DC Real Estate cheat sheet

Brokerage relationships are governed by D.C. Code Title 42, Chapter 17; licensing of brokers, salespersons, and property managers falls under Title 47.

The DC Real Estate Commission sits within the Department of Licensing and Consumer Protection (DLCP, formerly DCRA) and both licenses and disciplines practitioners.

Available sanctions range from reprimand and civil fines to suspension or revocation; the Commission may also seek injunctions against unlicensed brokerage activity.

DC real estate licenses run on a two-year renewal cycle, and renewal requires completion of the continuing education hours the Commission specifies.

Managing rental property for another person for compensation requires a DC broker or property manager license.

All advertising must show the brokerage's licensed name; false, misleading, or unlicensed-service advertising is a disciplinary ground.

Money belonging to others (earnest money, rents, security deposits) must be held in a separate escrow or trust account and accounted for; commingling is prohibited.

Commission rules are published in the DC Municipal Regulations and are enforced alongside the statute; violations support license discipline even absent a private lawsuit.

A license is required to list, sell, buy, exchange, rent, or negotiate for compensation on behalf of another person.

Salespersons must be affiliated with and supervised by a licensed broker, and all compensation they earn must be paid through that broker.

The employing broker must supervise affiliated licensees' real estate activity and is accountable to the Commission for their licensed conduct.

Licensees must notify DLCP promptly of changes in legal name, business address, or broker affiliation.

Paying commissions, referral fees, or other brokerage compensation to an unlicensed person is prohibited and is grounds for discipline.

A licensee who transacts for their own account must disclose licensed status in writing to all parties before contract formation.

Assumed or team names must be registered with DLCP and must not obscure the licensed brokerage name on signage and advertising.

Grounds for denial or discipline include unlicensed practice, fraud or misrepresentation, failure to account for funds, and conviction of crimes involving moral turpitude.

DC brokerage-relationship disclosure must be given in writing before the consumer signs a brokerage agreement, identifying the agency options offered.

An agency relationship with a DC licensee must be established in writing and must state the services, the term, and the compensation terms.

Dual agency is lawful only with the informed written consent of all parties; a dual agent must remain neutral, may not advocate for one side, and must protect both parties' confidences.

Fiduciary duties owed to a client: care, obedience, loyalty, disclosure, confidentiality, accounting, and reasonable skill and diligence.

Material adverse facts known to the licensee and not apparent to the client must be disclosed to the client.

Confidentiality survives termination of the brokerage relationship except where disclosure is required by law or the client consents.

A buyer working with the seller's agent is a customer, not a client; the seller's agent may assist the buyer with paperwork but owes fiduciary duties only to the seller.

A licensee may not acquire an interest in a client's property or buy a listing held by their own firm without written disclosure and the client's consent.

Listing types: exclusive right to sell (commission due whoever procures the buyer), exclusive agency (seller retains the right to sell unrepresented), and open listing (payable only to the procuring broker).

An exclusive listing must be in writing, signed by the seller, and state a definite term, the compensation, and the services to be performed.

DC buyer agency is created by written agreement that states the term, the services, and how the buyer's broker will be paid.

Unless the seller directs otherwise in writing, the listing broker must present every offer promptly and objectively, including offers from unrepresented buyers.

The seller's agent may not reveal the seller's motivation, financial bottom line, or the terms of competing offers without authorization.

MLS submission requires the seller's written authorization, and all advertising of the listing must carry the brokerage's licensed name and fair housing compliance.

Offers of compensation to a buyer's broker are negotiated outside the MLS and must be documented in the brokerage agreements of the parties.

A listing agreement must state how the relationship terminates; on termination the licensee must return keys, documents, and any client funds and account for them.

Statute of frauds: a contract for the sale of an interest in land must be in writing, identify the parties and the property, state the price, and be signed by the party to be charged.

Pre-closing DC disclosures include the seller's residential property disclosure statement, federal lead-based paint disclosure for pre-1978 housing, agency disclosure, and condominium or cooperative resale documents.

Under the DC Condominium Act the seller delivers a resale package (budget, bylaws, rules, reserve and financial information); failure to deliver gives the purchaser rescission rights.

Lead paint rule: buyers of pre-1978 housing receive the EPA pamphlet and a 10-day opportunity to test for lead-based paint unless the parties agree otherwise in writing.

The contract must state who holds the earnest money, when it becomes nonrefundable, and how competing claims to it are resolved.

A deed must be in writing, signed by the grantor, acknowledged before a notary, and recorded with the DC Recorder of Deeds to give constructive notice.

Deed comparison: general warranty (defends all title claims), special warranty (defends claims arising through the grantor), quitclaim (conveys only the grantor's existing interest, no covenants).

DC levies both a deed recordation tax and a deed transfer tax at essentially parallel rates, so combined transfer tax cost is roughly double one rate.

Typical contingencies: financing, appraisal, inspection, condominium document review, and sale of the buyer's existing home.

LTV = loan amount ÷ price or appraised value; down payment percentage = 1 − LTV.

One discount point = 1% of the loan amount; 2 points on a $300,000 loan = $6,000.

PITI = principal + interest + property taxes + hazard insurance; add mortgage insurance and HOA dues for total monthly housing cost.

Amortizing payment = loan × (i ÷ (1 − (1 + i)^−n)), where i = annual rate ÷ 12 and n = number of monthly payments.

TRID timing: Loan Estimate within 3 business days of application; Closing Disclosure at least 3 business days before consummation.

RESPA Section 8 bars fees or things of value for referral of settlement business; affiliated business arrangements require written disclosure and no required use.

Seller net proceeds = price − loan payoff − brokerage fees − transfer and recordation taxes − settlement charges − prorated items.

Prorations split taxes, rents, and HOA dues at settlement using a 365-day year or a 30/360 convention as the contract specifies.

Income approach: capitalization rate = NOI ÷ price; gross rent multiplier = price ÷ annual gross rent; 1 acre = 43,560 square feet.

Tenancy in common: distinct, freely transferable shares with no survivorship; joint tenancy: equal shares with a right of survivorship created by the four unities.

Estates and interests: fee simple absolute is the fullest estate; lesser interests include life estates, leaseholds, easements (appurtenant or in gross), licenses, and liens.

Condominium ownership = fee simple in the unit plus an undivided percentage interest in common elements, governed by the DC Condominium Act (Title 42, Chapter 19) and association bylaws.

Cooperative ownership = shares in a corporation plus a proprietary lease; board approval of the purchaser is customary and resale is not a real property conveyance.

TOPA gives tenants of a rental property being sold a statutory opportunity to purchase, or assign the right, after prescribed owner notice.

Zoning regulations appear in 11 DCMR; the Zoning Commission adopts them, while the Board of Zoning Adjustment grants variances and special exceptions.

Historic preservation: the Historic Preservation Review Board reviews alterations in historic districts and nominates or designates landmarks.

DC property tax: Class 1 residential rate applies to owner-occupied homes, annual assessment increases are capped at 10%, and a homestead deduction reduces taxable assessment.

Inclusionary zoning requires affordable units in covered new multifamily development; short-term rentals require a DC license and are limited to the host's primary residence.

Rent control under the Rental Housing Act limits increases for covered units using a CPI-based formula, with limited exemptions such as small owner-occupied buildings.

Federal Fair Housing Act protected classes: race, color, religion, sex, national origin, familial status, and disability.

The DC Human Rights Act adds protections including source of income, age, marital status, personal appearance, sexual orientation, gender identity or expression, political affiliation, matriculation, and status as a victim of violence.

Refusing to rent or sell because a prospective tenant uses a housing voucher is unlawful source-of-income discrimination in DC.

Prohibited practices include steering, blockbusting, redlining, panic selling, discriminatory advertising, and refusing reasonable accommodations.

Reasonable accommodation changes rules, policies, or services for a disability; reasonable modification allows physical changes to the unit, with cost allocation set by law.

Fair housing advertising must avoid expressing a preference or limitation and should carry the Equal Housing Opportunity slogan or logotype.

Deadlines: HUD administrative complaint within 1 year of the discriminatory act, federal lawsuit within 2 years, and DC Human Rights Act complaint with the Office of Human Rights within 1 year.

The DC Consumer Protection Procedures Act (Title 28, Chapter 39) prohibits unfair or deceptive trade practices, including misrepresentations in the sale or rental of housing.

Ethical duties: no misrepresentation, no discrimination, disclosure of conflicts and referral compensation, and cooperation with other brokers unless the client instructs otherwise.