WA BROKER EXAM - 30-QUESTION MOCK, FULL TEXT ============================================ Plain-text mirror of https://livinginmaricopa.com/wa-quiz.html 30 questions. Each entry gives the question, all four choices, the correct answer, a one-line explanation and the statutory citation. ------------------------------------------------------------------------------ QUESTION 1 [Ops] A broker receives an earnest money check from a buyer on Monday. By when must the broker deliver it to the designated broker? A) By the next banking day B) Within 2 business days C) Within 3 business days D) Immediately upon mutual acceptance CORRECT: B) Within 2 business days WHY: Licensee -> firm is 2 business days. The next-banking-day rule is the firm's deposit duty, a different actor. CITE: WAC 308-124E / RCW 18.85.285 ------------------------------------------------------------------------------ QUESTION 2 [Ops] A firm holds pooled trust deposits. Interest earned on deposits of $10,000 or under is distributed how? A) 100% to the depositing client B) 50% housing trust fund / 50% education C) 75% housing trust fund / 25% real estate education account D) 100% to the real estate commission account CORRECT: C) 75% housing trust fund / 25% real estate education account WHY: 75% housing trust fund, 25% real estate education account. CITE: RCW 18.85.285 ------------------------------------------------------------------------------ QUESTION 3 [Ops] Buyer and seller both claim the earnest money. The designated broker holds it. Under RCW 18.85.285(9), the DB must give written notification to all contracting parties that includes a disbursement date no later than: A) 10 consecutive days after the notification date B) 15 consecutive days after the notification date C) 30 consecutive days after the notification date D) 60 consecutive days after the notification date CORRECT: C) 30 consecutive days after the notification date WHY: 30 consecutive days after the notification date. This is the DB's license-law duty. CITE: RCW 18.85.285(9) ------------------------------------------------------------------------------ QUESTION 4 [Ops] A title company holding funds in a residential transaction receives a written demand for release. Under RCW 64.04.220 it has how long to notify, release, or interplead? A) 10 days B) 15 days C) 20 days D) Interpleader is not available in Washington CORRECT: B) 15 days WHY: 15 days to notify, release, or interplead. D is the trap the first delta sheet planted -- interpleader is expressly available, and under subsection (8) at any time. CITE: RCW 64.04.220 ------------------------------------------------------------------------------ QUESTION 5 [Ops] Before closing, a seller asks the firm to release the earnest money to him because he believes the buyer defaulted. The purchase agreement does not address termination. The firm may disburse only if: A) The designated broker documents a good-faith determination B) There is a written release from both the purchaser and the seller C) Fourteen days pass with no objection from the buyer D) The seller signs an indemnity agreement CORRECT: B) There is a written release from both the purchaser and the seller WHY: Written release from both. Exceptions are termination per the agreement's own terms, or funds to the designated closing escrow agent -- neither applies here. CITE: WAC 308-124E-110(3) ------------------------------------------------------------------------------ QUESTION 6 [Ops] How long must a Washington firm retain transaction records? A) 2 years B) 3 years C) 5 years D) 7 years CORRECT: B) 3 years WHY: 3 years. C is Arizona's five. CITE: WAC 308-124 ------------------------------------------------------------------------------ QUESTION 7 [Ops] A property manager holds tenant security deposits in a trust account. Interest on that account: A) Goes 75/25 to the housing trust fund and education account B) Is exempt from the interest-bearing housing-trust-fund requirement C) Must always be paid to the tenant D) Must be split evenly between owner and firm CORRECT: B) Is exempt from the interest-bearing housing-trust-fund requirement WHY: PM trust accounts are exempt from the interest-bearing housing-trust-fund requirement. A is the reflex answer and is wrong. CITE: WAC 308-124E-115 ------------------------------------------------------------------------------ QUESTION 8 [Ops] A firm's property management trust account holds security deposits for several owners. Which is prohibited? A) Withdrawing PM commissions monthly by one check to the firm B) Maintaining a supporting schedule for commission withdrawals C) Preauthorized recurring disbursements from the account D) Performing a monthly trial balance CORRECT: C) Preauthorized recurring disbursements from the account WHY: No preauthorized recurring disbursements where the account holds security deposits or multiple clients' funds. The others are all required or permitted. CITE: WAC 308-124E ------------------------------------------------------------------------------ QUESTION 9 [Ops] A broker wants to pay a $500 thank-you to an unlicensed friend who found her a listing lead and also sat in on the listing appointment. This is: A) Permitted if disclosed in writing to the seller B) Permitted if the fee is under $600 C) Prohibited -- the friend performed brokerage services D) Permitted if paid by the firm rather than the broker CORRECT: C) Prohibited -- the friend performed brokerage services WHY: She performed brokerage services (attended the listing appointment), so no payment is lawful -- disclosure and routing do not cure it. CITE: RCW 18.85.301 ------------------------------------------------------------------------------ QUESTION 10 [Ops] A broker buys a rental house through an LLC she controls. She does not tell the seller she holds a real estate license. Under RCW 18.85.361(21) this is: A) Permitted -- the LLC, not the broker, is the buyer B) Permitted -- the duty applies only when acting as an agent C) Prohibited -- licensee status must be disclosed in writing D) Permitted if she is not paid a commission CORRECT: C) Prohibited -- licensee status must be disclosed in writing WHY: Licensee status must be disclosed in writing when buying or selling any interest -- entity purchases and leasing included. Broader than Arizona. CITE: RCW 18.85.361(21) ------------------------------------------------------------------------------ QUESTION 11 [Ops] A team inside a firm wants to be called "Cascade Summit Realty Group." The designated broker approves it in writing in advance. Is the name acceptable? A) Yes -- advance written DB approval is the only requirement B) No -- a team name may not contain "realty" C) Yes, if the firm name also appears on all advertising D) No -- team names are prohibited in Washington CORRECT: B) No -- a team name may not contain "realty" WHY: A team name may not contain "realty" (nor "real estate", "firm", or an entity suffix). DB approval does not cure a prohibited word. CITE: WAC 308-124B-210(2) ------------------------------------------------------------------------------ QUESTION 12 [Ops] A client demands the return of documents and funds. The licensee does not respond. After how long is this prima facie evidence of conversion? A) 10 days B) 20 days C) 30 days D) 60 days CORRECT: C) 30 days WHY: 30 days after demand is prima facie conversion. CITE: RCW 18.85.361(5) ------------------------------------------------------------------------------ QUESTION 13 [Ops] A firm opens an additional office two miles away, serving the whole county. What is required? A) Nothing -- offices within 35 miles are always exempt B) A branch office license, with a managing broker as branch manager C) A branch license, but any active broker may manage it D) Only a notice to the department within 10 days CORRECT: B) A branch office license, with a managing broker as branch manager WHY: The 35-mile exemption applies only where activity is confined to one subdivision or tract. Serving the county defeats it. Branch manager must be a managing broker. CITE: RCW 18.85 / WAC 308-124 ------------------------------------------------------------------------------ QUESTION 14 [Licensing] Which activity requires a Washington real estate license? A) Preparing a broker price opinion for a fee B) An owner selling their own home C) An attorney performing services within their practice D) A resident manager renting units in a building where they live CORRECT: A) Preparing a broker price opinion for a fee WHY: BPOs are expressly inside the definition of activities requiring a license. B, C and D are statutory exemptions. CITE: RCW 18.85.011(17); .151 ------------------------------------------------------------------------------ QUESTION 15 [Licensing] An unlicensed person refers a buyer to a broker. Which fact pattern keeps the referral fee lawful? A) They helped fill in the offer but were paid a flat fee B) They were not involved in negotiation or documents, and the fee is not contingent on the licensee being paid C) They were paid 25% of the broker's commission at closing D) They attended the closing but did not speak CORRECT: B) They were not involved in negotiation or documents, and the fee is not contingent on the licensee being paid WHY: Both conditions required: no involvement in negotiation or documents, and the fee not contingent on the licensee being paid. C fails the contingency test. CITE: RCW 18.85.151(8) ------------------------------------------------------------------------------ QUESTION 16 [Licensing] To qualify as a managing broker, an applicant needs: A) 2 years of experience and 30 hours of education B) 3 years full-time experience within the preceding 5 years, and 90 hours in three 30-hour courses within 3 years C) 5 years of experience and a bachelor's degree D) 3 years of experience and passage of the national portion only CORRECT: B) 3 years full-time experience within the preceding 5 years, and 90 hours in three 30-hour courses within 3 years WHY: 3 years full-time within the preceding 5; 90 hours as three 30-hour blocks within 3 years. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 17 [Licensing] May one person serve as designated broker for two different firms? A) No -- a designated broker may serve only one firm B) Yes, with a designated broker endorsement C) Only if the firms are commonly owned D) Only with written consent of the director CORRECT: B) Yes, with a designated broker endorsement WHY: Yes -- a DB may serve more than one firm. A is the Arizona answer. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 18 [Licensing] A broker's license expired 14 months ago and was never renewed. Its status is: A) Inactive B) Suspended C) Canceled D) Expired but renewable with back fees only CORRECT: C) Canceled WHY: Not renewed within 1 year of expiration = canceled. Reinstatement within 2 years of cancellation needs 60 hours (>=30 law), back fees and a $100 penalty. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 19 [Licensing] Standard continuing education for a Washington license renewal is: A) 24 hours every 2 years B) 30 hours every 2 years, including 3 core and 3 fair housing C) 30 hours every year D) 90 hours every 2 years CORRECT: B) 30 hours every 2 years, including 3 core and 3 fair housing WHY: 30 hours / 2 years, incl. 3 core + 3 fair housing, >=15 within 24 months. A is Arizona's 24. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 20 [Licensing] A broker on inactive status for four years wants to reactivate. What is required? A) Nothing -- inactive licensees are exempt from CE B) A 30-hour course completed within 1 year before reactivating C) Retaking the state exam D) 60 hours including 30 in real estate law CORRECT: B) A 30-hour course completed within 1 year before reactivating WHY: Inactive more than 3 years -> a 30-hour course within 1 year before reactivating. A is true only while inactive. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 21 [Licensing] A broker leaves a firm. The designated broker refuses to surrender her license until she returns a company laptop. This is: A) Permitted -- the firm holds the license B) Permitted if the laptop is worth more than $500 C) Improper -- the DB must surrender without delay and may not condition surrender D) Permitted for up to 10 days CORRECT: C) Improper -- the DB must surrender without delay and may not condition surrender WHY: The firm holds the license, but the DB must surrender without delay and may not condition surrender on anything. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 22 [General] Who has authority to adopt rules and discipline licensees in Washington? A) The Real Estate Commission B) The director, with the commission's advice and approval C) The commission by majority vote, subject to the governor's veto D) The Attorney General CORRECT: B) The director, with the commission's advice and approval WHY: The director makes rules, licenses and disciplines. The commission is advisory only. A is the ADRE-shaped instinct and it is the single biggest general-rules trap. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 23 [General] The Washington Real Estate Commission consists of: A) Nine members appointed by the director B) The director as chair plus six members appointed by the governor to 6-year terms C) Five members elected by licensees D) Seven members appointed by the legislature CORRECT: B) The director as chair plus six members appointed by the governor to 6-year terms WHY: Director as chair plus six governor-appointed members, 6-year terms, >=2 from each side of the Cascades, meets 4 times a year. CITE: RCW 18.85 ------------------------------------------------------------------------------ QUESTION 24 [General] Maximum fine per violation under RCW 18.235.110: A) $1,000 B) $2,500 C) $5,000 D) $10,000 CORRECT: C) $5,000 WHY: $5,000 per violation. $1,000/day is the separate unlicensed-practice penalty. CITE: RCW 18.235.110 ------------------------------------------------------------------------------ QUESTION 25 [General] A licensee is charged with a felony. He is not convicted. What must he do? A) Nothing until conviction B) Notify the program within 20 days of the charge C) Notify the program within 30 days of the charge D) Notify only at the next renewal CORRECT: B) Notify the program within 20 days of the charge WHY: 20 days, and a charge triggers it -- conviction is not required. CITE: RCW 18.235 / 18.85 ------------------------------------------------------------------------------ QUESTION 26 [Agency] A buyer contacts a broker and begins touring homes. No written agreement is signed. The broker is: A) Working with a customer, with no agency relationship B) The buyer's agent by operation of law C) A subagent of the seller D) A transaction broker until an agreement is signed CORRECT: B) The buyer's agent by operation of law WHY: Buyer's agent by operation of law. There is no customer status in Washington -- A is the Arizona reflex. CITE: RCW 18.86.020 ------------------------------------------------------------------------------ QUESTION 27 [Agency] A Washington broker's duties to a principal are best described as: A) Common-law fiduciary duties B) Statutory duties that supersede common-law fiduciary duty C) Fiduciary duties supplemented by statute D) Contractual duties only CORRECT: B) Statutory duties that supersede common-law fiduciary duty WHY: Duties are statutory and expressly supersede common-law fiduciary duty. If "fiduciary" appears, it is wrong. CITE: RCW 18.86.110 ------------------------------------------------------------------------------ QUESTION 28 [Agency] Two brokers in the same firm represent the buyer and the seller in one transaction. Who are the limited dual agents? A) The firm itself B) Both appointed brokers C) The designated broker and the supervising managing broker D) No dual agency exists; each broker is a single agent and nothing more is required CORRECT: C) The designated broker and the supervising managing broker WHY: The designated broker and supervising managing broker are the limited dual agents; each appointed broker stays a single agent. A is the trap. CITE: RCW 18.86 ------------------------------------------------------------------------------ QUESTION 29 [Agency] A buyer services agreement is silent as to its term. It expires after: A) 30 days B) 60 days C) 90 days D) It does not expire until terminated in writing CORRECT: B) 60 days WHY: 60 days by default when the term is unspecified. CITE: RCW 18.86.080(7) ------------------------------------------------------------------------------ QUESTION 30 [Agency] A commercial buyer will not sign a buyer services agreement. May the firm still be compensated? A) No -- no services agreement, no compensation, without exception B) Yes, via a written Compensation Disclosure under RCW 18.86.080(8) C) Yes, by oral agreement if witnessed D) Only if the seller agrees to pay CORRECT: B) Yes, via a written Compensation Disclosure under RCW 18.86.080(8) WHY: A commercial buyer may sign a written Compensation Disclosure instead. Also exempt: BPOs and referrals where the referring firm provided no brokerage services. CITE: RCW 18.86.080(8), (9) ------------------------------------------------------------------------------ End of file. 30 questions.