National Portion — 100 Questions
| Topic | Qs | Priority |
|---|---|---|
| Agency & Contracts | 28 | ● HIGHEST |
| Finance | 14 | ● HIGH |
| Real Property & Ownership | 14 | ● HIGH |
| Property Valuation & Appraisal | ~12 | ● MED-HIGH |
| Transfer of Title | ~10 | ● MED-HIGH |
| Land Use Controls | ~8 | ● MEDIUM |
| RE Calculations (Math) | ~8 | ● MEDIUM |
| Property Management & Investment | ~6 | ● LOWER |
State Portion (WA) — 30 Questions
| Topic | Qs | Priority |
|---|---|---|
| WA Statutes & Licensee Activity | ~13 | ● HIGHEST |
| WA Licensing Requirements | ~8 | ● HIGH |
| WA Agency Relationships | ~5 | ● MED-HIGH |
| Closing Procedures & WA Rules | ~4 | ● MEDIUM |
63% of your total exam comes from just four areas: Agency/Contracts, WA Statutes/Licensing, Finance, and Real Property. Study these first and hardest.
Ch 1
Agency Relationships & Contracts
Agency Relationships
Agency is the legal relationship in which one party (the agent) is authorized to act on behalf of another (the principal). In real estate, the agent is the broker/licensee and the principal is the buyer or seller.
Key Parties
- Principal (Client) — the person the agent legally represents
- Agent — the licensed broker acting on behalf of the principal
- Third Party (Customer) — the other side of the transaction; receives honesty and disclosure but not fiduciary duty
Types of Agency
| Type | Who They Represent | Notes |
|---|---|---|
| Seller's Agent | Seller | Full fiduciary duty to seller; must disclose known defects to buyers |
| Buyer's Agent | Buyer | Must act in buyer's best financial interest |
| Dual Agency | Both | Legal in WA with written informed consent; limited advocacy for either party |
| Designated Agency | Each party separately | WA's preferred solution — brokerage assigns different licensees to each side |
| Non-Agency | Neither | Washington does not use this model — all WA licensees represent someone |
Washington Agency Law — RCW 18.86
- Default rule: A licensee working with a buyer or seller is presumed to be that party's agent unless a different relationship is established in writing
- Agency disclosure timing: At first substantial contact with a potential client
- Written agreement required before or at the time of making/presenting an offer
- Dual/Designated Agency: Written consent from all parties required before proceeding
Fiduciary Duties — OLDCAR
OLDCAR — Fiduciary Duties to the Principal
O
Obedience — Follow all lawful instructions of the principal
L
Loyalty — Put client's interests above all others, including your own
D
Disclosure — Disclose all material facts known to the agent
C
Confidentiality — Don't reveal client's confidential information without consent
A
Accountability — Account for all funds and property entrusted to the agent
R
Reasonable Care — Use professional skill and diligence
Note: Even when acting as seller's agent, you still owe the buyer: honesty, disclosure of known material defects, and reasonable care in delivering documents.
Creation & Termination of Agency
| Created By | Terminated By |
|---|---|
| Express agreement (written or oral) | Expiration of the agreement |
| Implied by conduct | Completion of the purpose |
| Ratification (principal approves unauthorized act) | Mutual agreement |
| Estoppel (principal allows another to appear as agent) | Death or incapacity of either party |
| Destruction of the property | |
| Revocation by principal / Renunciation by agent |
Contracts
Essential Elements — CLACO
CLACO — Valid Contract Elements
C
Capacity — Parties must be 18+ and mentally competent
L
Legality — Purpose must be legal
A
Agreement — Offer + Acceptance (mutual assent / meeting of the minds)
C
Consideration — Something of value exchanged by both parties
O
Offer in writing — Real estate contracts must be in writing (Statute of Frauds)
Contract Status
| Status | Meaning |
|---|---|
| Valid | Meets all requirements; enforceable by both parties |
| Void | No legal effect (e.g., illegal purpose); cannot be enforced by either party |
| Voidable | One party has the right to rescind (e.g., minor entering a contract) |
| Unenforceable | Valid contract but cannot be enforced due to legal technicality (e.g., oral RE contract) |
Types of Real Estate Contracts
| Contract | Description |
|---|---|
| Purchase & Sale Agreement (PSA) | Primary contract between buyer and seller; includes price, contingencies, closing date, earnest money |
| Exclusive Right to Sell Listing | Broker earns commission regardless of who finds the buyer. Most common; most broker protection. |
| Exclusive Agency Listing | Broker earns commission unless seller finds the buyer themselves |
| Open Listing | Seller can list with multiple brokers; only the one who produces a buyer earns commission |
| Net Listing | ILLEGAL in Washington. Broker keeps everything above a set net price to seller. |
| Buyer Representation Agreement | Required in writing in WA before or at the time of making an offer |
| Option Contract | Right but not obligation to purchase within a specified time at a specified price. Option consideration is non-refundable. |
| Land Contract (Contract for Deed) | Seller finances; buyer gets possession but seller retains title until paid off. Risky for buyers. |
Contract Contingencies
- Financing contingency — buyer can exit without penalty if unable to obtain financing
- Inspection contingency — buyer right to inspect and negotiate/withdraw based on findings
- Appraisal contingency — if property appraises below purchase price, buyer can renegotiate or exit
- Sale of buyer's home contingency — purchase depends on buyer selling their current property
Earnest Money
- Good-faith deposit made by buyer upon signing the PSA
- Held in a trust account by the broker — never commingled with operating funds
- Goes to seller if buyer defaults without a valid contingency
- Returned to buyer if seller defaults or a contingency fails
Performance & Breach
| Remedy | Definition |
|---|---|
| Specific Performance | Court order to complete the contract as agreed. Available in RE because each property is unique. |
| Liquidated Damages | Pre-agreed amount (often earnest money) if a party defaults |
| Rescission | Cancellation; both parties return to original positions |
| Novation | Substitution of a new party or obligation, releasing the original party |
Ch 2
Washington Statutes, Rules & Licensing
The Washington State Department of Licensing (DOL) regulates all real estate licensees through the Real Estate Program. Key statutes: RCW 18.85 (Real Estate Brokers and Managing Brokers) and WAC 308-124.
License Types
| License | Requirements |
|---|---|
| Real Estate Broker | 90 hours pre-license education; pass PSI exam; 18+ years old; must work under a designated broker |
| Managing Broker | 3 years active broker experience; 90 additional hours education; pass Managing Broker exam; can supervise licensees |
| Designated Broker | A managing broker designated to be responsible for a specific firm or branch |
Education & Renewal
- Pre-license: 90 clock hours (broker)
- CE: 30 hours every 2 years — 3 mandatory Core Course hours + 27 elective hours
- License renewal: Every 2 years on the licensee's birthday
- Late renewal: Possible within 1 year of expiration with penalty fee; after 1 year, must re-apply as a new applicant
Trust Accounts
- All earnest money, rental deposits, and client funds must be held in a separate trust account
- Commingling (mixing client funds with operating/personal funds) = serious violation
- Conversion (using client funds for personal use) = grounds for license revocation and criminal prosecution
- Brokers must keep records of all trust account transactions for 3 years
Disclosure Requirements
Seller Disclosure Statement (Form 17)
- Required on most residential sales
- Seller must disclose known material defects
- Buyer has 3 business days to rescind after receiving Form 17
- Exceptions: new construction, estate sales, foreclosures, certain transfers
Agency Disclosure
- Must be disclosed at first substantial contact
- Must be confirmed in writing before making/presenting an offer
- Material facts must be disclosed even if the seller doesn't want them disclosed
Prohibited Practices
| Practice | Definition |
|---|---|
| Misrepresentation | Making false statements about a property |
| Fraud | Intentional deception to induce a transaction |
| Blockbusting | Inducing owners to sell by predicting a protected class is moving into the area |
| Steering | Directing buyers toward/away from neighborhoods based on protected class status |
| Redlining | Refusing to provide services in certain areas based on area demographics |
| Net Listings | Illegal in Washington |
| Commingling / Conversion | Illegal. Fines up to $5,000 per violation; can result in revocation. |
Washington Fair Housing
Washington's Law Against Discrimination (RCW 49.60) mirrors federal fair housing law but adds additional protected classes.
| Federal (7 Classes) | WA Additional Classes |
|---|---|
| Race, Color, National Origin, Religion, Sex, Disability, Familial Status | Sexual Orientation, Gender Identity, Veteran/Military Status, Marital Status, Source of Income (Section 8) |
Ch 3
Finance
Key Terminology
| Term | Definition |
|---|---|
| Mortgagor | The borrower (gives the mortgage to the lender) |
| Mortgagee | The lender (receives the mortgage) |
| Promissory Note | The actual promise to repay the debt; the primary debt instrument |
| Mortgage / Deed of Trust | The document that pledges the property as collateral |
| LTV (Loan-to-Value) | Loan amount ÷ Appraised value |
| Amortization | Gradual repayment of a loan through periodic payments |
| Equity | Property value minus outstanding loan balance |
Deed of Trust vs. Mortgage
Washington is a Deed of Trust state. Most WA loans use a Deed of Trust, not a traditional mortgage.
| Feature | Mortgage (2 parties) | Deed of Trust (3 parties) |
|---|---|---|
| Parties | Borrower + Lender | Borrower + Lender + Trustee |
| Foreclosure | Judicial (through courts — slow) | Non-judicial (trustee sale) — faster |
| Used in WA? | Rarely | Yes — standard |
Loan Types
| Loan Type | Key Features |
|---|---|
| Conventional | Not gov't-backed; PMI required if LTV > 80%; conforming loans meet Fannie/Freddie limits |
| FHA | Gov't-insured; 3.5% min down payment; requires MIP; FHA minimum property standards apply |
| VA | For eligible veterans; no down payment; no PMI; VA guarantees (doesn't insure); entitlement can be restored |
| USDA | For eligible rural properties/low-moderate income; no down payment required |
| Jumbo | Exceeds conforming loan limits; higher rates; stricter underwriting |
| Fixed-Rate | Rate never changes; stable monthly payment; better for long-term buyers |
| ARM | Rate adjusts periodically; lower initial rate; caps limit adjustments per period and over loan life |
| Balloon | Lower payments then large lump sum due; borrower must refinance or pay off at balloon date |
| Reverse Mortgage (HECM) | For homeowners 62+; converts equity to cash; no monthly payments; FHA-insured |
Underwriting — The Four Cs
Four Cs of Underwriting
C
Capacity — Income and debt-to-income ratio (DTI)
C
Capital — Assets, savings, down payment
C
Credit — Credit score and history
C
Collateral — The property value (appraisal)
DTI Ratios: Front-end (housing costs ÷ gross income) ≤ 28% | Back-end (all debt ÷ gross income) ≤ 36–43%
Points & Costs
- Discount Points: 1 point = 1% of loan amount; paid upfront to buy down the rate; ~1 point reduces rate by 0.25%
- APR (Annual Percentage Rate): True cost of borrowing — includes rate + fees; always higher than stated rate; required under TILA
Government Regulations
| Law | What It Does |
|---|---|
| RESPA | Requires disclosure of closing costs via Closing Disclosure; prohibits kickbacks; applies to federally related loans |
| TILA / Reg Z | Requires APR disclosure; 3-day right of rescission for refinances of primary residence |
| TRID | Combined RESPA + TILA disclosures in 2015 (Loan Estimate + Closing Disclosure) |
| ECOA | Prohibits discrimination in lending; lender must provide adverse action notice if credit is denied |
| CRA | Requires banks to meet credit needs of all communities they serve, including low-income areas |
Finance Math
LTV = Loan Amount ÷ Appraised Value × 100
Example: $320,000 loan on a $400,000 property = 80% LTV
Example: $320,000 loan on a $400,000 property = 80% LTV
Down Payment = Purchase Price × Down Payment %
Example: 10% down on $500,000 = $50,000 down, $450,000 loan
Example: 10% down on $500,000 = $50,000 down, $450,000 loan
Points Cost = Loan Amount × (Points ÷ 100)
Example: 2 points on $300,000 loan = $6,000
Example: 2 points on $300,000 loan = $6,000
Ch 4
Real Property & Ownership
Land vs. Real Property vs. Personal Property
| Term | Definition |
|---|---|
| Land | Earth's surface + everything permanently attached (subsurface + airspace rights) |
| Real Property | Land + improvements + appurtenances (the full bundle) |
| Personal Property (Personalty) | Movable items not permanently attached |
| Fixture | Personal property that has become real property through attachment (use MARIA test) |
MARIA Test — Is it a Fixture?
MARIA — Fixture Test
M
Method of attachment — screwed in, cemented? Likely a fixture
A
Adaptability — custom-fitted item? Likely a fixture
R
Relationship of parties — seller vs. buyer → buyer's favor; landlord vs. tenant → landlord's favor
I
Intention of the parties
A
Agreement of the parties — written agreement controls
Bundle of Rights
Ownership of real property includes: Right to Use, Enjoy, Exclude, Transfer (sell/lease/give), and Encumber (mortgage).
- Air Rights — upward (limited by aviation law)
- Subsurface Rights — downward; includes mineral rights
- Prior Appropriation (WA Water) — water rights based on first use and state permit; WA is a prior appropriation state
Estates in Land
Freehold Estates (Ownership)
| Estate | Description |
|---|---|
| Fee Simple Absolute | Highest form; unlimited rights; no conditions or limitations |
| Fee Simple Determinable | "So long as…" — reverts automatically if condition violated |
| Fee Simple Subject to Condition Subsequent | "Provided that…" — grantor must take action to reclaim title |
| Life Estate | Ownership for the life of a person; life tenant can use/rent/improve but cannot commit waste; passes to remainderman when measuring life ends |
Leasehold Estates (Possession Without Ownership)
| Type | Description |
|---|---|
| Estate for Years | Fixed term; specific start and end dates; no notice required to terminate |
| Estate from Period to Period | Month-to-month or week-to-week; auto-renews; requires notice to terminate |
| Estate at Will | No fixed term; either party can terminate at any time with reasonable notice |
| Estate at Sufferance | Tenant stays after lease expires without landlord's permission (holdover tenant) |
Forms of Co-Ownership
| Type | Key Features |
|---|---|
| Tenancy in Common | Undivided interest (can be unequal); each can sell/transfer independently; no right of survivorship; default form |
| Joint Tenancy | Equal, undivided interests; requires Four Unities (TTIP); right of survivorship — bypasses probate; must be clearly stated |
| Community Property (WA) | Property acquired during marriage owned equally by both spouses; both must sign to transfer; WA is one of 9 community property states |
| Condominium | Fee simple title to unit + co-ownership of common areas; governed by HOA and CC&Rs |
| Cooperative (Co-op) | Residents own shares in a corporation; no fee simple ownership; proprietary lease; board approval for transfers |
Four Unities for Joint Tenancy (TTIP): Time, Title, Interest, Possession — all must exist simultaneously.
Encumbrances
| Type | Details |
|---|---|
| Voluntary Lien | Mortgage/Deed of Trust — owner consents |
| Involuntary Lien | Tax lien, judgment lien, mechanic's lien |
| Lien Priority | First recorded = first in line. Exception: property tax liens always have super-priority |
| Easement Appurtenant | Benefits an adjacent parcel; runs with the land; dominant tenement benefits, servient tenement is burdened |
| Easement in Gross | Benefits a person/company (utility lines, railroads) — not tied to a parcel |
| Easement by Prescription | Acquired through long, open, continuous, hostile use (like adverse possession but for use, not title) |
| Encroachment | Structure physically extends onto another's property; must be resolved by legal action or agreement |
| CC&Rs / Deed Restrictions | Private limitations on property use; run with the land; bind future owners |
Ch 5
Property Valuation & Appraisal
Factors of Value — DUST
DUST — Four Factors of Value
D
Demand — desire + purchasing power
U
Utility — usefulness; ability to satisfy needs
S
Scarcity — limited supply drives value
T
Transferability — ability to convey ownership
Key Appraisal Principles
| Principle | Definition |
|---|---|
| Highest and Best Use | The use that produces the greatest value — must be legal, physically possible, financially feasible, maximally productive |
| Substitution | A buyer won't pay more than the cost of a comparable substitute |
| Contribution | A component's value is measured by its contribution to the whole (not its cost) |
| Conformity | Value is maximized when a property conforms to the neighborhood |
| Progression / Regression | Lower-value property benefits from higher-value neighbors (progression); higher-value is dragged down (regression) |
| Anticipation | Value is based on expected future benefits |
| Plottage / Assemblage | Combining smaller parcels to create greater value |
Three Approaches to Value
| Approach | Best Used For | Method |
|---|---|---|
| Sales Comparison (Market) | Residential property — most common | Compare to recent sales of comparable properties. Adjust the comp, not the subject. Add to comp if subject has better features; subtract if comp is better. |
| Cost Approach | Unique/special-purpose properties; new construction | Land Value + (Reproduction Cost − Depreciation). Three depreciation types: physical deterioration, functional obsolescence, external/economic obsolescence. |
| Income Approach | Income-producing property (apartments, commercial) | Value = NOI ÷ Cap Rate. NOI = Gross Income − Vacancy − Operating Expenses (not debt service). |
Value = NOI ÷ Cap Rate
Example: NOI $60,000 at 6% cap rate → $60,000 ÷ 0.06 = $1,000,000
Example: NOI $60,000 at 6% cap rate → $60,000 ÷ 0.06 = $1,000,000
Cap Rate Rule: Lower cap rate = higher price. Higher cap rate = lower price. Investors buying in hot markets accept lower cap rates.
Depreciation Types
- Physical deterioration — wear and tear (curable: deferred maintenance; incurable: structural)
- Functional obsolescence — outdated features (curable: can be fixed; incurable: poor floor plan)
- External/Economic obsolescence — caused by factors outside the property — always incurable
Appraisal vs. CMA
| Appraisal | CMA | |
|---|---|---|
| Done by | Licensed/Certified Appraiser | Real estate licensee |
| Used for | Mortgage lending, legal purposes | Setting listing price or offer price |
| Legal weight | Accepted by lenders and courts | Not accepted for mortgage purposes |
Ch 6
Transfer of Title
A deed is the legal instrument that transfers title (ownership) from grantor to grantee.
Valid Deed Elements — LEGAL-CD
LEGAL-CD — Essential Deed Elements
L
Legal description of the property
E
Expressed consideration (price or "love and affection")
G
Grantor with legal capacity (18+, competent)
A
Acknowledgment (notarized signature of grantor)
L
Legal words of conveyance ("grant and convey," "deed and convey")
C
Competent grantee (must be identifiable)
D
Delivery and acceptance
A deed does not need to be recorded to be valid between grantor and grantee — but recording protects against third parties.
Types of Deeds
| Deed Type | Warranties | Best For |
|---|---|---|
| General Warranty Deed | Full protection — warrants against all defects, even before grantor owned it | Regular market sales; maximum buyer protection |
| Special Warranty Deed | Warrants only against defects during grantor's ownership | Commercial transactions; REO (bank-owned) sales |
| Quitclaim Deed | No warranties; conveys whatever interest grantor has, if any | Clearing title, family transfers, divorce settlements |
| Bargain and Sale Deed | No warranties but implies grantor has title | Foreclosure sales, tax deeds |
Legal Descriptions
| Method | How It Works |
|---|---|
| Metes and Bounds | Compass directions + distances; starts/ends at Point of Beginning (POB); used in 13 colonies and irregular parcels |
| Rectangular Survey | Principal Meridians (N-S) + Base Lines (E-W); Townships (6×6 miles); 36 Sections per township; 1 section = 640 acres |
| Lot and Block (Plat Map) | Used for subdivisions; references a recorded plat map filed with the county |
1 Section = 640 acres | 1 Township = 36 Sections
SE ¼ of NW ¼ of Section 12 = 640 × ¼ × ¼ = 40 acres
SE ¼ of NW ¼ of Section 12 = 640 × ¼ × ¼ = 40 acres
Title & Recording
- Actual Notice — direct knowledge; you personally know about a situation
- Constructive Notice — knowledge presumed because info is recorded in public records
- Chain of Title — chronological history of ownership
- Cloud on Title — any claim or defect that questions validity of ownership
- Race-Notice Statute (WA) — subsequent purchaser who records first AND had no prior knowledge of earlier claims wins
Title Insurance
| Policy Type | Protects | Required? |
|---|---|---|
| Owner's Policy | The buyer/new owner | Optional but recommended |
| Lender's Policy | The mortgage lender | Required for any mortgage loan |
Title insurance covers defects that existed before the policy was issued — it does not cover future events.
Ch 7
Real Estate Calculations
Commission Math
Commission = Sales Price × Commission Rate
$475,000 × 5.5% = $26,125
$475,000 × 5.5% = $26,125
Net to Seller Listing Price = Desired Net ÷ (1 − Commission Rate)
Seller wants $400,000 net, 5% commission: $400,000 ÷ 0.95 = $421,053
Seller wants $400,000 net, 5% commission: $400,000 ÷ 0.95 = $421,053
Commission splits: If listing and selling broker split 50/50, each gets half. If each broker then splits 70/30 with their agent, the listing agent gets: broker's half × 0.70.
Property Tax Math
Annual Tax = Assessed Value × Tax Rate (Mill Rate)
1 Mill = $1 per $1,000 of assessed value
$350,000 × 15 mills = $350,000 × 0.015 = $5,250/year
1 Mill = $1 per $1,000 of assessed value
$350,000 × 15 mills = $350,000 × 0.015 = $5,250/year
Proration at Closing
Used to split expenses (taxes, rent, HOA dues) between buyer and seller based on days of ownership.
- Calculate the annual amount
- Divide by 365 (or 360 for a banker's year) to get the daily rate
- Multiply by the number of days each party owns the property in that period
Income Property Formulas
Value = NOI ÷ Cap Rate
NOI = Cap Rate × Value
Cap Rate = NOI ÷ Value
NOI = Cap Rate × Value
Cap Rate = NOI ÷ Value
Area / Square Footage
Rectangle = Length × Width
Triangle = ½ × Base × Height
Triangle = ½ × Base × Height
Exam tip: Always write out the formula before plugging in numbers. Check whether the question asks for annual or monthly figures. Double-check decimal placement.
Ch 8
Land Use Controls & Regulations
Public Land Use Controls
| Power | Description | Compensation? |
|---|---|---|
| Zoning | Local ordinances regulating land use types. Variance (exception due to hardship), CUP (conditional use permit), non-conforming use, spot zoning. | No |
| Eminent Domain | Gov't takes private property for public use. Requires just compensation (FMV). Condemnation = formal legal process. Inverse condemnation = gov't action reduces value; owner can sue. | Yes — fair market value |
| Police Power | Gov't regulates property for public health, safety, welfare — zoning, building codes, environmental regulations. | No |
| Taxation | Ad valorem tax ("according to value"). Property tax lien has super-priority over all other liens. | No |
| Escheat | Owner dies without a will and no heirs — title passes to the state. | No |
Environmental Regulations
| Hazard / Law | Key Facts |
|---|---|
| CERCLA (Superfund) | Federal cleanup of hazardous waste sites; strict liability — even innocent buyers can be held responsible; Innocent Landowner Defense requires Phase I ESA |
| Lead-Based Paint | Disclosure required on homes built before 1978; buyer has 10-day inspection period |
| Asbestos | Found in older buildings; must be managed or removed by licensed professionals |
| Radon | Colorless, odorless naturally occurring gas; second leading cause of lung cancer; requires certified inspector test |
| Underground Storage Tanks | Risk of soil contamination; must be disclosed |
| Wetlands | Regulated by Army Corps of Engineers; Section 404 of Clean Water Act restricts development |
WA
Washington Quick Reference
| Topic | Key Rule |
|---|---|
| Pre-license hours | 90 clock hours |
| CE requirement | 30 hours / 2-year cycle (3 mandatory Core + 27 elective) |
| License renewal | Every 2 years on licensee's birthday |
| Late renewal window | Up to 1 year after expiration with penalty; after 1 year must reapply |
| Agency presumption | Licensee is agent of person they work with unless stated otherwise in writing |
| Agency disclosure timing | First substantial contact |
| Agency agreement | In writing before/at time of offer |
| Seller Disclosure (Form 17) | Buyer has 3 business days to rescind after receipt |
| Trust account records | Must be kept 3 years |
| Dual agency | Legal in WA with written informed consent |
| Net listings | ILLEGAL in Washington |
| Foreclosure method | Non-judicial (Trustee's Sale) via Deed of Trust |
| Recording statute | Race-Notice |
| Community property | WA is a community property state |
| WA extra protected classes | Federal 7 + Sexual Orientation, Gender Identity, Veteran Status, Marital Status, Source of Income |
| Fine per violation | Up to $5,000 |
📋
Exam Strategy
⏱ Time Management
- 130 questions in 210 minutes = ~1.6 min per question
- Don't spend more than 2 minutes on any single question — flag and move on
- Both sections must be passed independently at 70%
🎯 Difficult Questions
- Eliminate obvious wrong answers first
- Watch for absolutes: "always," "never," "must," "only" — often wrong
- When two answers seem correct, pick the one more protective of the client
🔢 Math Questions
- Always write out the formula before plugging in numbers
- Check whether question asks for annual or monthly figures
- Double-check decimal placement
- Work backwards from net amount to price when needed
🤝 Agency Questions
- Know who the agent represents in every scenario
- Dual agency requires written consent — if not obtained, there's a violation
- Designated agency is WA's preferred solution to in-house conflicts
📋 WA State Section
- Know RCW 18.85, RCW 18.86, and WAC 308-124
- Form 17, trust accounts, and license requirements are tested repeatedly
- Memorize the WA additional protected classes
📚 Study Priority Order
- 1. Agency & Contracts (~25% of exam)
- 2. WA Statutes & Licensing (~16%)
- 3. Finance (~11%)
- 4. Real Property & Ownership (~11%)
- These four = 63% of your total exam