Washington Real Estate Practices Exam Questions & Answers

Washington Real Estate Practices Exam Questions & Answers Budgeting and Planning - Ans ️️ -New agents should treat the beginning of their career like starting a new business. This means having a business plan, developing a budget, purchasing equipment, and planning for other expenses. The Real Estate Brokerage Relationships Act - Ans ️️ -is the Washington statute that governs agency relationships in real estate transactions. For the most part, it supersedes general agency law in the real estate context. Reasonable Care and Skill - Ans ️️ -A licensee owes all parties the duty to use reasonable care and skill in a transaction. His actions must meet or exceed the standard set by reasonably competent real estate agents. Honesty and good faith - Ans ️️ -A licensee owes all parties the duty to act with honesty and good faith. The licensee must not make false or misleading statements or conceal material information, even if it would benefit her client. An agent's authorized actions - Ans ️️ -are legally binding on the principal, as if the principal had performed those actions himself. Vicarious liability - Ans ️️ -Under general agency law, a principal may be held liable for harm caused by his agent. This is called vicarious liability. Under Washington's real estate agency statute, vicarious liability has been severely restricted in real estate transactions, so that a buyer or seller generally won't be held liable for harm caused by a real estate agent. However, a designated broker, or a managing broker in a supervisory role, is vicariously liable for the actions of her agents (affiliated licensees). Creating an agency under common law - Ans ️️ -Under the old common law rules, an agency relationship could be created through express agreement, ratification, estoppel, or implication. Creating a real estate agency - Ans ️️ -Under Washington's real estate agency statute, an agency relationship can be created by express agreement, or just by rendering real estate brokerage services to a buyer. A licensee working with a buyer is the buyer's agent unless there is a written agreement to the contrary (such as a listing agreement). Licensee as principal - Ans ️️ -When a real estate licensee buys or sells property for herself, she must disclose to the other party that she is a real estate licensee, that she's entering into the transaction for her own benefit, and that she intends to make a profit. Establishing Seller Agency - Ans ️️ -A seller agency relationship is established when the seller signs a listing agreement. The listing firm, the listing broker, and the supervising broker(s) usually become the seller's agents under the agreement. Sellers agents and buyers - Ans ️️ -An agent representing a seller can provide a variety of services to a buyer without violating agency duties owed to the seller. But the seller's agent must not advise the buyer or otherwise act as if he's the buyer's agent instead of the seller's. Establishing buyer agency - Ans ️️ -A buyer agency relationship arises automatically when a licensee who is not representing a seller provides services to a buyer. A buyer's agent may also enter into a written agency agreement with the buyer. Advantages of buyer agency - Ans ️️ -Being represented by a buyer's agent gives a buyer the advantages of loyalty and confidentiality