DC Real Estate flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

DC Real Estate Commission

The regulatory body within DLCP that licenses DC brokers, salespersons, and property managers, investigates complaints, and imposes discipline including fines, suspension, and license revocation.

DC license renewal cycle

DC real estate licenses are renewed every two years, and renewal requires completing the continuing education hours the Commission specifies plus paying the renewal fee.

Commingling

Mixing client or escrow funds with a broker's personal or business funds; prohibited in DC, where brokers must keep trust funds in a separate escrow account and account for them.

Escrow account rule

DC brokers must deposit money belonging to others, such as earnest money and rents, into a separate escrow or trust account and keep records of each transaction.

Salesperson supervision

A DC salesperson must be affiliated with and supervised by a licensed broker, and all commissions the salesperson earns must be paid through that broker.

Paying unlicensed persons

Paying a commission, referral fee, or other compensation for brokerage services to an unlicensed person is prohibited in DC and is grounds for disciplinary action.

Licensee acting as principal

A licensee who buys, sells, or leases property for their own account must disclose their licensed status in writing to all parties to the transaction.

Broker supervision duty

The employing broker must supervise affiliated licensees' real estate activities, maintain a roster of affiliates, and is accountable to the Commission for their licensed conduct.

Dual agency consent

Representing both buyer and seller requires the informed written consent of both parties; the dual agent must stay neutral and may not advocate for either side.

Fiduciary duties

Care, obedience, loyalty, disclosure, confidentiality, and accounting, plus reasonable skill and diligence, are owed by a DC licensee to the client.

Confidentiality after termination

The duty to keep a former client's confidences continues after the brokerage relationship ends, except where disclosure is required by law or the client consents.

Material adverse fact

A fact a reasonable buyer or seller would consider important in deciding on the transaction; the licensee must disclose such facts to the client.

Exclusive right to sell

A listing in which the seller pays the broker a commission regardless of who procures the buyer, including when the seller personally finds the buyer.

Open listing

A non-exclusive listing in which the seller may employ several brokers and pays only the broker who produces the ready, willing, and able buyer.

Presenting all offers

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

Buyer representation agreement

A written DC brokerage agreement that establishes buyer agency, states its term and services, and specifies how the buyer's broker will be compensated.

Statute of frauds

Requires contracts for the sale of an interest in land to be in writing, identify the parties and property, state the price, and be signed by the party to be charged.

Seller disclosure statement

DC requires sellers of most residential property to give buyers a written statement of known defects and material information before the buyer is bound by the contract.

Condominium resale package

Under the DC Condominium Act the seller must deliver governing documents, budget, reserve information, and related records; a purchaser who does not receive them may rescind.

Quitclaim deed

A deed conveying only whatever interest the grantor may hold, with no warranties of title, so the grantee bears the risk of any title defects.

Loan-to-value ratio

Loan amount divided by the property's price or appraised value, expressed as a percentage; its complement is the down payment percentage.

Discount point cost

One point equals one percent of the loan amount, so three points on a $250,000 loan cost $7,500 and generally buy down the interest rate.

Closing Disclosure timing

Federal TRID rules require the lender to deliver the Closing Disclosure to the borrower at least three business days before consummation of the loan.

Capitalization rate

Net operating income divided by the property's price or value; it measures an income property's unleveraged return and rises when price falls.

Tenant Opportunity to Purchase

DC's TOPA gives tenants of a rental property being sold a statutory right to make an offer to buy, or assign that right, before the sale closes.

Board of Zoning Adjustment

The DC body that hears and decides requests for variances from zoning regulations and for special exceptions, separate from the Zoning Commission's rulemaking role.

Tenancy in common

Co-ownership in which each owner holds a distinct, transferable share with no right of survivorship, so on death the share passes to the owner's heirs.

Cooperative ownership

The buyer purchases shares in a corporation owning the building and receives a proprietary lease for a unit; the board typically must approve the purchase.

Federal protected classes

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, sex, national origin, familial status, and disability.

Source of income discrimination

DC law forbids refusing to rent or sell to a person because of the source of their income, including housing vouchers and other lawful subsidies.

Blockbusting

Inducing owners to sell by suggesting that members of a protected class are moving into the neighborhood, thereby causing panic selling and neighborhood turnover.

Fair housing filing deadlines

A Fair Housing Act administrative complaint must be filed with HUD within one year of the discriminatory act; a federal lawsuit must be filed within two years.