WA LICENSE LAW — EXAM CHEAT SHEET

REGULATORY STRUCTURE

|---|---|---| Critical 2010 Terminology Shift:

• Old: "Salesperson" → New: "Broker" (entry-level)

• Old: "Broker" → New: "Managing Broker" (supervising)

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LICENSE ACQUISITION & ACTIVATION

Broker (Entry-Level)

• ✓ 90 hours pre-license (2 × 45-hr courses)

• ✓ Pass PSI exam (national + WA portions)

• ✓ Age 18+

• ✓ Fingerprint background check (WA State Patrol + FBI)

• ✓ Application + fee

• ⚠️ License issued INACTIVE — Cannot conduct business until affiliated with firm + managing broker

Managing Broker (Advanced)

• ✓ 3 of last 5 years active broker license (not necessarily consecutive)

• ✓ 90-hour managing broker course

• ✓ Pass managing broker exam

• ✓ Application

Firm License & Designated Broker

• Every firm must hold firm license + designate one managing broker as responsible party

• Designated broker: 1 person, 1 firm at a time (without DOL approval)

• If designated broker's license ends → firm has 10 days to appoint replacement or cease operations

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DECISION TREE: CAN I DO REAL ESTATE BUSINESS?

`` Do I hold a Washington real estate license? ├─ NO → Cannot conduct brokerage └─ YES → Is your license ACTIVE (affiliated with firm + managing broker)? ├─ NO (INACTIVE) → Cannot conduct brokerage └─ YES → Are you a managing broker or a broker under a managing broker? ├─ Managing broker → Can operate firm or supervise others └─ Broker → Can only conduct business under a managing broker `` ---

HIGH-YIELD TRAPS

|---|---|

Authority	Role	Key Point
DOL (Department of Licensing)	Issues, suspends, revokes licenses; enforces	Actual regulatory power
Real Estate Commission	Advisory only (5 brokers + 1 public)	NO independent enforcement
RCW 18.85	Primary statute—who must license, discipline grounds	Go-to law
WAC 308-124	Procedural rules, record-keeping, trust accounts	Implementation detail
Trap	Correct Answer
"Can I start business with just my broker license?"	NO — must affiliate with firm/managing broker first (inactive until filed)
"Do I need 5 consecutive years for managing broker?"	NO — 3 of last 5 years (gaps OK)
"Real Estate Commission can discipline me?"	NO — DOL disciplines; Commission is advisory only
"One person can be designated broker of 2 firms?"	NO — not without DOL approval
"If designated broker retires, firm has 30 days?"	NO — 10 days or cease operations
"Where do I check if someone is licensed?"	DOL public license lookup database (not NAR directory alone)

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QUICK REFERENCE: KEY DEADLINES & RULES

• Pre-license hours: 90 for broker; 90 for managing broker

• Active license requirement for managing broker: 3 of last 5 years

• Firm's action on designated broker vacancy: 10 days

• Background check: Required for initial licensure only

• Terminology exam: Uses post-2010 names (broker = entry-level; managing broker = supervisor)

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COMMON Q FORMAT

"A newly licensed broker receives her license. Can she start representing clients?" → NO. License is inactive until she affiliates with a firm + managing broker and the affiliation is filed with DOL. "The designated broker's license expires. What happens?" → Firm has 10 days to appoint a new designated broker or cease real estate operations. "Where can a consumer verify a broker's current license status?" → DOL public license lookup database (the official source of truth).