Free Washington Real Estate Practice Exam

Q1.Under the Truth-in-Lending Act (TILA), which disclosure must lenders provide to borrowers within three business days of receiving a loan application?

• A.Closing Disclosure
• B.Good Faith Estimate
• C.Loan Estimate
• D.HUD-1 Settlement Statement

Q2.A lender charges a borrower two discount points on a $300,000 mortgage loan. How much will the borrower pay in discount points at closing?

• A.$6,000
• B.$3,000
• C.$600
• D.$60,000

Q3.A listing broker in Washington receives the agency law pamphlet acknowledgment form signed by the seller. The seller later claims the broker never explained the pamphlet's contents. Under RCW 18.86, which statement BEST describes the legal effect of the signed acknowledgment?

• A.The acknowledgment proves the broker fully complied with all duties under RCW 18.86
• B.The acknowledgment confirms only that the pamphlet was provided, not that agency duties were fully performed
• C.The acknowledgment creates an irrebuttable presumption that the seller consented to dual agency
• D.The acknowledgment relieves the broker of all liability for agency-related claims

Q4.Under the post-NAR-settlement buyer-broker agreement, if a buyer's agent earns more from the seller than the amount specified in the agreement, the agent must:

• A.Keep the difference as a bonus
• B.Donate the excess to a charitable organization
• C.Notify ADRE of the overage within 30 days
• D.Refund the excess to the buyer or credit it toward costs

Q5.A property sold for $350,000 and generates annual net operating income of $28,000. What is the capitalization rate?

• A.6.5%
• B.8.0%
• C.7.2%
• D.8.5%

Q6.A recorded easement that allows the electric company to run power lines across a property is an example of which type of encumbrance?

• A.An encumbrance that affects possession but not title
• B.A monetary lien against the property
• C.A covenant that restricts property use
• D.An encumbrance that affects title but not possession

Q7.An applicant for a Washington real estate broker (salesperson) license has completed the required pre-license education. Under WAC 308-124B, which of the following correctly describes the sequence of steps the applicant must follow before being issued an active license?

• A.Submit the license application to the DOL, then complete the PSI examination, then affiliate with a firm
• B.Pass the PSI examination, submit a license application to the DOL, and affiliate with a designated broker
• C.Affiliate with a designated broker first, then take the PSI examination, then apply to the DOL
• D.Complete a background check with the Washington State Patrol, pass the PSI examination, then affiliate with a firm without filing an application

Q8.Under the Federal Fair Housing Act, which of the following actions by a landlord would constitute illegal discrimination?

• A.Requiring a higher security deposit from tenants with pets
• B.Refusing to rent to someone who cannot meet the income requirements
• C.Refusing to rent to a family with children because the property has a swimming pool
• D.Charging different application fees based on credit score

Q9.A developer applies for a conditional use permit to build a mosque in a residential zone. The zoning board denies the permit, citing traffic and parking concerns. The developer sues under the Religious Land Use and Institutionalized Persons Act (RLUIPA), 42 U.S.C. § 2000cc. For the developer to prevail on a 'substantial burden' claim, what must the developer demonstrate as a threshold matter?

• A.That the land use regulation imposes a substantial burden on a religious exercise, and the program or activity is subject to a government funding nexus or affects commerce or the individualized assessment exception applies
• B.That the municipality acted with discriminatory intent specifically targeting the religious organization
• C.That no secular organization was ever denied a conditional use permit in the same zone for traffic-related reasons
• D.That the property's fair market value was reduced by more than 50% as a direct result of the permit denial

Q10.A Washington real estate salesperson places an advertisement on social media promoting a listing. According to Washington advertising rules, what must the advertisement include?

• A.The salesperson's personal license number and home address
• B.The name of the firm with which the salesperson is affiliated
• C.The salesperson's individual cell phone number
• D.The salesperson's managing broker's name and signature

Q11.Under RCW 18.85 and WAC 308-124, a licensed real estate broker in Washington wishes to upgrade to a managing broker license. Which combination of requirements must the broker satisfy BEFORE applying for the managing broker license?

• A.Pass the managing broker examination, complete the required managing broker pre-license education, and have been actively licensed as a broker for at least two years within the immediately preceding three years
• B.Pass the managing broker examination, complete the required managing broker pre-license education, and have been actively licensed as a broker for at least one year with no disciplinary history
• C.Complete 90 hours of managing broker pre-license education and submit a supervising broker's letter of recommendation, with no examination required
• D.Pass the managing broker examination after five years of active licensure as a broker, with no additional pre-license education required

Q12.When multiple listing services (MLS) are involved in a transaction, which document typically governs the commission split between cooperating brokers?

• A.The purchase agreement between buyer and seller
• B.The MLS rules and the listing broker's offer of cooperation
• C.The listing agreement between seller and listing broker
• D.The buyer representation agreement

Q13.A Washington real estate broker wishes to place her license on inactive status. Which of the following statements accurately describes the effect of inactive status under Washington law?

• A.An inactive broker may continue to perform brokerage services as long as she discloses her inactive status to all clients in writing.
• B.An inactive broker may not perform any real estate brokerage activities but must still renew the license and meet continuing education requirements to reactivate.
• C.An inactive broker is not required to renew the license or complete continuing education until she decides to return to active practice.
• D.Inactive status automatically converts to an expired license after 90 days if the broker does not affiliate with a managing broker.

Q14.Under RESPA, a title insurance company provides a real estate broker with free office space in exchange for the broker referring all of its clients to that title company. This arrangement is BEST characterized as:

• A.A permissible marketing services agreement as long as it is disclosed to consumers.
• B.A violation of RESPA's anti-kickback provisions because the free office space constitutes a thing of value given in exchange for the referral of settlement service business.
• C.Permissible under RESPA's affiliated business arrangement (AfBA) exception if both companies are under common ownership.
• D.Permissible as long as the broker does not receive direct cash payments from the title company.

Q15.A member of the public obtains a civil court judgment against a Washington real estate licensee for damages arising from the licensee's fraudulent conduct in a real estate transaction. The licensee is unable to pay. Under RCW 18.85, which of the following correctly describes the process for seeking reimbursement from the Real Estate Recovery Account?

• A.The claimant may file directly with the Department of Licensing for recovery without first obtaining a court judgment
• B.The claimant must first obtain a final, unsatisfied civil judgment against the licensee, exhaust collection efforts, and then apply to the court for an order directing payment from the Recovery Account
• C.Recovery from the account is available only to other licensees harmed by the dishonest licensee, not to members of the general public
• D.The claimant may recover from the account only if the licensee's license has already been revoked by the Director prior to filing the claim