Free District of Columbia Real Estate Practice Test (2026) — LicenseIQ

Question 1

The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

Accepted Answer

The income statement (P&L) summarizes income and expenses for the accounting period, typically monthly.

Question 2

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 3

A VA loan is:

Accepted Answer

VA loans are guaranteed (not insured) by the VA for eligible veterans and service members, often with no down payment, and only for a primary residence.

Question 4

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 5

A residential condo sells for $360,000. What is the seller's DC transfer tax?

Accepted Answer

Residential property under $400,000 is taxed at 1.1%, and 0.011 × 360,000 = $3,960. $7,920 is the combined recordation and transfer tax.

Question 6

A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?

Accepted Answer

Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.

Question 7

Under federal rules, a lender must automatically cancel borrower-paid PMI when the loan balance reaches what percentage of the original value (purchase price)?

Accepted Answer

PMI terminates automatically at 78% LTV based on original value. At 80% LTV the borrower may REQUEST cancellation, which is the tempting distractor.

Question 8

An application for payment from the Guaranty Fund must be filed no later than:

Accepted Answer

§42-1707(a) requires the application within 12 months after the judgment became final. The 30-day period is a separate rule: notify the Mayor within 30 days of commencing the lawsuit.

Question 9

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

Accepted Answer

Highest and best use is the use producing the greatest value that meets the four tests.

Question 10

A licensee may accept compensation from more than one party to a transaction:

Accepted Answer

§47-2853.197(a)(21) prohibits it without the knowledge and consent of all other parties.

Question 11

A built-in dishwasher attached to the cabinetry is best classified as:

Accepted Answer

Once personal property is permanently attached to real estate it becomes a fixture and is treated as real property. A trade fixture is installed by a tenant for business use, which is not the case here.

Question 12

Which rental unit is generally EXEMPT from DC rent stabilization?

Accepted Answer

§42-3502.05(a)(2) exempts buildings permitted after December 31, 1975. The small-landlord exemption requires 4 or fewer units owned by no more than 4 natural persons.

Question 13

Lenders commonly prefer a borrower's front-end (housing) ratio not to exceed ___ and back-end (total debt) ratio not to exceed ___ of gross monthly income.

Accepted Answer

Conventional guidelines are 28% for housing expense and 36% for total debt. Reversing them is the common trap.

Question 14

A buyer earns $8,000 per month gross. Using a 28% front-end ratio, what is the maximum monthly housing payment (PITI)?

Accepted Answer

$8,000 x 0.28 = $2,240. $2,880 uses the 36% back-end ratio.

Question 15

Which transfer is NOT a 'sale' under TOPA?

Accepted Answer

§42-3404.02b(b)(3) excludes foreclosures under bona fide mortgages. Majority entity-interest transfers and certain master leases are expressly treated as sales.

Question 16

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 17

The physical characteristics of land are:

Accepted Answer

The three physical characteristics are immobility, indestructibility and uniqueness. Scarcity and area preference are economic characteristics.

Question 18

The owner-occupied exemption in the DC HRA applies to a building where the owner lives in one unit and which has accommodations for no more than:

Accepted Answer

§2-1402.24(a) contains both versions of the exemption.

Question 19

A lease of a building to operate an illegal gambling business is:

Accepted Answer

A contract without legal purpose is void - it has no legal effect from the beginning.

Question 20

A landlord sells an apartment building with tenants under 12-month leases. The leases:

Accepted Answer

Leases run with the property; the buyer takes title subject to existing leases and inherits the landlord's obligations.

Question 21

Under DC's TOPA, before selling a housing accommodation, an owner must:

Accepted Answer

§42-3404.02(a) requires an opportunity to purchase before a sale, or before a notice to vacate for demolition or discontinuance of housing use.

Question 22

A lender's refusal to make loans in certain neighborhoods based on demographics is:

Accepted Answer

Redlining is denying loans or services to areas based on protected characteristics rather than the borrower's qualifications.

Question 23

An individual who owns two single-family homes sells one through a licensed broker. Does the DC HRA single-family owner exemption apply?

Accepted Answer

§2-1402.24(c)(2) requires that no broker or salesperson services be used and that no discriminatory advertisement be published.

Question 24

A seller promises a buyer that the deck will be rebuilt after settlement. The seller's licensee may continue acting for the seller only if the promise is furnished to the buyer in writing at least:

Accepted Answer

§47-2853.197(a)(35) requires post-conveyance repair or improvement promises to be in writing to the buyer at least 5 days before conveyance. For lessees, the rule is at or before conveyance.

Question 25

A landlord refuses to rent to applicants who are enrolled in a university. This violates DC's protection based on:

Accepted Answer

Matriculation means enrollment in a college, university, or other school or program (§2-1401.02), and it is protected in housing.

District of Columbia real estate practice test

1. The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

2. In general, a 'stigmatized' property refers to one:

3. A VA loan is:

4. When competing brokerages agree to charge the same commission rate, they commit:

5. A residential condo sells for $360,000. What is the seller's DC transfer tax?

6. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?

7. Under federal rules, a lender must automatically cancel borrower-paid PMI when the loan balance reaches what percentage of the original value (purchase price)?

8. An application for payment from the Guaranty Fund must be filed no later than:

9. The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

10. A licensee may accept compensation from more than one party to a transaction:

11. A built-in dishwasher attached to the cabinetry is best classified as:

12. Which rental unit is generally EXEMPT from DC rent stabilization?

13. Lenders commonly prefer a borrower's front-end (housing) ratio not to exceed _ and back-end (total debt) ratio not to exceed _ of gross monthly income.

14. A buyer earns $8,000 per month gross. Using a 28% front-end ratio, what is the maximum monthly housing payment (PITI)?

15. Which transfer is NOT a 'sale' under TOPA?

16. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

17. The physical characteristics of land are:

18. The owner-occupied exemption in the DC HRA applies to a building where the owner lives in one unit and which has accommodations for no more than:

19. A lease of a building to operate an illegal gambling business is:

20. A landlord sells an apartment building with tenants under 12-month leases. The leases:

21. Under DC's TOPA, before selling a housing accommodation, an owner must:

22. A lender's refusal to make loans in certain neighborhoods based on demographics is:

23. An individual who owns two single-family homes sells one through a licensed broker. Does the DC HRA single-family owner exemption apply?

24. A seller promises a buyer that the deck will be rebuilt after settlement. The seller's licensee may continue acting for the seller only if the promise is furnished to the buyer in writing at least:

25. A landlord refuses to rent to applicants who are enrolled in a university. This violates DC's protection based on:

Sources