WA Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Fee simple absolute

The most complete form of real property ownership; it lasts indefinitely, is inheritable, and is limited only by government powers and private encumbrances such as easements.

Statute of frauds

The rule codified in Washington at RCW 64.04 requiring that contracts for the sale of real estate be in writing and signed by the party to be charged.

Quitclaim deed

A conveyance that transfers whatever interest the grantor may hold in the property with no warranty of title; often used to clear clouds on title.

Statutory warranty deed

A Washington deed form containing statutory covenants, including seisin, right to convey, quiet enjoyment, freedom from encumbrances, and a warranty forever against lawful claims.

Race-notice recording

A recording system in which a later buyer prevails over an earlier unrecorded interest only by recording first and taking without notice of that prior interest.

Mechanic's lien priority

A construction lien that relates back to the visible commencement of work, giving it priority over later-recorded liens even though the lien claim is filed afterward.

Deed of trust

A three-party security instrument used in Washington in which a trustee holds title and may conduct a nonjudicial foreclosure sale if the borrower defaults.

Real estate excise tax

A graduated Washington tax measured by the property's selling price, customarily paid by the seller at closing and collected through the county treasurer.

Gross rent multiplier

A valuation shortcut equal to sale price divided by gross annual rental income; a lower multiplier means more income generated per dollar of purchase price.

Proration

The closing adjustment that divides ongoing costs such as property taxes, rent, and interest between buyer and seller according to days of ownership.

Easement appurtenant

A right to use neighboring land that benefits and runs with the dominant parcel, transferring automatically when that parcel is sold.

Exclusive right to sell

A listing in which the firm earns the agreed commission no matter who procures the buyer, including the seller, and which must state a definite termination date.

Open listing

A non-exclusive listing letting the seller use several brokers while paying only the broker who produces a ready, willing, and able buyer.

Buyer agency agreement

A written contract establishing the firm as the buyer's agent and defining the scope of services, the term, and how compensation is earned.

Agency relationship pamphlet

The 'Real Estate Brokerage: A Guide to Agency Relationships' pamphlet that Washington requires brokers to deliver at the earliest practical moment to explain agency choices.

Comparative market analysis

A broker's opinion of value built from recent comparable sales and active listings; it is not an appraisal and may not be presented as one.

Seller disclosure statement

Under RCW 64.06, the written form the seller of most improved residential property of one to four units must deliver to the buyer before closing.

Three-day rescission right

A buyer's right to rescind the purchase agreement within three business days after receiving a seller disclosure statement that was delivered late.

Earnest money

A good-faith deposit evidencing buyer commitment, held in the firm's trust account or by escrow and applied to the price or disbursed under the contract's forfeiture terms.

Title commitment

A title insurer's offer to issue a policy, listing requirements that must be cleared and exceptions to coverage, reviewed during the title review period.

Fair housing protected classes

Federal law bars discrimination based on race, color, religion, sex, disability, familial status, and national origin; Washington adds sexual orientation, gender identity, marital status, military status, and source of income.

Designated broker

The licensed individual who supervises a real estate firm's licensees and is accountable for the firm's compliance with Washington real estate law and rules.

Broker license requirements

In Washington an applicant must be 18, hold a high school diploma or equivalent, complete 90 clock hours of approved instruction, pass the exam, and submit fingerprints.

Managing broker license

Requires the additional 90-hour broker course plus at least three years of experience as a licensed broker, and permits supervision of other licensees.

Continuing education requirement

Washington brokers must complete 30 clock hours of approved education every two years, including required fair housing instruction, to renew an active license.

Trust account rules

Client and tenant funds must be held in a designated trust account separate from the firm's own money, with transaction records retained for three years.

Dual agency consent

A firm may represent both buyer and seller only with the written consent of both parties, and then may not advocate for either side.

Commingling

Mixing client funds with the broker's personal or business money in a trust account; Washington prohibits it and it can lead to license discipline.

Unlicensed practice penalty

Performing brokerage activity without a license violates RCW 18.85 and may result in fines, license denial or revocation, and criminal penalties.

Commission sharing rule

Washington brokers may pay commissions or referral fees only to a licensed real estate firm, never directly to an unlicensed person or another firm's licensee.

Real Estate Commission

A governor-appointed board that advises the Director of the Department of Licensing on real estate licensing, education standards, and rulemaking.

License renewal cycle

Washington real estate licenses expire every two years; licensees must pay renewal fees and show completed continuing education to remain active.