Free District of Columbia Agency Practice Test — LicenseIQ

Question 1

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 2

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 3

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 4

A landlord's agent leases an apartment for a 6-week term. The DC written disclosure of brokerage relationship:

Accepted Answer

§47-2853.196(d) exempts single or multifamily residential leases with terms under 2 months. Longer leases require disclosure in the application or lease, whichever comes first.

Question 5

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 6

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 7

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 8

A buyer's agent is paid from the seller's proceeds at settlement. Under DC law, this payment:

Accepted Answer

§47-2853.196(m) provides that paying or promising compensation does not create a brokerage relationship.

Question 9

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 10

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 11

A listing agent gives an unrepresented buyer a blank contract form and the names of three home inspectors. Under DC law, this:

Accepted Answer

§47-2853.191(c) lets a seller's licensee perform ministerial acts for a buyer without forming a relationship with the buyer or breaching duties to the seller.

Question 12

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 13

A listing agent wants to buy a client's property through a relative acting as a straw buyer, without telling the client. This is:

Accepted Answer

§47-2853.197(a)(12) prohibits purchasing, directly or through a straw party, without disclosing that fact to the party represented.

Question 14

In a residential transaction, which disclosure must a DC buyer's licensee make to the seller?

Accepted Answer

§47-2853.192(b) requires a buyer's licensee in a residential deal to disclose the buyer's intent to occupy as a principal residence. Price and personal financial information stay confidential.

Question 15

A seller is under contract when a second written offer arrives. The listing agent must:

Accepted Answer

§47-2853.191(a)(2)(B) requires timely presentation of all written offers, even when the property is already under contract. The agent simply has no duty to go looking for additional offers.

Question 16

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 17

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 18

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 19

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 20

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 21

Under the DC Seller Disclosure Act, the duty to complete and deliver the disclosure statement falls on:

Accepted Answer

§42-1311 imposes the duty on the transferor. The agent is liable only for knowingly acting in concert with the seller to commit fraud.

Question 22

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 23

A licensee and client sign a written contract specifically stating that the licensee acts as an independent contractor, not as an agent. The licensee's obligations are:

Accepted Answer

§42-1702(1A) gives an independent contractor only the duties agreed in the written contract, not the agency obligations of §42-1703(a)-(e).

Question 24

A broker assigns agent X to the seller and agent Y to the buyer in the same transaction, using designated representation. Who is the dual representative?

Accepted Answer

§47-2853.196(k) states that designated representatives serving one client each are not dual representatives, but the supervising broker is.

Question 25

An agent tells a buyer, 'I guarantee you'll make a 15% profit when you resell in two years.' Under DC law, this is:

Accepted Answer

§47-2853.197(a)(16) prohibits guaranteeing, or allowing anyone to guarantee, future profits from resale.

District of Columbia real estate agency practice test

1. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

2. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

3. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

4. A landlord's agent leases an apartment for a 6-week term. The DC written disclosure of brokerage relationship:

5. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

6. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

7. The best way to create an agency relationship is a(n):

8. A buyer's agent is paid from the seller's proceeds at settlement. Under DC law, this payment:

9. Which statement about dual agency is correct?

10. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

11. A listing agent gives an unrepresented buyer a blank contract form and the names of three home inspectors. Under DC law, this:

12. A material defect that a seller/agent must disclose is one that:

13. A listing agent wants to buy a client's property through a relative acting as a straw buyer, without telling the client. This is:

14. In a residential transaction, which disclosure must a DC buyer's licensee make to the seller?

15. A seller is under contract when a second written offer arrives. The listing agent must:

16. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

17. The client a broker represents is the:

18. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

19. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

20. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

21. Under the DC Seller Disclosure Act, the duty to complete and deliver the disclosure statement falls on:

22. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

23. A licensee and client sign a written contract specifically stating that the licensee acts as an independent contractor, not as an agent. The licensee's obligations are:

24. A broker assigns agent X to the seller and agent Y to the buyer in the same transaction, using designated representation. Who is the dual representative?

25. An agent tells a buyer, 'I guarantee you'll make a 15% profit when you resell in two years.' Under DC law, this is:

Sources