Kevin applies for a Washington broker license and discloses on his application that he was convicted of felony fraud five years ago. He has completed his sentence and parole. The DOL reviews his application. Under RCW Chapter 18.85, which of the following statements best describes how the DOL will handle this application?
Correct Answer
B) The DOL will review the conviction using a nexus test, considering whether the crime is substantially related to the practice of real estate
Under RCW 18.85 and consistent with Washington's Uniform Disciplinary Act (RCW 18.235), the DOL does not automatically deny a license based solely on a criminal conviction. Instead, the DOL applies a nexus test, evaluating whether the nature of the crime is substantially related to the qualifications, functions, or duties of a real estate licensee. Factors such as the seriousness of the offense, the time elapsed, and evidence of rehabilitation are also considered. Fraud is directly related to real estate practice, so Kevin's application would receive careful scrutiny.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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