WA State Real Estate Exam (2026)
comprehensive questions and verified
answers ( detailed & elaborated)
ACTUAL EXAM 2026 TEST!!
A home inspection revealed that black mold is present in a home. What should the
buyer's agent tell the buyer?
A. That black mold is toxic, and that the buyer should not buy the house
B. That mold is commonplace, and can be cleaned up with bleach
C. To require the seller to remedy the problem
D. To seek expert advice - answer-answer:
D: seek expert advise
A buyer's agent typically does not have expertise in environmental hazards. The proper
step, for the matters in a transaction outside the agent's expertise, is to advise the
principal to seek expert advice. In this case, that would be a mold remediation
specialist.
A seller wants to net $60,000 from a transaction, but will have to pay off a mortgage and
other fees, at a total cost of $181,800. The seller will also need to pay a 7%
commission. What will the property need to sell for?
A. $241,800
B. $258,726
C. $260,000
D. $276,060 - answer-Answer:
C: $260,000
Start by adding the desired net and the other cost, including the mortgage ($60,000 +
$181,800 + $241,800).
Subtract the commission percentage from 100% (100% -7%=93%)
Then divide the total by that percentage ($241,800 / .93 = $260,000)
Since the agent bases her commission on the total selling price, you can't simply add
7% of the costs and profit to the selling price or you wont quite have her full
commission. You need a price that the agent can take 7% from and still satisfy the
seller's goals. A fuller explanation is found in the section on seller's net problems in ch.
18 of Fundamentals.
,A buyer asks the buyer's agent to write an offer on terms that don't match the listing
agreement. The buyer's agent refuses to write the offer and then, in writing, unilaterally
terminates the agency relationship with the buyer. Which is true?
A. Buyer's agent will be subject to disciplinary action
B. Buyer's agent is permitted to unilaterally terminate the agency relationship
C. Buyer's agent is allowed to terminate the agency, but must write the offer before
terminating
D. Buyer's agent is not permitted to write such an offer - answer-answer:
B. Buyer's agent is permitted to unilaterally terminate the agency relationship
An agent may unilaterally renounce an agency relationship. Termination of the agency
may involve a breach of contract; if so, the agent could be liable to the principal for
damages resulting from the breach. However, breach of contract isn't in itself grounds
for disciplinary action. Failure to present an offer is grounds for disciplinary action; but
here, since the agent didn't write the offer, no offer exists yet. (An agent is free to
renounce rather than help the principal do something pointless or unwise.)
Closing is set for August 1. The seller has already paid the property taxes for the year,
totaling $6,000. How much of that amount is the buyer's responsibility?
A. $2,000
B. $2,500
C. $3,000
D. $3,500 - answer-answer
B: $2,500
Since the buyer is taking title on August 1, she's responsible for the property taxes for
the remaining five months of the year (August, September, October, November, and
December). Divide the annual taxes by 12 to find the monthly amount: $6, -
$500. Multiply that figure by 5 to determine the buyer's share of taxes: 5 x $500 = $2500
(Generally the state will tell you when to treat all months as equal, but here even set of
dollar amounts in the answers lets you know that)
The IRS issues rules that determine when a real estate agent is an employee and when
he is an independent contractor. Which of the following statements on that topic is
FALSE?
A: The brokerage may allow an independent contractor to place her own ads but the
ads must conform with the firm's advertising rules
B. The brokerage may require an independent contractor to have a cell phone
C. The brokerage will take taxes from an employee's paycheck
D. The brokerage will tell an employee when to work certain hours - answer-answer
B. The brokerage may require an independent contractor to have a cell phone
,This question is a bit dated but you may encounter something similar on the license
exam. That said, one of the key differences between employees and independent
contractors is the level of supervision; an independent contractor uses his judgment
how to perform a task, while an employee receives specific instructions on how to
accomplish each task.
An instruction to carry a particular equipment doesn't particularly suggest an
independent contractor
relationship, making B the only possible answer. But certainly all agents carry cell
phones now whether instructed to do so or not.
A tenant has already paid his $1,200 rent for the month for a single-family property. The
property's owner sells it to a new buyer, with closing occurring on the 15th of June. The
parties decide the seller is entitled to rent for the closing date. On the settlement
statement, the prorated rent will appear as a:
A. $600 debit for the buyer and a $600 credit for the seller
B. $600 debit for the seller and a $600 credit for the buyer
C. $1,200 credit for the buyer
D. $1,200 credit for the seller - answer-Correct Answer: B
36% of students missed this question
The rent has already been paid to the seller, so the seller will need to give some of that
rent to the buyer. The buyer's prorated share will be a debit for the seller and a credit for
the buyer on the settlement statement. The seller's share is for the 1st through the 15th
(15 days), and the buyer's share is for the 16th through the 30th (also 15 days), so the
$1,200 can be divided in half. The settlement statement will show a $600 debit for the
seller and a $600 credit for the buyer.
Mineral rights associated with real property are always:
A. conveyed along with the surface rights to the property
B. separable and divisible
C. sold separately from the property
D. an interest in personal property - answer-Correct Answer: B
27% of students missed this question
Mineral rights may be sold separately from the land. However, they are appurtenant to
the land and will be
conveyed with the land unless there is an agreement otherwise.
John, Kevin, and Lyle own a property as tenants in common, but only Kevin and Lyle
live on the property. John would like to sell the property for redevelopment, but Kevin
and Lyle refuse. What is John's best option?
, A. Charge Kevin and Lyle rent
B. Create a trust to manage the property
C. Evict Kevin and Lyle
D. Obtain a court order to sell the property - answer-Correct Answer: D
When co-owners can't agree on whether to sell or how to divide their property, one or
more of them may file a
partition action to terminate the co-ownership. If there isn't a feasible way to physically
divide the property, the
court will order that the property be sold and the sale proceeds be divided between the
former co-owners.
W, age 17, enters into an installment contract to purchase a five-year-old car from S, an
adult. From a legal point of view, the contract is:
A. void
B. voidable by W only
C. voidable by S only
D. voidable by either S or W - answer-Answer: B
The contract is voidable by the minor, but not by the other party.
An investor wants to invest $250,000 in the development of a strip mall by taking out a
loan secured by a residential property that he owns. Will the Truth in Lending Act apply
to this transaction?
A. Yes, because the loan is for less than $500,000
B. Yes, because the loan is secured by residential property
C. No, because the loan is for more than $50,000
D. No, because this is a commercial transaction - answer-Answer: D
22% of students missed this question
The Truth in Lending Act covers consumer loans--loans used for personal, family, or
household purposes. Since
this borrower is going to use the proceeds for a commercial purpose (developing a
business property), TILA does not apply, even if the loan is secured by owner-occupied
residential property. (By contrast, if the proceeds of a loan against real property are
used to send a child to college, for example, then TILA would apply.)
While preparing a competitive market analysis, an agent finds four comparables to
choose from. Comparable 1 sold for $180,000 13 months ago under normal conditions.
Comparable 2 sold for $190,000 14 months ago under normal conditions. Comparable 3
sold for $175,000 10 months ago as a foreclosure. Comparable 4 sold for $180,000 16
months ago as a foreclosure. The agent should use:
A. the oldest two
comprehensive questions and verified
answers ( detailed & elaborated)
ACTUAL EXAM 2026 TEST!!
A home inspection revealed that black mold is present in a home. What should the
buyer's agent tell the buyer?
A. That black mold is toxic, and that the buyer should not buy the house
B. That mold is commonplace, and can be cleaned up with bleach
C. To require the seller to remedy the problem
D. To seek expert advice - answer-answer:
D: seek expert advise
A buyer's agent typically does not have expertise in environmental hazards. The proper
step, for the matters in a transaction outside the agent's expertise, is to advise the
principal to seek expert advice. In this case, that would be a mold remediation
specialist.
A seller wants to net $60,000 from a transaction, but will have to pay off a mortgage and
other fees, at a total cost of $181,800. The seller will also need to pay a 7%
commission. What will the property need to sell for?
A. $241,800
B. $258,726
C. $260,000
D. $276,060 - answer-Answer:
C: $260,000
Start by adding the desired net and the other cost, including the mortgage ($60,000 +
$181,800 + $241,800).
Subtract the commission percentage from 100% (100% -7%=93%)
Then divide the total by that percentage ($241,800 / .93 = $260,000)
Since the agent bases her commission on the total selling price, you can't simply add
7% of the costs and profit to the selling price or you wont quite have her full
commission. You need a price that the agent can take 7% from and still satisfy the
seller's goals. A fuller explanation is found in the section on seller's net problems in ch.
18 of Fundamentals.
,A buyer asks the buyer's agent to write an offer on terms that don't match the listing
agreement. The buyer's agent refuses to write the offer and then, in writing, unilaterally
terminates the agency relationship with the buyer. Which is true?
A. Buyer's agent will be subject to disciplinary action
B. Buyer's agent is permitted to unilaterally terminate the agency relationship
C. Buyer's agent is allowed to terminate the agency, but must write the offer before
terminating
D. Buyer's agent is not permitted to write such an offer - answer-answer:
B. Buyer's agent is permitted to unilaterally terminate the agency relationship
An agent may unilaterally renounce an agency relationship. Termination of the agency
may involve a breach of contract; if so, the agent could be liable to the principal for
damages resulting from the breach. However, breach of contract isn't in itself grounds
for disciplinary action. Failure to present an offer is grounds for disciplinary action; but
here, since the agent didn't write the offer, no offer exists yet. (An agent is free to
renounce rather than help the principal do something pointless or unwise.)
Closing is set for August 1. The seller has already paid the property taxes for the year,
totaling $6,000. How much of that amount is the buyer's responsibility?
A. $2,000
B. $2,500
C. $3,000
D. $3,500 - answer-answer
B: $2,500
Since the buyer is taking title on August 1, she's responsible for the property taxes for
the remaining five months of the year (August, September, October, November, and
December). Divide the annual taxes by 12 to find the monthly amount: $6, -
$500. Multiply that figure by 5 to determine the buyer's share of taxes: 5 x $500 = $2500
(Generally the state will tell you when to treat all months as equal, but here even set of
dollar amounts in the answers lets you know that)
The IRS issues rules that determine when a real estate agent is an employee and when
he is an independent contractor. Which of the following statements on that topic is
FALSE?
A: The brokerage may allow an independent contractor to place her own ads but the
ads must conform with the firm's advertising rules
B. The brokerage may require an independent contractor to have a cell phone
C. The brokerage will take taxes from an employee's paycheck
D. The brokerage will tell an employee when to work certain hours - answer-answer
B. The brokerage may require an independent contractor to have a cell phone
,This question is a bit dated but you may encounter something similar on the license
exam. That said, one of the key differences between employees and independent
contractors is the level of supervision; an independent contractor uses his judgment
how to perform a task, while an employee receives specific instructions on how to
accomplish each task.
An instruction to carry a particular equipment doesn't particularly suggest an
independent contractor
relationship, making B the only possible answer. But certainly all agents carry cell
phones now whether instructed to do so or not.
A tenant has already paid his $1,200 rent for the month for a single-family property. The
property's owner sells it to a new buyer, with closing occurring on the 15th of June. The
parties decide the seller is entitled to rent for the closing date. On the settlement
statement, the prorated rent will appear as a:
A. $600 debit for the buyer and a $600 credit for the seller
B. $600 debit for the seller and a $600 credit for the buyer
C. $1,200 credit for the buyer
D. $1,200 credit for the seller - answer-Correct Answer: B
36% of students missed this question
The rent has already been paid to the seller, so the seller will need to give some of that
rent to the buyer. The buyer's prorated share will be a debit for the seller and a credit for
the buyer on the settlement statement. The seller's share is for the 1st through the 15th
(15 days), and the buyer's share is for the 16th through the 30th (also 15 days), so the
$1,200 can be divided in half. The settlement statement will show a $600 debit for the
seller and a $600 credit for the buyer.
Mineral rights associated with real property are always:
A. conveyed along with the surface rights to the property
B. separable and divisible
C. sold separately from the property
D. an interest in personal property - answer-Correct Answer: B
27% of students missed this question
Mineral rights may be sold separately from the land. However, they are appurtenant to
the land and will be
conveyed with the land unless there is an agreement otherwise.
John, Kevin, and Lyle own a property as tenants in common, but only Kevin and Lyle
live on the property. John would like to sell the property for redevelopment, but Kevin
and Lyle refuse. What is John's best option?
, A. Charge Kevin and Lyle rent
B. Create a trust to manage the property
C. Evict Kevin and Lyle
D. Obtain a court order to sell the property - answer-Correct Answer: D
When co-owners can't agree on whether to sell or how to divide their property, one or
more of them may file a
partition action to terminate the co-ownership. If there isn't a feasible way to physically
divide the property, the
court will order that the property be sold and the sale proceeds be divided between the
former co-owners.
W, age 17, enters into an installment contract to purchase a five-year-old car from S, an
adult. From a legal point of view, the contract is:
A. void
B. voidable by W only
C. voidable by S only
D. voidable by either S or W - answer-Answer: B
The contract is voidable by the minor, but not by the other party.
An investor wants to invest $250,000 in the development of a strip mall by taking out a
loan secured by a residential property that he owns. Will the Truth in Lending Act apply
to this transaction?
A. Yes, because the loan is for less than $500,000
B. Yes, because the loan is secured by residential property
C. No, because the loan is for more than $50,000
D. No, because this is a commercial transaction - answer-Answer: D
22% of students missed this question
The Truth in Lending Act covers consumer loans--loans used for personal, family, or
household purposes. Since
this borrower is going to use the proceeds for a commercial purpose (developing a
business property), TILA does not apply, even if the loan is secured by owner-occupied
residential property. (By contrast, if the proceeds of a loan against real property are
used to send a child to college, for example, then TILA would apply.)
While preparing a competitive market analysis, an agent finds four comparables to
choose from. Comparable 1 sold for $180,000 13 months ago under normal conditions.
Comparable 2 sold for $190,000 14 months ago under normal conditions. Comparable 3
sold for $175,000 10 months ago as a foreclosure. Comparable 4 sold for $180,000 16
months ago as a foreclosure. The agent should use:
A. the oldest two
