Washington State Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

A real estate broker is considered to have entered into a property management agreement when both parties sign the written property management contract. This is because a written contract provides a formal and legally binding agreement outlining the rights, responsibilities, and terms between the property owner and the real estate broker.

Having a signed agreement ensures that both parties have agreed on the specific terms of management, including services to be provided, fees, and duration of the contract, which are all essential components of a legally enforceable agreement. In real estate practice, written contracts are crucial since they serve as evidence of the agreement and can protect both parties in the event of a dispute.

Other scenarios, such as a verbal agreement or a payment being made, do not provide the same level of legal certainty or clarity. While a verbal agreement might indicate an understanding, it lacks the enforceability of a written contract and can lead to misunderstandings. Furthermore, the completion of training by the broker does not relate to the contractual relationship between the broker and the property owner; it merely indicates that the broker may be qualified but does not establish an agreement.