Free District of Columbia Property Practice Test — LicenseIQ

Question 1

A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

Accepted Answer

In a gross lease the tenant pays flat rent and the landlord covers taxes, insurance and maintenance; in a net lease the tenant pays some or all of those expenses.

Question 2

The maximum the Real Estate Guaranty and Education Fund will pay on a single final judgment against a licensee is:

Accepted Answer

§42-1707(c) caps the payment at $50,000 for judgments final after the fifth year following March 10, 1983. Today that means $50,000.

Question 3

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 4

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 5

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 6

A title search shows owner A conveyed to B, but the next record shows C as owner with no deed from B. This is an example of:

Accepted Answer

Gaps in the chain or unreleased liens are clouds that must be cleared (e.g., by quitclaim deed or quiet title action) before title is marketable.

Question 7

The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Accepted Answer

Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Question 8

A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

Accepted Answer

The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.

Question 9

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 10

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 11

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 12

Adverse possession allows someone to acquire title by:

Accepted Answer

Adverse possession requires open, notorious, exclusive, continuous and hostile use for the statutory period. A tenant's possession is permissive, not hostile. (Reclassified to section 1 / CORE.)

Question 13

Which person must hold a DC real estate license?

Accepted Answer

Negotiating leases of other people's property for a fee is licensed activity. Owners, court fiduciaries, and rental-information providers are exempt under §47-2853.181.

Question 14

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 15

Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

Accepted Answer

When taxes are paid in arrears, the buyer will pay the full bill later, so the seller is charged (debit) and the buyer credited for the seller's portion.

Question 16

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 17

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 18

Besides the licensee members and the consumer member, the DC Board of Real Estate includes:

Accepted Answer

One seat goes to a DC-barred attorney who practices real estate law. Appraisers have their own separate Board of Real Estate Appraisers.

Question 19

A residential home sells for exactly $400,000. What is the DC deed transfer tax?

Accepted Answer

The lower 1.1% rate applies only when consideration is less than $400,000. At exactly $400,000 the rate is 1.45%, and 0.0145 × 400,000 = $5,800.

Question 20

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 21

Who is liable for DC deed transfer tax in the first instance?

Accepted Answer

§47-903(a), (c) imposes the tax on the transferor. The transferee is jointly and severally liable only if the transferor fails to pay.

Question 22

Before appointment, a member of the DC Board of Real Estate must have been a District resident for at least:

Accepted Answer

§47-2853.07(d)(1) requires real estate Board members to have lived in DC for at least 1 year before appointment and to remain residents while serving. The 5-year figure is the practice requirement, not the residency requirement.

Question 23

Under DC law, a real estate salesperson is a person who performs real estate activities:

Accepted Answer

§47-2853.171 defines a salesperson as someone employed by a licensed broker. A salesperson cannot operate independently.

Question 24

What is the total DC deed recordation tax rate on a $750,000 residential sale?

Accepted Answer

Residential deeds of $400,000 or more pay 1.1% plus the 0.35% additional tax, for 1.45% (§42-1103(a), (a-4)).

Question 25

Before placing a 'For Sale' sign on a property, a DC licensee must have:

Accepted Answer

§47-2853.197(a)(18) requires written consent for offering a property or placing a sign.

District of Columbia real estate property practice test

1. A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

2. The maximum the Real Estate Guaranty and Education Fund will pay on a single final judgment against a licensee is:

3. A property manager owes fiduciary duties primarily to the:

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

5. Who may perform an appraisal of real property for a lender?

6. A title search shows owner A conveyed to B, but the next record shows C as owner with no deed from B. This is an example of:

7. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

8. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

9. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

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

11. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

12. Adverse possession allows someone to acquire title by:

13. Which person must hold a DC real estate license?

14. The four unities required to create a joint tenancy are:

15. Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

16. Which document is recorded in the county records and makes the property collateral for a loan?

17. In a deed, the party conveying title is the and the party receiving title is the .

18. Besides the licensee members and the consumer member, the DC Board of Real Estate includes:

19. A residential home sells for exactly $400,000. What is the DC deed transfer tax?

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

21. Who is liable for DC deed transfer tax in the first instance?

22. Before appointment, a member of the DC Board of Real Estate must have been a District resident for at least:

23. Under DC law, a real estate salesperson is a person who performs real estate activities:

24. What is the total DC deed recordation tax rate on a $750,000 residential sale?

25. Before placing a 'For Sale' sign on a property, a DC licensee must have:

Sources