WA STATE PORTION EXAM (Andrei) Questions and Answers

WA STATE PORTION EXAM (Andrei) Questions and Answers Business Opprtunity includes (4) 1 Business 2 Business Entity 3 Good Will 4 Interest in real property Difference between Residential and Commercial Real Estate 1-4 units -- Residential 5 and over -- Commercial Designated Broker (2) 1. Natural person 2. Owns RE firm or controlling interest Inactive license (2) 1. Not expired 2. Not affiliated with firm Managing Broker is a (3): 1. Natural person 2. Under supervision of Designated broker 3. May supervise other brokers or man broker In rental properties, a person employed by the owner does not need to be licensed, if they (4) a) delivering/receiving lease applications; b) Showing rental units; c) providing info about rent; d) assistant of property manager. WA RE Commission (6) 1. Meet 4 times a year 2. Appointed by governor 3. At least 2 from east, 2 from west 4. Term 6 years 5. Vice chair elected annually 6. Director + 6 members Experience needed to be a member of WA RE Commission (2) 1. 5 years in RE 2. 3 in investigation Duties of Director of RE Commission (3) 1. Enforces laws of licensing 2. Sets Standards for education 3. Suspends licenses To whom all the fees are paid State Treasurer Can a person be Director's employee and RE agent at the same time? No. License inactive while employed. Can a person work for city, county and be RE agent at the same time? Yes. Not responsible before their managing broker while doing transaction for the city. Requirements for RE Firm (8) 1. Designated broker 2. Active license 3. Unique name. Not confused with nonprofit. 4. Trust account 5. Business ID 6. address 7. Website/email (optional) 8. Application fee paid Requirements for Broker's license (4) 1. 18+ 2. High school 3. 90 hours of RE school not older than 2 years 4. Pass license exam Initial Renewal of Broker's license (2) 1. Pay a fee 2. First year 90 hours of CE Managing Broker Requirements (non-educational) (3) 1. 18+ 2. High school 3. 3 years of brokerage or 5 years in another jurisdiction with comparables. Designated Broker Registration Requirements (4) 1. Have Managing broker license 2. Register with Department of RE 3. Register at the firm 4. Notify the department when changing adding firms CAN a licensee be a designated broker for MORE THAN ONE firm. Yes For how long Out of state licensee must keep the records: 3 years If the out of state Broker is from the state where no difference between Broker and salesperson, he still has to... ...comply with all the requirements. Exemptions from Licensing (GRAPPAS TC) (9) 1. Personal use, whether business or group 2. Power of attorney without compensation 3. Attorney at law 4. Trustee, guardian 5. Admin personnel at RE firm 6. Government employees 7. Self-storage for rent 8. Referral without compensation 9. CPA, company, investor, community manager, if they do not promote sale or rent of the property. All moneys received for the sale of educational literature to licensees and members of the public shall be placed in WA RE COMMISSION fund Licenses must be renewed Every 2 years License cancelled if Not renewed within 1 year of expiration. Continued Education Requirements Minimum 30 hours every 2 years including 3 hour core course. How many hours of CE can be carried over 15 hours in two year period A branch office license shall not be required where (2): 1. sales activity is conducted 2. if a licensed office or branch office is located within 35 miles of the subdivision or tract. If a holder wants to activate an inactive license after more than 3 years He/She has to complete a 30 clock hour course in real estate within 1 year before the application for active status. State employees do they need 30 hour of CE renewal for inactive license? No How soon a broker needs to deposit funds upon receipt. Next banking day. What kind of account firm must maintain for earnest money? Exceptions? Interest bearing account. Exceptions -- property management trust accounts. Who get interest from the trust account? the state treasurer for deposit in the Washington housing trust fund Does the RE firm need to tell the client that trust account bears interest? No When disbursement of money from trust account should occur? No later than 30 days after notice. To whom and how RE firm should Remit interest dividends from trust accounts (4) 1. Monthly or at least quarterly 2. to the state treasurer for deposit to 3. the housing trust fund (75%) and education program (25%). 4. Transmit copy of the statement to director of commerce and the depositor. With whom and through whom Broker can share commissions? (3) 1. Any licensed agent in any state 2. Seller of manufactured houses 3. Only through the designated broker When a Broker's License can be Suspended that is not directly related to RE activity? (2) 1. Non payments on federal scholarship or student loan. 2. Noncompliance with support order Grounds for disciplinary action against licensee (ABBCDFG NNN) (10) 1. Nonprofessional conduct 2. False statements and advertising 3. Being part of a fraud or scheme 4. Conversion of trust money for personal use 5. Non disclosure or misrepresentation 6. Accepting Commission from more than one party 7. Getting paid for appraisal or CMA 8. Non-disclosure of personal interest 9. Discrimination (Federal and State) 10. bad faith, dishonesty, untrustworthiness, or incom- petence. What to disclose when selling personal house Only that you have a license, not necessary with what firm. Appellation to a Superior Court (2) 1. $1000 cash bond within 30 days 2. Pay the appeal transcript within 15 days Government of unlicensed activity, issue and denial of licenses is done by what regulation act? The uniform regulation of business and profes- sions act Fee for issue and reissue of a license and when does the fee expire? 1. $10 2. Expires on Sept 30, 2025 If passed examination how soon to get license Within 1 year. Alternative periods of experience for managing broker instead of 3 year experience in real estate (4) 1. Post secondary education in RE with 1 year in RE. 2. Attorney at law 1 year 3. Escrow, title or mortgage, Appraiser, developer, leasing 5 years, Investor, property manager 5 years. 4. All of the above should be within 7 years. If Managing Broker with alternative experience fails to pass the exam, can he retake the exam? No. He now has to be 3 years real estate broker. If managing broker wants to go back to regular broker, does he need to retake the exam? Yes. Can application serve as a interim substitute for a license? (2) 1. Yes, if passed exam, paid fee, fingerprint card. 2. No more than 45 days. License Termination (3) 1. Unilateral 2. Must be written notice 3. Effective immediately upon receipt via mail, fax, email etc Firm's License Renewal 1. every 2 years How many education hours and within what period of time for Manager Broker License, plus break down of those hours (5) 1. 90 hours in addition to broker's hours: 2. Advanced real estate law 30 hrs 3. Brokerage management 30 hrs 4. Business management 30 hrs 5. Within last 3 years Passing percentage for the exam for Broker and Manager and for how long is it valid (3) 1. Broker score 70% 2. Managing broker 75% 3. Passing score valid for 6 mo. Requirements for Reinstatement of cancelled license (3) 1. 60 hours of study within 1 year. 2. 30 hours of it must be in RE law. 3. Late fee of $100 What is the longest period for canceled license. 3 years to reinstall. After that you need to start from scratch. First active license renewal educational requirements with breakdown of hours (5) 1. 90 hours total 2. 30-hour Advanced Practices Course 3. 30-hour Real Estate Law Course 4. 30 hours of approved continuing education, including a 3-hour Core Course 5. Study of the course should start AFTER the day of licensing. Two way to use 30 hours of Continuing Education 1. First renewal 2. Activation after 3 or more years of activation. 30 hours of CE should consist of (2) 1. Minimum 15 hours within 2 years 2. 3 hours of core curriculum Can you take the same course during next renewal period? Yes Can instructors receive personal CE credit for teaching or preparing the course? No. Can courses, taken for activation of inactive license, be counted toward CE? No. Will a licensee avoid the requirement of CE if he will put his license on inactive status? No. He will still have to take it to activate. Core curriculum taken after 2 years but before 3 years. Cannot be used for 3 hour core curriculum requirement, but can be counted towards regular 30 hour of CE. Can a CE credit, taken in another jurisdiction (state), be counted for WA? Yes, but it has to be approved by the director. To change address of a firm (2) 1. Application within 10 days of change with all the licenses 2. pay the fee. When broker must submit all the transaction docs to the designated or managing broker? Within 2 business days of mutual acceptance. Can a broker or managing broker use unlicensed title or brand for advertising? Yes, but only with designated broker written approval. How soon a Firm must notify the director if closing. Within 5 business days. How soon a licensee should report to the RE program if any legal actions has been taken against the licensee within 20 days. Time frame to respond to audit letter. 30 days after mailing Time frame to deliver earnest money and other funds. 2 business days or sooner. How soon Earnest money should be deposited Next banking day Can bank charge trust account with service fees? No. Trust account fees must be paid from regular bank account. What is the limit on pooled trust interest bearing account 10000 If a client to deposit more than 10000 into pooled trust account, what 2 options does he have? 1. All fund are not required to be put into the account. Portion can be put in another trust account interest bearing. 2. They can put all the money into the original pooled account only if all the parties agree in writing. When the broker must deposit all funds into their trust account Next banking day following the receipt of the money Does the firm or designated broker need to tell the client of use of funds accrued from interest from the trust account No What expenses can firm deduct before paying interest from the trust account to the Department of Real Estate (2) 1. Bank fees 2. Not check printing fees or bookkeeping charges What if bank fee to the trust account is greater than the interest earned? Designated broker should use fund from regular account to make up the difference. For what trust accounts designated broker can be reimbursed should negative balance between fees and interest occur? He can be reimbursed for the second account but he cannot be reimbursed for the main trust account. Can a broker use trust account to pay commissions? 1. No, unless written permission from both sides. Interest bearing trust accounts for Property Management (3) 1. Don't have to bear interest 2. If there is an interest, all the proceeds go to the owner of rental property. 3. Interest can be paid to the owner even if it is the account to store security deposits Can property manager use one check to pay recurring monthly fees for all the tenants? Yes. If it is supported by the schedule books. School Course approval for how long? 4 years How long is the actual clock hour? 50 min Can distance education provide passive courses? No. Courses of 30 hours or should include: (3) 1. At least 3 questions per clock hour 2. 90 questions minimum 3. At least 70% passing grade When course need to be updated due to change in regulations? No later than 30 days Calculation of clock hours during conferences Minimum 3 clock hours may count towards 1 clock hour credit. Period to apply for hearing of a course denial Within 30 days