WA Real Estate cheat sheet

Fee simple absolute is the most complete estate: indefinite duration, inheritable, and subject only to government powers (taxation, eminent domain, police power, escheat) and private encumbrances.

A valid deed requires a competent grantor, a named grantee, words of conveyance, a legal description, the grantor's signature, and delivery plus acceptance. Recording affects priority, not validity between the parties.

Washington is a lien-theory state; lenders normally secure loans with deeds of trust foreclosed nonjudicially by a trustee's sale rather than through a court action.

The Washington recording statute (RCW 65.08.070) is race-notice: a later purchaser defeats a prior unrecorded interest only by recording first and taking without notice of that interest.

General liens (judgment, income tax) attach to all of a debtor's property; specific liens (mortgage, mechanic's lien) attach to one parcel. A mechanic's lien relates back to the visible commencement of work.

Real estate excise tax is a graduated tax on the seller measured by sale price, collected at closing; cities and counties may add local rates on top of the state rate.

Proration formula: (annual amount / 365) x days of ownership, or the contractual 12-month/30-day method; taxes, rent, and interest are split at closing based on the closing date.

Gross rent multiplier = sale price / gross annual rent. Capitalization rate = net operating income / sale price. Both are income-approach shortcuts.

Property tax is assessed against value times the levy rate; the tax lien attaches January 1 and taxes are paid in arrears the following year.

Exclusive right to sell: the firm is paid regardless of who procures the buyer, including the seller. Exclusive agency: the seller keeps the right to sell without paying. Open listing: only the procuring broker is paid. Every listing must be written and have a definite termination date.

A buyer agency agreement defines the firm's scope of service, term, and how compensation is earned; without a written agreement the firm may owe only the statutory minimum duties.

Washington requires delivery of the 'Real Estate Brokerage: A Guide to Agency Relationships' pamphlet at the earliest practical moment so the party can make an informed agency choice (RCW 18.86).

A comparative market analysis or broker price opinion is not an appraisal; appraisals require a state-certified or state-licensed appraiser under RCW 18.140.

Purchase and sale essentials: parties, legal description, price, financing terms, earnest money, closing date, title review period, inspection contingency, and signatures.

Earnest money is deposited within the period stated in the contract, typically into the firm's trust account or with escrow, and is applied to price or disbursed per the forfeiture terms.

Under RCW 64.06 the seller of most improved residential property of one to four units must deliver a written seller disclosure statement; late delivery gives the buyer three business days to rescind.

Title review: the buyer examines the title commitment, which lists requirements to clear and exceptions to coverage, then orders an owner's policy and a lender's policy.

Fair housing: federal protected classes are race, color, religion, sex, disability, familial status, and national origin; Washington adds sexual orientation, gender identity, marital status, military status, and source of income.

Licensing authority: the Department of Licensing, Real Estate Program, administers RCW 18.85 and WAC 308-124; the governor-appointed Real Estate Commission advises the Director.

Broker license qualifications: at least 18 years old, high school diploma or equivalent, 90 clock hours of approved real estate fundamentals instruction, fingerprint background check, passing exam score, and errors and omissions insurance.

Managing broker license: the additional 90-hour broker course plus at least three years of experience as a licensed broker; a managing broker may supervise other licensees.

Renewal: licenses run on a two-year cycle; active renewal requires 30 clock hours of approved continuing education, including required fair housing instruction.

Trust funds: money belonging to others must go into a designated trust account, never commingled with the firm's own funds, and transaction records must be retained for three years.

Dual agency is permitted only with the written consent of both parties; the firm then acts as a dual agent and may not advocate for either party or reveal one party's confidential information to the other.

Advertising must show the licensed firm name, and a licensee may not advertise a listed property without the seller's authorization.

Commissions may be paid only to a licensed real estate firm; paying a referral fee or commission to an unlicensed person is prohibited.

Violations of RCW 18.85 expose a licensee to Department of Licensing sanctions, including fines, suspension, revocation, and denial of renewal.