During a condo board dispute in Logan Circle, a broker is representing both the seller of a unit and a buyer interested in purchasing it. Before proceeding, what must the broker obtain from both parties?

Informed written consent to dual agency

An estoppel certificate from the board

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QUESTION 1 / 61Property Ownership, Land Use & InterestsEasy0/0

Two rowhouse owners in Shaw share a masonry wall built directly on the property line between their lots. What type of interest best describes each owner's right to use and maintain that shared wall?

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1. Two rowhouse owners in Shaw share a masonry wall built directly on the property line between their lots. What type of interest best describes each owner's right to use and maintain that shared wall?
- A. License
- B. Party wall easement
- C. Encroachment
- D. Easement in gross
Show answer & explanation
Answer: B
A wall built on the boundary line and shared by two adjoining owners creates a mutual right of use and maintenance in the other's portion of the wall, which is the classic party wall arrangement; an easement in gross benefits a person rather than adjoining land, and calling the shared wall an encroachment wrongly assumes it was built entirely on one owner's land without permission.
2. A rowhouse in Eckington sits on a landlocked interior lot that can only be reached through a shared alley behind neighboring properties. What right allows the owner to continue crossing that alley to reach a public street?
- A. License
- B. Easement by necessity
- C. Easement in gross
- D. Profit a prendre
Show answer & explanation
Answer: B
When a parcel has no other reasonable access to a public road except across neighboring land, the law implies an easement by necessity to prevent the lot from being landlocked; a mere license would be revocable at the neighbor's will and wouldn't guarantee lasting access.
3. A homeowner in Takoma wants to add a rear addition that would place her rowhouse closer to the side property line than current zoning setback rules allow, though the rest of the block already sits at that same distance. What zoning relief would she most likely pursue?
- A. Special exception
- B. Variance
- C. Rezoning
- D. Nonconforming use approval
Show answer & explanation
Answer: B
A variance is the relief sought when a specific dimensional rule like a setback would cause a hardship unique to the lot, and it is granted based on the lot's own characteristics rather than a change in permitted use; a special exception instead permits a use the zoning already contemplates under stated conditions, which isn't what's at issue with a setback.
4. During a condo board dispute in Logan Circle, a broker is representing both the seller of a unit and a buyer interested in purchasing it. Before proceeding, what must the broker obtain from both parties?
- A. A signed release of liability
- B. A subordination agreement
- C. Informed written consent to dual agency
- D. An estoppel certificate from the board
Show answer & explanation
Answer: C
Representing both sides of the same transaction creates a dual agency, and because that arrangement limits full undivided loyalty to either party, the broker must disclose it and secure informed written consent before continuing; an estoppel certificate from the condo board addresses assessment status, not the agency relationship itself.
5. Two agents both showed the same Adams Morgan rowhouse to a buyer weeks apart, and only the second agent's showing led directly to the accepted offer. In a commission dispute, which concept determines who is entitled to the commission?
- A. Estoppel
- B. Procuring cause
- C. Ratification
- D. Ministerial acts
Show answer & explanation
Answer: B
Procuring cause identifies which agent's efforts set in motion the uninterrupted chain of events that actually led to the sale, so the agent whose showing directly resulted in the accepted offer is typically the one entitled to the commission; ministerial acts refer to routine tasks an agent performs without exercising judgment, which has no bearing on who earned the commission.
6. A managing broker in the District wants two of her affiliated salespeople to each act exclusively for one side of the same sale—one solely for the seller, one solely for the buyer—so that neither licensee owes any duty to the other party's client. Which agency relationship accomplishes this?
- A. Designated agency
- B. Cooperative brokerage
- C. Implied agency
- D. Dual agency
Show answer & explanation
Answer: A
This arrangement is designated agency: the broker names separate, individual licensees within the firm to represent the seller and the buyer, and each one owes full fiduciary duties only to their own assigned client. Dual agency instead has a single licensee (or the broker personally) representing both sides at once, which is what this arrangement is specifically structured to avoid.
7. Siblings who inherited a Mount Pleasant rowhouse from their late father want to clear up an old, questionable claim on the title from a decades-old unresolved lien before selling. Which type of deed would one sibling use to release any interest to another sibling without making any promises about the title's condition?
- A. Quitclaim deed
- B. General warranty deed
- C. Special warranty deed
- D. Grant deed
Show answer & explanation
Answer: A
A quitclaim deed conveys whatever interest the grantor may have, if any, without making any warranties about the title's quality, which makes it useful for clearing up an uncertain claim between family members; a general warranty deed would instead require the grantor to promise the title is free of defects, an assurance nobody can honestly make about a questionable old lien.
8. A purchase contract for a condo unit in Navy Yard states that closing cannot occur until the condo board formally approves the buyer's application to purchase. What kind of provision is this approval requirement?
- A. A subordination clause
- B. An addendum
- C. An estoppel provision
- D. A contingency
Show answer & explanation
Answer: D
A contingency is a condition that must be satisfied before the parties are obligated to close, and requiring board approval before the sale can proceed fits that definition exactly; an estoppel provision instead relates to a certification of an account's status, such as assessments owed, which is a different document entirely.
9. A seller of a one-of-a-kind converted carriage house in Georgetown backs out of an accepted contract simply because a later, higher offer came in. The disappointed buyer wants the court to force the sale to go through rather than accept money damages. What remedy is the buyer seeking?
- A. Specific performance
- B. Rescission
- C. Compensatory damages
- D. Reformation
Show answer & explanation
Answer: A
Because real property is considered legally unique, courts will sometimes order specific performance, compelling the breaching seller to actually complete the sale, rather than limiting the buyer to money damages that may not adequately replace a one-of-a-kind property; rescission instead unwinds the contract entirely and returns the parties to their pre-contract positions, which is the opposite of what the buyer wants here.
10. Priya is financing the purchase of a rowhouse in Petworth with a $414,900 loan, and her lender is charging 2.2 points at closing. How much will Priya owe in points?
- A. $8,298.00
- B. $9,127.80
- C. $9,542.70
- D. $4,149.00
Show answer & explanation
Answer: B
Each point equals one percent of the loan amount, so multiplying $414,900 by 2.2 percent gives the correct points charge; mistakenly using only one point, rounding the rate up to 2.3 percent, or rounding it down to 2.0 percent each produce a plausible-looking but incorrect total.
11. A buyer purchasing a condo in Navy Yard is putting down less than 20 percent of the purchase price on a conventional loan. What additional cost should she expect her lender to require?
- A. An impound reserve for HOA dues
- B. A second deed of trust
- C. A prepayment penalty
- D. Private mortgage insurance
Show answer & explanation
Answer: D
Conventional lenders typically require private mortgage insurance when the down payment falls below twenty percent of the purchase price, since a smaller down payment represents greater risk to the lender if the borrower defaults; a prepayment penalty is a separate optional loan feature tied to paying off a loan early, not to the size of the down payment.
12. A homeowner refinancing her Truxton Circle rowhouse signs loan documents naming a neutral third party, the trustee, who holds legal title as security until the loan is repaid, with a power of sale if she defaults. What financing instrument is this?
- A. A promissory note alone
- B. A traditional mortgage
- C. A deed of trust
- D. A land contract
Show answer & explanation
Answer: C
A deed of trust involves three parties, the borrower, lender, and a neutral trustee who holds title as security and can exercise a power of sale upon default, which distinguishes it from a traditional two-party mortgage where the lender itself holds the lien and typically must foreclose through the courts; a promissory note is merely the borrower's promise to repay and doesn't by itself create this trustee arrangement.
13. A small condo building in Navy Yard generates net operating income of $69,300 per year. If investors in that submarket are pricing similar buildings at a 6.6% capitalization rate, what value does the income approach indicate for this property?
- A. $693,000
- B. $990,000
- C. $1,155,000
- D. $1,050,000
Show answer & explanation
Answer: D
The income approach divides net operating income by the capitalization rate, and $69,300 divided by 0.066 equals $1,050,000; applying a 7 percent or 6 percent rate instead of the stated 6.6 percent produces the two other distractor values, and simply shifting a decimal point produces the smallest, clearly implausible figure.
14. In preparing a comparative market analysis for a two-bedroom condo in Shaw, an agent finds a recently sold comparable unit with an extra half bathroom that the subject unit lacks. How should the agent adjust for this difference?
- A. Disqualify the comparable from use entirely
- B. Add value to the subject property for the missing bathroom
- C. Subtract value from the comparable's sale price for its extra feature
- D. Ignore the difference since both are two-bedroom units
Show answer & explanation
Answer: C
When a comparable has a feature the subject property lacks, its sale price is adjusted downward to remove the value attributable to that extra feature, so the comparable better reflects what the subject property would likely sell for; adding value to the subject instead of adjusting the comparable would double-count the difference in the wrong direction.
15. Managing a small portfolio of rental rowhouses in Congress Heights, a licensed property manager deposits tenants' security deposits into the same personal checking account he uses to pay his own credit card bill. What violation has he most likely committed?
- A. Breach of the statute of frauds
- B. Unlicensed practice
- C. Commingling of client funds
- D. Fraudulent misrepresentation
Show answer & explanation
Answer: C
Commingling occurs when a licensee mixes client trust funds, such as tenant security deposits, with personal or operating funds instead of keeping them in a separate trust account, which violates the requirement to keep client money safeguarded and separate; fraudulent misrepresentation instead involves a false statement made to induce a transaction, a different kind of violation from mishandling deposited funds.
16. A newly licensed salesperson working under a Shaw brokerage begins independently negotiating contract terms with clients without the broker's knowledge or review. What responsibility has the broker most likely failed to fulfill?
- A. Reasonable supervision of licensed salespersons
- B. Providing agency disclosure at first contact
- C. Maintaining a trust account
- D. Cooperating with other brokers on compensation
Show answer & explanation
Answer: A
Brokers are responsible for reasonably supervising the salespersons who work under their license, including reviewing contracts and client communications, and allowing a new salesperson to negotiate unsupervised falls short of that supervisory duty; maintaining a trust account is a separate broker obligation concerning how deposited funds are held, not how salespersons' negotiations are overseen.
17. "We just don't think this unit works well for young children" an Anacostia rental agent tells a family with three kids under age ten while declining their application, even though the building isn't a designated senior housing community. What Fair Housing issue does this raise?
- A. A steering violation
- B. A blockbusting violation
- C. A permissible business decision unrelated to fair housing
- D. Familial status discrimination
Show answer & explanation
Answer: D
The Fair Housing Act protects families with children under age eighteen from housing discrimination, so refusing to rent based on concerns tied to having young children constitutes familial status discrimination unless the property qualifies for a recognized senior housing exemption, which this unit does not; this isn't a permissible business decision because noise concerns based on assumptions about children fall squarely within protected familial status.
18. A mortgage underwriter automatically counts an applicant's child-support payments as zero income when calculating her debt ratio, without ever asking whether those payments are reliably and regularly received, simply because the money comes from a support order rather than an employer. Which federal law does this practice most likely violate?
- A. The Fair Housing Act
- B. The Truth in Lending Act
- C. The Real Estate Settlement Procedures Act
- D. The Equal Credit Opportunity Act
Show answer & explanation
Answer: D
The Equal Credit Opportunity Act (and its implementing Regulation B) bars creditors from automatically discounting or excluding alimony, child-support, or public-assistance income; a lender must instead evaluate whether that income is reliably received before deciding how much weight to give it. The Fair Housing Act addresses discrimination in housing based on protected classes generally, but it isn't the law governing how a lender must underwrite a specific income source in a credit decision.
19. "I turned 17 last month, and I'm ready to start my real estate career today" an ambitious teenager tells a DC prelicensing course instructor. Based on DC's licensing eligibility requirements, what is the outcome for her application?
- A. Age is not a factor in DC salesperson licensing eligibility
- B. She may apply now and take required coursework before turning 18
- C. She is not yet eligible because DC requires salesperson license applicants to be at least 18 years old
- D. She may apply if a licensed parent co-signs the application
Show answer & explanation
Answer: C
DC requires license applicants to meet a minimum age threshold of 18, so someone who is still 17 does not yet meet that baseline eligibility requirement regardless of other qualifications like education or a co-signing relative; no provision allows a parent's co-signature to substitute for meeting the age requirement itself.
20. A DC salesperson wants to know when her active license will expire if it is not renewed. Under DC's license renewal cycle, licenses expire on a set date occurring every two years. Which of the following correctly reflects that cycle?
- A. Licenses expire every three years on a rolling anniversary date
- B. Licenses expire annually every December 31
- C. Licenses never expire once issued and active
- D. Licenses expire every two years, with salesperson licenses expiring August 31 of odd-numbered years
Show answer & explanation
Answer: D
DC structures its real estate license renewal on a two-year cycle, with salesperson licenses set to expire on August 31 of odd-numbered years, meaning licensees must track that specific date rather than assuming an annual or indefinite renewal schedule; treating the license as never expiring would leave a licensee unknowingly practicing on a lapsed license.
21. A consumer harmed by a DC-licensed broker's fraudulent handling of a real estate transaction seeks compensation beyond what she can recover from the broker directly. What DC-specific resource exists to help compensate consumers in situations like this?
- A. The Multiple Listing Service arbitration board
- B. A federal HUD compensation program
- C. The Real Estate Guaranty and Education Fund
- D. The broker's professional liability insurer only
Show answer & explanation
Answer: C
DC maintains a Real Estate Guaranty and Education Fund intended to help compensate consumers who suffer certain losses from a licensee's wrongful conduct and cannot fully recover from the licensee alone, functioning similarly to recovery funds found in other jurisdictions; a Multiple Listing Service arbitration board instead resolves disputes between cooperating brokers over matters like commissions, not consumer compensation claims.
22. After leaving her firm, a licensed DC salesperson begins soliciting listings directly from homeowners and plans to negotiate and close the sales herself, with no broker reviewing her contracts or holding any funds on her behalf. Which statement best reflects DC license law on this plan?
- A. It is lawful only for rental transactions
- B. It is lawful once she completes 40 hours of post-licensing coursework
- C. It is unlawful; a salesperson must remain affiliated with and supervised by a licensed broker to practice
- D. It is unlawful unless she has held an active license for at least three years
Show answer & explanation
Answer: C
A DC real estate salesperson's license only authorizes activity while she is affiliated with and supervised by a licensed broker, who bears ultimate responsibility for the transaction and for client protection. No amount of extra coursework or years of experience lets a salesperson practice independently, and the affiliation requirement isn't limited to sales versus rental transactions.
23. An out-of-state broker with no DC license wants to represent a seller in a transaction involving a rowhouse physically located in DC. Under general licensing principles applied by the DC Real Estate Commission, what is required?
- A. The broker only needs to register the transaction with the MLS
- B. The transaction generally requires involvement of a DC-licensed broker
- C. The broker may proceed as long as the seller consents in writing
- D. Nothing further, since the broker is licensed in another jurisdiction
Show answer & explanation
Answer: B
Because real estate licensing authority is jurisdiction-specific, a broker without a DC license generally cannot independently perform licensed brokerage activities for property located in DC, and the transaction typically requires the involvement of a broker actually licensed in DC to ensure the activity falls under the Commission's regulatory oversight; simply obtaining the seller's written consent does not substitute for the licensure the jurisdiction itself requires.
24. A licensed DC salesperson is found to have used unlicensed friends to perform tasks that require a real estate license, such as negotiating contract terms directly with clients on her behalf. What violation has occurred?
- A. A violation solely involving the friends, with no exposure for the salesperson
- B. A minor advertising violation only
- C. No violation, since the salesperson maintains overall responsibility
- D. Facilitating unlicensed practice, exposing both the salesperson and her unlicensed associates to liability
Show answer & explanation
Answer: D
Allowing unlicensed individuals to perform activities that legally require licensure, such as negotiating contract terms with clients, constitutes facilitating unlicensed practice, and the licensee who enabled it bears responsibility alongside the unlicensed individuals who performed the restricted activity; assuming the salesperson faces no exposure ignores that a licensee cannot delegate licensed functions to someone without a license and escape accountability.
25. A condo bylaws document in Navy Yard assigns a specific parking space and a storage cage to one unit but reserves the lobby and elevators for use by all owners. How should the parking space and storage cage be classified?
- A. Unit boundaries
- B. Limited common elements
- C. General common elements
- D. Fee simple appurtenances
Show answer & explanation
Answer: B
Elements like a designated parking space or storage cage that are restricted to one unit's exclusive use, yet remain outside the unit's own walls, are limited common elements, distinct from general common elements such as lobbies and elevators that every owner may use equally.
26. Transferring his interest in a Deanwood rowhouse as part of his estate plan, a grandfather deeds it 'to my son for my wife's life, then to my granddaughter.' While the wife is alive, what interest does the granddaughter hold?
- A. Life estate pur autre vie
- B. Fee simple determinable
- C. Remainder interest
- D. Leasehold estate
Show answer & explanation
Answer: C
Because the granddaughter's right to possess the property only becomes effective after the measuring life estate ends, she holds a future interest known as a remainder; it is the son, not the granddaughter, whose interest is a life estate pur autre vie, since his right to possess is measured by his mother's lifespan rather than his own.
27. For many years, well beyond what state law requires, a Brookland homeowner has openly maintained and used a strip of her neighbor's yard behind a fence she built without permission, and the neighbor never objected. Which doctrine might allow her to eventually claim legal title to that strip?
- A. Eminent domain
- B. Constructive notice
- C. Riparian doctrine
- D. Adverse possession
Show answer & explanation
Answer: D
Open, continuous, and hostile use of another's land without permission for the period the law requires can ripen into ownership under adverse possession; eminent domain instead describes a government taking with compensation, which has nothing to do with a private neighbor dispute over a fence line.
28. A buyer is evaluating a property whose rear boundary runs along the Anacostia River. Which term describes the buyer's rights to use the water bordering that land?
- A. Riparian rights
- B. Littoral rights
- C. Subjacent rights
- D. Lateral support rights
Show answer & explanation
Answer: A
Riparian rights apply to land bordering a flowing waterway like a river, giving the owner reasonable access to and use of the water along the boundary; littoral rights instead concern land bordering non-flowing bodies of water such as lakes or oceans, so it doesn't fit a riverside parcel.
29. While listing a rowhouse in Bloomingdale that needs renovation, an agent steers the seller toward hiring the agent's brother-in-law's contracting company without mentioning the relationship or getting competing bids. Which fiduciary duty has the agent most clearly failed to honor?
- A. Obedience
- B. Confidentiality
- C. Accounting
- D. Loyalty
Show answer & explanation
Answer: D
Loyalty requires an agent to act solely in the client's best interest and avoid undisclosed conflicts of interest, so quietly steering work toward a relative's business without disclosure puts the agent's own interests ahead of the seller's; obedience instead concerns following the client's lawful instructions, which isn't the issue here since the seller never authorized this arrangement.
30. During a new-agent training session, a Shaw brokerage's manager reviews a sample contract stating that the firm earns its commission if the property sells during the listing term no matter who procures the buyer, even the seller herself. Which listing type is the manager describing?
- A. Exclusive agency listing
- B. Open listing
- C. Net listing
- D. Exclusive right-to-sell listing
Show answer & explanation
Answer: D
An exclusive right-to-sell listing entitles the broker to a commission on any sale during the term regardless of who procures the buyer, even the seller; an exclusive agency listing would still let the seller sell on her own without owing a commission, which contradicts the facts given.
31. A buyer working with an agent who represents only the buyer's interests, with no duty owed to the seller, has engaged what kind of representation?
- A. Buyer's agency
- B. Subagency
- C. Transaction brokerage
- D. Facilitator representation
Show answer & explanation
Answer: A
Buyer's agency means the agent's fiduciary duties run exclusively to the buyer, with no obligation of loyalty to the seller; subagency, by contrast, describes an arrangement where an agent working with the buyer actually still owes fiduciary duties to the seller, which is the opposite of what's described.
32. An exclusive listing agreement on a Capitol Hill rowhouse expires at midnight on its stated end date without being renewed. What happens to the broker's agency authority to market the property?
- A. It continues until the seller cancels in writing
- B. It automatically terminates
- C. It converts to an open listing
- D. It extends for a statutory grace period
Show answer & explanation
Answer: B
Agency authority created by a listing agreement ends automatically when the agreement's stated term expires, since the contract itself defined the scope and duration of the broker's authority; nothing converts it into a different listing type or extends it without a new agreement, because expiration is a clean termination event.
33. To close a hesitant buyer on a Fort Dupont rowhouse, a newly licensed salesperson falsely assures her that the roof was replaced last year, and the buyer later sues after discovering leaks. Under agency law, who can typically be held liable for the salesperson's misrepresentation?
- A. Only the salesperson personally
- B. Only the seller who owned the property
- C. The salesperson's supervising broker as well as the salesperson
- D. No one, since the buyer should have hired an inspector
Show answer & explanation
Answer: C
Because a salesperson acts under a broker's license and supervision, the broker can be held vicariously liable for misrepresentations the salesperson makes within the scope of the agency relationship, in addition to the salesperson's own liability; the buyer's failure to hire an inspector doesn't erase liability for an affirmative false statement that was made.
34. Before signing a contract to purchase a fixer-upper rowhouse in Bloomingdale, the buyer wants the deal to fall through without penalty if her lender denies the loan. What contract provision should be included?
- A. A due-on-sale clause
- B. A financing contingency
- C. A time-is-of-the-essence clause
- D. An acceleration clause
Show answer & explanation
Answer: B
A financing contingency lets the buyer cancel and recover her earnest money if she cannot secure the described loan by a set deadline, protecting her from being forced to close or forfeit funds; an acceleration clause instead deals with a lender demanding immediate repayment of an existing loan, which has nothing to do with a purchase contract.
35. A developer who converted a former apartment building in Navy Yard into condos sells one unit and warrants only that no title defects arose during the developer's own period of ownership. What kind of deed did the developer most likely convey?
- A. Bargain and sale deed without covenants
- B. Quitclaim deed
- C. Special warranty deed
- D. General warranty deed
Show answer & explanation
Answer: C
A special warranty deed limits the grantor's guarantee to defects arising only during that grantor's own ownership, which fits a developer unwilling to vouch for the building's entire history; a general warranty deed would instead promise against title defects from all prior owners going back through the chain of title, a broader guarantee than described.
36. A rowhouse owner in Mount Pleasant verbally promises a neighbor that he will sell her his house for a set price next spring, and both shake hands on it. If the owner later refuses to go through with the sale, what legal doctrine most likely prevents the neighbor from enforcing the promise?
- A. Doctrine of laches
- B. Statute of frauds
- C. Parol evidence rule
- D. Mutual mistake
Show answer & explanation
Answer: B
The statute of frauds requires contracts for the sale of real property to be in writing and signed to be enforceable, so a purely verbal handshake agreement generally cannot be enforced in court even if both parties clearly intended to be bound; the parol evidence rule instead governs whether outside statements can modify a written contract's terms, which doesn't apply since no written contract exists here.
37. "If I back out for any reason no contingency covers, the deposit is yours and that's the end of it" reads a clause in a buyer's contract for a Marshall Heights rowhouse regarding her earnest money. After she later defaults exactly that way, what is this deposit-forfeiture provision called?
- A. An acceleration clause
- B. A liquidated damages clause
- C. An indemnification clause
- D. A specific performance clause
Show answer & explanation
Answer: B
A liquidated damages clause sets, in advance, a predetermined amount the seller may keep as compensation for the buyer's default, and when it is designated as the sole remedy it prevents the seller from also suing for greater actual damages; specific performance instead is a court order forcing the defaulting party to complete the purchase, which is the opposite remedy from simply keeping a deposit.
38. A buyer purchases a rowhouse in Woodley Park but delays recording the deed for several weeks. During that gap, the same seller fraudulently deeds the same property to a second, unsuspecting buyer who records immediately. Why does prompt recording matter so much in this scenario?
- A. Recording transfers equitable title to legal title
- B. Recording establishes public notice and priority against later claimants
- C. Recording is required to make a deed legally valid between the original parties
- D. Recording eliminates the need for title insurance
Show answer & explanation
Answer: B
Recording a deed puts the public on notice of the transfer and generally establishes priority among competing claims to the same property, so delaying it can leave a buyer vulnerable to a later purchaser who records first; a deed is actually valid between the original grantor and grantee upon delivery even without recording, so recording isn't what makes it valid in the first place.
39. Marcus is buying a rowhouse in Anacostia for $194,000 and plans to put $48,500 down. What loan-to-value ratio will the lender calculate for his loan?
- A. 25%
- B. 75%
- C. 60%
- D. 80%
Show answer & explanation
Answer: B
Loan-to-value compares the loan amount, not the down payment, to the purchase price, so subtracting the $48,500 down payment from the $194,000 price leaves a $145,500 loan, which is seventy-five percent of the price; dividing the down payment itself by the price instead produces the down payment percentage, a different and much smaller figure that is easy to confuse with LTV.
40. Having already paid the full year's property tax bill on her Woodley Park rowhouse before listing it, a seller closes the sale in late September. How should this be handled on the settlement statement?
- A. The taxing authority refunds the buyer's share directly
- B. The seller absorbs the entire cost since taxes were already paid
- C. The buyer pays the seller nothing since taxes are a seller expense
- D. The buyer credits the seller for the portion of the year the buyer will own the home
Show answer & explanation
Answer: D
Because the seller already paid for the full year but will only own the home for part of it, prorating the taxes means the buyer reimburses the seller for the days from closing through year-end that the buyer will actually benefit from having taxes prepaid; simply letting the seller absorb the whole cost would unfairly give the buyer a free ride for months of the year she didn't pay for.
41. A lender advertises a low interest rate for a mortgage without disclosing the annual percentage rate that includes finance charges. What federal consumer protection concern does this advertisement most likely raise?
- A. A Fair Housing Act violation
- B. An antitrust violation
- C. A RESPA kickback violation
- D. A Truth in Lending Act disclosure violation
Show answer & explanation
Answer: D
The Truth in Lending Act requires lenders to disclose the annual percentage rate and finance charges so consumers can accurately compare loan costs, so advertising a bare interest rate while omitting that required disclosure raises a Truth in Lending concern; RESPA instead addresses referral fees and kickbacks in settlement services, a different issue from advertised loan terms.
42. What term applies when a lender collects extra funds each month along with mortgage payments on a Brightwood condo, holding them in reserve to pay the annual property tax bill and hazard insurance premium as each comes due?
- A. A subordination account
- B. A curtailment account
- C. An escrow or impound account
- D. A reserve for replacement fund
Show answer & explanation
Answer: C
An escrow or impound account lets a lender collect a portion of anticipated annual property tax and insurance costs with each monthly payment, then pay those bills directly when they come due, protecting the lender's collateral from tax liens or lapsed insurance; a reserve for replacement fund instead is a condo association concept for future capital repairs, unrelated to an individual borrower's tax and insurance payments.
43. A converted rowhouse fourplex in Trinidad recently sold for $291,200, with all four units together renting for a combined $2,080 per month. What is the property's gross rent multiplier?
- A. 14.0
- B. 1,400
- C. 140
- D. 11.67
Show answer & explanation
Answer: C
Gross rent multiplier is calculated by dividing the sale price by the monthly gross rent, and $291,200 divided by $2,080 equals 140; using the annual rent figure instead of monthly rent in the denominator, or misplacing a decimal point, produces the other distractor values shown.
44. An appraiser evaluating a small, aging rowhouse on an oversized lot in Petworth surrounded by newly built multi-unit condo buildings must decide what use of the land the market would actually support and pay the most for. What appraisal concept is the appraiser applying?
- A. Plottage
- B. Substitution
- C. Highest and best use
- D. Progression
Show answer & explanation
Answer: C
Highest and best use asks what legally permissible, physically possible, and financially feasible use of a site would produce the greatest value, which is exactly the question the appraiser faces when a modest rowhouse sits on land that redevelopment might make far more valuable; plottage instead describes the added value from assembling adjacent lots into one larger parcel, which isn't the scenario described here.
45. A rowhouse in Cleveland Park has only one bathroom located on the third floor, making it inconvenient for a family living mostly on the lower two levels. How would an appraiser most likely classify this design issue when adjusting value?
- A. Functional obsolescence
- B. Economic obsolescence
- C. External obsolescence
- D. Physical deterioration
Show answer & explanation
Answer: A
Functional obsolescence refers to a loss in value caused by outdated or impractical design within the property itself, such as an awkwardly placed bathroom, regardless of the building's physical condition; economic obsolescence instead comes from negative influences outside the property, like a declining neighborhood or nearby industrial use, which isn't what's described here.
46. To value a brand-new mid-rise condo building in Navy Yard for insurance purposes, an appraiser estimates the current cost to construct an identical building, then subtracts depreciation and adds the land value separately. Which appraisal approach is being used?
- A. Income approach
- B. Cost approach
- C. Sales comparison approach
- D. Gross rent multiplier approach
Show answer & explanation
Answer: B
The cost approach estimates value by calculating the current cost to reproduce or replace the improvements, subtracting depreciation, and adding the land value, which fits this scenario precisely and is especially useful for new or unique buildings that lack many comparable sales; the sales comparison approach instead relies on adjusting recent sale prices of similar properties, which is not what's being described here.
47. While renovating a rowhouse she is selling in Bloomingdale, a seller learns her contractor found significant foundation cracking that was patched over rather than properly repaired. What is the seller's best course of action regarding prospective buyers?
- A. Let the home inspector discover it independently
- B. Say nothing since the defect is now covered up
- C. Disclose the known material defect to prospective buyers
- D. Disclose only if a buyer specifically asks about the foundation
Show answer & explanation
Answer: C
A known material defect that could affect a buyer's decision or the property's value generally must be disclosed regardless of whether the buyer happens to ask about it, since sellers cannot rely on a defect being hidden or hope an inspector happens to catch it; waiting for a specific question or hoping for an inspector's discovery both risk leaving the seller liable for concealing a known problem.
48. "Let's all just stick to the same six percent so nobody undercuts anybody" one broker suggests in a private group chat with several competing firms serving the same DC neighborhoods. What legal problem does this arrangement create?
- A. A breach of fiduciary duty to their own clients
- B. A violation of fair housing law
- C. An antitrust price-fixing violation
- D. A violation of the statute of frauds
Show answer & explanation
Answer: C
Competitors agreeing among themselves to charge uniform prices is price fixing, a per se antitrust violation because it eliminates the price competition that should otherwise exist between independent brokerages; fair housing law instead addresses discrimination against protected classes, which is an entirely separate legal concern from how competitors set their commission rates.
49. A rowhouse in Eckington was built well before 1978 and is being listed for sale. What federal disclosure obligation applies to the seller and listing agent because of the home's age?
- A. Disclosure of radon testing results
- B. Disclosure of known lead-based paint hazards
- C. Disclosure of asbestos insulation only
- D. No special disclosure applies regardless of age
Show answer & explanation
Answer: B
Federal law requires sellers and agents of housing built before 1978 to disclose any known lead-based paint hazards and provide buyers an information pamphlet and an opportunity to test, because lead paint was commonly used in residential construction until it was banned that year; there is no comparable nationwide mandatory disclosure requirement specifically tied to asbestos or radon testing results triggered purely by a home's age.
50. To generate quick leads, a salesperson posts an online classifieds ad for an Ivy City rowhouse using only her first name and personal cell number, without mentioning her brokerage or her status as a licensed real estate professional. What advertising problem does this create?
- A. It violates fair housing advertising rules
- B. It constitutes an unlicensed practice violation
- C. It is a prohibited blind advertisement
- D. It is a breach of the statute of frauds
Show answer & explanation
Answer: C
An advertisement that fails to identify the licensee's brokerage or disclose that the person advertising is acting in a licensed real estate capacity is generally considered a blind ad, which regulators prohibit because it can mislead consumers about who they're actually dealing with; this is a licensing and advertising rule violation rather than a fair housing issue, since nothing in the ad concerns protected classes.
51. A rowhouse in Anacostia was the site of a widely publicized violent crime several years ago, though the property itself has no physical defects. When listing the home, how should an agent typically approach this history with prospective buyers?
- A. Refuse to answer any questions about the property's history
- B. Always disclose it regardless of whether it's a material fact under applicable law
- C. Follow the standard applicable to whether such stigma facts must be disclosed, and answer honestly if directly asked
- D. Only disclose it to buyers who are relocating from out of state
Show answer & explanation
Answer: C
Stigmatized property facts, like a past crime unrelated to the physical condition of the home, are treated differently across jurisdictions regarding whether disclosure is mandatory, so agents should know and follow the applicable standard while avoiding dishonesty if a buyer directly asks; refusing to answer any question at all risks its own ethical problems distinct from whatever the disclosure standard requires.
52. An agent working with a family shows them condo listings only in certain Northeast neighborhoods and steers them away from other DC neighborhoods based on assumptions about where the family would feel comfortable given their race. What Fair Housing violation is this?
- A. Retaliation
- B. Blockbusting
- C. Redlining
- D. Steering
Show answer & explanation
Answer: D
Steering occurs when an agent directs homebuyers toward or away from particular neighborhoods based on a protected characteristic like race, limiting their housing choices rather than presenting the full range of options that meet their needs and budget; redlining instead describes lenders or insurers denying services to entire areas based on the demographics of residents there, which is a different actor and a different act from an agent's showing decisions.
53. "My emotional support cat helps manage my documented anxiety disorder, and I need to keep her despite the no-pets rule" a Petworth condo resident tells the building's board. How should the board most likely respond under fair housing law?
- A. Require the resident to pay an additional pet deposit before approval
- B. Grant a reasonable accommodation allowing the service animal
- C. Approve it only if a majority of unit owners vote in favor
- D. Deny the request since the policy applies uniformly to all residents
Show answer & explanation
Answer: B
Fair housing law requires granting reasonable accommodations for residents with disabilities, and an assistance or service animal is generally treated as a necessary accommodation rather than a pet, meaning a no-pets policy or added pet deposit cannot lawfully be applied to block it; requiring a board-wide vote also misapplies the individual accommodation right to what should be an individualized approval process.
54. An agent repeatedly tells homeowners in a Petworth block that property values are about to plummet because families of a different race are moving into the area, encouraging them to sell quickly and below market value. What Fair Housing violation is this agent committing?
- A. Redlining
- B. Disparate impact discrimination
- C. Steering
- D. Blockbusting
Show answer & explanation
Answer: D
Blockbusting involves inducing owners to sell by exploiting fear that the racial or ethnic composition of the neighborhood is changing, often for the agent's own profit through a wave of resulting sales and listings; steering instead involves directing buyers toward or away from areas, which is a different act aimed at a different party than pressuring existing homeowners to sell.
55. A bank's internal lending maps consistently mark certain DC neighborhoods with lower-income and predominantly minority populations as ineligible for standard mortgage products, regardless of individual applicants' creditworthiness. What discriminatory practice does this describe?
- A. Disparate treatment of a single applicant
- B. Blockbusting
- C. Steering
- D. Redlining
Show answer & explanation
Answer: D
Redlining occurs when a lender denies or limits services to an entire geographic area based on the racial or economic composition of its residents rather than evaluating individual applicants on their own merits, which matches a policy of marking whole neighborhoods ineligible; disparate treatment of a single applicant instead refers to one individual being treated worse than similarly situated others, not a blanket area-wide policy like this one.
56. A salesperson in DC continues showing properties and negotiating offers for clients after her license has lapsed because she forgot to renew it by the applicable expiration date. What is the legal status of her continued real estate activity?
- A. It remains valid as long as she renews within the following calendar year
- B. It constitutes practicing without a valid license, exposing her to disciplinary action
- C. It is only a problem if a client complains
- D. It is permitted temporarily while her renewal application is pending
Show answer & explanation
Answer: B
Once a license lapses without timely renewal, continuing to perform activities that require licensure, such as negotiating offers for clients, amounts to practicing without a valid license, which exposes the individual to disciplinary action by the licensing authority regardless of whether any client happens to complain; simply intending to renew later doesn't retroactively legitimize activity conducted while unlicensed.
57. A prospective buyer in DC files a formal complaint alleging that a licensed salesperson misrepresented material facts about a rowhouse's renovation history. Which entity has authority to investigate the complaint and discipline the salesperson if warranted?
- A. The District of Columbia Real Estate Commission
- B. The Multiple Listing Service
- C. The buyer's own title company
- D. The National Association of Realtors
Show answer & explanation
Answer: A
The District of Columbia Real Estate Commission is the governmental body charged with overseeing licensees, investigating complaints, and imposing discipline for violations of license law within the District; a private trade association or a title company has no authority to investigate licensee misconduct or impose license discipline, since that power belongs to the state regulatory body.
58. A DC broker discovers that a salesperson working under her deposited a buyer's earnest money check into the salesperson's personal checking account instead of the brokerage's trust account. What should the broker's next step be regarding DC license law?
- A. Allow the salesperson to keep the funds there until closing
- B. Correct the fund handling immediately and address it as a serious license law violation
- C. Wait to see if the buyer notices before taking any action
- D. Simply note it for the salesperson's next performance review
Show answer & explanation
Answer: B
Depositing client trust funds into a personal account is a serious violation of the duty to safeguard client money separately, and a supervising broker who becomes aware of it must act immediately to correct the fund handling and address the violation, since delaying correction or treating it as a minor performance issue would compound the broker's own supervisory exposure; waiting to see if the buyer notices does nothing to remedy funds that are already being mishandled.
59. A DC brokerage's advertisement for a Shaw rowhouse listing prominently features only the individual salesperson's name and phone number, without including the brokerage firm's name anywhere in the ad. Under general license law advertising principles, what is the concern?
- A. The concern only applies if the salesperson used the brokerage's logo without permission
- B. The concern only applies to online advertisements, not print
- C. The ad likely violates the requirement that advertising identify the licensed brokerage
- D. There is no concern since salespersons may advertise independently
Show answer & explanation
Answer: C
License law generally requires that real estate advertising identify the brokerage under which the salesperson is licensed, since consumers are entitled to know which firm bears responsibility for the transaction; this requirement applies across advertising formats and doesn't depend on whether a logo was used, because the missing element here is any mention of the brokerage's name at all.
60. The DC Real Estate Commission is reviewing a pattern of complaints against a broker involving repeated failure to supervise salespersons, commingled trust funds, and multiple misrepresentation complaints from consumers. Considering the Commission's regulatory authority, what range of outcomes could the broker face?
- A. No formal action, since consumer complaints alone can never trigger a licensing investigation
- B. Only monetary fines, since a real estate license cannot be revoked once issued
- C. Only a private warning letter, since license discipline requires a criminal conviction first
- D. A range of disciplinary actions up to and including suspension or revocation of the license
Show answer & explanation
Answer: D
A real estate licensing commission's disciplinary authority typically spans a range of responses proportional to the severity and pattern of violations, and repeated serious violations like failure to supervise, commingling, and misrepresentation complaints could justify escalating discipline up to suspension or revocation of the license; license discipline does not require a prior criminal conviction, since it is an independent administrative process addressing professional conduct.
61. A DC salesperson changes brokerages, moving from one firm to another mid-year. What must happen with respect to her license and the DC Real Estate Commission's records regarding this change?
- A. She may operate under both brokerages simultaneously without any notice
- B. Nothing needs to be reported since her individual license number stays the same
- C. Only the new brokerage needs to know, with no notice to the Commission required
- D. The change in broker affiliation must be properly reported and reflected in the Commission's licensing records
Show answer & explanation
Answer: D
Because a salesperson's license authority is tied to supervision by a specific broker, a change in brokerage affiliation must be properly reported and updated in the licensing authority's records so the Commission and the public know which broker currently bears supervisory responsibility for that salesperson; assuming no notice is required simply because the license number doesn't change ignores that the affiliation itself, not just the number, is what regulators track.

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Key facts: DC Real Estate exam

75%

To pass

$79

Exam fee

The DC Real Estate is administered by District of Columbia Real Estate Commission (DLCP), with a passing score of 75%.

This free DC Real Estate practice test has 61 original questions written to District of Columbia Real Estate Commission (DLCP)'s official content outline, last checked against it on August 11, 2026. Every question shows a worked explanation, and nothing here requires a signup.

As of 2026, the DC Real Estate exam fee is $79.

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Official sources

Every exam fact on this page traces to a primary document published by the body that administers the exam.

Real Estate License Examination Candidate Information Bulletin — District of Columbia (PSI Services LLC, Updated 6/3/2026)District of Columbia Real Estate Commission (DCREC) — DC Department of Licensing and Consumer Protection (DLCP), Occupational and Professional Licensing Administration (OPLA)test-takers.psiexams.com
Real Estate Commission | dlcp (DC Department of Licensing and Consumer Protection)District of Columbia Real Estate Commission (DCREC) — DC Department of Licensing and Consumer Protection (DLCP), Occupational and Professional Licensing Administration (OPLA)dlcp.dc.gov
812 DC Real Estate Candidate Information Bulletin (PSI Services LLC, Revised 10/1/2018 — SUPERSEDED by the 2026 bulletin above)District of Columbia Real Estate Commission (DCREC) — DC Department of Licensing and Consumer Protection (DLCP), Occupational and Professional Licensing Administration (OPLA)proctor2.psionline.com

Last verified against the official exam content outline: August 11, 2026

Frequently asked questions

How many questions are on the DC real estate salesperson exam?

The combined exam has 110 items in 210 minutes. If you take the two portions separately, the national/general portion has 80 items in 120 minutes and the DC state-law portion has 30 items in 90 minutes.

What score do I need to pass the real exam?

You need a minimum score of 75% correct on the actual PSI-administered exam. Practicing at or above that threshold consistently is a good sign you're ready to schedule the real test.

Is this practice test free and do I need to sign up?

Yes, you can take this practice test without creating an account or entering payment information. It's designed for quick, no-signup review sessions.

How should I use a practice test to prepare for the DC salesperson exam?

Take a full-length practice run under timed conditions first to gauge where you stand, then drill missed topics individually before retaking a fresh set closer to your test date. Reviewing why an answer is wrong matters more than the raw score.

What topics make up most of the DC state-law portion?

For salespersons, statutory requirements governing licensee activities make up 67% of the state portion (20 items), followed by duties and powers of the Real Estate Commission at 20% (6 items) and licensing requirements at 13% (4 items).

How many pre-licensing education hours do I need before I can sit for the exam?

You must complete 60 hours of salesperson pre-licensing education from a DC Real Estate Commission-approved provider before you're eligible to test.