2017 GUIDE WA LICENSE TEST

Question 1

The Director can impose any of the following sanctions, EXCEPT,

a. Order a licensee to pay damages to an injured party.
b. Suspend or revoke a license, file criminal charges in court.
c. Probation or monitoring someone’s real estate activities.
d. Require specific education to be done, up to $5000 in fines.

Answer 1

a. Order a licensee to pay damages to an injured party.

Question 2

Trust funds must be deposited,

a. When it is convenient to the person bringing the trust funds.
b. Within the broker’s personal business account.
c. By the end of the first banking day after receiving.
d By end of day received, no exceptions.

Answer 2

c. By the end of the first banking day after receiving.

Question 3

Can earnest money be treated differently than trust funds?

a. No. Earnest money is trust funds, and cannot have special exceptions.
b. Yes. The state gives exceptions to earnest money involving when it may be deposited. The trust fund deadline can be altered via the contract.
c. Yes. The broker can hold the funds in their transaction file for as long as needed.
d. No. All earnest money must be delivered directly by a buyer to the title company for deposit in their trust accounts.

Answer 3

b. Yes. The state gives exceptions to earnest money involving when it may be deposited. The trust fund deadline can be altered via the contract.

Question 4

Who hires the Real Estate Commission?

a. They are elected officials, voted on every 4 years.
b . The Governor appoints the Real Estate Commissioners as well as the Director of Licensing.
c. The Director of Licensing hires the commissioners along with regular staff
d. The Realtor association picks them from different areas of the state.

Answer 4

b . The Governor appoints the Real Estate Commissioners as well as the Director of Licensing.

Question 5

Anyone licensed with a Firm, working under-the Designated Broker, is called,

a. Sales Associates.
b. Associates of the Firm.
c. Licensed Brokers.
d. Affiliated Licensees.

Answer 5

d. Affiliated Licensees.

Question 6

A real estate Firm must be,

a. licensed as a Firm, and have a managing broker with a business interest in the Firm selected to be the Designated Broker.
b. a corporation, licensed as a Firm, that hires a licensed broker to run it and manage all their brokers.
c. a sole proprietorship, who becomes the Designated Broker of the licensed Firm.
d. Registered with the county before they can provide any real estate services.

Answer 6

a. licensed as a Firm, and have a managing broker with a business interest in the Firm selected to be the Designated Broker.

Question 7

These real estate licenses expire every 2 years, and must be renewed prior to their
expiration date:

a. Brokers, Managing Brokers, all Owners.
b. Brokers and Designed Brokers only.
c. Brokers, Managing Brokers, Firms.
d. Brokers, Assistants, Managing Brokers, Designated Brokers.

Answer 7

c. Brokers, Managing Brokers, Firms.

Question 8

Antitrust Laws cover all the following, EXCEPT,

a. The mis-handling of all trust funds within real estate, including deposit deadlines and control of disbursement.
b. Allows for both criminal and civil penalties, up to one million dollars and/or 10 years in prison for an individual.
c. Avoiding conspiracies, when two of more business entities participate in schemes that results in an unreasonable restraint of trade.
d. Schemes involving price fixing, group boycotts, tie-in arrangements and market allocations.

Answer 8

a. The mis-handling of all trust funds within real estate, including deposit deadlines and control of disbursement.

Question 9

Sheila receives a commission check from her buyer. This is,

a. Okay, since she has a Buyers Representation Agreement signed as an exclusive agent.
b. Not okay, since the must be split with her team members through their team leader, and the check must be made out to the team leader.
c. Okay, as long as she reports it as taxable income when she files her taxes.
d. Not okay, since she can only receive a commission through her Firm and Designated Broker.

Answer 9

d. Not okay, since she can only receive a commission through her Firm and Designated Broker.

Question 10

Interest earned on trust accounts goes to,

a. The State Treasurer.
b. The client, if their earnest money is over $10,000 and they want the interest.
c. Only answer “a.”, above.
d. Both “a.” and “b.”, above.

Answer 10

d. Both “a.” and “b.”, above.

Question 11

Broker Robert is advertising his own home for sale. What rules does he have to follow?

a. He must show his Brokerage’s name as licensed, or else it is a blind ad and is illegal.
b. Disclosure that the seller is a licensed broker in the state of Washington is required on all advertising.
c. As long as it has his correct website and phone number he won’t be violating any laws regarding advertising.
d. It would be best for Robert to list just his spouse’s name so people won’t be intimidated by him being a broker.

Answer 11

b. Disclosure that the seller is a licensed broker in the state of Washington is required on all advertising.

Question 12

A broker may deal with many different people besides his or her own client. These other parties are owed the duties of:

a. Disclosing all material facts only. They should get their own representation or sign an agency agreement for anything else.
b. Provide an agency law pamphlet along with an agency agreement to sign.
c. Provide an agency law pamphlet, deal honestly, reasonable skill and care, accounting for money received and present communications timely.
d. Deal honestly, reasonable skill and care, accounting for money received and present communications timely, confidentiality, loyalty, and provide an agency law pamphlet.

Answer 12

c. Provide an agency law pamphlet, deal honestly, reasonable skill and care, accounting for money received and present communications timely.

Question 13

Alice has received a Statement of Charges from the Director of Licensing. How long does she have to request a hearing?

a. 20 days
b. 30 days
c. 60 days
d. 10 days

Answer 13

a. 20 days

Question 14

A Designed Broker can release trust funds from their trust account, EXCEPT,

a. When the transaction fails to close and the purchase and sale agreement tells how to handle the trust funds in that situation (without a release needed).
b. When disbursing to the closing agent prior to closing to assure funds are there in time for the closing.
c. Whenever the client giving the trust funds demands it.
d. When both parties give written consent to disburse and to whom.

Answer 14

c. Whenever the client giving the trust funds demands it.

Question 15

Fernando is told he must be sure to make full disclosure in all his internet advertising. This means,

a. Every ad, no matter how small, must have his name as licensed, his brokerage firm name, as licensed or assumed, and where he is licensed.
b. As long Fernando puts his name, contact info and brokerage, he is okay.
c. All advertising must link to his brokerage firm, as licensed.
d. Show his name as licensed, his brokerage firm name or assumed name, as licensed, and where he is licensed, or, be no more than one click away from that disclosure.

Answer 15

d. Show his name as licensed, his brokerage firm name or assumed name, as licensed, and where he is licensed, or, be no more than one click away from that disclosure.

Question 16

The Real Estate Commissioners are there to advise the Director of Licensing. They must consist of:

a. 6 Commissioners total, 3 from the east of the Cascades and 3 from the west of the Cascades.
b. 6 Commissioners total, at least 2 from the east of the Cascades and at least 2 from the west of the Cascades.
c. 7 Commissioners total, 1 from Seattle, at least 2 from the east of the Cascades and at least 2 from the west of the Cascades.
d. 6 Commissioners total, 1 from each of the state’s voting districts.

Answer 16

b. 6 Commissioners total, at least 2 from the east of the Cascades and at least 2 from the west of the Cascades.

Question 17

The most likely way an agency relationship is terminated is by,

a. The client turns the licensee and their Firm in to the licensing board.
b. The agency agreement is torn up and send to the Firm.
c. Full performance by the licensee.
d. Agency agreements do not terminate, they can only expire.

Answer 17

c. Full performance by the licensee.

Question 18

Jerome, a broker for 6 years, inactivates his license on July 1. His license expires on September 20, and he renews it, paying the renewal fee, on September 10°, In May of the following year he re-activates his license. What must Jerome do to return his license to an active status.

a. 30 clock hours of approved courses, plus request from his brokerage firm to issue his license.
b. Call to the DOL to have his license activated and sent to him so he can find a new brokerage Firm.
c. Request to receive an active license by his new brokerage plus 60 clock hours including a 30 hour law class.
d. Request from his brokerage firm to issue his license. No educational requirements need to be met since he renewed in the last year.

Answer 18

a. 30 clock hours of approved courses, plus request from his brokerage firm to issue his license.

Question 19

The Director of Licensing has decided that Neil has possibly violated a licensing law. Neil knows this because,

a. He gets a call from his Designated Broker to say he is in trouble.
b. He is served a Statement of Charges from the Director.
c. He gets notice of a date and time of an Administrative Hearing.
d. He receives an email from the Realtor Association.

Answer 19

b. He is served a Statement of Charges from the Director.

Question 20

Best Realty opens a branch office. What must the branch office have?

a. A license issued for the new branch office, in the branch office’s name. The Designated Broker is solely responsible for that office. All licensees working at that office must have their licenses at the branch office.
b. A duplicate firm license, as well as the licenses of all licensees working at that office, displayed. A managing broker appointed to serve as a Branch Manager under the Designated Broker.
c. A duplicate firm license displayed on site. A managing broker appointed to serve as a Branch Manager under the Designated Broker. The licenses for all licensees are always at the main office.
d. As long as the branch office is named the same, all licenses are displayed at the main office. A managing broker. appointed to serve as a Branch Manager under the Designated Broker.

Answer 20

b. A duplicate firm license, as well as the licenses of all licensees working at that office, displayed. A managing broker appointed to serve as a Branch Manager under the Designated Broker.

Question 21

The interest from pooled trust accounts is paid to the,

a. Administration of the firm to cover the costs of managing the trust account.
b. Individual owners of the trust funds.
c. Realtor Association for Ethics Courses.
d. State Treasurer.

Answer 21

d. State Treasurer.

Question 22

After receiving a Statement of Charges, how long does a licensee have to file a request for a hearing?

a 7 days

b. 30days
c. 20 days
d. 10 days

Answer 22

c. 20 days

Question 23

Performing real estate brokerage services without a license is,

a. A federal offense, punishable by fine and/or imprisonment.
b. If a noted exception, it is allowed when you are registered and pay a fee.
c. A gross misdemeanor if not shown to be a recognized exception.
d. Allowed with permission from the county.

Answer 23

c. A gross misdemeanor if not shown to be a recognized exception.

Question 24

How many members are on the Washington Real Estate Commission?

a. 12 members representing each county.
b. 6 commissioners who serve for sixteen years.
c. 10 members voted by the real estate community.
d. 7 members, the director and 6 commissioners.

Answer 24

d. 7 members, the director and 6 commissioners.

Question 25

In Washington, who is required to hold a real estate license?

a. People getting compensation for helping others to buy and sell real estate.
b. Home owners selling their own homes.
c. Receptionist working in a real estate company.
d. Burger flipper at Burgerville.

Answer 25

a. People getting compensation for helping others to buy and sell real estate.

Question 26

Who may be exempt from the licensing requirements?

a. Neighbors helping other neighbors sell homes for a small fee.
b. Mortgage Broker who buys houses on the side for clients.
c. Attorney-at-Law in performance of their duties.
d. Anyone who sells less than 6 houses per year.

Answer 26

c. Attorney-at-Law in performance of their duties.

Question 27

How does a corporation or partnership receive a real estate license?

a. Have a licensed managing broker on the board who can be the designated broker, and apply for a firm license.
b. Send the CEO to take the Real Estate Licensing Test and apply for a firm license.
c. Pay a special fee of $500 to the Real Estate Commission Board for the firm license.
d. State that they use AMP exam service in their application for their firm license.

Answer 27

a. Have a licensed managing broker on the board who can be the designated broker, and apply for a firm license.

Question 28

Can there be more than one Designated Broker in any given office?

a. Yes, as long as all designated brokers are currently licensed and registered with the state.
b. There is only one designated broker in any office.
c. These can be designated co-brokers with equal status in any office.
d. Yes, if the company has more than 50 agents.

Answer 28

b. There is only one designated broker in any office.

Question 29

List a basic requirement for the real estate Broker’s license.

a. The minimum age is 17 years old.
b. A minimum score of 75 percent on the national, and 70 percent on state.
c. Completed an approved 60 hour course in the Fundamentals of Real Estate and a 30 hour course in Real Estate Practices.
d. Have a valid Washington driver’s license

Answer 29

c. Completed an approved 60 hour course in the Fundamentals of Real Estate and a 30 hour course in Real Estate Practices.

Question 30

What else is required beyond passing the test?

a. Submit fingerprints plus information for a background check.
b. Pass a drug test approved by the state.
c. Pass a special aptitude assessment for real estate.
d. Join the local association of Realtors.

Answer 30

a. Submit fingerprints plus information for a background check.

Question 31

What is the next step after a person passes the Brokers exam?

a. Take the state approved drug test.
b. Employing Designated Broker signs license application and applicant mails fee to Olympia.
c. Apply for real estate insurance.
d. File a home address certificate.

Answer 31

b. Employing Designated Broker signs license application and applicant mails fee to Olympia.

Question 32

Can a Managing Broker become licensed under more than one Designated Broker?

a. Yes, with the consent of the Designated Brokers involved.
b. No, you can only be affiliated with one Designated Broker at a time.
c. Yes, if the Designated Brokers are in different cities in Washington State.
d. Yes, if both the Designated Brokers last names are the same.

Answer 32

b. No, you can only be affiliated with one Designated Broker at a time.

Question 33

May a candidate who fails the exam retake it?

a. Yes, but only once a year.
b. Yes, but after six months.
c. Yes, after 24 hours.
d. No, they must retake the pre-license course.

Answer 33

c. Yes, after 24 hours.

Question 34

Will the Commission do a credit check?

a. No.
b. Yes, on candidates with bad credit history.
c. Yes, on all candidates.
d. No, but at the discretion of the Director

Answer 34

a. No.

Question 35

Are there any residency or citizenship requirements to getting a real estate license??

a. Yes, you must have US citizenship or have a green card.
b. No residency or citizenship requirement to get a license.
c. Yes, you must be a resident of Washington State.
d. Sponsor is responsible for agent.

Answer 35

b. No residency or citizenship requirement to get a license.

Question 36

How are real estate licenses renewed on active status?

a. First renewal period the licensee must submit 90 clock hours, including the CORE class; subsequent renewals are 30 clock hours, including the CORE class.
b. All renewal periods must have at least 33 clock hours submitted.
c. All renewal periods must have at least 30 clock hours submitted, or approval from
Designated Broker.
d. By achieving a Permit to Renew form signed by the Director.

Answer 36

a. First renewal period the licensee must submit 90 clock hours, including the CORE class; subsequent renewals are 30 clock hours, including the CORE class.

Question 37

Are there any special duties imposed on Designated Brokers?

a. The Designated Broker is responsible only for him or herself.
b. The Designated Broker is responsible for him or herself and any licensed Brokers
c. The Designated Broker is responsible for the real estate activities of any Broker, Managing Broker, Branch Manager, or representative affiliated with the Designated Broker.
d. The Designated Broker is responsible for making sure all Brokers are on time.

Answer 37

c. The Designated Broker is responsible for the real estate activities of any Broker, Managing Broker, Branch Manager, or representative affiliated with the Designated Broker.

Question 38

May licensees sell or buy property for themselves without going through their Designated Brokers?

a. Never.
b. Not without the Designated Broker’s approval.
c. Yes, but he must disclose that he has a licensed, however, he needs not disclose the Firm.
d. If the Designated Broker gets a special kickback fee.

Answer 38

c. Yes, but he must disclose that he has a licensed, however, he needs not disclose the Firm.

Question 39

Who is legally responsible for the activities performed by a personal assistant?

a. The personal assistant themselves.
b. The Broker or Managing Broker who the personal assistant is working for.
c. The personal assistant’s sponsor or guardian.
d. The Designated Broker and the Broker or Managing Broker who the personal assistant is working for.

Answer 39

d. The Designated Broker and the Broker or Managing Broker who the personal assistant is working for.

Question 40

What are some of the activities that an unlicensed person may perform?

a. Greeter at an open house, answer telephone, place ads.
b. Greeter at an open house, interpret market analysis report.
c. Answer telephones, step in for an agent at closing.
d. Place ds, advise sellers on property taxes.

Answer 40

a. Greeter at an open house, answer telephone, place ads.

Question 41

What activities are specifically prohibited for an unlicensed assistant?

a. Answering agent’s phones.
b. Gathering information for comparative analysis.
c. Show property and answer questions on property condition.
d. Deposit earnest money.

Answer 41

c. Show property and answer questions on property condition.

Question 42

Are there any special requirements regarding a Firm’s Designated Broker’s office and/or location?

a. The Designated Broker must have an office in their home.
b. Maintain an accessible records repository in Washington State.
c. They must have an office that is open to the public every weekday between 9:00 am and 5:00 pm.
d. All licensees must be kept in a safe place off site.

Answer 42

b. Maintain an accessible records repository in Washington State.

Question 43

What supervision is required of Designated Brokers who hire affiliate licensees?

a. Designated Broker should manage and supervise all real estate brokerage activities.
b. Brokers manage and supervise themselves and their transactions.
c. The Designated Broker has no responsibility in real estate activities, they are only responsible for administration.
d. A Managing Broker should set reasonable procedures to verify all transactions of their team.

Answer 43

a. Designated Broker should manage and supervise all real estate brokerage activities.

Question 44

Are blind ads legal in Washington?

a. Yes, there is no law against it.
b. Yes, as long as the ad is in local paper.
c. No, blind ads are illegal.
d. Yes, if the Broker lists his full name.

Answer 44

c. No, blind ads are illegal.

Question 45

Are there special guidelines for a real estate office to advertise on the internet?

a. No, internet is a free agency.
b. Only the home page of a website needs to include full disclosure.
c. No, real estate offices have a legal right to no censure.
d. Any on-line ad, solicitation, text, email or message must be no more than one click away from a full disclosure.

Answer 45

d. Any on-line ad, solicitation, text, email or message must be no more than one click away from a full disclosure.

Question 46

What is full disclosure that an individual licensee must include when advertising on the internet?

a. Licensee’s name, name of firm, country of origin.
b. Licensee’s name, name of firm, age of licensee.
c. Licensee’s name, name of firm, marriage status of licensee.
d. Licensee’s name, name of firm, city & state of licensee’s office.

Answer 46

d. Licensee’s name, name of firm, city & state of licensee’s office.

Question 47

What can a Designated Broker do with trust money?

a. Hold it in the firm’s business account until the transaction closes.
b. Hold it in a pooled trust account until release is required.
c. Hold it in his personal account for the weekend and transfer it to a special trust account on the next available banking day.
d. The Designated Broker is responsible for the money and may use it as she sees fit.

Answer 47

b. Hold it in a pooled trust account until release is required.

Question 48

Where must a trust fund account be located

a. The funds should be kept in the Designated Broker’s main office in a secure safe.
b. In a federally chartered banking institution in Washington State.
c. In the Washington Real Estate Agents Credit Union.
d. In the Real Estate Commission Trust Account in Washington State.

Answer 48

b. In a federally chartered banking institution in Washington State.

Question 49

How soon must trust funds be deposited?

a. Within one hour of receiving them.
b. Within one week of receiving them.
c. The next banking day after receipt including Saturday.
d. The next banking day after receipt excluding Saturday and Sunday.

Answer 49

d. The next banking day after receipt excluding Saturday and Sunday.

Question 50

What is commingling of funds?

a. Mixing personal funds with those belonging to other people.
b. Mixing more than two personal funds together.
c. Mixing more than two business funds together.
d. Mixing person funds when you are not married.

Answer 50

a. Mixing personal funds with those belonging to other people.

Question 51

Which of the following are MOST likely duties to the client principal?

a. No duties or obligations are required.
b. Be honest, loyal, and discreet with no hidden interest.
c. Be kind and respectful.
d. Call every week.

Answer 51

b. Be honest, loyal, and discreet with no hidden interest.

Question 52

What is agency disclosure?

a. Licensee must disclose in writing who they represent.
b. Licensee must notify the Designated Broker who they represent.
c. Licensee must notify the Real Estate Agency who they represent.
d. Licensee must notify the Dept. of Licensing who they represent.

Answer 52

a. Licensee must disclose in writing who they represent.

Question 53

When must an agent make the agency disclosure to the consumer?

a. After all paperwork is signed.
b. Prior to signing any offer.
c. Before meeting with any potential customers.
d. At closing at the title company.

Answer 53

b. Prior to signing any offer.

Question 54

What happens is no agency disclosure is made?

a. Gross misdemeanor.
b. Gross Felony charge.
c. Termination of job.
d. Termination of the transaction.

Answer 54

a. Gross misdemeanor.

Question 55

What is the BEST definition of Brokerage?

a. Real estate office building with a visible sign.
b. Franchised real estate company.
c. A person or entity licensed to buy, sell, exchange, or lease real estate property for a fee.
d. Designated Broker in a real estate office.

Answer 55

c. A person or entity licensed to buy, sell, exchange, or lease real estate property for a fee.

Question 56

Who or what determines the Brokerage fee?

a. The Real Estate Commission.
b. The local Designated Brokers’ Union.
c. The Director of the Real Estate Commission.
d. Negotiable between parties to that Brokerage agreement.

Answer 56

d. Negotiable between parties to that Brokerage agreement.

Question 57

Does an agent owe the buyer client anything after the termination of the agreement or relationship?

a. An obligation of confidentiality extends even after work is done, whether the transaction closes or fails.
b. The agent no longer owes any duties. All ties are broken.
c. 6 months of loyalty.
d. A friendly thank you note is advised, but nothing beyond that.

Answer 57

a. An obligation of confidentiality extends even after work is done, whether the transaction closes or fails.

Question 58

What best describes an anti-trust law?

a. Describes how to handle a transaction without trust funds.
b. This forbids the control of listing agreements.
c. Regulates relationships with clients and other agents by limiting anticompetitive behavior.
d. Allow area brokers to control an area.

Answer 58

c. Regulates relationships with clients and other agents by limiting anticompetitive behavior.

Question 59

A conviction of Group Boycotting or Price Fixing can lead to:

a. A fine of up to $5000 for an individual, plus having to work pro-bono for 6 months. There are no penalties for a brokerage firm.
b. Up to 10 years in prison and/or up to $1,000,000 in fines for an individual. Up to $100,000,000 for a corporation/firm.
c. Up to $1,000,000 in fines for a corporation/firm. An individual must perform to up to 10 years of public service.
d. The charges are strict for price fixing or market allocation, but there are no penalties for tie-in arrangements or group boycotting as they are too difficult to prove.

Answer 59

b. Up to 10 years in prison and/or up to $1,000,000 in fines for an individual. Up to $100,000,000 for a corporation/firm.

Question 60

A perc test is MOST likely required for:

a. The condition of well water mineral content.
b. Deciding awards for good business practices.
c. Honors given by the Real Estate Commission.
d. Deciding the type of septic system that may be allowed on a property

Answer 60

d. Deciding the type of septic system that may be allowed on a property