Free Washington State Law Practice Test — LicenseIQ

Question 1

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 2

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 3

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 4

A broker's license has been inactive for four years. To activate it, she must complete:

Accepted Answer

RCW 18.85.265 requires a licensee who has been inactive more than three years to complete a 30-clock-hour real estate course within one year before applying to activate.

Question 5

Which person does NOT need a Washington real estate license?

Accepted Answer

RCW 18.85.151 exempts owners dealing with their own property. The other three perform brokerage services for others for compensation, or hold themselves out as doing so, which requires a license.

Question 6

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 7

A candidate passes the national portion of the PSI broker exam but fails the state portion. What must the candidate do?

Accepted Answer

The PSI handbook and DOL require both portions to be passed within six months of each other. If not, the candidate retakes the entire exam.

Question 8

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 9

A buyer services agreement does not state a term. Under RCW 18.86.020, it has a default term of:

Accepted Answer

RCW 18.86.020 provides a default term of 60 days for buyer services agreements, which may be extended by the parties.

Question 10

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 11

A bank notifies a firm that charges on its pooled trust account exceeded the interest earned this month. The designated broker must:

Accepted Answer

WAC 308-124E-110 requires the designated broker to cover excess charges from a non-trust account within one banking day after receipt of notice. Client funds may never be used to pay the firm's bank charges.

Question 12

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 13

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 14

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 15

To qualify for a managing broker license, an applicant generally must have:

Accepted Answer

RCW 18.85.111 requires three years of full-time licensed experience within the previous five years, or qualifying alternative experience the director accepts by rule.

Question 16

A licensee's advertising must generally:

Accepted Answer

Ads must identify the licensed broker/brokerage; salespersons cannot advertise under only their own name.

Question 17

After passing the broker exam, an applicant must become licensed within:

Accepted Answer

WAC 308-124A-710 provides that a passed exam is valid for one year; an applicant who does not become licensed within that time must retake and pass the exam.

Question 18

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 19

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 20

On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

Accepted Answer

Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.

Question 21

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 22

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 23

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 24

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 25

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Washington real estate state law practice test

1. A licensee may manage property for an owner for a fee only if there is:

2. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

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

4. A broker's license has been inactive for four years. To activate it, she must complete:

5. Which person does NOT need a Washington real estate license?

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

7. A candidate passes the national portion of the PSI broker exam but fails the state portion. What must the candidate do?

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

9. A buyer services agreement does not state a term. Under RCW 18.86.020, it has a default term of:

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

11. A bank notifies a firm that charges on its pooled trust account exceeded the interest earned this month. The designated broker must:

12. Under the statute of frauds, a real estate sales contract must be:

13. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

14. 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?

15. To qualify for a managing broker license, an applicant generally must have:

16. A licensee's advertising must generally:

17. After passing the broker exam, an applicant must become licensed within:

18. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

19. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

20. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

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

22. A real estate licensee who is not an attorney may:

23. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

24. Which is the most common and desirable way a real estate sales contract terminates?

25. Which action may a life tenant take WITHOUT the remainderman's consent?

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