Free Washington Real Estate Practice Exam

Q1.A designated broker in Washington is considering opening a branch office in another city. Under Washington law, which of the following statements is TRUE regarding branch offices?

• A.A branch office may operate under any name chosen by the branch manager without approval from the Department of Licensing
• B.Each branch office must have a licensed managing broker who is responsible for supervising the licensees working at that location
• C.A branch office license is not required as long as the main firm license is current and active
• D.The designated broker of the main office automatically serves as the managing broker of all branch offices and no additional appointment is needed

Q2.In an all-cash transaction, what is the most important verification the seller should require from the buyer?

• A.Confirmation that no financing is involved, in a signed addendum
• B.Verifiable proof of funds — such as a bank or investment account statement — by a specified deadline
• C.An independent appraisal, since cash buyers must still meet value requirements
• D.Only the earnest money amount — no other verification is needed in cash transactions

Q3.A landlord tells a rental applicant: 'I'll waive your late fee if you come over tonight.' This is an example of which type of housing harassment?

• A.Hostile environment harassment
• B.Quid pro quo harassment
• C.Third-party harassment
• D.Constructive eviction

Q4.Under Washington law, a real estate firm's trust account must meet which of the following requirements?

• A.It must be an interest-bearing account, and all interest earned must be paid directly to the Washington State Treasurer
• B.It must be maintained at a federally insured financial institution located in Washington State, and kept separate from the firm's operating funds
• C.It may be combined with the firm's general operating account as long as client funds are tracked in a separate ledger
• D.It must be bonded by a surety company approved by the Department of Licensing before any client funds are deposited

Q5.In Washington, a licensee acting as a limited dual agent under RCW 18.86 may NOT do which of the following without the affected party's specific consent?

• A.Present offers from the buyer to the seller
• B.Disclose to the buyer that the seller will accept less than the listed price
• C.Provide the buyer with publicly available comparable sales data
• D.Explain contract terms to both parties in a neutral manner

Q6.A Washington real estate broker's license is on active status. Under RCW 18.85 and WAC 308-124, how many clock hours of continuing education (CE) must the broker complete during each two-year renewal cycle?

• A.15 clock hours, including a mandatory 3-hour core curriculum course
• B.30 clock hours, including a mandatory core curriculum course approved by the DOL
• C.20 clock hours of elective courses with no mandatory core requirement
• D.45 clock hours, including ethics, fair housing, and agency law components

Q7.A Washington real estate salesperson places an advertisement on social media for a listed property. Under Washington law, what must the advertisement include?

• A.Only the salesperson's name and personal phone number
• B.The salesperson's license number and the name of the supervising managing broker
• C.The name of the firm with which the salesperson is affiliated
• D.The salesperson's home address and the firm's trust account number

Q8.Under RCW 18.85, which state official holds primary authority to adopt rules governing the conduct of licensed real estate brokers and managing brokers in Washington?

• A.The Governor of Washington State
• B.The Director of the Department of Licensing
• C.The Chair of the Washington Real Estate Commission
• D.The Attorney General of Washington State

Q9.In states where attorneys are required to conduct real estate closings, what is the primary reason for this requirement?

• A.To ensure compliance with federal lending regulations
• B.To provide legal protection through the unauthorized practice of law statutes
• C.To guarantee title insurance coverage
• D.To meet federal settlement requirements under RESPA

Q10.Under federal fair housing law, which enforcement action can a state real estate licensing board take against a licensee who violates the Fair Housing Act?

• A.Impose criminal penalties including imprisonment
• B.Suspend or revoke the licensee's real estate license
• C.Order monetary damages to be paid to the complainant
• D.Issue federal civil rights injunctions

Q11.Which of the following is an example of proper harassment documentation?

• A.'He was clearly harassing her — it was obvious to everyone present.'
• B.'There seemed to be an inappropriate interaction at the open house.'
• C.'I believe a fair housing violation may have occurred based on what I observed.'
• D.'He told her she had a great smile and asked if she was single while standing close enough that she stepped back.'

Q12.A broker operating a real estate firm establishes a designated agency policy. Two salespersons affiliated with the same firm are designated—one to represent the seller and one to represent the buyer in the same transaction. The broker is the principal broker who retains supervisory oversight of both salespersons. Which of the following MOST accurately describes the broker's agency status in this designated agency arrangement?

• A.The broker automatically becomes a dual agent with full fiduciary duties to both the seller and the buyer.
• B.The broker functions as a dual agent in a supervisory capacity while the designated salespersons each act as single agents for their respective clients, provided applicable disclosure and consent requirements are satisfied.
• C.The broker has no agency relationship with either party and bears no fiduciary responsibility once designation is made.
• D.The broker must represent only the seller as the listing client because the firm's original listing agreement takes precedence over any buyer designation.

Q13.Under the Washington Real Estate License Law (RCW 18.85), which statement BEST describes the purpose of the Real Estate Education Account?

• A.It provides financial compensation to consumers harmed by the misconduct of licensed real estate brokers
• B.It funds real estate education programs and may be used to support the regulatory activities of the Department of Licensing
• C.It is used exclusively to reimburse the state for costs incurred during disciplinary investigations
• D.It provides grants to Washington community colleges that offer real estate courses

Q14.Radon is classified by the EPA as a:

• A.Class A carcinogen and the second-leading cause of lung cancer in the U.S.
• B.Class B carcinogen requiring mandatory remediation above 2 pCi/L
• C.Nuisance pollutant with no established health threshold
• D.Regulated hazardous waste requiring state agency notification

Q15.Under WAC 308-124C, a Washington designated broker is required to retain transaction records, including all documents related to a real estate sale. What is the minimum record retention period required by Washington administrative rules?

• A.One year from the date of closing or termination of the transaction.
• B.Three years from the date of closing or termination of the transaction.
• C.Five years from the date of closing or termination of the transaction.
• D.Seven years from the date of closing or termination of the transaction.