Wa Managing Broker Supervision

WA Managing Broker Supervision Requirements ## Overview In Washington State, the Managing Broker license is the supervisory designation — distinct from the entry-level Broker license. Managing brokers are legally responsible for supervising affiliated brokers and ensuring compliance with the Real Estate License Law (RCW 18.85) and the Agency Law (RCW 18.86). --- ## Managing Broker License Requirements To obtain a Managing Broker license in Washington: - Hold an active Broker license for at least 3 of the last 5 years - Complete 90 hours of additional managing broker education (30 hours advanced practices + 30 hours business management + 30 hours electives) - Pass the Managing Broker exam (state and national portions) - Apply to the WA DOL within 6 months of passing the exam --- ## Supervision Duties A managing broker who supervises affiliated brokers must: 1. Actively supervise — passive oversight is insufficient. Supervision means reviewing transactions, monitoring for compliance, and being accessible to affiliated brokers. 2. Review transaction documents — earnest money receipts, purchase and sale agreements, listing agreements, and closing documents must be reviewed for adequacy and legal compliance. 3. Maintain complete transaction files — records must be retained for 3 years from the date of closing or the date of the transaction if it did not close. 4. Ensure trust account compliance — managing brokers are responsible for proper handling of client funds. Trust accounts must be reconciled monthly. 5. Provide written office policies — managing brokers must establish written policies governing affiliated brokers' activities including advertising, document handling, and client communication. --- ## Designated Broker Responsibility The Designated Broker (firm principal) carries ultimate responsibility for the firm's licensed activities. A Designated Broker must…