Washington State portion (real estate exam)
Which of the following statements about trust account service charges, fees for checks, and other administrative charges for a pooled account is true? Bank charges are business expenses of the real estate firm and may not be funded through the accrued interest or trust funds deposited in a pooled account. Banks offer trust accounts free of service and other charges. Brokers collect an additional fee when the contract is signed to offset bank service charges. Ordinary service charges may be deducted from the interest earned on or trust funds deposited into a pooled trust account.
**Bank charges are business expenses of the real estate firm and may not be funded through the accrued interest or trust funds deposited in a pooled account.
Rebecca receives an earnest money deposit in the amount of $12,000. Which of the following statements best describes the deposit of this trust money? Rebecca may deposit it in the firm's regular trust account. Rebecca must deposit it in an individual trust account set up for just this client. Rebecca must deposit the funds in a non-interest bearing trust account. Rebecca must deposit the funds into a DOL special trust fund account.
**Rebecca may deposit it in the firm's regular trust account.
How many hours of unused CE credit may be carried over to the next license renewal period in Washington? 10 15 Five None
15
In Washington, how many hours of continuing education coursework must new licensees take before renewing for the first time? 20 25 27 30
27
In Washington, licensees renewing for the first time will complete ______ hours in advanced practice coursework, ______ hours in real estate law, ______ hours of continuing education coursework, and a ______-hour core course. 15, 15, 27, 4 30, 30, 27, 3 30, 30, 30, 4 90, 90, 30, 3
30, 30, 27, 3
What passing score must a candidate achieve on the Washington broker's exam? 65 70 75 80
70%
How many total hours of coursework must a Washington licensee renewing for the first time have taken? 120 30 60 90
90
In Washington, how many hours of coursework must an applicant complete before applying for a managing broker's license? 120 30 60 90
90
What must a Washington real estate company establish in order to keep track of trust accounts' accrued interest? A ledger titled "Housing Trust Account Interest" A monthly report from the bank's vice president of commercial banking A spreadsheet called "Accrued Earnest Money Interest," which is updated every day A trust fund savings account
A ledger titled "Housing Trust Account Interest"
Who may supervise a managing broker in Washington? A broker A managing broker The DOL director The real estate commission
A managing broker
At the conclusion of a brief hearing in Washington, how are parties informed of the presiding officer's decision? A written initial order will be served on both parties within 10 days of the hearing. The director calls each party within 10 days to provide information about the decision. The officer concludes the hearing by presenting the decision. The parties must appear at a secondary hearing to hear the decision.
A written initial order will be served on both parties within 10 days of the hearing.
Robert's Washington license was immediately restricted when he received notice that a complaint had been filed against him and an investigation would follow. What's the earliest that a hearing can be held after the notice is served? 30 days 45 days 60 days As soon as possible
ASAP
Corliss, a Washington licensee, is the subject of an investigation and has requested a hearing. The complaint is complex and involves multiple individuals. The director wants to hear testimony from several witnesses in order to make a decision. What kind of hearing will be used? Administrative Brief adjudicative Stipulated disposition Superior court
Administrative
What kind of research does WCRER perform? Affordable housing Individual licensing exam pass rates Licensing pass rates by provider Washington cost of living
Affordable housing
How are Washington commission members selected? Appointed by the DOL director Appointed by the governor Elected by the public Elected by the Washington Association of REALTORS®
Appointed by the governor
Based on Washington statutory duties, which of the following is a material fact? Based on a recent city council ruling, the buyer will be unable to use the property for the intended purpose. Property conditions that are discovered through the broker's required personal property inspection. Property values in the area are expected to rise sharply in the coming year. The buyer's lender has confirmed that the loan will most likely be approved.
Based on a recent city council ruling, the buyer will be unable to use the property for the intended purpose.
If a Washington real estate firm has a branch office, who's responsible for ensuring that the affiliated licensees maintain their licenses? Branch manager Broker Designated broker Managing broker
Branch manager
The ______ Division oversees all licensed professions in Washington. Business and Professions Legislative Licensing Real Estate
Business and Professions
Washington's statutory duties specify that the licensees' duties are limited to those outlined under state statute. Based on this, which of the following statements is true? Bonnie and her client, Charles, agreed in writing that Bonnie would prepare a detailed comparison sheet of all the offers made on Charles's house. Washington statutory duties prohibit her from doing so. Caroline isn't prohibited by the outlined statutory duties from performing value-added services for her clients. Colvin, a managing broker, owes a certain set of statutory duties to the licensees who report to him, including the duty of confidentiality. Jeannie is required to provide statutory duties only to Robert, who's her client, not to Tim, who's a customer.
Caroline isn't prohibited by the outlined statutory duties from performing value-added services for her clients.
Which document is signed and agreed to at closing and reconciles what the final financial obligations are for both the buyer and seller? Affidavit of title Closing statement Sales agreement Title insurance policy
Closing statement
Which of the following positions is appointed by the Washington DOL director to serve as an non-voting member and preside over meetings? Commission chair Commission vice-chair Director of the real estate division Representative from the secretary of state's office
Commission chair
Jean is a branch manager in Washington. For which of the following tasks must Jean have specific permission from her designated broker? Completing monthly trust account reconciliations Hiring branch office licensees Setting the hours that the branch office will be open Transferring or releasing branch office licensees
Completing monthly trust account reconciliations
Who, with the advice and support of the Real Estate Commission, establishes rules and regulations and enforces real estate licensing law in Washington? Business and Professions Division DOL director The governor Washington attorney general
DOL director
In Washington, which agency is responsible for approving real estate schools and education? Attorney general's office Department of Licensing U.S. Department of Education Washington Department of Education
Department of Licensing
Which of the following can perform services for more than one firm at a time in Washington? Branch manager Broker Designated broker Managing broker
Designated broker
In addition to the required education and experience to request a substitution, what must applicants for a Washington managing broker's license submit with the application? An additional licensing fee Detailed resume Recommendation from designated broker Three reference letters
Detailed resume
Which of the following do a Washington broker, managing broker, designated broker, and real estate firm have in common? Each is considered a legal person. Each is considered a licensee. Each is considered a natural person. Each may hold a broker's license.
Each is considered a licensee.
Tanya has been a closing officer at Integrity First Title Company for eight years. She has a bachelor's degree in business finance. Which of the following statements is correct regarding her experience and the related Washington managing broker's exam? Even without a degree, Tanya's eight years of experience as a closing officer will likely qualify her. Tanya's degree isn't in real estate, so her experience doesn't qualify her to take the exam. Tanya's experience as a closing officer isn't related closely enough to real estate brokerage to qualify her. Tanya will be required to take only the state portion of the Washington licensing exam.
Even without a degree, Tanya's eight years of experience as a closing officer will likely qualify her.
How often are audits typically conducted on Washington brokerage transactional and accounting records? Every seven years Every three years Every two years Every year
Every three years
In general, applicants for a Washington managing broker's license may substitute ______ years of closely related experience for the three years of required broker experience. Eight Five Six Three
Five
Which of the following represents the Washington real estate industry's flow of governance from most authority to least authority? Commission, DOL, legislature Governor, DOL, commission Legislature, commission, DOL Real Estate Division, DOL, legislature
Governor, DOL, commission
Howard is a managing broker in Spokane. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What role does Howard play in this transaction? Howard is a dual agent for both the buyer and the seller. Howard is an agent to the buyer. Howard is an agent to the seller. Howard is a transactional coordinator.
Howard is a dual agent for both the buyer and the seller.
After beginning the investigation process into a complaint against a managing broker, the director is concerned that additional harm may be caused by waiting for the hearing process to take place. Which of the following options does the director have? Arrange for an immediate hearing. Have the broker arrested. Issue an emergency license suspension. Wait for the regularly scheduled hearing to take place.
Issue an emergency license suspension.
In order for a licensed firm to share commissions with another firm, what must be true of the second firm? It must be licensed to do business with the original firm. It must employ at least two licensed individuals. It must have been in business at least three years. It must share its financial records with the original firm.
It must be licensed to do business with the original firm.
Licensee Len receives an offer for his seller client's property. It's a good offer that Len thinks his client will accept. The only wrinkle is that it includes a one-quarter interest in a local hunting club as the earnest money deposit. Which of the following statements is true? It's Len's responsibility to research the title to the interest being offered as earnest money deposit, to ensure that it has value, before presenting the offer to his client. Len must inform his seller client of the form of earnest money before the seller signs the purchase contract. Len must inform the DOL if his seller client accepts this earnest money deposit since the DOL must approve any earnest money agreements for items other than cash or cash equivalents. Len should advise his seller client that only cash or cash equivalents may be used as earnest money.
Len must inform his seller client of the form of earnest money before the seller signs the purchase contract.
Washington licensees can maintain their licenses in inactive status as long as they want. Which of the following statements about the reactivation requirement is correct? A fee is required to reactivate an inactive license. Licensees whose licenses have been inactive for more than three years must complete 27 hours of coursework to reactivate. Licensees with inactive licenses aren't required to complete any coursework until they're ready to reactivate. Licensees with inactive licenses must continue to renew their licenses every two years.
Licensees with inactive licenses must continue to renew their licenses every two years.
Washington requires property management firms to execute written ______ with owners for whom they provide services. Agency agreements Employment contracts Management agreements Power of attorney
Management agreements
Which of these is an example of conversion of funds in Washington? Marcus converted a CD to cash and deposited it in the firm's operating account. Monica used funds from the firm's trust account to pay her firm's rent. Soo Min transferred funds from her firm's trust account to the closing company's trust account in time for settlement. Tristan deposited a client's earnest money check into the firm's operating account.
Monica used funds from the firm's trust account to pay her firm's rent.
Given the daily property tax rate, how can you calculate the prorated property tax amount to debit a seller and credit a buyer at closing? Multiply the daily rate times the number of days in the current month, including the closing day. Multiply the daily rate times the number of days left in the month, not including the closing day. Multiply the daily rate times the number of days the buyer will own the property during that tax year, not including the closing day. Multiply the daily rate times the number of days the seller owned the property, not including the closing day.
Multiply the daily rate times the number of days the seller owned the property, not including the closing day.
What's the minimum financial penalty that can be imposed for a violation of licensing law in Washington? $1,000 $250 $500 No minimum
No min
Martha, a Washington DOL staff member, worked diligently to gather evidence during the investigation phase of a disciplinary action. Can the director appoint her as the presiding officer for the hearing? No, because she participated in the investigation. No. She can't be appointed because she's not a judge. Yes, because she has expert knowledge of the facts of the case. Yes. The lead investigator is usually appointed as the presiding officer.
No, because she participated in the investigation.
Can a Washington firm pay its business expenses directly out of a trust account? No, they must be paid from a regular business account at the same bank Only if it is via signature of a promissory note Yes, by using a personal check from any licensees from the firm Yes, They can be paid directly out of the trust funds themselves
No, they must be paid from a regular business account at the same bank
It appears that Brianne's license in another state makes her eligible, under Washington's written recognition agreement, to get her Washington license. Which of the following is a step Brianne has to take to get the license? Obtain and submit to the DOL a certified license history from her home state. Pass the national portion of the Washington exam. Submit a detailed work history to the DOL. Take a 30-hour real estate law class and then take her exam.
Obtain and submit to the DOL a certified license history from her home state.
Which Washington office oversees administrative hearings? Attorney general's office Department of Licensing Office of Administrative Hearings Real estate division
Office of Administrative Hearings
When are real estate brokers allowed to work for the Washington State Department of Licensing? After they disclose any potential conflicts of interest After they've been practicing five years Once their licenses are inactivated When they have written permission from their designated brokers
Once their licenses are inactivated
Some Washington real estate brokerage records may be kept offsite if they're for transactions that closed how long ago? One year or more Six months or more Three years or more Two years or more
One year or more
A(n) ______ budget helps property managers maximize profitability and avoid unforeseen major expenses and repairs. Cash reserve Expense Operating Stabilized
Operating
What must a Washington designated broker do with a trust account every month? Close it if there are no active transactions. Perform reconciliation of the bank account statements. Send a copy of the bank statement to the Washington state treasurer. Use the interest to pay the account service fees.
Perform a reconciliation of the bank account statements.
What's part of the licensee's role in the closing process? Nothing Paying the closing fees Preparing clients for closing Preparing the closing documents
Preparing clients for closing
Margaret initially showed a property to Trina, who decided to wait to buy a house after all. But two weeks later, without notifying Margaret, Trina made an offer on the property through another brokerage firm. What term relates to the party (Margaret) who started the chain of events that led to this sale? Compensation cause Procuring cause Reasonable cause Sale cause
Procuring cause
Which of the following areas would be considered a "closely related field" as a substitution for broker experience on the Washington managing broker's license application? Home inspection Real estate accounting Real property appraisal Title insurance underwriter
Real property appraisal
Which of the following scenarios is an example of corrective maintenance that a property manager may oversee? Hiring an HVAC contractor to inspect the air conditioner annually Oiling door hinges every six months Replacing a section of roof after a leak Replacing furnace filters according to the manufacturer-suggested timeline
Replacing a section of roof after a leak
Carol passed her Washington licensing exam 14 months ago and hasn't applied for her license. What happens now, if she still wants to be a broker? She can apply to the DOL for an extension and then apply for her license. She'll need to take her exam again and then apply for her license. She must take a three-hour licensing review course and then apply for her license. She must take her coursework over and then apply for her license.
She'll need to take her exam again and then apply for her license.
Juanita holds an active broker's license in a state that has a written recognition agreement with Washington. She's worked as a managing broker for several years. Her license is in good standing. She moves to Washington. Which of the following is correct? She's eligible for a broker's license. She's eligible for a managing broker's license. She's eligible to take a 30-hour Washington course and then get her broker's license. She's eligible to take the state exam.
She's eligible to take the state exam.
Washington's director has elected to take steps to restrict a managing broker from supervising brokers until after the broker's hearing has taken place. What's the official term for this type of action? Permanent Summary Temporary Urgency
Summary
Washington's director has elected to take steps to restrict a managing broker from supervising brokers until after the broker's hearing has taken place. What's the official term for this type of action? Permanent Summary Temporary Urgency
Summary Summary action takes place without a hearing and is implemented by the director when an investigation uncovers acts that the director feels should be stopped immediately.
To what Washington court may parties to an administrative hearing appeal the ALJ's decision? Agency court Civil court Superior court Supreme court
Superior court
When homebuyers agree to open an escrow account for their mortgage, the mortgage lender uses that money to pay ______. Escrow fees Insurance and principal Taxes and insurance Taxes and principal
Taxes and insurance
With which entity is Washington's DOL director partnered in order to create a real estate research center? Gonzaga University The Runstad Center for Real Estate Studies The Washington Real Estate Commission Washington State University
The Runstad Center for Real Estate Studies
When a Washington broker makes a deposit into a trust account, the broker's records should show the date and payer of the deposit, and ______. How much interest it will accrue The associated brokerage transaction The bank account on which it was drawn The name of the bank employee who received it
The associated brokerage transaction
The designated broker at Tacoma Realty decides that maintaining and managing a trust account is too much work. What are the broker's options? The brokerage can hire a third party to manage its trust account operations. The brokerage firm can elect to have a third party, such as the closing company, hold the funds for each individual transaction. The brokerage firm can't work only with seller clients if it doesn't establish a trust account. The brokerage must maintain a trust account.
The brokerage firm can elect to have a third party, such as the closing company, hold the funds for each individual transaction.
The loan type and the amount of down payment impact _______. The closing costs the seller may contribute The closing date The loan origination fee charged The seller's net proceeds
The closing costs the seller may contribute The amount that a seller may contribute toward closing costs is based on the loan type and the amount of the down payment.
The Washington legislature has passed new licensing legislation designed to change the amount and type of education required for licensing. The director has proposed additional licensing rules to support the new legislation. What's the commission's role in this process? The commission has no responsibilities related to this new legislation. The commission must approve the new legislation before it can be signed into law. The commission will provide advice to the director regarding the necessary rules to support the new laws. The commission will serve as the legislature's ambassadors in gaining acceptance from those in the real estate industry.
The commission will provide advice to the director regarding necessary rules to support the new laws.
If a listing agreement doesn't state that the listing broker is permitted to share compensation with a cooperating broker, which of the following statements is true about a cooperating (selling) broker's responsibility under Washington law? A cooperating broker must include alternative methods of compensation in the buyer's brokerage agreement. The cooperating brokerage firm may decline to show to the buyer any properties for which there is no compensation agreement with the listing broker. The cooperating broker may require the buyer to pay a commission, even if it's not indicated in the written agreement. The listing brokerage firm is required to split its commission with the cooperating brokerage firm.
The cooperating brokerage firm may decline to show to the buyer any properties for which there is no compensation agreement with the listing broker.
Thomas, a Washington broker, received a notice of violation for having failed to provide records properly upon request. If he chooses to ignore the notice of violation, what may occur? He may be subject to arrest. His license may be automatically revoked. The case may be automatically moved to be heard in superior court. The director may issue a default judgment and impose sanctions based on whatever evidence is available.
The director may issue a default judgment and impose sanctions based on whatever evidence is available.
In Washington, which of the following statements about the duty to provide timely accounting for all funds and property received is true? Licensees owe this duty to their clients only. The duty doesn't include paperwork, only funds or property. The duty of accounting may continue even after the transaction closes. The duty requires licensees to deposit any funds they receive into their personal bank accounts for safekeeping.
The duty of accounting may continue even after the transaction closes.
Which of the following bodies is responsible for creating Washington real estate laws and statutes? The Department of Licensing The legislature The Real Estate Commission The Real Estate Division
The legislature
Kayleigh is closing on the house she's purchasing on Wednesday. Which of these statements is true? Kayleigh must receive the Loan Estimate at least three days before closing. The closing officer must deliver the Closing Disclosure at closing. The lender must provide the Closing Disclosure by Friday of the week before closing. The Loan Estimate amounts must be within 1/4 of a percent of the final settlement costs.
The lender must provide the Closing Disclosure by Friday of the week before closing.
The Washington Residential Landlord-Tenant Act establishes responsibilities for both landlords and tenants. How are the property manager's duties addressed by this act? The property manager is required to understand and abide by the owner's legal responsibilities to tenants. The property manager's duties are outlined in a separate section of the Washington Residential Landlord-Tenant Act. The property manager's duties to tenants are prescribed in the Washington Residential Property Management Act. The property manager works under the property management agreement with the landlord and isn't responsible for duties designated for the landlord.
The property manager is required to understand and abide by the owner's legal responsibilities to tenants.
Selena is a buyer who hasn't signed a representation agreement with anyone. Before Howie, a Washington broker, shows Selena a property for sale, he discloses that he represents the seller. Howie then shows Selena several properties his brokerage has listed. Who is Howie's client? His managing broker Selena The firm The seller
The seller
Which of the following statements describing a dual agent's responsibilities in Washington is the most accurate? A dual agent is only obligated to perform the statutory duty of honesty with the two clients in the relationship. A dual agent owes more statutory duties to each client in a transaction than would a single agent. A dual agent owes the same statutory duties to the clients in a transaction as a single agent. The statutory duty of loyalty to a client is very difficult to perform in a dual agency relationship, given the duties of loyalty, confidentiality, and care.
The statutory duty of loyalty to a client is very difficult to perform in a dual agency relationship, given the duties of loyalty, confidentiality, and care.
What's true about broker responsibilities in Washington? The only duties are those found in agency common law. They include but aren't limited to those in the regulations. They're limited to those duties outlined in the administrative regulations. They're prescribed only in statutory law.
They include but aren't limited to those in the regulations.
What's true about broker responsibilities in Washington? The only duties are those found in agency common law. They include but aren't limited to those in the regulations. They're limited to those duties outlined in the administrative regulations. They're prescribed only in statutory law.
They include but aren't limited to those in the regulations.
Charlie represents Sue, a buyer, in Redmond. Charlie is being paid by Claude, the seller, through his brokerage. What's true about this situation? Charlie is Claude's agent. Sue is Claude's customer. This doesn't change the agency relationships. This is undisclosed dual agency.
This doesn't change the agency relationships.
What is the maximum amount of time that can elapse between completing the required coursework and applying for a Washington managing broker's license? One year Six months Three years Two years
Three years
How do you create implied agency? Through agency disclosure Through express written agreement Through oral agreement Through the parties' actions
Through the parties' actions
George is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document? To detail the amount George needs to bring to closing To detail the estimated closing costs for George's loan To disclose the interest rates available on this lender's various loan programs To disclose the lender's source of loan funds
To detail the estimated closing costs for George's loan
What is the maximum amount of time that can elapse between completing the required coursework and applying for a Washington broker's license? One year Six months Three years Two years
Two years
Terrance is a managing broker in Washington. He's moving to a new firm. What does he have to do to transfer his license? Complete the replace process. Request approval from the Department of Licensing director. Use the reversion form and pay the correct fee. Use the same process as a broker.
Use the same process as a broker.
What must a Washington broker disclose to all parties in writing prior to signing a purchase offer? How many clients the broker currently represents How much the cooperating broker will earn Whether the broker represents one or more of the parties Whether the property appraised at the list price
Whether the broker represents one or more of the parties
In Washington, new licensees must complete a three-hour ______ course before their first renewal. Advanced practice Continuing education Core Real estate law
core
What's the term for a charge that either party has to pay at closing for a Washington real estate transaction? Balance Credit Debit Mortgage
debit
After completing the required coursework, a candidate has ______ year(s) to complete the Washington broker's exam. Five One Three Two
two
Brokers must deliver transactional documents and contracts to their managing or designated brokers within how many business days? Five One Three Two
two
In Washington, designated brokers must ensure that all contracts are submitted for recordkeeping at the brokerage no more than ______ days after the parties sign the contract. Five Seven Three Two
two
Joan is one of the Washington Commission's six board members. She qualified for appointment by having seven years' brokerage experience. She's one of at least _____ commission member(s) from east of the Cascade mountains. Four One Three Two
two