Question

a. by Express agreement
b. by necessity
c. by ratification
d. by estoppel

Answer 1

Answer: b. by necessity

Answer 2

Answer: d. before a party signs an offer in the transaction

Answer 3

Answer: c. a dual agent

Answer 4

Answer: a. providing advice regarding an amount to offer the sellers

Answer 5

Answer: b. may include an extender clause

Answer 6

Answer: d. an agent did not reveal a latent defect but the principal had no knowledge of the agents actions until a lawsuit was filed

Answer 7

Answer: b. present both offers at the same time

Answer 8

Answer: c. confidentiality

Answer 9

Answer: d. Both a and c

Answer 10

Answer: a. both parties

Answer 11

Answer: A. A building contractor
A building contractor is often involved in selling homes he has built and owns himself. As long as he is acting in this capacity, he does not have to have a real estate license. Note that while an unlicensed person may act as a greeter at an open house, she can't host or conduct tours or even answer questions except to reiterate basic facts about the property from a form prepared by an agent.

Answer 12

Answer: D. Failure to provide a buyer with a property disclosure form
Depending on the circumstances, failure to provide a property disclosure form in a transaction where one is required could be considered incompetence, negligence, malpractice, or misrepresentation. In any case, it violates the Uniform Regulation of Business and Professions Act. An advertisement must include the firm's name as licensed, not the name of the firm's designated broker or the telephone number.

Answer 13

Answer: A. College Diploma
A college diploma is not a requirement for a broker's license

Answer 14

Answer: D. Affiliated licensees are not required to maintain records of closed transactions
Real Estate firms ( as opposed to its individual affiliated licensees) must maintain records of closed transactions for at least three years. The firm is responsible for the custody and accuracy of the required records, and they should be kept at a main office or branch office.

Answer 15

Answer: A. home inspector
A home inspector is not directly involved in representing others in the process of buying, selling, leasing, or advertising real property, so an inspector does not need a real estate license.

Answer 16

Answer: B. the firm's office
A firm must keep all records at its main office or branch office. While I may be advantageous for a licensee who is rarely in the office to keep copies of the records for personal reference, the law makes the firm ultimately responsible for the custody and accuracy of all required records.

Answer 17

Answer: D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller
It's legal for a real estate licensee to solicit business from a "For Sale by Owner" seller. If the FSBO seller agrees that the licensee will help sell the property by advertising it on the MLS and elsewhere, in exchange for a fee, then the seller and licensee would simply enter into a listing agreement. (in addition, the other three options can be discarded via process of elimination. Undisclosed dual agencies, failure to supervise employees, and blind ads are all illegal.)

Answer 18

Answer: B. Within 20 days of a verdict or judgement against her
A licensee must notify the department of Licensing's Real Estate Program Manager within 20 days of learning of any civil court order, verdict, or judgement entered against the licensee, if it involves real estate or business activities

Answer 19

Answer: D. Penalties for not disclosing agency status
Washington's real estate agency law is found in the Real Estate Brokerage Relationships Act (RWC chapter 18:86). It addresses the topics listed in answers A-C (definition of dual agency, creation and termination of agency, and vicarious liability), but there is no reference in the law to penalties for not disclosing agency status. Penalties are found in the license law (RCW chapter 18:85).

Answer 20

Answer: D. Complete a course in Fundamentals
One requirement for a broker's license in Washington is completion of a course in Fundamentals. No college is required, Washington residency is not required, and the applicant must be at least 18 ( not 21).

Answer 21

Answer: B. unless the purchase and sale agreement discloses that the deposit is a note
When preparing the buyer's offer to purchase, the selling agent must disclose on the purchase and sale agreement form that the deposit is in the form of a promissory note (or any other form that is not the equivalent of cash). The seller can then take this into account in deciding whether or not to accept the buyer's offer

Answer 22

Answer: A. suspend Q's license
The Director can suspend Q's license until satisfactory arrangements are made to correct the delinquency.

Answer 23

Answer: B. Commissions can be paid to licensees only via their firm
A licensee may be paid a commission only by the real estate firm he is affiliated with. Affiliated licensees are not designated brokers, they work for a firm. "A Realty" cannot be a brokerage because no designated broker has a controlling interest in the entity. An affiliated licensee cannot receive compensation directly from a client or customer, or from another licensee, another real estate firm, or another business entity

Answer 24

Answer: C. deposited in the real estate education account, to be used solely for education for the benefit of licensees
Fines are deposited in the education account and used for the education of licensees

Answer 25

Answer: A. award damages to individuals defrauded by real estate licensees
The Director cannot award damages to victims of real estate fraud. Many states have what is called a "recovery fund" from which victims of real estate fraud can recover at least part of their losses. Washington doesn't have such a remedy for the consumer, however.

Answer 26

Answer: A. He is eligible for the commission because he was duly licensed when the sale was made.
The commission is earned when the sale is made, not when it is paid (at closing). The agent's license was revoked after the sale was made, so the agent was eligible for a commission when the services were provided and is still entitled to collect it.

Answer 27

Answer: B. gross misdemeanor
Selling real estate without a license is a gross misdemeanor, which in terms of seriousness is somewhere between a misdemeanor and a felony