DC Exam Prep Part 2 Flashcards

DC Exam Prep Part 2 Flashcards A real estate broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker must disclosea. both facts.b. the suicide, but not the foundation.c. the cracked foundation, but not the suicide.d.neither fact.

• The broker must disclose the cracked foundation, but

discussing the suicide could constitute a breach of duty to the client because the suicide, by DC law, is not a material or pertinent fact.A salesperson engaged in activities that constitute violations of the District of Columbia Human Rights Act, including blockbusting and discrimination on the basis of disability. The salesperson also cashed a $25,000 earnest money check from a prospective buyer and used the proceeds to buy a new car. The salesperson's employing broker was unaware of all of these activities. What is the impact on the salesperson's broker when the salesperson's violations are brought to the attention of the Real Estate Board?a. The employing broker will not likely have his or her license revoked as a result of the salesperson's violations.b. The salesperson's employing broker will be required to pay any fine imposed against the salesperson out of his or her own personal funds.c. The salesperson's actions are legally the responsibility of the employing broker who will be subject to the same disciplinary action as the salesperson, regardless of whether or not he or she knew the violations had occurred.d. The salesperson's employing broker will be held liable for the Human Rights Act violations only.

• Because the broker was unaware of the salesperson's

illegal activities, there will be no action taken against the broker as long as the Board feels the broker has provided sufficient supervision of the salesperson's activities.What is the expiration date of every salesperson's license in the District of Columbia?a. January 31 of every even-numbered yearb. August 31 of each odd-numbered yearc. October 31 of each odd-numbered yeard. Every other anniversary date of the individual salesperson's license

• In the District of Columbia, every salesperson's license

expires August 31 of each odd-numbered year.A licensed broker procures a ready, willing, and able buyer for his or her seller-client. The seller first accepts the buyer's offer in writing then experiences a change of heart and withdraws the original acceptance. In this situation, the brokera. is entitled to collect a commission.b. is out of luck because the transaction was never completed.c. may sue the buyer.d. may retain the deposit as commission.

• The broker earned the commission because the seller

accepted the offer. The deposit must be returned to the buyer, and the broker cannot take his or her commission from it.The District of Columbia's agency law requires that thea.broker keep all information that the seller has provided

confidential.b. broker disclose everything that the seller tells him or her.c. broker disclose known material defects that might affect the sale even if the buyer does not ask for them.d. seller disclose all facts that might affect the sale.

• The agency law requires that the broker disclose known

material defects that might affect the sale even if the buyer

does not ask for them.In the District of Columbia, when a broker is listing a home and asks the seller to complete a Property Condition Disclosure report, which of the following statements is TRUE?a. The disclosures are optional, and the seller may avoid liability by refusing to make any disclosures about the condition of the property.b. The standard disclosures cover a narrow range of structural conditions only.c. An agent should give the seller advice regarding which property conditions to disclose and which to ignore.d. Seller disclosure of known property conditions is required by District of Columbia statute.

• In the District of Columbia, property disclosures must be

made for the sale of all single-family to four-family dwelling units, whether or not a real estate agent is used. The agent should encourage the seller to be honest and disclose known problems but should not give the seller specific advice as to how to fill out the form.A broker received a buyer's earnest money check for $5,000 and immediately cashed it. At closing, the broker handed the seller a personal check drawn on the broker's own bank account for $5,300, representing the original earnest money plus 6 percent interest. The brokera. should have deposited the money in a special non-interest-bearing bank account.b. properly cashed the check, but should have kept the interest.c. should have deposited the money in his personal bank account and would have been entitled to keep the interest as a service fee.d. should have deposited the money in a special escrow bank account and should have followed the directions of the contract with respect to interest on the deposit.

• It was illegal for the broker to cash the check. The

broker is obliged to follow the directions of the contract in regard to the disposition of the earnest money deposit.District of Columbia law requires interest to be paid on earnest money deposits from the 91st day.A broker who wishes to place a For Sale sign on a listed property must firsta. obtain the consent of the owner of the property.b. sell the property.c. list the property.d. get permission from the neighbors.

• All advertising must be in the employing broker's name.

All funds received by a broker on behalf of his or her client in a sales agreement must be deposited in an escrow or trust account withina. three days of receiving the offer.b.three days of obtaining all signatures for the contract.c. five working days of receiving the offer.d. seven calendar days of ratification.

• Earnest money deposits must be deposited as soon as

possible, but in no event later than seven calendar days or five business days after the final ratification unless otherwise directed in the contract.A real estate salesperson has been working with buyers.After helping them negotiate for their dream home, the buyers ask the salesperson if she can help them secure a mortgage. The salesperson knows a lender that pays a fee for referring purchasers to them. Should the salesperson refer the buyers to this lender?a. No, this would be an unwise referralb. Yes, if the salesperson and the buyers

have previously entered into a written buyer agency agreementc. Yes, if the salesperson discloses the referral fee to the sellersd. Yes, if the lender offers the best interest rates and terms available in the market

• It is illegal under the Real Estate Settlement and

Procedures Act (RESPA) for the salesperson to receive anything of value in exchange for referring a client to a lender.A real estate licensee must give the Agency Disclosure Statement to prospective purchasers/tenantsa. before they are shown any properties.b. at an open housec. at the