Material facts known to the broker must be disclosed to the parties.
Before you read
Test yourself first: 5 questions
Question 1 of 5
A Washington broker deposits an earnest money check into the broker's personal checking account 'just temporarily' until the transaction closes. This conduct is BEST described as:
Answer: A. Mixing client or trust funds (such as earnest money) with the broker's own personal or business funds is commingling, which is prohibited under Washington license law. Earnest money must be handled through a proper trust/escrow account, and commingling can result in disciplinary action regardless of whether the funds were later returned.
Question 2 of 5
In Washington, where must a broker's earnest money and client trust funds generally be deposited?
Answer: B. Trust funds such as earnest money must be held in a designated trust/escrow account kept separate from the firm's operating funds; commingling is prohibited.
Question 3 of 5
After receiving the seller's completed Form 17, a Washington buyer generally has a statutory right to do what?
Answer: B. Once the buyer receives Form 17, the buyer has a statutory rescission window (commonly three business days) to disapprove the disclosures and rescind the agreement.
Question 4 of 5
When a Washington broker holds earnest money or other client funds, where must those funds be deposited?
Answer: C. Client funds such as earnest money must be held in a designated trust/escrow account, kept separate from the firm's operating funds; commingling is prohibited.
Question 5 of 5
In Washington, which license is required to supervise and manage other licensees in a brokerage firm?
Answer: B. A Managing Broker holds the supervising license in Washington and may manage a brokerage office and oversee brokers.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Form 17 (Seller Disclosure Statement) must be delivered to the buyer in most residential sales.
- After receiving Form 17, the buyer generally has 3 business days to rescind unless waived.
- Federal lead-based paint disclosure applies to housing built before 1978.
- Material facts known to the broker must be disclosed to the parties.
- Trust/client funds must be deposited promptly and kept in a designated trust account, not commingled.
- Washington is a community property state, affecting how married spouses hold and convey title.
- The agency law disclosure pamphlet must be provided to buyers and sellers as required.
- Records of transactions and trust-account activity must be retained for the period set by DOL rules (3 years).
Washington Required Disclosures & Escrow/Trust Timeframes Quick Sheet: FAQs
Is Washington Required Disclosures & Escrow/Trust Timeframes Quick Sheet on the real estate exam?
Yes. State License Law is a scored domain on the Washington real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Washington test this differently?
Washington applies its own license law on top of the national portion. This page covers the Washington rules specifically, which is what the state section of your exam tests.
