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WA License Law

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WA LICENSE LAW — EXAM CHEAT SHEET

REGULATORY STRUCTURE

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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 ``

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HIGH-YIELD TRAPS

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AuthorityRoleKey Point
DOL (Department of Licensing)Issues, suspends, revokes licenses; enforcesActual regulatory power
Real Estate CommissionAdvisory only (5 brokers + 1 public)NO independent enforcement
RCW 18.85Primary statute—who must license, discipline groundsGo-to law
WAC 308-124Procedural rules, record-keeping, trust accountsImplementation detail
TrapCorrect 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).

Aligned to the Washington DOL broker exam outline.

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