WASHINGTON STATE REAL ESTATE EXAM
BUNDLED WASHINGTON REAL ESTATE
FUNDAMENTALS FINAL PAPER 2026
QUESTIONS AND ANSWERS VERIFIED
GRADED A+
⩥ Real Estate Commission.
Answer: A commission made up of the Director of the Department of
Licensing and six commissioners who advise the Director.
⩥ Real estate firm.
Answer: A business entity, such as a corporation or partnership, that is
licensed to perform real estate brokerage activities in Washington.
⩥ Managing broker.
Answer: A person who is licensed to represent a firm in real estate
transactions and to supervise other licensees or a branch office.
⩥ Broker.
Answer: A person who is licensed to work for and represent a firm in
real estate transactions.
,⩥ Affiliated Licensee.
Answer: A broker or managing broker who is licensed under a particular
firm.
⩥ Designated broker.
Answer: person authorized to have full legal responsibility for a licensed
real estate firm and its affiliated licensees.
⩥ Business opportunity.
Answer: a business (including inventory and goodwill) that is for sale,
where the transaction includes real property
⩥ Interim license.
Answer: The completed application form for a broker's license, which
serves as a temporary license until the permanent license is issued.
⩥ Inactive License.
Answer: A license in the possession of the Director of the Department of
Licensing.
⩥ Fee Broker.
Answer: A designated broker who allows another person to use his
license to operate a brokerage (which is a violation of the license law).
, ⩥ Blind ad.
Answer: An advertisement placed by a real estate licensee that does not
state the name of the firm as licensed (which is a violation of the license
law).
⩥ Trust account.
Answer: a specially designated bank account in a firm's name for funds
held by the firm on behalf of clients, to keep those funds segregated
from the firm's own money
⩥ Commingling.
Answer: When someone who is holding trust funds on another person's
behalf intentionally or accidentally mixes those funds together with his
own money.
⩥ Conversion.
Answer: When someone who is holding trust funds on another person's
behalf misappropriates the funds with the intention of using them for her
own purposes.
⩥ Transaction folder.
Answer: part of the records a designated broker is required to keep; the
contracts and other documents connected with a particular transaction
BUNDLED WASHINGTON REAL ESTATE
FUNDAMENTALS FINAL PAPER 2026
QUESTIONS AND ANSWERS VERIFIED
GRADED A+
⩥ Real Estate Commission.
Answer: A commission made up of the Director of the Department of
Licensing and six commissioners who advise the Director.
⩥ Real estate firm.
Answer: A business entity, such as a corporation or partnership, that is
licensed to perform real estate brokerage activities in Washington.
⩥ Managing broker.
Answer: A person who is licensed to represent a firm in real estate
transactions and to supervise other licensees or a branch office.
⩥ Broker.
Answer: A person who is licensed to work for and represent a firm in
real estate transactions.
,⩥ Affiliated Licensee.
Answer: A broker or managing broker who is licensed under a particular
firm.
⩥ Designated broker.
Answer: person authorized to have full legal responsibility for a licensed
real estate firm and its affiliated licensees.
⩥ Business opportunity.
Answer: a business (including inventory and goodwill) that is for sale,
where the transaction includes real property
⩥ Interim license.
Answer: The completed application form for a broker's license, which
serves as a temporary license until the permanent license is issued.
⩥ Inactive License.
Answer: A license in the possession of the Director of the Department of
Licensing.
⩥ Fee Broker.
Answer: A designated broker who allows another person to use his
license to operate a brokerage (which is a violation of the license law).
, ⩥ Blind ad.
Answer: An advertisement placed by a real estate licensee that does not
state the name of the firm as licensed (which is a violation of the license
law).
⩥ Trust account.
Answer: a specially designated bank account in a firm's name for funds
held by the firm on behalf of clients, to keep those funds segregated
from the firm's own money
⩥ Commingling.
Answer: When someone who is holding trust funds on another person's
behalf intentionally or accidentally mixes those funds together with his
own money.
⩥ Conversion.
Answer: When someone who is holding trust funds on another person's
behalf misappropriates the funds with the intention of using them for her
own purposes.
⩥ Transaction folder.
Answer: part of the records a designated broker is required to keep; the
contracts and other documents connected with a particular transaction
