DC State exam

what activities require a real estate license?

generally activities performed for others for a fee

within how many months should a salesperson applicant submit their application after passing the exam?

within six months

within how many months should a broker applicant submit their application after passing the exam?

within six months and also have two years of experience immediately preceding application as real estate salesperson or broker

how many hours of continuing education for brokers and salespersons? what do they include?

15 hours of continuing education every 2 years. They include 9 hours of commission mandated courses and 6 hours of general electives.

Up to how many years can a licensee apply to have their license made inactive?

Up to 5 years

Who is responsible for returning the salesperson’s license to the mayor?

The broker, and it must be done within 15 days

How often should a salesperson renew their license?

Every 2 years by August 31 of odd-numbered years

How often should a broker renew their license?

Every 2 years by February 28 of odd-numbered years

The Real Estate Commission must elect a ____ and meet no fewer than _____ times a year

Chairperson, 4

Who controls the DCREC?

The mayor controls the DCREC and received budget and administrative support from DCRA

What is the DCREC made of?

3 licensed brokers

2 licensed salespersons

3 licensed property managers

1 attorney

1 unlicensed consumer

all must have been practicing in their professions for at least 5 years immediately prior to appointment

How many terms do the DCREC commissioners serve?

3 staggered terms and limited to 3 consecutive terms

If a consumer submits a complaint against a licensee who investigates it?

The DCREC investigates it by providing a notice with a hearing date that must occur no later than 15 days after that notice

Within how many days can a licensee request to reopen a proceeding if they miss it for a good cause?

Can request to reopen within 30 days of commission decision

Within how many days are commission decisions rendered?

Rendered in writing within 90 days.

If a licensee disagrees with the decision what can they do?

They can seek judicial review by the DC Court of Appeals

If a licensee is found guilty and the commission decides to fine, what is the maximum amount per violation?

The fine cannot exceed $5,000 per violation

If a licensee is found guilty and the commission decides to fine for substantial misrepresentation, what is the maximum amount?

A fine of up to $2,500

The DCREC may impose a civil fine of up to:

$5,000 per license law violation

If the DCREC finds a claim to be false/fraudulent they claimant could be punished by:

a fine of up to $3,000 and imprisonment of up to a year (or both)

The DCREC can fine licenses convicted of criminal charges:

up to a $10,000 fine and up to one year in jail (previous convictions $25,000 and one year in jail)

What is the Real Estate Guaranty and Education Fund?

Compensates consumers who win judgements against licensees and is also used to pay for education for real estate license officials. It is administered by the DCREC

How much are licensee fees for initial and renewal licenses that support the guaranty fund.

$60 with additional fee up to $50 if fund balance goes below certain amount

How many months do claimants have after a judgment has been awarded to make a claim?

Claimants have 12 months and myst notify the mayor within 30 days if judgment was filed that MAY result in a claim

What is the per licensee liability maximum of the Real Estate Guaranty and Education Fund?

maximum of $50,000 and will be divided in proportion to the amounts of judgements if needed.

All advertising is subject to who’s approval?

The principal broker

All advertising must include either

the registered broker or brokerage’s name and phone number

Any salespersons/associate brokers who include their name in an ad must include:

their affiliated brokerage’s name and office’s main phone number

Online ads must contain an

Online disclosure

puffery

permissible, exaggerated claims or opinions that you wouldn’t rely on as a fact

misrepresentation

facts someone relies upon are misrepresented, not permissible must be avoided

greenwashing

portraying a property to be more energy efficient or more environmentally friendly than it actually is

TRUE/FALSE: Associate brokers do not supervise other licensees

TRUE

TRUE/FALSE: Payment CAN be accepted from anyone other than licensee’s principal broker

FALSE

TRUE/FALSE: Payment of compensation does not establish an agency relationship

TRUE

Up to how much can fines for commission related violations be?

Up to $2,500 per violation

TRUE/FALSE: Agency disclosure creates a brokerage relationship and is a contract

FALSE, it is not a contract and does not create a relationship

TRUE/FALSE: Written listing contract isn’t required

FALSE, a written listing agreement is required, and a licensee should not receive commission without an agreement

How many years should transactional documents and agency disclosures be maintained for?

Be maintained for a minimum of 3 years.

conversion

when a licensee/escrow holder illegally uses money received on behalf of the principals

commingling

when licensee/escrow holder mixes client or customer funds with his or her own personal funds or the firm’s operating account

earnest money must be placed in an escrow account within how many days of reciept?

within 7 days of receipt

TRUE/FALSE: the escrow holder may keep a nominal amount of personal funds in the escrow account to pay bank fees

TRUE

Commission of Human Rights (and members)

conducts investigations of discrimination patterns and adjudicates complaints of discrimination in DC. Its made up of 15 people nominated by mayor, who serve 3 year terms without compensation

Office of Human Rights (OHR)

reviews complaints for probable cause before the commission conducts an evidentiary hearing and passes judgement on the complaint

Fair Housing complaints can be filed within how many years of the alleged violation?

Within 1 year of alleged violation

Civil penalties for Fair Housing complaints range from:

$10,000 to $50,000 that must be paid to the district government

What is something the court can require for Fair Housing punishments

the court can require that the housing or loan that was denied to the complainant be made available

What property is exempt from Fair Housing laws?

An owner/owner’s family occupy a living unit that has 4 families or less with a shared kitchen and bathroom, or two-family properties where families live independently of each other (a duplex)

TRUE/FALSE: The sale or rental of a single-family home by an owner is exempt if the owner does not own or have an interest in more than three single-family homes at the same time.

TRUE

Tenant Opportunity to Purchase Act (TOPA)

prohibits rental housing sale, demolition, or conversion without first offering property sale to tenants

Within how many days must a landlord provide a tenant with a copy of a third party offer if requested?

Must be provided within 7 days of request

Within how many days must a landlord provide information regarding operating expenses, floor plans, etc. if requested

Must be provided within 7 days if tenant requests it

If a tenant organization exists, the statement of interest must be provided within how many days of recieving the offer of sale?

Within 30 days and sent to the landlord and mayor

if a tenant organization does not exist, the statement of interest must be provided within how many days of receiving the offer of sale?

The window is 45 days

How many days to 2-4 unit tenant organizations have to send a statement of interest form to mayor and landlord?

They have 15 days

TRUE/FALSE: Only an incorporated tenant organization may exercise the right to purchase an accommodation with 5 or more units

TRUE

After July 3, 2018 single family dwellings are exempt from TOPA except:

current tenants who are elderly/disabled and have entered into a lease by March 31, 2018 and moved in by April 15, 2018

What must landlords in DC obtain to rent out their residential property?

A housing business license, certificate of occupancy, and register with the rental accomodation division

security deposits cannot exceed the cost of?

one month’s rent

if a rental agreement is written, the landlord needs to provide a copy within?

within 7d ays of signing and a receipt for payment of the rent

Within how many days does an agency agreement terminate if there is no date?

Within 90 days after the brokerage relationship began

TRUE/FALSE: Sellers of properties with one to four residential dwelling units must provide a seller’s property condition disclosure statement to any buyer who expresses written interest in purchasing a property

TRUE

Who is only allowed to complete the disclosure?

ONLY the seller but they can use the information gathered at the professional pre inspection.

Historic Landmark and Historic District Protection Act of 1978

stregnthens the legal protections for historic properties

Historic Preservation Office (HPO)

uses planning, protection, and public education to promote stewardship of historic properties

Who reviews all permits involving historic properties and is required to hold public hearings for permits involving certain kinds of construction and renovation?

The mayor’s agent

Historic Preservation Review Board

implements federal review programs and evaluates applicaitons to ensure proposed work meets DC historic preservation requirements

L’Enfant Trust Easement

protects the district’s historic streetscapes and applies to current and future property owners

What does the L’Enfant Trust Easement say?

no change can be made to the exterior appearance of property without their consent and it can’t be altered in any way without consent from the trust that maintains the easement.

A property disclosure used in the reselling of a condo must be delivered to prospective buyers on or before?

The 10th business day from the date the purchase contract is ratified

Buyers of a resold condo have how many days from the date they recived the condo documentation to cancel the contract?

They have 3 business days

TRUE/FALSE: The developer is NOT responsible for fixing structural problems in the condo unit for 2 years after the buyer first purchases/receives the unit.

FALSE, the developer is responsible

How many days do purchasers have to cancel the contract in writing without penalty?

They have 15 days from the date of contract OR the date the current public offering statement is provided whichever occurs LATER

Sustainability

meeting the economic, social, and environmental needs of today while ensuring future generations will have their needs met.

retrofitting

any upgrade to an existing building intended. to improve energy and environmental performance, reduce water usage, and improve the comfort and quality of the space in terms of natural light, air quality, and noise (ex: installing energy efficient appliances, insulating roof/attic spaces, etc.)