailed resume
- Washington's statutory duties specify that licensees' duties are limited to those outlined under state statute. Based on this, which of the following statements is true? - Correct Ans: ✅Caroline isn't prohibited by the outlined statutory duties from performing value-added services for her clients.
- In Washington, the buyer usually pays for which of the following
title insurance policies? - Correct Ans: ✅Lender's title insurance
- A routine audit of a real estate company by the Washington State
Department of Licensing will take place where? - Correct Ans: ✅At the main license location
- Marla Ricardo has been offered her dream job in another state. She asks her current landlord to let her out of her lease early. The landlord agrees to do so, with no strings attached. Marla and her landlord have decided to terminate the contract through ______. - Correct Ans: ✅Mutual agreement
- How does Washington define subagency? - Correct Ans: ✅An agent appointed by another agent to assist the principal
- Ethan is a real estate licensee in Seattle. He's busy making last- minute preparations for an open house at his client's property. What type of agent is he? - Correct Ans: ✅Seller's agent
- Corrinne is in a hurry to sell her property that's in a wildly popular neighborhood in Bothell, so she prices it below market value. She received numerous offers and tells her broker, Jim, to stop sending offers to her; she'll choose from those she's already received. Which of the following statements about this situation is true? - Correct Ans: ✅Jim is required by Washington statutory duties to continue to submit offers to her.
- Damon violated the terms of his lease by having pets, so property manager Sheila has started ______ proceedings to get him removed from the apartment. - Correct Ans: ✅Eviction
- Which of the following scenarios is an example of corrective
maintenance that a property manager may oversee? - Correct Ans: ✅Replacing a section of roof after a leak
- In Washington, keeping up with your continuing education is an
example of ________. - Correct Ans: ✅Reasonable skill and care
- Jimbo doesn't yet have a real estate license. Which activity is he
legally allowed to perform without one? - Correct Ans: ✅Give advice to a friend who is negotiating the purchase of a house.
- Which of the following statements about the duty to disclose
material facts is true in Washington? - Correct Ans: ✅Licensees are required to disclose those material facts of which they have actual knowledge.
- Joan is one of the Washington Real Estate Commission's six board members. She qualified for appointment by having seven years' brokerage experience. She's one of at least _____ commission member(s) from east of the Cascades. - Correct Ans: ✅ 2
- Charlie represents Sue, a buyer, in Redmond. Charlie is being paid by Claude, the seller, through his brokerage. What's true about this situation? - Correct Ans: ✅This doesn't change the agency relationships.
- The director has decided that Marty's infraction wasn't serious, but Marty needs to be put on notice that his actions aren't acceptable. The director can issue a letter of ________ or reprimand. - Correct Ans: ✅Censure
- In Washington, compensation from more than one party in a
single transaction is allowed if the broker ______. - Correct Ans: ✅Discloses it to all parties in writing
- Designated brokers are required to cooperate with the
Washington DOL in any audits or ______. - Correct Ans: ✅Investigations
- Lien - Correct Ans: ✅The right by mortgagee to take hold or sell the property of a debtor as security or payment for a debt
- Real Estate Valuation Reconciliation - Correct Ans:
✅Appraisers analyze reports to give accurate estimate of property value
- Equity - Correct Ans: ✅The value of the property remaining beyond the mortage debt
- Eminent Domain - Correct Ans: ✅Power of a government to take private property for public use.
- Certification of Occupancy - Correct Ans: ✅Building inspector approved occupancy safety
- Blanket Mortgage - Correct Ans: ✅A mortgage covering more than one piece of real estate often used by developers financing undeveloped lots
- Partial Release Clause - Correct Ans: ✅Part of a mortgage that enables release of part of the property upon payment of a certain amount of the mortgage
- Qualified Home - Correct Ans: ✅Primary home used for mortgage interest deduction
- Property Manager - Correct Ans: ✅Manages real estate of another for compensation
- Corrective Maintenance - Correct Ans: ✅Repairs on property
- Long Term Capital Gain - Correct Ans: ✅Profit on assets that were held for 3 years
- Short Term Capital Gain - Correct Ans: ✅Profit on assets that were held for less than 1 year
- Express Agency - Correct Ans: ✅Agency relationship based on formal agreement between the parties (written)
- Implied Agency - Correct Ans: ✅Agency relationship based on actions with no formal agreement
- 1988 Amendment added to Fair Housing Act - Correct Ans:
✅Protected people with mental and physical disabilities
- Fiduciary Duty (Accountability) - Correct Ans: ✅Agent must properly handle funds recieved by principal
- Appraisel - Correct Ans: ✅Estimation of property value
- Principal - Correct Ans: ✅Prospective Buyer
- Fiduciary Duty - Correct Ans: ✅Duties owed to all parties
- Fiduciary Duty (Reasonable Care) - Correct Ans: ✅Act with care
- Fiduciary Duty (Honesty) - Correct Ans: ✅Honesty to all parties
- Consumer Protection Act - Correct Ans: ✅laws and organizations designed to ensure the rights of consumers as well as fair trade competition and the free flow of truthful information in the marketplace.
- Competitive Market Analysis - Correct Ans: ✅Method of estimating market value of home by comparing to other homes that area
- Truth in Lending Act - Correct Ans: ✅Requires creditors to provide buyers with the terms and cost of credit
- Contingencies - Correct Ans: ✅Events with uncertain outcomes that might result in liabilities
- Dividends - Correct Ans: ✅Earnings distributed to stockholders
- FICO Bureau Scores - Correct Ans: ✅Credit score
- Income Taxation - Correct Ans: ✅Taxes based on annual gross income
- FIRPTA - Correct Ans: ✅Foreign Investment in Real Property Tax Act of 1980
- Income Ratio - Correct Ans: ✅The basis for dividing net income and net loss
- Fee Simple Estate/Fee Simple Absolute - Correct Ans:
✅infinite and highest ownership
- Life Estate - Correct Ans: ✅Freehold estate limited to life of owner
- Life Tenant - Correct Ans: ✅Holder of a life estate
- Measuring Life - Correct Ans: ✅Length of life determines length of estate hold
- Pur Autre Vie - Correct Ans: ✅Life Estate
- Lease - Correct Ans: ✅Rent
- Types of Leasehold Estates - Correct Ans: ✅1) Estate for Years
- Periodic Tenancy 3) Estate at Will 4) Tenancy at Sufferance
- Estate for Years - Correct Ans: ✅Tenancy with defined termination and consistent payment schedule
- Death of a Tenant in Common - Correct Ans: ✅Tenant in Joint Ownership can will portion to anyone
- Joint Tenancy - Correct Ans: ✅Joint ownership by two or more
- Community Property - Correct Ans: ✅Jointly Ownership: Property obtained during marriage
- Tenancy by the Entireties - Correct Ans: ✅Joint tenancy by married couple
- Open Listing - Correct Ans: ✅The broker who sells home first gets commission from owner.
- Closing Costs - Correct Ans: ✅Fees and charges associated with the purchase of a property
- Cloud on Title - Correct Ans: ✅Any claim affecting property marketability
- Collateral - Correct Ans: ✅Anything of value used as security for debt
- Commingling - Correct Ans: ✅Mixing money of agent and principal
- APR - Correct Ans: ✅Annual Percentage Rate
- Acceleration Clause - Correct Ans: ✅Buyer pays entire loan immediately if payment is missed
- Acquisition Clause - Correct Ans: ✅The amount of money required for a down payment on a property
- Acre - Correct Ans: ✅43,560 sq ft
- Ad Valorem - Correct Ans: ✅Latin: According to value
- Affiliated Licensees - Correct Ans: ✅Individual real estate agents working under brokerage
- Involuntary Alienation - Correct Ans: ✅A transfer of title to real property without the owner's consent
- Voluntary Alienation - Correct Ans: ✅The transfer of property with owner's consent
- ALTA - Correct Ans: ✅American Land Title Association
- Collections - Correct Ans: ✅Payments collected by the bank and added to the customer's bank account, last on credit report for 7 years
- Repossession - Correct Ans: ✅Taking away property due to failure to make loan or credit payments
- Foreclosure - Correct Ans: ✅Loanee takes back property after debt cannot be paid
- Judgement - Correct Ans: ✅Having been sued
- Qualifications for Mortgage Loan - Correct Ans: ✅1) Income Analysis 2) Net Worth 3) Credit Reputation
- Regulation Z - Correct Ans: ✅Implements Truth In Lending Act
- Predatory Steering - Correct Ans: ✅Steering towards more expensive loan than needed
- Fee Packing - Correct Ans: ✅Charging feesthst aren't necessary to loan
- Loan Flipping - Correct Ans: ✅Repeated refinancing of the same loan within a short period of time
- Balloon Payment - Correct Ans: ✅Final loan payment is the largest
- What's the purpose of the sale of distressed property clause in
a Washington listing agreement? - Correct Ans: ✅It prohibits the broker from representing or assisting a seller who intends to sell to a buyer who will then rent or sell the property back to the seller.
- Under Washington law, Tanya and her broker, Rob, are justified in retaining the buyers' earnest money because the buyers breached the sales contract. Who has first dibs on the money? - Correct Ans: ✅Rob's brokerage firm
- Based on the typical Washington listing agreement, who is responsible for purchasing the buyer's title insurance policy? - Correct Ans: ✅The seller
- Washington listing agreements are legally binding contracts
between ______. - Correct Ans: ✅The listing brokerage and the seller
- Which of the following scenarios best describes a net listing? -
Correct Ans: ✅Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount.
- Open
- Net Listing
- Agency Coupled with an Interest
- Why do brokers prefer the exclusive right-to-sell agreement? -
Correct Ans: ✅The broker will receive compensation when the house sells, no matter who finds the buyer.
- Jackson and Matilda Clark are separated, but both of their names are still on the property's title. Still, Jackson hasn't lived in the property in five years, and doesn't care what Matilda does with it. Does he need to be listed on and sign the listing agreement? - Correct Ans: ✅Yes. All property owners must be listed on and sign the listing agreement.
- May listing agreements be terminated without penalty? -
Correct Ans: ✅Yes, if both the listing broker and the seller's agree in writing
- What type of listing agreement guarantees the seller agent a commission no matter who finds a buyer for the property? - Correct Ans: ✅Exclusive right-to-sell agreement
- What is the purpose of a listing agreement? - Correct Ans:
✅To spell out the agreement between the listing broker and the seller
- The listing brokerage earns its commission under an exclusive
agency listing agreement ______. - Correct Ans: ✅If any broker procures the buyer
- Under one type of listing agreement, the seller agrees to pay compensation to the listing broker if any brokerage finds a buyer, but not if the seller finds a buyer. What type of agreement is this?
- Correct Ans: ✅Exclusive agency agreement
- What is the benefit to the seller who signs the exclusive right-
to-sell agreement? - Correct Ans: ✅A greater level of service from the seller's agent
- Joan signs a listing agreement with her broker, Tory, on January
- Within how many days must Tory submit the listing to a Washington MLS? - Correct Ans: ✅30 days
- Rachel, a REALTOR®, is transferring her Washington broker's license to a new firm. She calls all of her clients and asks them to request that they be allowed to terminate their agreements with her old firm and move with her to the new firm. What code or agreement has Rachel violated? - Correct Ans: ✅The REALTOR® Code of Ethics
- What's the purpose of the holdover or extender clause in a
Washington listing agreement? - Correct Ans: ✅It protects the broker by requiring payment of the total commission under certain circumstances.
