Lesson 17: Real Estate Careers and the Real Estate License Law: Pop Quiz
Which one of the following people does NOT need a real estate license? A.A building contractor (developer) B.A person who sells business opportunities involving real estate C.A person who lists or offers to list real estate D.A person who hosts open houses
A.A building contractor (developer) A building contractor is often involved in selling homes he has built and owns himself. As long as he is acting in this capacity, he does not have to have a real estate license. Note that while an unlicensed person may act as a greeter at an open house, she can't host or conduct tours or even answer questions except to reiterate basic facts about the property from a form prepared by the agent.
A group of affiliated licensees form a team, the XYZ Corporation, within the brokerage they work for (ABC Real Estate). ABC has a firm license, but XYZ does not. Whose name must appear in all the advertising of those affiliated licensees? A.ABC Real Estate B.XYZ Corporation C.Both ABC Real Estate and XYZ Corporation D.The name of each affiliated licensee
A.ABC Real Estate The license law requires that all advertising must include the brokerage firm's name, as licensed, so the name of ABC Real Estate would need to appear in all advertising.
Which of the following would NOT be grounds for disciplinary action against a licensee? A.An agent gives a copy of the sales agreement to the purchaser when it has been signed only by the offeror B.Conversion of funds C.A licensee acts as a dual agent without disclosure to both buyer and seller D.A licensee acts as a fee broker
A.An agent gives a copy of the sales agreement to the purchaser when it has been signed only by the offeror In regard to a purchase and sale agreement, the purchaser and the offeror are the same person. Thus, giving a copy of the agreement to the purchaser when it has been signed only by the offeror (i.e., the purchaser) is something the agent MUST do. Obviously, that would not be a license law violation.
An affiliated licensee's business card lists the name under which she does business as well as the brokerage firm's licensed name. The firm must require the licensee to: A.also include the licensee's name as licensed B.receive commissions under the licensee's incorporated name C.hire assistants only under the incorporated name D.unincorporate while working for the brokerage
A.also include the licensee's name as licensed A licensee may do business under a different name other than the name on his or her license, if the Director gives written permission.
A licensee hires another licensee, who works for the same firm, to be an assistant for negotiating and selling properties. The supervising licensee, in this relationship, must: A.be a managing broker B.be a member of the team C.have a controlling interest in the firm D.take a 30 clock-hour course on supervision
A.be a managing broker A managing broker's license authorizes a licensee to manage other licensees. This applies even in the "team" context, not just to the management of branch offices.
Under the Washington real estate license law, someone must have a license in order to: A.cold call listing prospects and offer to perform brokerage services B.distribute property information packets C.install display signs D.perform property maintenance tasks
A.cold call listing prospects and offer to perform brokerage services A person must have a real estate license to solicit members of the public and offer to perform real estate brokerage services on their behalf.
When making the required agency disclosure, a licensee must always: A.conduct herself in conformity with the agency disclosure she has made B.explain that she is the agent for the seller C.avoid dual agency situations, because they are illegal D.explain that she is the agent of the party who is responsible for paying the commission
A.conduct herself in conformity with the agency disclosure she has made The licensee's conduct must be in accord with the agency disclosure.
A real estate license is needed for all of these individuals, except: A.home inspector B.timeshare resale agent C.commercial leasing agent D.agent selling recreational real estate
A.home inspector A home inspector is not directly involved in representing others in the process of buying, selling, leasing, or advertising real property, so an inspector does not need a real estate license.
An affiliated licensee requests that her designated broker release her license and her listings so that she can open her own brokerage. The designated broker must surrender the license: A.immediately B.together with the listings immediately C.within ten days D.once the listings have sold or expired
A.immediately The brokerage must release the affiliated licensee's license at once, and without any conditions attached.
A brokerage firm's trust accounts must be opened: A.in the firm's name, and must be designated as trust accounts B.with the designated broker listed as the beneficiary of the trust C.in a recognized financial institution in the same county as the firm's office D.with signature cards for all trust beneficiaries
A.in the firm's name, and must be designated as trust accounts A trust account must be opened in the firm's name (as trustee) and must also be designated as a trust account. The depository institution must be in Washington State.
A licensee can serve as a closing agent for a fee in the state of Washington, if the: A.licensee is a licensed escrow officer B.fee is reasonable C.buyer and seller agree D.licensee discloses the fact to all parties
A.licensee is a licensed escrow officer A licensee who is not a licensed escrow officer can act as closing agent for any transaction in which she is the agent of record, but she cannot collect a fee, other than her normal commission. However, if the licensee is also a licensed escrow officer, she may collect a fee for acting as a closing agent.
J passes the license exam on March 20. How much time does J have to apply for his license, before being required to retake the license examination? A.Six months B.12 months C.18 months D.Two years
B.12 months J has 12 months. If the license fee is not paid and the license placed on an active or inactive status within that time, the applicant will have to retake the exam and meet any additional licensing requirements that have been adopted in the interim.
After a licensee's first renewal is complete, in order to renew the license again, the licensee must furnish proof that she has successfully completed how many clock hours in approved real estate courses? A.15 B.30 C.60 D.90
B.30 The requirement is 30 clock hours for the second renewal and for each subsequent renewal. Of course, when the licensee renews for the first time, she must complete 90 clock hours: 30 hours in advanced real estate practices, 30 hours in real estate law, and another 30 hours in elective courses.
Addenda to a purchase and sale agreement must be: A.kept in the broker's home office B.kept in the brokerage's transaction file C.kept in the firm's trust account D.signed by the broker
B.kept in the brokerage's transaction file A transaction file should include all modifications or addenda to any agreement. The transaction file should be kept where the firm is licensed to have an office, not in a broker's home office. The addenda will be signed by the buyer and seller, not the broker.
A license applicant who passes the exam: A.will receive his license in the mail within five business days B.must apply for a license within one year C.can sell real estate on an interim basis as soon as the exam is completed D.can work as a real estate broker on an interim basis while waiting to be affiliated with a brokerage firm
B.must apply for a license within one year To obtain a license, an applicant must apply for the license within one year after passing the exam. An applicant for a broker's license is allowed to start working after receiving notice that he passed the exam, as soon as he mails or hand delivers the completed application form and fee to the Department of Licensing (not as soon as the exam is completed).
According to Washington license law, a licensee who is acting as a property manager must give the owner a summary statement for all of the following, except: A.rent receipts B.property condition C.outstanding balances D.owner's contributions
B.property condition A summary statement is a brief report showing the property's financial status over a certain period of time, such as one month or one quarter. It would not include a report on the managed property's physical condition.
The Real Estate Commission does all of the following except: A.prepare licensing exam questions B.set real estate transaction fees C.advise the Director regarding new regulations D.hold educational conferences for the benefit of the real estate industry
B.set real estate transaction fees The Commission does not set transaction fees. Fees are set by agreement between the agent and principal in each transaction.
A managing broker asks his brokerage firm to release his license and listings so he can form his own firm. The firm must: A.surrender the license and listings immediately B.surrender the license immediately, but not the listings C.surrender the license only after the current listings have expired D.surrender the license once the licensee has repaid all debts owed to the firm
B.surrender the license immediately, but not the listings If a licensee terminates a relationship with a brokerage firm, the firm must surrender the license immediately. The listings, however, belong to the firm and not to the individual licensee, so they will stay with the firm.
When a broker attempts to renew his license, he intentionally lists a 3-hour course twice in order to reach 30 hours. The Director can: A.grant a 45-day interim license until the course is completed B.suspend the license and charge him with misrepresentation in obtaining or reinstating a license C.audit the school administrator D.refer the case to the Attorney General for prosecution
B.suspend the license and charge him with misrepresentation in obtaining or reinstating a license It is a violation of the license law, and grounds for disciplinary action, for a licensee to engage in misrepresentation or concealment of a material fact when obtaining or reinstating a license.
An affiliated licensee rarely works in the firm's main office. The records for the licensee's transactions must be kept in: A.the licensee's personal files B.the firm's office C.both the licensee's personal files and the firm's office D.in the licensee's personal files until closing, then at the firm's office
B.the firm's office A firm must keep all records at its main office or a branch office. While it may be advantageous for a licensee who is rarely in the office to keep copies of the records for personal reference, the law makes the firm ultimately responsible for the custody and accuracy of all required records.
A licensee is about to change her business location. Which of the following should she do? A.Move her license to the new location until the renewal date B.Notify the Director of the Dept. of Licensing by phone C.Notify the Real Estate Program Manager in writing D.Surrender her license, and apply for an updated license with the correct location
D.Surrender her license, and apply for an updated license with the correct location If a licensee plans to change her place of employment, the firm's designated broker or the licensee surrenders the license. The Director of the Department of Licensing will then issue a new license for the new location.
Who is responsible for preparing and conducting real estate license examinations? A.The Department of Licensing B.The Director C.The Attorney General D.The Real Estate Commission
D.The Real Estate Commission The Real Estate Commission has that responsibility, though they delegate it to a professional testing service.
Which of the following regarding responsibilities of a licensee is NOT true? A.The selling agent must make the agency disclosure to the buyer before the buyer signs an offer to purchase B.The selling agent must make the agency disclosure to the seller before the seller signs the offer to purchase C.A separate paragraph captioned "Agency Disclosure" in the purchase and sale agreement would satisfy the requirement D.The agency disclosure affirms that the licensee has made an independent inspection of the property
D.The agency disclosure affirms that the licensee has made an independent inspection of the property The licensee does not owe anyone, including the buyer, a duty to independently inspect the property or to investigate the financial capability of any party to the transaction.
Which of the following is not a requirement for a broker's license in the state of Washington? A.College diploma B.Age 18 or older C.Pass a state license examination D.Complete 90 hours of prelicense education
A.College diploma A college diploma is not a requirement for a broker's license.
If an agent fails to renew a license within one year after expiration, the license is considered: A.inactive B.suspended C.revoked D.cancelled
D.cancelled If a license isn't renewed within one year after it expires, the license is canceled. (A canceled license may still be reinstated within two years of cancellation, if certain conditions are met.)
Which of the following would be true regarding the designated broker for a real estate company? He must: A.have a minimum of 10% ownership of the company B.be paid a percentage of the company's profits C.follow the directions of the majority of the owners D.have absolute supervisory responsibility for all brokerage activities
D.have absolute supervisory responsibility for all brokerage activities The designated broker must have absolute supervisory responsibility for all brokerage activities.
A designated broker's supervisory duties do NOT include supervising: A.all of his brokers B.all of his managing brokers C.his branch managers D.licensees affiliated with other brokerages in the same multiple listing service
D.licensees affiliated with other brokerages in the same multiple listing service A designated broker is responsible for supervising all of his own affiliated licensees (brokers, managing brokers, and branch managers), but not licensees affiliated with other brokerages.
L's broker's license is issued on October 16. L's license will expire at the end of: A.this year, on December 31 B.next year, on December 31 C.one year, on October 16 D.two years, on October 16
D.two years, on October 16 L's license will expire two years after its issuance on October 16.
When does an active license become inactive? A.When it is canceled B.When it is delivered to the Director for any reason C.When it is revoked D.When the licensee discontinues selling activities for any reason
B.When it is delivered to the Director for any reason A license becomes inactive when it is delivered to the Director of the Department of Licensing for any reason.
It is not necessary to complete 30 hours of continuing education in order to renew a/an: A.active license B.broker's license C.inactive license D.managing broker's license
C.inactive license The renewal fee must be paid every two years, but as long as the license remains inactive, there is no education requirement. However, after three years of inactive status, reactivating the license—as opposed to renewing it—does require a 30-hour course.
Real estate transaction records should be kept for a minimum of: A.one year B.two years C.three years D.four years
C.three years Transaction records should be kept for at least three years after the transaction closes.
Which of the following qualifications is required for a licensee to be eligible to be a designated broker? A.Control over the firm's operational and financial decisions B.General partner in a partnership C.Five years as a managing broker D.Five years as a broker
A.Control over the firm's operational and financial decisions A designated broker must hold a managing broker's license and must have the ability to control the operational and financial decisions of the firm. (The situation is a little circular since control in part comes from being the DB; however, the DOL application for designated broker certification asks if the applicant has controlling interest over the firm and this question tracks that wording.)
If a designated broker wishes to terminate an affiliated licensee, or an affiliated licensee wants to terminate employment with a brokerage, which of the following statements is true? A.Either party may act unilaterally to end the relationship B.An affiliated licensee may terminate only after she pays all debts incurred to the brokerage C.A designated broker may terminate an affiliated licensee only if there is good cause for termination D.Only the affiliated licensee can terminate employment
A.Either party may act unilaterally to end the relationship Either a designated broker or an affiliated licensee may act unilaterally in order to terminate their employment relationship.
A real estate agent sold a home for $275,000. Prior to closing, the agent's license was revoked on grounds of moral turpitude. With respect to his eligibility for the commission, which of the following statements is true? A.He is eligible for the commission because he was duly licensed when the sale was made B.He is eligible for the commission because he is technically licensed until all appeals have been exhausted C.He is not eligible for a commission because he was not licensed at the time the commission was paid D.He is not eligible for a commission because a license revocation automatically nullifies any right to commissions that are yet unpaid
A.He is eligible for the commission because he was duly licensed when the sale was made The commission is earned when the sale is made, not when it is paid (at closing). The agent's license was revoked after the sale was made, so the agent was eligible for a commission when the services were provided and is still entitled to collect it.
H quits a broker position with XYZ Realty. When must H's designated broker return her license to the Director? A.Immediately B.Within 24 hours C.Within ten working days D.Immediately, once H satisfies any outstanding debts that may exist between H and H's brokerage firm
A.Immediately The license must be returned to the Director immediately, without conditions.
Broker T explains to her designated broker that she is leaving the firm for a better opportunity with another brokerage. What must T's designated broker do? A.Immediately send her license to the Director of the Department of Licensing B.Explain that her license cannot be released until her pending transactions are closed C.Hold the license until notified by the Department of Licensing that it can be returned D.Return the license immediately along with a summary of the agent's work history with the firm
A.Immediately send her license to the Director of the Department of Licensing The designated broker must immediately return the individual's license to the Department of Licensing. A summary of the licensee's conduct while employed by the firm would be necessary only if that conduct could result in disciplinary action by the Director.
A licensee, with permission from his designated broker, sets up his own subsection S corporation, which he calls M Realty. He then rents a billboard and advertises a listing on it, using only the M Realty name. Is this legal? A.No, because ads must give the name of the firm B.No, because the firm must be the one that rents the billboard C.Yes, because he had the designated broker's consent D.Yes, because he used the exact corporation name that was registered with the Secretary of State
A.No, because ads must give the name of the firm Under Washington's real estate license law, every advertisement placed by a licensee on behalf of others must contain the name of the real estate firm as licensed. This is true even if a licensee conducts his own operations under a separately named business entity.
An unlicensed real estate assistant may do which of the following without a license? A.Receive referral fees in some cases B.Discuss financing options with a client C.Hold open houses and discuss properties listed by the company he works for D.Provide full-service property management
A.Receive referral fees in some cases A license isn't required in order to receive referral fees, provided the fee isn't contingent on a licensee's compensation.
T represents J, a buyer. A week after J purchases a home, he decides to resell it. What role can T play in the resale transaction? A.T could act as dual agent for the two parties, or represent either of them B.T can only represent J C.T can only represent a prospective buyer D.T must wait 90 days before representing either party to the new transaction
A.T could act as dual agent for the two parties, or represent either of them In the new transaction, T may represent the buyer, the seller, or, if he makes the proper disclosures, he may represent both parties as a dual agent. If representing the new buyer, T would not be able to disclose to the buyer any confidential information previously learned about J.
L owns a bookstore and the lot it sits on. He hires M, a high school English teacher, to find a buyer for the business and property. He agrees to pay her $5,000. M finds a buyer and L pays her $5,000. Has M violated the real estate license law? A.Yes, because selling a business opportunity that includes real estate for pay requires a license B.Yes, because she entered into an oral listing agreement C.No, because L came to her with the idea of selling his bookstore D.No, because business opportunities aren't classified as real estate
A.Yes, because selling a business opportunity that includes real estate for pay requires a license Selling a business opportunity that includes real estate for compensation requires a real estate license. (An oral listing agreement does not violate the license law. It simply isn't enforceable if the seller refuses to pay the brokerage commission.)
A brokerage manages a property. The property management records must be kept in: A.a location where the firm is licensed to have an office B.the property being managed C.the firm's personal file D.the firm's safe deposit box
A.a location where the firm is licensed to have an office All property management records must be kept at a location where the firm is licensed to have an office, which can be either a main office or branch office.
Under Washington's real estate agency law, an agency relationship begins when a: A.licensee undertakes to provide real estate brokerage services to a principal B.purchase and sale agreement is signed C.transaction closes D.licensee first meets a prospective client
A.licensee undertakes to provide real estate brokerage services to a principal Under the real estate agency statute, an agency relationship with a seller is created when a listing agreement is signed. An agency relationship with a buyer is created when the licensee performs any real estate brokerage services for the buyer, unless there is a written agreement to the contrary (for example, the licensee has already entered into a listing agreement with the seller).
Unless the purchase agreement or other contract states differently, an earnest money check given to a real estate licensee shall be made out to the: A.licensee's firm, as licensed B.closing or escrow agent C.seller D.appropriate multiple listing association
A.licensee's firm, as licensed The question and answer correctly state the law; however, it is common practice for the buyer to name an escrow agent in the offer and make out the check to that person.
A dual-state brokerage firm doing business in Washington must: A.maintain a trust account in Washington if holding any funds in trust B.keep its transaction records on file with the Department of Licensing C.only hire out-of-state licensees D.maintain an office in Washington
A.maintain a trust account in Washington if holding any funds in trust A dual-state brokerage must maintain a trust account in a Washington depository institution if holding funds in trust for Washington clients.
Which of the following is TRUE about the holder of an inactive license? This person: A.may not perform any acts that require a real estate license B.is technically licensed, and may perform certain acts that require a real estate license C.can keep the license on inactive status for a maximum of three years D.must obtain 30 clock hours of real estate instruction prior to each inactive license renewal
A.may not perform any acts that require a real estate license An inactive licensee may not perform any act that requires a license, because she is deemed to be unlicensed.
In the course of business, a firm earns property management fees that are to be paid out of the trust account. The fees must be taken out of the account: A.monthly B.quarterly C.semi-annually D.annually
A.monthly They must be removed from the property management trust account on a monthly basis.
When a licensee is terminated, the date of termination is the: A.postmark date or the date the license is hand-delivered to the Department of Licensing B.moment the termination is understood and agreed upon by both the designated broker and the affiliate C.date the termination notice is tendered by either the designated broker or the agent D.date the terminated license is received by the Department of Licensing
A.postmark date or the date the license is hand-delivered to the Department of Licensing The termination date is the postmark date or the date the license is hand-delivered to the Department of Licensing.
What does the principle of vicarious liability refer to? A liability: A.that arises from the acts or omissions of one's agent B.that is the result of a breach of contract C.created by an inadvertent dual agency D.created by involuntary servitude
A.that arises from the acts or omissions of one's agent It is a liability imposed upon one person, such as a seller, because of the act or omission of another, such as the seller's agent. The doctrine of vicarious liability does not apply to real estate agency in Washington.
To be entitled to sue for a commission, a person must be able to prove that at the time the real estate activities were performed, she: A.was licensed B.had passed the real estate exam C.had at least a verbal promise of compensation D.was under the supervision of a managing broker
A.was licensed A person must have been validly licensed at the time she engaged in the real estate activities for which a commission is claimed.
A licensee manages a property for one of her friends for a fee of $70 per month. Which of the following is true? A.A written agreement is required between the licensee and the property owner B.A written agreement is required between the licensee's firm and the property owner C.No written agreement is required because the fee is so low D.No written agreement is required because the licensee and property owner are friends
B.A written agreement is required between the licensee's firm and the property owner Regardless of the amount of the fees involved, there must be a written property management agreement between the owner and the real estate firm. The property manager represents the firm, so the agreement is between the owner and firm (as opposed to between the owner and property manager).
A broker arranges a transaction while working for ABC Realty. Before the transaction closes, the broker's license becomes inactive. Which statement about the broker's commission is true? A.ABC Realty must return the commission to the seller B.ABC Realty can pay the commission to the broker C.ABC Realty must pay the commission to the licensee who took over the transaction for the now-inactive broker D.ABC Realty must keep the commission
B.ABC Realty can pay the commission to the broker A broker may receive a commission as long as she was properly licensed at the time she procured a promise for the payment of compensation.
An affiliated licensee owns a wholly owned S corporation, A Realty. He instructs an escrow agent to issue a commission check directly to A Realty. How has he violated the real estate license law? A.A third party can't give instructions to an escrow agent B.Commissions can be paid to licensees only via their firm C.The licensee didn't first inform the principals D.The licensee may charge for escrow services only if he is also a licensed escrow agent
B.Commissions can be paid to licensees only via their firm A licensee may be paid a commission only by the real estate firm he is affiliated with. Affiliated licensees are not designated brokers; they work for a firm. "A Realty" cannot be a brokerage because no designated broker has a controlling interest in the entity. An affiliated licensee cannot receive compensation directly from a client or customer, or from another licensee, another real estate firm, or another business entity. (Nor can an affiliated licensee act as the designated broker of another firm; an affiliated licensee can't own a brokerage, in other words.)
According to the Washington real estate license law, which of the following can be paid directly from a real estate firm's trust account? A.Advertising expenses incurred by the licensee on behalf of the client B.Commissions payable to the firm and any cooperating brokerage C.Commissions payable to the firm's affiliated licensees D.Only the client can pay expenses out of the trust account
B.Commissions payable to the firm and any cooperating brokerage Commissions payable to the firm and to any cooperating brokerage can be paid directly out of a trust account. The firm cannot pay the commissions owed to affiliated licensees out of the trust account. It would transfer the entire commission payable to its office into the general account and pay the affiliate(s) out of that account.
Who is ultimately responsible for the delivery of the earnest money? A.Purchaser B.Designated broker C.Listing licensee D.Licensee who receives funds
B.Designated broker While the licensee who receives the funds has initial responsibility for handling the deposit in compliance with the license law, as with all brokerage activities, the designated broker has ultimate responsibility.
Which of the following is NOT a purpose of the Center for Real Estate Research? A.Provide scholarly information about real estate to the public B.Establish listing prices for properties C.Recommend changes to real estate education courses D.Perform real estate economic studies
B.Establish listing prices for properties The Center for Real Estate Research studies local economic conditions and proposes changes to real estate education curricula. It does not have a role in establishing listing prices.
A real estate agent would like to contact a buyer that he previously represented, to ask if that person would be interested in listing her home or if she has any referrals. Under what circumstances could the agent contact that person without having to consult the Do Not Call registry? A.He represented the buyer within the previous 6 months B.He represented the buyer within the previous 18 months C.There is no limit; he can contact the buyer regardless D.He may never contact the buyer
B.He represented the buyer within the previous 18 months If an agent has an established business relationship with a previous client, he may call that person within the 18 months following that person's last transaction, even if that person has placed her name on the Do Not Call registry. (If that person then asks the agent to stop calling, though, the agent must honor that request.)
Which of the following statements about a blind ad is true? A.It is misleading because it fails to state the asking price B.It fails to identify the advertiser as a real estate agent C.It doesn't indicate the location of the property D.It's an ad directed at low-income buyers
B.It fails to identify the advertiser as a real estate agent The license law requires licensee ads to include the name of their real estate firm as licensed (or use its assumed name). Omitting the firm name is called a blind ad and is prohibited.
A licensee has obtained the signatures of the buyer and seller on a sales contract. Failure to do which of the following could result in disciplinary action by the Director? A.Accurately determine the settlement costs of the buyer B.Provide a copy of the sales contract to the buyer and the seller when they signed it C.Accurately determine the settlement costs of the seller D.Provide a good faith estimate of the value of the property before the contract is signed
B.Provide a copy of the sales contract to the buyer and the seller when they signed it A copy of the offer must be given to the buyer when she signs it, and a copy of the contract must be given to the seller when he signs accepting the offer (creating a contract). The completed contract must then also be given to the buyer.
Real estate license fees are put into the: A.Director's personal account B.Real Estate Commission Account C.Real Estate Education Fund D.Washington Association of Realtors trust account
B.Real Estate Commission Account Real estate license fees (application fees, renewal fees, etc.) are placed in the Real Estate Commission Account in the state treasury.
A licensee who knows that there's an encroachment on the seller's property is discussing the property with a buyer. Which of the following statements is true? A.It is illegal for the seller to sell the property with an encroachment B.The licensee should mention the encroachment and tell the buyer to consult an attorney before making an offer on the property C.The licensee should not reveal the encroachment because to do so would harm the seller D.The licensee should withdraw from the listing, claiming a conflict of interest
B.The licensee should mention the encroachment and tell the buyer to consult an attorney before making an offer on the property The encroachment must be revealed to the purchaser, and its implications should only be explained by an attorney.
A Washington real estate broker takes a listing for a waterfront bungalow while working for Firm A. However, before a purchase agreement is signed, she terminates her affiliation and begins working for Firm B. Which of the following statements is true? A.The listing belongs to Firm A, but Firm A will still owe a commission to the original broker B.The listing belongs to the firm, and will remain with Firm A C.The listing belongs to the licensee, and will go with her to Firm B D.The listing is canceled automatically, and the seller must re-list with the broker
B.The listing belongs to the firm, and will remain with Firm A Listing agreements are the property of a firm, not a licensee. If a licensee leaves a firm mid-transaction, the listing still will belong to the firm and will not follow the licensee to a new firm. Here, the agent left before a ready willing and able buyer was found. (Generally, whether the firm owes a commission to the licensee is a matter of the licensee's employment agreement with the firm, not of law.)
An applicant passes the broker's examination and takes the notice to the designated broker where she plans to work. At what point can she legally begin selling real estate? A.When the license is hung on the wall B.When the application is mailed to the Department of Licensing C.When the license is received back from the Department of Licensing D.45 days after the application is mailed to the Department of Licensing
B.When the application is mailed to the Department of Licensing Once an applicant has been notified that she has passed the state exam, she may begin working on the date she mails or hand delivers the signed, dated, and completed application form and license fee to the Department of Licensing. The completed form serves as an interim license for up to 45 days after the postmark or hand delivery date.
In Washington, a person licensed to act on behalf of a real estate brokerage is called a/an: A.independent licensee B.affiliated licensee C.associate licensee D.designated licensee
B.affiliated licensee A person licensed to act on behalf of a real estate brokerage is called an affiliated licensee.
A real estate licensee would automatically enter into a buyer agency relationship when she: A.agrees to show the buyer her listings B.agrees to show the buyer another agent's listings C.signs a subagency agreement with the seller D.None of the above
B.agrees to show the buyer another agent's listings In Washington, a buyer agency relationship is formed as soon as a licensee agrees to perform real estate brokerage services for a buyer. However, there's an exception to this rule: if the licensee already has an agreement to represent someone else, then no buyer agency is automatically created. The listing agent would have to do something more substantial than what's described in answer A to create a dual agency, such as counseling the buyer on how much to offer.
A licensee hires an unlicensed assistant. While the licensee is on a two-week vacation, the assistant helps negotiate contract addenda. The licensee could be disciplined under the Uniform Regulation of Business and Professions Act for: A.unlicensed practice B.aiding and abetting unlicensed practice C.failing to act in accordance with agency status D.misrepresentation
B.aiding and abetting unlicensed practice A licensee may be disciplined under the license law for aiding or abetting an unlicensed person to perform real estate activities that require a license.
An attorney at law is exempt from real estate licensing laws when: A.negotiating the sale of any business opportunity B.arranging the sale of real property while settling a client's estate C.soliciting real estate business D.engaging in the real estate business through her licensed law firm
B.arranging the sale of real property while settling a client's estate An attorney at law is exempted from licensing requirements when performing her duties as an attorney. The exemption doesn't apply to an attorney who provides real estate brokerage services not directly connected to a client matter.
To be qualified to take the managing broker's examination in Washington, an applicant must have: A.a college degree B.been licensed as a full-time broker for at least three years within the five years preceding the application C.have had a broker's license in another state for a minimum of five years D.have been a member of the Washington State Bar Association for at least six months
B.been licensed as a full-time broker for at least three years within the five years preceding the application An applicant must have been licensed as a full-time real estate broker for at least three of the preceding five years in this state, or in any other state with comparable licensing requirements.
An Internet website operated by a licensee displays the properties he has listed. The site must give the: A.physical location of the properties B.brokerage's licensed name C.brokerage's email address D.physical location of the real estate firm's office
B.brokerage's licensed name A licensee should fully disclose his licensed status in all Internet communications. This includes providing the name of his brokerage firm as registered with the Department of Licensing. The city and state where the firm's office is located is also required, but its physical location--a specific address--is not. Addresses of listed properties and an email address for the firm are also not required.
Q is a property manager. Q also owns a carpet cleaning company. Q's carpet cleaning company provides services for all of the properties managed by Q. This is permissible if Q: A.charges competitive rates B.discloses the arrangement in writing to all affected property owners C.is not the principal stockholder in the carpet cleaning company D.is not the principal stockholder in the property management company
B.discloses the arrangement in writing to all affected property owners Q must disclose his interest in the carpet cleaning company and obtain the written permission of all the owners whose properties are affected by this arrangement.
J is selling real estate without a license. J is guilty of a: A.misdemeanor B.gross misdemeanor C.second degree felony D.first degree felony
B.gross misdemeanor Selling real estate without a license is a gross misdemeanor, which in terms of seriousness is somewhere between a misdemeanor and a felony.
The selling agent must NOT accept a promissory note as an earnest money deposit: A.unless the agent knows that the buyer has an excellent credit history B.unless the purchase and sale agreement discloses that the deposit is a note C.unless the seller agreed during negotiation discussion to accept a promissory note D.under any circumstances
B.unless the purchase and sale agreement discloses that the deposit is a note When preparing the buyer's offer to purchase, the selling agent must disclose on the purchase and sale agreement form that the deposit is in the form of a promissory note (or any other form that is not the equivalent of cash). The seller can then take this into account in deciding whether or not to accept the buyer's offer.
How much of a real estate license fee goes to pay for the Center for Real Estate Research? A.All B.None C.$10 D.$50
C.$10 The Center for Real Estate Research is funded through a $10 fee that is part of the license fee charged to both brokers and managing brokers.
Prior to a licensee's first license renewal, she must complete how many hours of education in courses approved by the Director? A.30 B.45 C.90 D.120
C.90 She must complete 90 hours (30 hours in advanced real estate practices, 30 hours in real estate law, and another 30 in an elective).
Who needs to submit continuing education credits with each license renewal? A.Active brokers only B.Active managing brokers only C.All active licensees D.All active and inactive licensees
C.All active licensees Both brokers and managing brokers must take continuing education courses, so long as they are actively licensed. Inactive licensees do not need to comply with the continuing education requirement, although a 30-hour class is required in order to reactivate a license that has been inactive for more than three years.
Which of the following statements regarding pooled interest-bearing trust accounts is true? A.A client who makes a $5,000 earnest money deposit can insist on a separate trust account B.Pooled interest-bearing trust accounts are for property management accounts only C.Earnest money deposits over $10,000 can be placed in separate trust accounts D.All earnest money deposits must be placed in a pooled interest-bearing trust account
C.Earnest money deposits over $10,000 can be placed in separate trust accounts Earnest money deposits of $10,000 or less must be placed in a pooled interest-bearing trust account (property management accounts are exempted from this requirement). Deposits over $10,000 do not have to be placed in the pooled accounts, but they can be
In Washington, an agency relationship is created between a buyer's agent and the buyer when: A.an offer to purchase is signed B.an offer to purchase is accepted C.the agent performs brokerage services for the buyer D.the buyer inquires about one of the agent's listings
C.the agent performs brokerage services for the buyer A buyer's agent enters an agency relationship when he performs any real estate brokerage services for a buyer, unless there is a written agreement to the contrary
Broker Linda obtains a listing from a seller that she has never previously worked with. However, when she tells Mel, her designated broker, about it, Mel says that he's had bad dealings with that seller before, and tells Linda to cancel the listing. Which of the following statements is true? A.Linda may keep working with the seller but under a heightened level of scrutiny from her managing broker B.Linda may keep working with the seller if she feels confident about doing so C.Linda must renounce the listing, because it belongs to the brokerage, not to her D.Linda must renounce the listing if the seller has previously been convicted of criminal fraud
C.Linda must renounce the listing, because it belongs to the brokerage, not to her A listing belongs to a brokerage firm, not to an individual broker. The firm's designated broker is the final authority on whether or not to renounce a listing with a troublesome seller, even if the broker wants to continue.
A property manager handling a vacant building fails, for several months, to keep out vagrants who damage the property. Who is liable? A.The management firm's designated broker alone B.The property manager alone C.The property manager as well as the designated broker (for failing to properly supervise the licensee) D.No one is liable
C.The property manager as well as the designated broker (for failing to properly supervise the licensee) Generally, property managers must be licensed (as opposed to people who simply collect rent and sign leases and perform basic maintenance). In addition, the answer options strongly suggest that this is a licensee working for a brokerage. The property manager here is liable for failing to exercise reasonable care in carrying out the duties she took on for her client. The property manager's designated broker may also be liable for failing to supervise the property manager adequately.
At what minimum point must an inactive licensee take a 30 clock-hour course in order to reactivate her license? A.Six months B.One year C.Three years D.Five years
C.Three years A licensee must take a 30 clock-hour continuing education course in order to reactivate a license that has been inactive for more than three years.
A broker pays a desk fee each month and receives 100% of commissions. The broker commits an act that is grounds for disciplinary action. The designated broker could be subject to disciplinary action: A.because the broker receives 100% of commissions B.because the broker is an independent contractor C.because the designated broker is responsible for all of the firm's brokerage activities D.under the theory of respondeat superior
C.because the designated broker is responsible for all of the firm's brokerage activities A designated broker may be liable for an affiliated licensee's actions because she has ultimate responsibility for the firm's brokerage activities.
A real estate agent took a $3,000 cash earnest money deposit on Friday morning. She had another appointment on Friday afternoon and didn't want to misplace the money over the weekend, so she deposited it into her personal bank account. First thing on Monday morning, she transferred the money to her firm's trust account. She has: A.acted properly B.acted properly if her account was registered with the state as a temporary account C.commingled funds D.not violated the law because the deposit was only for several days
C.commingled funds The real estate agent has violated state laws concerning trust fund handling, by commingling trust funds with her own personal funds.
To be eligible to take the real estate broker's exam, an applicant must have: A.a college diploma B.at least one year of experience working in a real estate office C.completed a 60 clock-hour course in Real Estate Fundamentals and 30 clock hours in Real Estate Practices D.at least one real estate managing broker as a sponsor
C.completed a 60 clock-hour course in Real Estate Fundamentals and 30 clock hours in Real Estate Practices An applicant for the broker's exam must have completed a 60 clock-hour course in Real Estate Fundamentals and a 30-clock hour course in Real Estate Practices.
S's real estate license is inactive. This is because: A.her application has not yet been received by the Department of Licensing B.she has not gotten a listing in over six months C.her license has been delivered to the Director of the Department of Licensing D.she failed to renew her license before the expiration date
C.her license has been delivered to the Director of the Department of Licensing Any time a license is surrendered to the Director of the Department of Licensing, it becomes inactive.
Licensees are required to keep the Director notified of changes in their: A.home telephone number B.marital status C.mailing address D.errors and omissions carrier
C.mailing address When a licensee changes her mailing address, she should notify the Director of the Department of Licensing of that change. (If a licensee's name changes for any reason, including marriage, the licensee should notify the Director. But the licensee does not need to notify the Director simply because of a change in marital status.)
A licensee is considering an employment offer from a brokerage firm. The position would involve control over the firm's operational and financial decisions. The level of licensure required would be: A.broker B.managing broker C.managing broker, with a designated broker endorsement D.supervisory broker
C.managing broker, with a designated broker endorsement The person who has ultimate responsibility for a firm is a designated broker. There is no designated broker license, though; the designated broker must have a managing broker's license and must receive a designated broker's endorsement for the license.
A Washington real estate licensee's license has expired because he did not pay his license fee as required. His license can be reinstated if he: A.completes an additional 30 hours of continuing education electives B.obtains special permission from the Director of the Department of Licensing C.pays back renewal fees, plus penalties D.retakes the real estate examination
C.pays back renewal fees, plus penalties A license that hasn't been properly renewed will expire. It can be reinstated within one year of the expiration, if the licensee pays a penalty and any back fees.
Washington's Real Estate Brokerage Relationships Act: A.doesn't apply to leasing transactions B.doesn't require the disclosure of dual agency C.requires a pamphlet on agency relationships to be given to all parties before any written agreement D.requires agents to keep information confidential on behalf of all parties
C.requires a pamphlet on agency relationships to be given to all parties before any written agreement Washington's real estate agency statute requires agents to give the pamphlet on agency relationships to all parties. The duty of confidentiality applies only to a principal, not to all parties.
Which of the following would not be considered a nominal earnest money deposit, subject to the pooled interest-bearing account requirement? A.$5,000 in the form of a personal check B.$7,500 in the form of cash C.$10,000 in the form of certified funds D.$11,000 in the form of a cashier's check
D.$11,000 in the form of a cashier's check Nominal earnest money deposits are $10,000 or less.
Pamela would like to get a Washington broker's license. Which requirement must she meet? A.Four-year college degree B.Be a Washington resident C.Be at least 21 years of age D.Complete a course in Fundamentals
D.Complete a course in Fundamentals One requirement for a broker's license in Washington is completion of a course in Fundamentals. No college is required, Washington residency is not required, and the applicant must be at least 18 (not 21).
Under the Uniform Regulation of Business and Professions Act (URBPA), which of the following actions by a licensee would constitute unprofessional conduct? A.Allowing an unlicensed assistant to submit property information to the multiple listing service B.Being convicted of a gross misdemeanor related to a motor vehicle accident C.Failure to include in an advertisement the designated broker's name and telephone number of the brokerage D.Failure to provide a buyer with a property disclosure form
D.Failure to provide a buyer with a property disclosure form Depending on the circumstances, failure to provide a property disclosure form in a transaction where one is required could be considered incompetence, negligence, malpractice, or misrepresentation. In any case, it violates the Uniform Regulation of Business and Professions Act. An advertisement must include the firm's name as licensed, but not the name of the firm's designated broker or the telephone number.
K, an agent for ABC Realty, lists M's home for sale. J, who also works for ABC Realty, writes an offer from the Zs to purchase M's home, which M accepts. Which of the following statements is NOT true? A.K is the agent for M B.J is the agent for the Zs C.ABC Realty is a dual agent D.K, J, and ABC Realty are all agents for the seller
D.K, J, and ABC Realty are all agents for the seller In Washington the licensee who lists the home is an agent for the seller. So is his firm. The agent who sells the property is the agent for the buyer. Since both listing and selling agent work for the same brokerage, the brokerage is a dual agent.
Washington state's real estate agency law does not address which of the following? A.Definition of dual agency B.Creation and termination of agency relationships C.Vicarious liability of principal and licensee D.Penalties for not disclosing agency status
D.Penalties for not disclosing agency status Washington's real estate agency law is found in the Real Estate Brokerage Relationships Act (RCW chapter 18.86). It addresses the topics listed in answers A - C (definition of dual agency, creation and termination of agency, and vicarious liability), but there is no reference in the law to penalties for not disclosing agency status. Penalties are found in the license law (RCW chapter 18.85).
Which of the following is EXEMPT from the pooled interest-bearing account requirement? A.All earnest money deposits for residential transactions B.Earnest money deposits of no more than $10,000 C.Earnest money deposits of no more than $5,500 D.Property management trust funds
D.Property management trust funds Property management trust funds are exempt. The pooled interest-bearing account requirement applies to earnest money deposits of $10,000 or less.
A company that is organized as an LLC wants to represent clients in real estate transactions. Who must be licensed? A.The company only B.A partner with at least a 10% ownership interest C.All directors, officers, or co-partners D.The company and a person with control over operational and financial decisions
D.The company and a person with control over operational and financial decisions The company itself must obtain a real estate license, and the company's designated broker must hold a managing broker's license. The designated broker (typically a member in an LLC) must have the ability to control the company's operational and financial decisions. (In addition, all other members of the firm acting as affiliated licensees must be individually licensed.)
Branch manager K has a bookkeeper, who is a licensed real estate agent. K gives an earnest money check in the amount of $3,000 to the bookkeeper for deposit. The bookkeeper records it as a $1,000 deposit, and then deposits the balance of the earnest money in his personal account, which is grounds for disciplinary action. Who is subject to disciplinary action? A.The branch manager and the bookkeeper B.The bookkeeper only C.The designated broker of the firm only D.The designated broker, the branch manager, and the bookkeeper
D.The designated broker, the branch manager, and the bookkeeper The designated broker is responsible for all activity within her company; the branch manager is responsible for activity within his branch office. The bookkeeper is ultimately responsible and therefore subject to discipline by the Department of Licensing as well.
In Washington, an inactive licensee may: A.conduct open houses B.manage a branch office of a brokerage C.be exempt from disciplinary actions D.be an unlicensed assistant to a real estate licensee
D.be an unlicensed assistant to a real estate licensee An inactive licensee is generally deemed to be unlicensed, and may not perform activities that require a license. An inactive licensee would still be able to perform the duties that any other unlicensed assistant could perform.
A real estate agent from Oregon is involved in a commercial property transaction in Washington. The agent from Oregon must do all of the following EXCEPT: A.associate with a Washington brokerage B.provide a copy of the out-of-state real estate license to the Washington firm C.deposit all records in the transaction with the firm in Washington D.register with the Department of Licensing at least 20 days before engaging in brokerage activities
D.register with the Department of Licensing at least 20 days before engaging in brokerage activities An out-of-state licensee may handle commercial real estate transactions in Washington without a Washington license if she works in cooperation with a brokerage in Washington. The Washington firm must have custody of the out-of-state broker's records concerning the in-state transaction, and it must be given a copy of the out-of-state broker's license. Out-of-state licensees aren't required to register with the Department of Licensing.
If a real estate agent is sending out emails offering his services, the federal CAN-SPAM Act requires the agent to: A.avoid emailing persons on the "do not call" list B.include the brokerage firm's name as licensed C.make sure that a licensee, not an unlicensed person, was responsible for the content D.tell recipients how to opt out of receiving future emails
D.tell recipients how to opt out of receiving future emails The CAN-SPAM Act is a federal law that places limits on unsolicited emails. One requirement is that an email must give information on how recipients can avoid receiving further emails.
A firm's transaction file should include all of the following, except: A.the purchase and sale agreement B.the buyer's and seller's closing statements C.all transaction correspondence D.the buyer's preapproval letter
D.the buyer's preapproval letter A transaction file should include the purchase and sale agreement, settlement statements, and any other agreements or documents relevant to the transaction. It would not need to include the buyer's preapproval letter.
The following are all goals of Washington Center for Real Estate Research, except: A.recommending changes to state statutes regarding licensing B.promoting growth and development in Washington C.determining low-income vacancy rates D.writing real estate exam questions
D.writing real estate exam questions The Center for Real Estate Research does not write real estate exam questions; this is the job of the Real Estate Commission.
