Verified Practice Questions & Answers
with Detailed Rationales (2026 Edition)
1. Which statement best describes the legal effect of a
broker acting as a dual agent in Washington?
A. The broker may advocate for one party if disclosed
B. The broker must obtain written consent and maintain
neutrality between both parties
C. Dual agency is permitted without disclosure if both parties
agree orally
D. The broker automatically becomes a transaction broker
without consent
Rationale: In Washington, dual agency is legal only with
informed written consent from both parties. The broker must
remain impartial and cannot advocate for either side, which
distinguishes it from single agency representation.
2. Under Washington law, a real estate broker’s primary
duty to a client includes all EXCEPT:
A. Loyalty
B. Confidentiality
C. Reasonable care and diligence
D. Guaranteeing property value accuracy
,Rationale: Brokers owe fiduciary duties such as loyalty and
care but are not permitted to guarantee property values, as
valuation is influenced by market conditions and independent
appraisal.
3. Which document is required in Washington before a
buyer signs an agency agreement?
A. Lead-based paint disclosure
B. FIRPTA affidavit
C. Agency Law Disclosure form
D. Property condition report
Rationale: Washington requires disclosure of agency
relationships at the earliest practical opportunity, typically
through the Agency Law Disclosure form.
4. A broker in Washington who receives earnest money
must:
A. Deposit it within 7 business days
B. Deposit it into a trust account by the end of the next
banking day after receipt
C. Hold it until closing instructions are signed
D. Deposit it only after mutual acceptance of contract
contingencies
Rationale: Washington law requires prompt deposit of
earnest money, generally by the next banking day, into a trust
account.
,5. Which of the following BEST defines “material fact” in
real estate disclosure?
A. Any fact requested by the seller
B. A fact that would influence a reasonable buyer’s decision
to purchase or price
C. Only structural defects
D. Only facts listed in the listing agreement
Rationale: A material fact is any information that could
influence a reasonable person’s decision in a transaction.
6. In Washington, a real estate license is issued by:
A. The Washington Association of Realtors
B. County Recorder’s Office
C. Washington State Department of Licensing (DOL)
D. Federal Housing Administration
Rationale: The Washington State Department of Licensing
regulates and issues real estate broker licenses.
7. Which contract element is NOT required for
enforceability?
A. Mutual consent
B. Legal purpose
C. Consideration
D. Recording with county auditor
, Rationale: Recording is not required for contract
enforceability; it is primarily for public notice regarding
property interests.
8. A listing agreement without an expiration date in
Washington is considered:
A. Void
B. Automatically renewed annually
C. Enforceable but terminable at will under reasonable
notice rules
D. Converted to a net listing
Rationale: While improper, such agreements may still be
enforceable but can be terminated under reasonable notice
provisions.
9. The statute of frauds requires which of the following?
A. Oral agreements for leases under one year
B. Written agreements for real estate transactions involving
property interests
C. Notarization of all contracts
D. Witness signatures for all sales contracts
Rationale: The statute of frauds requires certain contracts,
including real estate transfers, to be in writing.
10. A “novation” in real estate refers to: