DC LICENSING EXAM - STATE
Which statement is an example of puffery?
"This condo has the best view this side of the river!"
17 DCMR 2614 Supervision
Brokers must display their licenses at the principal place of business and any branch offices; branch managers must display their licenses at their branch offices. Brokers must also display the licenses of all affiliated licensees.
Under what circumstances can DC buyer agency agreements be terminated early?
Buyers and their agent both agree in writing to end the agreement
Who or which entity administers the DC Real Estate Guaranty and Education Fund?
DCREC
First Choice Realty is a favorite among new licensees because it has a strong training program. Who has the ultimate legal responsibility for this program at First Choice?
Jerilyn, the principal broker
Who appoints members of DC commission?
MAYOR
Real property tax payments in DC are due twice each year. On which dates are the payments due?
May 31 Sept 15
Are commissioners of The Commission on Human Rights paid?
NO
Nathan assisted with the purchase of a commercial building that will be used as a community center. He doesn't hold a DC real estate license, yet his actions didn't violate any license laws. What must be true about Nathan's situation?
Nathan is a public official whose salaried duties include real estate transactions.
Settlement / Financing Period (TOPA single unit)
Provides tenant 45 days to secure financing. May be extended to 75 days if lender needs additional time for financing.
In contract law, undue influence differs from duress in that duress includes ______.
Use or threat of force
Forrest found out that he pays higher rent for his DC apartment than another tenant in a same-sized unit, and he thinks it's because he is an African-American male. Where should Forrest file a complaint?
DC Office of Human Rights
Forrest found out that he pays higher rent for his DC apartment than another tenant in a same-sized unit, and he thinks it's because he is an African-American male. Where should Forrest file a complaint?
DC Office of Human Rights (OHR)
Shara's friend Sonny was with her when an apartment manager refused to give Shara, who is South Asian, a rental application. Now Shara has filed a complaint with the DC Office of Human Rights. Sonny was initially scared to testify but was reassured when he learned that ________.
DC human rights law prohibits retaliation against witnesses
Dennis was surprised to learn that the DC Real Estate Commission isn't a completely independent body, but is instead under the administrative oversight of ________.
DC mayor
Chester is interested in becoming a real estate licensee in the District of Columbia. After completing the requirements for obtaining the license for a real estate salesperson, which agency will administer Chester's license?
DC real estate commission
Which of these TOPA requirements differs between a single unit building and a two - four unit building?
Delivery of the statement of interest
Which entity provides budget and resource support to the DC Real Estate Commission?
Department of Consumer and Regulatory Affairs DCRA provides administrative support to the commission. The mayor has administrative control.
If an owner of rental property decides to sell, (s)he must provide the tenant(s) with an offer to purchase whether or not there is
already a third party offer
Amanda helps her neighbor sell his DC home by assisting with negotiations. She receives no compensation for her assistance. Based on this one transaction, Amanda ______.
Doesn't need a real estate license THERE'S NO COMPENSATION
DC licensees ______ a commission without a written listing agreement.
can't be
One advantage to using electronic documents and signatures in DC is convenience. Another advantage is that ______.
Electronic signatures meet DC's requirement for delivery of signed documents
bona fide
in good faith, market value, terms of lease
Which of these statements about escrow accounts in DC is correct?
Escrow accounts are managed by escrow agents and are used to hold funds belonging to others, such as earnest money deposits.
Which of the following is true about the deposit of DC earnest money funds?
Escrow records must always be available to the commission on demand.
Alyce worked as a DC real estate salesperson for three years before obtaining her broker's license last year. She was excited to learn about current vacancies on the real estate commission. For which of the following corresponding vacancies would Alyce be eligible?
none, bc she hasn't practiced for more than 5 years
Which type of termite is most likely to cause damage to homes in DC?
subterranean
The amount of earnest money is negotiable between the parties, but it must be considered ______.
"reasonable"
The DC Real Estate Commission is overseeing a hearing for licensee Doug Jones, who was accused of mishandling both client and broker funds. The complainants are also talking to the DA about possible criminal charges. Civil fines are one thing, but if Doug is found guilty in a criminal proceeding, what maximum fine might he face?
$10,000
Commission-related violations may be subject to disciplinary action and fines up to
$2500
The DC commission can impose civil fines for license law violations. Each violation may garner a fine up to ______.
$5,000
The commission does have the authority to impose civil fines on licensees, at a maximum of
$5,000 per violation
DC licensees convicted of criminal charges may face up to a $10,000 fine, as well as ________.
1 year in jail
Colin wants to file a fair housing discrimination complaint. He decides to bypass HUD and file a civil suit in a federal district court instead. He must do this within how many days of the alleged violation?
1 yr
DC consumers who believe they are the victims of housing discrimination have ______ from the alleged violation to file a complaint.
1 yr
TOPA 5+ units
1) Landlord Makes Offer of Sale 2) Tenant May Request Information 3) Tenant Organization Required for Tenant Purchase 4) Tenant Organization Submits Statement of Interest 5) Tenant Organization Negotiates with Landlord* 6) Tenant Organization & Landlord Reach Settlement 7) Start-Over Period
TOPA 2-4 units
1) Landlord Makes Offer of Sale 2) Tenants May Request Information 3) Tenants Submit Statement of Interest 4) Tenants Negotiate with Landlord* 5) Tenants & Landlord Reach Settlement 6) Start-Over Period
TOPA process (single units)
1) owner intending to sell must send notice to tenants within 3 days of receipt/solicitation offer 2) owner may also send notice of intent to sell, demolish or discontinue use as rental housing 3) did tenants sign lease by march 31, 2018? IF NO: tenants have no further TOPA rights IF YES: did tenants move in by april 15, 2018? IF NO: tenants have no further TOPA rights IF YES: did tenants submit claim of elderly or disability status within 20 days? IF NO: tenants have no further TOPA rights IF YES: owner must send written Offer of Sale to tenants 4) did tenants submit statement of interest AND elderly/disability documentation (DHCD Form 4) within 20 days? YES: tenants may choose to purchase property, or reassign their rights to another property. THEN: 25-day negotiation period begins when landlord receives statement of interest. THEN: 45-day financing period begins when purchase contract is signed (may be extended to 75 days)
Jess is selling her condo unit in DC. Within how many days of purchase contract ratification must she provide the condo documents stated in the condo seller disclosure/resale addendum?
10 business days
A DC consumer was awarded a judgment from a real estate licensee. The consumer has been unable to collect the judgment and wishes to seek payment from the Guaranty and Education Fund. When must she submit her claim?
12 months from the date the judgment became final
A DC apartment complex is being converted to condominiums. Advance notice of _____ must be provided to existing tenants and subtenants.
120 days
Reba is selling a three unit property and makes an offer of sale to the tenants. Within how many days must the tenants submit a statement of interest to exercise their right to purchase?
15 days if the tenants are collectively exercising the right, an additional seven days if tenants are acting individually
How long is a DC condo developer required to warranty structural defects of a newly constructed unit?
2 years
As a new DC licensee, Niles is thrilled to have completed his first transaction. He bundled up all of the transaction-related paperwork and will send it to his broker's offsite storage facility with a _______-year retention period.
3
Members of the DC Real Estate Commission are limited to how many consecutive terms?
3
Typically, a panel oversees a hearing for a DC license law violation rather than the full real estate commission. The hearing panel comprises at least how many commissioners?
3
Who make up the DC real estate commission?
3 brokers 2 salespeople 2 property managers 1 attorney 1 unlicensed consumer
A DC condo seller provided the required condo documents and disclosures on the seventh business day after purchase contract ratification. If the buyer chooses to cancel the agreement, within how many days must the buyer act?
3 business days
Nina knows that she will be able to select some elective continuing education courses in order to renew her DC real estate salesperson's license, but some of her required hours are prescribed by the commission. Which of the following is a commission requirement for Nina's continuing education?
3 hours of fair housing education
How many years do commissioners of The Commission on Human Rights serve?
3 years
You and your client just successfully closed on a home. How long do you have to keep the agency disclosure notice on file that you collected early on in the transaction?
3 years
Simon is selling a 10 unit property. Within how many days from the offer of sale must the tenants provide Simon with a statement of interest to purchase if a tenant organization already exists?
30 days
After the tenants receive a TOPA notice, they have (TOPA 5+ units)
45 days to form a tenant organization with the legal capacity to hold property. They then have 120 days to enter into a contract, and another 120 days to take title. Once again, if a lender needs more time, the landlord must extend the deadline in accordance with the lender's estimate of how long it needs.
Trina applied for inactive status for her DC broker's license when her son was diagnosed with leukemia four years ago. How long does she have to reactivate her license from the time it was made inactive?
5 years
Only an incorporated Tenant Organization may exercise the right to purchase an accommodation with (TOPA)
5+ units
If not everyone is interested or if 15 days elapse since the TOPA notice was given by the owner, any tenant can assert his right to buy his home, but he must do so within (TOPA under 5 units)
7 days
Simon is selling a 10 unit property. He's made an offer of sale to the tenants of the property, who have asked for floor plans, rent roll, and other items. Within how many days must Simon provide this information?
7 days Landlords must provide this information within seven days of the request. This is true no matter how many units are in the property.
If there is a third-party offer, landlord must provide tenant with a copy of that offer within (TOPA)
7 days if requested
DC licensee Jenna presented her evidence at a commission hearing held March 19. How long does the commission have to issue its final decision regarding her case?
90 days
Ideally, listing agreements should include a definite termination date, although DC law doesn't require one. If a listing agreement doesn't have one, what does the law say?
90 days after term begins
Escrow accounts earn interest from the
91st day to the day the transaction is completed or terminated.
Muriel is an endorsement license applicant from Kentucky. Daniel is a reciprocal license applicant from Maryland. While there are some differences in what they must submit to become licensed salespersons in DC, they both must submit ________.
A Letter of Certification showing that their license is in good standing
Frank is selling his deceased aunt's home in DC and is having trouble completing some of the sections on the Seller's Disclosure Statement. Who is legally able to give him information he can use to complete the form?
A licensed inspector Only the seller can complete the disclosure, but the seller can use information gathered during a pre-inspection.
DC transaction records must be retained for ______.
A minimum of three years from the closing or transaction termination date
Puffery involves
A reasonable buyer would know that these are exaggerated claims or opinions and wouldn't rely on them as fact. An example would be: "This has to be the deal of the century." Puffing is permissible.
TOPA Eligibility (TOPA single unit)
A tenant residing in an SFA has TOPA rights if the tenant 1. is elderly or has a disability; 2. signed a written lease on or before March 31, 2018; AND 3. took occupancy on or before April 15, 2018.
Which of the following statements best describes the items required in the online disclosure required on a DC real estate firm-owned web page?
Firm's licensed name, city/state of main office, jurisdiction in which the firm holds a license
By accepting and depositing earnest money funds, a DC escrow agent is agreeing to do what?
Abide by DC license law related to handling of escrow funds.
When you walk into the reception area of Happy Homes Realty, you see the licenses of ________ displayed on the wall.
All brokers, associate brokers, and salespersons affiliated with the brokerage
Mary's been a salesperson in DC for two years. She's currently building her own professional website. In addition to her broker's contact information, what must she include on the site per DC real estate advertising guidelines?
An online disclosure Any online ad, such as her website, popups, or banner bars, much include an online disclosure or link to it. Unsolicited email is prohibited.
Carmen is the vice-president of a DC investment firm that wants to start offering real estate sales services for its clients. Which of the following statements is true about the firm's submission of a broker license application?
Anyone involved in providing real estate services needs to hold a DC real estate license.
TOPA 2-4 units step 1: Landlord Makes Offer of Sale
Before selling the rental accommodation, the Landlord must provide the Tenant with an Offer of Sale, regardless of whether a Third Party contract is already in place. For an Offer with a Third Party contract, the Landlord must provide the Tenants with a copy of the contract within 7 days of Tenants' request.
TOPA 5+ unit step 1: Landlord Makes Offer of Sale
Before selling the rental accommodation, the Landlord must provide the Tenants with an Offer of Sale, regardless of whether a Third Party contract is already in place. For an Offer with a Third Party contract, the Landlord must provide the Tenants with a copy of the contract within 7 days of Tenants' request
Negotiation Period (TOPA single unit)
Begins when owner receives statement of interest and allows 25 days for the parties to negotiate a contract.
Broker Betsy has five salespersons working under her supervision. Whose license must be displayed in the brokerage office?
Betsy's license must be displayed, as well as the licenses of the five salespersons
In DC, which type of licensee must renew their license by February 28 in odd years?
Broker
If a DC-licensed salesperson decides to quit working for a given broker and look for other employment, what happens to the salesperson's license?
Broker returns it to mayor
In DC, associate brokers are ______.
Brokers who choose to be supervised by another broker
Documentation supporting claim of elderly / disability status (DHCD Form 4) (TOPA single unit)
For elderly status: Passport, birth certificate, D.C. driver's license or ID, or "other such documentation as the Rental Conversion and Sale Administrator deems sufficient." For disability status: Social Security award letter, doctor's letter, or "other such documentation as the Rental Conversion and Sale Administrator deems sufficient." Documentation is due to DHCD (not to owner) within 20 days of receipt of offer of sale.
DC escrow agent Norman received the earnest money deposit from his clients Bud and Barbara on Friday, January 6, the day the offer was accepted. He must deposit the earnest money by the end of what day?
Friday, January 13
DC landlord Mila was found guilty of refusing to rent to Muslims. Which of the following are penalties she may face?
Civil fine up to $50,000 and compensatory damages for the complainants
Refusing to show apartments, misrepresenting availability, quoting different terms, and failing to inform persons of color of opportunities to receive more favorable rent is discrimination based on what protected class?
Color
A DC landlord would like to offer a rental unit for sale. Which of these parties must be given the first opportunity to purchase the unit?
Current tenants of the unit and building
After Marlin created his ad for a lovely two-bedroom, two-bath condo with views of the National Monument and several Metro stops in a one-mile radius, he should ______.
Get his broker's approval
Which of the following is an example of misrepresentation?
Greenwashing Greenwashing is a term that describes the misrepresentation of a property's energy efficiency or environmental benefit.
A licensee includes this phrase in a listing: "The solar panels on this home eliminate your electric bill." The panels reduce the electric bill, but hasn't eliminated it. This is an example of ______.
Greenwashing is a term that describes the misrepresentation of a property's energy efficiency or environmental benefit, generally portraying a property to be more energy efficient or more environmentally friendly than it actually is.
Breanna is selling her DC condo in order to pay for grad school. Her father Stan has agreed to pay listing broker Martin's commission so that Breanna can use all of the equity in the condo. What is true about the relationships in this situation?
Martin represents Breanna only
Online advertising that contains a DC licensee's name must include an online disclosure. Which option best details the items required to be in this disclosure?
Name of affiliated firm, licensee's office location, jurisdiction in which license is held
Carla and her clients, Bert and Ina Nowland, have just finished preparing their first listing agreement. Before they conclude their meeting, what should Carla do?
Obtain the Nowlands' written consent for designated/dual representation.
Ginny represents seller Lou and just learned that her new buyer clients, the Andersons, would like to buy Lou's property. What does Ginny need to do before preparing an offer?
Obtain written dual representation consent from Lou and the Andersons.
Tenant Opportunity to Purchase Act (TOPA) Washington, DC
On July 3, 2018, a new law became effective that exempts single family dwellings from TOPA, unless occupied by elderly or disabled tenants. i.e. A disabled veteran who signed a lease on August 11, 2018
TOPA 5+ unit step 3: Tenant Organization Required for Tenant Purchase
Only an incorporated Tenant Organization may exercise the right to purchase an accommodation with 5 or more units. Thus, Tenants must form and incorporate a Tenant Organization if such an organization does not already exist.
Offer of Sale (DHCD Form 3) (TOPA single unit)
Owner must send Offer of Sale to all eligible tenants, DHCD, and OTA (on the same day).
TOPA aims to...
Prevent displacement of low-income communities of color, long-term residents, and other marginalized renters. Preserve and generate much-needed permanently affordable housing for future generations. Curb speculation and level the playing field for tenants and affordable housing developers. Create pathways to home ownership for tenants and promote democratic-residential control of housing. Provide rental security for tenants who wish to stay and rent at an affordable rate.
In order to fulfill the DC statutory duty to promote the client's best interests, when must licensee Angelique present offers or counter-offers to her client Sandy?
Promptly until an offer has been accepted
A DC real estate licensee is assisting a buyer with a property purchase. What action must the licensee take immediately after the buyer signs an agreement?
Provide a copy of the signed agreement to the signing parties
A DC licensee is working with a buyer who is making an offer to purchase a property. What should the licensee do immediately after the buyer signs the offer?
Provide a copy of the signed offer to the buyer Copies of signed agreements must immediately be provided to the signing party.
Discrimination in housing, employment, public accommodations, and educational institutions based on these protected traits is illegal according to the DC Human Rights Act (DC Office of Human Resources): (19)
Race* (individuals with specific physical traits) Color* Sex (including pregnancy status)* National origin* (individuals from a specific country, like Korea) Religion* Age (provided the person is of majority—at least 18 years of age) Marital status Personal appearance Sexual orientation Gender identity or expression Familial status* Family responsibilities Matriculation Political affiliation Genetic information (includes disability*) Source of income Status as a victim of intra-family offense Place of residence or business Credit information (relative to employment)
Federally protected classes (7)
Race, color, religion, national origin, sex, familial status, and disability
An individual who is not a U.S. citizen wants to make an offer on a property. The DC licensee should ______.
Refer the prospective buyer to a financial institution to begin the loan process as soon as possible
Accessory Dwelling Unit ("ADU") (TOPA single unit)
Rental unit secondary to principle SFA, but has separate kitchen and bath (and maybe entrance).
A person performing real estate activities under the judgment or order of a court, such as a trustee in a bankruptcy, is _______.
Required to have at least a salesperson license
Theodore was showing his buyer clients some homes in DC after he'd had lunch with a colleague. He was clearly under the influence of alcohol, and his clients were concerned and angry. They filed a complaint with the commission. Providing services while impaired is a very serious offense, so it's a good chance that Theodore will receive a ________ as a sanction.
Revocation
Sidney didn't appear at his DC hearing scheduled for November 1 because he was having an emergency appendectomy. The commission held the hearing and issued a ruling on November 9. What are Sidney's options now?
Sidney can request to reopen the case, as long as he does so within 30 days.
Single Family Accommodation ("SFA") (TOPA single unit)
Structure (freestanding or attached) that contains room(s) forming single living space and kitchen, intended for living, eating, and sleeping.
Dean's brokerage firm adopted an electronic transaction management system. Which of the following statements is true about brokerage policies related to the system?
System permissions are on a need-to-know basis and passwords are required.
TOPA 2-4 units step 5: Tenants & Landlord Reach Settlement
Tenant will have not less than 90 days from the date of contracting to secure financing and financial assistance. If the lending institution states in writing that a decision regarding financing will be made within 120 days after contracting, the Landlord is required to grant that extension.
Statement of Interest (TOPA single unit)
Tenants have 20 days from receipt of Offer of Sale to deliver written statement of interest to owner and DHCD.
Claim of elderly or disability status (DHCD Form 2) (TOPA single unit)Documentation supporting claim of elderly / disability status (DHCD Form 4) (TOPA single unit)
Tenants have 20 days from receipt of status inquiry notice to deliver to owner written response claiming elderly or disability status. >> Failure to timely deliver response results in waiver of TOPA rights. All tenants must go through this process and provide documentation for age or disability, even if they have previously filed for elderly / disability status with the District.
Carl lives in a three-unit DC rental property owned by Margaret. Which of these is the most inclusive statement about Carl's petition rights and responsibilities?
Tenants have seven days after the offer of sale to request more information; Margaret has seven days to comply. The tenant organization has 15 days to file a statement of interest; Carl has seven days after that to file an individual petition.
What if you don't have TOPA rights? (TOPA single unit)
Tenants in SFAs who no longer have TOPA rights remain entitled to all other tenant protections under DC law.
The DC Historic Landmark and Historic District Protection Act combined the landmark list with the National Register's catalog of DC properties to create what?
The DC Inventory of Historic Sites
The DC Historic Landmark and Historic District Protection Act combined the landmark list with the National Register's catalog of DC properties to create what?
The DC Inventory of Historic sites was created when the DC Historic Landmark and Historic District Protection Act was enacted and combined the landmark list with the National Register's catalog of DC properties.How many commissioners serve on the DC Commission on Human Rights?
Which of the following is an informal alliance of organizations and individuals that represent DC historical districts and others that are interested in historic preservation?
The Historic Districts Coalition is an informal alliance of organizations and individuals that represent DC historical districts and others that are interested in historic preservation.
A DC property is part of The L'Enfant Trust. Which of these activities may be restricted?
The L'Enfant Trust maintains a Conservation Easement. The exterior of properties belonging to the trust can't be altered without consent of the trust. i.e. changing exterior color
DC consumers who believe they are the victims of housing discrimination may file a complaint with ______.
The Office of Humans Rights receives and reviews housing discrimination complaints.
TOPA definition
The Tenant Opportunity to Purchase Act, better known as TOPA, was enacted more than 30 years ago by the D.C. Council. It was designed to protect renters from being kicked out of their homes by landlords who wanted to sell their property to make more money.
Which one of the following statements about the DC agency disclosure notice is true?
The agency disclosure notice is not a contract. Although required by law, the agency disclosure notice is not a contract, and it does not create a brokerage relationship. The licensee must provide a written disclosure to any party the licensee does not represent in the transaction
A DC buyer entered into a purchase agreement with a seller for a single-family property. At the time of execution, the seller has not provided the property disclosure form. Which of these is an action the buyer could take?
The buyer can terminate the agreement, in writing, no more than five calendar days after receiving the disclosure.
Licensee Enzo just received a letter from the DC commission with an invoice for $50 for the guaranty and education fund. What must have happened to have triggered this request for funds?
The fund dipped below a minimum balance amount. If the fund goes below a certain amount, the commission may assess each licensee up to $50 during any license year to bring the balance up. The amount to be included with renewal applications is currently $60.
TOPA 5+ unit step 5: Tenant Organization Negotiates with Landlord*
The law allows a minimum 120 day negotiation period after the current Landlord receives the Tenant's Statement of Interest. The 120 days can be extended one day for each day the Landlord fails to deliver information required by TOPA. The 120 days can also be extended by 15 days if the Landlord enters into a contract with a Third Party before or during the negotiation period. This is called a right of first refusal period.
TOPA 2-4 units step 4: Tenants Negotiate with Landlord*
The law allows a minimum 90 day negotiation period after the current Landlord receives the Tenants' Statement of Interest. The 90 days can be extended one day for each day the Landlord fails to deliver information required by TOPA. The 90 days can also be extended by 15 days if the Landlord enters into a contract with a Third Party before or during the negotiation period. This is called a right of first refusal period. An individual Tenant may extend the negotiation period 30 days upon failure of the collective Tenants to reach an agreement.
Who are the commissioners on the DC Commission on Human Rights appointed by?
The mayor
Assignment of TOPA rights (TOPA single unit)
The only consideration allowed for assignment of TOPA rights is to continue renting property for another 12 months at the same rental rate. Tenants may not receive financial payments or other compensation for assigning TOPA rights. During the 12-month period: - Tenants may not receive consideration to vacate the unit. (No "cash for keys" agreements). - Tenants may be evicted only for (1) non-payment of rent; (2) breach of lease; and (3) criminal activity. Assignee of TOPA rights may re-assign them only once, without consideration, and only to a private or nonprofit corporation or partnership of which assignee is an owner, managing member, or officer.
A DC property owner is considering donating a conservation easement to The L'Enfant Trust. What tax benefits may the owner receive?
The owner may receive a tax benefit based on the diminished value of the property resulting from the placement of the easement.
Some lenders may require a completed form NPMA-33 in order to fund a borrower's home loan. What does this form document?
The results of an inspection looking for wood-destroying insects
How long must property owners or property managers keep a copy of a signed DC Lead Disclosure Form?
The signed original DC Lead form must be kept for six years.
How many commissioners serve on the DC Commission on Human Rights?
There are 11 commissioners, nominated by the mayor and confirmed by the city council, on the DC Commission on Human Rights.
Which of the following statements is true regarding agency disclosure notices in DC?
They are informational only but required by law.
Landlords must notify tenants (whether or not they have TOPA rights) when their property is being marketed
This serves as sufficient notice to the tenants and an opportunity for them to make a bid to purchase the property, albeit outside of the TOPA process.
What are the terms of service for someone appointed as a commissioner on the DC Commission of Human Rights?
Three years of service without compensation
TOPA 2-4 units step 3: Tenants Submit Statement of Interest
To collectively exercise the right of purchase, the Tenants must deliver a written Statement of Interest to both the Landlord and the Mayor (at DHCD's Rental Conversion and Sale Division). The statement must be sent by certified mail, or delivered in person, within 15 days of receipt of offer of sale by the Tenant or the Mayor, whichever is later. If the Tenants collectively fail to do so, an individual Tenant has an additional 7 days to exercise the right of purchase through a written Statement of Interest on his or her own behalf.
TOPA 5+ unit step 6: Tenant Organization & Landlord Reach Settlement
Typically the Tenant Organization will have 120 days after the date of contracting to secure financing and financial assistance. There are also extension provisions to this rule, particularly if a lending institution estimates in writing that a decision with respect to financing or financial assistance will be made within 240 days after the date of contracting, the Landlord shall afford an extension of time consistent with that written estimate.
Electronic documents and signatures are permissible per the
Uniform Electronic Transactions (UET) section of the DC Code. Electronic documents are legally equivalent to hard-copy (also called "wet signed") documents, so brokers may keep one or the other.
How often do DC real estate licensees contribute to the Guaranty and Education Fund?
Upon initial licensure and at every license renewal
TOPA 2-4 units step 2: Landlord Makes Offer of Sale
Upon receiving an Offer of Sale, the Tenants may request certain information, which the Landlord must provide within 7 days of the request, including: Building floor plan Itemized list of operating expenses, utility consumption rates, and capital expenditures for the previous 2 years. Most recent rent roll, list of Tenants, and list of vacant apartments.
TOPA 5+ unit step 2: Tenant May Request Information
Upon receiving an Offer of Sale, the Tenants may request certain information, which the Landlord must provide within 7 days of the request, including: Building floor plan Itemized list of operating expenses, utility consumption rates, and capital expenditures for the previous 2 years. Most recent rent roll, list of Tenants, and list of vacant apartments.
Five consumers won a judgment against a DC licensee for a total of $55,000. The consumers applied to the guaranty fund, and they discovered that they won't each receive full payment since the fund liability is limited to $50,000 per licensee. How will they be paid?
When losses exceed the liability, consumers are paid in a ratio proportional to their losses.
Solicitation Notice (DHCD Form 1) (TOPA single unit)
Within 3 calendar days of soliciting or receiving, in writing, an offer to purchase a SFA, an owner who has intent to sell shall deliver a written notice of the offer to all tenants in the SFA. Any tenant may make an offer to purchase the property outside of the TOPA context. Notice is good for one year (unless new tenant(s) have moved in). Civil damages against owner is only remedy. No lis pendens, TOPA Title V remedies, or other remedies preventing sale.
Tenant may request additional information including building floor plan - Itemized list of operating expenses, utility consumption rates, and capital expenditures for the previous two years. In how many days must a landlord provide this information? (TOPA)
Within 7 days
Joan began a court case against a DC licensee who misrepresented a property, resulting in a financial loss for Joan. At this point, does Joan need to make any notifications to the mayor?
Yes, Joan must notify the mayor within 30 days of the date she began her action
You're the agent for the Jansens, who are the buyers. The Yothers are the sellers, and their agent is Richard Steele. To whom are you required to present the disclosure of brokerage relationship form?
Yothers only BC THEY ARE THE SELLERS
Under certain circumstances, an attorney may perform real estate services without holding a real estate license. This would be true for an attorney who employs up to ______ salespeople.
Zero
Transactional documents and agency disclosures must be maintained for
a minimum of three years.
For those tenants who signed a lease to occupy a single-family dwelling before Dec. 31, 2017, and occupied it by Jan. 15, 2018:
a modified TOPA still exists. They must respond within 20 days after receiving notice the landlord intends to sell. If the tenant wants to buy the property, he would have 25 days to negotiate a sales contract, and closing must take place 45 days thereafter. However, if a lender needs more time, the tenant can have an additional 30 days in which to get lender approval and take title.
Acceptable document delivery methods include regular or registered mail, hand delivery, fax, or email. Copies of the documents are considered
acceptable
For example, if you live in a building with two to four units (TOPA under 5 units)
all renters must express an interest in buying to trigger TOPA
Tenants may _____ or ______ tenant rights (TOPA)
assign or sell
The DC Real Estate Commission includes only one ________.
attorney
Which of the following persons may file a fair housing complaint on behalf of another?
attorney general
Conversions of rental property are subject to a (TOPA)
certified election by the tenants.
Hannah is a new member of the DC Real Estate Commission. She's been told that the first meeting is an organizing meeting, where the commissioners will elect a ________ as required by law.
chairperson
Documents must be made available for inspection upon
commission request
The Office of Human Rights (OHR) reviews
complaints for probable cause before the commission conducts an evidentiary hearing and passes judgment on the complaint. The facts are presented to an administrative law judge (ALJ) or panel of three commissioners.
Which of the following statements about condo/co-op conversions in DC is true?
conversions require a tenant vote
Accessory dwelling units (ADU) are now
exempt from the law, even if there are renters in the main house and the ADU.
Misrepresentation occurs when
facts someone relies upon are misrepresented. This could be a statement, photo, or add that a reasonable buyer would rely on because these claims come from an expert in the field. An example would be "This property will appreciate a minimum of 15% over the next year." Misrepresentation isn't permissible and must be avoided.
Charlene has been working hard to repay the DC guaranty fund for the $18,000 claim it paid to one of her past clients. Once she finishes repaying the fund, what will happen?
her suspension will end
"Tenant Opportunity to Purchase Act"
is a type of anti-displacement housing policy that gives tenants options to have secure housing when the property they rent goes up for sale, while also preserving affordable housing
If tenant(s) are interested in purchasing a "Statement of Interest" must be sent to (TOPA)
landlord and Mayor within the statutory time frame.
Madeline lied about having her high school diploma on her DC salesperson license application. She was one credit short and never actually graduated. What's a likely disciplinary sanction after she's found to have lied on her application?
license denial Madeline will likely have her license denied. It wouldn't make sense for the commission to grant her a license only to then suspend or revoke it, or put her on probation.
Conversion is when a
licensee/escrow holder illegally uses money received on behalf of the principals.
Commingling is when a
licensee/escrow holder mixes client or customer funds with his or her own personal funds or the firm's operating account.
DC brokers ______ compensate an unlicensed person.
may not
Greenwashing is a term that describes the
misrepresentation of a property's energy efficiency or environmental benefit, generally portraying a property to be more energy efficient or more environmentally friendly than it actually is. This is a deceptive practice in which the Federal Trade Commission (FTC) may intervene. The FTC issues Green Guides that outline general principles for green advertising.
Jaedin has a purple mohawk and more piercings than Earl, a property manager, can count. Disturbed by this, when Jaedin inquired about a DC apartment vacancy, Earl lied and said the apartment was no longer available. Which protected class is Earl most likely discriminating against?
personal appearance
Only licensed brokers may advertise as "real estate broker" or
real estate broker
Under the Rental Housing Conversion and Sale Act of 1980, the Tenant Opportunity to Purchase Act (TOPA) prohibits
rental housing sale, demolition, or conversion without first offering property for sale to tenants.
Under the new TOPA law
renters will still have to be notified of their landlord's intent to sell but unlike the TOPA notice, it does not trigger a right to purchase.
Since 2015, EBCLC's Community Economic Justice Clinic has been
researching and drafting model TOPA policies with community groups for Bay Area cities, and specifically Berkeley, as part of its mission to develop meaningful anti-displacement and affordable housing preservation policies that prioritize the needs of low-income communities of color. In all of our work, the Community Economic Justice Clinic develops meaningful and effective anti-displacement and affordable housing preservation solutions through a thoughtful and collaborative process that prioritizes the needs of vulnerable tenants and advances racial justice.
Raul is a licensed ______. His primary responsibilities include helping clients and customers buy and sell property, and negotiating the purchase, sale, auction, exchange, lease, or rental of property. He must be supervised by a broker.
salesperson
The written agreement with a DC client/customer establishes how the compensation is to be made and also establishes all the following EXCEPT ________.
salesperson's commission
The district recognizes three license statuses:
salesperson, associate broker, and broker.
Earnest money is held in an escrow account and maintained by the escrow agent, otherwise known as
seller's broker
A buyer that Lydia worked with last year filed a complaint regarding her service, and she's now preparing for a hearing with the DC Real Estate Commission. The commission could ask her to participate in ______ prior to the hearing.
settlement conference
Viola is a licensee who rents out two condo units. What does she need to disclose to potential tenants?
she is a licensed real estate professional
****As of July 3, 2018 **** (TOPA)
single-family dwellings are exempt from TOPA, with the exception of current tenants who are elderly or have a disability. To qualify as a current tenant, the elderly or disabled tenant must have entered into a lease by March 31, 2018 and occupied the property by April 15, 2018.
Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the contract they sign, Jim is identified only as "the neighbor." Which statute or contract element does this violate?
statute of frauds
DC license law allows the mayor to suspend a real estate license without a hearing if the licensee is an immediate danger to the public. When Brynn's client filed a complaint about missing trust funds, the mayor immediately suspended Brynn's license. This is called a(n) ________.
summary suspension
DC owners Cassandra and Matt want to do some renovations to their historic property. They submitted a permit application to the mayor's office. Who is responsible for actually reviewing their request?
the mayor's agent for the historic preservation
Tran, the seller, and Vicki, the buyer, are represented by licensee Martin. Martin provided dual agency disclosures and received written consent from both Tran and Vicki to represent them both in the transaction. Which fiduciary duty are Tran and Vicki foregoing?
undivided loyalty
The Tenant Opportunity to Purchase Act, better known as TOPA
was enacted more than 30 years ago by the D.C. Council. It was designed to protect renters from being kicked out of their homes by landlords who wanted to sell their property to make more money
To safeguard against potential conflicts of interest, Meredith, a DC salesperson, always relies on ______.
written disclosures
DC law requires licensees to disclose their personal interest before acting on their own behalf in a real estate transaction. Which of the following must licensee Ben disclose to a buyer client when writing up an offer?
He is the seller
Which of the following is an example of conversion?
Herve withdrew funds from the trust account to pay the brokerage's rent.
Kunal lost money due to his DC real estate agent's negligence, but he's not a candidate to submit a claim to the real estate guaranty fund. What's a likely reason why he's not a candidate?
His agent is his wife
Which board implements federal review programs and evaluates applications to ensure the proposed work meets DC requirements and advises the Mayor's Agent and the State Historic Preservation Office on historic properties?
Historic Preservation Review Board
TOPA 5+ unit step 4: Tenant Organization Submits Statement of Interest
If a Tenant Organization does not already exist, the newly created Tenant Organization must deliver a Statement of Interest and Application for Registration within 45 days of receipt of the Offer of Sale by the Tenants or the Mayor, whichever date is later. If an incorporated Tenant Organization already exists, the existing Tenant Organization must deliver the same documents within 30 days of receipt of the Offer of Sale by the Tenants or the Mayor, whichever date is later. The Tenant Organization must send by certified mail or deliver in person a Statement of Interest and Application for Registration to both the Landlord and the Mayor (at DHCD's Rental Conversion and Sale Division).
Whether tenants are acting collectively or not will influence this time frame: (TOPA)
If a tenant organization exists, the Statement of Interest must be provided within 30 days of receiving the offer of sale. If an organization doesn't exist, the window is 45 days. Single-unit tenants have 30 days to deliver the Statement of Interest. Two- to four-unit tenant organizations have 15 days. Individuals have 22 days.
TOPA 2-4 units step 6: Start-Over Period
If the Landlord has not entered into a sales contract within 240 days of the Offer of Sale, the TOPA process must start over with a new Offer of Sale
TOPA 5+ unit step 7: Start-Over Period
If the Landlord has not entered into a sales contract within 360 days of the Offer of Sale, the TOPA process must start over with a new Offer of Sale.
Tres is a DC real estate salesperson. He received his license on March 3, 2018. By what date will Tres have to renew his license?
In DC, real estate salespersons must renew their license every two years on August 31 in odd years. August 31, 2019
Status Inquiry Notice (TOPA single unit)
In order to determine whether tenants claim elderly or disability status, owner may send notice of intent to sell, demolish, or discontinue use as rental housing prior to sending offer of sale. Must be sent to tenant and Office of the Tenant Advocate ("OTA") on the same day, and may be combined with Solicitation Notice. Owner may not issue Offer of Sale more than 60 days after Status Inquiry Notice.
In addition to disciplinary sanctions imposed by the DC Real Estate Commission, licensees may face a(n) ________ if the attorney general files for one in superior court.
Injunction
Brokers who choose to be supervised by another broker
It is required under DC law
DC licensee Jared assisted a colleague with a complicated transaction. The colleague wants to compensate Jared to say thank you. What must happen first?
Jared has to get authorization from his broker.
Jason is the broker of record for Desert Realty which has a main office in Sunburst. Jason is opening a branch office in Garnet which will be managed by a licensed associate broker named Kendra so that Jason can continue to work out of the Sunburst office. Which best describes the requirements for licenses at these offices?
Jason's license must be displayed at the Sunburst and Garnet offices; Kendra's license must be displayed at the Garnet office
DC broker Antonio was thrilled to close on a listing that had been on the market for six months. He realizes that it was a team effort and would like to compensate people who helped get it sold. Antonio can share his commission with which of the following people?
Licensed sales assistant
According to the DC Office of Human Rights, a possible penalty for violating fair housing law is ______.
Making the housing or loan available that has otherwise been denied to the complainant