course home
63 The fiduciary duty of ______ survives closing. Confidentiality Disclosure Loyalty Obedience
Confidentiality Even after the transaction is complete and the agency relationship ends, the agent cannot divulge to any party, except by court order, any confidential information the client shared.
What electrical component is usually placed in the garage or basement for ease of access? Electrical distribution panel GFCI Greenfield conductor Romex
Electrical distribution panel The electrical distribution panel houses the fuses (in older homes) or circuit breakers (in newer homes). The amperage rating for the home is usually listed at the top of the panel.
44 Maria's neighbor is building a shed in his backyard that appears to be about a foot over the property line into her yard. What term describes the placement of the shed on Maria's property? Easement Encroachment Lien Trespassing
Encroachment An encroachment is an unauthorized, fixed, physical intrusion onto another person's property. A shed that crosses the property line is a good example.
What type of emails are prohibited by the CAN-SPAM Act? Customer service emails Emails containing more than three hyperlinks or attachments Junk emails Subscriber emails
Junk emails In addition to junk emails, the CAN-SPAM Act also prohibits misleading or false headers or subject lines.
42 What responsibilities does a real estate professional have regarding property taxes? Assist with paying property taxes at closing Determine whether property taxes have been correctly assessed Testify at property tax hearings Understand how property taxes are calculated and disclose to buyers what their property taxes will be based on true taxes, not assessed value nor taxes after exemptions are taken
Understand how property taxes are calculated and disclose to buyers what their property taxes will be based on true taxes, not assessed value nor taxes after exemptions are taken Caution! Although it is your responsibility to know how property taxes are calculated and disclose property taxes to prospective buyers, you are not a tax assessor.
83 Which of these items should real estate professionals help first-time buyers and buyers with recent credit issues understand? Appropriate financing High-risk loan products Rental options Rental options and high-risk loan products
Appropriate financing These types of buyers may need help understanding appropriate financing options, as well as the underwriting process.
53 What's the term for a contract for which one or more terms have yet to be completed? Executed Executory Incompetent Invalid
Executory An executory contract has remaining terms outstanding. It's not yet been completed. When all terms have been met, the contract is said to have been executed.
78 How do you decide whom you represent in a transaction? It's based on compensation. If the seller is paying you, you work for the seller. It's based on priority. Seller's duties come before buyer's duties. It's based on the express agreement between you and the party whom you represent. It's based on the implied agreement between you and the party whom you represent.
It's based on the express agreement between you and the party whom you represent. Although illegal agency relationships (e.g., undisclosed dual agency) can be created through actions, a legally enforceable agency agreement is one that's expressed in writing.
Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he'll be subject to. You tell him ... "Capital gains do not apply to investment properties." "I hear ya, man. Taxes blow." "Silly goose. Investors don't pay taxes." "You might consider a 1031 tax-deferred exchange."
"You might consider a 1031 tax-deferred exchange." Investors will have to pay capital gains taxes unless they roll those gains into a new investment property and use the 1031 tax-deferred exchange process to do so.
85 A home sells for $225,000. Per the listing agreement, the agent is paid 7% of the sales price, with half of that amount paid to the buyer's agent. The seller's agent also has an agreement with her brokerage for a 70/30 split. How much is the agent's commission? $15,750 $2,362.50 $5,512.50 $7,875
$5,512.50 The total commission is $225,000 x .07 = $15,750. The agent's total brokerage commission is half of the commission or $15,750 x .5 = $7,875. The agent receives 70% of this, or $7,875 x .70 = $5,512.50 in commission.
In DC, a property manager licensee must be how old? 16 18 21 25
18 Property manager licensees must be at least 18.
A real estate licensee in DC needs to change her address. Within how many days should she file the change? 10 days 30 days 60 days Seven days
30 days If licensees want to change any of the information listed on their pocket card, they must process these changes through the mayor. Changes of address must be processed within 30 days of the change.
107 DC requires that electronic documents be ______. Available for inspection upon the commission's request Converted to paper and stored on site Protected by encryption and cloud-based backup Used for all document storage
Available for inspection upon the commission's request No matter whether records are stored electronically or in paper form, they must be made available for the commission to inspect upon request.
105 Corrine works for a small company that would like to start assisting their clients with real estate transactions. The company is incorporated. What is true about the applicable licensure category for Corrine's employer? Companies cannot be real estate licensees. Companies can only be licensed as associate brokers. Companies can only be licensed as brokers. Companies can only be licensed as salespersons.
Companies can only be licensed as associate brokers. In DC, companies may apply for and obtain a broker's license if certain qualifications are met.
110 A complaint was filed against Morton, a real estate licensee in DC. Which entity investigates this complaint, holds hearings, and possibly imposes sanctions? District of Columbia Mayor's Office District of Columbia Police Commissioner District of Columbia Real Estate Commission U.S. Secret Service
District of Columbia Real Estate Commission The commission investigates complaints against licensees, holds hearings, and imposes sanctions.
103 Which of the following closing activities occurs on the day of closing? A pre-approval letter is provided to the seller. A preliminary title report is issued. Funds are transferred. The buyer receives loan approval.
Funds are transferred. Funds are transferred on the day of closing. The rest of the events must occur in advance of closing.
106 Which option best describes a dedication by deed? Land given to an individual after an adverse possession claim Land given to another person without consideration Land given to the government without consideration and for the public's use Land involuntarily taken through court order after a financial default..
Land given to the government without consideration and for the public's use Dedication by deed is described as land given to the government without consideration and for the public's use
56 Which of these is an example of a lot and block description? 123 Roanoke Street Any Town, ST 98765 "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds S ½ SE ¼ NW ¼ Section 2 ...
Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds A lot and block description references a specific location in a subdivision by referring to block and lot numbers.
104 When state and federal laws conflict, as they sometimes do in fair housing and human rights, the more restrictive law (the one that affords more protections) prevails. DC's Human Rights Act is ________________________________. Less restrictive than the federal laws Less restrictive with an exemption for discrimination based on race More restrictive, although it does not address discrimination in the sale or leasing of commercial space More restrictive than the federal laws
More restrictive than the federal laws DC has no exemptions for discrimination based on race and prohibits discrimination in the sale, lease or rental of housing and commercial space.
101 As a(n) ______ property manager, you spend most of your time on maintenance, landscaping, security issues, and enforcing HOA regulations. Office Planned unit development Real estate development Retail
Planned unit development PUD property managers spend most of their time on maintenance, landscaping, security, and enforcing HOA regulations.
72 Sherman owes $225,000 on his home. It's currently worth $240,000. How much equity does Sherman have in his home? $15,000 $225,000 $240,000 $465,000
$15,000 Equity is the amount of value left in the home after paying off the loan balance: $240,000 ‒ $225,000 = $15,000.
40 A $400,000 property depreciated in value by 2%. What's its new value? $392,000 $400,000 $408,000 $8,000
$392,000 A 2% decrease in value is $8,000. This makes $392,000 the new property value.
What is a company checklist? A list of all the employees in a company A list of all the positions within a company A list of how procedures are completed within a company A list of software programs a company is allowed to use
A list of how procedures are completed within a company Company checklists contain all the steps in a process. It's easy to miss a step when you're in a hurry, and most transactions occur in a "time is of the essence" manner.
55 What does legal purpose mean? As long as the contract has a purpose and that purpose has been completed, the contract is legal. Contracts must have a legal object. Contracts must involve a lawyer. Only contracts that state a purpose are legal.
Contracts must have a legal object. Legal purpose means that a contract must be written for a lawful objective.
54 You receive an email from your credit card company indicating there's a problem with your account. The email has a link you must click on to verify your information. What do you do? Click on the link and enter your account information. Click on the link but don't enter your information. Delete the email and notify your bank. Store the email until you can get online from home to review it.
Delete the email and notify your bank. Delete emails like this. Banks will never send a link asking you to access your account and provide sensitive information.
65 What type of listing agreement provides the most protection for the listing agent's commission? Exclusive agency Exclusive right-to-sell Net listing Open
Exclusive right-to-sell It's easy to confuse these types of agency. With exclusive agency, the seller retains the right to sell and avoids paying the commission. Exclusive right-to-sell agreements prohibit the seller from selling the property without paying the listing agent.
76 Jamal is a real estate licensee. What's his responsibility regarding household lead hazards? He must disclose to buyers that there's lead-based paint in a home, but only if he's positive that it's there. He must ensure his sellers know how to hide the presence of lead-based paint. He must make sure all lead is removed, even if he has to personally remove it. He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978.
He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978. Federal law makes it the seller's responsibility to inform the buyer of the possibility of lead-based paint in homes built prior to 1978
97 Bob wants an open listing agreement. Why might this not be in Bob's best interest? He'll have to pay multiple real estate commissions. He won't get full representation from any one licensee. It presents an inherent conflict of interest. It prevents him from selling the property himself and not paying a commission.
He won't get full representation from any one licensee. With open listing agreements, sellers don't typically receive full representation from any one licensee.
Under what circumstances may a seller legally terminate an exclusive right-to-sell listing agreement before its listing term has passed? If the listing broker agrees in writing to the termination If the seller has found a ready, willing, and able buyer with no assistance from the listing broker If the seller loses his job Under no circumstance
If the listing broker agrees in writing to the termination Listing agreements are contractual and termination requires both parties' signatures.
57 What type of agency exists because of the actions and behavior of the parties? Action agency Behavioral agency Express agency Implied agency
Implied agency Implied agency is created as a result of the actions and behaviors of the parties. For instance, a buyer may come to rely on your advice when shopping for a new home. Over time, implied agency exists.
64 Why was the Civil Rights Act of 1866 monumental among fair housing and anti-discrimination laws? It abolished slavery. It added sexual orientation as a protected class. It provided no exceptions for discrimination based on race or color. It was adopted by the United Nations.
It provided no exceptions for discrimination based on race or color. The Civil Rights Act of 1866 allowed no exceptions for discrimination based on race or color.
The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects, is called ______. Estate Land Real estate Real property
Land This is a definition for land.
100 In DC, who can charge a fee to treat a home for pest infestation? Licensed pesticide operators Prospective buyers Real estate professionals Unlicensed professionals
Licensed pesticide operators In DC, only licensed pesticide operators can charge a fee to treat a home for pest infestation.
47 In full seller disclosure states, whose responsibility is it to notify the seller of the seller's duty to disclose all known material defects? Buyer Licensee representing the buyer Licensee representing the seller Transactional broker
Licensee representing the seller In full seller disclosure states, licensees representing sellers have a responsibility to notify sellers of their duty to disclose known material defects.
84 All of the following are violation to DC's compensation and commission guidelines EXCEPT for which one? Accepting payment from the seller's agent Not clarifying in the agreement whether it will be shared with the buyer's agent Obtaining both parties' consent before accepting payment Receiving commission without an agreement
Obtaining both parties' consent before accepting payment Before accepting payment, DC requires that both parties provide full consent.
Rafael has flipped many houses in DC, and he's interested in serving on the real estate commission. He's worked as a contractor, but is not licensed in real estate. How many unlicensed members of the general public can serve on the commission? One Three Two Zero
One One of the nine real estate commissioners is a consumer who holds no real estate or related licenses.
Which of the following is an example of single agency? Mary from XYZ Real Estate represents Susan, a buyer for Seamus's listing. Seamus represents the seller and is also a licensee for XYZ. Randolph from ABC Realty represents Cindy, a buyer for Carol's listing. Carol is affiliated with Net Realty. Walter from Sell Fast Realty represents Hallie, a seller. He also represents Jackson, a buyer who wants to make an offer on Hallie's condo. Whenever dual agency doesn't exist, it's single agency.
Randolph from ABC Realty represents Cindy, a buyer for Carol's listing. Carol is affiliated with Net Realty. The only time single agency occurs is when one agent from one firm represents one side of the transaction. The other side is either unrepresented or represented by a different firm.
43 Compared to working without a buyer agency agreement, a buyer who works under a buyer agency agreement ____________. Can use more agents to see more properties Pays a lower commission Receives a higher level of service Will have no responsibilities to the agent
Receives a higher level of service Buyer agency agreements ensure a higher level of service, given that the agent and buyer have defined their working relationship.
Property Class 1 is for ______. Commercial and industrial property Residential real property Vacant and blighted property Vacant property
Residential real property Class 1 is residential property, including multi-family.
69 What's one way licensees can help their buyer clients avoid wired funds transfer fraud? Have the closing officer invoice the buyer after closing. Obtain personal checks for closing funds. Safeguard their email account and avoid sending unencrypted data by email. Use the brokerage's trust account funds, and have clients reimburse the brokerage.
Safeguard their email account and avoid sending unencrypted data by email. Licensees shouldn't exchange sensitive client data via email, such as bank routing information or user names and passwords, and should take steps to safeguard their email accounts and passwords.
When a local planning board is reviewing density, it would consider ______. Federal impact Impact on neighboring states Property values Setbacks and boundaries
Setbacks and boundaries When reviewing density, the local planning board would take setbacks and boundaries into consideration.
Janine wants to meet with her potential buyer clients face-to-face in her office. What's her reason for doing this? She wants the buyers to meet her office mate. She wants to make sure the buyers are serious about purchasing. She wants to run a credit check on the buyers. She wants to sell the buyers on a local neighborhood that she likes.
She wants to make sure the buyers are serious about purchasing. Licensees should meet face-to-face with buyers before they work with them to build rapport with the buyers and to gauge how serious the buyer is about finding a property to purchase.
Which of the following statements is true if a landlord would like to offer a rental accommodation for sale in D.C.? The landlord must first advertise the sale in a local newspaper for at least 10 days. The landlord must first extend the opportunity to purchase to current tenants. The landlord must first obtain approval from the mayor. The landlord must first receive approval from the property manager.
The landlord must first extend the opportunity to purchase to current tenants. Landlords must offer the current tenants the opportunity to purchase a rental unit prior to offering it for sale to the public.
50 Janette made a huge mistake in a DC transaction. She doesn't have the money to pay the damages to three plaintiffs for $7,000, $9,700, and $15,300. If they apply for payment from the guaranty fund, how much will the claimants receive? The maximum per-licensee liability is $25,000, so the payments will be proportionally allocated with the largest payment at 48% of $25,000. The maximum per-licensee liability is $50,000, so the claimants will each receive full payment. The plaintiffs will receive the full amount of their damages minus administrative costs. There is a per-transaction maximum of $10,000, so two claimants will receive the full amount of their claims, and one will receive $10,000.
The maximum per-licensee liability is $25,000, so the payments will be proportionally allocated with the largest payment at 48% of $25,000. With a per-licensee liability maximum of $50,000, each claimant will receive the entire amount of loss claimed.
Where can you find out what's not covered by a title insurance policy? The county clerk's office The Internet The lender's attorney The title insurance policy's schedule of exceptions
The title insurance policy's schedule of exceptions You can find out what's not covered by a title insurance policy by reviewing the schedule of exceptions.
If an endangered species or wetlands exist on a site, which of the following is true? The developer can usually purchase the property for a lower price. The sales price will be higher. These are both environmental concerns that can directly impact the development of a property. These conditions will not affect the development of a property.
These are both environmental concerns that can directly impact the development of a property. The presence of an endangered species or an area of wetlands on a site are two environmental conditions that can directly impact the extent to which a property can be developed, if at all.
The zoning ordinances changed 10 years after Stan built his home, and it was grandfathered into the current zoning through nonconforming use. Now Stan is selling the home. Which of the following is true regarding the new owners' responsibilities to comply with zoning regulations? They'll have to apply for new zoning. They'll have to comply with the current zoning. They'll have to get an area variance. They're able to continue nonconforming use.
They'll have to comply with the current zoning. The new owners will have to comply with the current zoning.
95 Nikki was just appointed to the DC Real Estate Commission. She isn't replacing anyone who left in the middle of a term. How long will she serve on the commission? Five years One year Three years Two years
Three years Full terms on the DC commission are three years long.
The location of wetlands and springs at a development site is part of ______. Development cost Development impact TDR Topography
Topography The location of wetlands and springs is part of topography.
The ease with which the property can be conveyed to another describes which factor that influences value? Demand Scarcity Transferability Utility
Transferability Transferability is how easily a property can be transferred to another.
80 When a lender charges a borrower more than the highest allowable interest rate, it is called ______. A discount point A note Interest Usury
Usury Usury rates vary by state and set the maximum interest rate that may be charged.
When is a transfer tax payable? During the title search When passing property from parent to child or between siblings When the deed is recorded When there is an equitable distribution between divorced spouse
When the deed is recorded Transfer tax is payable when the deed is recorded.
109 Your Aunt Peggy works in another county and is thinking of buying a townhome. She's working with the seller's agent but isn't under an agency agreement. What should you tell her about this situation? "Make certain you don't have to pay the seller's commission." "Make sure you understand that you're not represented." "Tell the listing agent to give me a referral fee." "This is illegal. Report the listing agent to the commission."
"Make sure you understand that you're not represented." Buyers working without an agency agreement aren't represented.
51 Which of these is an example of usury? A borrower does not pay back a loan on time. A borrower uses the funds received from a lender. A lender charges a borrower an interest rate that is excessively high. A private lender provides a borrower with money for a real estate purchase.
A lender charges a borrower an interest rate that is excessively high. Usury describes the practice of charging an excessively high interest rate on a loan.
82 Which of the following is a violation of federal fair housing law? A landlord refusing to rent to anyone under the age of 30 A private homeowner advertising a private house share using the phrase: "No minorities" A private homeowner who lives in a duplex and won't rent the other half to a pregnant woman A private homeowner who lives in a triplex and won't rent one of the units to a family
A private homeowner advertising a private house share using the phrase: "No minorities" Discriminatory advertising is never allowed.
59 What's the National Flood Insurance Program? A program that cleans up flooding in hazard areas A program that covers all of the costs of flood insurance in hazard areas A program that helps homeowners in flood hazard areas obtain insurance A program that provides boats to homeowners in flood hazard areas
A program that helps homeowners in flood hazard areas obtain insurance Because insurers were traditionally hesitant to provide flood insurance in flood plains, a program called the National Flood Insurance Program, administered by FEMA, helps homeowners in flood hazard areas obtain insurance.
62 A number of specific provisions in DC license law and the DC Code of Ethics underscore the critical nature of the licensee's role in working with contracts. Which of these statements best reflects your level of responsibility? Accurately completing contract forms and following up on the included provisions are just a couple of your contract-related responsibilities. Encouraging clients to seek legal advice before signing any real estate contract relieves the licensee from responsibility of explaining contract terms. Using approved contract forms helps relieve licensees from the responsibility of drafting their own forms. Your principal broker is primarily responsible for the appropriate use of contracts by the firm's affiliated licensees.
Accurately completing contract forms and following up on the included provisions are just a couple of your contract-related responsibilities. Licensees contract responsibilities include understanding how to properly complete them, explaining provisions to clients, guiding clients through the contract process, and ensuring that all contracts include any agreements between the parties.
Which stage of the property ownership life cycle can be affected by income tax issues? Acquisition, ownership, and reversion can all be affected by income tax issues. Only acquisition Only ownership Only reversion
Acquisition, ownership, and reversion can all be affected by income tax issues. All three stages can be greatly affected by income tax issues.
Which of these statements is true regarding TOPA timeframes? An existing tenant organization in a six-unit building must submit a statement of interest with 30 days after receiving an offer of sale from the owner. Tenants in a 2-4 unit building must submit a statement of interest have within 30 days after receiving an offer of sale from the owner. Tenants in a building with over five or more units must submit a statement of interest within 30 days after receiving an offer of sale from the owner. Tenants in a single unit must submit a statement of interest within 30 days after receiving an offer of sale from the owner.
An existing tenant organization in a six-unit building must submit a statement of interest with 30 days after receiving an offer of sale from the owner. If there's an existing tenant organization, the organization must submit a statement of interest to the landlord within 30 days of receiving the offer of sale.
66 What is a real estate syndicate? A company that owns, and usually operates, income-producing real estate An entity used to pool mortgage loans and issue mortgage-backed securities An organization that manages income-producing real estate properties. An organization with many investors who jointly participate in a real estate investment
An organization with many investors who jointly participate in a real estate investment Real estate syndicates are organizations with many investors who jointly participate in a real estate investment.
Activities that restrain trade and reduce competition and choices for consumers are considered to be ______ violations. Agency law Antitrust Fair housing License law
Antitrust Antitrust violations are those that restrain trade and unreasonably reduce competition. This reduction in competition lessens choices for consumers. These actions are illegal.
60 Not all company employees, officers, or members must be licensed for an entity to apply for a DC broker company license. But what is true about eligibility requirements? All employees must be licensed salespersons or brokers. All partners must be licensed brokers. Anyone involved in real estate services must hold a license. Each company needs a minimum of five licensees.
Anyone involved in real estate services must hold a license. DC requires any employee involved in real estate transactions to hold a license, including directors, officers, partners, or trustees.
45 A clause that allows the parties to agree that they won't litigate if there are any contract disputes is a/n _________. Arbitration clause Choice of law clause Indemnification clause Severability clause
Arbitration clause An arbitration clause specifies that the contract parties agree to use an arbitrator if there are disputes, rather than file lawsuits to deal with the disputes.
48 Which of the following is a percentage of market value, and is also the amount of property value to which the tax rate is applied? Ad valorem Assessed value In rem Special assessment
Assessed value Assessed value is a percentage of market value, and is also the amount of property value to which the tax rate is applied.
As a security precaution, when posting on social media, what should you do? Assume that the information's private. Assume that the information will be passed along. Assume that using a social media site poses no security risks. Turn off privacy controls.
Assume that the information will be passed along. You should assume the information will be passed along, even if you limit your post to close friends.
87 When must informed consent for dual agency be obtained? As the situation arises At the time when the licensee and customer have entered into an agent/client relationship In the first face-to-face meeting with a potential client Prior to entering into a contract for a specific transaction
At the time when the licensee and customer have entered into an agent/client relationship As a real estate licensee in DC, you must present the consent for designated/dual representation form at the time you enter into an agency agreement with a client.
74 Which of the following terms best describes real property? Built-in Chattel Free-standing Movable
Built-in Built-in would describe real property that's permanently affixed to the property. There are other types of real property—like plants in the ground—that go with the property. Another example is a remote control garage door opener—it stays.
70 How can a seller correct inaccuracies in a property condition disclosure statement? By covering up the issues with cheap work and not worrying about them By drafting an addendum or amendment By leaving a note in the home after the close of the sale By phoning the buyer and the buyer's agent
By drafting an addendum or amendment When sellers need to correct any sort of inaccuracies in the property condition statement, they can provide an addendum or amendment to the statement.
88 How can an agent offer dual agency legally? By getting general agreement from both parties By having clients sign waivers By not disclosing one of the agency relationships By obtaining informed consent in writing from both parties
By obtaining informed consent in writing from both parties In order to practice dual agency legally, informed consent must be obtained from both parties in writing.
What should be provided to borrowers no fewer than three days prior to closing? Closing Disclosure Escrow Closing Notice Loan Estimate The Mortgage Servicing Transfer Disclosure
Closing Disclosure The Closing Disclosure form enables borrowers to compare the final terms and costs of closing to the Loan Estimate they received at application.
Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed? Commingling Commingling and conversion Conversion Deceptive business practice
Commingling and conversion Jill is guilty of commingling and conversion. She commingled when she mixed the funds with her own, and then she converted the funds when she used them to pay the web developer.
41 Which federal lending act was introduced to combat lending discrimination in low- and moderate-income neighborhoods? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Disclosure Act
Community Reinvestment Act The Community Reinvestment Act was introduced to combat lending discrimination in low- and moderate-income neighborhoods. It requires lenders to meet the deposit and credit needs of these communities.
Which of the following is true about title to a property? Constructive notice to the public of interest in a parcel of real estate occurs when the deed is recorded and physical possession of the property is taken. The last to record has priority. The seller is responsible for paying for title insurance. Title is finalized with the simple transfer of the deed.
Constructive notice to the public of interest in a parcel of real estate occurs when the deed is recorded and physical possession of the property is taken. Recording and possession give the public constructive notice that ownership has changed hands. It also protects the buyer from others' claims on the property.
71 Which of the following statements about conversions in DC is true? Conversions are illegal. Conversions require a vote. Conversion to a co-operative may only be initiated by the tenants. Conversion to condos is prohibited.
Conversions require a vote. Conversions of rental property are permitted, but tightly regulated. Property managers need to know the requirements to convert property in DC. Conversions of rental property are subject to a certified election by the tenants.
46 Which term is used when land is donated to a municipality for public use? Adverse possession Dedication by deed Involuntary alienation Quiet title
Dedication by deed Dedication by deed is the donation of land to a municipality for public use.
89 Which term is defined as the transfer of property given to another without consideration? Adverse possession Dedication Deed of gift Foreclosure
Deed of gift A deed of gift is the transfer of property to another without consideration.
If you were a member of a local planning board, your responsibilities could include________. Determining the ethnic makeup of the community Determining zones within the municipality Enacting laws applicable to the whole state Reducing property taxes for low-income families
Determining zones within the municipality Your responsibilities could include determining zones within the municipality. A local planning board is not permitted to enact state laws, consider the ethnic makeup of community members, or give preferential tax treatment to anyone.
90 Switches that are warm to the touch, damaged panels, and lights that dim or flicker when other appliances are in use can be signs of a(n) ______ problem. Electrical Foundation Heating/cooling Plumbing
Electrical These can indicate electrical problems. Signs of a defect in the electrical system should be checked out by an expert immediately.
91 A defect on a title that can be monetary or physical is called an ___________. Agreement Appurtenance Encumbrance Eviction
Encumbrance An encumbrance is a defect on a property's title that can be monetary, such as a lien, or physical, such as an easement that limits the owner's use of the property.
What is the type of possession in which a tenant stays after the right to possess has terminated? Estate at sufferance Estate at will Estate for years Leasehold estate
Estate at sufferance When tenants stay after they no longer have the right to possess the property, it's called estate at sufferance because the landlord is suffering the tenant's presence without express agreement.
61 Which of the following would be an example of a deed restriction? Eminent domain EPA wetland conservation guidelines Fence height Zoning regulation
Fence height A deed restriction is something a private landowner has placed on the use of the property. It's not a governmental restriction.
Loans available through the Farm Service Agency have which of the following characteristics? Loan terms may be as long as 38 years. They mirror the requirements for conventional loans. They're for farm loans only. They're for rural housing loans only.
Loan terms may be as long as 38 years. The Farm Service Agency has loans for both rural and farm properties. Loan terms may be as long as 33 or 38 years, depending on the borrower's income.
81 Which of the following statements best illustrates how the National Electrical Code is enforced? Because of the high-level certification process for electricians, no enforcement of the code is necessary. Certified National Fire Protection Association inspectors enforce NEC. Local certified electrical inspectors enforce NEC. Local electrical inspectors enforce the version of NEC that the region has adopted.
Local electrical inspectors enforce the version of NEC that the region has adopted. NEC itself isn't necessarily enforced. Local electrical inspectors enforce the electrical code adopted by the region where they work, which typically is some version of NEC.
67 Janie's got an open house on Sunday but lets her friend in on Saturday to preview it. It's love at first sight! With the owner out of town, Janie decides to cancel the open house so there won't be any other offers. Her friend makes an offer and it's accepted on Monday. What fiduciary duty or duties has Janie breached? Accounting Accounting and disclosure Disclosure Loyalty and disclosure
Loyalty and disclosure These are clear violations of loyalty to the client and disclosure of the conflict of interest.
58 Remembering the acronym PITI can help borrowers recall what makes up their ______. Annual property maintenance Annual property taxes Mortgage payment Required loan documentation
Mortgage payment PITI stands for principal, interest, taxes, and insurance: the four components of the mortgage payment. Remembering the acronym can help borrowers recall what makes up their payment.
94 In terms of encumbrances, what's a license? Giving another interest or ownership in land that is not theirs Permission to do something on another's land while also possessing an interest or ownership in the land Permission to do something on one's own land Permission without possession, interest, or ownership
Permission without possession, interest, or ownership A license is permission to do something on another's land without actually possessing any interest or ownership in the land.
49 Bridget just spent seven months renovating a formerly uninhabitable building in the District of Columbia. She needs to apply for a certificate of occupancy so that she can live there now that it's up to code. Which DCRA division can issue her a certificate? Green Building Division Inspection and Compliance Permit Operations Division Regulatory Enforcement Administration
Permit Operations Division The Permit Operations Division is responsible for issuing building permits, home occupation permits, and certificates of occupancy.
99 The property management ______ provides detailed information about the rental property, such as market analysis, competitive analysis, and property analysis. Agreement Analysis Plan Tenant association
Plan The property management plan provides detailed information about the rental property, such as market analysis, competitive analysis, and property analysis. This is not the same as the property management agreement, which establishes agency relationship between the property manager and owner.
93 Sandra enters into a contract to sell her home to Paul. Under the statute of frauds, in order to be legally enforceable, the written contract must name the contracting parties, identify the subject matter of the contract, and ______. Achieve a result that is fair to all parties Be handwritten Be signed by two or more attorneys Present the essential terms and conditions of the contract
Present the essential terms and conditions of the contract The statute of frauds requires a written agreement that presents the essential terms and conditions of the contract and be signed by the parties.
52 When a lower-quality property is adjacent to a higher-quality property, it can increase the value of the lower-quality property. What economic principle is this? Anticipation Contribution Progression Regression
Progression Progression is the bump in value that a lower-value property gets by being near a higher-value property.
92 In a real estate transaction, which of the following is an example of consideration? Buyer's credit score Legal purpose Promise Property taxes
Promise Even a promise—to do something or to not do something—is consideration.
75 A DC licensee whose license has been inactive may reinstate the license if certain conditions have been met. Reinstatement must be requested within five years, must be accompanied by a fee, and the licensee must provide ________. A letter from the supervising broker Authorization for another background check Exam results from taking the state portion again Proof that continuing education requirements have been met
Proof that continuing education requirements have been met Licensees with inactive licenses must show proof that CE requirements have been met before their licenses will be reinstated.
68 Which of the following actions does the secondary mortgage market commonly take? Issues loans to consumers. Purchases loans from lending institutions. Regulates lending institutions. Sets interest rates.
Purchases loans from lending institutions. Many secondary mortgage market players purchase loans that originated on the primary market. They don't issue loans directly to consumers.
Which choice correctly identifies the seven protected classes according to the Fair Housing Act? Military service, color, national origin, religion, sex, familial status, and disability Race, color, age, religion, sex, military service, and disability Race, color, national origin, religion, sex, familial status, and criminal history Race, color, national origin, religion, sex, familial status, and disability
Race, color, national origin, religion, sex, familial status, and disability The seven protected classes are race, color, national origin, religion, sex, familial status, and disability.
102 Marvin purchased the right to use a resort unit for two weeks every year, although he doesn't own the property itself. What kind of timeshare is this? Divided timeshare Right-to-use timeshare Timeshare estate Timeshare in perpetuity
Right-to-use timeshare Marvin has a right-to-use timeshare, which simply gives the purchaser the right to use a property for a specific time each year.
73 What type of window consists of one or more panes that either move up and down or side to side in tracks? Casement Fixed Sliding Swinging
Sliding Sliding windows utilize tracks to allow panes to move fluidly, either horizontally or vertically. They usually provide more light and a better view than other window types.
In most transactions involving a buyer or seller, real estate agents have limited authority to act on behalf of their clients and therefore are acting as which type of agent? Designated General Special Universal.
Special In most transactions involving a buyer or seller, the real estate agent acts as a special or limited agent, whose primary role is to find or sell the house
Which of these is a vertical component used in wall framing? Beam Joist Lally column Stud
Stud A stud is a vertical component used to frame a wall. Studs make up the roofing rafters, as well.
Which act introduced the "innocent landowner" defense that states that a landowner isn't responsible for clean-up of contamination that occurred prior to their ownership, provided they have not tried to cover up the contamination and can prove due diligence in investigating the property when it was purchased? Comprehensive Environmental Response Compensation and Liability Act (CERCLA) State Environmental Quality Review Act of 1976 (SEQRA) Superfund Amendments and Reauthorization Act (SARA) The Clean Air Act
Superfund Amendments and Reauthorization Act (SARA) SARA amended CERCLA by removing clean-up responsibilities for contamination that occurred prior to a homeowner's ownership, provided due diligence was performed.
With which type of government power can a lien be placed on a property, giving the government a claim to the property? Eminent domain Escheat Police power Taxation
Taxation Taxation is a government power that, if unpaid, allows the government to place a lien on the property.
Which of these pieces of legislation work together to prevent discriminatory lending practices? The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act The Housing and Economic Recovery Act, the American Recovery and Reinvestment Act, and the Consumer Financial Protection Act The Housing and Urban Development Act, the Fair Housing and Employment Act, and the Community Development Act The Real Estate Settlement Procedures Act, the Truth in Lending Act, and the Consumer Credit Protection Act
The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act were all created in response to discriminatory lending practices.
79 Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh, a local organic farmer. Josh didn't meet the bank's normal underwriting standards, but Mark made the loan because he was able to arrange for a guarantee from ______. Farmer Mac The Farm Credit System The Farm Service Agency The Federal Agricultural Housing Authority
The Farm Service Agency The Farm Service Agency, which operates through the USDA, provides loan guarantees to lenders for up to 95% of the loss of principal and interest.
You represent Cynthia and Ronald, who signed a contract to buy Margie's home. The contract included the phrase, "time is of the essence." You explain to Cynthia and Ronald that this phrase means ______. The buyers should complete the sale as quickly as possible. The parties agree to proceed in good faith and not unduly delay the process. The parties should sign the contract quickly. The property may be depreciated over time.
The parties agree to proceed in good faith and not unduly delay the process. When the phrase "time is of the essence" appears in a contract, it means that the parties agree to proceed in good faith and not unduly delay the process. The parties always have the obligation to meet the deadlines specified in the contract, with or without this phrase.
77 Tom is comparing heating systems. He's looking at an 80,000 BTU system with an AFUE of 85%. Which of the following statements about these measures is true? BTU relates to system efficiency; ABUE relates to system capacity. BTUs and AFUE are both measures of system capacity. The system has a relatively standard capacity and will optimize 85% of the fuel it burns to deliver heat. The system heats an area of up to 80,000 square feet, so it's likely designed for a commercial building.
The system has a relatively standard capacity and will optimize 85% of the fuel it burns to deliver heat. System capacity is measured in BTUs; experts use a complex equation to calculate necessary system capacity. AFUE is a measure of how much fuel the system uses ends up as heat and how much disappears up the chimney.
96 What protects the buyer before the sale and can reimburse the buyer after the sale if a title issue arises? Homeowners insurance Lien proceeds Special deed Title insurance
Title insurance Title insurance protects the buyer from title defects covered by the policy. If a defect is found, and it's covered, the insurance policy will reimburse the buyer for losses, up to the amount specified in the policy.
98 How many types of exemptions are there to the SEC requirement for securities registration? Eight Four Six Two
Two There are two general types of exemptions for securities registration. The first is for intrastate offerings, where all parties are in the same state, the second is for private offerings that won't be advertised and are offered to 35 or fewer investors.
What does procuring cause refer to? Compensation for loss, damage, or injury caused Condition that must be met in order for a contract to be legally binding Failure to perform an act agreed upon by all parties Uninterrupted series of events that results in a successful transaction
Uninterrupted series of events that results in a successful transaction Procuring cause is the uninterrupted series of events that results in a successful transaction. If Liza originally showed Dewey the property, she was owed a commission through the concept of procuring cause, even though it was Billy who wrote the offer.
86 Supply and demand determine the competitive environment. Which of the following is a true statement? When there are more homes on the market, buyers can't be picky. When there are more homes on the market, buyers hold the negotiating power. When there are more homes on the market, it drives prices upward. When there are more homes on the market, sellers can demand more for their property.
When there are more homes on the market, buyers hold the negotiating power. Buyers have the upper hand when supply is greater than demand.
108 Which of these may be covered by a builder-backed home warranty? Custom exterior paint Owner-installed landscaping Ugly carpeting Workmanship
Workmanship Warranties backed by builders typically cover workmanship and materials related to specific components of the home.
In which of the following situations is it legal to receive compensation? You help a neighbor buy a foreclosure, and in addition to your commission, your neighbor pays your rent for that month. You help your aunt sell her house as a For Sale by Owner, and she gives you a $5,000 savings bond. You refer a client to your favorite mortgage broker, who gives you 10% of the money earned. You refer a client to your sister, who works at another real estate agency. When she gets her commission check, she sends you a thank you note.
You refer a client to your sister, who works at another real estate agency. When she gets her commission check, she sends you a thank you note. No compensation for brokerage services (other than a small thank you from a relative) is legal if it doesn't go through the broker.
