License Law
This is the minimum age to apply for a managing broker’s license in Washington.
A. 18
B. 19
C. 20
D. 21
Answer:
D: 21
This is created when a broker acts without written agreement but behaves as an agent.
A. Implied agency
B. Dual agency
C. Express agency
D. Transaction brokerage
Answer:
A. Implied agency
A listing agreement is this type of contract.
A. Unilateral
B. Implied
C. Executory
D. Employment
Answer:
D. Employment
This must be done before entering a tenant’s unit, except in emergencies.
A. Background check
B. 24-hour written notice
C. Verbal warning
D. Eviction filing
Answer:
B. 24-hour written notice
This law added disability and familial status as protected classes.
A. Civil Rights Act of 1866
B. Fair Housing Act Amendments of 1988
C. ADA
D. ECOA
Answer:
B. Fair Housing Act Amendments of 1988
This formula determines property value based on income.
A. NOI ÷ Cap Rate
B. NOI × Cap Rate
C. GRM ÷ NOI
D. Price × Cap Rate
Answer:
A. NOI ÷ Cap Rate
This must be disclosed in homes built before 1978.
A. Asbestos
B. Radon
C. Lead-based paint
D. Mold
Answer:
C. Lead-based paint
This type of licensee supervises other brokers.
A. Broker
B. Designated broker
C. Associate broker
D. Commercial broker
Answer:
B. Designated broker
This fiduciary duty requires brokers not to share client information without consent.
A. Loyalty
B. Disclosure
C. Confidentiality
D. Obedience
Answer:
C. Confidentiality
This contract is enforceable by law.
A. Void
B. Voidable
C. Enforceable
D. Valid
Answer:
D. Valid
This item is NOT a common operating expense in property management.
A. Property taxes
B. Mortgage principal
C. Insurance
D. Maintenance
Answer:
B. Mortgage principal
This term refers to lenders refusing loans based on location demographics.
A. Steering
B. Channeling
C. Redlining
D. Blockbusting
Answer:
C. Redlining
A buyer puts 20% down on a $400,000 home. What’s the loan amount?
A. $80,000
B. $320,000
C. $300,000
D. $280,000
Answer:
B. $320,000
This Washington law protects wetlands and shorelines.
A. SEPA
B. Shoreline Management Act
C. RCW 18.85
D. Zoning Ordinance
Answer:
B. Shoreline Management Act
A license is considered inactive when this occurs.
A. Broker changes firms
B. Broker fails to complete continuing education
C. Broker requests retirement
D. Broker gets promoted
Answer:
B. Broker fails to complete continuing education
A broker owes this to the client when handling funds.
A. Loyalty
B. Obedience
C. Accounting
D. Disclosure
Answer:
C. Accounting
This clause allows a buyer to void the contract under specific conditions.
A. Acceleration clause
B. Liquidated damages
C. Contingency clause
D. Indemnification clause
Answer:
C. Contingency clause
This term describes income minus operating expenses.
A. Gross income
B. Net operating income
C. Cap rate
D. Return on investment
Answer:
B. Net operating income
This is NOT a protected class under federal Fair Housing law.
A. Religion
B. Sexual orientation
C. Race
D. National origin
Answer:
B. Sexual orientation (Note: Protected under Washington State law, not federal)
This government-sponsored enterprise purchases conventional loans.
A. FHA
B. VA
C. HUD
D. Fannie Mae
Answer:
D. Fannie Mae
This disclosure is mandatory for most residential sales.
A. Seller Financing Addendum
B. Lead-Based Paint Disclosure
C. Form 17 - Seller Disclosure
D. Agency Disclosure
Answer:
C. Form 17 - Seller Disclosure
The Washington State Real Estate Commission includes this number of members.
A. 3
B. 5
C. 6
D. 7
Answer:
D. 7
This document discloses agency relationships in Washington.
A. Form 22J
B. Purchase and Sale Agreement
C. Agency Law Pamphlet
D. Property Disclosure Statement
Answer:
C. Agency Law Pamphlet
Earnest money is typically held by this party.
A. Buyer
B. Seller
C. Escrow or broker’s trust account
D. Lender
Answer:
C. Escrow or broker’s trust account
A lease that automatically renews month-to-month is known as this.
A. Periodic tenancy
B. Estate at sufferance
C. Estate for years
D. Tenancy in common
Answer:
A. Periodic tenancy
This type of advertising violates fair housing laws.
A. “Near a park”
B. “No children allowed”
C. “First-floor unit”
D. “Pet-friendly”
Answer:
B. “No children allowed”
This document provides estimated closing costs to buyers.
A. HUD-1
B. Truth in Lending
C. Loan Estimate
D. Title Report
Answer:
C. Loan Estimate
This system manages disputes in real estate transactions.
A. Small claims court
B. Mediation and arbitration
C. Grievance review
D. Civil hearing
Answer:
B. Mediation and arbitration
This must happen within 10 days of changing brokerage affiliation.
A. Notify seller
B. Inform MLS
C. Notify Department of Licensing
D. Reapply for license
Answer:
C. Notify Department of Licensing
This must occur for dual agency to be lawful.
A. Buyer pays commission
B. Consent is given in writing
C. MLS access is granted
D. Inspection is waived
Answer:
B. Consent is given in writing
This must occur for a contract to be legally binding.
A. Handshake
B. A notary’s presence
C. Mutual consent
D. Commission payment
Answer:
C. Mutual consent
This agreement outlines duties between owner and manager.
A. Lease
B. Property management agreement
C. Operating agreement
D. Purchase and Sale
Answer:
B. Property management agreement
This is the core ethical responsibility of real estate professionals.
A. Close sales
B. Maximize profit
C. Protect the public
D. Follow broker’s orders
Answer:
C. Protect the public
This ratio compares housing costs to income.
A. Debt-to-income ratio
B. Loan-to-value ratio
C. Gross rent multiplier
D. Front-end ratio
Answer:
D. Front-end ratio
This law requires environmental review of developments.
A. SEPA
B. EPA
C. CERCLA
D. RCW 64.06
Answer:
A. SEPA