DC Broker State Exam

Question 1

If a buyer who intends to occupy the dwelling they are purchasing does not receive a seller disclosure before entering into a contract has how long to rescind a purchase agreement?

Answer 1

5 business days to rescind a purchase agreement.

Question 2

In an exclusive relationship an agent owes duties of fidelity to the client’s best interests. All of the following are obligations except.

Answer 2

Deciding not to present an offer to a seller after the property is already Under Contract.

A broker’s duty to a client is a duty of fidelity and in that relationship a broker is obligated to present all offers even if the seller cannot react to the offer because they are in a pending contract with a buyer already.

Question 3

An issue that if the buyer had known they may have made a different decision about buying is?

Answer 3

Material defect

If something inherent in the property or near the property that if the buyer had known they may not have bought the property could be deemed a material defect an may have needed to be disclosed.

Question 4

The seller is who gets to decide if there will be a sign, or lockbox, or any type of advertising.

Answer 4

The seller is who gets to decide if there will be a sign, or lockbox, or any type of advertising.

Question 5

A buyer should never hear their real estate agent say which of the following?

Answer 5

I cannot take that offer to the seller

No broker or salesperson has the authority to withhold an offer from a seller they all must be presented.

Question 6

Paul a licensed property manager is concerned that a group of tattoo artists wearing dreadlocks wants to rent space in their strip mall next to a Christian book store. Paul decides to tell the group there is nothing expected to be available until next month? Paul doesn’t really have a lack of vacancies Which best describes the situation?

Answer 6

Paul has violated Title 4

It’s a violation to discriminate based on appearance.

Question 7

A listing agent has presented three offers to the same seller who is listed at $135,000. The offers are for $130,000 and the seller rejects all three. A week later the listing agent receives another offer for $130,000. What must the listing agent do?

Answer 7

Present the offer

All offers must be presented only the seller can decide if its unacceptable.

Question 8

D.C. specifies in its rules of agency that no broker or salesperson shall give legal advice or otherwise practice law.

Answer 8

D.C. specifies in its rules of agency that no broker or salesperson shall give legal advice or otherwise practice law.

Question 9

Under a subpoena or subpoena duces tecum confidential information may be revealed in an investigation.

Answer 9

Under a subpoena or subpoena duces tecum confidential information may be revealed in an investigation.

Question 10

If a broker is a member of the National Association of Realtors then the salespersons must also be members

Answer 10

If a broker is a member of the National Association of Realtors then the salespersons must also be members

Question 11

D.C. ordinance sets policy for Brokers to choose, the broker sets the policy for the salespersons to follow at a brokerage, as long as the policy does not defy the ordinance it stands.

Answer 11

D.C. ordinance sets policy for Brokers to choose, the broker sets the policy for the salespersons to follow at a brokerage, as long as the policy does not defy the ordinance it stands.

Question 12

Upon the expiration or other termination of an agency agreement the broker still owes the duties of confidentiality and accounting.

Answer 12

Upon the expiration or other termination of an agency agreement the broker still owes the duties of confidentiality and accounting.

Question 13

A broker must disclose the agency relationship to the tenant Prior to entering into a broker relationship

Answer 13

A broker must disclose the agency relationship to the tenant Prior to entering into a broker relationship

Question 14

A broker is required to show who money belongs to the date of the deposit, and the date of withdrawal.

Answer 14

A broker is required to show who money belongs to the date of the deposit, and the date of withdrawal.

Question 15

Barbara a Broker with Bab’s Fab Realty gave gift cards for $300 to every neighbor who brings her a new client. Was it more than the law allows?

Answer 15

The broker cannot give referral fees to anyone not licensed to practice real estate.

Question 16

A Broker must notify the Commission of any unsatisfied judgements within 15 days of the judgment

Answer 16

A Broker must notify the Commission of any unsatisfied judgements within 15 days of the judgment

Question 17

If the District Mayor makes a payment on behalf of the licensee the Mayor will suspend the license until the fund is repaid.

Answer 17

If the District Mayor makes a payment on behalf of the licensee the Mayor will suspend the license until the fund is repaid.

Question 18

The Commission’s authority is limited to compensatory damages only

Answer 18

The Commission’s authority is limited to compensatory damages only

Question 19

The District has established a Real Estate Guaranty and Education Fund that will pay judgments and settlements.

Answer 19

$50,000

Question 20

If a buyer who intends to occupy the dwelling they are purchasing does not receive a seller disclosure before entering into a contract has how long to rescind a purchase agreement?

Answer 20

5 days

Question 21

What is an agent that has been given limited authority to perform a specific task on behalf of the client?

Answer 21

Special Agent

Question 22

Which of the following is a form of dual agency?

Answer 22

A salesperson selling one of the brokers listing

Question 23

Whenever a real estate broker changes the location of his or her principal place of business, or discontinues his or her business, he or she shall notify the Mayor within how long of the event, in writing, and return to the Mayor his or her license together with the licenses of all real estate salespersons employed by him or her.

Answer 23

15 days

Question 24

A license for filing fraudulent documents can receive a fine of up to $3,000 and one year in prison.

Answer 24

A license for filing fraudulent documents can receive a fine of up to $3,000 and one year in prison.

Question 25

An appeal is the process of looking for mistakes in the procedure

Answer 25

An appeal is the process of looking for mistakes in the procedure

Question 26

When a tenant orgaization requests an appraisal the organization shall deliver the request tothe Mayor within 45 days of the owner receiving an bona fide purchase offer of sale.

Answer 26

The tenant organization shall request an appraisal by delivering the request to the Mayor and the owner by hand or by certified mail within 45 days of receipt of the alleged bona fide offer of sale.

Question 27

A Matter-of-right means a land use, development density, or structural dimension to which a property owner is entitled by current zoning regulations or law.

Answer 27

“Matter-of-right,” also known as by right, means a land use, development density, or structural dimension to which a property owner is entitled by current zoning regulations or law. This means that the property owner can proceed with their development plans without having to obtain a special permit or variance from the zoning authority.

Question 28

A Broker, Associate broker, or salesperson can collect a fee for a Broker Price Opinion (BPO) but never in conjunction with a loan, a fee appraiser will do an appraisal for the lender.

Answer 28

No Banks

A broker price opinion (BPO) is an estimate of a property’s value that is prepared by a real estate broker or salesperson. A BPO is not an appraisal, and it is not required by lenders. However, some buyers and sellers find BPOs to be helpful in getting an idea of a property’s value.

Question 29

A Rafter bid is a fictitious bid used to increase the final sales price.

Answer 29

A rafters bid is a bid that is placed by a party who has no intention of actually buying the property. The purpose of a rafters bid is to drive up the price of the property so that the seller can get a higher price.

Rafter bids are often placed by real estate agents or other professionals who have a financial interest in the sale of the property. For example, an agent might place a rafters bid on a property that they are listing so that they can earn a higher commission.

Rafter bids are illegal in some jurisdictions. However, they are difficult to prove, and they are often used in the real estate industry.

Question 30

Any notice required by this chapter may be served by the Director, or his or her agent, or by certified mail.

Answer 30

You are correct. Section 42-1706(a) of the District of Columbia Code states that any notice required by the District of Columbia Real Estate License Law may be served by the Director of the District of Columbia Real Estate Commission, or his or her agent, or by certified mail.

Question 31

D.C. law requires that anyone who for a fee lists, sells, leases, or otherwise deal in the real estate of others must be licensed.

Answer 31

The District of Columbia Real Estate License Law requires that anyone who for a fee lists, sells, leases, or otherwise deals in the real estate of others must be licensed. This includes real estate brokers, salespersons, and property managers.

The law also defines “dealing in real estate” as “performing any act for another person for compensation that is designed to facilitate the sale, lease, or other disposition of real estate.”

Question 32

A real estate salespersons license expires on August 31, of each odd numbered year

Answer 32

A real estate salesperson’s license in the District of Columbia expires on August 31 of each odd-numbered year. This means that if you obtain your license in 2023, it will expire on August 31, 2025.

Question 33

The DREC will notify you by mail when your license is about to expire. You can also check the status of your license online.

Answer 33

The DREC will notify you by mail when your license is about to expire. You can also check the status of your license online.

Question 34

A licensee must notify the Commission within 30 days of a personal residence change. The licensee cannot use a P.O. box.

Answer 34

The licensee must also provide the DREC with their new mailing address. The mailing address must be a physical address, not a P.O. box.

If the licensee fails to notify the DREC of a personal residence change within 30 days, they may be subject to disciplinary action.

Question 35

What is the requirement of the D.C. license law for a real estate broker when accepting an agents license

Answer 35

A broker must display the license of the broker, associate brokers, and salespersons prominently