WAC 308-124H-915 Certificate of school approval +29Washington · Real Estate · English

Upon approval, a school receives a certificate containing the school's name, address, identification number, date of approval, and administrator name. No school may change its name or administrative office before receiving a new certificate from the department.

• ✓The certificate contains school name, address, ID number, approval date, and administrator name
• ✓No school may adopt or change its name or administrative office prior to receiving a new certificate from the department

Funds a licensee controls in a transaction are trust funds. Licensees must keep client funds segregated from their own. Brokers must deposit funds into the firm's trust bank account by the next banking day after receipt unless the purchase and sale agreement provides for deferred deposit/delivery. Firms keeping trust accounts must use a recognized Washington depository. A trust account is not required if the agreement directs the earnest money check directly to a named closing agent or the seller.

• ✓Client funds must be kept segregated from the licensee's own funds
• ✓Funds must be deposited into the firm's trust account by the next banking day unless deferred by agreement
• ✓No trust account is required if the agreement directs earnest money directly to a closing agent or seller

If a broker receives/maintains earnest money or client funds, the firm must maintain a pooled interest-bearing trust account (except property management trust accounts). Interest, net of service charges, is paid to the state treasurer for the Washington housing trust fund and the real estate education program account. The firm need not notify the client of the intended use of interest. The broker directs the institution to remit interest at least quarterly and transmit statements to the director of commerce.

• ✓Firms must maintain a pooled interest-bearing trust account for client funds, except property management accounts
• ✓Interest is paid to the state treasurer for the housing trust fund and real estate education account
• ✓The firm is not required to notify the client of the intended use of the funds

If trust funds are claimed by more than one party, the designated broker or delegate must promptly provide written notice to all contracting parties of intent to disburse, including party names/addresses, amount held, to whom disbursed, and a disbursement date no later than 30 consecutive days after the notification date.

• ✓Written notice of intent to disburse disputed funds must go to all contracting parties
• ✓Disbursement must occur no later than 30 consecutive days after the notification date

Every licensee must deliver signed purchase and sale agreements, listing agreements, and similar instruments to all signing parties within a reasonable time after signing. Records must be open to inspection by the director. Violations of this section, RCW 18.85.361, or chapter 18.235 RCW are grounds for disciplinary action, and the section does not relieve any licensee of obligations to safeguard client funds.

• ✓Signed transaction documents must be delivered to all signing parties within a reasonable time
• ✓Violations of the trust account section are grounds for disciplinary action

The minimum requirements for a broker's first active license renewal are proof of successful completion of 90 clock hours started after the date first licensed, from prescribed curricula approved by the real estate program, including real estate law and advanced practices, plus 30 hours of approved continuing education including the core curriculum and Washington real estate fair housing.

• ✓First active renewal requires 90 clock hours started after first licensure
• ✓Curricula must include real estate law and advanced practices
• ✓30 hours of CE including core curriculum and Washington real estate fair housing are required

Approval may be denied/withdrawn for disciplinary action against a license, falsifying records/applications, attempting to discover exam content, violating chapter 18.85 RCW, failing to cooperate, conviction of a crime within ten years, antidiscrimination law violations, awarding clock hours without completion, misrepresenting college affiliation or state endorsement, false advertising, and using unapproved substitute instructors.

• ✓Falsifying student records, clock hour certificates, or applications is grounds for denial or withdrawal
• ✓Being convicted of a crime within the preceding ten years is a ground for denial or withdrawal
• ✓A school may only state 'This school is approved under chapter 18.85 RCW' and may not claim state endorsement

The department may investigate or audit any school on its own motion or upon written complaint to determine compliance. All approved schools are subject to periodic visits by an official representative who may observe classroom/distance education activities and evaluate course content, exams, and instructor proficiency.

• ✓The department may investigate or audit any school on its own motion or upon complaint
• ✓All approved schools are subject to periodic visits by an official department representative

Upon notice of disapproval or issuance of charges, a person is entitled to a hearing under the Administrative Procedure Act (chapter 34.05 RCW). The hearing must be requested within twenty days of receipt of the notice. Aggrieved persons may seek judicial review.

• ✓A hearing must be requested within twenty days after receipt of the notice of disapproval or charges
• ✓Hearings follow the Administrative Procedure Act, chapter 34.05 RCW

Broker and managing broker licenses are kept by the firm; when they cease to represent the firm, the license ceases to be in force. Departing brokers submit written notice to the designated broker, who must notify the director and surrender the license. Failure to promptly notify the director after demand is grounds for discipline against the firm and designated broker. When a firm terminates a broker for a violation, the firm must immediately file a written statement of facts with the director.

• ✓A broker's license ceases to be in force when they cease to represent the firm
• ✓The designated broker must notify the director and surrender the license upon termination
• ✓Failure to promptly notify the director after demand is grounds for disciplinary action

An inactive license may be placed on active status pursuant to RCW 18.85.265. A broker may use a 30 clock hour course from a director-approved curriculum in advanced real estate practices or real estate law for both activation of a license inactive for three or more years and for the first renewal of an active license under WAC 308-124A-785.

• ✓Inactive licenses may be activated pursuant to RCW 18.85.265
• ✓A 30 clock hour advanced practices or real estate law course serves both activation and first renewal
• ✓This applies to licenses inactive for three or more years

Each school must maintain student records and each edition of a required publication for a minimum of five years. A student record includes school and student contact info, attendance/registration dates, completed clock hour courses and exam results, and the course evaluation form. Schools must provide a copy to the student upon request.

• ✓Schools must maintain each student's record and required publication for a minimum of five years
• ✓A student record must include attendance dates, completed courses, exam results, and course evaluation form
• ✓Schools must provide a copy of a student's record to the student upon request

It is unlawful to pay any part of a commission to a person performing brokerage services who is not licensed in any U.S. state/possession or foreign jurisdiction with a real estate regulatory program. A firm may not pay commission to a broker not licensed to the firm. Brokers may not pay part of their commission to anyone except through the firm's designated broker. A commission may be shared with a licensed manufactured housing retailer on personal property manufactured housing sold with land.

• ✓Commission may not be paid to an unlicensed person performing brokerage services
• ✓A broker may only be paid commission through the firm's designated broker
• ✓A firm may not pay commission to a broker not licensed to that firm

A licensee renewing an active license must attest to at least 30 clock hours of instruction in approved courses started within 48 months of the renewal date, subject to audit. A minimum of 15 clock hours must be completed within 24 months of the current renewal date, including three hours of prescribed core curriculum (WAC 308-124A-800) and requisite hours of Washington real estate fair housing curriculum (WAC 308-124A-802). Up to 15 clock hours beyond 30 may be carried forward to the next renewal.

• ✓Renewal requires attesting to at least 30 clock hours started within 48 months
• ✓At least 15 clock hours must be completed within 24 months of the renewal date
• ✓Three hours of core curriculum and fair housing hours are required within the 24-month window
• ✓Up to 15 clock hours may be carried forward to the next renewal

If Washington real estate fair housing education was not completed during initial qualification, renewing licensees must take the six-hour Washington real estate fair housing education. Failure to attest to successful completion of the prescribed core and fair housing curricula results in denial of license renewal. The 30 hours must include three clock hours of core curriculum and three clock hours of fair housing curriculum.

• ✓Licensees who did not complete fair housing initially must take the six-hour fair housing course
• ✓Failure to attest to core and fair housing curricula results in denial of renewal
• ✓The 30 CE hours must include three hours of core and three hours of fair housing curriculum

Continuing education courses must be started after issuance of a first license. A licensee must not go inactive to avoid CE or post-licensing requirements. Approved courses may be repeated in subsequent renewal periods. Clock hour credits are not accepted if the course is unapproved, was taken to activate an inactive license under RCW 18.85.265(3), or was submitted to satisfy broker/managing broker/reinstatement requirements. Instructors receive no credit for teaching or course development.

• ✓CE courses must be started after issuance of a first license
• ✓Licensees cannot go inactive to avoid CE or post-licensing requirements
• ✓Courses used to activate inactive licenses or satisfy other requirements are not CE-eligible
• ✓Instructors receive no clock hour credit for teaching or course development

A closing school must protect present and former students' rights. Upon cessation, it must immediately furnish the department its certificate, contact for closing arrangements, student details, and written notice to enrolled students explaining refund/continuation procedures. Refunds must be disbursed within thirty days of the last instruction day, and records must be retained by a department-approved person.

• ✓A closing school must immediately furnish its certificate of approval and student information to the department
• ✓Refunds must be disbursed to enrolled students within thirty days from the last day of instruction
• ✓A closing school must arrange for a department-approved person to retain records required under WAC 308-124H-935

Instructor approval by the department is required before offering courses for clock hour credit. Applications use department forms and are approved on commission criteria; only complete applications are approved. Instructor approval expires two years after the effective date, and applicants must identify the specific topic areas they propose to teach.

• ✓Instructor approval is required prior to the date the course is offered for clock hour credit
• ✓Instructor approval expires two years after the effective date of approval
• ✓Applicants must identify the specific subject matter topic areas they propose to teach

A licensee must submit evidence of at least three clock hours of director-approved core curriculum CE. Core curriculum is a specific course of study recommended by the real estate commission providing practical information on contemporary real estate issues. It may be a separate three-hour course or three hours within an approved 30-or-less clock-hour course, and must be completed within 24 months of the renewal date. Core curriculum commenced within 36 but more than 24 months prior does not count toward the core requirement but may apply as regular CE credit.

• ✓At least three clock hours of director-approved core curriculum are required
• ✓Core curriculum must be completed within 24 months of the renewal date
• ✓Core curriculum can be standalone or embedded in a larger approved course
• ✓Core taken 24-36 months prior counts only as regular CE, not toward the core requirement

Remittances received by the state treasurer from broker trust accounts are divided: 75% to the housing trust fund (RCW 43.185A.130) and 25% to the real estate education program account (RCW 18.85.321).

• ✓Trust account interest is split 75% to the housing trust fund
• ✓25% goes to the real estate education program account

The real estate education program account is created in the custody of the state treasurer, funded by interest remittances and fines imposed under the chapter. Funds may be spent only on the director's authorization for real estate education programs described in RCW 18.85.041(6), subject to appropriation under chapter 43.88 RCW.

• ✓The account is funded by interest remittances and fines under the chapter
• ✓Funds may be used only for real estate education programs

It is unlawful to act as a broker, managing broker, or firm without first obtaining a license. No suit may be brought to collect compensation as a broker/firm/managing/designated broker without alleging and proving the plaintiff was duly licensed before offering to perform any real estate transaction or procuring any promise or contract for payment.

• ✓Acting as a broker or firm without a license is unlawful
• ✓A plaintiff must prove they were licensed before offering to perform the transaction to sue for commission

Washington real estate fair housing curriculum is a director-approved specific course of study introducing brokers and managing brokers to the federal Fair Housing Act (42 U.S.C. 3601 et seq.) and the Washington law against discrimination (chapter 49.60 RCW) as they relate to real estate transactions. The department prescribes the curriculum outline used to develop the curriculum for approval.

• ✓The fair housing curriculum covers the federal Fair Housing Act and chapter 49.60 RCW
• ✓The course applies these laws to real estate transactions
• ✓The department prescribes the curriculum outline for approval

An instructor with no changes to the original application is approved upon renewal form and fee. With changes, a full application and fees are required. Submitting a renewal at least thirty days before expiration keeps previous approval in effect until action is taken.

• ✓Instructors with no changes renew with a renewal form and required fee; changes require a full application and fees
• ✓Submitting a renewal at least thirty days before expiration keeps previous approval in effect until action is taken

Upon approval, an instructor receives a certificate containing the instructor's name, date of approval, department identification number, and the subject matter topic areas the instructor is approved to teach.

• ✓The certificate contains the instructor's name, approval date, department ID number, and approved topic areas
• ✓The certificate specifies the subject matter topic areas the instructor is approved to teach

Each instructor must demonstrate subject matter competency per commission guidelines and be qualified in instruction techniques. Qualification can be shown by 150 classroom hours within two years, the DREI designation from REEA, an approved instructor training course plus two years experience, a bachelors/advanced degree in education with teaching or real estate experience, a current teaching certificate, 90 clock hours as a real estate instructor, 90 hours at a higher learning institution, or selection by an approved national/state association.

• ✓Instructors must demonstrate subject matter competency and be qualified in techniques of instruction
• ✓Qualification methods include 150 classroom hours in two years, the DREI designation, an approved instructor training course with experience, or a relevant degree/teaching certificate
• ✓At least ninety clock hours as a real estate instructor within two years is one acceptable qualification

The director must immediately suspend the license of a broker/managing broker certified by DSHS as not in compliance with a support or visitation order. If all other reinstatement requirements are met during suspension, reissuance is automatic upon the director's receipt of a DSHS release stating compliance.

• ✓A license is immediately suspended upon DSHS certification of support-order noncompliance
• ✓Reissuance is automatic upon receipt of a DSHS compliance release

The address on the designated broker's endorsement is the location where the designated broker is the managing broker. The real estate program registers each firm's address where the designated broker accepts endorsement from other firms.

• ✓The endorsement address is where the designated broker serves as managing broker
• ✓The real estate program registers firm addresses for endorsements from other firms

In addition to unprofessional conduct under RCW 18.235.130, the director may discipline for: violating the chapter or rules or chapters 64.36, 19.105, 18.235 RCW or RCW 18.86.030; false statements/advertising; material fraud, misrepresentation, concealment, or collusion; using unlicensed brokers; conversion of trust funds; failing to disclose information on demand; and continuing objectionable sales plans.

• ✓Knowingly committing fraud, misrepresentation, or concealment is grounds for discipline
• ✓Conversion of trust funds is grounds for discipline; failure to return within 30 days after demand is prima facie evidence
• ✓Failing to disclose information or produce records on demand is grounds for discipline

Grounds include advertising without the firm's licensed name in a clear and conspicuous manner (brokers advertising personally owned property need only disclose they hold a license); accepting non-cash earnest money without disclosing to the owner before acceptance and showing it in the agreement; charging compensation from more than one party without full written disclosure to all; and accepting undisclosed commissions, rebates, or profits on expenditures for the principal.

• ✓Advertising must include the firm's licensed name clearly and conspicuously
• ✓Non-cash earnest money must be disclosed to the owner before acceptance and shown in the agreement
• ✓Dual compensation requires full written disclosure to all parties

Grounds include contingent-fee appraisals; issuing a report on property in which the broker has an undisclosed interest; misrepresenting association membership; discrimination in hiring or brokerage activity; failing to keep escrow/trustee records for three years; a firm/designated broker failing to preserve records three years; failing to furnish copies of contracts to signatories; accepting compensation from anyone other than the firm; undisclosed kickbacks for financing/escrow referrals; buying/selling/leasing without disclosing licensee status; and failing to supervise.

• ✓Escrow/trustee records must be kept for three years
• ✓Discrimination in brokerage activity under any antidiscrimination law is grounds for discipline
• ✓Buying, selling, or leasing without disclosing in writing that one is a licensee is prohibited

Grounds also include any conduct in a transaction demonstrating bad faith, dishonesty, untrustworthiness, or incompetence; acting as a vehicle dealer without a license; and failing to ensure title is transferred under chapter 46.12 RCW in a mobile/manufactured home transaction.

• ✓Bad faith, dishonesty, or incompetence in a transaction is grounds for discipline
• ✓In a mobile/manufactured home transaction, the licensee must ensure title is properly transferred

The department can deny, suspend, or reject a firm or assumed name if it is derogatory, similar or the same as another licensed firm name, implies the firm is a public agency or part of government, implies a not-for-profit organization, or implies a research organization.

• ✓Names that are derogatory or duplicate existing licensed firm names may be rejected
• ✓Names implying government, not-for-profit, or research organizations may be rejected
• ✓The department may deny, suspend, or reject firm and assumed names

Names deemed similar include using a different corporate designator (Corp., Co., Inc., Ltd.), adding/deleting an article/conjunction, using a plural, adding a geographic designator, abbreviating a word, or substituting a symbol for a word. Using terms like 'realty,' 'real estate,' 'group,' 'realtors,' or 'firm' may be deemed similar. A firm shall not advertise using an unlicensed name; a bona fide franchisee may use the franchisor's name with the franchisee's firm name.

• ✓Minor variations like designators, plurals, or symbols may be deemed similar names
• ✓A firm shall not advertise using a name not licensed by the department
• ✓A bona fide franchisee may use the franchisor's name with the franchisee's firm name

Changes in course instructors may be made only if the substitute instructors are currently approved to teach the course pursuant to WAC 308-124H-525.

• ✓Substitute instructors must be currently approved to teach the course
• ✓Instructor changes are permitted only under the approval requirements of chapter 308-124H WAC

A topic area expert may be used as a guest lecturer to assist an approved instructor with an approved course. The approved instructor remains responsible for supervision. Guest lecturers cannot circumvent instructor approval requirements, are limited to fifteen minutes per clock hour, and can only be used when the approved instructor is present.

• ✓Guest lecturers are limited to no more than fifteen minutes per clock hour
• ✓Guest lecturers can only be used when the approved instructor is present
• ✓Guest lecturers shall not be used to circumvent instructor approval requirements

Approval may be denied/withdrawn for disciplinary action against a license, falsifying records/applications, attempting to discover exam content, violating chapter 18.85 RCW, failing to cooperate, conviction of a crime, antidiscrimination violations, awarding clock hours without completion, misrepresenting college affiliation or state endorsement, false advertising, and failing to teach consistent with approved content.

• ✓Falsifying student records, clock hour certificates, or applications is grounds for denial or withdrawal
• ✓Conviction of a crime is a ground for instructor denial or withdrawal (no ten-year limitation as with schools)
• ✓Failing to teach a course consistent with approved content or curriculum is grounds for withdrawal

The department may investigate or audit any instructor on its own motion or upon written complaint to determine compliance. All approved instructors are subject to periodic visits by an official representative who observes classroom activities and evaluates course content and instructor proficiency.

• ✓The department may investigate or audit any instructor on its own motion or upon complaint
• ✓All approved instructors are subject to periodic visits by an official department representative

Upon notice of disapproval or issuance of charges, a person is entitled to a hearing under the Administrative Procedure Act (chapter 34.05 RCW). The hearing must be requested within twenty days of receipt. Aggrieved persons may seek judicial review.

• ✓A hearing must be requested within twenty days after receipt of the notice of disapproval or charges
• ✓Hearings follow the Administrative Procedure Act, chapter 34.05 RCW

The hearing officer keeps a transcript and certifies it as true. If the director finds the accusation is not proved by a fair preponderance of evidence, the case is dismissed. If the evidence supports the accusation by a preponderance, the director may impose sanctions under RCW 18.85.041 and enter an order.

• ✓The standard of proof is a preponderance of the evidence
• ✓If the accusation is not proved by a preponderance, the case is dismissed

To appeal to superior court, the appellant must give a $1,000 cash bond to the state, filed with the court clerk, with the bond and notice filed within 30 days of the director's decision. The director prepares and certifies a transcript at the appellant's expense; the appellant must pay the transcript cost within 15 days of notice or the appeal is dismissed.

• ✓A $1,000 cash bond and notice must be filed within 30 days of the director's decision
• ✓Transcript cost must be paid within 15 days or the appeal is dismissed

To change designated brokers, submit a statement signed by both the outgoing and incoming designated broker listing all outstanding client trust liabilities, pending transactions, and certifying that sufficient funds are in trust to meet client trust liabilities.

• ✓A statement signed by both outgoing and incoming designated brokers is required
• ✓The statement must list outstanding client trust liabilities and pending transactions
• ✓It must certify sufficient funds are in trust to meet client trust liabilities

Any person acting as a broker, managing broker, or firm without a license, or violating any provision of the chapter, is guilty of a gross misdemeanor. The uniform regulation of business and professions act (chapter 18.235 RCW) governs unlicensed practice, license issuance/denial, and discipline.

• ✓Unlicensed practice or violating the chapter is a gross misdemeanor
• ✓Chapter 18.235 RCW governs unlicensed practice and discipline

The director may refer complaints to any court of competent jurisdiction. County prosecutors prosecute violations, and the director may request the attorney general if a prosecutor fails to act. The director may seek an injunction in superior court against violators and may petition for immediate appointment of a receiver to take over, operate, or close a real estate office operating in violation, pending a hearing.

• ✓The director may seek an injunction against violators in superior court
• ✓The director may petition for a receiver to take over or close an offending real estate office

Application fees accompany each application. School and instructor approvals last two years; course approvals (except core) last four years. Course content fee is $7.60/clock hour (minimum $76 per core course) or $15.20/clock hour (minimum $152 for non-core courses); the 60-hour fundamentals course fee is $456. School approval is $380. Disapproved applications may be resubmitted at no additional fee.

• ✓School and instructor approvals last two years; course approvals last four years (except the core course)
• ✓School approval fee is $380; the 60 clock hour real estate fundamentals course fee is $456
• ✓Applications submitted and disapproved may be resubmitted at no additional fee

Instructor fees are: $76 to teach a specific course on one occasion; $114 to teach as many subject areas as requested at initial application (valid two years); and $38 for each application to teach additional subject areas not requested at initial application or renewal, valid for the remainder of the two-year period.

• ✓Approval to teach as many subject areas as requested at initial application costs $114 for two years
• ✓Approval to teach a specific course on one occasion costs $76
• ✓Adding subject areas after initial application costs $38 each, valid for the remainder of the two-year approval period

Designated brokers are responsible for providing the department a closing firm affidavit when closing the firm.

• ✓Designated brokers must provide a closing firm affidavit when closing the firm
• ✓This responsibility falls specifically on the designated broker

A $20 fee is assessed on each broker/managing broker original license and each renewal (including inactive), expiring September 30, 2035. Receipts fund the Washington real estate research account, used for a real estate research center that conducts affordable housing studies, disseminates research, supports the commission, and educates licensees and consumers.

• ✓A $20 research fee applies to original and renewal broker/managing broker licenses
• ✓The fee and research center provisions expire September 30, 2035

After July 1, 2010, salesperson licenses are recognized as broker's licenses, and associate broker's, branch manager's, and designated broker's licenses are recognized as managing broker's licenses. Licensees had to take an approved transition course by their first renewal after July 1, 2010, retaining their existing renewal dates.

• ✓Former salesperson licenses became broker's licenses after July 1, 2010
• ✓Former associate/branch/designated broker licenses became managing broker's licenses

An applicant with military training or experience satisfies the chapter's training or experience requirements unless the director determines the training/experience is not substantially equivalent to Washington's standards.

• ✓Military training/experience can satisfy training or experience requirements
• ✓The director may deny credit if the military training is not substantially equivalent

A course completed in another jurisdiction may be approved for clock hour credit if it was offered by a tax-supported public technical/community college or institution of higher learning and the director determines it substantially satisfies general course approval requirements; or it was approved to satisfy a licensing/renewal education requirement and offered by an approved entity in that jurisdiction; or the director determines it substantially satisfies general requirements consistent with chapter intent.

• ✓Courses from tax-supported public institutions may be approved if they meet general requirements
• ✓Courses approved and offered by an approved entity in that jurisdiction may qualify
• ✓The director may approve courses that substantially satisfy general requirements consistent with chapter intent