Washington Real Estate Practice Exam

Correct answer: A 30-clock-hour real estate course completed within one year before applying for active status.

For an inactive license held more than three years, RCW 18.85.265 requires proof of a 30-hour real estate course within the prior year, in addition to the other activation requirements. The stated state-employee exception does not apply here.

Why the other choices are incorrect:

• A course completed at any time in the last ten years. The statute specifies the preceding year.
• A 300-hour course completed after reactivation. The statute instead requires 30 hours before the application.
• No education is required after three inactive years. More than three years triggers the cited course requirement.

Sources:

• RCW 18.85.265 — (3)

Correct answer: At least three years as a full-time licensed broker within the previous five years.

The statute requires three years of full-time licensed broker experience within the five years before applying for the managing broker examination, in Washington or a jurisdiction with comparable requirements. It separately recognizes qualifications based on allied practical experience under rules.

Why the other choices are incorrect:

• Any three months of part-time sales work. That does not meet the ordinary licensed-experience requirement.
• No experience after passing the broker exam. The ordinary managing broker route includes a separate experience requirement.
• Five years as an unlicensed receptionist. That is not the licensed-experience route described.

Sources:

• RCW 18.85.111 — (1)(c)

Correct answer: The own-account transaction falls within the owner exemption.

RCW 18.85.151 exempts a person buying or disposing of property for that person’s own account, or a qualifying group’s account. This question concerns an unlicensed owner and does not excuse misconduct by a licensee in a personal transaction.

Why the other choices are incorrect:

• The exemption authorizes the homeowner to sell neighbors’ homes for a fee. That would be services for others, not the stated own-account transaction.
• Every private homeowner must first obtain a broker license. The statute exempts qualifying own-account transactions.
• Only a property owned for 20 years qualifies. The cited exemption imposes no such holding period.

Sources:

• RCW 18.85.151 — (1), version effective until January 1, 2028

Correct answer: No. The assessment also applies when an inactive license is renewed.

RCW 18.85.451 assesses $20 on original broker and managing broker licenses and renewals, including inactive renewals. RCW 18.85.461 directs these receipts to the state real estate research account. This is one statutory assessment, not the full licensing fee.

Why the other choices are incorrect:

• Yes, the fee applies only to the first license. It also applies at renewal.
• No, because the research assessment is $200 each month. The cited assessment is $20 on an original license and renewal, not a monthly charge.
• Yes, inactive renewals are expressly excluded. The statute expressly includes them.

Sources:

• RCW 18.85.451 — (1)
• RCW 18.85.461 — (1)

Correct answer: The director of the Department of Licensing.

RCW 18.85.041 assigns license enforcement, licensing decisions and hearings to the director. The exam vendor and industry organizations do not replace that regulator.

Why the other choices are incorrect:

• The private exam administrator. Administering an examination does not confer the director’s licensing authority.
• The county assessor. Property assessment is different from professional licensing.
• The local multiple listing service. An MLS does not issue Washington real estate licenses.

Sources:

• RCW 18.85.041 — (2)(a)

Correct answer: Two years from issuance.

RCW 18.85.191 provides a two-year term from issuance and biennial renewal. Timely renewal requires satisfying the applicable requirements and paying the fee.

Why the other choices are incorrect:

• Until the broker changes firms, with no renewal date. Firm affiliation does not eliminate expiration and renewal requirements.
• Six months. The statutory individual-license term is two years.
• Five years. That is not the term set by the statute.

Sources:

• RCW 18.85.191 — first paragraph

Correct answer: The attorney-in-fact must act without compensation.

The specific attorney-in-fact exemption applies to a duly authorized person acting under a power of attorney without compensation. Possessing a power of attorney alone is not the entire test.

Why the other choices are incorrect:

• The person may charge any fee if it is disclosed. Disclosure does not replace the exemption’s no-compensation condition.
• Payment must come from the buyer instead of the owner. Changing the payer does not satisfy acting without compensation.
• The fee must be less than one percent. The provision does not create a one-percent allowance.

Sources:

• RCW 18.85.151 — (2), version effective until January 1, 2028

Correct answer: Include the firm’s licensed name or licensed assumed name clearly and conspicuously.

Washington’s advertising rule covers web pages, email and other advertising and requires the firm’s licensed identity. The disciplinary statute requires that identity to be clear and conspicuous.

Why the other choices are incorrect:

• Nothing; websites are excluded. The rule expressly includes internet advertising and web pages.
• Add only a personal phone number. A phone number does not identify the licensed firm.
• Add the firm name only to a private invoice. The requirement applies to advertising itself.

Sources:

• WAC 308-124B-210 — (1)
• RCW 18.85.361 — (8)

Correct answer: The broker must not perform brokerage services while the license remains inactive.

The holder of an inactive license is prohibited from conducting brokerage services until the license is reissued under the licensing chapter. An unexpired inactive license is not permission to practice.

Why the other choices are incorrect:

• Negotiate only for former clients. The prohibition contains no former-client exception.
• Negotiate if a commission is deferred. Deferring payment does not permit inactive practice.
• Practice for 30 days before reactivation. The cited statute provides no such grace period.

Sources:

• RCW 18.85.265 — (1)

Correct answer: No. Negotiating the sale for expected compensation is a brokerage service.

The law includes offering or negotiating a purchase, sale, exchange, lease or rental for another for compensation or expected compensation. A different fee label does not remove the licensing requirement.

Why the other choices are incorrect:

• Yes, if payment is delayed until next year. Delaying expected compensation does not change the activity.
• Yes, land without a building is exempt. The definition includes real estate and real-property interests.
• Yes, only a fee called a commission is regulated. The definition covers compensation or its promise or expectation, not one fee label.

Sources:

• RCW 18.85.011 — (17)(b)
• RCW 18.85.331 — first paragraph

Correct answer: Wednesday, the next banking day.

Cash must go into the firm’s trust account no later than the next banking day. The rule’s exception for certain checks held under an earnest money agreement does not extend the cash deadline.

Why the other choices are incorrect:

• Friday of the following week. That misses the next-banking-day deadline.
• Any date the broker chooses. The rule sets a specific deadline for cash.
• The eventual closing date. Cash is not held until closing under this rule.

Sources:

• WAC 308-124E-105 — (6)(a)–(c)

Correct answer: The broker must receive that compensation from the licensed firm with which the broker is licensed.

RCW 18.85.361(19) prohibits a broker or managing broker from accepting compensation for covered acts from anyone except the licensed firm with which that person is licensed.

Why the other choices are incorrect:

• Payment must go to the county recorder instead. The statute identifies the licensed firm, not the recorder.
• The broker may accept it if called a gift for the services. Valuable consideration for brokerage acts is covered, not only payments labeled commission.
• Direct payment is allowed whenever the client prefers it. Client preference does not change the statutory payment path.

Sources:

• RCW 18.85.361 — (19)

Correct answer: The broker acts as the buyer’s agent.

RCW 18.86.020 makes a broker performing services for a buyer the buyer’s agent unless one of its specified seller-representation or seller-status exceptions applies. Firms must also meet the services-agreement requirements.

Why the other choices are incorrect:

• The broker automatically represents both parties without consent. Limited dual agency requires the applicable appointment and consent.
• The broker automatically represents the seller because the seller owns the property. Ownership does not override the stated default buyer agency.
• The broker cannot have duties until a commission is paid. Agency does not depend on payment of compensation.

Sources:

• RCW 18.86.020 — (1)–(2)

Correct answer: Listings and other brokerage-service contracts are property of the real estate firm.

RCW 18.85.275(2) states that listings, transactions, management agreements and other brokerage-service contracts are property of the firm. A broker’s participation does not automatically transfer them on departure.

Why the other choices are incorrect:

• Every listing automatically follows the individual broker. The statute identifies the firm as owner of these contracts.
• The broker may destroy all copies to avoid confusion. The firm must retain required records; destruction is not the required response.
• The contracts become public property on departure. Departure does not make them public property.

Sources:

• RCW 18.85.275 — (2)

Correct answer: No. The shorter contractual deadline controls.

WAC 308-124E-100 requires delivery to the appropriate managing broker, branch manager or designated broker within the shorter of two business days after the client’s signature or the contract’s earlier required deadline.

Why the other choices are incorrect:

• Yes, if the broker keeps the money in a desk. Storage does not extend the deadline.
• Yes, two business days is always available. The rule requires sooner delivery when the contract requires it.
• No, because every deposit must always be delivered within one hour. The rule does not impose a universal one-hour period.

Sources:

• WAC 308-124E-100 — (1)–(2)

Correct answer: Written disclosure of the choice between a separate interest-bearing trust account and the pooled account if the transaction parties agree in writing.

For more than $10,000, WAC 308-124E-110 requires written disclosure of the option for a separate interest-bearing account paying interest to the party or parties, or the pooled account with the parties’ written agreement.

Why the other choices are incorrect:

• The broker may put it in the broker’s personal savings account. Neither permitted choice is a personal account.
• No choice exists for deposits over $10,000. The rule requires disclosure of the available options.
• The buyer must give all principal to the state. The rule governs trust-account treatment and interest, not forfeiture of the deposit.

Sources:

• WAC 308-124E-110 — (1)(b)

Correct answer: No. Required electronic records must be immediately retrievable for viewing and printing at the licensed office.

WAC 308-124C-110 permits electronic or remote storage, but requires immediate retrieval, indexing, and the ability to view and print records at the firm’s licensed office.

Why the other choices are incorrect:

• No, because electronic records are always forbidden. The rule allows electronic storage when its conditions are met.
• Yes, if the firm remembers the transaction details. Memory does not replace required records.
• Yes, any electronic storage is automatically sufficient. The rule imposes retrieval and access conditions.

Sources:

• WAC 308-124C-110 — (3)

Correct answer: No. The first active renewal requires 90 hours of the prescribed education.

The first broker renewal requires 90 hours including real estate law, advanced practices and continuing education as prescribed by the director. Do not confuse this with the ordinary later-renewal minimum.

Why the other choices are incorrect:

• No, because the broker must repeat the licensing exam at every renewal. The cited provision requires education, not a recurring licensing exam.
• Yes, if the broker completed many transactions. Transaction volume does not substitute for the required coursework.
• Yes, every active renewal has the same 30-hour requirement. First renewal has a separate 90-hour requirement.

Sources:

• RCW 18.85.101 — (2)

Correct answer: The reconciled bank balance, check register or bank control account, and client ledgers including the opening-account ledger.

The designated broker must prepare a monthly trial balance and reconcile client ledgers with the bank statement and check register or control account. The opening-account ledger is included, and the balances must agree.

Why the other choices are incorrect:

• Only the largest client’s ledger and the office budget. All client liabilities must be accounted for.
• The advertising budget and the owner’s personal account. Those are not the trust reconciliation records.
• Only the bank statement and an estimate of future commissions. Future commissions do not establish client trust liabilities.

Sources:

• WAC 308-124E-105 — (10)–(11)

Correct answer: The applicant must be at least 18 years old.

Initial broker qualifications include age 18 or older, a high school diploma or equivalent, required education and passing the examination. Passing one requirement does not waive the others.

Why the other choices are incorrect:

• All applicants must be at least 25. The statutory minimum is 18.
• A designated broker can lower the statutory minimum age. The statute does not give the designated broker that authority.
• Passing the exam waives the age requirement. The age and examination requirements are separate.

Sources:

• RCW 18.85.101 — (1)

Correct answer: The firm’s regular business bank account.

WAC 308-124E-105(16)(c) requires commissions to persons licensed to the firm and business expenses to be paid from the regular business account. The separate allowance for commissions owed to another firm does not authorize direct trust payment to the firm’s own broker.

Why the other choices are incorrect:

• From the county’s tax account. That account is not the firm’s payment source.
• Directly from the client trust account. The rule prohibits this payment to the firm’s own licensee from trust.
• From an unrelated client’s security deposit. Unrelated client funds cannot fund the payment.

Sources:

• WAC 308-124E-105 — (14), (16)(c)

Correct answer: No. In this situation, a written release from both buyer and seller is required before disbursement.

The rule generally bars disbursement before closing or a contractual condition without both parties’ written release. It separately permits disbursement under an agreement that terminates by its own terms and reasonable preclosing transfer to the designated escrow agent; those exceptions are excluded here.

Why the other choices are incorrect:

• Yes, if the request is made by text after business hours. The time or message medium does not remove the requirement.
• Yes, the depositor alone always controls release. The rule requires both parties’ release in the stated circumstances.
• Yes, if the broker believes the buyer will eventually win a dispute. The broker’s prediction does not replace release authority.

Sources:

• WAC 308-124E-110 — (3)

Correct answer: Both parties’ written consent in their services agreements, with the required separately initialed consent.

RCW 18.86.060 requires both parties’ written consent in the services agreement. RCW 18.86.020 requires separately initialed consent acknowledging that a limited dual agent cannot advocate favorable terms for one principal to the other’s detriment.

Why the other choices are incorrect:

• No consent if both parties like the broker. Personal trust does not replace the legal consent requirements.
• Only the buyer’s willingness to pay a fee. A fee agreement alone is not dual-agency consent.
• Only the seller’s oral permission. Both parties must provide written consent.

Sources:

• RCW 18.86.060 — (1)
• RCW 18.86.020 — (2)(b)(iv)

Correct answer: No. Paying or agreeing to pay compensation does not establish the agency relationship.

RCW 18.86.080 permits compensation from different sources and sharing between firms. An agreement to pay, or actual payment, does not establish agency between the payer and the broker.

Why the other choices are incorrect:

• Yes, every broker automatically represents whoever pays. The statute expressly rejects payment alone as the agency test.
• No, because compensation can never be shared between firms. The statute permits compensation sharing; that is separate from representation.
• Yes, unless the fee is below one percent. The rule does not depend on that percentage.

Sources:

• RCW 18.86.080 — (1)–(3)

Correct answer: No. Each client requires an individual ledger showing receipts and disbursements.

The general trust-account rule requires an individual ledger for each client. Required records also include separate tenant ledgers, including security deposits, in the circumstances covered by the recordkeeping rule.

Why the other choices are incorrect:

• Yes, pooling eliminates the need to identify ownership. Pooling does not eliminate client-level accounting.
• Yes, if all properties are in one county. Location does not remove the ledger requirement.
• No, because firms may never use a pooled trust account. The defect is missing individual accounting, not pooling itself.

Sources:

• WAC 308-124E-105 — (9)
• WAC 308-124C-105 — (1)(d)–(e)

Correct answer: Disburse them to the owner or successor property manager and notify tenants consistently with the landlord-tenant statute.

WAC 308-124E-115(6) directs owner funds to be disbursed according to the agreement and security deposits to the owner or successor manager, with notice to tenants consistent with RCW 59.18.270.

Why the other choices are incorrect:

• Keep them as the firm’s termination fee. The deposits are not the firm’s fee.
• Leave tenants uninformed indefinitely. The rule requires tenant notification by the disbursing firm.
• Distribute them among the firm’s brokers. The brokers are not entitled to tenant deposits.

Sources:

• WAC 308-124E-115 — (6)

Correct answer: 90 hours of approved real estate instruction.

RCW 18.85.101 requires 90 hours covering the prescribed fundamentals and practices courses, subject to approved substitution under RCW 18.85.141. Each course must be completed within two years before applying for the examination.

Why the other choices are incorrect:

• No coursework if the applicant has sales experience. Sales experience alone does not satisfy this provision.
• 300 hours plus a law degree. Those are not the statutory broker education requirements.
• 30 hours total. That does not meet the initial 90-hour requirement.

Sources:

• RCW 18.85.101 — (1)(c)

Correct answer: The designated broker must hold a managing broker license and meet the registration requirements.

RCW 18.85.121 requires a designated broker to hold a managing broker license. Registered designated brokers may serve more than one firm under the specified registration and endorsement rules.

Why the other choices are incorrect:

• No individual license is needed if the firm is licensed. The firm license does not replace the designated broker’s qualifications.
• A mortgage originator license substitutes automatically. The cited law does not create that substitution.
• A broker license alone is sufficient once the firm votes. The statute expressly requires a managing broker license.

Sources:

• RCW 18.85.121 — (1)–(3)

Correct answer: The director chairs the commission, with six appointed members serving in an advisory capacity.

The commission consists of the director as chair and six members appointed by the governor. The appointed members advise the director.

Why the other choices are incorrect:

• Six appointed members issue licenses without the director. The director is chair, and the six members advise the director.
• Each county elects one commissioner. The governor appoints six members; this is not a county election system.
• The exam vendor chairs the commission. The statute names the director as chair.

Sources:

• RCW 18.85.021 — first two paragraphs

Correct answer: No. The broker must present written offers in a timely manner despite the existing contract.

RCW 18.86.030 requires timely presentation of written offers, notices and communications regardless of an existing purchase contract. Presentation is different from seeking additional offers or accepting one.

Why the other choices are incorrect:

• Yes, an existing contract eliminates the presentation duty. The statute expressly preserves the duty in that situation.
• Yes, if the later offer is below asking price. The stated presentation duty does not turn on that price comparison.
• No, because the broker must automatically accept the later offer. Presenting an offer does not authorize the broker to accept it or cancel a contract.

Sources:

• RCW 18.86.030 — (1)(c)

Correct answer: Before the principal signs, or as soon as reasonably practical, but before the parties reach mutual agreement.

The disclosure must identify whether the broker represents the buyer, seller or both, and must meet the writing and timing requirements of RCW 18.86.030. Mutual agreement is the outer deadline specified by the statute.

Why the other choices are incorrect:

• Only at closing. That is later than the statutory outer deadline.
• Never if the broker has given a business card. A business card is not the required written Agency Disclosure.
• Only after the commission is paid. Compensation timing does not set the disclosure deadline.

Sources:

• RCW 18.86.030 — (1)(g)

Correct answer: Seek advice or assistance from the designated broker or appointed managing broker.

For the initial two years, brokers must participate in required reviews and secure supervisory advice or assistance when offering services beyond their expertise. Independent-contractor status does not erase supervision duties.

Why the other choices are incorrect:

• Assume an independent-contractor contract removes supervision. Employment classification does not remove licensing supervision.
• Rely only on the buyer’s oral assurances. That does not satisfy the duty to seek supervisory assistance beyond the broker’s expertise.
• Avoid supervision to demonstrate independence. The initial two years require heightened supervision.

Sources:

• WAC 308-124C-145 — (2)(a), (c)
• RCW 18.85.011 — (13)

Correct answer: Broker.

Washington calls this license a broker license. A managing broker may supervise brokers, while a designated broker acts for the firm under the statutory requirements.

Why the other choices are incorrect:

• Unlicensed sales assistant. The scenario describes licensed brokerage services.
• County recording officer. Recording public documents is not this brokerage role.
• Designated broker, regardless of experience. A designated broker has separate qualifications and an endorsement.

Sources:

• RCW 18.85.011 — (2), (10), (15)

Correct answer: Disclose the known material fact to the buyer.

Brokers owe all parties a nonwaivable duty to disclose known existing material facts that are not apparent or readily ascertainable. This duty does not, by itself, impose an investigation the broker has not agreed to undertake.

Why the other choices are incorrect:

• Stay silent because loyalty cancels all disclosure duties. The statutory duty to disclose known material facts may not be waived.
• Disclose only if the buyer first asks the exact question. The duty is not conditioned on that question.
• Describe it as unknown even though the broker knows it exists. That would conflict with honesty and disclosure duties.

Sources:

• RCW 18.86.030 — (1)(b), (d)

Correct answer: A broker’s price opinion, not an appraisal under the appraisal statute.

The brokerage statute defines a broker’s price opinion as an oral or written property-value report prepared by a licensee. It is not an appraisal under RCW 18.140.010 unless it meets chapter 18.140 RCW.

Why the other choices are incorrect:

• A certified appraisal solely because a broker signed it. A broker signature does not establish compliance with the appraisal law.
• A county tax assessment. The broker is not issuing the assessor’s determination.
• A guaranteed sale price. A value opinion is not a guarantee of a future sale price.

Sources:

• RCW 18.85.011 — (17)(f)

Correct answer: No. The disciplinary statute also covers a licensee’s own-account transactions.

The director’s disciplinary authority under RCW 18.85.361 applies regardless of whether the person acts for their own account or as a broker for someone else. Personal ownership does not excuse material fraud or misrepresentation.

Why the other choices are incorrect:

• No discipline is possible unless the buyer is also licensed. The buyer need not be a licensee for the misconduct provision to apply.
• Yes, a licensee is never regulated when selling personal property. The disciplinary provision expressly includes own-account transactions.
• Yes, unless another firm receives a commission. A cooperating commission is not the test.

Sources:

• RCW 18.85.361 — opening paragraph, (3)

Correct answer: 60 days.

For a buyer, the services agreement must provide a default term of 60 days with an option for a longer term. It must also identify the appointed broker and offer exclusive or nonexclusive relationship choices.

Why the other choices are incorrect:

• Five years automatically. The statute specifies a 60-day default.
• One day with no extension allowed. That is not the statutory default or option.
• No stated term. The agreement must include its term.

Sources:

• RCW 18.86.020 — (2)(b)(i)–(iii)

Correct answer: No. The confidentiality obligation continues after termination.

The seller-agent duties expressly prohibit disclosing confidential information even after the agency relationship ends, except under subpoena or court order. Termination also preserves the duty to account for money and property.

Why the other choices are incorrect:

• Yes, every duty automatically ends at termination. Confidentiality is expressly preserved.
• No, because a former agent must also keep marketing the property forever. Continuing confidentiality does not mean every former performance duty lasts forever.
• Yes, if revealing it helps another client negotiate. A new client’s advantage does not remove the former seller’s protection.

Sources:

• RCW 18.86.040 — (1)(d)
• RCW 18.86.070 — (2)

Correct answer: Ten days.

WAC 308-124B-205 requires submission within ten days, together with the licenses, completed transfer applications and correct fees specified by the rule.

Why the other choices are incorrect:

• At the next renewal, regardless of timing. The rule sets a ten-day deadline.
• One year. That exceeds the required period.
• No notice is needed if the phone number stays the same. An unchanged phone number does not remove the address-change filing.

Sources:

• WAC 308-124B-205 — full section

Correct answer: That the seller holds a real estate license.

RCW 18.85.361(8) provides that licensees advertising their personally owned real property must disclose that they hold a real estate license. A separate provision requires written disclosure when buying, selling or leasing an interest.

Why the other choices are incorrect:

• That the house is government approved. The statute does not require or authorize this claim.
• Only that the seller pays property taxes. That does not disclose licensure.
• Nothing about professional status. The exception still requires license-status disclosure.

Sources:

• RCW 18.85.361 — (8), (21)

Correct answer: Three years following submission of those records to the firm.

RCW 18.85.361(17) makes failure to preserve transaction records for three years following submission to the firm a disciplinary ground. Other obligations may justify retaining records longer.

Why the other choices are incorrect:

• No retention after giving the client a copy. Client delivery does not remove the firm’s recordkeeping duty.
• Six months following the first showing. That is not the statutory period or trigger.
• Until the commission clears. That does not satisfy the three-year minimum.

Sources:

• RCW 18.85.361 — (17)

Correct answer: 30 clock hours of approved instruction.

The ordinary statutory minimum is 30 clock hours every two years, subject to the required subjects and applicable rules. The first broker renewal has a separate 90-hour requirement.

Why the other choices are incorrect:

• 30 hours every month. The statutory period is two years.
• Three hours total. Fair housing and other required components do not reduce the overall total to three.
• No education after the first renewal. Later active renewals still require approved education.

Sources:

• RCW 18.85.211 — (1)

Correct answer: Advance written approval from the firm’s designated broker.

Unlicensed names, titles and brands require the designated broker’s advance written approval. They must also follow the firm-identity and prohibited-branding restrictions in the rule.

Why the other choices are incorrect:

• Approval only after the first advertisement runs. The approval must be in advance.
• Verbal approval from one client only. The rule names the designated broker and requires writing.
• No approval if the broker uses social media. The rule has no social-media exemption.

Sources:

• WAC 308-124B-210 — (2)

Correct answer: Within two business days of mutual acceptance.

WAC 308-124C-140 requires transaction documents and brokerage service contracts to be delivered within two business days of mutual acceptance. This is a document-delivery rule, distinct from trust-fund deposit rules.

Why the other choices are incorrect:

• Only when the client requests it. Delivery is a broker responsibility regardless of a later client request.
• Within 30 calendar days. That exceeds the two-business-day requirement.
• Only after closing. The rule uses mutual acceptance as the trigger.

Sources:

• WAC 308-124C-140 — (7)

Correct answer: Concurrently market the home to the general public and all other brokers.

RCW 18.86.130 restricts marketing residential sales or leases to limited or exclusive groups unless the property is concurrently marketed to the public and other brokers. It preserves an exception reasonably necessary for owner or occupant health or safety and does not require physical access.

Why the other choices are incorrect:

• Exclusive-network marketing alone is always sufficient. The statute generally requires concurrent public and broker marketing.
• Public marketing requires the owner to allow everyone inside. The statute expressly says public marketing does not require property access.
• The rule applies only to commercial warehouses. The provision addresses residential real estate.

Sources:

• RCW 18.86.130 — full section

Correct answer: Tell the owner about the noncash deposit and show that fact in the purchase and sale agreement.

Accepting earnest money other than cash or its equivalent is a disciplinary ground unless the owner is told before accepting the offer and the purchase and sale agreement identifies that fact.

Why the other choices are incorrect:

• Mention it only to the buyer’s lender. That does not satisfy disclosure to the owner or documentation in the agreement.
• Treat all noncash items as cash without disclosure. The statute distinguishes other-than-cash deposits.
• Keep the arrangement confidential until closing. The owner must be informed before acceptance.

Sources:

• RCW 18.85.361 — (9)

Correct answer: The rule recognizes an exception for that check until the specified event.

WAC 308-124E-105(6)(b) recognizes checks that an earnest money agreement says to hold for a specified time or event. It is not a general permission to postpone depositing cash or use client funds.

Why the other choices are incorrect:

• An oral request always allows indefinite holding of any funds. The exception concerns checks and the terms of the earnest money agreement.
• Cash may always be held on the same basis. The rule expressly requires cash deposit by the next banking day.
• The check becomes the broker’s personal property. Holding under the agreement does not transfer ownership to the broker.

Sources:

• WAC 308-124E-105 — (6)

Correct answer: Licensure with one firm at a time.

RCW 18.85.101 states that a broker is licensed to one firm at a time and is supervised by a designated or managing broker. Separate provisions govern registered designated brokers.

Why the other choices are incorrect:

• Two firms whenever both agree. Agreement does not override the one-firm limitation.
• Two firms if one handles only rentals. The provision does not create that exception for an ordinary broker.
• Unlimited firms if each uses a different advertisement. Advertising choices do not change the statutory restriction.

Sources:

• RCW 18.85.101 — (3)

Correct answer: Notify the real estate program within 20 days after service or knowledge, even though an appeal is pending.

The rule requires notice within 20 days after service or knowledge of a civil order, verdict or judgment involving real estate or business-related activity. An appeal does not postpone this duty.

Why the other choices are incorrect:

• Wait until all appeals end. The rule explicitly requires notice regardless of a pending appeal.
• Notify only the local MLS. Notice to an MLS does not replace notice to the real estate program.
• Notify only if the judgment is paid. Payment is not the notification trigger.

Sources:

• WAC 308-124C-115 — opening paragraph, (2)

Correct answer: Cooperate and produce the records requested under lawful authority.

Failure to produce records for an authorized inspection is a disciplinary ground. The rules also require cooperation with Department investigations, audits and licensing matters.

Why the other choices are incorrect:

• Wait until the client obtains a money judgment. That is not a prerequisite to the lawful request.
• Refuse because the firm is privately owned. Private ownership does not remove regulatory inspection authority.
• Provide records only if the investigator pays the broker’s commission. A commission payment is not a condition of cooperation.

Sources:

• RCW 18.85.361 — (6)
• WAC 308-124C-140 — (2)