Washington Contracts
Practice Questions & Answers (2026)
Contract law questions on the Washington real estate exam test both general contract principles and Washington-specific transaction requirements. The Washington Department of Licensing tests how Washington contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Washington law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong WA-specific timeframe or rule.
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Washington Contracts — Practice Questions & Answers
111 questions on Contracts from the Washington real estate question bank. First 10 are free — sign up to unlock all 111.
Q1. The standard real estate purchase and sale agreement used in Washington State is commonly known as:
Explanation
The Northwest Multiple Listing Service (NWMLS) Form 21, the Residential Purchase and Sale Agreement, is the standard purchase contract widely used in Washington State.
Q2. In Washington State, an earnest money agreement is legally binding when:
Explanation
A Washington purchase and sale agreement becomes a binding contract when both parties have signed (mutual assent) and acceptance has been communicated to the offeror.
Q3. A Washington seller accepts the buyer's offer but changes the closing date. This is legally:
Explanation
Any change to the terms of an offer, even a minor one like the closing date, constitutes a counteroffer. The original offer is terminated, and the seller becomes the offeror on new terms.
Q4. In Washington, the financing contingency in a purchase and sale agreement typically allows the buyer to:
Explanation
A financing contingency protects the buyer by allowing termination without penalty if the buyer is unable to obtain financing on the specified terms (loan amount, interest rate, and loan type) by the deadline.
Q5. Under Washington contract law, specific performance is a remedy typically sought when:
Explanation
Specific performance compels the breaching party to perform contractual obligations. Courts may grant it in real estate cases because each parcel of land is unique and money cannot adequately substitute.
Q6. A Washington buyer discovers after signing a purchase agreement that the seller made a material misrepresentation. The buyer's remedy may include:
Explanation
A buyer may seek rescission (cancellation) of the contract when the seller made a material misrepresentation. The buyer could also seek damages in a civil action.
Q7. In Washington, an offer to purchase real property must be in writing to be enforceable under the:
Explanation
The Statute of Frauds requires contracts for the sale of real property to be in writing and signed by the party to be charged in order to be legally enforceable.
Q8. A buyer submits an offer with an earnest money check of $10,000. The seller's broker must:
Explanation
In Washington, earnest money must be handled according to the purchase and sale agreement's terms — typically held uncashed until acceptance or deposited in the firm's trust account. Premature deposit can be a trust account violation.
Q9. A Washington purchase and sale agreement includes an inspection contingency. The buyer's inspection reveals a cracked foundation. The buyer may:
Explanation
An inspection contingency in Washington gives the buyer the right to terminate the contract with earnest money refunded if the inspection reveals unsatisfactory conditions, or to negotiate a repair/price reduction with the seller.
Q10. A Washington seller receives two offers simultaneously. The seller may legally:
Explanation
In Washington, a seller may accept one offer and negotiate a backup position with the other buyer. The seller cannot accept two binding offers for the same property simultaneously.
Q11. In Washington, time is of the essence clauses in purchase agreements mean:
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