Free District of Columbia Contracts Practice Test — LicenseIQ

Question 1

A DC buyer brokerage agreement states no termination date. The brokerage relationship ends:

Accepted Answer

§47-2853.196(a) sets a 90-day default when no definite termination date is stated.

Question 2

An offer or counteroffer becomes a binding contract when:

Accepted Answer

Acceptance must be unconditional and communicated back to the offeror; any change creates a counteroffer instead.

Question 3

If the DC disclosure statement is delivered after the buyer signs the contract, the buyer may terminate by written notice within:

Accepted Answer

§42-1302(c) gives 5 calendar days after receipt. The 3-business-day period belongs to condo resale documents.

Question 4

A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

Accepted Answer

In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.

Question 5

After the buyer and seller sign a sales contract but before closing, the contract is:

Accepted Answer

A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).

Question 6

Which event terminates a listing agreement by operation (force) of law?

Accepted Answer

Agency ends by performance, expiration, mutual agreement, or situationally by force of law (bankruptcy, condemnation), death or incapacity, destruction of the property, or breach.

Question 7

An owner of a rented single-family house receives a written offer to buy and intends to sell. Under TOPA, the owner must give the tenant written notice within:

Accepted Answer

§42-3404.09(b)(1) requires notice within 3 calendar days of receiving or soliciting a written offer.

Question 8

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 9

A contract signed by a 17-year-old buyer is generally:

Accepted Answer

Contracts with minors are voidable at the minor's option; the adult party remains bound. A contract with someone adjudged insane is void.

Question 10

Under DC law, a listing contract to sell real estate must:

Accepted Answer

§47-2853.197(a)(19) requires a written listing with a definite termination date. §42-1705 bars commissions without a written listing.

Question 11

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 12

A contract clause stating that 'time is of the essence' means:

Accepted Answer

'Time is of the essence' makes performance by the stated dates essential; missing a deadline can be a breach.

Question 13

A contract that is missing an essential element, such as consideration, is:

Accepted Answer

Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.

Question 14

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 15

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 16

A party making an offer to buy is the ____, and the party receiving it is the ____.

Accepted Answer

The offeror makes the offer; the offeree receives it. When a counteroffer is made, the roles swap.

Question 17

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 18

In a corporate-owned 3-unit building covered by TOPA, tenants acting jointly have how long after receiving the offer to deliver a written statement of interest?

Accepted Answer

§42-3404.10(a)(1) gives joint tenants 15 days, then individual tenants 7 days.

Question 19

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 20

In an option to purchase, the seller who grants the option is the ____ and the option holder is the ____.

Accepted Answer

The seller (optionor) gives the option; the buyer (optionee) holds it. Only the optionor is bound during the option period, making it unilateral.

Question 21

On the same date the owner sends the offer of sale to tenants, the owner must also provide a copy to:

Accepted Answer

§42-3404.03(b)(2) requires delivery to the Mayor on the same date, along with a signed statement that each tenant received a copy.

Question 22

In a building of 5 or more units, a newly formed tenant organization must deliver its registration application to the Mayor and owner within how many days of receiving a valid offer?

Accepted Answer

§42-3404.11(1) allows 45 days, or 30 days if a qualifying tenant organization already exists. 120 days is the negotiation period.

Question 23

Under TOPA, may a tenant waive the right to receive an offer of sale?

Accepted Answer

§42-3404.07 bars waiving the right to receive an offer. Other TOPA rights may be waived only for consideration acceptable to the tenant.

Question 24

An owner offered tenants a building at $4,000,000. Which third-party contract price would require the owner to comply anew with TOPA?

Accepted Answer

Restart is required when the third-party price is more than 10% below the tenant price, meaning below $3,600,000. $3,560,000 is 11% below. $3,640,000 is 9% below, and the other prices are closer still.

Question 25

While a listed property is under contract, a DC seller's licensee is:

Accepted Answer

§47-2853.191(a)(2)(A) relieves the agent of any duty to seek more offers while under contract, unless agreed. The duty to present offers that do arrive continues.

District of Columbia real estate contracts practice test

1. A DC buyer brokerage agreement states no termination date. The brokerage relationship ends:

2. An offer or counteroffer becomes a binding contract when:

3. If the DC disclosure statement is delivered after the buyer signs the contract, the buyer may terminate by written notice within:

4. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

5. After the buyer and seller sign a sales contract but before closing, the contract is:

6. Which event terminates a listing agreement by operation (force) of law?

7. An owner of a rented single-family house receives a written offer to buy and intends to sell. Under TOPA, the owner must give the tenant written notice within:

8. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

9. A contract signed by a 17-year-old buyer is generally:

10. Under DC law, a listing contract to sell real estate must:

11. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

12. A contract clause stating that 'time is of the essence' means:

13. A contract that is missing an essential element, such as consideration, is:

14. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

15. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

16. A party making an offer to buy is the , and the party receiving it is the .

17. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

18. In a corporate-owned 3-unit building covered by TOPA, tenants acting jointly have how long after receiving the offer to deliver a written statement of interest?

19. Which is the most common and desirable way a real estate sales contract terminates?

20. In an option to purchase, the seller who grants the option is the and the option holder is the .

21. On the same date the owner sends the offer of sale to tenants, the owner must also provide a copy to:

22. In a building of 5 or more units, a newly formed tenant organization must deliver its registration application to the Mayor and owner within how many days of receiving a valid offer?

23. Under TOPA, may a tenant waive the right to receive an offer of sale?

24. An owner offered tenants a building at $4,000,000. Which third-party contract price would require the owner to comply anew with TOPA?

25. While a listed property is under contract, a DC seller's licensee is:

Sources