30-Hour WA Real Estate Practice Exam|
Complete Study Guide with Actual Exam
Questions, Correct Answers and Detailed
Rationales| Latest Update 2026/2027
Question 1
You are recording an accrued expense for your seller client, Sam Bosworth. This
represents an item that Sam ____________________.
Answer: Has incurred but hasn't paid. ✔✔
Rationale: Accrued expenses are costs that have been incurred during the accounting
period but have not yet been paid. These appear as liabilities on the seller's closing
statement.
Question 2
Because proper trust fund handling and record keeping is extremely important, the
________ conducts routine audits of real estate companies.
Answer: Washington State Department of Licensing. ✔✔
Rationale: The Washington State Department of Licensing (DOL) conducts routine
audits to ensure real estate companies comply with trust fund handling and record-
keeping requirements.
Question 3
Karen would like to sell her own home. What's the minimum real estate license she must
possess?
Answer: None. ✔✔
Rationale: Property owners are not required to hold a real estate license to sell their
own property, provided they are not acting as an agent for others.
Question 4
Carla is selling her house in Wenatchee to her sister. Neither party wants to be
pg. 1
,represented. They only want some assistance with handling the paperwork. Who should
they consider engaging in this situation?
Answer: Transaction coordinator. ✔✔
Rationale: A transaction coordinator assists with paperwork without providing
representation, ideal when parties prefer to handle the transaction independently.
Question 5
Which designation may you not use in any marketing materials unless you belong to
NAR?
Answer: REALTOR. ✔✔
Rationale: The term REALTOR is a registered trademark of the National Association
of REALTORS and can only be used by members.
Question 6
What's part of the licensee's role in the closing process?
Answer: Preparing clients for closing. ✔✔
Rationale: Licensees prepare clients by reviewing closing documents, explaining the
process, and ensuring clients understand their financial obligations.
Question 7
Cheryl Ann received a summary judgment from the DOL because she did not ______
within 20 days of receiving notice of a DOL investigation.
Answer: Request a hearing. ✔✔
Rationale: Failing to request a hearing within 20 days of receiving notice results in a
summary judgment, waiving the right to contest the allegations.
Question 8
How are Washington commission members selected?
Answer: Appointed by the governor. ✔✔
Rationale: Members of the Washington Real Estate Commission are appointed by the
governor to serve specific terms.
pg. 2
,Question 9
In Washington, the buyer usually pays for which of the following title insurance
policies?
Answer: Lender's title insurance. ✔✔
Rationale: The buyer typically pays for the lender's title insurance policy, which
protects the lender's interest in the property.
Question 10
Amendments to a Washington property management agreement must be ______.
Answer: Written. ✔✔
Rationale: Any amendment to a property management agreement must be in writing
to be enforceable.
Question 11
In Washington, a designated broker holds a ______ license.
Answer: Managing broker's. ✔✔
Rationale: A designated broker must hold a managing broker's license with a special
endorsement from the DOL.
Question 12
Which one of the following entities is responsible for creating Washington real estate
laws and statutes?
Answer: The legislature. ✔✔
Rationale: The Washington State Legislature creates real estate laws and statutes; the
DOL enforces them.
Question 13
Licensee compensation is funneled through the broker. Who may pay the compensation
that goes through the broker?
Answer: A party to the transaction, a third party, or another broker. ✔✔
Rationale: Compensation must be paid through the broker, but the payer can be any
party involved in or related to the transaction.
pg. 3
, Question 14
Frank, a Washington broker, wants to open his own real estate firm. Which of the
following statements is true?
Answer: Frank must either hire a designated broker or be endorsed as one himself. ✔✔
Rationale: A real estate firm must have a designated broker; Frank must either qualify
as one or hire one.
Question 15
In Washington, what kind of license is issued to a corporation that performs brokerage
services?
Answer: Firm. ✔✔
Rationale: A corporation performing brokerage services must hold a firm license
issued by the DOL.
Question 16
In Washington, which agency is authorized to disseminate and enforce real estate
licensing laws?
Answer: Department of Licensing. ✔✔
Rationale: The DOL has the authority to disseminate and enforce real estate licensing
laws.
Question 17
If a Washington real estate firm is closing, the firm's designated broker must provide an
affidavit to the Washington DOL within ______ days.
Answer: Five. ✔✔
Rationale: When closing a firm, the designated broker must submit an affidavit to the
DOL within five days.
Question 18
How does Washington define subagency?
Answer: An agent appointed by another agent to assist the principal. ✔✔
Rationale: A subagent is appointed by another agent to assist in representing the
principal.
pg. 4
Complete Study Guide with Actual Exam
Questions, Correct Answers and Detailed
Rationales| Latest Update 2026/2027
Question 1
You are recording an accrued expense for your seller client, Sam Bosworth. This
represents an item that Sam ____________________.
Answer: Has incurred but hasn't paid. ✔✔
Rationale: Accrued expenses are costs that have been incurred during the accounting
period but have not yet been paid. These appear as liabilities on the seller's closing
statement.
Question 2
Because proper trust fund handling and record keeping is extremely important, the
________ conducts routine audits of real estate companies.
Answer: Washington State Department of Licensing. ✔✔
Rationale: The Washington State Department of Licensing (DOL) conducts routine
audits to ensure real estate companies comply with trust fund handling and record-
keeping requirements.
Question 3
Karen would like to sell her own home. What's the minimum real estate license she must
possess?
Answer: None. ✔✔
Rationale: Property owners are not required to hold a real estate license to sell their
own property, provided they are not acting as an agent for others.
Question 4
Carla is selling her house in Wenatchee to her sister. Neither party wants to be
pg. 1
,represented. They only want some assistance with handling the paperwork. Who should
they consider engaging in this situation?
Answer: Transaction coordinator. ✔✔
Rationale: A transaction coordinator assists with paperwork without providing
representation, ideal when parties prefer to handle the transaction independently.
Question 5
Which designation may you not use in any marketing materials unless you belong to
NAR?
Answer: REALTOR. ✔✔
Rationale: The term REALTOR is a registered trademark of the National Association
of REALTORS and can only be used by members.
Question 6
What's part of the licensee's role in the closing process?
Answer: Preparing clients for closing. ✔✔
Rationale: Licensees prepare clients by reviewing closing documents, explaining the
process, and ensuring clients understand their financial obligations.
Question 7
Cheryl Ann received a summary judgment from the DOL because she did not ______
within 20 days of receiving notice of a DOL investigation.
Answer: Request a hearing. ✔✔
Rationale: Failing to request a hearing within 20 days of receiving notice results in a
summary judgment, waiving the right to contest the allegations.
Question 8
How are Washington commission members selected?
Answer: Appointed by the governor. ✔✔
Rationale: Members of the Washington Real Estate Commission are appointed by the
governor to serve specific terms.
pg. 2
,Question 9
In Washington, the buyer usually pays for which of the following title insurance
policies?
Answer: Lender's title insurance. ✔✔
Rationale: The buyer typically pays for the lender's title insurance policy, which
protects the lender's interest in the property.
Question 10
Amendments to a Washington property management agreement must be ______.
Answer: Written. ✔✔
Rationale: Any amendment to a property management agreement must be in writing
to be enforceable.
Question 11
In Washington, a designated broker holds a ______ license.
Answer: Managing broker's. ✔✔
Rationale: A designated broker must hold a managing broker's license with a special
endorsement from the DOL.
Question 12
Which one of the following entities is responsible for creating Washington real estate
laws and statutes?
Answer: The legislature. ✔✔
Rationale: The Washington State Legislature creates real estate laws and statutes; the
DOL enforces them.
Question 13
Licensee compensation is funneled through the broker. Who may pay the compensation
that goes through the broker?
Answer: A party to the transaction, a third party, or another broker. ✔✔
Rationale: Compensation must be paid through the broker, but the payer can be any
party involved in or related to the transaction.
pg. 3
, Question 14
Frank, a Washington broker, wants to open his own real estate firm. Which of the
following statements is true?
Answer: Frank must either hire a designated broker or be endorsed as one himself. ✔✔
Rationale: A real estate firm must have a designated broker; Frank must either qualify
as one or hire one.
Question 15
In Washington, what kind of license is issued to a corporation that performs brokerage
services?
Answer: Firm. ✔✔
Rationale: A corporation performing brokerage services must hold a firm license
issued by the DOL.
Question 16
In Washington, which agency is authorized to disseminate and enforce real estate
licensing laws?
Answer: Department of Licensing. ✔✔
Rationale: The DOL has the authority to disseminate and enforce real estate licensing
laws.
Question 17
If a Washington real estate firm is closing, the firm's designated broker must provide an
affidavit to the Washington DOL within ______ days.
Answer: Five. ✔✔
Rationale: When closing a firm, the designated broker must submit an affidavit to the
DOL within five days.
Question 18
How does Washington define subagency?
Answer: An agent appointed by another agent to assist the principal. ✔✔
Rationale: A subagent is appointed by another agent to assist in representing the
principal.
pg. 4
