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DC Real Estate Exam Practice Test: 150 Questions with Verified Answers, Quizzes of Property Law

A comprehensive set of 150 practice questions and answers covering various aspects of dc real estate, including property ownership, legal concepts, regulations, and common practices. It is designed to help individuals prepare for real estate exams in the district of columbia.

Typology: Quizzes

2024/2025

Available from 02/05/2025

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DC REAL ESTATE EXAM PRACTICE TEST 150
QUESTIONS WITH 100% VERIFIED ANSWERS
GUARANTEED PASS!
"How long must property owners or property managers keep a copy of a signed DC lead disclosure form?
- CORRECT ANSWER=> 6 years"
"a property that the seller is selling for less than the seller owes against the property - CORRECT
ANSWER=> short sale"
"ownership has reverted to the lender because of a failed foreclosure sale or because of the property to
the lender through a deed in lieu of foreclosure - CORRECT ANSWER=> REO sale"
"calculated based on property's assessed value; government likes them because they are a stable,
reliable revenue source - CORRECT ANSWER=> property taxes"
"property transfer fees that are not included in the sales price - CORRECT ANSWER=> closing costs"
"closing costs (7) - CORRECT ANSWER=> 1. loan fees
2. appraisal and survey fees
3. title insurance
4. legal fees
5. RE commissions
6. tax and insurance pre payments
7. transfer fees"
"common seller credits (2) - CORRECT ANSWER=> 1. sale price of property
2. prepaid taxes/utilities"
"common buyer credits (3) - CORRECT ANSWER=> 1. earnest money
2. mortgage amount
3. seller concessions"
"common seller debits (5) - CORRECT ANSWER=> 1. transfer taxes
2. broker commission
3. attorney's fees
4. recording documents to clear title
5. existing mortgage satisfaction"
"common buyer debits (6) - CORRECT ANSWER=> 1. appraisal and credit report fees
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Download DC Real Estate Exam Practice Test: 150 Questions with Verified Answers and more Quizzes Property Law in PDF only on Docsity!

DC REAL ESTATE EXAM PRACTICE TEST 150

QUESTIONS WITH 100% VERIFIED ANSWERS

GUARANTEED PASS!

"How long must property owners or property managers keep a copy of a signed DC lead disclosure form?

  • CORRECT ANSWER=> 6 years"

"a property that the seller is selling for less than the seller owes against the property - CORRECT

ANSWER=> short sale"

"ownership has reverted to the lender because of a failed foreclosure sale or because of the property to

the lender through a deed in lieu of foreclosure - CORRECT ANSWER=> REO sale"

"calculated based on property's assessed value; government likes them because they are a stable,

reliable revenue source - CORRECT ANSWER=> property taxes"

"property transfer fees that are not included in the sales price - CORRECT ANSWER=> closing costs"

"closing costs (7) - CORRECT ANSWER=> 1. loan fees

  1. appraisal and survey fees
  2. title insurance
  3. legal fees
  4. RE commissions
  5. tax and insurance pre payments
  6. transfer fees"

"common seller credits (2) - CORRECT ANSWER=> 1. sale price of property

  1. prepaid taxes/utilities"

"common buyer credits (3) - CORRECT ANSWER=> 1. earnest money

  1. mortgage amount
  2. seller concessions"

"common seller debits (5) - CORRECT ANSWER=> 1. transfer taxes

  1. broker commission
  2. attorney's fees
  3. recording documents to clear title
  4. existing mortgage satisfaction"

"common buyer debits (6) - CORRECT ANSWER=> 1. appraisal and credit report fees

  1. inspection costs
  2. mortgage recording tax
  3. title insurance
  4. loan fees
  5. attorney's fees" "already paid by the seller but that the buyer should pay a portion of; CREDITED to seller and DEBITED to

buyer - CORRECT ANSWER=> prepaid expenses (ex: prepaid RE taxes, utilities paid in advance)"

"items the seller owes on closing day but that will eventually be paid by the buyer; DEBIT to seller and

CREDIT to buyer - CORRECT ANSWER=> accrued expenses (ex: unpaid property tax)"

"shared expenses that either party owes at closing (shared) - CORRECT ANSWER=> prorations (ex:

property taxes, HOA dues, fuel, water and sewer charges)"

"conveys real estate to a trustee for the beneficiary named in the trust agreement - CORRECT

ANSWER=> deed in trust"

"carries no warranties to the grantee; releases any of the grantor's property rights to the grantee; used

to clear up a simple cloud on title - CORRECT ANSWER=> quitclaim deed"

"grantor promises to protect and defend the title against lawful claims made by others - CORRECT

ANSWER=> covenant of warranty"

"grantor promises to take whatever actions necessary to correct any title defects - CORRECT

ANSWER=> covenant of further assurances"

"grantor assures that the grantee's use and enjoyment of the property will be unimpaired and

unrestricted - CORRECT ANSWER=> covenant of quiet enjoyment"

"the grantor assures the grantee that there are no encumbrances against the title other than those

identified in public records or the deed itself - CORRECT ANSWER=> covenant against encumbrances"

"the grantor has the right to convey both title to the possession of the property - CORRECT ANSWER=>

covenant of right to convey"

"the grantor holds title to and possession of the property - CORRECT ANSWER=> covenant of seisin"

"offers the greatest warranty to buyers and is the preferred type of deed in most situations - CORRECT

ANSWER=> general warranty deed"

"most common title defect in real estate - CORRECT ANSWER=> seller's existing mortgage lien"

"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? - CORRECT

ANSWER=> the fund dipped below a minimum balance amount"

"dual agency aka - CORRECT ANSWER=> dual representation"

"brokers from maryland and VA may be eligible for DC _____ licensing - CORRECT ANSWER=>

reciprocal" "uses planning, protection, and public education to promote stewardship of DC's historic properties -

CORRECT ANSWER=> historic preservation office"

"according to the DC Office of Human Rights, a possible penalty for violating fair housing law is_______ -

CORRECT ANSWER=> making the housing or loan available that has otherwise been denied to the

complainant"

"how many years does a home warranty cover structural damage? - CORRECT ANSWER=> 10 years"

"Act created an innocent landowner defense; determines liability - CORRECT ANSWER=> SARA"

"equal ownership with unity of time, title, interest, and possession - CORRECT ANSWER=> joint

tenancy"

"no down payment, no mortgage insurance, and no prepayment penalty - CORRECT ANSWER=> VA

loan" "mortgage that requires the borrower to pay interest for a set term then pay off the loan in a lump sum

or through another loan - CORRECT ANSWER=> straight term"

"capital gains fall into which stage of the property ownership life cycle? - CORRECT ANSWER=>

reversion"

"a document to transfer ownership/interest in real estate - CORRECT ANSWER=> deed"

"to provide consumers with better information about the true costs of credit and to protect them from

certain misleading practices by the lending industry - CORRECT ANSWER=> regulation z"

"why would buyers want to know whether a property is currently experiencing a tax abatement? -

CORRECT ANSWER=> their taxes are likely to increase when the abatement period ends"

"while improvements may deteriorate, land can't be destroyed - CORRECT ANSWER=>

indestructability"

"former owner - CORRECT ANSWER=> grantor"

"new owner - CORRECT ANSWER=> grantee"

"the lower-priced option of the two properties of equal quality will likely sell first - CORRECT

ANSWER=> substitution"

"maximum fine for a criminal proceeding - CORRECT ANSWER=> $10,000 (as well as up to 1 year in

prison)" "the escrow agent is required to deposit earnest money within _____ days after receiving it from the

buyer - CORRECT ANSWER=> 7"

"which of these tenants of a single-family property in DC would NOT be eligible to exercise TOPA rights? -

CORRECT ANSWER=> a disabled veteran who signed a lease on August 11, 2018 (by march 31,2018)"

"require a tenant vote - CORRECT ANSWER=> conversions"

"terms of service for someone appointed commissioner on the DC Commission of Human Rights? -

CORRECT ANSWER=> 3 years of service without compensation"

"1031 tax-deferred exchange ___ days must he close - CORRECT ANSWER=> 180"

"take priority over any and all other liens on the property in most states - CORRECT ANSWER=>

property tax liens"

"corporations/sole proprietors hold property this way - CORRECT ANSWER=> in severalty"

"what does CMA determine? - CORRECT ANSWER=> market price range"

"member-based cooperatives that provide credit for auto loans and home loans, and also take deposits

and offer things like savings vehicles and money markets - CORRECT ANSWER=> credit unions"

"provides you money for the loan/make loans using in-house loan processors and underwriters -

CORRECT ANSWER=> mortgage banker"

"match consumers with lenders (dont find loans) - CORRECT ANSWER=> mortgage broker"

"common range for loan origination fees - CORRECT ANSWER=> 1-3%"

"granted to a specific individual or company - CORRECT ANSWER=> easement in gross"

"which of the following statements about the number of contingencies in a sales contract is true? -

CORRECT ANSWER=> more contingencies makes buyer less likely to accept offer"

"closing disclosure not required - CORRECT ANSWER=> HELOC"

"each legal description in the rectangular government system originates at... - CORRECT ANSWER=>

the intersection of a principal meridian and a baseline"

"permits comparison shopping for loans - CORRECT ANSWER=> the loan estimate"

"a property that is being sold by the lender due to the buyer's default - CORRECT ANSWER=>

foreclousre"

"allows the lender to make the entire loan amount due immediately - CORRECT ANSWER=>

acceleration clause"

"conceal their identity behind someone else's name and credit - CORRECT ANSWER=> straw buyers"

"investor receives title to a property often by using a straw buyer; doesn't make the mortgage payments,

and usually rents out the home until foreclosure occurs - CORRECT ANSWER=> equity skimming"

"how many days before closing must you provide a closing disclosure? - CORRECT ANSWER=> 3"

"consumer protection statute designed to protect home buyers from unscrupulous lending and

settlement practices - CORRECT ANSWER=> RESPA"

"requires lenders to disclose credit terms and conditions when advertising triggers loan terms so as to

not mislead consumers - CORRECT ANSWER=> TILA"

"national banks that offer consumer and business loans for resale on the secondary mortgage market -

CORRECT ANSWER=> commercial banks"

"primary mortgage lender types (5) - CORRECT ANSWER=> 1. commercial banks

  1. credit unions
  2. savings and loan associations
  3. mortgage bankers
  4. mortgage brokers"

"gives the lender the right to declare the entire amount due - CORRECT ANSWER=> alienation (due-on-

sale clause)"

"when does the lender fund the loan? - CORRECT ANSWER=> when the seller has conveyed the

property"

"seller holds a mortgage that wraps the new buyer's mortgage around the seller's existing mortgage -

CORRECT ANSWER=> wrap-around mortgage"

"a loan a seller issues to the buyer as a part of the purchase transaction (used when a buyer cannot

qualify for a mortgage through traditional means) - CORRECT ANSWER=> purchase money mortgage"

"requires the buyer to make installment payments to the seller for property purchase - CORRECT

ANSWER=> land contract/contract for deed"

"temporary or short-term loan that provides funds until buyers can obtain permanent financing -

CORRECT ANSWER=> bridge/swing loan"

"when payment fails to cover the amount of interest due - CORRECT ANSWER=> negative

amortization" "interest rate fluctuates based on some selected economic index (lower interest rate for an initial period)

  • CORRECT ANSWER=> adjustable mortgage rate (ARM)"

"where borrower pays off the loan in one lump sum - CORRECT ANSWER=> balloon payment"

"principal portion of the payment increases each month while interest portion decreases - CORRECT

ANSWER=> fully amortized loan"

"where the loan principal is paid down over the life of the loan - CORRECT ANSWER=> amortized loan"

"how do VA loans minimize risk? - CORRECT ANSWER=> guarantee up to a quarter of the loan limit

amount should the buyer default"

"applies to ALL FHA loans for the life of the loan - CORRECT ANSWER=> mortgage insurance premium"

"a conventional loan that fails to meet fannie mae and freddie mac guidelines - CORRECT ANSWER=>

non-conforming loan"

"meets the loan limit and other criteria that fannie mae and freddie mac set - CORRECT ANSWER=>

conforming loan"

"most secure loan - CORRECT ANSWER=> conventional (bc they require a down payment of 20% thus

reducing the LTV to 80%)" "orders the lender or trustee to immediately release full title to the borrower once the loan is paid in full

  • CORRECT ANSWER=> defeasance clause"

"the borrower's promise to repay the mortgage loan - CORRECT ANSWER=> promissory note"

"Licensees must complete ______ hours of continuing education every two years - CORRECT

ANSWER=> 15"

"What is the current per-licensee maximum that can be collected from the DC Real Estate Guaranty and

Education Fund? - CORRECT ANSWER=> $50,000"

"Carl lives in a 3 unit DC rental property owned by Margaret. Which of these is the most inclusive

statement about Carl's petition rights and responsibilities? - CORRECT ANSWER=> Tenants have 7 days

after the offer of the sale to request more information; Margaret has 7 days to comply. The tenant organization has 15 days to file a statement of interest; Carl has 7 days after that to file an individual petition" "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? -

CORRECT ANSWER=> 30 days (bc tenant org already exists; if one doesn't exist it is 45 days)"

"mixing earnest money with personal funds - CORRECT ANSWER=> commingling"