Washington State portion Real Estate Exam Questions & Answers

Rebecca receives an earnest money deposit in the amount of $12,000. Which of the following statements best describes the deposit of this trust money? Rebecca may deposit it in the firm's regular trust account. Rebecca must deposit it in an individual trust account set up for just this client. Rebecca must deposit the funds in a non-interest bearing trust account. Rebecca must deposit the funds into a DOL special trust fund account. - Answer **Rebecca may deposit it in the firm's regular trust account. In Washington, licensees renewing for the first time will complete ______ hours in advanced practice coursework, ______ hours in real estate law, ______ hours of continuing education coursework, and a ______-hour core course. 15, 15, 27, 4 30, 30, 27, 3 30, 30, 30, 4 90, 90, 30, 3 - Answer 30, 30, 27, 3 In addition to the required education and experience to request a substitution, what must applicants for a Washington managing broker's license submit with the application? An additional licensing fee Detailed resume Recommendation from designated broker Three reference letters - Answer Detailed resume When are real estate brokers allowed to work for the Washington State Department of Licensing? After they disclose any potential conflicts of interest After they've been practicing five years Once their licenses are inactivated When they have written permission from their designated brokers - Answer Once their licenses are inactivated Who may supervise a managing broker in Washington? A broker A managing broker The DOL director The real estate commission - Answer A managing broker George is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document? To detail the amount George needs to bring to closing To detail the estimated closing costs for George's loan To disclose the interest rates available on this lender's various loan programs To disclose the lender's source of loan funds - Answer To detail the estimated closing costs for George's loan Licensee Len receives an offer for his seller client's property. It's a good offer that Len thinks his client will accept. The only wrinkle is that it includes a one-quarter interest in a local hunting club as the earnest money deposit. Which of the following statements is true? It's Len's responsibility to research the title to the interest being offered as earnest money deposit, to ensure that it has value, before presenting the offer to his client. Len must inform his seller client of the form of earnest money before the seller signs the purchase contract. Len must inform the DOL if his seller client accepts this earnest money deposit since the DOL must approve any earnest money agreements for items other than cash or cash equivalents. Len should advise his seller client that only cash or cash equivalents may be used as earnest money. - Answer Len must inform his seller client of the form of earnest money before the seller signs the purchase contract. In order for a licensed firm to share commissions with another firm, what must be true of the second firm? It must be licensed to do business with the original firm. It must employ at least two licensed individuals. It must have been in business at least three years. It must share its financial records with the original firm. - Answer It must be licensed to do business with the original firm. Charlie represents Sue, a buyer, in Redmond. Charlie is being paid by Claude, the seller, through his brokerage. What's true about this situation? Charlie is Claude's agent. Sue is Claude's customer. This doesn't change the agency relationships. This is undisclosed dual agency. - Answer This doesn't change the agency relationships. Thomas, a Washington broker, received a notice of violation for having failed to provide records properly upon request. If he chooses to ignore the notice of violation, what may occur? He may be subject to arrest. His license may be automatically revoked. The case may be automatically moved to be heard in superior court. The director may issue a default judgment and impose sanctions based on whatever evidence is available. - Answer The director may issue a default judgment and impose sanctions based on whatever evidence is available. In Washington, how many hours of coursework must an applicant complete before applying for a managing broker's license? 120 30 60 90 - Answer 90 The Washington legislature has passed new licensing legislation designed to change the amount and type of education required for licensing. The director has proposed additional licensing rules to support the new legislation. What's the commission's role in this process? The commission has no responsibilities related to this new legislation. The commission must approve the new legislation before it can be signed into law. The commission will provide advice to the director regarding the necessary rules to support the new laws. The commission will serve as the legislature's ambassadors in gaining acceptance from those in the real estate industry. - Answer The commission will provide advice to the director regarding necessary rules to support the new laws. In Washington, new licensees must complete a three-hour ______ course before their first renewal. Advanced practice Continuing education Core Real estate law - Answer core If a listing agreement doesn't state that the listing broker is permitted to share compensation with a cooperating broker, which of the following statements is true about a cooperating (selling) broker's responsibility under Washington law? A cooperating broker must include alternative methods of compensation in the buyer's brokerage agreement. The cooperating brokerage firm may decline to show to the buyer any properties for which there is no compensation agreement with the listing broker. The cooperating broker may require the buyer to pay a commission, even if it's not indicated in the written agreement. The listing brokerage firm is required to split its commission with the cooperating brokerage firm. - Answer The cooperating brokerage firm may decline to show to the buyer any properties for which there is no compensation agreement with the listing broker. Terrance is a managing broker in Washington. He's moving to a new firm. What does he have to do to transfer his license? Complete the replace process. Request approval from the Department of Licensing director. Use the reversion form and pay the correct fee. Use the same process as a broker. - Answer Use the same process as a broker. Based on Washington statutory duties, which of the following is a material fact? Based on a recent city council ruling, the buyer will be unable to use the property for the intended purpose. Property conditions that are discovered through the broker's required personal property inspection. Property values in the area are expected to rise sharply in the coming year. The buyer's lender has confirmed that the loan will most likely be approved. - Answer Based on a recent city council ruling, the buyer will be unable to use the property for the intended purpose. Carol passed her Washington licensing exam 14 months ago and hasn't applied for her license. What happens now, if she still wants to be a broker? She can apply to the DOL for an extension and then apply for her license. She'll need to take her exam again and then apply for her license. She must take a three-hour licensing review course and then apply for her license. She must take her coursework over and then apply for her license. - Answer She'll need to take her exam again and then apply for her license. What passing score must a candidate achieve on the Washington broker's exam? 65 70 75 80 - Answer 70% Martha, a Washington DOL staff member, worked diligently to gather evidence during the investigation phase of a disciplinary action. Can the director appoint her as the presiding officer for the hearing? No, because she participated in the investigation. No. She can't be appointed because she's not a judge. Yes, because she has expert knowledge of the facts of the case. Yes. The lead investigator is usually appointed as the presiding officer. - Answer No, because she participated in the investigation. When a Washington broker makes a deposit into a trust account, the broker's records should show the date and payer of the deposit, and ______. How much interest it will accrue The associated brokerage transaction The bank account on which it was drawn The name of the bank employee who received it - Answer The associated brokerage transaction Margaret initially showed a property to Trina, who decided to wait to buy a house after all. But two weeks later, without notifying Margaret, Trina made an offer on the property through another brokerage firm. What term relates to the party (Margaret) who started the chain of events that led to this sale? Compensation cause Procuring cause Reasonable cause Sale cause - Answer Procuring cause