Washington Real Estate Law Continuing Education 2021 Flashcards

Washington Real Estate Law (Continuing Education 2021) Flashcards

• Skill and careA broker ensuring that he/she does not

overstep the bounds of his/her own expertise is part of acting with reasonable skill and care.Which of these is NOT a best practice to follow when giving referrals for services?A) Refer only licensed individuals or companies where applicableB) Refer several service providersC) Disclose any relationship that could be perceived as a conflict of interestD) Recommend only service providers that the broker does not know personally When a court interprets a document, provisions are interpreted in the following order of precedence (from most

controlling to least controlling):A) Preprinted clauses,

handwritten changes, typed changesB) Handwritten changes, typed changes, preprinted clausesC) Typed changes, handwritten changes, preprinted clausesD) Preprinted clauses, typed changes, handwritten changes

• Handwritten changes, typed changes, preprinted

clausesDocuments are interpreted in a way thought to give the most importance to the wishes of the parties, so changes made directly by the parties receive elevated

importance: handwritten changes are prioritized over typed

changes, and changes made by the parties are prioritized over preprinted forms.How does a branch manager differ from a designated

broker? The branch manager:A) Cannot be responsible for

overseeing trust accounts and accountingB) Does not have to be licensedC) Is specifically responsible for overseeing all activity within the branch officeD) Cannot be delegated any of the designated broker's responsibilities

• Is specifically responsible for overseeing all activity

within the branch officeBy definition, a branch manager manages the branch office. A branch manager must be licensed and can accept delegated responsibilities including trust accounting oversight.Expert Advice QuizUnder normal circumstances, who should choose the buyer's title insurance company?A) The seller's agentB) The buyer's agentC) The sellerD) The buyer Licensee Edger has an active listing with seller Joe and licensee Sabin wants the listing when it expires if no sale has occurred. What can Sabin do if Edger refuses to give the expiration date of the listing contract?A) There is nothing Sabin can do.B) Buy the property listing from Edger.C) Report Edger's ethical conduct violation to the local board of Realtors®.D) Sabin can contact the seller directly to ask about the contract expiration date.

• Sabin can contact the seller directly to ask about the

contract expiration date.A designated broker must send the Department of Licensing an affidavit and ensure pending transactions are completed or transferred to a firm that can complete the transactions whenA) Firing a brokerB) Closing an officeC) Closing a firmD) Transferring a broker

• Closing a firmThe designated broker must send the

Department of Licensing a closing firm affidavit within five days of closing a firm, ensure that pending transactions will be completed, and terminate or transfer active brokerage service contracts.When is a licensee's preparation of a non-standard document definitely NOT the unauthorized practice of law?A) When the document is a contract for the deedB) When the document addresses only a detail of the transaction at handC) When done at the direction of a principal to the transactionD) When the licensee is a

principal to the transaction

• When the licensee is a principal to the transactionA

licensee is free to draft documents for transactions in which he/she is acting as a principal, because actions taken on one's own behalf are not legal advice or counsel.

• Cooperate with an active Washington designated brokerA company licensed as "Mark Bowen and Associates"

wants to use the company name "Bowmark Real Estate."

What must be done to use this name?A) Submit a company name change form to the Department of LicensingB) Contact the director and request permission to use the nameC) Register the additional name with the Department of LicensingD) Obtain a separate license for the additional company name

• Negotiate with clients and customersTo conduct commercial real estate activity in Washington,

an out-of-state licensee must first do what?A) Cooperate with an active Washington designated brokerB) Obtain a Washington real estate license endorsementC) Take Washington-specific real estate coursesD) Be physically present in Washington

• It belongs to the principalAnything that an agent obtains

by virtue of placing his/her interest above that of principal belongs to the principal.Which fiduciary duty would prevent an agent from disclosing confidential matters?A) ObedienceB) DisclosureC) CareD) Loyalty

• SpecialThe special agent has limited and specific

authority, usually to represent a principal in a single transaction. Most agency relationships created in the real estate business are of this type.What is a partially disclosed principal?A) A principal whose existence is not made known but whose identity is made known.B) A principal who will be using a power of attorney.C) A principal who discloses only part of their name to their agent.D) A principal whose existence is made known but not their identity.

• 3 yearsFailing to keep escrow and trust account records

available upon request to the director or an authorized representative for at least three years is a basis for disciplinary action under Washington real estate law.All real estate transaction funds controlled by a licensee

must be kept separate from:A) the pooled interest-bearing

account.B) any Washington state depository.C) the licensee's own funds.D) funds controlled by the firm.What method of dispute resolution is encouraged by the National Association of Realtors®?A) LitigationB) Arbitration and MediationC) ConciliationD) Jury Trial

• Arbitration and MediationThe purpose of the Code of

Ethics, Article 17 is to require and encourage mediation and arbitration. Arbitration is an alternative dispute resolution method that typically involves less time and expense to reach a result than traditional litigation.

• LoyaltyThe duty of loyalty requires an agent to disclose

an ownership interest of 5% or more in a property for sale.Which fiduciary duty would prohibit having divided loyalties without the principal's knowledge or consent, such as an undisclosed dual agency?A) DisclosureB) CareC) LoyaltyD) Obedience

• Notify the Director and return the license When does a designated broker become responsible for

funds and records that are required to be held by the real estate firm?A) After receiving them from a brokerB) After the records are entered in the databaseC) As soon as they are recorded by a brokerD) The designated broker is always responsible

• Presenting an offerOffers should be presented in

person.It is most appropriate to contact a client by bulk email

when:A) Sharing general information such as a

newsletterB) Telling a client about the time an inspection has been scheduledC) Alerting a client that an offer has been receivedD) Presenting an offer

• A principal whose existence is made known but not their

identity.In the case of a partially disclosed principal, the existence of the principal is known, but not the identity of the principal.If Taylor Jones has a power of attorney to sign real estate closing papers for Madison Jones, how should Taylor sign Madison's name?A) Madison Jones, by Taylor Jones, Designated AttorneyB) Madison Jones, by Taylor Jones, Lawyer in EscrowC) Madison Jones, by Taylor Jones, Factual AttorneyD) Madison Jones, by Taylor Jones,