Free Washington Math Practice Test — LicenseIQ

Question 1

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 2

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 3

A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?

Accepted Answer

Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.

Question 4

A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Accepted Answer

Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

Question 5

A new highway interchange built next to a residential subdivision lowers home values. This is:

Accepted Answer

Loss in value caused by factors outside the property boundaries is external obsolescence.

Question 6

A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

Accepted Answer

LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)

Question 7

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 8

A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

Accepted Answer

Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)

Question 9

How often does the Washington Real Estate Commission meet, at minimum, under statute?

Accepted Answer

RCW 18.85.025 provides that the commission meets four times a year or whenever the director calls a meeting.

Question 10

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 11

A rectangular lot is 100 ft by 150 ft. How many square feet is it?

Accepted Answer

Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)

Question 12

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 13

An 8-unit building rents for $1,100 per unit per month with 5% vacancy. Annual operating expenses are $28,320 (excluding debt service). At an 8% capitalization rate, what is the value?

Accepted Answer

PGI = 8 x $1,100 x 12 = $105,600; less 5% vacancy = $100,320; NOI = $100,320 - $28,320 = $72,000; value = $72,000 / 0.08 = $900,000.

Question 14

An investor buys a rental house for $350,000; the land is valued at $75,000. Using straight-line depreciation over 27.5 years, the annual depreciation deduction is:

Accepted Answer

Only the building depreciates: $350,000 - $75,000 = $275,000; $275,000 / 27.5 = $10,000. Using the full price gives $12,727 (wrong).

Question 15

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 16

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 17

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 18

An unlicensed person introduces a buyer to a seller who orally promises a 2% fee. After closing, the seller refuses to pay. Can the person sue for the fee?

Accepted Answer

RCW 18.85.331 bars a suit for compensation unless the claimant proves a valid license was held before offering to perform the service or securing the promise of compensation.

Question 19

Who serves as chair of the Washington Real Estate Commission?

Accepted Answer

RCW 18.85.021 makes the director of the Department of Licensing the chair of the commission. The six other members are appointed by the governor, but the governor does not chair it, and the members do not elect a chair.

Question 20

A Washington Real Estate Commission member resigns three years into a six-year term. The governor's appointee to fill the vacancy will serve:

Accepted Answer

Under RCW 18.85.021 the governor fills a vacancy for the unexpired term. The replacement does not receive a fresh six-year term.

Question 21

According to DOL guidance, a broker may offer a buyer a rebate of part of the commission if:

Accepted Answer

DOL's advertising guidelines state rebates are lawful when the firm approves the reduction, and that buyers using financing may need lender approval. No dollar cap or seller consent applies.

Question 22

How many members, in addition to the director, sit on the Washington Real Estate Commission?

Accepted Answer

The commission consists of the director plus six members appointed by the governor (RCW 18.85.021). Seven is a tempting answer because it is the total including the director, but the question asks for members in addition to the director.

Question 23

Which payment of commission is permitted by RCW 18.85.301?

Accepted Answer

RCW 18.85.301(1) bars payment to persons performing brokerage services who are unlicensed in any U.S. or foreign jurisdiction, so a licensed Idaho firm may be paid. Paying another firm's broker directly, paying an unlicensed person who shows homes, or paying from a personal account each violates the section.

Question 24

A broker wants to share part of her commission with a broker at another firm who helped her client. How must the payment be made?

Accepted Answer

RCW 18.85.301(3) prohibits a broker from paying any part of a commission except through the firm's designated broker, and RCW 18.85.301(2) prohibits a firm from paying a broker not licensed to that firm. Payment goes firm to firm.

Question 25

To be appointed to the Real Estate Commission, a person must have at least:

Accepted Answer

RCW 18.85.021 requires five years of Washington brokerage experience or three years of real estate investigative work. There is no designated broker, law degree, or out-of-state alternative in the statute.

Washington real estate math practice test

1. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

2. Under an open listing, the seller owes a commission to:

3. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?

4. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

5. A new highway interchange built next to a residential subdivision lowers home values. This is:

6. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

7. A broker received a 4.2% commission totaling $12,600. What was the sale price?

8. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

9. How often does the Washington Real Estate Commission meet, at minimum, under statute?

10. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

11. A rectangular lot is 100 ft by 150 ft. How many square feet is it?

12. When competing brokerages agree to charge the same commission rate, they commit:

13. An 8-unit building rents for $1,100 per unit per month with 5% vacancy. Annual operating expenses are $28,320 (excluding debt service). At an 8% capitalization rate, what is the value?

14. An investor buys a rental house for $350,000; the land is valued at $75,000. Using straight-line depreciation over 27.5 years, the annual depreciation deduction is:

15. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

16. 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:

17. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

18. An unlicensed person introduces a buyer to a seller who orally promises a 2% fee. After closing, the seller refuses to pay. Can the person sue for the fee?

19. Who serves as chair of the Washington Real Estate Commission?

20. A Washington Real Estate Commission member resigns three years into a six-year term. The governor's appointee to fill the vacancy will serve:

21. According to DOL guidance, a broker may offer a buyer a rebate of part of the commission if:

22. How many members, in addition to the director, sit on the Washington Real Estate Commission?

23. Which payment of commission is permitted by RCW 18.85.301?

24. A broker wants to share part of her commission with a broker at another firm who helped her client. How must the payment be made?

25. To be appointed to the Real Estate Commission, a person must have at least:

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