WASHINGTON STATE REAL ESTATE
PREP (CE SHOP) EXAM QUESTIONS
WITH CORRECT ANSWERS
Reggie is a real estate licensee and a licensed cosmetologist in Washington. The DOL
revokes Reggie's cosmetology license. Which of these statements about Reggie's real
estate license is true?
a. Because the revocation was in a field unrelated to real estate, Reggie's real estate
license is safe.
b. Reggie will be permitted to retain his real estate license until his cosmetology license
is reinstated so he can earn a living
c. The DOL may revoke Reggie's real estate license.
d. The Uniform Regulation of Business and Professions Act prohibits the DOL from
revoking two licenses simultaneously. - Answer-c. The DOL may revoke Reggie's real
estate license.
Kennedy, a Washington broker, tends to be rather informal about her real estate
business. Her daughter's teacher, Matthew, tells Kennedy that he'd like her help selling
his house. Kennedy tells Matthew she'll perform all the tasks she'd perform for any
listing, though she has no written agency agreement with Matthew. Do Matthew and
Kennedy have a legal agreement?
a. Yes. Express agreements may be verbal or written.
b. Yes. They have a verbal implied agreement. - Answer-a. Yes. Express agreements
may be verbal or written.
David's Washington license has been inactive for two years. What does he have to do
to reactivate it? - Answer-Complete and submit the DOL form.
Which of the following positions is appointed by the Washington DOL director to serve
as an non-voting member and preside over meetings? - Answer-Commission chair
How often are audits typically conducted on Washington brokerage transactional and
accounting records? - Answer-Every three years
Which of the following statements about an expired real estate license in Washington is
correct? - Answer-Expired licenses are considered inactive until renewal is complete.
,Which of the following statements about Washington trust accounts is true? - Answer-
Trust funds are to be held in interest-bearing demand deposit accounts, such as
checking or savings accounts.
Deana is a broker for North Washington Realty, LLC, and is the listing broker from a
property. In this transaction, what kinds of compensation is Deana entitled to receive
from payors other than her brokerage firm? - Answer-All compensation must be paid
through her broker.
Olympia broker Ethan has advertised that he'll rebate a portion of his commission to
buyer clients. For Ethan to be allowed to make this deal, which of the following must be
true?
a. Ethan is a designated broker.
b. The buyers' lender must be made aware of the rebate. - Answer-b. The buyers'
lender must be made aware of the rebate.
In Washington, which agency is authorized to disseminate and enforce real estate
licensing laws? - Answer-Department of Licensing
Which of the following information must appear on the firm's records for a trust account
deposit?
a. The estimated closing date
b. The names of all contract parties
c. The payee
d. The source of funds - Answer-d. The source of funds
Which of the following is true regarding the definition of agency in Washington? -
Answer-Agency describes the relationship between the real estate professional and the
person or persons being represented
Which of the following is an allowable referral gift a Washington broker may give to an
unlicensed person?
a. $100 gift card
b. $400 in cash for referrals given after the person closes his or her own transaction
c. A $100 restaurant gift certificate once the referred person signs a contract
d. A home value consultation, valued at $200, for new clients only - Answer-b. $400 in
cash for referrals given after the person closes his or her own transaction
RCW 18.85 permits brokers to pay a referral fee to an unlicensed person who's not a
party to a transaction as long as the referral fee isn't contingent upon the broker or the
firm receiving any compensation.
, In Washington, a designated broker ______. - Answer-Holds a managing broker's
license with a special DOL endorsement
After a Washington lease agreement expires and a tenant vacates the property, leaving
it in good condition, how long does the landlord have to return the security deposit? -
Answer-21 days
Roberto has been a managing broker for 15 years. He's been offered a position with the
Washington State Department of Licensing. Which of these statements about this
situation is true?
a. Active or previously licensed individuals aren't eligible for employment by the DOL.
b. In order to accept the DOL position, Roberto must inactivate his license.
c. Roberto may continue his real estate business, but only with strict oversight from the
DOL.
d. Roberto may continue to actively work with clients to buy and sell real estate while
employed by the DOL. - Answer-b. In order to accept the DOL position, Roberto must
inactivate his license.
RCW 18.86.030 requires brokers to disclose certain information to all parties regarding
whom they represent. Which of the following scenarios depicts a broker adhering to this
law? - Answer-Arlene disclosed that she represented the buyer in the purchase and
sale agreement's "agency disclosure" section.
Which of these is an example of commingling in Washington?
a. Mixing earnest money with personal funds
b. Mixing two earnest money deposits
c. paying licensee bonuses from forfeited escrow deposits
d. Using escrow funds to pay business expenses - Answer-Mixing earnest money with
personal funds
What is the maximum amount of time that can elapse between completing the required
coursework and applying for a Washington broker's license? - Answer-Two years
Jon, a Washington managing broker, received an earnest money deposit check on
Saturday. Which of the following statements best represents how Jon should handle this
check after the offer's accepted?
a. Jon must deposit this check into the firm's trust account no later than the next
banking day.
b. Jon must use the night depository to ensure that the check is deposited by the next
day.
PREP (CE SHOP) EXAM QUESTIONS
WITH CORRECT ANSWERS
Reggie is a real estate licensee and a licensed cosmetologist in Washington. The DOL
revokes Reggie's cosmetology license. Which of these statements about Reggie's real
estate license is true?
a. Because the revocation was in a field unrelated to real estate, Reggie's real estate
license is safe.
b. Reggie will be permitted to retain his real estate license until his cosmetology license
is reinstated so he can earn a living
c. The DOL may revoke Reggie's real estate license.
d. The Uniform Regulation of Business and Professions Act prohibits the DOL from
revoking two licenses simultaneously. - Answer-c. The DOL may revoke Reggie's real
estate license.
Kennedy, a Washington broker, tends to be rather informal about her real estate
business. Her daughter's teacher, Matthew, tells Kennedy that he'd like her help selling
his house. Kennedy tells Matthew she'll perform all the tasks she'd perform for any
listing, though she has no written agency agreement with Matthew. Do Matthew and
Kennedy have a legal agreement?
a. Yes. Express agreements may be verbal or written.
b. Yes. They have a verbal implied agreement. - Answer-a. Yes. Express agreements
may be verbal or written.
David's Washington license has been inactive for two years. What does he have to do
to reactivate it? - Answer-Complete and submit the DOL form.
Which of the following positions is appointed by the Washington DOL director to serve
as an non-voting member and preside over meetings? - Answer-Commission chair
How often are audits typically conducted on Washington brokerage transactional and
accounting records? - Answer-Every three years
Which of the following statements about an expired real estate license in Washington is
correct? - Answer-Expired licenses are considered inactive until renewal is complete.
,Which of the following statements about Washington trust accounts is true? - Answer-
Trust funds are to be held in interest-bearing demand deposit accounts, such as
checking or savings accounts.
Deana is a broker for North Washington Realty, LLC, and is the listing broker from a
property. In this transaction, what kinds of compensation is Deana entitled to receive
from payors other than her brokerage firm? - Answer-All compensation must be paid
through her broker.
Olympia broker Ethan has advertised that he'll rebate a portion of his commission to
buyer clients. For Ethan to be allowed to make this deal, which of the following must be
true?
a. Ethan is a designated broker.
b. The buyers' lender must be made aware of the rebate. - Answer-b. The buyers'
lender must be made aware of the rebate.
In Washington, which agency is authorized to disseminate and enforce real estate
licensing laws? - Answer-Department of Licensing
Which of the following information must appear on the firm's records for a trust account
deposit?
a. The estimated closing date
b. The names of all contract parties
c. The payee
d. The source of funds - Answer-d. The source of funds
Which of the following is true regarding the definition of agency in Washington? -
Answer-Agency describes the relationship between the real estate professional and the
person or persons being represented
Which of the following is an allowable referral gift a Washington broker may give to an
unlicensed person?
a. $100 gift card
b. $400 in cash for referrals given after the person closes his or her own transaction
c. A $100 restaurant gift certificate once the referred person signs a contract
d. A home value consultation, valued at $200, for new clients only - Answer-b. $400 in
cash for referrals given after the person closes his or her own transaction
RCW 18.85 permits brokers to pay a referral fee to an unlicensed person who's not a
party to a transaction as long as the referral fee isn't contingent upon the broker or the
firm receiving any compensation.
, In Washington, a designated broker ______. - Answer-Holds a managing broker's
license with a special DOL endorsement
After a Washington lease agreement expires and a tenant vacates the property, leaving
it in good condition, how long does the landlord have to return the security deposit? -
Answer-21 days
Roberto has been a managing broker for 15 years. He's been offered a position with the
Washington State Department of Licensing. Which of these statements about this
situation is true?
a. Active or previously licensed individuals aren't eligible for employment by the DOL.
b. In order to accept the DOL position, Roberto must inactivate his license.
c. Roberto may continue his real estate business, but only with strict oversight from the
DOL.
d. Roberto may continue to actively work with clients to buy and sell real estate while
employed by the DOL. - Answer-b. In order to accept the DOL position, Roberto must
inactivate his license.
RCW 18.86.030 requires brokers to disclose certain information to all parties regarding
whom they represent. Which of the following scenarios depicts a broker adhering to this
law? - Answer-Arlene disclosed that she represented the buyer in the purchase and
sale agreement's "agency disclosure" section.
Which of these is an example of commingling in Washington?
a. Mixing earnest money with personal funds
b. Mixing two earnest money deposits
c. paying licensee bonuses from forfeited escrow deposits
d. Using escrow funds to pay business expenses - Answer-Mixing earnest money with
personal funds
What is the maximum amount of time that can elapse between completing the required
coursework and applying for a Washington broker's license? - Answer-Two years
Jon, a Washington managing broker, received an earnest money deposit check on
Saturday. Which of the following statements best represents how Jon should handle this
check after the offer's accepted?
a. Jon must deposit this check into the firm's trust account no later than the next
banking day.
b. Jon must use the night depository to ensure that the check is deposited by the next
day.
