Free District of Columbia State Law Practice Test — LicenseIQ

Question 1

After a licensee is served with notice of a summary suspension, how long does the licensee have to request a hearing?

Accepted Answer

Under §47-2853.18(c), the licensee has 72 hours to request a hearing, the Board must hold it within 72 hours of the request, and the decision follows within 72 hours. The 15-day period is the notice for ordinary hearings.

Question 2

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 3

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 4

On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

Accepted Answer

Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.

Question 5

A DC salesperson may accept a commission for licensed activity only from:

Accepted Answer

§47-2853.197(a)(6) restricts payment to the salesperson's broker as of the time the fee was earned.

Question 6

A DC licensee has been on inactive status for 6 years and wants to practice again. Generally, the licensee must:

Accepted Answer

Under §47-2853.14(d), 5 or more years on inactive status makes the person a new applicant, unless the Board finds reasonable cause or excusable neglect. Under 5 years, the fee plus current CE is enough.

Question 7

After a brokerage relationship ends, unless otherwise agreed in writing, the licensee's continuing duties are to:

Accepted Answer

§47-2853.196(b) leaves only the duties to account and to maintain confidentiality.

Question 8

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 9

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 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

The DC licensing exemption for banks and similar institutions acting as fiduciaries does NOT extend to:

Accepted Answer

§47-2853.181(4) exempts banks, trust companies, savings institutions, and insurers acting as fiduciaries, 'except for title companies.'

Question 12

A licensee may release a client's personal and financial information obtained during the brokerage relationship when:

Accepted Answer

§§47-2853.191(a)(3) and .192(a)(3) require confidentiality unless the law provides otherwise or the client consents in writing. Confidentiality continues after the relationship ends.

Question 13

A professional member of the DC Board of Real Estate must have been actively engaged in the field for at least how long immediately before appointment?

Accepted Answer

Most DC boards require 3 years of practice, but §47-2853.07(d)(2) requires 5 years for professional members of the Board of Real Estate. That makes 3 years the tempting wrong answer.

Question 14

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

Question 15

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 16

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 17

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

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

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 20

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

Question 21

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 22

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 23

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 24

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 25

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

District of Columbia real estate state law practice test

1. After a licensee is served with notice of a summary suspension, how long does the licensee have to request a hearing?

2. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

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

4. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

5. A DC salesperson may accept a commission for licensed activity only from:

6. A DC licensee has been on inactive status for 6 years and wants to practice again. Generally, the licensee must:

7. After a brokerage relationship ends, unless otherwise agreed in writing, the licensee's continuing duties are to:

8. A licensee may manage property for an owner for a fee only if there is:

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

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

11. The DC licensing exemption for banks and similar institutions acting as fiduciaries does NOT extend to:

12. A licensee may release a client's personal and financial information obtained during the brokerage relationship when:

13. A professional member of the DC Board of Real Estate must have been actively engaged in the field for at least how long immediately before appointment?

14. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

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

16. A salesperson wants to buy a FSBO home for his own investment. He must:

17. A licensee representing the seller who learns the buyer will pay more than the offer must:

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. A broker received a 4.2% commission totaling $12,600. What was the sale price?

20. A salesperson receives an earnest money check from a buyer. The salesperson should:

21. Under an open listing, the seller owes a commission to:

22. 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:

23. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

24. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

25. A real estate licensee who is not an attorney may:

Sources