Washington State Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Washington State Real Estate Exam with detailed flashcards and multiple choice questions, each with hints and explanations. Master the material and ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the primary purpose of a real estate trust account?

To hold funds belonging to clients or third parties separately from the broker’s funds
To maintain the broker's operational expenses
To serve as a savings account for future investments
To track commission earnings from each sale

The correct answer is: To hold funds belonging to clients or third parties separately from the broker’s funds

The primary purpose of a real estate trust account is to hold funds belonging to clients or third parties separately from the broker’s funds. This practice is essential in real estate transactions to ensure that client funds are safeguarded and not co-mingled with the broker's personal or operational funds. By maintaining a trust account, real estate professionals follow legal and ethical standards, protecting the interests of clients and adhering to fiduciary responsibilities. This separation of funds helps prevent any potential misuse of client money and provides a clear record for accounting and auditing purposes. Other options, while they address financial aspects, do not reflect the fundamental objective of a real estate trust account. Having operational expenses covered by a separate account is typical for businesses, and using trust accounts specifically for saving or tracking commissions does not align with the regulatory purpose of these accounts, which is solely to protect client funds.