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DC RE State Exam (Review 1) Questions and Answers
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DC RE State Exam (Review 1) Questions and Answers
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DC RE State Exam (Review 1) Questionsand Answers
Relationship of parties - Answer -When a dispute occurs, courts tend to favor tenants
and buyers over landlords and sellers.
What does obtaining a survey do - Answer -Obtaining a survey will clearly define the
property and its boundaries and will reveal any potential issues related to those
boundaries.
lot and block - Answer -Provides plat references
In a real estate transaction in which you represent the seller, your duty to other parties
is to ______.
Be honest in all matters that do not affect your client's interests
Be polite and courteous
Maintain the confidentiality of all matters that other parties disclose to you
Treat them honestly and fairly - Answer -Treat them honestly and fairly
Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an
earnest money deposit for 10% of her offer, which the seller accepts. She brings to
closing a cashier's check for $35,025 comprising the balance of her 20% down payment
and closing costs. What's the amount of her total down payment?
$35,025
$54,150
$57,000
$62,100 - Answer -$54,150
Which of the following statements about earnest money in DC is true?
Earnest money is rarely the subject of lawsuits against real estate licensees and their
brokers.
Earnest money must be placed in an escrow account within seven days of receipt.
,The amount of earnest money is non-negotiable.
The seller specifies the amount of earnest money the buyer will deposit and when the
deposit will be made. - Answer -Earnest money must be placed in an escrow account
within seven days of receipt.
Which of the following questions can an agent in a dual agency transaction answer
without breaching her duties to either client?
Are you aware of any structural issues with the property?
How much should my counter-offer to the buyer be?
What repairs or concessions should I ask for from the home inspection?
What should I agree to fix from this list the buyer sent? - Answer -Are you aware of any
structural issues with the property?
Ashton, an appraiser, is estimating value using the sales comparison approach. He
applies more weight to two comparables over several others he used. What process is
he utilizing?
Averaging
Bracketing
Conformity
Correlation - Answer -Correlation
To which of the following borrowers might a lender be most likely to recommend an FHA
loan?
An investor who intends to use equity in another investment property as his down
payment
A retired couple interested in downsizing from a large four-bedroom house they own
free and clear to a condominium
A single stockbroker with a $40,000 down payment and significant assets in a stock
portfolio
A young couple with only a few thousand dollars saved for a down payment and
relatively low credit scores - Answer -A young couple with only a few thousand dollars
saved for a down payment and relatively low credit scores
Allen and Lewis are friends who each recently purchased real estate. Allen purchased a
patio home in a small town an hour from the city, while Lewis purchased a condo in a
really hot area near the city center. Although they paid similar amounts for their
properties, Lewis' condo is worth much more two years later. Which economic
characteristic does this demonstrate?
,Area preference
Improvements
Permanence
Scarcity - Answer -area preference
Hope's mortgage created a lien against the property she purchased with the mortgage.
What kind of lien is this?
General
Special assessment
Vendor's
Voluntary - Answer -Voluntary
Chrissy lives in Lake Ridge Estates, a neighborhood in which vinyl siding may not be
used on homes. This HOA regulation is what kind of private land control?
CC&R
Deed restriction
Law
Regulation - Answer -CC&R
Assuming that dual agency is legal where these scenarios occur, and the licensees'
brokerages permit it, which of these situations demonstrates illegal dual agency?
At an open house Tom is holding for his client, Rod, a buyer says she wants to make an
offer. She details her situation; Tom waits until she finishes and then suggests that she
offer a non-refundable earnest money deposit to strengthen her offer.
Jarrod represents the seller, Juan. A buyer, Alaina, approaches Jarrod about
representing her in the purchase of Juan's house. Jarrod obtains Juan and Alaina's
consent to dual agency.
Kady's firm uses representation agreements that, when signed, provide consent to dual
licensee dual agency. Kady's buyer makes an offer on one of Kady's colleague's
listings.
Levi's customer, Renee, wants to make an offer on Levi's seller client's home. Levi
presents Renee's offer to his client. - Answer -At an open house Tom is holding for his
client, Rod, a buyer says she wants to make an offer. She details her situation; Tom
waits until she finishes and then suggests that she offer a non-refundable earnest
money deposit to strengthen her offer.
, Leo's client is looking for a property with at least 2,500 finished square feet. He finds a
2,200-square-foot property with all the other features the client is looking for and
purposely fails to mention the square footage. His client agrees to look at the property,
falls in love with it, and wants to make an offer. Which of these statements accurately
represents Leo's level of misrepresentation in this situation?
Because Leo didn't state the square footage, he's not guilty of misrepresentation.
It's the buyer's responsibility to ensure that the property has the proper square footage,
so Leo's in the clear.
Leo obviously knew about the square footage and intentionally didn't mention it. He's
guilty of intentional misrepresentation.
Leo omitted a material fact. This is considered unintentional misrepresentation. -
Answer -Leo obviously knew about the square footage and intentionally didn't mention
it. He's guilty of intentional misrepresentation.
Bernie represented Oscar in the sale of Oscar's home. They signed an exclusive right-to
sell-listing agreement. If Oscar were able to find his own buyer, would he owe Bernie a
commission?
No, because he found his own buyer.
No, because Oscar retained his exclusive right to sell.
Yes, because "exclusive right to sell" means Bernie gets paid no matter who finds the
buyer.
Yes, because Oscar is not a real estate licensee. - Answer -Yes, because "exclusive
right to sell" means Bernie gets paid no matter who finds the buyer.
Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with
cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his
home sales, which totaled $538,000. What is Jared's brokerage's commission rate?
2.3%
3.8%
6.5%
7.6% - Answer -6.5%
What factors does the underwriter consider in reviewing a mortgage loan application?
Capacity, collateral, and criminal record
Credit, capacity, and collateral
Credit, capacity, and collections
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