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Practice Of Real EstateLicense_lawHARD

Sophia completed her Washington broker pre-license education and passed the PSI exam. She submitted her license application to the DOL but has not yet received her license. A friend asks Sophia to help negotiate the purchase of a home and promises to pay her $500 for her assistance. Under Washington law, which of the following best describes Sophia's legal situation if she assists her friend before receiving her license?

Correct Answer

C) Sophia is engaging in unlicensed real estate activity, which is prohibited under RCW 18.85 regardless of whether she accepts compensation

Under RCW 18.85.011 and RCW 18.85.361, performing real estate brokerage activities — including negotiating the purchase of real property on behalf of another person — requires an active, issued Washington real estate license. A pending application does not constitute authorization to practice. Sophia's license has not yet been issued by the DOL, so any brokerage activity she performs, whether compensated or not, constitutes unlicensed practice in violation of RCW 18.85. Unlicensed practice can result in civil penalties and criminal liability.

Answer Options
A
Sophia may assist her friend because she has passed the exam and her license is pending, which constitutes implied authorization under RCW 18.85
B
Sophia may assist her friend without compensation but may not accept the $500 payment until her license is issued
C
Sophia is engaging in unlicensed real estate activity, which is prohibited under RCW 18.85 regardless of whether she accepts compensation
D
Sophia may assist her friend because helping a personal acquaintance negotiate a purchase is exempt from Washington's licensing requirements

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Related Topics & Key Terms

Key Terms:

unlicensed_practicepending_licenselicense_requiredbrokerage_activityRCW_18.85

Related Concepts

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

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