WA BROKER EXAM - 13-QUESTION RE-DRILL, FULL TEXT ================================================ Plain-text mirror of https://livinginmaricopa.com/wa-drill.html 13 questions. Each entry gives the question, all four choices, the correct answer, a one-line explanation and the statutory citation. ------------------------------------------------------------------------------ QUESTION 1 [PM trust] An owner signs a written directive asking that the property management trust account holding her units be interest-bearing. The interest is paid to: A) The state, 75% housing trust fund and 25% education B) The owner C) The tenants, pro rata by deposit D) The firm, as a management fee CORRECT: B) The owner WHY: A PM account is interest-bearing only by written agreement or owner directive, and the interest goes to the owner. CITE: WAC 308-124E-115 ------------------------------------------------------------------------------ QUESTION 2 [PM trust] Which trust account's interest actually goes 75% to the housing trust fund and 25% to the real estate education account? A) Any trust account the firm maintains B) A property management account holding security deposits C) A pooled account holding deposits of $10,000 or under D) Only accounts holding more than $10,000 CORRECT: C) A pooled account holding deposits of $10,000 or under WHY: The 75/25 split applies to pooled deposits of $10,000 or under. PM accounts are exempt -- applying the split to them is the reflex error. CITE: RCW 18.85.285 · WAC 308-124E-115 ------------------------------------------------------------------------------ QUESTION 3 [PM trust] A firm's PM trust account holds security deposits for several different owners. The bookkeeper wants to set up an automatic monthly transfer to cover routine owner draws. This is: A) Fine, if reconciled monthly B) Fine, if each owner authorises it in writing C) Prohibited D) Fine, if the transfer never exceeds the owner's balance CORRECT: C) Prohibited WHY: No preauthorized recurring disbursements where the account holds security deposits or multiple clients' funds. No authorisation cures it. CITE: WAC 308-124E ------------------------------------------------------------------------------ QUESTION 4 [PM trust] How must a firm take its earned property management commissions out of the trust account? A) Per transaction, as each rent payment clears B) At least monthly, by one check to the firm, with a supporting schedule C) Quarterly, by transfer to the operating account D) At the designated broker's discretion, documented in the file CORRECT: B) At least monthly, by one check to the firm, with a supporting schedule WHY: At least monthly, one check to the firm, with a supporting schedule. CITE: WAC 308-124E ------------------------------------------------------------------------------ QUESTION 5 [PM trust] Mid-tenancy, an owner asks the firm to release half of a tenant's security deposit to cover a repair. The firm may: A) Release it, with written notice to the tenant B) Release it if the lease permits owner draws C) Not release it without the tenant's written agreement D) Release it after 30 days if the tenant does not object CORRECT: C) Not release it without the tenant's written agreement WHY: No security-deposit disbursement without the tenant's written agreement until the tenancy ends. CITE: WAC 308-124E ------------------------------------------------------------------------------ QUESTION 6 [Conversion] A client delivers a written demand for the return of her documents and funds on March 1. Nothing has been returned by April 5. This is: A) A technical violation only, curable on return B) Prima facie evidence of conversion C) Grounds for an automatic licence suspension D) Not yet actionable -- the period is 60 days CORRECT: B) Prima facie evidence of conversion WHY: More than 30 days after demand. Failure to return money or documents within 30 days is prima facie evidence of conversion. CITE: RCW 18.85.361(5) ------------------------------------------------------------------------------ QUESTION 7 [The numbers] Match the deadline: a licensee is charged with a felony on June 1. He must notify the program by: A) June 11 B) June 21 C) July 1 D) The next renewal CORRECT: B) June 21 WHY: 20 days -- and the charge triggers it, not the conviction. Do not confuse this with the 30-day conversion period or the 30-day disbursement date. CITE: RCW 18.235 · RCW 18.85 ------------------------------------------------------------------------------ QUESTION 8 [DB role] A managing broker with a controlling interest in one firm is asked to become designated broker for a second, unrelated firm. She may: A) Not do so -- a designated broker may serve only one firm B) Do so, with a designated broker endorsement C) Do so only if the firms share common ownership D) Do so only with the written consent of the director CORRECT: B) Do so, with a designated broker endorsement WHY: A designated broker may serve more than one firm. Option A is the Arizona rule and is the trap -- this is the one miss on your list that was Arizona instinct. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 9 [DB role] To be a designated broker in Washington, a person must be: A) Any broker the firm nominates in writing B) A managing broker with a controlling interest and an endorsement C) A managing broker with 5 years of experience D) An owner of the firm, licensed or not CORRECT: B) A managing broker with a controlling interest and an endorsement WHY: Managing broker + controlling interest + endorsement. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 10 [Renewal] A broker's licence expired 8 months ago and has not been renewed. Its status is: A) Canceled B) Expired, and still renewable C) Inactive D) Revoked CORRECT: B) Expired, and still renewable WHY: Cancellation happens only when a licence goes unrenewed for 1 year past expiration. At 8 months it is expired but still renewable. Compare the 14-month case, which is canceled. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 11 [Renewal] A licence was canceled 18 months ago. To reinstate, the licensee needs: A) Back fees only B) 60 clock hours including at least 30 in real estate law, within the prior year, plus back fees and a $100 penalty C) To requalify from the beginning, including the exam D) 30 clock hours and a $250 penalty CORRECT: B) 60 clock hours including at least 30 in real estate law, within the prior year, plus back fees and a $100 penalty WHY: Within 2 years of cancellation: 60 clock hours (>=30 real estate law) completed in the prior year, back fees, and a $100 penalty. Beyond two years -- requalify. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 12 [Surrender] A broker resigns. There is a genuine, documented dispute over an unpaid commission. The designated broker holds the broker's licence until it is settled. This is: A) Proper -- the firm holds the licence and may assert its interest B) Proper for up to 10 days C) Improper -- the DB must surrender without delay and may not condition surrender D) Proper only if the dispute exceeds $1,000 CORRECT: C) Improper -- the DB must surrender without delay and may not condition surrender WHY: The firm does hold the licence -- which is why option A feels right and is the trap. But the DB must surrender it without delay and may not condition surrender on anything, a commission dispute included. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 13 [Surrender] After surrender, that broker is not yet affiliated with a new firm. On inactive status she may: A) Perform brokerage services while her transfer is pending B) Perform no brokerage services at all C) Perform only property management D) Perform brokerage services for 30 days CORRECT: B) Perform no brokerage services at all WHY: Inactive means not affiliated with a firm and no brokerage services. Exempt from CE while inactive -- but inactive over 3 years requires a 30-hour course within 1 year before reactivating. CITE: RCW 18.85 ------------------------------------------------------------------------------ End of file. 13 questions.