Rockwell WA Real Estate Practice 2026 EXAM
COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS
1. What is the primary legal role of a real estate broker?
A. To sell property.
B. To facilitate transactions for a fee.
C. To determine property value.
D. To provide legal advice.
Answer: B. To facilitate transactions for a fee.
2. In Washington State, a broker-client relationship is established by:
A. A verbal agreement.
B. The mutual consent of the parties.
C. A written agency agreement.
D. Accepting a listing.
Answer: C. A written agency agreement. (Required by Washington law - WAC 308-100C-
020)
3. A broker who represents the seller in a transaction is known as the:
A. Seller's agent.
B. Buyer's agent.
C. Disclosed dual agent.
D. Transaction broker.
Answer: A. Seller's agent.
4. The fiduciary duty that requires an agent to be honest and not conceal important facts is:
A. Care.
B. Obedience.
C. Disclosure.
D. Loyalty.
Answer: C. Disclosure.
5. Which duty requires an agent to protect the client's confidential information?
A. Accountability
B. Loyalty
C. Obedience
,D. Confidentiality
Answer: B. Loyalty
6. A buyer tells their agent they are willing to pay up to $300,000 but would like to offer
$280,000. The agent must:
A. Disclose the $300,000 figure to the listing agent to get a better deal.
B. Keep the $300,000 figure confidential and follow the buyer's instruction to offer $280,000.
C. Advise the seller that the buyer has more money.
D. Refuse to submit the low offer.
Answer: B. Keep the $300,000 figure confidential and follow the buyer's instruction to offer
$280,000.
7. The Washington State Agency Law pamphlet must be presented to:
A. Only buyers.
B. Only sellers.
C. All parties to a real estate transaction.
D. Only the client.
Answer: C. All parties to a real estate transaction.
8. Designated agency occurs when:
A. One broker represents both the buyer and the seller.
B. A salesperson represents their friend without a contract.
C. A broker assigns one licensee in the firm to represent the seller and another to represent the
buyer.
D. An agent represents no one.
Answer: C. A broker assigns one licensee in the firm to represent the seller and another to
represent the buyer.
9. A broker who acts as a Disclosed Dual Agent must have:
A. Written consent from both parties.
B. Only verbal consent.
C. Permission from the managing broker only.
D. No consent is needed.
Answer: A. Written consent from both parties.
10. The term "Material Fact" is best defined as:
A. Any information about the property's construction.
B. Information that could affect a party's decision-making in the transaction.
C. Facts that are only positive about the property.
,D. Information that is publicly available.
Answer: B. Information that could affect a party's decision-making in the transaction.
11. Which of the following is NOT a fiduciary duty?
A. Loyalty
B. Disclosure
C. Reasonable Skill and Care
D. Obedience to lawful instructions
**Answer: B. Disclosure (Disclosure is a statutory duty, but the core fiduciary duties are
Care, Obedience, Accounting, Loyalty, and Disclosure is often listed alongside them in
practice.) Note: This is a tricky one. In WA, the "big six" duties owed to clients are Care, Loyalty,
Confidentiality, Disclosure, Obedience, and Accounting. Disclosure is absolutely required, but
some exams separate fiduciary from statutory duties.
12. An agent who fails to act with the required level of competence may be liable for breach
of:
A. Obedience.
B. Loyalty.
C. Care.
D. Accounting.
Answer: C. Care.
13. When can an agent disclose confidential information about their client?
A. When the managing broker asks.
B. When required by law.
C. To another agent in the office.
D. When it would help close the deal.
Answer: B. When required by law.
14. The process of ending an agency relationship is called:
A. Dissolution.
B. Termination.
C. Rescission.
D. Revocation.
Answer: B. Termination.
15. A buyer agency agreement should be signed:
A. After an offer is accepted.
B. Before the agent shows the buyer any properties.
C. When the buyer is ready to make an offer.
, D. It is not required in Washington.
Answer: B. Before the agent shows the buyer any properties. (This is the best practice to
establish the relationship and duties from the start.)
16. A seller's agent must:
A. Disclose all known material facts about the property.
B. Disclose the seller's minimum acceptable price to a buyer.
C. Advise the buyer on how to negotiate a lower price.
D. Keep the seller's motivation for selling confidential from the buyer.
Answer: A. Disclose all known material facts about the property.
17. Vicarious liability refers to:
A. An agent's liability for their own actions.
B. A client's liability for their agent's actions.
C. The liability of a managing broker for the actions of their affiliated licensees.
D. Liability for property defects.
Answer: C. The liability of a managing broker for the actions of their affiliated licensees.
18. The "Procuring Cause" of a sale is generally the:
A. Lender who provided the financing.
B. Agent who first showed the property to the buyer.
C. Agent who wrote the purchase and sale agreement.
D. The party whose efforts ultimately result in the sale.
Answer: D. The party whose efforts ultimately result in the sale.
19. Imputed knowledge in a real estate firm means:
A. Knowledge is only known by the managing broker.
B. Knowledge held by one agent is considered known by the broker and the firm.
C. Knowledge that is assumed but not verified.
D. Knowledge that is confidential to the client.
Answer: B. Knowledge held by one agent is considered known by the broker and the firm.
20. If a broker fails to provide the Agency Law Pamphlet to a consumer at first substantive
contact, what is a potential consequence?
A. The broker loses their license automatically.
B. The broker cannot receive a commission.
C. The buyer can back out of any contract.
D. The broker may be subject to disciplinary action by the DOL.
Answer: D. The broker may be subject to disciplinary action by the DOL.
COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS
1. What is the primary legal role of a real estate broker?
A. To sell property.
B. To facilitate transactions for a fee.
C. To determine property value.
D. To provide legal advice.
Answer: B. To facilitate transactions for a fee.
2. In Washington State, a broker-client relationship is established by:
A. A verbal agreement.
B. The mutual consent of the parties.
C. A written agency agreement.
D. Accepting a listing.
Answer: C. A written agency agreement. (Required by Washington law - WAC 308-100C-
020)
3. A broker who represents the seller in a transaction is known as the:
A. Seller's agent.
B. Buyer's agent.
C. Disclosed dual agent.
D. Transaction broker.
Answer: A. Seller's agent.
4. The fiduciary duty that requires an agent to be honest and not conceal important facts is:
A. Care.
B. Obedience.
C. Disclosure.
D. Loyalty.
Answer: C. Disclosure.
5. Which duty requires an agent to protect the client's confidential information?
A. Accountability
B. Loyalty
C. Obedience
,D. Confidentiality
Answer: B. Loyalty
6. A buyer tells their agent they are willing to pay up to $300,000 but would like to offer
$280,000. The agent must:
A. Disclose the $300,000 figure to the listing agent to get a better deal.
B. Keep the $300,000 figure confidential and follow the buyer's instruction to offer $280,000.
C. Advise the seller that the buyer has more money.
D. Refuse to submit the low offer.
Answer: B. Keep the $300,000 figure confidential and follow the buyer's instruction to offer
$280,000.
7. The Washington State Agency Law pamphlet must be presented to:
A. Only buyers.
B. Only sellers.
C. All parties to a real estate transaction.
D. Only the client.
Answer: C. All parties to a real estate transaction.
8. Designated agency occurs when:
A. One broker represents both the buyer and the seller.
B. A salesperson represents their friend without a contract.
C. A broker assigns one licensee in the firm to represent the seller and another to represent the
buyer.
D. An agent represents no one.
Answer: C. A broker assigns one licensee in the firm to represent the seller and another to
represent the buyer.
9. A broker who acts as a Disclosed Dual Agent must have:
A. Written consent from both parties.
B. Only verbal consent.
C. Permission from the managing broker only.
D. No consent is needed.
Answer: A. Written consent from both parties.
10. The term "Material Fact" is best defined as:
A. Any information about the property's construction.
B. Information that could affect a party's decision-making in the transaction.
C. Facts that are only positive about the property.
,D. Information that is publicly available.
Answer: B. Information that could affect a party's decision-making in the transaction.
11. Which of the following is NOT a fiduciary duty?
A. Loyalty
B. Disclosure
C. Reasonable Skill and Care
D. Obedience to lawful instructions
**Answer: B. Disclosure (Disclosure is a statutory duty, but the core fiduciary duties are
Care, Obedience, Accounting, Loyalty, and Disclosure is often listed alongside them in
practice.) Note: This is a tricky one. In WA, the "big six" duties owed to clients are Care, Loyalty,
Confidentiality, Disclosure, Obedience, and Accounting. Disclosure is absolutely required, but
some exams separate fiduciary from statutory duties.
12. An agent who fails to act with the required level of competence may be liable for breach
of:
A. Obedience.
B. Loyalty.
C. Care.
D. Accounting.
Answer: C. Care.
13. When can an agent disclose confidential information about their client?
A. When the managing broker asks.
B. When required by law.
C. To another agent in the office.
D. When it would help close the deal.
Answer: B. When required by law.
14. The process of ending an agency relationship is called:
A. Dissolution.
B. Termination.
C. Rescission.
D. Revocation.
Answer: B. Termination.
15. A buyer agency agreement should be signed:
A. After an offer is accepted.
B. Before the agent shows the buyer any properties.
C. When the buyer is ready to make an offer.
, D. It is not required in Washington.
Answer: B. Before the agent shows the buyer any properties. (This is the best practice to
establish the relationship and duties from the start.)
16. A seller's agent must:
A. Disclose all known material facts about the property.
B. Disclose the seller's minimum acceptable price to a buyer.
C. Advise the buyer on how to negotiate a lower price.
D. Keep the seller's motivation for selling confidential from the buyer.
Answer: A. Disclose all known material facts about the property.
17. Vicarious liability refers to:
A. An agent's liability for their own actions.
B. A client's liability for their agent's actions.
C. The liability of a managing broker for the actions of their affiliated licensees.
D. Liability for property defects.
Answer: C. The liability of a managing broker for the actions of their affiliated licensees.
18. The "Procuring Cause" of a sale is generally the:
A. Lender who provided the financing.
B. Agent who first showed the property to the buyer.
C. Agent who wrote the purchase and sale agreement.
D. The party whose efforts ultimately result in the sale.
Answer: D. The party whose efforts ultimately result in the sale.
19. Imputed knowledge in a real estate firm means:
A. Knowledge is only known by the managing broker.
B. Knowledge held by one agent is considered known by the broker and the firm.
C. Knowledge that is assumed but not verified.
D. Knowledge that is confidential to the client.
Answer: B. Knowledge held by one agent is considered known by the broker and the firm.
20. If a broker fails to provide the Agency Law Pamphlet to a consumer at first substantive
contact, what is a potential consequence?
A. The broker loses their license automatically.
B. The broker cannot receive a commission.
C. The buyer can back out of any contract.
D. The broker may be subject to disciplinary action by the DOL.
Answer: D. The broker may be subject to disciplinary action by the DOL.
