Washington Real Estate Law Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A Instant Download Pdf
1. Which of the following is required to obtain a real estate license in
Washington?
A. Must be 18 years old
B. Must have a college degree
C. Must complete required pre-licensing education
D. Must own real estate property
Rationale: In Washington, a licensee must complete the state-mandated pre-
licensing education to be eligible for licensure.
2. The Real Estate Commission in Washington is officially called:
A. Washington Department of Housing
B. Washington State Department of Licensing – Real Estate Program
C. Washington Real Estate Board
D. Washington Realty Authority
Rationale: The Washington State Department of Licensing administers real
estate licensing and regulation.
3. Which of the following is an example of a fiduciary duty owed by a real
estate agent to a client?
A. Marketing other agents’ listings
, B. Loyalty and confidentiality
C. Setting mortgage rates
D. Appraising property for taxes
Rationale: Fiduciary duties include loyalty, confidentiality, disclosure, obedience,
and accounting.
4. A broker in Washington may place client funds in:
A. Their personal account
B. A trust account
C. Any joint account
D. A savings account at any bank
Rationale: Client funds must be held in a separate trust or escrow account to
avoid commingling with the broker’s personal funds.
5. What must a licensee do if they have a dual agency situation?
A. Only inform the buyer
B. Only inform the seller
C. Obtain written consent from both parties
D. Nothing if the parties are aware
Rationale: Dual agency is allowed only with full disclosure and written consent
from both buyer and seller.
6. The Washington Real Estate Recovery Account protects:
A. Homeowners’ insurance claims
B. Consumers harmed by licensee misconduct
C. Agents against lawsuits
D. Mortgage lenders
Rationale: The Recovery Account provides compensation to consumers who
suffer financial losses due to a licensee’s misconduct.
7. A “material fact” in real estate is:
A. Something minor about the décor
B. Any personal preference
, C. Information that would affect a buyer’s decision
D. The seller’s favorite color
Rationale: Material facts are facts that could influence a buyer’s decision to
purchase or the price they are willing to pay.
8. How long must real estate records be retained in Washington?
A. 1 year
B. 3 years
C. 5 years
D. 10 years
Rationale: Washington law requires brokers to retain real estate transaction
records for at least three years.
9. An “exclusive right to sell” listing means:
A. Only the owner can sell the property
B. The broker earns a commission regardless of who sells
C. The broker may advertise without owner consent
D. No commission is due if the seller finds a buyer
Rationale: In an exclusive right-to-sell agreement, the listing broker earns a
commission regardless of who finds the buyer.
10.Which of the following is considered unlicensed activity in Washington?
A. Showing properties under a licensed broker
B. Preparing standard contracts for a client under supervision
C. Negotiating real estate contracts for compensation without a license
D. Attending continuing education classes
Rationale: Performing any real estate services for compensation without a
license is illegal.
11.The statute that governs real estate practices in Washington is:
A. Washington Housing Act
B. Washington Real Estate License Act (RCW 18.85)
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A Instant Download Pdf
1. Which of the following is required to obtain a real estate license in
Washington?
A. Must be 18 years old
B. Must have a college degree
C. Must complete required pre-licensing education
D. Must own real estate property
Rationale: In Washington, a licensee must complete the state-mandated pre-
licensing education to be eligible for licensure.
2. The Real Estate Commission in Washington is officially called:
A. Washington Department of Housing
B. Washington State Department of Licensing – Real Estate Program
C. Washington Real Estate Board
D. Washington Realty Authority
Rationale: The Washington State Department of Licensing administers real
estate licensing and regulation.
3. Which of the following is an example of a fiduciary duty owed by a real
estate agent to a client?
A. Marketing other agents’ listings
, B. Loyalty and confidentiality
C. Setting mortgage rates
D. Appraising property for taxes
Rationale: Fiduciary duties include loyalty, confidentiality, disclosure, obedience,
and accounting.
4. A broker in Washington may place client funds in:
A. Their personal account
B. A trust account
C. Any joint account
D. A savings account at any bank
Rationale: Client funds must be held in a separate trust or escrow account to
avoid commingling with the broker’s personal funds.
5. What must a licensee do if they have a dual agency situation?
A. Only inform the buyer
B. Only inform the seller
C. Obtain written consent from both parties
D. Nothing if the parties are aware
Rationale: Dual agency is allowed only with full disclosure and written consent
from both buyer and seller.
6. The Washington Real Estate Recovery Account protects:
A. Homeowners’ insurance claims
B. Consumers harmed by licensee misconduct
C. Agents against lawsuits
D. Mortgage lenders
Rationale: The Recovery Account provides compensation to consumers who
suffer financial losses due to a licensee’s misconduct.
7. A “material fact” in real estate is:
A. Something minor about the décor
B. Any personal preference
, C. Information that would affect a buyer’s decision
D. The seller’s favorite color
Rationale: Material facts are facts that could influence a buyer’s decision to
purchase or the price they are willing to pay.
8. How long must real estate records be retained in Washington?
A. 1 year
B. 3 years
C. 5 years
D. 10 years
Rationale: Washington law requires brokers to retain real estate transaction
records for at least three years.
9. An “exclusive right to sell” listing means:
A. Only the owner can sell the property
B. The broker earns a commission regardless of who sells
C. The broker may advertise without owner consent
D. No commission is due if the seller finds a buyer
Rationale: In an exclusive right-to-sell agreement, the listing broker earns a
commission regardless of who finds the buyer.
10.Which of the following is considered unlicensed activity in Washington?
A. Showing properties under a licensed broker
B. Preparing standard contracts for a client under supervision
C. Negotiating real estate contracts for compensation without a license
D. Attending continuing education classes
Rationale: Performing any real estate services for compensation without a
license is illegal.
11.The statute that governs real estate practices in Washington is:
A. Washington Housing Act
B. Washington Real Estate License Act (RCW 18.85)
