Washington Real Estate Law (Continuing Education 2021)

Which of these is a lease with a rent payment that does not fluctuate during the lease term? A) A flat lease B) A percentage lease C) A graduated lease D) A fixed net lease

A) A flat lease Also called a fixed lease, a flat lease is characterized by "flat" payments.

RESPA Section 8 forbids unearned fees and fees or kickbacks in exchange for referrals of settlement services in transactions involving what? A) A federally related mortgage loan B) A mortgage loan C) A service provider D) A lender

A) A federally related mortgage loan RESPA applies to transactions involving a federally related mortgage loan, which includes all federally-backed loans.

Which of the following is an acceptable phrase to use in advertising? A) "Seeking male roommate" B) "Third-floor unit available; no play area" C) "Seeking female tenant for one-bedroom apartment" D) "Great for families"

A) "Seeking male roommate" The only time a real estate ad may specify a preferred gender is when existing tenants are looking for a roommate.

Records must be available to Department of Licensing inspectors for how long? A) 3 years B) 5 years C) Forever D) 1 year

A) 3 years Records may be moved to a storage facility after one year but must be accessible to inspectors for three years.

Which of these is a possible solution to mutually incompatible uses located relatively near one another? A) A buffer zone B) A variance C) An abatement D) A nonconforming use

A) A buffer zone A buffer zone is intended to minimize the effects of the incompatible uses on one another.

Which of the following automatically terminates an offer? A) A counteroffer. B) Not including every minute detail in the offered terms. C) Failure of the offeree to acknowledge receipt of the offer. D) Refusing to put the offer into writing.

A) A counteroffer. An offer is terminated by the offeree making a counteroffer.

Which BEST describes a contingency without a deadline for satisfaction or waiver? A) A defective drafting B) A condition precedent C) An unsatisfied condition D) A breach of contract

A) A defective drafting When a contingency clause does not provide a deadline for satisfaction or waiver, it is a defective drafting.

A licensed real estate broker may only conduct property management activities under the approval and supervision of what? A) A designated or managing broker B) A licensed property manager C) The Washington Department of Licensing D) The landlord or property owner

A) A designated or managing broker A real estate broker may only conduct property management activity under the approval and supervision of a designated or managing broker.

Which of these is a lease with future rent increases determined in advance? A) A graduated lease B) A fixed net lease C) A percentage lease D) A flat lease

A) A graduated lease A graduated lease provides for rent increases at specific intervals in the future.

Which type of agreement allows a renter to improve vacant land, is given for an extended term, with the improvements belonging to the landlord at the end of the agreement? A) A ground lease B) A variable lease C) A conditional lease D) An improvement lease

A) A ground lease A ground lease is an agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner.

In a comprehensive plan, which of the following establishes general uses in categories including agriculture, housing, and commerce? A) A land use element B) A park and recreation element C) A capital facilities plan D) A utilities element

A) A land use element The land use element establishes the overall pattern of land categorization and use.

When can a licensee make or repeat false or misleading statements about another licensee? A) A licensee can never make misleading statements about another licensee. B) When the statement is made directly to a client or other member of the public. C) If the statement is made in writing. D) After the information is added to a blog discussing that licensee.

A) A licensee can never make misleading statements about another licensee.

Assuming the landlord is able to fix the problem, which of the following problems must a landlord fix within 24 hours of being notified? A) A loss of power B) A broken oven C) A cracked window D) A broken refrigerator

A) A loss of power Landlords have 72 hours to repair major plumbing fixtures and major kitchen appliances, but only 24 to provide heat, electricity, and hot and cold running water.

Which of these is a lease that requires fixed periodic payments and a portion of the lessee's gross income earned from the rental space? A) A percentage lease B) An indexed lease C) A graduated lease D) A variable lease

A) A percentage lease This is a frequent form in the retail context.

What is a waste clause? A) A prohibition against the tenant damaging the property B) Notice to the tenant that there is an onsite sewer system C) A requirement for the tenant to keep the property clean of debris D) A requirement for the tenant to subscribe to garbage and recycling services

A) A prohibition against the tenant damaging the property A waste clause is a provision against committing waste by destroying or damaging property to the extent that it decreases the property value. It will prohibit the tenant from committing waste during the term of the tenancy and will provide a mechanism for the owner to recover damages from the tenant for any waste committed.

In a comprehensive plan, which of the following addresses lands not designated for urban growth or other uses? A) A rural element B) A land use element C) A capital facilities plan D) A park and recreation element

A) A rural element The rural element must take into account growth management act goals and local circumstances.

If you wanted to lease the top of a building to display your billboard high into the sky, which type of lease would you probably use? A) A sky lease B) An air lease C) A holdover lease D) A commercial lease

A) A sky lease

If Madison transfers the remaining lease term to Taylor but continues to remain responsible for the lease payments if Taylor doesn't make them, what is this called? A) A sublease B) A ground lease C) An assignment D) A novation

A) A sublease Under a sublease, the original tenant transfers part of the leased property or party of the remaining term of the lease to a third party. The tenant, however, remains responsible to the landlord for the lease.

In a comprehensive plan, which of the following addresses the infrastructure for electrical service? A) A utilities element B) A land use element C) A capital facilities plan D) A rural element

A) A utilities element Utilities also include natural gas and telecommunications systems.

Which of these is not a requirement for an offer? A) Acceptable terms. B) Definite. C) Certain. D) Understandable.

A) Acceptable terms.

Which of these is not a requirement for an offer? A) Acceptable terms. B) Understandable. C) Definite. D) Certain.

A) Acceptable terms. The offer must be definite, certain, and clearly understandable, thereby creating a definite obligation.

When does a designated broker become responsible for funds and records that are required to be held by the real estate firm? A) After receiving them from a broker B) After the records are entered in the database C) As soon as they are recorded by a broker D) The designated broker is always responsible

A) After receiving them from a broker

Which of the following RESPA-required disclosures must occur at settlement or within 45 days of settlement? A) An Initial Escrow Statement B) The Settlement Costs Booklet C) A Closing Disclosure D) An Annual Escrow Settlement

A) An Initial Escrow Statement This statement itemizes the charges that will be paid by the mortgage's escrow account in the first year of the loan.

Naomi has been trying to sell her house on her own as a For Sale by Owner, but routinely asks her real estate broker friend, Sarah, for advice. Naomi eventually finds a buyer who expresses an interest in making an offer, so she asks Sarah to meet with her and the buyer. When Sarah arrives at the meeting, she introduces herself as Naomi's real estate agent. If Naomi does not object to this statement, what kind of agency relationship is created between Naomi and Sarah? A) An agency by estoppel B) An implied agency C) An express agency D) An agency by necessity

A) An agency by estoppel An owner can lead an agent to believe that the owner authorizes the agency and create an agency by estoppel. Similarly, an agent can lead the client to believe by their conduct that they represent the owner and also create an agency by estoppel.

Josephine, a real estate licensee, and Ralph, a seller, sign a listing agreement appointing Josephine as Ralph's real estate agent. Which type of agency did they create? A) Express B) Implied agency C) By necessity D) By ratification

A) Express An express agency relationship is created by the express consent of both the principal and agent.

What is the difference between an executory contract and an executed contract? A) An executed contract has been fully performed; an executory contract has not. B) An executed contract has been signed by all parties; an executory contract has not. C) An executory contract has been signed by all parties; an executed contract has not. D) An executory contract has been fully performed; an executed contract has not.

A) An executed contract has been fully performed; an executory contract has not. Another way to word the difference is that an executory contract is still "in process" in some way, while an executed contract has been finished.

Which of the following individuals can enter into a contract to buy real estate? A) An illiterate. B) A deceased person. C) An incompetent. D) A 17 year old who is unmarried and not emancipated.

A) An illiterate. Illiterate persons may enter into written contracts and be bound to those contracts. Usually, another person will read the contract to the illiterate person who will then execute the contract by making his/her "mark".

Taylor leases an apartment and sublets it to Madison. This is an example of: A) Assignment B) Novation C) Delegation D) Cancellation

A) Assignment Subletting is an example of assignment.

A zoning ordinance may NOT what? A) Be applied retroactively B) Address aesthetic concerns C) Have the effect of controlling population density D) Have the effect of preserving open space

A) Be applied retroactively Retroactive zoning is not permitted. A use that predates and does not conform to zoning regulations is known as a nonconforming use.

Which type of agency are you in if you are hired to help a client find a house to buy? A) Buyer agency B) Disclosed dual agency C) Seller agency D) Undisclosed dual agency

A) Buyer agency A buyer's agent is a licensee who exclusively represents a buyer.

Which fiduciary duty would include assisting the buyer in evaluating property conditions, values and neighborhoods? A) Care B) Disclosure C) Obedience D) Loyalty

A) Care If an agent represents a buyer, care and skill may include assisting the buyer in evaluation of the property as to condition, value and neighborhood.

Which fiduciary duty includes tracking and ensuring that deadlines are met? A) Care B) Loyalty C) Disclosure D) Obedience

A) Care If an agent represents a buyer, care and skill may include tracking and ensuring that transaction deadlines are met.

Francis has been working with Steven to help him purchase a new property of $300,000 or less. After explaining all of the details and procedures, Francis discussed what Steven wanted in a house, and then determined his needs. Having reached a conclusion, what is Francis' next step as the buyer's agent? A) Check his sources for properties that match Steven's needs B) Start preparing an offer to purchase a house C) Take Steven on a tour of nearby properties for sale D) Have an in-depth orientation meeting with Steven

A) Check his sources for properties that match Steven's needs After determining the needs of the buyer, generally through an orientation meeting, the next step is to find properties that suit the buyer's needs, filtering out properties that do not meet those needs. Thus, the next step for Francis would be to check his sources for properties that match Steven's needs.

Which of the following is ethical conduct for Realtors® regarding their relationships with other Realtors®? A) Checking to make sure a prospect is not in an existing agency relationship with another Realtor®. B) Soliciting the client of another licensee at a cocktail party C) Sharing ugly rumors about competitors in the name of protecting unsuspecting homeowners. D) Making a buyer client require a greater commission from the listing agent on your behalf as a contingency to purchase.

A) Checking to make sure a prospect is not in an existing agency relationship with another Realtor®. Prior to entering into an agency relationship with an individual seeking real estate services, a Realtor® must take affirmative steps to be assured that the individual is not currently subject to an existing agency relationship

This term means that a material fact was omitted from the contract to induce the other party to sign it. A) Concealment B) Menace C) Duress D) Misrepresentation

A) Concealment Failing to expose information that should be known by both parties to the contract would be considered concealment.

To conduct commercial real estate activity in Washington, an out-of-state licensee must first do what? A) Cooperate with an active Washington designated broker B) Obtain a Washington real estate license endorsement C) Take Washington-specific real estate courses D) Be physically present in Washington

A) Cooperate with an active Washington designated broker

Which of the following is NOT part of an addendum to the property manager's agreement? A) Disposition of management record B) Must be in writing C) Designated broker's signature D) The identifying code

A) Disposition of management record Any amendment or addendum to the property management agreement must be in writing and include the identifying code, the date of the amendment, the signature of the designated broker and the signatures of all owners who signed the initial property manager agreement.

Which BEST describes a voidable contract? A) Enforceable, but subject to rescission B) A nullity C) Invalid and cannot be enforced D) Illegal because all of the required elements are not present

A) Enforceable, but subject to rescission A voidable contract is one that is capable of being made void, wherein the injured party may either ratify the contract or cause it to be rescinded.

Which type of listing limits the seller to hiring one broker to sell the property, but does not guarantee that the broker will be paid a commission if the seller sells the property? A) Exclusive agency B) Net C) Open D) Exclusive right to sell

A) Exclusive agency With the exclusive agency listing, the seller gives one broker the right to sell the property. However, the broker is not entitled to the commission if the seller sells the property.

Which listing type is recommended by the National Association of REALTORS®? A) Exclusive right to sell B) Net C) Exclusive agency D) Open

A) Exclusive right to sell The exclusive right to sell listing is recommended by the National Association of REALTORS® and is the most common form of listing agreement used for residential real estate. It should be viewed as the most advantageous type of listing for both the broker and the seller.

Which of the following is definitely NOT the unauthorized practice of law when performed by a licensee? A) Filling in blanks in a preprinted contract at the direction of the seller or buyer B) Filling in blanks in a preprinted contract per the needs of the seller or buyer C) Drafting a contract D) Writing an addendum to define the consequences of a contract breach

A) Filling in blanks in a preprinted contract at the direction of the seller or buyer Business realities dictate that real estate licensees must be allowed to fill in forms. The key is that the licensee must do so at the direction of a party to the transaction.

Which lease is fixed at a certain rate and cannot be changed during the lease terms? A) Flat B) Graduated C) Unchangeable D) Indexed

A) Flat

Which kind of agent represents their principal in a particular business matter? A) General B) Universal C) Special D) Global

A) General A general agent represents a principal in a particular business or in a specified range of ongoing business matters.

Which of the following is not within the contractural definition of consideration? A) Harlow gives Cadence a $500 gift for graduating high school. B) Randy agrees to paint Bailey's shed if Bailey agrees to fix Randy's computer. C) Madison agrees to pay Sklylar $25 if Skylar agrees to mow Madison's lawn. D) Taylor promises to give a neighbor $100 if the neighbor agrees to stop playing the drums between 5pm and 7am.

A) Harlow gives Cadence a $500 gift for graduating high school.

What is the most professional way to turn down offers in a multiple-offer situation? A) Inform all buyers/buyers' agents that an offer has been accepted and send all buyers' agents documentation of their rejected offers B) Inform all buyers/buyers' agents that an offer has been accepted C) Refuse to present offers after an offer has been accepted D) Allow the offers to expire

A) Inform all buyers/buyers' agents that an offer has been accepted and send all buyers' agents documentation of their rejected offers Informing the agents as soon as possible shows professional courtesy, and the proper documentation allows the buyers' agents to show their clients that their offers were presented to the seller.

Which of these is NOT a factor indicating that a land-use law is Constitutionally valid? A) It does not reduce property values B) It is not discriminatory C) It benefits the public D) It is related to the protection of public health, safety, morals, or welfare

A) It does not reduce property values Land-use laws can and do affect property values. If a land-use law destroys a property's value, the owner must be compensated or the law is an unconstitutional "taking."

Which of the following items is NOT required on a summary statement provided for the property owner? A) Length of rental agreement B) Owner contributions C) Itemizations of expenses paid D) Total rent receipts

A) Length of rental agreement A summary statement will include the balance carried forward from previous summary statement, total rent receipts, owner contributions, other itemized receipts, itemization of all expenses paid, ending balance, and number of units rented or square footage if other than residential.

Frankie entered into a contract with a contractor including a clause that says: "Time Is of the Essence. The contractor acknowledges that failure to complete the project by the specified time will cause the owner to incur substantial economic harm. The contractor shall be liable to the owner for payment of damages in the amount of $500 for each day that the work extends beyond the specified completion date until completed." What kind of damages would the contractor have to pay on failing to complete the project in time? A) Liquidated B) Actual C) Punitive D) Nominal

A) Liquidated Liquidated damages are usually set forth in the contract to specify in advance the damages for breach.

Which fiduciary duty would cause an agent to place the interests of the principal ahead of all others? A) Loyalty B) Care C) Disclosure D) Obedience

A) Loyalty The duty of loyalty requires the agent to place the interests of the principal above all others, particularly the agent's own interests.

Which of these is a protected class under Washington law, but not federal law? A) Marital status B) Creed C) Handicap D) Familial status

A) Marital status Washington State Fair Housing Law protects against discrimination based on marital status. Localities such as Seattle and Tacoma provide protections for additional classes.

Which of the following is NOT among the records a designated broker must maintain on behalf of the firm? A) Mileage logs B) Reconciled bank statements C) A log of all contracts and agreements for brokerage services D) Duplicate deposit slips

A) Mileage logs Individual brokers may keep track of their mileage as a business expense but the firm is not required to keep these records.

In addition to the seven federally-protected classes, which of the following classes is protected under the Washington Law Against Discrimination? A) Military status B) Occupation C) Familial status D) Race

A) Military status Race and familial status are protected by the federal law.

What is commingling? A) Mixing personal funds with client funds B) The depositing and disbursement of funds C) A shared insurance fund D) Leaving earned fees in a clients' trust account briefly

A) Mixing personal funds with client funds Commingling is the mingling of personal funds with client funds. It is the "mixing together" of client and agent funds. It is illegal.

How often must client trust accounts be reconciled? A) Monthly B) Quarterly C) Bi-Monthly D) Weekly

A) Monthly A designated broker must reconcile each clients' trust account at least once a month and within 30 days after the bank statement.

Which of these guidelines should NOT be followed when the broker is making a referral? A) Negotiate your referral fee before making the referral B) Keep the client's needs foremost C) Disclose any conflicts of interest D) Refer only trustworthy individuals

A) Negotiate your referral fee before making the referral

Will makes an offer to Alex, who is 16, to purchase his used automobile for $5,000. Since Alex isn't sure he can afford it, he signs a contract agreeing to make payments over a period of time. Is this a valid and enforceable contract? A) No B) Yes

A) No No. A contract entered into by a minor for necessities, such as food, clothing, and shelter, is enforceable against that minor and is not voidable. However, a car is not considered a necessity.

Aaron hires Benny to mow his lawn every two weeks for the duration of the summer, agreeing to pay him $25 every time he mows the lawn. However, Benny does not start mowing the lawn until three summers later, since Aaron never stipulated a time for the work to begin. Is this a valid and enforceable contract? A) No B) Yes

A) No No. A party to a contract may be barred from asserting any rights under a contract if a party lets too much time pass before asserting their rights under the contract. This delay has the effect of discharging the other party to the contract from the obligation to perform.

Alejandro, who does not speak or read English, agrees through some interpretation to purchase Roman's used tires for his van. In the contract, Alejandro agrees to pay $3,000 for the used tires, although he thought that he was paying $300. Is this a valid and enforceable contract? A) No B) Yes

A) No No. Alejandro was led to believe that he only paid $300 for the tires, while what the document actually said was materially different. This is fraud in the execution on the part of Roman, and because Alejandro cannot read English and relied completely on someone else to interpret the contents of the contract, he has a legal defense.)

George and Damien sign a contract stating that George will pay Damien $3,000 and Damien will paint the interior of his house. The condition of the contract includes that Damien must finish the job within a month, while George's family is on vacation. However, George neglects to give Damien keys to the house before leaving. Is this a valid and enforceable contract? A) No B) Yes

A) No No. If one party to a contract prevents the other party from performing, the other party may be discharged from the contract.

Ahmed is moving and assigns his lease over to Bob. Ahmed's landlord agrees to accept the assignment, substitutes Bob as lessee, and releases Ahmed from all liability. This is an example of: A) Novation B) Breach C) An illegal act D) Delegation

A) Novation A novation occurs when a new party is substituted for either of the original parties to a contract. Novations usually occur in debtor/creditors contracts, such as mortgages, trust deeds, and land sale contracts and leases. In the typical novation, the creditor agrees to accept the new borrower and relieve the original debtor from the obligation. In essence, a new contract has been formed with the assignee, and the original contract is no longer enforceable as to the assignor.

An option to renew clause: A) Outlines the terms under which the tenant may renew the lease when it expires B) Creates an automatic extension of a lease term C) Does not require the tenant to notify the landlord D) Outlines the terms under which the landlord may renew the lease when it expires

A) Outlines the terms under which the tenant may renew the lease when it expires An option to renew clause is a clause in the original lease that sets out the terms under which the tenant can renew the lease at expiration. A landlord cannot hold a tenant to a lease past its expiration. This kind of clause often provides for renewal for a set time period, at undefined "fair market value."

RCW 18.235.130(4) and (10) requires a broker, in the exercising of their duty of reasonable care and skill, to refer matters outside of the broker's expertise to experts. Which two selections are considered "outside of the broker's expertise" as referenced in this RCW? Check all that apply ... A) Practice or operation of a business or profession beyond the scope of practice or operation as defined by law or rule B) Failure to adequately supervise or oversee auxiliary staff to the extent that consumers may be harmed or damaged C) The commission of any act involving moral turpitude, dishonesty, or corruption relating to the practice of the person's profession or operation of the person's business D) Incompetence, negligence, or malpractice that results in harm or damage to another or that creates an unreasonable risk of harm or damage to another

A) Practice or operation of a business or profession beyond the scope of practice or operation as defined by law or rule D) Incompetence, negligence, or malpractice that results in harm or damage to another or that creates an unreasonable risk of harm or damage to another RCW 18.235.130(4 and 10) further requires a broker, in the exercising of his or her duty of reasonable care and skill, to refer matters outside of the broker's expertise to experts. The following two sections of RCW 18.235.130, which are a basis for disciplinary action, require this: (4) Incompetence, negligence, or malpractice that results in harm or damage to another or that creates an unreasonable risk of harm or damage to another; (10) Practice or operation of a business or profession beyond the scope of practice or operation as defined by law or rule

Multiple offer situations can contain ethical pitfalls for brokers. Which of the following hypotheticals is permitted under Washington rules and the NAR ethics code? A) Present all offers according to a set formula, such as alphabetical order or the order the offers were received B) To get the best price for her client but unbeknownst to that client, a seller's broker tells a buyer's broker that other offers have been made on the property C) To get the best price for her client but unbeknownst to that client, a seller's broker tells a buyer's broker the terms of other offers that have been made on the property D) Anticipating that multiple offers are on the way but without any in hand, a seller's broker hints to a buyer's broker that the property is the subject of multiple offers

A) Present all offers according to a set formula, such as alphabetical order or the order the offers were received Orders and counteroffers must be presented to the client promptly and cannot be presented to the client in an order designed to sway the client's opinion, so using a formula is a safe way to comply. The other three choices are ethical violations.

An automobile manufacturer failed to correct a defective design when a safer alternative became available. Because of a failure in the old design, Skyler was injured in an automobile accident. In addition to any actual damages arising from the accident, such as medical bills and vehicle replacement costs, what kind of damages might a court award to Skyler? A) Punitive B) Liquidated C) Actual D) Nominal

A) Punitive Punitive damages are usually awarded when the conduct is bad, egregious, or unconscionable in some way that the court wants to craft a remedy designed to punish the offender.

Which of the following would NOT be an unfair practice under the Washington Law Against Discrimination? A) Requiring a disabled lessee to pay for reasonable modifications B) Attempting to reduce the amenities available to a lessee C) Discriminating in the course of negotiating services related to real estate D) Publishing an ad that indicates a limitation against a protected class

A) Requiring a disabled lessee to pay for reasonable modifications A landlord or their representative must permit reasonable modifications but does not have to pay for the modifications.

What is it called when a contract is voidable due to misrepresentation and the harmed party chooses to make the contract unenforceable? A) Rescission B) Remediation C) Ratification D) Restitution

A) Rescission Rescission makes a voidable contract unenforceable.

What are delegated responsibilities? A) Responsibilities that are transferred by agreement to another B) A designated broker's responsibilities under the real estate law C) A broker's responsibilities under the real estate law D) A managing broker's responsibilities under the real estate law

A) Responsibilities that are transferred by agreement to another A designated broker can transfer some, but not all, of his/her responsibilities to a managing broker. The managing broker must agree to accept the delegated responsibilities.

This term means that the landlord is not to interfere with the tenant's use of the rented property. A) Right to quiet enjoyment B) Personal guarantee C) Maintenance clause D) Hold harmless clause

A) Right to quiet enjoyment The right to quiet enjoyment is a promise that the tenant may use the property for the purposes for which it was rented without interference from the landlord.

Which term is used to indicate that the party has an affirmative duty to perform the balance of the contract? A) Ripening B) Excuse C) Lack of due diligence D) Waiver

A) Ripening When a condition has ripened, the party is bound to an affirmative duty to perform the balance of the contract.

What is a sale-leaseback? A) Selling a property and then leasing it back B) Transferring property rights which are returned after the lease has ended C) When a property is sold to free up needed capital D) An arrangement to lease a property before purchasing

A) Selling a property and then leasing it back

It is most appropriate to contact a client by bulk email when: A) Sharing general information such as a newsletter B) Telling a client about the time an inspection has been scheduled C) Alerting a client that an offer has been received D) Presenting an offer

A) Sharing general information such as a newsletter Email newsletters can be a good way to keep in touch with past clients.

What does "one click away" mean when it comes to internet advertising?? A) Should always have required information available by a single link B) Should not contain links that click away from required information C) Must lead to advertised listing within one mouse click D) Must lead to the licensee's website within one mouse click

A) Should always have required information available by a single link "One click away" means that the viewer of an advertisement on the internet - a banner ad, for instance, or a licensee's Facebook page - should be able to see all the information mandated by the Department of Licensing by clicking on a single link contained in that advertisement.

An unlicensed assistant may NOT legally perform the following: A) Show and answer questions regarding a property B) Order repairs and or maintenance on a property C) Gather public information from title companies D) Transport clients to properties

A) Show and answer questions regarding a property

One agency relationship is the most common type that exists in real estate brokerage. Which type of agent is it? A) Special B) General C) Universal D) Global

A) Special The special agent has limited and specific authority, usually to represent a principal in a single transaction. Most agency relationships created in the real estate business are of this type.

Which of the following is not required by the Truth in Lending Act? A) Standardized loan terms B) Rules and formulas for calculating costs C) Disclosure of all fees D) Disclosure of loan terms

A) Standardized loan terms The Truth in Lending Act requires disclosure of loan terms but the terms themselves will vary depending on, among other factors, the size of the loan, prevailing interest rates, and the creditworthiness of the borrower.

When advertising personally owned property for sale or lease, a licensee must include which of the following? A) Status as a licensee B) License number C) Firm's name or assumed name D) Name

A) Status as a licensee This is the only exception to the rule that ads must contain a firm name - real estate licensees advertising their personally owned real property must only disclose in the advertisement that the owner holds a real estate license.

What special status has been assigned to real estate agents who are independent contractors but subject to supervision? A) Statutory independent contractor B) Employee C) Exempt independent contractor D) Supervised independent contractor

A) Statutory independent contractor A real estate agent enjoys the special IRS status of statutory independent contractor to provide for the regulatory imposition of control mandated by the real estate agency of each state.

Which of the following is the practice of intentionally showing buyers properties in neighborhoods with residents of the same ethnic group as the buyers? A) Steering B) Redlining C) Blockbusting D) Discriminatory appraising

A) Steering Steering can be a subtle form of discrimination because the buyer may never realize that the agent is steering them only toward properties in particular neighborhoods. If a buyer asks a licensee to show only properties in neighborhoods the buyer prefers and identifies, that is not steering.

When a client asks for referrals, how should the real estate agent respond? A) Suggest two or three inspectors and let the client decide between them B) Recommend only their favorite inspector C) Offer no referrals and remind the client that it is against the law for an agent to offer referrals. D) Randomly pick an inspector from a list of inspectors found on the internet

A) Suggest two or three inspectors and let the client decide between them While the buyer's agent can recommend inspectors to the buyer, recommending multiple inspectors and allowing the buyer to choose can prevent the agent from being liable should the recommended inspector make a mistake.

Which type of lease continues for an indefinite period until terminated by either the landlord or tenant? A) Tenancy at will B) Periodic lease C) Holdover tenancy D) Estate for years

A) Tenancy at will With the consent of the landlord, a tenancy at will allows the tenant may possess the property for an indefinite period. Either party may terminate this agreement upon giving of proper notice.

Under a lease assignment: A) The assignee is responsible to the original lessor (landlord) B) The assignee is responsible to the original lessee (tenant) C) The landlord negotiates a new lease with the assignee D) The landlord negotiates the assignment with the assignee

A) The assignee is responsible to the original lessor (landlord) Although the landlord may have the power to approve the deal, an assignment is a transaction between a lessee and an assignee. An assignment is a full transfer of a person's rights under a contract, so assignment of a lease gives the assignee all of the rights the original lessee had. The lessee retains neither rights nor responsibilities under the lease.

When does an unsolicited call NOT violate the Do-Not-Call Act? A) The caller and the party being called have an established business relationship B) The call is placed during regular business hours C) The caller and the party being called have business contacts in common D) The number called is not on the telemarketer's Do-Not-Call list

A) The caller and the party being called have an established business relationship An established business relationship means that the consumer contacted the company regarding an offered product or service within the last three months, or the consumer did business with the company within the last 18 months.

"This sale subject to the verification by the buyer that the buyer's vehicle will comfortably fit into the garage." Which statement is FALSE? A) The condition regarding the vehicle may be waived by the seller. B) If the buyer's vehicle DOES fit in the garage, the duty to perform ripens into an affirmative obligation to perform. C) If the buyer's vehicle does NOT fit in the garage, the duty to perform does not ripen. D) The condition regarding the vehicle is inserted for the benefit of the buyer and is subject to the buyer's satisfaction.

A) The condition regarding the vehicle may be waived by the seller. A seller can't waive this buyer's contingency, as it is inserted for the benefit of the buyer. If the car does not fit in the garage, the contingency means the buyer is no longer required to move forward with the terms of the sale. If the car does indeed fit, then the contingency is satisfied and the buyer will be required to continue with the contract terms.

Who is responsible for the actions of a real estate agent working as an independent contractor? A) The designated broker B) The real estate agent C) The brokerage D) The supervising broker

A) The designated broker The designated broker is responsible for the acts or omissions of all licensees practicing real estate under his/her license. With respect to liability issues all licensees are treated as employee.

Under a ground lease, the tenant is leasing what? A) The land only; the improvements belong to the tenant B) The land only; the improvements belong to the lessor C) The right to access underground resources D) The land and the improvements; the improvements belong to the lessor

A) The land only; the improvements belong to the tenant A ground lease is a long-term lease of land. During the lease, the tenant's improvements belong to the tenant. At the end of the lease the tenant and landowner will negotiate to determine whether to continue the lease and if not, the improvements, including buildings, made by the tenant will revert to the landowner.

Which solution would a court apply to resolve a contingency dispute? A) The reasonable person standard B) The personal reasonableness standard C) To anticipate what will happen if the contingency isn't satisfied D) Negotiation

A) The reasonable person standard The reasonable person standard would be applied, unless the contingency had been written to include the personal fancy clause.

What is the right to quiet enjoyment? A) The right of a tenant to use the property without interference of possession B) The right of a tenant not to be disturbed by excessive noise C) The right of a tenant not to be disturbed by neighbors D) The right of a landlord to check on the property without interference of possession

A) The right of a tenant to use the property without interference of possession The right to quiet enjoyment is not the literal right to quiet, it is the right to undisturbed use. Whether it is an implicit or explicit lease term, it applies to acts of the landlord. Without some involvement on the part of the landlord, the landlord cannot be held responsible for third parties who disturb the tenant's right of quiet enjoyment.

Under a sublease: A) The sublessee is responsible to the original lessee (tenant) B) The landlord negotiates a new lease with the sublessee C) The sublessee is responsible to the original lessor (landlord) D) The landlord deals directly with the sublessee

A) The sublessee is responsible to the original lessee (tenant) A sublease is a lease given by a lessee. The sublessee is responsible to the original lessee, who in turns remains responsible to the original lessor.

Which of the following is true of security deposits? A) They are refundable B) They may not earn interest for the holder C) They are fees D) They warrant against ordinary wear

A) They are refundable Security deposits, like all charges characterized as deposits, are refundable. Fees are not refundable.

Which of the following reasons is NOT a reason why out-of-state escrow services should be avoided? A) They may be unfamiliar with the specifics of the property B) They may have no knowledge of state transfer laws C) This may jeopardize earnest money returns D) The buyer may be without remedies if problems arise

A) They may be unfamiliar with the specifics of the property Out-of-state escrow companies may have no knowledge of local real estate transfer laws, return of a buyer's earnest money may be in jeopardy if the buyer requests a return of earnest money, and the buyer may be without readily available remedies in the event that problems arise during the escrow process.

After the seller delivers their disclosure statement, the buyer may either accept or reject it. If the buyer rejects the statement, how many business days after delivery of the statement does the buyer have to give the written notice of their rejection? A) Three B) Five C) Ten D) Seven

A) Three The buyer may, within three business days from the receipt of the statement, either approve and accept the statement or give written notice of rescission of the sales agreement.

Which of the following is a broker's responsibility? A) To deliver transaction documents and brokerage service contracts to the proper party within two business days B) If delegated, ensuring that licensees deliver transaction documents and brokerage service contracts to the proper party within two business days C) Implementing, maintaining, and following written policies to address the supervision of licensees, contract review, and certain referrals D) Overseeing the activity within the branch offices, including hiring and supervising licensees

A) To deliver transaction documents and brokerage service contracts to the proper party within two business days Brokers must deliver these documents to the designated broker or the managing broker delegated by the designated broker.

Which fiduciary duty is violated if you write an offer for your buyer and write in the wrong address? A) To exercise reasonable skill and care B) To deal honestly and in good faith C) To disclose all material facts D) Accounting

A) To exercise reasonable skill and care This would be a failure to exercise reasonable skill and care, because the real estate agent should have made sure that the contract being signed was for the correct property.

Which duty would you violate if you let your seller sign an offer without telling them there is another offer? A) To present all written offers B) To account for all monies given to the agent C) To exercise reasonable skill and care D) To disclose all material facts

A) To present all written offers The duty to present all written offers requires that the agent do so in a timely matter.

Which responsibility does NOT belong to the seller's agent? A) To write the initial offer to purchase B) To market the property C) To complete a CMA to help establish the listed price D) To write a seller's counter offer

A) To write the initial offer to purchase The seller's agent does NOT write the offer to purchase for the buyer.

Owners ledgers, records of receipts, disbursements, tenant ledgers, and information or documents that are manipulated must be stored in a format that allows what to be done easily? A) Tracing and reconciling B) Producing required records C) Up-to-date recording D) Maintenance and backup

A) Tracing and reconciling The posting of owner ledgers, record of receipts and disbursements, tenant ledgers, and manipulation of information and documents must be maintained in a format that will readily enable tracing and reconciliation.

Besides the real estate law, the Department of Licensing may enforce the provisions of the what? A) Uniform Regulation of Business and Professions Act B) Municipal tax codes C) Washington Penal Code D) Washington Association of REALTORS®

A) Uniform Regulation of Business and Professions Act The Department of Licensing can sanction real estate licensees found to have violated this state law governing professional standards across a number of industries.

Which kind of agent represents the principal in all matters that can legally be delegated to a representative? A) Universal B) Special C) General D) Global

A) Universal A universal agent represents a principal in all matters that can legally be delegated to a representative.

Contract addenda can be a gray area for licensees. Under which of the following circumstances can a licensee feel most comfortable that he/she is NOT engaging in the unauthorized practice of law? A) When the terms of the addendum are normally addressed on standardized forms B) When the terms of the addendum are not normally addressed on standardized forms C) When explaining the terms of the addendum to the buyer or seller D) When the terms of the addendum were dictated by the buyer or seller

A) When the terms of the addendum are normally addressed on standardized forms A licensee should keep contract modifications as close to the standardized forms as possible to avoid the unauthorized practice of law.

Hillary, who is over 18 and of sound mind visits an electronics store to purchase a new laptop. The store has her sign a contract for the purchase, after which she pays for the laptop and leaves the store with it. Is this a valid and enforceable contract? A) Yes B) No

A) Yes Yes, this is a valid, enforceable contract.

Warren is hired to build a fence for Jeff, who signs a contract to pay him $2,000 in exchange for the service, so long as he does it in a timely manner. Warren has the fence built within a week. Is this a valid and enforceable contract? A) Yes B) No

A) Yes Yes, this is a valid, enforceable contract.

A minor change in an offer by the offeree is called A) a counter-offer. B) a novation. C) an acceptance. D) an option.

A) a counter-offer.

A dual agent must A) disclose the dual agency in writing and obtain the written consent of all parties to the transaction to the dual agency relationship. B) disclose all information to both parties, including a buyer's willingness to pay more for a property and/or a seller's willingness to sell for less than the listed price. C) disclose the dual agency to both parties after a purchase agreement has been reached between the parties. D) advise both parties that no fiduciary duties are owed to either party in a dual agency relationship.

A) disclose the dual agency in writing and obtain the written consent of all parties to the transaction to the dual agency relationship. Washington requires that an agency disclosure form be given to a buyer or seller as soon as practicable and at the time a contract is entered into, the parties must sign an agency confirmation statement acknowledging agreement to the declared agency relationships in the transaction. This statement is included in the deposit receipt.

Toya's company has been doing business with Sasha's company for years. Toya wants to be the sole reseller of Sasha's product and threatens to break Sasha's kneecaps if she doesn't get her way. Sasha is afraid that Toya will make good on her promise and signs the contract. Sasha has entered into this contract under A) duress. B) undue influence. C) fraud. D) menace.

A) duress.

A person holding a position of trust is known as a __________ A) fiduciary. B) acadian. C) joint tenant. D) licensee.

A) fiduciary. A fiduciary is a person holding a position of trust, with said position imposing a number of legal duties.

To make sure the condition does occur, the person benefiting from the contingency has the duty to ________________________ A) use reasonable due diligence. B) meet the reasonable performance standard. C) issue a waiver. D) apply a condition subsequent.

A) use reasonable due diligence. The party benefiting from the condition has a duty to use reasonable due diligence to see that the condition occurs.

Which of the following is an unacceptable form of payment to an unlicensed assistant? A) Monthly salary B) Commission C) Hourly rate D) Flat fee basis

B) Commission

A business plan should what? A) Cover at least 5 years B) Contain concrete goals and milestones C) Contain detailed information about available advertising platforms D) Be at least 10 pages long

B) Contain concrete goals and milestones

What method of dispute resolution is encouraged by the National Association of Realtors®? A) Litigation B) Arbitration and Mediation C) Conciliation D) Jury Trial

B) Arbitration and Mediation The purpose of the Code of Ethics, Article 17 is to require and encourage mediation and arbitration. Arbitration is an alternative dispute resolution method that typically involves less time and expense to reach a result than traditional litigation.

While touring a property, Colby is asked by her buyer if she knows anything about the rumor that the listing agent, Marcia Brown, is impossible to do business with. Colby has never had a transaction with Marcia, but has heard from those who have that she is arrogant and difficult to work with. Colby should tell her buyer: A) "I take the fifth." B) "I really don't know anything negative about Marcia as I've never had a transaction with her." C) "I really don't know anything specific but I do know she has a bad reputation for being difficult." D) "I have heard that Marcia is arrogant and difficult to work with."

B) "I really don't know anything negative about Marcia as I've never had a transaction with her." A licensee should never make or repeat false or misleading statements about any competitors' business or business practices.

Which of the following identifies a minimum amount of funds used to keep open a trust account? A) "Starting funds" B) "Opening account" C) "Item covered" D) "Opening funds"

B) "Opening account" The firm will maintain a minimum amount in the trust account to keep the account from being closed. These funds should be identified in the ledger as "opening account."

How much time does a licensee have to notify the Department of Licensing that a court delivered an order, verdict, or judgment against the licensee in a civil matter related to real estate or the licensee's business activity? A) 4 days B) 20 days C) As soon as possible D) 30 days

B) 20 days The Department must be notified within 20 days of the licensee being served or learning of the order, verdict, or judgment, whichever is first. The licensee must notify the Department even if he/she is appealing the decision.

How many years should brokers, designated brokers, and firms keep the records required by the Department of Licensing? A) 1 B) 3 C) 4 D) 10

B) 3 Required records should be maintained for at least three years after the close or other conclusion of a transaction. Remember that all licensees must maintain copies of trust account and escrow account records. Additionally, designated brokers and firms must keep copies of transaction records.

Which of the following statements is not true in the context of a multiple-offer scenario? A) A buyer may not always know that a property is the subject of multiple offers B) A buyer's offer cannot be considered confidential C) A buyer can ask for confidentiality before submitting an offer D) A buyer can revoke an offer at any time up until the seller accepts it

B) A buyer's offer cannot be considered confidential A buyer who wants his/her offer kept confidential must ask before presenting the offer. Without such an agreement, it is up to the seller whether to disclose offers to other buyers.

Which fiduciary duty prohibits an agent from serving in a negligent or incompetent manner? A) Disclosure B) Care C) Loyalty D) Obedience

B) Care The fiduciary duty of care means the agent is expected to have expertise and skill in real estate matters superior to that of the average person and is to use those skills of expertise to the advantage of the principal.

Which one of the following would be a violation of the National Association of REALTORS® Code of Ethics? A) A licensee included the name of the licensee's employing brokerage when advertising a home for sale. B) A licensee contacted the client of another licensee in an attempt to get the client to cancel his/her current listing and list with the licensee. C) A licensee disclosed his or her licensee status in a newspaper ad for a property for sale. D) A licensee included properties listed by another brokerage on a general mail flyer that advertises the services of the licensee's brokerage.

B) A licensee contacted the client of another licensee in an attempt to get the client to cancel his/her current listing and list with the licensee. A REALTOR® cannot contact the client of another licensee for the purpose of offering to provide the same real estate services currently being provided by that licensee. A REALTOR® can contact the client to offer non-related services, or to learn what the listing agreement expiration date is if the other licensee refuses to give it.

Which of the following transactions falls under RESPA? A) A temporary loan B) A loan to purchase a lot to immediately place a permanent mobile home C) A loan to purchase an apartment complex D) A sale of vacant land

B) A loan to purchase a lot to immediately place a permanent mobile home If a vacant lot sale will have a dwelling or mobile/manufactured within two years of consummation, the transaction falls under RESPA. The temporary loan, vacant land, and business/investment loan are exempt from RESPA.

If no schedule has been specifically authorized by the property owner, how long may funds be left in a clients' trust account before this could be considered commingling? A) 10 days B) A month C) 3 days D) A week

B) A month A designated broker can leave earned management fees in the clients' trust account for a brief period after they are earned, so long as these funds are withdrawn and transferred to the business operations account according to a schedule authorized by a property owner or monthly if no schedule exists.

Which of these is a lease that renews upon each rent payment, due at a specific interval? A) A holdover tenancy B) A periodic tenancy C) An at-will tenancy D) A lease for a definite period

B) A periodic tenancy The most common example of a periodic tenancy is the month-to-month lease.

A closing statement must include all of the following EXCEPT: A) The date of closing B) A record of the parties' counteroffers C) The total purchase price D) The date of adjustments

B) A record of the parties' counteroffers The closing statement includes the final and complete terms of the sale agreement.

Multiple offers are most common under what kind of market conditions? A) A high inventory market B) A sellers' market C) A buyers' market D) A falling market

B) A sellers' market Multiple offers are more likely in a rising market than a falling market, and in a low-inventory market versus a high-inventory market.

In general, dividing or redividing a tract of land in Washington into five or more lots or parcels is what? A) A short subdivision B) A subdivision C) Exempt from regulation D) Regulated by state agencies

B) A subdivision Though numerous exceptions exist, a subdivision is defined under state law as "the division or redivision of land into five or more lots, tracts, parcels, sites or divisions for the purpose of sale, lease, or transfer of ownership."

Of the following strategies for a seller to handle multiple offers, which would be most appropriate for a seller who receives multiple acceptable offers and would like to secure one or more? A) Accept or counter one offer and reject all other offers B) Accept or counter offer one offer while making the other offers wait for the outcome C) Inform all buyers that other offers exist and to deliver their "highest and best" offer D) Inform all buyers that there are multiple offers, all of which will be presented on a specific date and time

B) Accept or counter offer one offer while making the other offers wait for the outcome Countering one offer while rejecting the others is risky for the seller, because the buyer may not accept the counteroffer.

Kim is hired to build a deck for Allen's house. Kim completes the work but never gets paid by Allen. Kim would sue Allen for which type of damages? A) Punitive B) Actual C) Liquidated D) Nominal

B) Actual The purpose of actual damages is to place the injured party monetarily in the same position they would have been in had the contract been fully performed.

It is most appropriate to contact a client by phone when: A) Telling a client about the time an inspection has been scheduled B) Alerting a client that an offer has been received C) Presenting an offer D) Sharing general information such as a newsletter

B) Alerting a client that an offer has been received

Which of these is a tenancy for an indefinite period? A) A holdover tenancy B) An at-will tenancy C) A trespass D) A periodic tenancy

B) An at-will tenancy This type of tenancy is created with the agreement of tenant and landlord, and can be terminated by either with proper notice.

Which of the following items would be considered a material fact? A) A previous occupant had AIDS B) An easement through the middle of the property C) A previous occupant was murdered in the master bedroom D) The listing is fairly priced

B) An easement through the middle of the property Unless specifically excluded as material by law, a material fact is something that substantially adversely affects the value of the property or a party's ability to perform its obligations in a real estate transaction, or operates to materially impair or defeat the purpose of the transaction. Having an easement on the property would be considered a material fact.

Which type of contract is fully performed? A) An executory contract B) An executed contract C) A bilateral contract D) A real estate transaction

B) An executed contract A contract that has been fully performed is known as an executed contract. Once formed, and until terminated, a contract is known as executory.

What is a contract created by words? A) A bilateral contract B) An express contract C) An implied contract D) A unilateral contract

B) An express contract An express contract is one created deliberately, with terms expressed in words. It can be oral or written.

What is a contract created by actions? A) An express contract B) An implied contract C) A bilateral contract D) A unilateral contract

B) An implied contract An implied contract is created by the actions of the parties in the particular circumstance.

Which contract is used when the seller is financing the purchase for the buyer? A) Option contract B) Contract for deed C) Exclusive right to sell D) Purchase and sale agreement

B) Contract for deed A contract for deed creates a type of sale wherein the seller provides the underlying financing for the purchase. In other words, the seller in essence becomes the mortgagee.

Which of the following provisions may NOT be included on a residential rental agreement? A) Giving landlord right to access premises B) Excusing the landlord of legal liability C) Specifying the payment term D) Listing remedies for breach of agreement

B) Excusing the landlord of legal liability RCW 59.18.230 sets forth specific provisions prohibited from being included in a rental agreement, which include agreeing "to the exculpation or limitation of any liability of the landlord arising under law or to indemnify the landlord for that liability or the costs connected therewith"

If a seller enters into a listing agreement, they cannot fire their broker/firm A) True B) False

B) False A seller can fire their broker/firm but depending on the reason for the termination, they could be liable to the broker for damages.

This type of lease has rent increases designated at specific intervals in advance. A) Indexed B) Graduated C) Variable D) Gross

B) Graduated With a graduated lease, rent increases are provided for in advance.

When a court interprets a document, provisions are interpreted in the following order of precedence (from most controlling to least controlling): A) Preprinted clauses, handwritten changes, typed changes B) Handwritten changes, typed changes, preprinted clauses C) Typed changes, handwritten changes, preprinted clauses D) Preprinted clauses, typed changes, handwritten changes

B) Handwritten changes, typed changes, preprinted clauses Documents are interpreted in a way thought to give the most importance to the wishes of the parties, so changes made directly by the parties receive elevated importance: handwritten changes are prioritized over typed changes, and changes made by the parties are prioritized over preprinted forms.

Phil, as Jack's agent, has been searching through the database to locate properties matching Jack's specifications. Phil has located three to show Jack. After arranging for Jack to tour all three properties, what should Phil do next? A) Call each listing agent to see which seller will take less than asking price B) Help Jack evaluate the properties C) Prepare an offer to purchase for Jack D) Show Jack more properties

B) Help Jack evaluate the properties While Jack is in the property viewing phase, Phil should help him to re-evaluate his needs. After they've toured the properties, Phil can help Jack to make objective evaluations of the properties that they toured, considering the pros and cons and making comparisons between them.

What should a buyer and buyer's agent do when purchasing an REO property? A) Research the history of the property online B) Hire inspectors to investigate the property condition C) Make sure the deal closes as soon as possible D) Make sure that all legal requirements are met

B) Hire inspectors to investigate the property condition In the case of REO property, buyers and their agents should hire a home inspector and perhaps additional inspections to investigate issues not covered in the standard inspection report to ensure that a complete picture of the property's condition is obtained.

Taylor wants to buy a house but has no idea what kind of house. Taylor has budgeted up to $250,000 for the purchase and wants a nice backyard. Taylor hires Madison for representation and agrees to sign a buyer agency agreement. What should Madison do next to properly represent Taylor? A) Check for properties that match Taylor's needs B) Hold an orientation session with Taylor C) Tour nearby properties with nice backyards that are within Taylor's budget D) Assist Taylor in making objective evaluations of available properties

B) Hold an orientation session with Taylor After entering into a buyer's agency contract, the broker should hold an orientation session assess the buyer's needs and wants. Madison should schedule an orientation session with Taylor before showing any property.

You are scouting for properties your buyer might like when you come across a for-sale-by-owner. What is the first thing you should do when contacting the property's owner to learn more? A) Ask the seller why he chose to sell it himself instead of listing the property with a brokerage. B) Identify yourself as the agent representing a buyer who may be interested in the property. C) Hide the fact that you're a real estate agent to avoid intimidating the seller. D) Don't contact the seller because a for-sale-by-owner requires too much paperwork.

B) Identify yourself as the agent representing a buyer who may be interested in the property. On unlisted properties, an agent must disclose their status as a buyer's agent to the seller at first contact and disclose that relationship in writing no later than the execution of any purchase and sale agreement.

Which of the following is a managing broker's responsibility? A) To deliver transaction documents and brokerage service contracts to the proper party within two business days B) If delegated, ensuring that licensees deliver transaction documents and brokerage service contracts to the proper party within two business days C) Implementing, maintaining, and following written policies to address the supervision of licensees, contract review, and certain referrals D) Overseeing the activity within the branch offices, including hiring and supervising licensees

B) If delegated, ensuring that licensees deliver transaction documents and brokerage service contracts to the proper party within two business days A managing broker's responsibilities are the same as a broker's unless more responsibilities are delegated to the managing broker.

Which of the following is a designated broker's responsibility? A) Overseeing the activity within the branch offices, including hiring and supervising licensees B) Implementing, maintaining, and following written policies to address the supervision of licensees, contract review, and certain referrals C) To deliver transaction documents and brokerage service contracts to the proper party within two business days D) If delegated, ensuring that licensees deliver transaction documents and brokerage service contracts to the proper party within two business days

B) Implementing, maintaining, and following written policies to address the supervision of licensees, contract review, and certain referrals Development of these policies is one of the responsibilities that a designated broker may not delegate.

An unlicensed assistant may NOT legally perform which of the following tasks? A) Assemble paperwork for closings B) Negotiate with clients and customers C) Follow up on completion of contingency requirements D) Install signs and lock boxes on listed property

B) Negotiate with clients and customers

Olivia is holding an open house at one of her listings and meets Fred, a possible buyer. The next day, Fred calls Olivia for more details about the property but Olivia forgets to explain that she is exclusively representing the seller and that her agency responsibility is to the seller. What kind of agency relationship did Olivia create with Fred? A) By necessity B) Implied C) Express D) By ratification

B) Implied An implied agency is sometimes also referred to as an unintentional agency or accidental agency. Very often these accidental agencies may also be in conflict with another agency relationship in which the agent is already involved.

Of the following strategies for a seller to handle multiple offers, which would be most appropriate for a seller who is not satisfied with the offers so far but is willing to make a quick decision? A) Counter offer one offer and reject all other offers B) Inform all buyers that other offers exist and to deliver their "highest and best" offer C) Counter offer one offer while making the other offers wait for the outcome D) Inform all buyers that there are multiple offers, all of which will be presented on a specific date and time

B) Inform all buyers that other offers exist and to deliver their "highest and best" offer The "highest and best" strategy gives buyers only one chance to compete against the other offers, so determined buyers may raise their offer price.

What is the function of an assumed name license? A) It outlines the terms under which a firm is incorporated B) It allows the holder to use the assumed name by itself in advertising C) It allows the holder to use the assumed name along with the firm name in advertising D) It allows the holder to act as an entity separate from the firm

B) It allows the holder to use the assumed name by itself in advertising A license allows a licensee to advertise under the assumed name without including the firm name, if desired. A licensee can advertise without an assumed name license if, among other requirements, the ad contains the firm's licensed or assumed name.

Because REO sellers are often located in different states from the REO properties that they are selling, this often creates what problem? A) No legal description of the REO property B) Lack of knowledge of state transaction requirements C) Properties being sold as quickly and cheaply as possible D) Little cooperation between REO sellers and brokers

B) Lack of knowledge of state transaction requirements Many REO asset departments are often located in different states than their REO properties, resulting in a lack of knowledge of local disclosure laws or other transaction requirements specific to that state.

Actual eviction is also known as A) Constructive eviction B) Legal eviction C) Illegal eviction D) Forcible eviction

B) Legal eviction Eviction is allowed only by the legal process of actual eviction. Actual eviction is carried out by obtaining a forcible entry and detainer action. Constructive eviction, making the property so unusable to the tenant that the tenant is forced to leave, is illegal.

A landlord would seek a personal guarantee for assurance as to what? A) An applicant's adequate income B) Legal recourse if a corporate tenant breaches the lease C) Legal recourse if a residential tenant breaches the lease D) An applicant's rental history

B) Legal recourse if a corporate tenant breaches the lease A personal guarantee essentially gives a landlord someone to sue in case a corporation or other legal entity breaches a lease and goes bankrupt. If the landlord is owed back rent or damages that cannot be recovered from the business entity, a personal guarantee allows the landlord to recover personally from the officers or shareholders who made the guarantee.

When is it permissible to make or repeat a false statement about another licensee in order to gain an advantage over him or her? A) On a personal real estate website. B) Licensees may never make or repeat false or misleading statements about another licensee. C) While attending a NAR convention. D) In a general announcement advertisement sent to neighborhood homeowners.

B) Licensees may never make or repeat false or misleading statements about another licensee.

A broker operating or considering operating under a team concept should consider all of the following EXCEPT: A) The proper roles and tasks of licensed and unlicensed team members B) Licensing requirements for the team itself C) Disclosure of relationships with closing service providers D) Using firm and team names correctly in advertising materials

B) Licensing requirements for the team itself Teams are an important structure in some brokerage firms but are not licensed as teams by the Department of Licensing. Instead, teams are treated as assumed names, whether or not the team name is licensed as an assumed name.

If an agent has a 7.2% interest in a property that is for sale, which fiduciary duty would require that they disclose this to the principal? A) Disclosure B) Loyalty C) Obedience D) Care

B) Loyalty The duty of loyalty requires an agent to disclose an ownership interest of 5% or more in a property for sale.

When a computerized system is used to store property management records, how frequently must the data be backed up? A) Quarterly B) Monthly C) Daily D) Weekly

B) Monthly The property manager must back up any data that is stored in the computerized system at least once every month.

Which of the following is exempt from the Truth in Lending Act? A) Most residential mortgages B) Most seller financing C) Personal loans secured by real property D) Personal loans greater than $25,000

B) Most seller financing The Truth in Lending Act applies to personal loans greater than $25,000 and personal loans secured by real property, which means it applies to all owner-occupied residential mortgages.

Which requirement must be met by a broker who supervises or controls other brokers? A) Must be authorized by the designated broker B) Must hold a managing broker's license C) Must have completed approved management courses D) Cannot hold an active contractor's license

B) Must hold a managing broker's license

Which of these is a difference between a real estate agent working as an employee or an independent contractor? The independent contractor: A) Must be supervised B) Must pay taxes, expenses, insurance C) Has less control over work methods D) Must be authorized to act

B) Must pay taxes, expenses, insurance As an independent contractor, the licensee will be responsible for his or her own taxes, expenses, insurance and possibly advertising.

An unlicensed assistant may NOT legally perform the following: A) Schedule appointments to show listings B) Negotiate prices and terms C) Deliver documents D) Gather information for a CMA

B) Negotiate prices and terms

Which of these must be supervised to a heightened degree? A) Home inspectors B) Newer brokers C) Managing brokers D) Designated brokers

B) Newer brokers Newer brokers - those with less than two years of experience - must be supervised more closely than more experienced brokers.

Jared makes a deal with Phil to purchase a specified amount of illegal drugs. The deal is done in writing, with specific "illegal" references left out, and both parties sign the contract. Is this a valid and enforceable contract? A) Yes B) No

B) No No. As a matter of public policy, contracts, the object of which are illegal or against public policy, are void on their face.

Chris and Fred are both visiting at a bar. They are discussing the sale of Fred's automobile to Chris. After several drinks, Chris signs a contract to pay Fred $17,000 for his car. Is this a valid and enforceable contract? A) Yes B) No

B) No No. If the person is mentally unfit at the time the contract is entered into, such as under the influence of drugs or alcohol, but has not been determined to be unfit by a court prior to entering into the contract, the contract may be voidable.

Can a buyer expect that the terms of his/her offer are confidential? A) Yes, because otherwise the seller could use the information to drive up other offers B) No, because the seller is allowed to disclose the details of offers C) No, because the seller must disclose the details of offers to other buyers D) Yes, because the offer is made to the seller only

B) No, because the seller is allowed to disclose the details of offers A buyer can expect confidentiality only if a seller has agreed to confidentiality before the offer is presented.

If a broker employed by a firm quits the firm, what must the designated broker do? A) Keep the inactive license until it is requested B) Notify the Director and return the license C) File a written statement of the facts with the Director D) Return the license to the broker

B) Notify the Director and return the license

The Real Estate Settlement Procedures Act applies to all federally related loans secured with a mortgage for what kinds of properties? A) All mortgaged properties B) One-to-four unit residential properties C) Only multifamily residential properties D) All residential properties

B) One-to-four unit residential properties RESPA is a consumer protection law that applies to residential properties with up to four units.

Which contract reserves the right to purchase a certain property at a specific price for a fixed period? A) Contract for deed B) Option C) Exclusive right to sell D) Net period listing

B) Option An option contract gives the buyer the right to purchase a specified property at a specified price and for a fixed period.

Which tenancy is renewed at regular intervals? A) Estate for years B) Periodic lease C) Holdover tenancy D) Tenancy at will

B) Periodic lease The periodic lease has no specific expiration date. The rent is paid in definite intervals, such as monthly, and is renewed when the tenant pays the rent and it is accepted by the landlord.

If someone approves an act that has already been done in their name and on their behalf by another person a type of agency is created. This type agency is created by which of the following? A) Implied agreement B) Ratification C) Express agreement D) Estoppel

B) Ratification An agency by ratification is created by a party agreeing to the unauthorized actions of another after the unauthorized actions already occurred.

Which of the following is the refusal of a loan or insurance applicant for reasons other than the applicant's qualifications? A) Blockbusting B) Redlining C) Steering D) Discriminatory appraising

B) Redlining Redlining is based on the population characteristics of a neighborhood or geographic area - visualize actual red lines drawn on a map.

In a contract for deed, which benefit applies to the vendor? A) Enjoys possession and title to the property. B) Retains naked title to the property until the contract is paid. C) Has possession but not title to the property. D) Has equitable title in the property until the contract is paid.

B) Retains naked title to the property until the contract is paid. The vendor (seller) in a contract for deed (seller-financed transaction) releases most of the bundle of sticks to the buyer (vendee) but retains what is known as naked title until the buyer has paid the seller the full contract price.

Armani and Frankie have accepted an offer to purchase their house. Armani will be in Italy at the time of the closing, but wants to authorize Frankie to sign the closing papers. Which document should Armani use? A) General Power of Attorney B) Special Power of Attorney C) Counter-offer D) Addendum

B) Special Power of Attorney A special power of attorney appoints a party (known as an attorney in fact) as an agent to perform any authorized actions pertaining to a particular event or transaction.

Interest from trust accounts held by the firm are payable to which of the following? A) The collecting firm's managing broker B) State Treasurer's Washington Housing Fund C) The Director's Investigatory Fund D) The buyer or seller

B) State Treasurer's Washington Housing Fund The interest income from this account will be paid to the state treasurer's Washington housing fund.

Which entity enforces and administers Washington state real estate law? A) The Attorney General B) The Department of Licensing C) The Real Estate Commission D) The Washington Association of REALTORS®

B) The Department of Licensing The State of Washington Department of Licensing has the responsibility of administering and enforcing the real estate law. The Real Estate Commission is a body that advises the Department of Licensing. The state attorney general would only be involved in certain violations of real estate law, such as suits brought by the state for violations of the Consumer Protection Act. The Washington Association of REALTORS® is a professional entity, not an agent of the state capable of enforcing state laws.

Which of these is not an element of fraudulent concealment in the context of residential real estate? A) The defect is unknown to the buyer B) The defect was concealed by the seller C) A dwelling has a concealed defect D) The defect would not be disclosed by a careful, reasonable inspection by the buyer

B) The defect was concealed by the seller The other elements of fraudulent concealment are that the seller has knowledge of the defect and that the defect presents a danger to the property, life, or health of the buyer. The seller has to know about the defect but does not have to have been the one who concealed it.

Who is responsible for depositing and disbursing trust funds? A) The transaction broker B) The designated broker C) The managing broker D) The escrow agent

B) The designated broker The designated broker is responsible for the depositing, holding, disbursing, and accounting for trust funds.

Who is responsible for the property management activities conducted under their supervision? A) The property manager B) The designated or managing broker C) The landlord or property owner D) The Washington Department of Licensing

B) The designated or managing broker A managing broker or designated broker is responsible for property management activities conducted by brokers under their supervision and control.

Why can there be no such thing as an implied contract for the sale of real estate? A) Real estate contracts are based on offers B) The law requires real estate contracts to be in writing C) An implied contract can be uncertain D) Both sides of a real estate transaction must make promises to each other

B) The law requires real estate contracts to be in writing An implied contract would never be written, and real estate contracts must be in writing. Under a law called the Statute of Frauds, contracts for the sale of real estate and leases of one year or more must be writing to be enforceable.

Which of these is not a factor in determining whether a property's mortgage loan is "federally related?" A) A loan is guaranteed by a federal agency B) The loan payment schedule includes mortgage insurance payments C) A loan is secured by a lien on real estate D) Any of a loan's proceeds are used to finance the purchase by the borrower

B) The loan payment schedule includes mortgage insurance payments Mortgage insurance does not factor in the determination of a federally related loan.

Unlike a firm, a broker can advertise using an assumed name, title, or brand without obtaining an assumed name license. All of the following rules apply EXCEPT: A) The name, title, or brand may not include a term that indicates a separate legal entity. B) The name, title, or brand must include a term that indicates a separate legal entity. C) The licensee must have advance written permission to use the name, title, or brand from the firm's designated broker. D) The ad must also use the firm's licensed name.

B) The name, title, or brand must include a term that indicates a separate legal entity. This includes terms that indicate corporate status such as "Inc.," "Corp.," "LLC," and "LLP."

A hold harmless clause requires what? A) The landlord to refrain from holding the tenant liable for injury to people or property not caused by the tenant's negligence. B) The tenant to refrain from holding the landlord liable for injury to people or property not caused by the landlord's negligence. C) The tenant to refrain from holding the landlord liable for injury to people or property caused by the landlord's negligence. D) The landlord to refrain from holding the tenant liable for injury to people or property caused by the tenant's negligence.

B) The tenant to refrain from holding the landlord liable for injury to people or property not caused by the landlord's negligence. A hold harmless clause releases the landlord from liability for injury to people or property, as long as the injury was not caused by the landlord's negligence - the failure to act with ordinary care.

Regarding unsolicited faxes, all of the following are true under the Junk Fax Prevention Act EXCEPT: A) The sender must have an established business relationship with the recipient B) They can an be avoided by placing the fax number on the Do-Not-Call list C) They must include a free opt-out method D) They may be sent with express permission from the recipient

B) They can an be avoided by placing the fax number on the Do-Not-Call list Completely unsolicited faxes are not allowed under the Junk Fax Prevention Act, regardless of whether the number is on a do-not-call list.

Why would a property owner enter into a sale-leaseback arrangement? A) To buy a property and lease it to another party B) To obtain capital while retaining possession of the property C) To sell a property D) To lease a property

B) To obtain capital while retaining possession of the property In a sale-leaseback, a property owner sells a property to an investor but immediately leases it from the investor. The property owner can use the proceeds of the sale to fund business opportunities without giving up the property entirely.

Trust funds can be used for only very specific purposes. Of the following, which can be paid by trust funds? A) Bank services B) Transaction disbursements C) Commissions for firm employees D) Business expenses

B) Transaction disbursements Disbursements can me made from the trust accounts so long as they pertain to the transaction and are not in excess of the amount held in the trust account. Any bank fees or services associated with the account are considered business overhead for the real estate firm.

A contract having no force or effect in law is what? A) Voidable B) Void C) Valid D) Implied

B) Void A contract that lacks an essential element is void and unenforceable.

Under Washington law, if a deed contains a discriminatory provision, is it valid or void? A) Valid if the deed predates antidiscrimination laws B) Void C) Valid if the provision deals with classes other than race D) Void if the deed predates antidiscrimination laws

B) Void A section of the Washington law against discrimination declares void any discriminatory provision in a written instrument relating to real property. The provision extends to all classes protected under state law.

Which governmental units are required to adopt long-term comprehensive plans? A) U.S. cities and counties B) Washington cities and counties C) Washington cities D) Washington counties

B) Washington cities and counties Cities and counties are required to adopt plans by the state Growth Management Act of 1990.

Which of the following is not related to whether an advertising term is clear and conspicuous? A) The font size used B) Whether an ad contains audio C) If the audio portion of an ad can be heard D) Whether the background color contrasts with the color of the ad copy

B) Whether an ad contains audio Clear and conspicuous means that every term must be presented in a manner so as to be readily noticed and understood. Whether an ad contains audio, then, does not matter. If an ad does contain audio, though, the audio must be clearly audible.

When can rent be increased under a month-to-month lease? A) When a tenant fails to pay on time B) With 30 days notice C) When the tenant fails to pay a late fee D) During the term of a lease

B) With 30 days notice A landlord cannot impose a rent increase without proper notice, and cannot raise the rent or change any other terms of the lease during a lease for a specified term.

Rescission applies to A) a void contract. B) a voidable contract. C) a voided contract. D) a valid contract.

B) a voidable contract. Voidable contracts exist with an imperfection that can, if one party so desires, make the contract rescindable (rendered void) with no adverse legal effect.

Steve is moving to a different city for a new job and hires George as his property manager to find a tenant for his vacated home. The day Steve leaves town, a big storm rolls through the neighborhood and rips off the roof to a five-foot section of the house. Meanwhile, on his way to his new city, Steve gets in an automobile accident and needs to spend a few days in the Intensive Care Unit at a rural hospital. After two days, George is still unable to find Steve, so he goes ahead and orders the roof repaired to avoid further damage to the home. George's action is BEST described as A) agency by ratification B) agency by necessity C) agency by estoppel D) being a nice guy

B) agency by necessity An agency by necessity is created in an emergency when the circumstances prevent one from obtaining the consent of the principal to act. An agent, in an emergency, can even disobey the limit of authority given by the principal, when the emergency, if not handled under expanded agency authority, would harm the principal.

What is a trust fund best defined as A) good faith or earnest money deposits B) anything of value to be held for a client C) money given to a broker for safekeeping D) donations to be given to a charitable trust

B) anything of value to be held for a client Trust funds, simply defined, are anything of value given to a licensee to hold on behalf of another or until a certain event occurs.

The failure of one party to perform a duty under the terms of a contract is known as A) dissolution of contract. B) breach of contract. C) constructive fraud. D) negligence.

B) breach of contract. Failure to perform a contract term is known as a breach of the contract.

When both parties relied on a mistake in the contract, it is called a A) misrepresentation. B) mutual mistake. C) duress. D) undue influence.

B) mutual mistake. A mistake of material fact by both parties is known as a mutual mistake. A mutual mistake of fact may make a contract voidable.

A contract could be declared void if signed by A) someone who is convicted of a felony after signing the contract. B) someone who didn't know that they were entering into a contract. C) an authorized corporate officer of a corporation that didn't exist until 48 hours before signing the contract. D) a minor and the contract is for necessities.

B) someone who didn't know that they were entering into a contract. The law states that a party is incompetent if they were unaware that a contract was being entered into, thus making the contract void due to lack of mental capacity.

What is a landlord's responsibility when a tenant moves out before the termination of his/her lease? A) Leave the unit vacant in order to charge the tenant the full rent due under the lease B) Leave the unit vacant in case the tenant returns during the lease period C) Attempt to rent the unit to a new tenant D) Rent the unit to a new tenant

C) Attempt to rent the unit to a new tenant A landlord must make a good-faith effort to rent the unit to a new tenants to mitigate the landlord's damages resulting from the original tenant's breach.

Discriminating in providing brokerage services is not a violation of A) License Law B) Washington Fair Housing Law C) Brokerage Relationships Law D) Federal Fair Housing Law

C) Brokerage Relationships Law Discriminating against a member of a protected class violates state and federal law as well as licensing law, exposing a licensee to legal and administrative penalties.

What is the maximum fine for a first-time violation of the Washington Law Against Discrimination? A) $1,000 B) $5,000 C) $10,000 D) $25,000

C) $10,000 This is the maximum civil penalty for a first-time violation. For the second offense within five years, the maximum rises to $25,000.

A landlord is converting her apartment building into condominiums. How much notice must she give to her month-to-month tenants? A) 90 days B) 20 days C) 120 days D) 30 days

C) 120 days Converting a building's rental units to condos is one of the situations that requires a landlord to give periodic tenants additional notice.

What is the usual acceptable notice in a month-to-month tenancy? A) 20 days for notice from the landlord, thirty days for notice from the tenant B) 20 days for notice from the tenant, thirty days for notice from the landlord C) 20 days for notice from tenant or landlord D) 30 days for notice from tenant or landlord

C) 20 days for notice from tenant or landlord Periodic tenancies such as month to month tenancies automatically renew unless the landlord or the tenant give notice.

How long does a landlord have to refund a tenant's deposit? A) 14 days from the tenant's written request B) 14 days from the day the tenant moves out C) 21 days from the day the tenant moves out D) 21 days from the tenant's written request

C) 21 days from the day the tenant moves out If the landlord intends to keep some or all of the tenant's deposit, the tenant must be notified in writing within the same 21-day period.

The Truth in Lending Act requires that a consumer have how long to rescind a credit transaction that involves a security interest in the consumer's primary residence? A) 5 business days B) until midnight of the following day C) 3 business days D) 7 calendar days

C) 3 business days The three-day period begins at the consummation of the transaction, when the truth in lending disclosure statement is delivered to the buyer, or when the statement of the right to rescind is delivered to the buyer, whichever happens last.

How long must required records be maintained after the consummation of the real estate transaction? A) 7 years B) 1 year C) 3 years D) 5 years

C) 3 years A designated broker must maintain all required records within the State of Washington at the licensed location of the firm for a period of 3 years after consummation of a real estate transaction.

What is a contract that is enforceable by all parties? A) An express contract B) A unilateral contract C) A bilateral contract D) An implied contract

C) A bilateral contract Because bilateral contracts involve promises on both sides, either party can enforce the contract against the other.

Once a condition occurs and performance of the contract becomes an affirmative duty, if the buyer does not perform, what will occur? A) A contract term based on prior case law B) The waiver of the condition C) A breach of contract D) A condition precedent

C) A breach of contract If the buyer does not perform the affirmative duty, there is a breach of contract.

What is the Washington rule regarding the vicarious liability of a broker and firm for the conduct (acts, omissions, or errors) of a subagent? A) Under the theory of respondeat superior, a broker and firm are liable for the conduct of a subagent if they had reason to know of the conduct B) Under the theory of respondeat superior, both broker and firm are liable for the conduct of a subagent C) A broker is not liable for the conduct of a subagent unless the broker participated in or authorized the conduct; a firm may still be liable D) Neither broker nor firm is liable for the conduct of a subagent unless the broker or firm participated in or authorized the conduct

C) A broker is not liable for the conduct of a subagent unless the broker participated in or authorized the conduct; a firm may still be liable Under the traditional tort theory of respondeat superior, both broker and firm are liable for the conduct of a subagent even if the broker did not actually authorize or even know of the conduct. Washington rejects this view for real estate licensees, making a broker liable only for conduct that the broker authorized or participated in, and for only the facts actually known to the broker. The rule does not limit the liability of a firm for the conduct of a broker licensed to the firm.

Which of these is a lease of property used for business purposes? A) A residential lease B) A variable lease C) A commercial lease D) A gross lease

C) A commercial lease Commercial leases are not governed by state landlord-tenant law.

Which of the following individuals can enter into a contract to buy real estate? A) A 17 year old male who is unmarried and not emancipated. B) Someone who can't be identified and has no verifiable existence. C) A convicted felon serving time in the penitentiary. D) Someone who just had four martinis and is under the influence of alcohol.

C) A convicted felon serving time in the penitentiary. Felons are permitted in to grant powers of attorney, make wills, and enter into contracts to buy or sell property.

Which of the following would NOT constitute a constructive eviction? A) Changing the locks on a property B) Holding a tenant's personal property pending payment of rent C) A court order and sheriff's action D) Cutting utilities to a property at the termination of a lease

C) A court order and sheriff's action In Washington, a court action is the only way to legally evict a tenant.

To violate the Washington Consumer Protection Act, wrongful conduct must include five elements. Which of these methods, acts or practices is not an element of a violation? A) Causing or having the capacity to cause injury B) Occuring in trade in commerce C) Being intentionally deceptive D) Impacting the public interest

C) Being intentionally deceptive An act or practice does not have to be intentionally deceptive, but must be unfair or deceptive in practice.

What is a stipulation? A) A disciplinary finding and action imposed by the Department of Licensing B) A condition to a disciplinary order C) A disciplinary finding and action agreed upon by the licensee and the Department of Licensing D) An official reprimand

C) A disciplinary finding and action agreed upon by the licensee and the Department of Licensing A stipulation is somewhat like a plea bargain in criminal court. The licensee foregoes a hearing and agrees to accept the Department's finding that the licensee engaged in unprofessional conduct, or at least agrees that the evidence is sufficient to justify such a finding.

What is the maximum penalty for violation of the lead-based paint disclosure law? A) A fine, and five times the damages sustained B) A fine, at least five years in prison, and trebel damages C) A fine, plus one year in prison, and up to three times the damages sustained D) A fine, and real estate license revocation

C) A fine, plus one year in prison, and up to three times the damages sustained Those who intentionally either ignore or violate the law can face up to one year imprisonment or a fine of up to a $18,364, or both. The injured party (buyer or tenant) is also able to pursue relief under the federal statute for failure to disclose a hazardous condition, and may receive up to three times the damages sustained.

If you are a real estate broker and list someone's house and waive compensation, which type of agent best describes you? A) A special agent B) A duty-free agent C) A gratuitous agent D) A dual agent

C) A gratuitous agent A gratuitous agent is one who acts as an agent for another without compensation.

Which of these is the most common type of lease used for residential property? A) An indexed lease B) A variable lease C) A gross lease D) A periodic lease

C) A gross lease A gross lease is the most common form of lease in residential real estate. In a gross lease, the tenant pays a fixed amount each rental period and the landlord pays the expenses associated with owning the property such as property taxes.

Which of these is a lease that requires a tenant to vacate at the end of the lease, with no notice required? A) A periodic tenancy B) A holdover tenancy C) A lease for a definite period D) An at-will tenancy

C) A lease for a definite period Most commercial leases are leases for a definite period. The leasehold interest does not terminate if a landlord or tenant dies during the definite period.

What is a preliminary plat? A) Blueprints for the buildings in a planned subdivision, submitted by a developer to state planning authorities B) A map of a planned subdivision, submitted by a developer to state planning authorities C) A map of a planned subdivision, submitted by a developer to local planning authorities D) Blueprints for the buildings in a planned subdivision, submitted by a developer to local planning authorities

C) A map of a planned subdivision, submitted by a developer to local planning authorities A preliminary plat is the initial map showing a developer's overall plan for a subdivision. It is submitted to local authorities - the planning agency, or a unit of municipal or county government - for review and approval.

What kind of account must be maintained by the firm for depositing trust funds when a broker receives trust funds for a real estate transaction? A) A certificate of deposit account B) A money market deposit account C) A pooled interest-bearing account D) An interest-bearing checking account

C) A pooled interest-bearing account If a broker receives trust funds, the firm must maintain a pooled interest-bearing account for depositing client funds, except for property management trust accounts.

Which of these contracts can be enforced by specific performance? A) A listing agreement B) A broker employment agreement C) A real estate sale agreement D) A property management agreement

C) A real estate sale agreement Personal service contracts cannot be enforced by specific performance, so only the real estate sale agreement, which is an agreement to sell property between a buyer and seller could be enforced because there is no personal service involved.

Which duty is violated when a broker fails to keep accurate records of all money and property involved in the transaction? A) To deal honestly and in good faith B) Disclosure C) Accounting D) To present all written offers

C) Accounting The duty of accounting requires a broker to account for all money and property received from or on behalf of either party. This duty imposes on the broker the requirement that the broker must keep accurate records and accounts of all transactions.

Which fiduciary duty requires the agent to keep track of all funds received on the principal's behalf? A) Care B) Obedience C) Accounting D) Loyalty

C) Accounting The duty of accounting requires that the agent must be able to account for all funds received from or on behalf of the principal at all times.

Which fiduciary duty requires that the agent refrain from commingling the client's funds with personal funds? A) Obedience B) Care C) Accounting D) Loyalty

C) Accounting The duty of accounting requires that the agent not commingle personal funds with those of the principal.

Which of the following is not a protected class under federal Fair Housing Law? A) Religion B) Color C) Age D) National origin

C) Age Federal Fair Housing Law does not protect against discrimination based on age.

Which document is a buyer likely to include when the standard purchase and sale agreement does not address all of their conditions? A) A receipt for additional documentation B) Parol evidence C) An addendum D) A counteroffer

C) An addendum When specific conditions are not addressed by the standard form real estate sale agreement, the buyer and seller will use an addendum to express their conditions.

To be valid and enforceable, which element is required for an option contract? A) An exchange of consideration from the optionor to the optionee B) The optionee must have legal interest in property C) An exchange of consideration from the optionee to optionor D) It must be limited to a residential transaction

C) An exchange of consideration from the optionee to optionor Consideration must flow from optionee to optionor for the option to be valid and enforceable. The amount paid for the option is negotiable and can be minimal.

Which of the following is the practice of inducing an owner to sell a property based on fears of a changing racial makeup in the surrounding neighborhood? A) Redlining B) Steering C) Blockbusting D) Discriminatory appraising

C) Blockbusting Blockbusters induce sales to buy property at artificially low prices, then sell it at a profit.

A designated broker must send the Department of Licensing an affidavit and ensure pending transactions are completed or transferred to a firm that can complete the transactions when A) Firing a broker B) Closing an office C) Closing a firm D) Transferring a broker

C) Closing a firm The designated broker must send the Department of Licensing a closing firm affidavit within five days of closing a firm, ensure that pending transactions will be completed, and terminate or transfer active brokerage service contracts.

Which of the following would be considered an unethical method of soliciting business? A) A radio advertisement that airs on the local jazz station. B) Contact all dental offices within 10 miles of your brokerage. C) Contact the owner of a commercial building that has another licensee's "for lease" sign posted. D) A bulk letter campaign targeting all homeowners within a specific zip code.

C) Contact the owner of a commercial building that has another licensee's "for lease" sign posted.

Which of the following is every licensee's responsibility? A) Implementing, maintaining, and following written policies to address the supervision of licensees, contract review, and certain referrals B) Ensuring the accuracy of trust accounts C) Cooperating with the Department of Licensing in an investigation D) To deliver transaction documents and brokerage service contracts to the proper party within two business days

C) Cooperating with the Department of Licensing in an investigation Every licensee, from broker up, must know the real estate law, keep his/her mailing address current with the Department of Licensing, and be willing to cooperate with the Department of Licensing in any investigation, audit, or licensing matter.

Which of these is NOT controlled by a governmental unit? A) Conditional-use zoning B) Building codes C) Deed restrictions D) Zoning requirements

C) Deed restrictions Covenants, Conditions, and Restrictions ("CC&Rs") are private contract restrictions included in a deed or land sales contract.

Which fiduciary duty is commonly the most difficult for real estate agents to perform? A) Loyalty B) Obedience C) Disclosure D) Accounting

C) Disclosure The duty to disclose is perhaps the fiduciary obligation that presents the most problems for the licensee to fulfill.

The Washington Land Development Act and the federal Interstate Land Sale Full Disclosure Act require certain development projects to be registered and what else? A) Sales to be completed within a specified time frame B) Disclosure of certain information at closing C) Disclosure of certain information to prospective buyers D) Sales to be limited

C) Disclosure of certain information to prospective buyers Both of these laws are consumer protection laws that require a developer to provide a buyer or lessee with disclosures of information.

A tenancy that is for a specified, fixed time is called what? A) Periodic lease B) Tenancy at will C) Estate for years D) Holdover tenancy

C) Estate for years The key factor of an estate for years is that the time is definite and fixed. The time can be for years, months, weeks, days so long as the start and end dates are defined.

Which type of listing limits the seller to hiring one broker at a time and guarantees that if the property is sold, that broker will be paid a commission? A) Exclusive agency B) Open C) Exclusive right to sell D) Net

C) Exclusive right to sell With the exclusive right to sell listing, the seller hires one broker for a specific period. Another broker could sell the property, the seller could sell the property, or the listing broker could sell it. In each case, the listing broker will be paid a commission.

Which contract is the agreement between a licensee and a real estate brokerage? A) Option contract B) Exclusive agency agreement C) Firm-broker agreement D) Listing agreement

C) Firm-broker agreement The firm-broker agreement is the employment agreement between the licensee and the real estate firm, often also called the brokerage.

Painting over evidence of water damage without disclosing or fixing the underlying problem could be an example of what? A) Negligence B) Fraud C) Fraudulent concealment D) Negligent misrepresentation

C) Fraudulent concealment If the defect is severe enough to present a danger to the property or the health of the purchaser, and the paint job is sufficient to hide the problem from a careful but reasonable inspection, this could be an example of fraudulent concealment. Remember that the seller does not have to be the one who did the actual concealing, but the seller has to be aware of the defect.

What form of lease is typically used in residential real estate rentals? A) Variable B) Percentage C) Gross D) Net

C) Gross The gross lease is the most common type of lease in residential rental real estate.

Which of the following is not within the contractural definition of consideration? A) Randy agrees to paint Bailey's shed if Bailey agrees to fix Randy's computer. B) Madison agrees to pay Sklylar $25 if Skylar agrees to mow Madison's lawn. C) Harlow gives Cadence a $500 gift for graduating high school. D) Taylor promises to give a neighbor $100 if the neighbor agrees to stop playing the drums between 5pm and 7am.

C) Harlow gives Cadence a $500 gift for graduating high school. In its most basic form, consideration is something of value provided by one person in exchange for something of value from another person. Harlow giving Cadence $500 for graduating high school would be a gift, not consideration for an exchange.

An agent lures a client away from another agent during the term of a listing contract by offering a lower commission and faster result. This could be an example of what tort? A) Negligent misrepresentation B) Negligence C) Intentional interference D) Fraud

C) Intentional interference Intentional interference with business expectancy, also known as intentional interference with contract, is a claim that a third party harmed the plaintiff by interfering in the plaintiff's business or contractual relationship. Here, the plaintiff would have to show that the defendant - the agent doing the luring - knew of the listing contract, interfered for an improper purpose or by improper means, and that the interference was the proximate cause of harm to the plaintiff.

How does a branch manager differ from a designated broker? The branch manager: A) Cannot be responsible for overseeing trust accounts and accounting B) Does not have to be licensed C) Is specifically responsible for overseeing all activity within the branch office D) Cannot be delegated any of the designated broker's responsibilities

C) Is specifically responsible for overseeing all activity within the branch office By definition, a branch manager manages the branch office. A branch manager must be licensed and can accept delegated responsibilities including trust accounting oversight.

When an agent makes a profit by putting their interests above the principal's interests, what happens to the agent's profit? A) It is divided between principal and agent B) It is paid to the government C) It belongs to the principal D) It belongs to the agent

C) It belongs to the principal Anything that an agent obtains by virtue of placing his/her interest above that of principal belongs to the principal.

"Caveat emptor" is Latin for A) Let the seller profit B) Hail to the emperor C) Let the buyer beware D) Let them eat cake

C) Let the buyer beware "Caveat emptor" is Latin for "let the buyer beware."

Which fiduciary duty would prohibit having divided loyalties without the principal's knowledge or consent, such as an undisclosed dual agency? A) Disclosure B) Care C) Loyalty D) Obedience

C) Loyalty The duty of loyalty prohibits a divided agency, also known as an undisclosed dual agency, where an agent acts on behalf of an adverse party without the principal's knowledge or consent.

A licensee should complete at least some what every work day? A) Continuing education B) Data entry C) Marketing tasks D) Paperwork

C) Marketing tasks

Which listing type is NOT legal in Washington? A) Exclusive agency B) Open C) Net D) Exclusive right to sell

C) Net Net listings are not allowed in Washington. Regulations require that the commission being earned by the broker is specified in the listing agreement. With a net listing, the commission is the amount in excess of the listed sale price, which is not a value that can be determined at the time the listing agreement is signed.

Which type of listing allows the seller to hire a number of brokers at the same time, but not necessarily have to pay any of them? A) Exclusive right to sell B) Net C) Open D) Exclusive agency

C) Open The open listing agreement allows the seller to hire any number of brokers at the same time.

If not provided, why should a buyer's agent encourage a buyer to purchase an owner's title insurance policy when the title to the REO property will be free of primary and subordinate liens after the foreclosure? A) Not all REO properties are foreclosures B) In case the foreclosure process was not handled properly C) Other title issues may still exist D) The owner is legally required to have it

C) Other title issues may still exist Although the title to the REO property will be free of the primary and subordinate liens that were wiped out during the foreclosure process, other title issues may remain. Ad valorem taxes or title problems that were missed when the previous owner bought the property may still exist.

The rule requiring that once an agreement has been reduced to writing, the written agreement must stand on its own and oral testimony cannot be used in court to explain the agreement is best known as A) Consideration. B) Mutual assent. C) Parol evidence. D) Legal purpose.

C) Parol evidence. The rule requiring that once an agreement has been reduced to writing, the written agreement must stand on its own and oral testimony cannot be used in court to explain the agreement is best known as Parole Evidence.

It is most appropriate to contact a client in person when: A) Sharing general information such as a newsletter B) Telling a client about the time an inspection has been scheduled C) Presenting an offer D) Alerting a client that an offer has been received

C) Presenting an offer Offers should be presented in person.

"This is the most beautiful landscaping I have ever seen" is an example of which of the following? A) Fraud B) Exaggeration C) Puffing D) Misrepresentation

C) Puffing Puffing is sales talk and strictly a statement of opinion not to be relied upon as fact.

This federal act prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. A) LUBA B) Section 8 C) RESPA D) Fee-Splitting Act

C) RESPA RESPA, Section 8, prohibits anyone from giving or accepting a fee, kickback, or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. RESPA also prohibits fee splitting and receiving unearned fees for services not performed.

Referring a client to an expert for advice on matters relating to the transaction that are beyond the agent's expertise is part of the broker's duty of A) Disclosure B) Loyalty C) Skill and care D) Confidentiality

C) Skill and care A broker ensuring that he/she does not overstep the bounds of his/her own expertise is part of acting with reasonable skill and care.

Taylor entered into an agreement with Madison to purchase a one of a kind valuable painting but Madison later decided not to sell to Taylor. Which type of lawsuit would Taylor most likely bring against Madison to force the sale? A) Punitive damages B) Consequential damages C) Specific performance D) Rescission and restitution

C) Specific performance Specific performance is granted by a court of equity by ordering the breaching party to perform the required contract duties.

Spencer is holding an open house for one of his listings. Presley comes into the house and identifies herself as an interested potential buyer. She asks Spencer if the seller is open to seller financing. What is the first step that Spencer should take before answering any of Presley's questions? A) Spencer should tell Presley that he will call the seller and ask if they are open to seller financing. B) Spencer should tell Presley he represents the seller, explain dual agency, and have Presley sign the consent for dual agency representation. C) Spencer should ask Presley if she is working with another real estate agent. D) Spencer should tell Presley the seller wants to be cashed out, either by way of a cash offer or loan and recommend a lender that "knows how to get the job done no matter what."

C) Spencer should ask Presley if she is working with another real estate agent. Prior to entering into an agency relationship, either express or implied, a Realtor® must take affirmative steps to ensure that the individual is not already working with another licensee.

It is most appropriate to contact a client by text when: A) Alerting a client that an offer has been received B) Sharing general information such as a newsletter C) Telling a client about the time an inspection has been scheduled D) Presenting an offer

C) Telling a client about the time an inspection has been scheduled

All real estate transaction funds controlled by a licensee must be kept separate from: A) the pooled interest-bearing account. B) any Washington state depository. C) the licensee's own funds. D) funds controlled by the firm.

C) the licensee's own funds. Licensees must keep all trust funds separate from their own funds.

"This offer is subject to Buyer's written approval of Buyer's inspections of the property by professional inspectors of Buyer's choosing and at Buyer's sole expense." Which statement describes what the buyer needs to do if the buyer wants to continue with the transaction after completing the professional inspections? A) The buyer has to wait until the seller asks for the contingency to be waived. B) The buyer needs to verbally let the seller know that the transaction is continuing because no adverse conditions were revealed by the inspections. C) The buyer must give written notice of approval of the inspections to the seller. D) The buyer does not need to do anything.

C) The buyer must give written notice of approval of the inspections to the seller. The buyer must give written notice of approval of the inspections to the seller if he wishes to continue with the transaction after the inspections take place.

What might happen when a party fails to exercise reasonable due diligence in the performance of their part of a condition? A) The party could be fined and the money sent to the school district for the property. B) The closing date could automatically extend to allow for more time C) The court could excuse the condition causing the contract to ripen D) The other party could exercise reasonable due diligence

C) The court could excuse the condition causing the contract to ripen The court can excuse the condition, forcing the contract duty to ripen even though the required event did not occur in cases where the party benefiting from the condition failed to use reasonable due diligence to see that the condition occurs.

What is the effect of filing and recording a final subdivision map? A) The appropriate planning authority may review the map and grant or withhold approval B) The developer is allowed to offer the lots for sale C) The developer is allowed to sell the lots D) The developer certifies that the improvements shown on the map have been completed

C) The developer is allowed to sell the lots A developer cannot sell lots in a subdivision until the final plat map has been filed and recorded in the county records. Lots may be offered for sale before recording, but sales may not close until the final map is recorded.

Which best summarizes the Statute of Frauds? A) No misrepresentation or ambiguity in contract terms. B) That there be monetary consideration in every contract. C) The requirement for certain types of contracts to be in writing. D) The requirement that all parties to a contract to be legally competent.

C) The requirement for certain types of contracts to be in writing. The Statute of Frauds requires that certain contracts be in writing.

Who is responsible for making the lead-based paint hazard disclosure? A) The seller's agent B) The escrow agent C) The seller D) The buyer's agent

C) The seller The burden of compliance with the lead disclosure law is on the seller. It is the licensee's responsibility to advise the seller of the obligation.

Which of the following items does not need to be contained in a tenant's ledger? A) The legal description of the property B) The identifying code C) The type of trust account D) The tenant's name

C) The type of trust account Each tenant's ledger should contain the name of the tenant, the legal description of the property, and the identifying code.

What is the word a civil wrong causing damage to another? A) Nullity B) Misdemeanor C) Tort D) Tenter

C) Tort A civil wrong causing injury to another is known as a tort.

Equity skimming and violations of the state mortgage broker licensing law or state usury law are also per se violations of which act? A) Equal Credit Opportunity Act B) Residential Landlord-Tenant Act C) Washington Consumer Protection Act D) Federal Consumer Protection Act

C) Washington Consumer Protection Act The Washington Consumer Protection Act provides an additional avenue for civil suits over certain violations that affect the public interest, harming the public as well as individuals. The law allows for recovery of treble (triple) damages and steep fines.

Under the duties of heightened supervision, how soon must a newer broker's brokerage service contracts be reviewed by a supervising broker? A) Weekly B) Within two business days C) Within five business days D) Monthly

C) Within five business days Reviews of brokerage service contracts involving brokers licensed less than two years must be completed within five business days and should be maintained in the firm's records.

"Good faith" is BEST described as A) things can be taken at face value B) a waiver of the buyer's obligation to use due diligence C) a general assumption that the contracting parties will deal fairly with each other D) each party holds religious beliefs

C) a general assumption that the contracting parties will deal fairly with each other "Good faith" is BEST described as a general assumption that the contracting parties will deal fairly with each other

A written contract is also A) an implied contract. B) a bilateral contract. C) an express contract. D) an executed contract.

C) an express contract.

A person entering into a contract on behalf of someone else must A) have no felony convictions. B) be an attorney. C) have legal authority. D) be declared competent.

C) have legal authority. A person entering into a contract on behalf of another must have legal authority.

The broker who is concerned with the mutual interests of all parties and will assist each without being an advocate to either one A) is not allowed B) is in a dual agency relationship C) is a transactional agent D) is not required to disclose whether the broker represents the buyer, the seller, both parties, or neither party.

C) is a transactional agent The broker who is concerned with the mutual interests of all parties and will assist each without being an advocate either is a transaction agent (a non-agent).

Under the rules against false advertising, claims about a licensee's professionalism, expertise, or experience: A) should be avoided B) are deceptive or misleading C) must be substantiated D) must be conspicuous

C) must be substantiated A licensee may advertise their services with information about themselves, but the claims must be true.

If a condition does not occur or has not been met, then the duty to perform has not ___________ A) waivered. B) expired. C) ripened. D) breached.

C) ripened. If the event of the condition does not occur or has not been met, there is no ripening of the duty that it qualifies. Therefore, further performance is not required.

A Washington broker affiliated with Conifer Realty obtains an assumed name license for "Southside Specialists". Which of the following ads would be permissible? A) "Conifer Realty's Specialists" B) "Southside Specialists Realty" C) "Conifer's Southside Specialists" D) "Southside Specialists"

D) "Southside Specialists" If the licensee opts to use both a licensed assumed name and a firm name in an ad, the firm name and the assumed name must appear in full.

What is the maximum fine for a third violation, in a seven year period, of the Washington Law Against Discrimination? A) $5,000 B) $10,000 C) $25,000 D) $50,000

D) $50,000 This is the maximum civil penalty for third and subsequent (further) violations.

For how long must all trust fund records must be retained? A) 1 year B) 2 years C) 7 years D) 3 years

D) 3 years Failing to keep escrow and trust account records available upon request to the director or an authorized representative for at least three years is a basis for disciplinary action under Washington real estate law.

How long should the records related to the disclosure documents be kept? A) 6 months B) 1 year C) 5 years D) 3 years

D) 3 years The signed documentation demonstrating that the homebuyer or lessee received the required disclosure information must be retained by the seller, the landlord, or their agent for three years from the date of the sale or lease.

The law requires the seller or residential property to deliver a completed, signed, and dated seller's disclosure statement to the buyer of their property. How long does the seller have to deliver the statement to the buyer? A) 7 business days B) 10 business days C) 3 business days D) 5 business days

D) 5 business days The seller must deliver to the buyer a completed, signed, and dated statement within five business days from the acceptance date of the offer to purchase.

Which of the following RESPA-required disclosures must occur between loan application and settlement? A) An Initial Escrow Statement B) The Settlement Costs Booklet C) An Annual Escrow Settlement D) A Closing Disclosure

D) A Closing Disclosure A Closing Disclosure must be given to a borrower after loan application has been made but before closing, along with an affiliated business arrangement disclosure if applicable.

Assume that the following communications occur and materials were created with the intent of inducing a person to use particular real estate services. Which would not be considered advertising under state real estate law? A) A broker's business card B) The homepage of a firm's website C) A broker's blog on a blog-hosting site D) A broker's introducing himself to a prospective listing client at an open house

D) A broker's introducing himself to a prospective listing client at an open house The definition of advertising in state real estate law is broad but it is limited to attempts to induce a person to use the services of a licensee or firm by publication or broadcast. A recorded or live-cast seminar might qualify, but an in-person meeting would not.

Which of the following agreements is a broker engaging in property management NOT required to provide or enter into? A) An owner summary statement B) A property management agreement C) A rental/lease agreement D) A compensation agreement

D) A compensation agreement A broker engaged in property management must provide or enter into a property management agreement, a rental and/or lease agreement, and must provide an owner summary statement.

What is a condition precedent? A) Something that requires written approval before performance is required B) A discharge of an existing duty C) A waiver D) A condition that must occur before further contract duties will ripen

D) A condition that must occur before further contract duties will ripen A "condition precedent" is a condition that must occur before further contract duties will ripen. In other words, meeting the condition must occur before there will be further obligation to perform the balance of the contract.

A provision in the purchase agreement stipulates that the contract will not be binding unless the buyer can obtain a 30-year fixed conventional loan with an interest rate not to exceed 7%. What is this type of clause called? A) An option to purchase B) A safety clause C) A variable offer D) A contingency

D) A contingency Any term in a contract that sets forth a condition, which must be met before the duty to fully perform ripens, is known as a contingency.

Which one of the following consequences is NOT a possible result when a licensee engages in the unauthorized practice of law? A) A civil suit filed by an injured party, whether or not anyone paid the licensee B) Permanent real estate license revocation C) Temporary real estate license suspension D) A criminal trial brought on by the local board of REALTORS®

D) A criminal trial brought on by the local board of REALTORS® A licensee can be sued for unauthorized practice of law by anyone injured by the conduct, whether or not anyone paid the licensee for the advice or counsel. A licensee may also have their real estate license revoked or suspended. The local REALTOR association does not have the authority to bring criminal charges against a licensee, but they do have the authority to revoke the licensee's membership with the organization.

Which of these is a lease of vacant land upon which the lessee may or will construct a building? A) A gross lease B) A flat lease C) A graduated lease D) A ground lease

D) A ground lease Under a ground lease, the lessee will pay rent to the landlord for the use of the land upon which the lessee's building is sited.

Which of these is the result of a tenant wrongfully retaining possession of a property after the expiration of a lease? A) A trespass B) A periodic tenancy C) An at-will tenancy D) A holdover tenancy

D) A holdover tenancy Whether the holdover tenant's possession remains wrongful depends on whether the landlord accepts rent from the holdover tenant.

Which of these is an example of a third-party website? A) A firm's Twitter account B) A firm's listings pages C) A licensee's Facebook page D) A nationwide real estate database such as Trulia

D) A nationwide real estate database such as Trulia A third-party website is one with content controlled by someone unrelated to the firm or the licensee. All the other choices here contain content controlled by the licensee or the firm.

Which of these is a lease that incorporates maintenance or other operating expenses with rent payments? A) A periodic lease B) A gross lease C) A flat lease D) A net lease

D) A net lease Depending on the number of expense types included in the rent, this kind of lease may be called a "net-net," "double net," or "triple net" lease.

When rental agreements are not in writing or fail to include certain terms, default rules of law supply the missing terms. Which of the following has such a default rule? A) A mid-month termination of a tenancy B) The amount of a late payment fee C) A tenancy for a specific term D) A periodic tenancy

D) A periodic tenancy A periodic tenancy may be assumed by the behavior of the parties. The other choices require specific, and sometimes written, agreement between the tenant and the landlord.

Which contract is between a firm and a seller? A) Contract for deed B) Option contract C) Purchase and sale agreement D) Listing agreement

D) Listing agreement The listing agreement is an employment contract between the firm and the seller. It is not a contract between the broker and the seller.

What is a "disability" under Fair Housing Law? A) A physical or mental impairment that creates a handicap B) A physical impairment that requires special accommodation C) A physical handicap D) A physical or mental impairment that substantially limits at least one major life activity

D) A physical or mental impairment that substantially limits at least one major life activity A disability can be a physical or mental impairment. "Major life activities" include hearing, seeing, breathing, walking, and learning.

What is an undisclosed principal? A) A principal that may change during the transaction B) A principal that is not made known to the agent C) A principal that is not a natural person D) A principal that is not made known to third parties

D) A principal that is not made known to third parties In the case of an undisclosed principal, the identity and existence of the principal are not made known to third parties. The third party is led to believe that the agent and the principal are one in the same.

What is a partially disclosed principal? A) A principal whose existence is not made known but whose identity is made known. B) A principal who will be using a power of attorney. C) A principal who discloses only part of their name to their agent. D) A principal whose existence is made known but not their identity.

D) A principal whose existence is made known but not their identity. In the case of a partially disclosed principal, the existence of the principal is known, but not the identity of the principal.

What kind of license is required in order to engage in property management activity? A) A designated broker's license B) A managing broker's license C) A loan originator's license D) A real estate license

D) A real estate license A real estate license is required to engage in any property management activity.

Which of the following statements is true in the context of a multiple-offer scenario? A) A seller is obligated to disclose the existence of competing offers to buyers making offers B) A seller is obligated to disclose the terms of competing offers to buyers making offers C) A seller may counter one or more offers D) A seller may consider offers in the order received

D) A seller may consider offers in the order received A seller has the option of disclosing the existence and terms of multiple offers but is not obligated to do so. There are no rules or limitations on the order in which a seller should consider offers, just that the agent cannot present the offers in a leading way.

Which of these is a lease of airspace or the top of a building? A) A flat lease B) A variable lease C) Air rights D) A sky lease

D) A sky lease A sky lease is also called a roof top lease. This type of lease is often used to the placement of advertising.

What may be removed by a commercial tenant at the end of the lease if the property is restored to its original condition? A) An original fixture B) An appurtenant fixture C) A domestic leasehold fixture D) A trade fixture

D) A trade fixture A trade fixture is something that must be installed as a fixture for the lessee to use the item in the course of doing business. Lessees are allowed to remove trade fixtures within a reasonable amount of time after the lease expires.

What is a contract that invites performance by the accepting party without requiring it? A) An implied contract B) An express contract C) A bilateral contract D) A unilateral contract

D) A unilateral contract A unilateral contract involves a promise by only one party, so the other party is not required to perform. If the non-promising party performs under the contract, that performs is an acceptance of the contract.

Which of these is essentially a request for a property-specific exception to zoning rules? A) A buffer zone B) An abatement C) A nonconforming use D) A variance

D) A variance A property owner must usually prove that following the zoning rule to the letter is unreasonably costly or difficult compared to the variance sought.

A real estate broker owes legal duties to A) their designated broker. B) the principal. C) third parties. D) All of the above.

D) All of the above. Legal duties, although varied in scope, are owed to third parties, the principal and the designated broker.

Each client must receive something from their real estate agent before the agency relationship is created. What is it? A) A disclosure statement B) A contract C) A brokerage relationships act pamphlet D) An agency law pamphlet

D) An agency law pamphlet A licensee must give an agency law pamphlet to each party seeking the licensee's services. The pamphlet sets forth provisions of Washington's agency law and must be given to parties before any written agreement is signed.

Which of these is a lease with payment increases determined by an economic indicator? A) A periodic lease B) An inflationary lease C) A variable lease D) An indexed lease

D) An indexed lease Indexed leases tie future rent increases to future increases in a specific index, such as the Consumer Price Index.

Which of these is a lease giving the lessee the right to search the property for resources? A) A sky lease B) A farm and crop lease C) A commercial lease D) An oil and gas lease

D) An oil and gas lease An oil and gas lease provides the lessor with the right to receive a flat sum for the right to explore for oil or gas and a royalty for oil or gas actually obtained from the land.

Through his real estate agent, Jeremy, Walter negotiated a $340,550 sales price with a seller. What is Jeremy's next step in the purchase process? A) Compare the house to others nearby B) Prepare an offer to purchase C) Prepare a counter offer D) Arrange the home inspections

D) Arrange the home inspections After negotiations for a purchase are completed, the buyer's agent needs to assist in the closing process, which usually involves addressing a number of issues before the final transaction. Typically these include performing inspections, satisfying contingencies and evaluating issues with the property.

Why must a real estate licensee be familiar with local Fair Housing protections? A) Because when the local, state, and federal standards are not identical, the baseline standards must be observed B) Because local standards are the same as federal and state standards C) Because local standards may allow for fewer protections than federal or state standards D) Because when the local, state, and federal standards are not identical, the strictest standards must be observed

D) Because when the local, state, and federal standards are not identical, the strictest standards must be observed Localities are only allowed to strengthen federal or state fair housing protections, not weaken them.

A real estate brokerage must have policies and/or procedures in place on all of the following except A) Referring home inspectors B) Safe handling of client funds and property C) Review of newer brokers' brokerage service contracts D) Brokers' office hours

D) Brokers' office hours The Department of Licensing rules demand that policies must be in place for handling of client funds and property and that written policies be in place for home inspection referrals and the review of brokerage service contracts involving brokers licensed for less than two years.

A borrower has the right to rescind what? A) Residential purchase money mortgages B) Contracts to refinance residential properties with no new funds advanced by the lender C) Contracts to refinance investment properties D) Contracts that involve a security interest in the consumer's primary residence

D) Contracts that involve a security interest in the consumer's primary residence The right to rescind does not apply to first mortgages or certain kinds of refinanced mortgages.

Which fiduciary duty obligates the agent to keep the principal informed of all relevant material facts? A) Obedience B) Care C) Loyalty D) Disclosure

D) Disclosure The duty of disclosure requires the agent to keep the principal informed of all material facts, which the agent knows or should have known that may have an impact on the principal choosing a particular course of action.

Which court case held that an agent could be considered negligent if they did not disclose material facts that they should have known? A) Alejandre v. Bull B) Douglas v. Visser C) Puget Sound v. Dalarna D) Easton v. Strassburger

D) Easton v. Strassburger The Easton v. Strassburger case expanded the duty to disclose on the part of listing and selling agents to not only what the agents actually knew, but to what should have been known in the exercise of reasonable diligence.

What is the purpose of the Multiple Listing Service (MLS)? A) Ensure that the advertising of real property for sale complies with real estate law B) Assist real estate agents to procure listings C) Provide each member with an accurate listing market share analysis D) Enable real estate agents to share information on their listings

D) Enable real estate agents to share information on their listings The MLS was formed to enable member real estate agents to share information on listed properties with other members.

Steve, a real estate licensee, and Alexa, a buyer, have a verbal agreement that Steve is Alexa's buyer agent. Which kind of agency did they create? A) Implied B) By necessity C) By estoppel D) Express

D) Express Express agency relationships can be created orally (verbally) or in writing.

What does a waste clause do? A) Outlines the terms of the tenant's maintenance responsibilities B) Outlines the terms of the landlord's maintenance responsibilities C) Forbids the tenant from making alterations to the property D) Forbids the tenant from making alterations that decrease the value of the property

D) Forbids the tenant from making alterations that decrease the value of the property In property law, "waste" is the destruction or material alteration of a property by a tenant. A waste clause should also spell out the owner's legal recourse to recover damages, and in what amount, if the tenant commits waste.

Which of the following is the tort that alleges that the defendant made a knowingly false representation of a material fact, intending that the plaintiff would act on the representation, and that the plaintiff did not know the representation was false, had a right to rely on the representation, and did so, resulting in damage to the plaintiff? A) Intentional interference B) Negligent misrepresentation C) Negligence D) Fraud

D) Fraud Fraud is an intentional tort and consists of these nine elements.

Lying on a disclosure form to make a property look better to buyers is a potential example of what? A) Negligence B) Negligent misrepresentation C) Fraudulent concealment D) Fraud

D) Fraud Fraud is intentionally misrepresenting a material fact to induce someone else to act on the false information. This example is "potential" fraud because we do not yet know whether the false disclosure induced a buyer to bid on a property they might otherwise not have bid on, or at a higher price than they would have without the false disclosure.

To exercise a self-help remedy, the tenant must be current in rent payments and what else? A) Show proper use of fixtures and appliances B) Not have agreed to live with the defective condition C) Have provided written notice to the landlord of the tenant's choice of remedy D) Have provided written notice to the landlord of the defective condition

D) Have provided written notice to the landlord of the defective condition The tenant must notify the landlord of the condition to give the landlord a chance to remedy the problem.

Jenny has toured several houses with her agent, Fred and they have found a house Jenny wants to purchase. What is Fred's next activity? A) Assist in closing the transaction B) Make sure that necessary inspections are performed C) Help Jenny evaluate whether she really wants the house D) Help Jenny determine an offer price

D) Help Jenny determine an offer price Now that Jenny has identified a property to purchase, Fred should provide assistance in determining an offering price, such as preparing a CMA, analyzing the condition of the property, and considering how long the house has been on the market.

Madison's lease is expired but Madison won't surrender the property back to the landlord. Which type of estate has Madison created? A) Tenancy at will B) Estate for years C) Month-to-month lease D) Holdover tenancy

D) Holdover tenancy The holdover tenancy occurs when the tenant wrongfully retains possession of the property after the lease term has expired.

Skyler offered to sell Lennon a 1961 Porsche for $50,000. One week later, while waiting for Lennon to come up with the money for the purchase, Charlie offered Skylar $54,000 for the Porsche. Which situation would prevent Skylar from accepting Charlie's offer? A) Charlie offered too much and it isn't to be considered a fair exchange. B) If Skylar doesn't communicate termination of the offer with Lennon. C) If Charlie refused to make a written offer. D) If Lennon gave Skylar consideration to keep the offer open for at least three weeks.

D) If Lennon gave Skylar consideration to keep the offer open for at least three weeks. If an offeror is bound through the receipt of consideration to keep it open for a stated time, an option contract is created, making the offer irrevocable until the stated time has passed.

Which fiduciary duty would prevent an agent from disclosing confidential matters? A) Obedience B) Disclosure C) Care D) Loyalty

D) Loyalty Some of the implications of the duty of loyalty are that information relating to confidential matters gained from the principal may not be disclosed.

If Taylor Jones has a power of attorney to sign real estate closing papers for Madison Jones, how should Taylor sign Madison's name? A) Madison Jones, by Taylor Jones, Designated Attorney B) Madison Jones, by Taylor Jones, Lawyer in Escrow C) Madison Jones, by Taylor Jones, Factual Attorney D) Madison Jones, by Taylor Jones, Attorney in Fact

D) Madison Jones, by Taylor Jones, Attorney in Fact First sign the person's name, then by the name of the person given the power of attorney, followed by "attorney in fact".

Because many REO properties are identified only by the physical address, what should a buyer's agent do? A) Have the property surveyed before closing B) Have the owner purchase an owner's title insurance policy C) Obtain a preliminary title report early on D) Make sure transaction papers use the legal description

D) Make sure transaction papers use the legal description The buyer's agent should ensure that the correct legal description is set forth on all transaction documents were applicable.

Which responsibility does NOT belong to the buyer's agent? A) Show listings B) Negotiate the offer C) Prepare a CMA D) Marketing listings

D) Marketing listings The buyer's agent does NOT market the listing.

If a landlord fails to keep a property in habitable condition, a tenant may have the option of a self-help remedy. Which of these is NOT an allowed remedy? A) Beginning legal proceedings B) Terminating the rental agreement with written notice C) Making needed repairs and deducting the cost from rent payments D) Moving out without notice

D) Moving out without notice Even when the landlord is not meeting his/her obligations, notice is required for the tenant to terminate a rental agreement early.

Which of the following must appear on any given advertisement for brokerage services? A) Address of the listing B) License number of the firm C) Business address of the firm D) Name of the firm as licensed

D) Name of the firm as licensed Every advertisement must contain the name of the firm's name or assumed name as licensed. Out-of-state brokers must also include the name of their affiliated, Washington-licensed broker, managing broker, or firm.

Which of the following is the tort that alleges that the defendant either made an affirmative misstatement or failed to disclose information that the defendant had a duty to disclose? A) Intentional interference B) Negligence C) Fraud D) Negligent misrepresentation

D) Negligent misrepresentation To make a claim of negligent misrepresentation, a plaintiff must allege that the defendant's affirmative misstatement or failure to disclose affected the plaintiff's behavior - that without the statement or with the proper disclosure, the plaintiff would have acted differently. Negligence and intentional interference with business expectancy are different torts, and fraud consists of more elements, including intentionality.

This agreement is for an office space where the tenant pays a fixed amount of rent to the landlord, along with some additional operating costs. A) Gross lease B) Graduated lease C) Variable lease D) Net lease

D) Net lease With a net lease, the tenant pays a set amount of rent and some or all of the expenses of operating the building for maintenance, repairs, etc. This type of lease is used for long-term retail, office, or industrial space and is rarely, if ever, used in residential rental agreements.

Because REO properties are frequently nothing more than commodity for the REO seller, this creates what problem? A) A lack of documented information on the property B) No proper inspection is made of the property C) The property is sold as quickly and cheaply as possible D) No cooperation with brokers to close the transaction

D) No cooperation with brokers to close the transaction These properties are nothing more than a commodity for those working the REO files. As a result, often there is little or no cooperation in working with brokers to close a transaction once an offer has been accepted by the bank for its REO property.

Oakley hired a contractor to build a deck using a specified type of wood. The contractor built the deck but didn't use the specified type of wood. Oakley would sue the contractor for which type of damages? A) Punitive B) Actual C) Liquidated D) Nominal

D) Nominal The contractor did breach the contract, but there isn't any monetary damage, per se. The court could award Oakley a sum of nominal damage, perhaps amounting to the difference in price between what she wanted and what was used.

An unbranded website may what? A) Be used for a licensee's blog B) Be used for listing purposes C) Not be used without the advance permission of the licensee's designated broker D) Not be used by a licensee

D) Not be used by a licensee An unbranded website is by definition in violation of Department of Licensing rules about advertising, including that all advertising be no more than one click away from information about the firm including its name as licensed.

Which statement is MOST correct? A) Novation substitutes one party for another but the original party remains liable under the agreement. B) Assignments must be in writing and novations do not need to be in writing C) Assignments are recognized even if specifically prohibited in the contract. D) Novation relieves all contract obligations for the original party.

D) Novation relieves all contract obligations for the original party. Novation relieves all contract obligations for the original party.

Which fiduciary duty requires that the agent follow the instructions of the principal? A) Loyalty B) Accounting C) Care D) Obedience

D) Obedience The duty of obedience requires that the agent act in good faith at all times according to the instructions and wishes of the principal.

A company licensed as "Mark Bowen and Associates" wants to use the company name "Bowmark Real Estate." What must be done to use this name? A) Submit a company name change form to the Department of Licensing B) Contact the director and request permission to use the name C) Register the additional name with the Department of Licensing D) Obtain a separate license for the additional company name

D) Obtain a separate license for the additional company name

An option to expand clause does what? A) Outlines the terms under which a lessor can add on to a leased building B) Creates an automatic extension of a lease term C) Outlines the terms under which a lessee can add on to a building D) Outlines the terms under which the lessee may lease additional space

D) Outlines the terms under which the lessee may lease additional space An option to expand clause may be valuable to a business experiencing or that is likely to experience growth. The clause creates a degree of certainty because the lessee knows how much additional space will cost. However, an option to expand clause depends on the availability of vacant space.

Which of the following is an example of rescission and restitution? A) Having a portion of a home purchase refunded due to structural problems. B) After formation of a contract, reimbursing the other party for differences. C) Compensating for expenses associated with breach of contract. D) Paying cash for a car, then returning car and getting back cash.

D) Paying cash for a car, then returning car and getting back cash. Rescission means cancellation, destruction or "unmaking" of the contract. Restitution means restoring the parties to their relative positions prior to the contract. This usually means each party returns to the other that which was received under the contract.

Which standardized form is most frequently used to purchase real estate? A) Option contract B) Listing agreement C) Contract for deed D) Purchase and sale agreement

D) Purchase and sale agreement The Washington Residential Purchase and Sale Agreement it is the most commonly used form for the purchase of residential property in Washington.

Why is it a problem that sellers of REO property are required to provide a disclosure statement? A) There are legal complications with an out-of-state seller providing disclosure B) Buyers may not be able to inspect the property C) Foreclosed properties are exempt from the disclosure requirement D) REO seller may have no knowledge of the property's condition

D) REO seller may have no knowledge of the property's condition Even though the REO seller is required to provide a seller's disclosure statement, the bank personnel working the REO files have no personal knowledge of the property's specific condition.

Which of these is NOT a best practice to follow when giving referrals for services? A) Refer only licensed individuals or companies where applicable B) Refer several service providers C) Disclose any relationship that could be perceived as a conflict of interest D) Recommend only service providers that the broker does not know personally

D) Recommend only service providers that the broker does not know personally Although this would avoid many conflicts of interest, referring only unknown providers puts the broker at risk of client anger if the provider turns out to be incompetent or unreliable. The better practice is to refer service providers that the broker or the broker's colleagues know to be trustworthy.

Licensee Edger has an active listing with seller Joe and licensee Sabin wants the listing when it expires if no sale has occurred. What can Sabin do if Edger refuses to give the expiration date of the listing contract? A) There is nothing Sabin can do. B) Buy the property listing from Edger. C) Report Edger's ethical conduct violation to the local board of Realtors®. D) Sabin can contact the seller directly to ask about the contract expiration date.

D) Sabin can contact the seller directly to ask about the contract expiration date.

Which type of agency are you in if you sign a listing agreement with a property owner? A) Disclosed dual agency B) Undisclosed dual agency C) Buyer's agency D) Seller's agency

D) Seller's agency The seller's agent is known as the listing agent. The seller and listing agent relationship is a single agency representation since the agent only represents the seller (seller's agency).

A managing/designated broker's review of which of these is NOT an example of heightened supervision? A) Subject's brokerage service contracts B) Subject's timely submission of documents and trust funds C) Subject's completed educational courses D) Subject's schedule

D) Subject's schedule Broker schedules are often arranged around the needs of clients and are often flexible. It is unlikely that a supervising broker would be concerned about a new broker's schedule unless there was some problem. The other three choices are things that should be reviewed by every broker supervising a new broker.

Residential rental agreements are subject to the provisions of what? A) The designated or managing broker B) The landlord or property owner C) The Washington Department of Licensing D) The Residential Landlord-Tenant Act

D) The Residential Landlord-Tenant Act Residential rental agreements are subject to the provisions of Washington's Residential Landlord-Tenant Act, which is found in RCW 59.18.

Which of the following RESPA-required disclosures must occur within three days of a loan application? A) An Annual Escrow Settlement B) A Closing Disclosure C) An Initial Escrow Statement D) The Settlement Costs Booklet

D) The Settlement Costs Booklet This booklet is not personalized. It contains information on RESPA, closing costs, and the settlement statement.

Under normal circumstances, who should choose the buyer's title insurance company? A) The seller's agent B) The buyer's agent C) The seller D) The buyer

D) The buyer RESPA, the federal law that governs residential real estate closings, forbids the seller or a broker from mandating the use of a particular title insurance company. The only exception is if a seller is paying for the buyer's title insurance policy in full.

What does the "pipeline" refer to? A) Becoming licensed and starting a real estate practice B) Communicating with clients C) Networking D) The continual nature of prospecting for business

D) The continual nature of prospecting for business

Which of the following is NOT part of the test to determine whether an item has become a fixture? A) The item's adaptability for use elsewhere B) The method of attachment C) The relationship of the parties D) The cost of the item

D) The cost of the item The cost of the item itself is not part of the test for whether an item of personal property has become a fixture. An easily removed item of personal property such as a high-end freestanding refrigerator could be just as costly as something that is more likely a fixture, such as a built-in dishwasher.

Which of these is NOT an element of a negligence claim? A) The defendant failed to exercise their duty B) The defendant's conduct caused the plaintiff's injury C) The defendant owed the plaintiff a duty D) The defendant's conduct was intentional

D) The defendant's conduct was intentional Negligence is an unintentional tort. The other choices all must be true for a plaintiff to form a claim of negligence: The defendant must have owed the plaintiff a duty, must have been negligent in exercising that duty, and that negligence must have caused some form of harm to the plaintiff.

Who is required to maintain a trust account for funds related to property management activity? A) The property owner B) The real estate broker C) The property manager D) The designated broker

D) The designated broker A designated broker must maintain a trust account for the deposit and disbursement of funds relating to property management activity.

Who is required to maintain property management activity records? A) The property owner B) The real estate broker C) The property manager D) The designated broker

D) The designated broker A designated broker who engages in property management activity is required to keep adequate, accurate, up-to-date, and complete records relating to the property management activity conducted by his or her firm.

An advertisement for real estate owned by a licensed broker must state what? A) The firm's d/b/a name B) The licensee's full name C) The firm's licensed name D) The fact that the owner is a real estate licensee

D) The fact that the owner is a real estate licensee While ads for real estate owned by others or for real estate services must contain broker names and firm names, ads for a licensee's own property must only disclose that the owner is a licensee.

Which of these is NOT a reason new licensees are advised to start their real estate practice with a 90-day reserve of funds? A) To cover living expenses B) Most licensees do not receive their first earned commission for several months after starting C) To afford start-up business expenses D) The first few commission checks will likely go to start-up expenses

D) The first few commission checks will likely go to start-up expenses Since it is true that most licensees do not see their first commission checks for a few months, it would be unwise to delay start-up expenses such as marketing materials, professional dues, and license activation fees.

Which of the following items is NOT part of a 3-way reconciliation? A) The balance of the record of receipts and disbursements B) The bank statement balance C) The sum of all positive owners' ledgers D) The sum of all client security ledgers

D) The sum of all client security ledgers A 3-way reconciliation must include the following items: The bank statement balance, adjusted for outstanding checks and other reconciling bank items. The balance of the record of receipts and disbursement or the check register as of the date of the bank statement. The sum of all positive owners' ledgers as of the date of the bank statement.

Which of the following provisions is required in a commercial, industrial, or raw land lease agreement? A) Terms and conditions B) A description of the property C) The duration of the agreement D) There are no required provisions

D) There are no required provisions There is no required form or provisions for these types of agreements. Most provisions are specific to the type of property leased and will involve customized agreements tailored to the specific needs of the landlord and tenant involved in the lease transaction.

How long does a complainant have to file a written accusation with the Department of Licensing? A) Five years from the discovery of the alleged unlawful act B) Three years from the discovery of the alleged unlawful act C) Five years from the alleged unlawful act D) Three years from the alleged unlawful act

D) Three years from the alleged unlawful act The correct answer here is also the shortest amount of time - three years from the alleged wrongdoing, not from its discovery.

While showing a listing, you said to your client, "This is a super low price for this property!" If your client relied on your statement as factual and discovered after buying the property that the listing was overpriced, you could be found guilty of misrepresentation, which is a breach of which fiduciary duty? A) To exercise reasonable skill and care B) To disclose all material facts C) To account in a timely manner D) To deal honestly and in good faith

D) To deal honestly and in good faith This is a breach of the agent's duty to deal honestly and in good faith, because the opinion was such that the broker's professional expertise gave the weight for a third party to construe an opinion given as a statement of fact.

Which of the following is NOT a true statement about torts? A) A tort is wrongful conduct that causes injury to someone else B) Tort duties are not dependent of the voluntary assumption of liability and risk C) A tort can be the basis of a claim for monetary damages D) To recover damages, an injured party must be in a contractual relationship with the tortfeasor

D) To recover damages, an injured party must be in a contractual relationship with the tortfeasor Unlike contractual duties, which are only assumed voluntarily by the parties to a contract, tort duties are assumed involuntarily and are owed to anyone who might be affected by a person's conduct.

Agency relationships may be created by all of the following EXCEPT: A) Implication B) Written agreement C) Verbal agreement D) Verification

D) Verification Verification has no significance in creating agency relationships.

Which term means to give up a right granted in a contract? A) Excuse B) Nonoccurence C) Condition D) Waiver

D) Waiver Waiver means to give up a right granted in the contract.

Which of the following is the exception to the next banking day deposit of trust funds requirement? A) When the broker has been given a post dated check B) When the earnest money deposit is less than $10,000 C) When the next banking day falls on a Saturday, Sunday, or legal holiday D) When instructed by a buyer to hold the check until a specific time or event

D) When instructed by a buyer to hold the check until a specific time or event If the earnest money agreement states that a check is to be held for a specific period of time or until a specific event occurs, then it should be deposited according to the agreement.

When is a licensee's preparation of a non-standard document definitely NOT the unauthorized practice of law? A) When the document is a contract for the deed B) When the document addresses only a detail of the transaction at hand C) When done at the direction of a principal to the transaction D) When the licensee is a principal to the transaction

D) When the licensee is a principal to the transaction A licensee is free to draft documents for transactions in which he/she is acting as a principal, because actions taken on one's own behalf are not legal advice or counsel.

A listing agent needs to disclose material facts about the property in all of these situations EXCEPT A) When they should have known after reasonable diligence B) When the facts have been disclosed by the seller C) When they are asked a question directly by the buyer and they know the answer D) When they have no knowledge of a material fact.

D) When they have no knowledge of a material fact. The duty to disclose on the part of listing and selling agents includes not only what the agents actually know, but what they SHOULD known in the exercise of reasonable diligence.

Can the Department of Licensing require reimbursement for the costs of investigating a disciplinary matter? A) Yes, from the licensee B) No C) Yes, from the firm to which the broker is licensed D) Yes, from the licensee, but only if the disciplinary authority ordered a disciplinary sanction

D) Yes, from the licensee, but only if the disciplinary authority ordered a disciplinary sanction The Department of Licensing can require a licensee to reimburse the agency's investigative costs, but only if the licensee was sanctioned for a finding of unprofessional conduct. All costs of complying with a disciplinary order are the responsibility of the licensee/applicant.

A contingency can relieve one party to a contract from the obligation to perform without that party A) having any legal recourse. B) being able to waive the contingency. C) backing out of the transaction. D) being in contract breach.

D) being in contract breach. A contingency can completely relieve the party for whose benefit the contingency was inserted of any obligation to perform without being in breach of the agreement.

The action making a contract that was voidable from a misrepresentation but affirmed so it becomes enforceable is called A) remediation. B) restitution. C) rescission. D) ratification.

D) ratification. Ratification makes a voidable contract fully enforceable.