Victor is a Washington real estate Broker who operates a sole proprietorship under a trade name without any other affiliated licensees. He has been conducting real estate business under this arrangement for two years. Under RCW Chapter 18.85, which of the following most accurately describes whether Victor's arrangement is permissible and what license he must hold?
Correct Answer
B) Victor's arrangement requires him to hold a Designated Broker license, because any individual operating a real estate business — including a sole proprietorship — must be licensed as a Designated Broker to be the responsible party for the firm.
Under RCW 18.85, any individual who operates a real estate business — including as a sole proprietor — must hold a Designated Broker license and register the firm with the DOL. Even a one-person operation constitutes a 'firm' under Washington law, and the responsible individual must be licensed as a Designated Broker. A standard Broker license does not authorize independent operation of a real estate business. Victor has been operating improperly if he holds only a Broker license.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
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- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
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- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
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