Washington State portion UPDATED Exam
Questions and CORRECT 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. - Correct 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 - Correct 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 - Correct 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 - Correct 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 - Correct 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 - Correct 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. - Correct 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. - Correct 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. - Correct Answer- This doesn't change the agency
relationships.
Questions and CORRECT 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. - Correct 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 - Correct 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 - Correct 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 - Correct 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 - Correct 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 - Correct 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. - Correct 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. - Correct 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. - Correct Answer- This doesn't change the agency
relationships.
