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Kevin, a Washington real estate broker, is representing a seller. During negotiations, Kevin tells the buyer that the home has never had any roof leaks, even though Kevin knows the seller disclosed a past roof leak to him in confidence. When the buyer later discovers the leak history, the buyer files a complaint with the DOL. Under RCW 18.85, which ground for disciplinary action most directly applies to Kevin's conduct?

Correct Answer

B) Engaging in misrepresentation or fraud in a real estate transaction

Under RCW 18.85.361, misrepresentation or fraud in a real estate transaction is an explicit ground for license suspension or revocation. Kevin knowingly made a false statement about the property's condition to the buyer, which constitutes misrepresentation regardless of any agency duties owed.

Answer Options
A
Commingling client funds with personal funds
B
Engaging in misrepresentation or fraud in a real estate transaction
C
Failing to maintain a trust account as required by law
D
Practicing real estate without a valid license

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Related Topics & Key Terms

Key Terms:

misrepresentationfrauddisciplinary_groundsbroker_conductRCW_18.85

Related Concepts

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.

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

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