WASHINGTON STATE REAL ESTATE
PROPERTY VALUATION AND APPRAISAL
QUESTION BANK 2026
◉ 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
PROPERTY VALUATION AND APPRAISAL
QUESTION BANK 2026
◉ 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
