A Washington broker contract in 2026 says a $1,200 fee is earned on best efforts whether or not a loan is obtained. May the broker earn this best-efforts fee when no loan is obtained?
Correct Answer
D) Prohibited: a best efforts fee with no loan obtained is barred
A person subject to the chapter may not solicit or enter into a contract with a borrower providing in substance that the broker may earn a fee or commission through best efforts to obtain a loan even though no loan is actually obtained. Other choices: explaining the clause is not what makes it lawful; a refund on withdrawal leaves the clause in place for other outcomes; and the quality of the effort is not the test. Source: RCW 19.146.0201(4)
Why This Is the Correct Answer
A person subject to the chapter may not solicit or enter into a contract with a borrower providing in substance that the broker may earn a fee or commission through best efforts to obtain a loan even though no loan is actually obtained. Other choices: explaining the clause is not what makes it lawful; a refund on withdrawal leaves the clause in place for other outcomes; and the quality of the effort is not the test. Source: RCW 19.146.0201(4)
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