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Practice Of Real EstateLicense_lawMEDIUM

After passing her broker exam, Lisa submits her Washington license application and lists her Designated Broker as Tom, who operates ABC Realty. Two weeks later, Tom's Designated Broker license is revoked by the DOL. What happens to Lisa's broker license as a direct result of Tom's revocation?

Correct Answer

B) Lisa's license is placed on inactive status until she affiliates with a new Designated Broker

Under RCW 18.85, when a Designated Broker's license is revoked or otherwise terminated, the brokers affiliated under that Designated Broker cannot continue to practice real estate. Their licenses are placed on inactive status. Lisa must affiliate with a new, licensed Designated Broker to reactivate her license and resume practice. Her license itself is not revoked — she has done nothing wrong — but she cannot practice without a supervising Designated Broker.

Answer Options
A
Lisa's license is also automatically revoked because she was affiliated with a revoked Designated Broker
B
Lisa's license is placed on inactive status until she affiliates with a new Designated Broker
C
Lisa's license remains active for 90 days to allow her to complete pending transactions
D
Lisa's license is suspended pending a DOL investigation into her own conduct

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Related Topics & Key Terms

Key Terms:

designated_brokerinactive_statuslicense_affiliationrcw_18_85revocation

Related Concepts

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.

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

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