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DC Real Estate practice questions

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Question 1District of Columbia Real Estate Law, Rules, and Commission Regulations

Under the District of Columbia's Tenant Opportunity to Purchase Act, when the owner of a rental apartment building decides to sell, the tenants are entitled to:

  1. An automatic discount of half the appraised value of the building
  2. A chance to match a third-party offer and purchase the building on substantially the same terms Correct answer.
  3. A purchase right that arises only if the Mayor personally approves the sale
  4. A guarantee of ten years of additional occupancy regardless of the buyer's plans

Explanation

TOPA requires an owner who receives a bona fide offer of sale to give the tenants notice and the opportunity to purchase on substantially the same terms as the third-party offer. The tenants may assign their rights to a tenant organization or a developer they designate. The statute does not create a discount, an automatic lease extension, or a mayoral veto.

Question 2District of Columbia Real Estate Law, Rules, and Commission Regulations

Which characteristic is protected against housing discrimination under the District of Columbia Human Rights Act but is not protected by the federal Fair Housing Act?

  1. Source of income Correct answer.
  2. Race
  3. National origin
  4. Religion

Explanation

The DC Human Rights Act lists many protected traits beyond the federal list, including source of income, marital status, personal appearance, sexual orientation, gender identity, family responsibilities, political affiliation, and matriculation. Source of income protection means a landlord generally may not refuse a voucher-holding applicant for that reason. Race, religion, and national origin are protected under both laws.

Question 3District of Columbia Real Estate Law, Rules, and Commission Regulations

Which license category does the District of Columbia issue specifically to individuals who manage real property for others for a fee?

  1. Home inspector
  2. Timeshare salesperson
  3. Property manager Correct answer.
  4. Certified appraiser

Explanation

DC licenses property managers as a distinct category, separate from broker and salesperson licenses. A person who manages rental property for another for compensation must hold the appropriate DC license. Appraiser, home inspector, and timeshare credentials are governed by different licensing schemes or are not the property-management credential.

Question 4District of Columbia Real Estate Law, Rules, and Commission Regulations

A DC real estate salesperson closes a lease transaction and wants to be paid. The salesperson may be compensated:

  1. By any licensed broker who offers to pay
  2. By the title company handling the transaction
  3. Directly by the client at the closing table
  4. Only through the broker with whom the salesperson is affiliated Correct answer.

Explanation

A DC salesperson must be affiliated with a licensed broker and may receive compensation for brokerage services only through that broker. The broker is the party to the brokerage agreement and is responsible for disbursing the salesperson's share. Accepting a fee directly from a client or from an unrelated party is prohibited.

Question 5District of Columbia Real Estate Law, Rules, and Commission Regulations

The commission a DC real estate broker charges for listing and selling a home is:

  1. Capped by statute at six percent of the sale price
  2. Negotiable between the broker and the client Correct answer.
  3. Established by the multiple listing service
  4. Fixed by the Real Estate Commission

Explanation

Commission rates are set by negotiation between the broker and the client; no statute, regulation, or MLS sets a mandatory rate. Any agreement fixing rates among competitors would violate antitrust law. A client and broker may agree to any lawful compensation arrangement.

Question 6District of Columbia Real Estate Law, Rules, and Commission Regulations

In a DC transaction, a licensee must disclose the agency relationship to the consumer:

  1. Only by inserting a sentence in the sales contract
  2. Only after the offer has been ratified
  3. In writing at the earliest practicable opportunity and before acting on the consumer's behalf Correct answer.
  4. Orally, only if the consumer asks about it

Explanation

DC license law requires the licensee to disclose in writing whom the licensee represents, and to do so at the earliest practicable opportunity so the consumer knows whose interests are being advanced. Disclosure buried in the sales contract or postponed until ratification comes too late to be meaningful. An oral statement alone does not satisfy the written disclosure requirement.

Question 7District of Columbia Real Estate Law, Rules, and Commission Regulations

A buyer gives a DC broker a $10,000 earnest money check. The broker must deposit the funds:

  1. In the brokerage's payroll account to simplify disbursement
  2. In a separate escrow or trust account maintained for client funds Correct answer.
  3. In the brokerage's general operating account
  4. In the salesperson's personal account until closing

Explanation

Funds held on behalf of clients must be placed in a dedicated escrow or trust account and kept separate from the broker's own money. Commingling client funds with operating funds is grounds for discipline. The broker must account for the funds and disburse them only as the transaction requires.

Question 8District of Columbia Real Estate Law, Rules, and Commission Regulations

Advertising placed by a DC real estate salesperson must include:

  1. The seller's name
  2. The name of the affiliated brokerage Correct answer.
  3. The salesperson's home address
  4. The seller's asking price

Explanation

Advertisements by a salesperson must identify the brokerage with which the salesperson is affiliated, so the public knows which broker stands behind the advertising. The brokerage name is the required element; the seller's identity, price, and the agent's residence are not mandated. Ads that omit the brokerage name can subject the licensee to discipline.

Question 9District of Columbia Real Estate Law, Rules, and Commission Regulations

A DC salesperson asks an unlicensed assistant to hold an open house and quote listing prices to visitors. This arrangement is:

  1. Permitted if the supervising broker approves in writing
  2. Prohibited, because showing property and quoting prices are licensed brokerage activities Correct answer.
  3. Permitted, but only for rental properties
  4. Permitted if the assistant has two years of real estate office experience

Explanation

Activities that involve soliciting or negotiating on behalf of another for compensation require a license. Quoting prices and conducting showings are core brokerage functions that an unlicensed assistant may not perform. A broker's approval or the assistant's office experience cannot cure the lack of a license.

Question 10District of Columbia Real Estate Law, Rules, and Commission Regulations

A DC broker pays a $500 'thank you' to an unlicensed friend who introduced a buyer to the broker. The payment is:

  1. Prohibited, because a licensee may not share compensation with an unlicensed person for brokerage services Correct answer.
  2. Permitted because it is under $1,000
  3. Permitted if the friend lives in the District
  4. Permitted if the friend signs a written disclosure

Explanation

Licensees may not pay compensation to an unlicensed person for performing brokerage services, and a referral of a buyer is a brokerage service. The rule applies regardless of the dollar amount, any disclosure, or the recipient's residence. Violating it exposes the broker to disciplinary action.

Question 11District of Columbia Real Estate Law, Rules, and Commission Regulations

A single DC licensee wants to represent both the buyer and the seller in the same transaction. The licensee may do so only if:

  1. Both parties give informed written consent after disclosure of the conflict Correct answer.
  2. The commission is split equally between the parties
  3. The licensee is a broker rather than a salesperson
  4. The transaction is residential rather than commercial

Explanation

Dual representation creates an inherent conflict because the licensee owes fiduciary duties to both sides. DC law permits it only when the licensee has disclosed the conflict and obtained the informed written consent of both parties. Neither the property type, the commission split, nor the licensee's rank substitutes for that consent.

Question 12District of Columbia Real Estate Law, Rules, and Commission Regulations

In a customary DC residential sale, which party generally bears the recordation tax on the deed?

  1. The title insurance company
  2. The seller, as grantor
  3. The buyer, as grantee Correct answer.
  4. The parties, in equal shares

Explanation

DC imposes both a transfer tax and a recordation tax on a deed; by customary practice the grantor pays the transfer tax and the grantee pays the recordation tax. The taxes are calculated on the consideration paid and are collected when the deed is recorded. The title insurer is not a taxpayer on the transaction.

Question 13District of Columbia Real Estate Law, Rules, and Commission Regulations

To give constructive notice of a deed to later purchasers, the deed must be:

  1. Recorded in the land records maintained by the DC Recorder of Deeds Correct answer.
  2. Notarized, which alone constitutes notice
  3. Filed with the DC Real Estate Commission
  4. Published in a newspaper of general circulation

Explanation

Constructive notice arises from recording the instrument in the public land records, where a later purchaser is charged with knowledge of its contents. Notarization authenticates signatures but does not create notice. Publication and filing with the licensing agency have no effect on title.

Question 14District of Columbia Real Estate Law, Rules, and Commission Regulations

Which rental unit is subject to the District's rent stabilization program?

  1. An apartment in a building whose certificate of occupancy was issued in 1968 Correct answer.
  2. A unit in a building constructed in 2005
  3. A transient unit in a hotel
  4. A unit in an owner-occupied building with four units

Explanation

DC rent stabilization generally covers housing accommodations in buildings that received a certificate of occupancy before January 1, 1976, unless a specific exemption applies. Later construction, small owner-occupied buildings, and transient hotel accommodations are among the exemptions. The 1968 certificate of occupancy places the unit within the covered class.

Question 15District of Columbia Real Estate Law, Rules, and Commission Regulations

What is the maximum security deposit a DC landlord may require from a residential tenant?

  1. Two months' rent
  2. Three months' rent
  3. No deposit may be collected at all
  4. One month's rent Correct answer.

Explanation

DC law limits residential security deposits to one month's rent, and tenants who receive public assistance may pay the deposit in installments. Charging more than the statutory maximum is a violation enforceable by the tenant and the rent administrator. The limit is stated in months of rent rather than a flat dollar figure.

Question 16District of Columbia Real Estate Law, Rules, and Commission Regulations

The District's Home Purchase Assistance Program (HPAP) is designed to provide:

  1. Property tax relief for long-time homeowners
  2. Down payment and closing cost assistance to eligible homebuyers Correct answer.
  3. Construction financing for developers of market-rate housing
  4. Rental vouchers for low-income tenants

Explanation

HPAP provides loans and grants to income-eligible households to cover down payment and closing costs so they can buy a home in the District. It is administered through the Department of Housing and Community Development. It is a homeownership program, not a rental subsidy, tax abatement, or developer finance program.

Question 17District of Columbia Real Estate Law, Rules, and Commission Regulations

Unless an exemption applies, a seller of residential real property in the District must deliver to the buyer:

  1. A one-year home warranty policy
  2. A written disclosure statement of the property's known condition and material defects Correct answer.
  3. A termite inspection report paid for by the seller
  4. A boundary survey prepared by a licensed surveyor

Explanation

DC's residential seller disclosure law requires the seller to give the buyer a written statement disclosing known material defects and conditions affecting the property. The statement must be delivered before the buyer is bound, giving the buyer an opportunity to evaluate the disclosures. Inspections, surveys, and warranties may be negotiated but are not the statutory disclosure obligation.

Question 18District of Columbia Real Estate Law, Rules, and Commission Regulations

A developer plans to convert an occupied apartment building into condominium units in the District. Before proceeding, the developer must:

  1. Obtain the written approval of every tenant in the building
  2. Pay each tenant relocation equal to twelve months of rent in all cases
  3. Take no special step, because conversions are exempt from tenant purchase rights
  4. Give the tenants an opportunity to purchase consistent with District tenant purchase rights Correct answer.

Explanation

Conversion of a rental building to condominium form triggers tenant opportunity rights; tenants must be notified and given a chance to purchase before the property is sold or the conversion proceeds. Unanimous tenant consent is not required, and relocation obligations are governed by separate provisions rather than a fixed twelve-month formula. Treating conversions as exempt is incorrect because the tenant purchase statute expressly reaches conversions.

Question 19District of Columbia Real Estate Law, Rules, and Commission Regulations

A DC listing agent learns from the seller that the basement takes on water every spring and that the seller does not want it mentioned. The agent should:

  1. Keep the information confidential as a matter of loyalty to the seller
  2. Disclose the condition to prospective buyers as a material adverse fact Correct answer.
  3. Say nothing unless a buyer specifically asks about water in the basement
  4. Tell only the buyer's lender so financing is not jeopardized

Explanation

A licensee may not misrepresent or conceal known material adverse facts about the property, even when the seller asks for silence. The duty of confidentiality does not extend to concealing defects that would affect a buyer's decision. Disclosure must be affirmative, not dependent on the buyer asking the right question.

Question 20District of Columbia Real Estate Law, Rules, and Commission Regulations

Which DC agency administers real estate licensing and the Real Estate Commission?

  1. The Department of Licensing and Consumer Protection Correct answer.
  2. The DC Superior Court
  3. The Office of the Attorney General
  4. The Department of Housing and Community Development

Explanation

Real estate licensing in the District is administered by the Department of Licensing and Consumer Protection, which houses the Real Estate Commission and its support staff. The Attorney General's office prosecutes cases but does not license brokers, and the Superior Court and DHCD have no licensing function. The Department of Licensing and Consumer Protection is the successor to the former consumer and regulatory affairs agency.

Question 21District of Columbia Real Estate Law, Rules, and Commission Regulations

To renew a DC real estate license, a licensee must:

  1. Complete Commission-approved continuing education during the renewal cycle Correct answer.
  2. Submit new fingerprints at every renewal
  3. Repeat the full pre-licensing course
  4. Retake the licensing examination

Explanation

Renewal in the District requires completion of Commission-approved continuing education within the renewal cycle, which typically includes required hours in ethics and District law. The examination and pre-licensing course are entry requirements, not renewal requirements. Repeat fingerprinting is not a routine renewal condition.

Question 22District of Columbia Real Estate Law, Rules, and Commission Regulations

A DC broker holds earnest money and the buyer and seller both claim it after the contract falls apart. The broker should:

  1. Release the money to the seller, who originally received the offer
  2. Divide the money equally between the parties
  3. Refund the money to the buyer, who tendered it
  4. Keep the funds in the escrow account until the parties agree or a court or arbitrator directs disbursement Correct answer.

Explanation

When entitlement to escrowed funds is disputed, the broker's role is to preserve the funds, not to decide who wins. The broker should notify the parties and hold the money until they reach a written agreement or an adjudicator orders disbursement, often through an interpleader. Unilateral release to either side risks liability to the other claimant.

Question 23District of Columbia Real Estate Law, Rules, and Commission Regulations

Which person may lawfully perform acts that would otherwise require a DC real estate license?

  1. A person who charges a fee to locate and buy investment property for clients
  2. An owner who sells his or her own residence without a licensee Correct answer.
  3. An unlicensed individual who charges a fee to negotiate commercial leases for others
  4. A firm that charges a fee to solicit listings on behalf of homeowners

Explanation

An owner dealing with his or her own property is not acting as a broker for another and does not need a license. The licensing statutes reach persons who, for compensation, perform brokerage services for others, including negotiating leases and soliciting listings. Charging a fee to act for another is what triggers the licensing requirement.

Question 24District of Columbia Real Estate Law, Rules, and Commission Regulations

A tenant who uses a wheelchair asks her DC landlord for permission to install grab bars in the bathroom at her own expense. The landlord must:

  1. Charge additional rent to offset wear on the unit
  2. Require the tenant to move to a different unit instead
  3. Deny the request because it alters the landlord's property
  4. Allow the reasonable modification at the tenant's expense Correct answer.

Explanation

Fair housing law requires landlords to permit reasonable modifications of existing premises, at the tenant's expense, when necessary to accommodate a disability. The landlord may impose reasonable conditions, such as restoring the unit at move-out, but may not refuse the modification. Extra rent or forced relocation in response to a disability-related request is discriminatory.

Question 25District of Columbia Real Estate Law, Rules, and Commission Regulations

A DC licensee is found to have knowingly misrepresented the square footage of a listing to induce a buyer to purchase. The Real Estate Commission may:

  1. Only issue a private letter of caution
  2. Take no action because misrepresentation is purely a civil matter between the parties
  3. Act only if a criminal conviction is obtained first
  4. Suspend or revoke the license and impose a civil fine Correct answer.

Explanation

Knowingly misrepresenting a material fact in a transaction is a violation of license law that supports suspension, revocation, and monetary penalties imposed by the Commission. The Commission's authority is independent of any civil suit the buyer may file and does not require a prior criminal conviction. A private caution is not an adequate sanction for intentional misrepresentation.

Question 26District of Columbia Real Estate Law, Rules, and Commission Regulations

A District landlord refuses to rent an available apartment to a prospective tenant because the tenant would pay the rent with a housing voucher. Under District law, this refusal is:

  1. lawful, because a landlord may choose which lawful source of rent to accept
  2. lawful, as long as the landlord gives the tenant a written business reason
  3. unlawful discrimination under the DC Human Rights Act Correct answer.
  4. lawful, because owners of small buildings are exempt from source-of-income rules

Explanation

The DC Human Rights Act makes source of income a protected trait in residential housing, and rental assistance such as a housing voucher is a protected source of income. Refusing to rent on that basis is unlawful discrimination, and neither the size of the owner's portfolio nor a stated business justification cures it.

Question 27District of Columbia Real Estate Law, Rules, and Commission Regulations

A District landlord who owns a six-unit apartment building occupied by tenants wants to sell the building to an outside investor. Before the landlord may complete a sale to that investor, the landlord must:

  1. obtain the Real Estate Commission's approval of the sale before signing
  2. give the tenants notice and an opportunity to purchase Correct answer.
  3. do nothing, because tenants renting month to month have no purchase rights
  4. convert the building to condominiums before marketing it

Explanation

The Tenant Opportunity to Purchase Act requires an owner who intends to sell a rental housing accommodation to give the tenants written notice and a genuine opportunity to purchase on substantially the same terms before selling to a third party. The right runs to the tenants themselves; no Commission approval or condominium conversion is a precondition.

Question 28District of Columbia Real Estate Law, Rules, and Commission Regulations

A properly licensed District brokerage firm opens a satellite sales office in another ward and staffs it with two licensed salespersons. Under Commission regulation, the firm must:

  1. rely on the existing K Street office license, because a firm's license covers every office it operates in the District
  2. have each salesperson working there separately register the street address with the Commission
  3. notify the Commission in writing within 30 days after the office opens to the public
  4. license the new office and place a licensed broker in charge of it Correct answer.

Explanation

Each brokerage office in the District, including a branch or satellite location, must hold its own license and operate under the supervision of a licensed broker. A firm's license for one address does not authorize activity at a second location, and later notification cannot substitute for licensing.

Question 29Licensing, Registration, and Licensee Supervision

Under District of Columbia law, who may receive a commission directly from a client for brokerage services?

  1. The salesperson who personally procured the client
  2. The unlicensed transaction coordinator who handled the file
  3. The broker who holds the brokerage relationship with the client Correct answer.
  4. Any licensee who is named in the written brokerage agreement

Explanation

Compensation for brokerage services must be paid to the licensed broker; salespersons and associate brokers receive their share from their sponsoring broker, and unlicensed persons may not be paid for brokerage work.

Question 30Licensing, Registration, and Licensee Supervision

A District of Columbia salesperson license becomes inactive when the salesperson:

  1. completes the required continuing education early
  2. takes an approved leave of absence from the firm
  3. moves to a new residence in the District
  4. ends affiliation with the sponsoring broker Correct answer.

Explanation

A salesperson's authority to act flows from the sponsoring broker. With no broker affiliation, the license is placed on inactive status and the salesperson may not perform brokerage activities.

Question 31Licensing, Registration, and Licensee Supervision

At any one time, a District of Columbia salesperson may be affiliated with how many sponsoring brokers?

  1. Up to three brokers, if each is notified
  2. Any number, if the Commission is notified
  3. Up to two brokers, with written consent
  4. Only one broker Correct answer.

Explanation

A salesperson works under a single sponsoring broker at a time, and a new affiliation filing is required before the salesperson may act for a different firm.

Question 32Licensing, Registration, and Licensee Supervision

An unlicensed assistant at a District of Columbia brokerage may lawfully perform which task?

  1. Holding an open house and quoting the seller's asking price
  2. Negotiating counteroffer terms on the broker's behalf
  3. Explaining the terms of the listing agreement to a buyer
  4. Delivering a signed offer to the listing broker Correct answer.

Explanation

Unlicensed assistants may perform clerical and administrative work such as delivering documents, but may not discuss price or terms, negotiate, or perform other acts that require a license.

Question 33Licensing, Registration, and Licensee Supervision

A District of Columbia broker closes a sale and pays 25 percent of the commission to an unlicensed marketing consultant who introduced the buyer. This payment is:

  1. proper, if the consultant's invoice itemizes the referral
  2. proper, because the consultant never negotiated any part of the sale
  3. improper, because referral fees may go only to licensees Correct answer.
  4. improper, unless the buyer consents in writing

Explanation

Compensation for brokerage activity, including referral fees, may be shared only with licensed persons; paying an unlicensed consultant for a referral violates the license law.

Question 34Licensing, Registration, and Licensee Supervision

A salesperson affiliated with a District of Columbia brokerage overstates a home's square footage in a listing, and the broker never reviewed the listing. The Commission may:

  1. discipline the salesperson only, since the broker had no knowledge
  2. take no action, because statements about size are not regulated
  3. discipline the broker for failing to supervise the affiliated licensee Correct answer.
  4. require the buyer to sue in court before any license action

Explanation

A broker is responsible for supervising affiliated licensees, and a failure to supervise is itself grounds for discipline even when the broker had no direct knowledge of the conduct.

Question 35Licensing, Registration, and Licensee Supervision

Advertising placed by a District of Columbia salesperson for a listing must:

  1. show the name of the affiliated brokerage Correct answer.
  2. list every licensee employed by the brokerage firm
  3. be pre-approved in writing by the Real Estate Commission
  4. include the salesperson's personal telephone number

Explanation

Advertising by a licensee must identify the brokerage so the public knows which licensed firm stands behind the advertisement.

Question 36Licensing, Registration, and Licensee Supervision

Which action may the District of Columbia Real Estate Commission take against a licensee who violates the license law?

  1. Sentence the licensee to a jail term
  2. Place a lien on the licensee's real property
  3. Award money damages to the complaining consumer
  4. Suspend, revoke, or fine the licensee Correct answer.

Explanation

The Commission's authority is disciplinary: it may suspend, revoke, reprimand, or impose civil fines, but it does not award damages, impose incarceration, or encumber property.

Question 37Licensing, Registration, and Licensee Supervision

Which person must hold a District of Columbia real estate license?

  1. An attorney preparing a deed for a client
  2. A court-appointed receiver selling property under court order
  3. A person who, for a fee, lists another person's house for sale Correct answer.
  4. An owner selling her own residence without a listing agent

Explanation

Licensing is required of anyone who, for compensation, lists or sells another person's real estate. Owners selling their own homes, attorneys performing customary legal work, and court-appointed receivers are exempt.

Question 38Licensing, Registration, and Licensee Supervision

A corporation that wants to offer brokerage services in the District must:

  1. register with the Commission as an out-of-state business entity
  2. hold a broker license with a designated responsible broker Correct answer.
  3. have every corporate officer obtain a salesperson license and post a bond
  4. obtain a property manager license for its principal office

Explanation

Brokerage services must be provided under a broker license, and an entity must designate a licensed broker who is responsible for the firm's brokerage activities.

Question 39Licensing, Registration, and Licensee Supervision

A District of Columbia broker transfers a buyer's earnest money deposit into the firm's general operating account to cover payroll, intending to restore it within two weeks. This practice is:

  1. prohibited, unless the buyer agrees in writing to the transfer
  2. permitted, if the funds are restored before closing
  3. prohibited, because client funds must be escrowed separately Correct answer.
  4. permitted, if the broker records the transfer in the escrow ledger

Explanation

Client funds such as earnest money must be held in a separate escrow or trust account; using them for business expenses is commingling and conversion, even if the money is later restored.

Question 40Licensing, Registration, and Licensee Supervision

A District of Columbia licensee who buys a property for her own account from a client must:

  1. disclose her licensed status in writing to the other party Correct answer.
  2. resign her license before the closing
  3. obtain the Commission's approval of the purchase
  4. pay the cooperating broker a double commission

Explanation

A licensee acquiring property for her own account must disclose her licensed status in writing so the other party knows she is a real estate professional.

Question 41Licensing, Registration, and Licensee Supervision

When a salesperson's affiliation with a District of Columbia brokerage ends, the Commission must be notified by:

  1. the salesperson, within the same business day
  2. the Commission's own records audit staff
  3. the salesperson's new broker, after the next renewal
  4. the sponsoring broker, through the required filing Correct answer.

Explanation

The sponsoring broker is responsible for reporting a terminated affiliation so that the Commission's records show which broker, if any, supervises the licensee.

Question 42Licensing, Registration, and Licensee Supervision

A salesperson whose District of Columbia license has expired continues to show homes for a commission. The salesperson is:

  1. engaged in unlicensed activity subject to discipline Correct answer.
  2. subject only to a late fee at the next renewal
  3. lawful, if renewal paperwork was mailed on time
  4. lawful, if the broker's license is still active

Explanation

Practicing without a valid license is unlicensed activity; an expired license is no license, and neither the broker's active status nor a timely mailing cures the problem.

Question 43Licensing, Registration, and Licensee Supervision

A District of Columbia broker's transaction and escrow records must be:

  1. kept at the broker's office and open to Commission inspection Correct answer.
  2. destroyed at the end of each calendar year
  3. filed with the Commission within thirty days of every closing
  4. held by the salesperson who handled the transaction

Explanation

Brokers must maintain transaction and escrow records and produce them for the Commission on request; records are not filed after each closing and may not be routinely discarded.

Question 44Licensing, Registration, and Licensee Supervision

A home builder wants to pay a District of Columbia licensee directly to staff its new-home sales office. For the arrangement to be lawful:

  1. the licensee must work without pay until the first closing
  2. the builder must hold a broker license and sponsor the licensee Correct answer.
  3. the licensee must form a corporation and hold the license in its name
  4. the Commission must approve the builder's marketing plan

Explanation

A person or company that pays a licensee for brokerage activity must itself be a licensed broker acting as sponsor; a licensee cannot accept brokerage compensation from an unlicensed payer.

Question 45Licensing, Registration, and Licensee Supervision

A District of Columbia salesperson license authorizes its holder to:

  1. perform brokerage activities under a broker's supervision Correct answer.
  2. supervise other salespersons at the firm
  3. operate an independent brokerage firm
  4. manage rental property without any broker oversight

Explanation

A salesperson acts only under the supervision of a licensed broker, may not operate an independent brokerage, and may not supervise other licensees.

Question 46Licensing, Registration, and Licensee Supervision

A person who, for a fee, manages rental property for another owner in the District must hold:

  1. a District of Columbia salesperson license only
  2. no license, if the owner signs a management agreement
  3. a District of Columbia property manager license or a broker license Correct answer.
  4. a general business license only

Explanation

Managing rental property for others for compensation requires a property manager license or a broker license; a general business license or a management agreement does not substitute.

Question 47Licensing, Registration, and Licensee Supervision

A consumer who believes a District of Columbia licensee violated the license law should file a complaint with:

  1. the District of Columbia Real Estate Commission through DLCP Correct answer.
  2. the local association of REALTORS
  3. the federal Department of Housing and Urban Development
  4. the Small Claims branch of the D.C. Superior Court

Explanation

The Real Estate Commission, administered through the Department of Licensing and Consumer Protection, receives and acts on complaints about licensee conduct under the license law.

Question 48Licensing, Registration, and Licensee Supervision

The minimum age to be licensed as a District of Columbia real estate salesperson is:

  1. No minimum age is set
  2. Eighteen Correct answer.
  3. Sixteen
  4. Twenty-one

Explanation

Applicants for a salesperson license must be at least 18 years old, in addition to satisfying the education, examination, and character requirements.

Question 49Licensing, Registration, and Licensee Supervision

The Commission may deny a license application from a person who:

  1. has a recent conviction involving fraud or dishonest dealing Correct answer.
  2. works a second job outside real estate
  3. has never owned real property
  4. has lived in the District for less than one year

Explanation

The Commission may deny a license to an applicant whose record shows dishonesty, fraud, or other unfitness to act as a licensee.

Question 50Licensing, Registration, and Licensee Supervision

A buyer and a seller both claim the same earnest money deposit held by a District of Columbia broker. Until the dispute is resolved, the broker should:

  1. turn the funds over to the brokerage's attorney for safekeeping
  2. return the funds to the buyer immediately upon the dispute
  3. hold the funds until the parties agree or a court orders release Correct answer.
  4. release the funds to the seller when the closing date passes

Explanation

The broker holds disputed funds as a stakeholder and may not choose sides; disbursement requires a written agreement of the parties or an order from a court or the Commission.