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DC Real estate exam 1.2 questions and answers
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DC Real estate exam 1.2 questions and answers
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DC Real estate exam 1.2 questions andanswers
When preparing the sales contract, when is it acceptable for a licensee who is not an
attorney to offer legal advice to the client? - Answer -Never
(Licensees should never offer legal advice to their clients—unless they also happen to
be practicing attorneys.)
In a real estate transaction, whom may a licensee represent? - Answer -A client
A defect on a title that can be monetary or physical is called an ______. - Answer -
Encumbrance
What's the term for a contract for which one or more terms have yet to be completed? -
Answer -Executory
Loans available through the Farm Service Agency have which of the following
characteristics? - Answer -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)
Debra is a licensed DC broker who manages two branch offices for her realty company,
Effective Realty. What is true about her license? - Answer -It has to be displayed at both
branches.
(Broker licenses must be displayed at all branches managed by the given broker.)
What do shares in a co-op confer to shareholders? - Answer -A proprietary lease to
possess their unit, use the property, and share in the amenities
(Co-op shareholders don't own any real estate; they own shares in the corporation.
Those shares come with a proprietary lease to use the property, to possess their unit,
and to share in the amenities. The shares are personal property, just like a share in any
corporation would be.)
, Disclosing which of the following facts would be considered a fair housing violation? -
Answer -The current owner has HIV.
(HIV or AIDS status cannot be disclosed under any circumstances. This is a fair housing
law violation.)
What's the term for certified energy-efficient homes that have met specific
qualifications? - Answer -ENERGY STAR®-qualified homes
Fiona and her husband, Ed, have just entered into their first-ever agency agreement
with their new agent, Ken. The couple is a little nervous, but they like the idea that they
have something in writing that explains both their agent's responsibilities and what
they're expected to do as part of the relationship agreement. Life is good. What type of
agency exists between Ken and his clients? - Answer -Written express agency
George just applied for a conventional loan on a cottage he wants to buy. What
percentage of the loan can he expect to submit as a down payment? - Answer -20%
(Down payments generally range from 20% at the high end, down to as little as 0% for
some Fannie Mae loans; Federal Housing Administration loans require 3.5%. The
standard rate for a conventional loan, though, is 20%.)
What must occur to effect a transfer of title? - Answer -The grantor must deliver a valid
deed to the grantee.
What is the purpose of an operating budget? - Answer -It provides income and expense
projections.
With which approach to value does the appraiser analyze a property's ability to earn
future income? - Answer -Income approach
Which of the following actions would be outside the DC Real Estate Commission's legal
scope? - Answer -Recommending jail time for a licensee found guilty of a criminal
violation
(The commission doesn't hear criminal cases nor make recommendations relative to
criminal penalties.)
Which term is used for the individual who conducts the closing? - Answer -Closing
agent
Which agency enforces federal fair housing laws? - Answer -FHEO
Which term refers to a permitted deviation from current zoning restrictions that allows an
owner to use land for a purpose that's otherwise prohibited, and requires the owner to
prove the zoning creates an unnecessary hardship? - Answer -Use variance
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