2010 License Law Changes

On July 1, 2010, the new real estate license law (RCW 18.85) goes into effect, and your real estate licensing requirements will change. It is very important for you to understand what the new law means to you.

As of July 1, 2010:

* A salesperson license will continue to be in effect, but will be considered a broker license.
* An associate broker, branch manager, or designated broker license will continue to be in effect, but will be considered a managing broker license.
* All current licensees will be required to take a 3 clock-hour Transition Course (now available!) prior to their first renewal after July 1, 2010. After this renewal, licensees will be issued new licenses (i.e., a salesperson will be issued a broker's license, and a broker will be issued a managing broker's license).
* You will have to undergo fingerprint and background checks every six years.
* You will have to meet the following new requirements to get a license:
o For a broker's license, you must:
+ be at least 18 years old;
+ have a high school diploma or equivalent;
+ complete 90 hours of education (a 60 clock-hour Real Estate Fundamentals course and a 30 clock-hour Real Estate Practices course) within the two years prior to taking the licensing examination. (Now available!)
+ pass the real estate broker licensing examination; and
+ complete a fingerprint background check through the Washington State Patrol and the FBI.
o For a managing broker's license, you must:
+ be at least 18 years old;
+ have a high school diploma or the equivalent;
+ have three years' full-time experience as a real estate broker;
+ complete 90 hours of education (including a 30 clock-hour Real Estate Broker Management, a 30 clock-hour Business Management, and a 30 clock-hour Advanced Real Estate Law) within the three years prior to taking the managing broker examination; and
+ pass the managing broker licensing examination.
* If you were first licensed on or after July 1, 2010, you will have to complete the following for your first renewal:
o 30 clock-hour course in Advanced Real Estate Practices,
o 30 clock-hour course in Real Estate Law, and
o 30 clock-hour elective course, including 3 hours of Core.

Note: those licensed on or after July 1, 2010, do not need to take the Transition course for their first renewal.

Here are some other important changes that will take effect on July 1, 2010:

* New licensees will be subject to heightened supervision by their managers for two years.
* Only managing brokers can have supervisory authority. (Thus, team leaders must be managing brokers.) All delegations of authority must be in writing and signed by the designated broker and managing broker.
* A real estate firm will be separately licensed.
o The firm's designated broker (who is responsible for all of the firm's actions) must have a controlling interest in the firm.
o All advertising must include the firm name or assumed (DBA) name as licensed.
o Listings (and other brokerage services contracts) are the property of the firm, not the individual licensee who signs the documents.
o Firms may use more than one assumed name approved by the department when conducting their real estate activities.
* A managing broker may be the designated broker for more than one firm at a time.
* The definition of "business opportunity" is clarified so that a real estate license is only required if the business opportunity includes an interest in real property.