Free Washington Agency Practice Test — LicenseIQ

Question 1

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 2

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 3

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 4

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 5

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 6

Limited dual agency in Washington requires:

Accepted Answer

RCW 18.86.060 permits limited dual agency only with the written consent of both parties, given in the services agreements.

Question 7

After an agency relationship terminates, which duties continue unless otherwise agreed in writing?

Accepted Answer

RCW 18.86.070 provides that after termination the broker owes no further duties except to account for money and property and not to disclose confidential information.

Question 8

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 9

Under RCW 18.86.020, a broker who performs brokerage services for a buyer is presumed to be:

Accepted Answer

RCW 18.86.020 makes the broker the buyer's agent by default unless the firm appoints the broker to represent the seller, both parties, or the broker is the seller.

Question 10

Which action is prohibited for a limited dual agent?

Accepted Answer

Under RCW 18.86.060 and the pamphlet, a limited dual agent may not advocate terms favorable to one principal to the detriment of the other. Presenting offers, advising experts, and confidentiality are required or permitted.

Question 11

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 12

A broker owns part of a title agency. Under RCW 18.85.053, the broker may NOT:

Accepted Answer

RCW 18.85.053 prohibits kickbacks for title insurance referrals and bars a licensee with a financial interest in a title agent from requiring a consumer to use that agent as a condition of service. Ownership itself is not prohibited.

Question 13

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 14

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 15

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 16

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 17

A seller's agent misrepresents a home's square footage without the seller's knowledge. The seller did not authorize or participate in it. Under RCW 18.86.090, the seller is generally:

Accepted Answer

RCW 18.86.090 bars vicarious liability for an agent's acts unless the principal participated in or authorized them, with a narrow exception when the principal benefited and the claimant likely cannot enforce a judgment against the agent.

Question 18

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 19

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 20

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

Question 21

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 22

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 23

A seller's agent tells a buyer's agent that "my seller will take $20,000 less than list." The seller did not authorize this. The seller's agent violated the duty to:

Accepted Answer

RCW 18.86.040 requires a seller's agent not to disclose confidential information from or about the seller. A seller's bottom line is classic confidential information.

Question 24

Unless otherwise agreed in writing, what does RCW 18.86.100 say about knowledge held by an agent?

Accepted Answer

RCW 18.86.100 provides that unless otherwise agreed in writing, a principal does not have knowledge or notice of facts known only by the agent, reversing the common-law imputation rule.

Question 25

In Washington, the broker's written disclosure of whom the broker represents in a transaction appears in a paragraph titled:

Accepted Answer

RCW 18.86.030(1)(g) requires the written disclosure in a paragraph titled "Agency Disclosure," given before the party signs an offer or as soon as practical.

Washington real estate agency practice test

1. A property manager owes fiduciary duties primarily to the:

2. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

3. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

4. The best way to create an agency relationship is a(n):

5. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

6. Limited dual agency in Washington requires:

7. After an agency relationship terminates, which duties continue unless otherwise agreed in writing?

8. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

9. Under RCW 18.86.020, a broker who performs brokerage services for a buyer is presumed to be:

10. Which action is prohibited for a limited dual agent?

11. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

12. A broker owns part of a title agency. Under RCW 18.85.053, the broker may NOT:

13. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

14. Which of the following is a fiduciary duty an agent owes the principal?

15. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

16. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

17. A seller's agent misrepresents a home's square footage without the seller's knowledge. The seller did not authorize or participate in it. Under RCW 18.86.090, the seller is generally:

18. An agency relationship can be terminated by all of the following EXCEPT:

19. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

20. An agent authorized to perform a single specific act for a principal is a:

21. A material defect that a seller/agent must disclose is one that:

22. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

23. A seller's agent tells a buyer's agent that "my seller will take $20,000 less than list." The seller did not authorize this. The seller's agent violated the duty to:

24. Unless otherwise agreed in writing, what does RCW 18.86.100 say about knowledge held by an agent?

25. In Washington, the broker's written disclosure of whom the broker represents in a transaction appears in a paragraph titled:

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