Washington Real Estate Broker

Key Concepts

Definitions (RCW 18.85.011) - "Commercial real estate" means any parcel of real estate in this state other than real estate containing one to four residential units. It does not include a single-family residential lot or single-family residential units such as condominiums, townhouses, manufactured homes, or homes in a subdivision when sold, leased, or otherwise conveyed on a unit-by-unit basis — unless the property is sold or leased for a commercial purpose (RCW 18.85.011(6)). - "Controlling interest" means the ability to control either the operational or financial, or both, decisions of a firm (RCW 18.85.011(8)). It is not defined by an ownership percentage. - "Inactive license" means the status of a license that is not expired and is not affiliated with a firm (RCW 18.85.011(12)). - "Designated broker" includes a natural person with a controlling interest in the firm designated to act for it, whose managing broker's license receives a department endorsement of "designated broker" (RCW 18.85.011(10)).

Licensing requirements - Broker exam: proof of 90 hours of approved real estate instruction, including fundamentals (with three hours of fair housing and consumer protection instruction) and practices, each course completed within two years before applying for the examination (RCW 18.85.101(1)(c)). - Managing broker exam: a minimum of three years of licensed experience as a full-time real estate broker in this state or a comparable jurisdiction within the five years previous to applying, unless otherwise qualified by related practical experience prescribed by rule (RCW 18.85.111(1)(c)); each course toward the 90 hours must be completed within three years before applying, be at least thirty clock hours, and be director-approved (RCW 18.85.111(1)(d)). A managing broker may be licensed to only one firm at a time (RCW 18.85.111(3)). - Firm: must designate a managing broker as "designated broker" with authority to act for the firm and identify owners or others holding a controlling interest (RCW 18.85.091(1)(a)). - Designated broker registration: must hold a managing broker's license and may act as designated broker for more than one firm; the department endorses the license with the names of all firms served (RCW 18.85.121). - Out-of-state licensees:…

Key Concepts

Examination and scoring - A broker candidate must achieve a minimum scaled score of 70 on each of the two broker exam portions (national and state) — WAC 308-124A-760(1). The 75 standard applies to the managing broker examination — WAC 308-124A-760(2). - An applicant actively licensed in the same or greater capacity in another jurisdiction, or so licensed in good standing within the preceding six months, may take only the Washington law portion of the exam — WAC 308-124A-720(1).

Prelicense and managing broker education - Each approved course counted toward the 90 hours of broker prelicense instruction must be completed within two years before applying for the broker's license examination, be approved by the director, and be passed with a course examination — RCW 18.85.101(1)(c). - Managing broker examination: 90 clock hours of approved instruction in addition to clock hours used for other chapter 18.85 RCW requirements, including advanced real estate law, real estate brokerage management, and business management, each at least 30 clock hours with a comprehensive examination, completed within three years prior to applying — WAC 308-124A-750(1); RCW 18.85.111(1)(d) (each course at least 30 clock hours, completed within three years). - Managing broker experience: three years of licensed experience as a full-time real estate broker in this state or a comparable jurisdiction within the five years previous to applying — RCW 18.85.111(1)(c). For applicants qualifying on other/related practical experience, all experience time periods must have been completed within the six years immediately preceding the date of application — WAC 308-124A-713.

Key Concepts

Definitions and scope - "Commercial real estate" is any parcel in this state other than real estate containing one to four residential units; single-family lots, condos, townhouses, manufactured homes conveyed unit-by-unit are excluded unless sold or leased for a commercial purpose (RCW 18.85.011(6)). - Out-of-state licensees deemed equivalent by the director may perform licensed acts here only as to commercial real estate, cooperating with a Washington designated broker under written agreement, consenting to Washington jurisdiction, and depositing records with the Washington firm (RCW 18.85.131).

Licensing, education, renewal - Broker prelicense: 90 hours, each course completed within two years before applying for the exam (RCW 18.85.101(1)(c)); managing broker prelicense uses a three-year window (RCW 18.85.111(1)(d)). - Managing broker experience: three years full-time licensed broker experience within the previous five years (RCW 18.85.111(1)(c)). - First broker renewal education must include 90 hours of director-prescribed courses (real estate law with three hours on fair housing and consumer protection, advanced practices, continuing education) (RCW 18.85.101(2)). - Renewal: 30 clock hours every two years; up to 15 excess hours from the immediately preceding two-year period carry forward (RCW 18.85.211(1)). Three of the 30 must be fair housing/prevention of unfair practices per RCW 49.60.222 (RCW 18.85.211(2)). - Renewal fee not received within one year of expiration = license canceled (RCW 18.85.191). - Inactive license: renews on the same terms except the education requirements of RCW 18.85.101(1)(c) or 18.85.211 (RCW 18.85.265(2)); inactive more than three years requires a 30 clock hour course within one year before applying for active status (RCW 18.85.265(3)). - Fingerprint-based WSP/FBI background check required unless the applicant is a corporation or limited liability company (RCW 18.85.171(1)(d)).

Key Concepts

Who is an agent (RCW 18.86.010(2), (7), (10), (17)). "Agent" means a broker with an agency relationship with a principal, including the firm's designated broker and any managing broker responsible for the supervision of that broker. A buyer's agent has an agency relationship with only the buyer; a seller's agent with only the seller; a limited dual agent has an agency relationship with both buyer and seller in the same transaction.

Material fact (RCW 18.86.010(11)). Information that substantially adversely affects the value of the property or a party's ability to perform its obligations, or operates to materially impair or defeat the purpose of the transaction. The fact or suspicion that the property or any neighboring property is or was the site of a murder, suicide or other death, rape or other sex crime, assault or other violent crime, robbery or burglary, illegal drug activity, gang-related activity, political or religious activity, or other occurrence not adversely affecting the physical condition of or title to the property is not a material fact.

Confidential information (RCW 18.86.010(9)). Acquired during the agency relationship; the principal reasonably expects it kept confidential; not disclosed or authorized to be disclosed; would operate to the principal's detriment; and the principal personally would not be obligated to disclose it.

Services agreement contents (RCW 18.86.020(2)(b)). (i) The term, and if the principal is a buyer, a default term of 60 days with the option of a longer term; (ii) the broker appointed as agent; (iii) exclusive or nonexclusive (buyers get checkbox options); (iv) consent to the appointed broker acting as limited dual agent, which must be separately initialed by the principal and include an acknowledgment that a limited dual agent may not advocate terms favorable to one principal to the detriment of the other; and (v) consent to the designated broker/supervising managing broker acting as limited dual agent when different brokers in the same firm represent different parties. Under RCW 18.86.080(7)(b), a buyer's services agreement must also state **whether the appointed broker agrees to show the buyer properties if there is no agreement or offer by any…