FlashCEX_DC RE Flashcards
1
Q
Number of members on the DC Real Estate Board (DCREB) and their occupations. And required experience.
A
Nine: 3 brokers; 2 salespersons; 2 property managers; 1 consumer; 1 attorney. Must be DC residents with 5 years experience and engaged in practice (except attorney).
2
Q
Term of DCREB Members
A
3 year term beginning Feburary 28th. No one can be appointed to serve more than three full consecutive three-year terms.
3
Q
How are DCREB Members Appointed?
A
Appointed by the Mayor and confirmed by the City Council; The Chairman is selected from its members. Mayor may remove.
4
Q
Quorum of DCREB
A
Five of nine.
5
Q
Powers of DCREB
A
Determine the scope of practice, licenses and continuing education requirements; hear and decide licensing protests; receive complaints, investigate and discipline.
6
Q
Powers of the Mayor
A
Mayor sets fees; issues and renewals, licenses, budgets, records. The board supports mayor.
7
Q
Qualifications for Licensure (name 7)
A
1) 18 years old; 2) read and write English; 3) high school graduate; 4) take 60 hour course; 5) have no suspensions in effect; 6) no revocation within the last three years; & no fraud within 5 years.
8
Q
License Terms for sales person: what month do terms start. Broker term period is different, what is it?
A
Salesperson is for two years, starting September 1 in an odd year; Broker starts March 1 in an odd year.
9
Q
Continuing Education Requirements: number of hours; how many mandatory and how many electives. What are mandatory classes?
A
15 hours for each two year renewal. “Nine (9) of these
hours shall consist of mandated courses (ethics, law, fair housing) with curriculum administratively established and approved by the Commission. Six (6) of these hours will be
general elective courses as approved by the Commission.
10
Q
Broker Qualifications: how many years as sales person? Hours classes to become a broker?
A
Two years as salesperson, 135 hours, and exam.
11
Q
DC Fiscal and Tax Years
A
Fiscal Year is October 1-September 30; Tax Year is July 1- June 30. Taxes are paid March 31 (Oct 1-Mar 31) and September 15 (Apr 1-Sep 30).
12
Q
Brokerage: who heads it and who owns it?
A
Headed by one principal broker who does not have to be the owner, but does manage the day-to-day affairs. May hire and use salespersons for whom he is responsible.
13
Q
Branch Office: who can manage?
A
Each branch office is managed by an associate broker.
14
Q
Requirements for displaying licenses
A
All licenses must be displayed in a DC Office that is a real office. “shall conspicuously display therein the license of all persons licensed to act as a broker or
salesperson and shall likewise conspicuously display on the door or outside of the premises named in the license a sign bearing the word “Real Estate” or where
authorized, “Realtor” or “Realtist.”
15
Q
When a Broker’s License Suspended what happens to agent licenses.
A
If a broker’s license is suspended, so are the licenses of all of the salespersons working under him.
16
Q
Property Managers regulations, what are they?
A
Property Managers have their own licensing scheme and are not allowed to sell real estate, but only manage property. Resident managers are no longer licensed.
17
Q
When can a salesperson change brokers?
How many days should it take for license to to new broker?
Are there restrictions on when you can change?
A
A salesperson can change brokers at any time. The old license must be mailed to the commission with the request for the new one, signed by the new broker. This should take 30 days. No transfers 60 days prior to renewal.
18
Q
What are the regulations for escrow accounts?
A
Must be in a federally insured DC bank, in broker’s name. Name, post office address and account number should be sent to the DCREB within 14 days. May not co-mingle funds.
19
Q
Violations of DC Licensing Code: penalty for first and second offences?
A
For violation of licensing provisions- up to 1 year or $10,000. Fine for second offense is $25,000. Prosecutions for violations brought by DC Attorney General.
20
Q
Landlord Tenant Laws Occupancy Max Security Deposit Time for lessor to inspect after vacancy Time security deposit must be returned
A
Maximum occupancy is 2 times the number of bedrooms plus one. Maximum security deposit is one month. Lessor must inspect within 48 hours of vacancy, any deductions must be documented and the balance of the deposit returned to the tenant within 45 days.
21
Q
Rent Stabilization Applicability
Who must comply/register
A
DC Rental housing Act says owners of four or more units must comply, and five or more must register.
22
Q
Rent Stabilization Act
When may rent be raised/lowered–what kind of notice.
A
Rents can be raised once every 12 months; Rents may be raised or lowered with 30 day notice; lessors may seek relief for hardship or by 70% of tenants voluntary agreeing. Annual increases must follow CPI and DCRA guidelines.
23
Q
Eviction: number of days a tenant needs for start eviction?
Number of days notice for notice to move out for substantial rehab of rental unit?
Number of days notice for eviction for demolition reasons?
A
No notice is required to start eviction proceedings; 120 day notice for a substantial rehabilitation; and 180-day notice for demolition.
24
Q
What kind of agreement–verbal/written? What also must it have?
A
Must be in writing and have a certain termination date.
25
Sign posting requires what from owner?
Posted only with the written consent of the property owner.
26
Agent advertisements must include ....
Under the direct supervision of the principal broker or
| supervising broker, shall include the name of the firm and phone number.
27
Net Listing is what and is it legal
realtor guarantees a price, sells higher and keeps difference. A net listing is illegal.
28
Disclosure about properties required of realtors.
A sales person must disclose all pertinent facts on a property, including any defects. Need not disclose AIDS or medical condition not transferred through property; or crime scene or murder.
29
Earnest Money
Salespersons cannot deposit or handle any money. Deposits should be turned over to broker and placed in escrow immediately. EMD held more than 90 days shall earn interest.
30
DC Rental Housing Conversion and Sales Act define
Protects low income and elderly tenants in the event of conversion to condo or coop. Tenants may form an association and vote. 51% of tenants must approve conversion.
31
```
Guarantee and Education Act Fund purpose
Cost per license
max fund amount
min fund amount
max payout and what is required for payout
```
Restitution for defrauded members of the public. Each licensee pays $60. The Fund shall, at all times, be maintained with a balance of no less than one million
forty thousand dollars ($1,040,000) and not more than five million dollars ($5,000,000). Maximum payout is $50,000. Needs court order and mayoral approval. Licensee must repay prior to reinstatement.
32
Who can conduct real estate sales without a licence?
| Seven categories
Attorney, attorney in fact, government employees preforming official duties; court officers, owners, auctioneers, and secretaries in real estate offices (ministerial only).
33
Office of Public Records does what in regard to sales persons
Licensee file maintained with annual list of suspensions and revocations.
34
Reciprocity
Maintained for states with similar standards; Mayor has final say.
35
Property Managers
Agent for owner for property management. May employ resident managers, but property manager remains responsible. May not preform sales, listing, purchase etc. Only licensed property managers may use term.
36
Property Managers Qualifications
English, pass exam, high school education, no license denied, suspended or revoked.
37
Real Estate Salesperson Qualifications
English, high school, course, exam, no suspensions or revocations.
38
Licensure of Real Estate Organizations
May be issued to an entity that is organized under DC or federal law; every person member, employee and branch manager must be licensed.
39
How long does broker have to notify of new address, and what does he do with licenses when he moves? What happens to licenses when there are more than one office?
If more than one office in DC can get duplicate licenses; if a broker changes location, he has have 15 days to notify mayor and return old licenses and get new ones. May be suspended for failure to notify DCREB of new address.
40
Prohibited Names for real estate business/brokerage
Names are not allowed that are misleading, imply a partnership that does not exist, include salesperson's name, in violation of law, includes the name of unlicensed persons.
41
Fidiciary Duties When Representing a Seller
Perform in accordance with agreement; act in the best interest of seller, seek agreed upon price and terms, present in a timely manner all written offers; disclose material facts related to property; account; maintain confidentiality; exercise ordinary care; Treat all honestly. Must disclose brokerage relationships. May provide ministerial acts for buyer. May show buyers alternative properties.
42
Is a broker/sales person liable for not reporting material facts they don't know about?
Broker is not liable for information told by seller for which he has no knowledge of falsity.
43
Fiduciary Duties When Representing a Buyer
Act in accordance with agreement; act in buyer's interest; seek property at buyer's price; present offers timely; disclose material defects, account, confidentiality, ordinary care. Treat all honestly. Ministerial assistance to seller. May show property in which the buyer is interested to others. Must disclose brokerage relationships.
44
Fiduciary Duties When Representing a Landlord
Act in accordance with agreement; act in landlord's interest; seek lease rates at landlord's rent; present offers timely; disclose material defects, account, confidentiality, ordinary care. Treat all honestly. Ministerial assistance to tenant. May show other property to prospective tenants. Must disclose brokerage relationships.
45
Fiduciary Duties When Representing a Tenant
Act in accordance with agreement; act in tenant's interest; seek property at tenant's price; present offers timely; disclose material defects, account, confidentiality, ordinary care. Treat all honestly. Ministerial assistance to landlord. May show property in which the tenant is interested to other prospective tenants. Must disclose brokerage relationships.
46
Rules for Brokerage Relationships regarding term and termination?
Must have a definite termination; If not, 90 days after entry into relationship. Broker owes no duty after termination, except accounting and confidentiality.
47
When to have written Brokerage Disclosure?
Upon any substantive conversation about a specific property, the licensee shall disclose in writing his or her brokerage relationship. If relationsip changes, licensee shlll disclose any changes to all other parties.
48
How long must Disclosures be kept?
Must be kept for 3 years.
49
Dual Agency
Must be disclosed in writing and creates a presumption of consent in substantially the form provided by the DCREB. No cause of action shall accrue by virtue of making the disclosures. Licensee may withdraw without liability from representing any client that refuses to consent. Broker may appoint two designated representatives, and only the broker is considered to be a dual agent.
50
Brokerage Relationship by Payment
Payment or a promise of payment does not create a brokerage relationship.
51
Prohibited Acts
Misrepresentation; Dual Agency without consent; No fees except from your broker; property managers failing to keep proper records; Representing another broker without your broker's consent; demonstraing unworthiness or incompetence; failing to account; failing to disclose that broker is a principal in a transaction that he is interested; using an unauthorized trade name; guaranteeing results of a future real estate transaction.
52
Additional Prohibited Acts
Offering property without the consent of the owner; accepting a non-written listing agreement; failing to escrow deposits; comingling escrow money; inducing a breach of an existing agreement; making oral representations of improvements without written documentation; not bona fide deeds for misrepresenting value of transaction; knowiongly paying a commission to a non-licensed person.
53
Escrow Accounts
| When must deposit be made? How long to notify DCREB of establishment of escrow account? When must interest be earned?
Deposited within 7 days in an insured financial institution located in DC.; Notify the DCREB within 14 days of establishment of an escrow account; If held for more than 90 days, must earn interest at highest legal rate for savings or rate on the escrow account, or on the CD given as the deposit.
54
Real Estate Guaranty and Education Fund
| How soon can proven defrauded person have access? What's highest payment from fund? When must mayor be notified?
Established; every broker pays in as a condition of renewing license. The application for payment from fund shall be filed no later than 12 months after the date on which the judgment became final. The Department shall make a payment from the Fund to an applicant for payment within sixty (60) days after an order is signed by the Commission; provided, that sufficient money is on deposit in the Fund. Notify Mayor after 30 days of commencement of action.
55
What is level of broker supervision to salesperson?
Must be reasonable and adequate; but is not an employer / employee relationship.
56
Consideration of reasonable and adequate?
number of licensees; number of branch offices; number of management personnel; type of real estate activity of the firm; frequency of training; review by experienced personnel; written procedures with guidelines
57
Written Procedures Required by broker in management of sales persons
For deposit of money; compliance with fair housing laws; advertising requirements; review of contracts; limitations on the use of unlicensed personnel; disclosure of agency relationships; currency; compliance with law and code of ethics; and unauthorized practice of law.
58
What kind of Evidence of Reasonable and Adequate Supervision can a broker provide to board?
Records of attendance at staff meetings; review of contracts by broker; compliance with policies; dissemination of written policies.
59
Advertising Requirements for signs and online
Subject to disclosure requirements of act; may not be misleading; no use of nicknames; broker name and phone number. Online material should include disclosure-Name of firm and main office and jurisdiction for firm and licensee; Only licensees can use the term broker real estate salesperson; or RES or REB.
60
License Term
Broker and property manager?
Salesperson
For Broker or Property Manager-March 1, odd year for two years. For salesperson September 1, odd year for 2 years
61
Renewal of License
60 days before DCREB sends notice. Licensee must keep DCREB aware of current address.
62
License Lapses
If within 60 days may pay late fee and then as if timely renewed; after 60 days must apply for reinstatement.
63
Reinstatement of Expired License
File required application and pay required fee within 5 years of lapse. Must demonstrate fitness and competence. DCREB will consider length of time in practice; time of lapse; violations of law; character and qualifications; and continuing education required during lapse.
64
Reinstatement of a Suspended or Revoked License.
Must wait three years after revocation, otherwise similar to reinstatement. Must recognize seriousness of conduct and take steps to rectify. If reinstatement is denied, must wait a year to reapply.
65
Exemptions from Licensing
Acting under a court order; recievers; owners in the regular course; trustees under a power of sale;
66
Not Property Management
Delivering a lease application; receiving a lease application; showing a rental unit; assisting an owner;
67
Changes in License
Must be approved by Board; DCREB will exchange old license but keep expiration date
68
Hearing
`Entitled to notice and opportunity to be heard before DCREB denies, suspends, or revokes license or denies reinstatment; provide written notice and serve personally
69
Conduct of Hearing
Open to public; majority of board or panel of 3; right to counsel and to present evidence, cross-examination and subpoenas; issue findings in writing. May seek review in DC Superior Court. The Commission shall issue its final decision, in writing, as soon as practicable, but no
later than ninety (90) days after the date the hearing is completed.
70
Suspension Through Affiliation
If broker is suspended, all salespersons under him are suspended. 15 days to send in license or notify board. Same if salesperson is fired or terminated. A firm license can also be summarily revoked if no longer eligible.
71
Human Rights Act Protected Classes
Race, color, religion, national origin, sex age, marital status, matriculation, disability, source of income or place of residence or business.
72
Human Rights Prohibitions
Discrimination, refusing to sell or rent, terms of transacton, ads with intention to discriminate, representing a dwelling is not available when it is, including restrictive covenants, denying loans, refusing insurance, appraised values, listing agreement that has the effect of discriminating, deny membership in a multiple listing service.
73
Human Rights Prohibitions Continued
Setting different fees, discrimination in furnishing repairs, applying criteria unequally, restriction of number of occupants, inducing to sell out of blockbusting, based upon number of children, presumption of discrimination from occupancy may be overcome, handicap, and retaliation.
74
Human Rights Prohibition Exceptions
If used for a dwelling, and owmer resides there, and no more than one other family resides there, or there is less than 5 units or share bath or kitchen; 62 years or older (or intended for person over 55 and occupied by 80% one 55 person in each unit.) Religous organization ok, as is government. Okay to discriminate against convicted drug felons
75
How long can a license be inactive?
| Can expired license be reinstated?
Not to exceed 5 consecutive years. If a person has been on inactive status for five (5) consecutive years or more that person shall be considered a new applicant and shall be required to meet all current requirements for licensure, unless the Commission in its discretion determines that the failure to renew during the five (5) year inactive period was due to reasonable cause or excusable neglect. EXPIRED: Can apply within 5 years of expiration granted complies with current requirements, pays fee est. by mayor, etc.
76
How much education for new D.C. Salesperson
60 hrs salesperson pre-licensing. 3 Hours D.C. Fair Housing. Passing scores on both state and national exams.
77
How long after passing salesperson license must applicant apply or have to repeat.
Must apply and pay appropriate fees within six months of passing examination.
78
What's the D.C. Salesperson License Fee?
$255, includes $130+ $60 fee for the Real Estate Guaranty and Education Fund "associated fees"
Application $65.00
Renewal:
(1) Associate Broker $170.00 (up to 2 years)*
(2) Broker $170.00 (up to 2 years)*
(3) Property Manager $170.00 (up to 2 years)*
(4) Salesperson $130.00 (up to 2 years)*
79
How long do you have to activate license after passing the exam
6 months
80
What classes do you need to take to get broker license. There are 9
law in general; fair housing; ownership, principals&practices; agency; appraisal; financing; licensing law; ethics
(1) Real Estate Law; (2) Fair Housing Law; (3) Real Property Ownership/Transfer;(4) Principles and Practices for Brokers; (5) Agency Relationships/Principles and Practices for Brokers; (6) Real Estate Appraisal;
(7) Real Estate Financing; (8) D.C. Real Estate Licensing Law and Regulations; and (9) Code of Ethics
81
Reasons landlords can begin eviction process.
Nonpayment of rent;
Violation lease not corrected;
Illegal act within the rental unit;
Landlord seeks to occupy
Landlord sells rental unit to a party who wants to occupancy;
Renovate rental & not safe for tenant to stay
Landlord to demolish rental unit;
Landlord to substantially rehabilitate rental unit;
Landlord seeks to discontinue rental unit for housing
Landlord to convert to condo.
82
In an eviction process the tenant must first be given three things.
A written Notice to Vacate (except for non-payment of rent, if the tenant waived the right to notice in the lease);
An opportunity to cure the lease violation, if that is the basis for the action; and
An opportunity to challenge the landlord’s claims in court.
83
Can an landlord do his own eviction process?
No all DC Evictions are judicial. Any eviction must be pursuant to a court order, and must be scheduled and supervised by the U.S. Marshals Service.
84
Through what office(s) or individual(s) are non-health related occupations regulated in DC?
Regulated by mayor through Department of Consumer and Regulatory Affairs.
85
What kind of DC license do those licensed by fed government to provide occupational or professional services need to perform their work in the district?
Person with license or certificate issued by the federal government allowing person to provide particular occupational or professional services may do so in DC without a District license or certificate. Services must be within scope of the federal license or certificate.
86
What professions does the DCREB regulate?
Brokers, Salespersons, Property Managers
87
For what can mayor remove a board member?
Incompetence, misconduct, or neglect of
duty. The failure of a member of a board to attend at least half of regularly scheduled meetings of the board within a 12-month period shall constitute neglect of duty
88
What is the Occupations and Professions Licensing
| Special Account?
A continuing, non-lapsing special account established within the General Fund where fees are deposited. No revenues deposited within the account can be spent without Congressional appropriation. To defray expenses for regulatory and administrative duties. Money left over does not revert back to GF at end of the year.
89
Timeline for requesting and having hearing after summary license suspension by the mayor?
Licensee has right to request a hearing within 72 hours after service of notice of the summary suspension or restriction of license. The board shall hold a hearing within 72 hours of receipt of a timely request, and shall issue a decision within 72 hours after the hearing.
90
Hearings regarding denial of license--other than age, standard requirements, etc.?
Board can request that applicant/licensee attend a "settlement conference." Or give notice to applicant/licensee of scheduled hearing. Notice must be sent to last known address of applicant/individual via certified mail at least 15 days before hearing. Board shall issue it's ruling on hearing in writing within 90 days.
91
Rental Housing Conversion:
| What are the 11 Stages for single fam or condo, owner of 2-4, and owner of 5 or more units?
1. Offer of Sale
2. Statement of Interest
3. Negotiation
4. Price and Material Terms
5. Deposit
6. Settlement Time
7. Information
8. Third-party Contract
9. New Offer of Sale
10. Waiver
11. Assistance
92
Rental Housing Conversion:
Timelines for 1. Statement of Interest:
Single home or Condo?
Single: Upon receipt of the Offer of Sale, (30) days to provide owner and Condominium and Cooperative Conversion and Sales branch of the D.C. Department of Consumer and Regulatory Affairs (the Conversion and Sales Office) written statement of interest to
purchase. If you fail to provide within (30) day response period, your rights under Offer of Sale will expire, except as to the right of first refusal.
93
Rental Housing Conversion:
| Single home or condo 2. Negotiation period
If submitting ritten statement of interest tenanthas minimum of sixty (60) days to negotiate a sales contract. The sixty (60) days does not include the thirty (30) day response time period.
94
Rental Housing Conversion:
| Single home or condo 3. Price and Material Terms
Interested tenant must be informed of type of financial arrangements owner will accept at settlement. May not require tenant prove financial ability to perform as a prerequisite to contract. But if third party contract provides for deferred purchase money financing, Owner may require to prove, prior to settlement, either alone or in conjunction with a third party, that tenant has
financial ability to at least equal the third party purchaser before granted deferred purchase money financing.
95
Rental Housing Conversion
| 4. Deposit
At time of contracting, tenat required to deposit no more than five (5) percent of the contract price. This deposit, with interest accrued thereon, is refundable if good faith liability to perform under the contract.
96
Rental Housing Conversion
| single family or single condo 5. Settlement
If tenant offer is accepted tenant will have a minimum of sixty (60) days to secure financing or financial assistance and go to settlement for the purchase of this
accommodation. However, if a lending institution or agency estimates that a decision regarding
financing of financial assistance will be made within ninety (90) days after the date of contracting, I will provide you with an extension.
97
Rental Housing Conversion
| single family or single condo 6. Information
A copy of: 1) a floor plan or the accommodation, if available; 2) an itemized list of monthly operation expenses; 3) utility consumption rates and capital expenditures for each of the two (2) calendar years; and 4) the most recent rent roll, listing of tenants and a list
of vacant apartments within seven (7) days of receiving a written request for the information.
98
Rental Housing Conversion
| single family or single condo7. Third Party Contract and Right of First Refusal notice
In the case of another contract to purchase. Contract provided to tenant for review. In accordance with the Act, tenant has fifteen (15) day right of first refusal to match the third party contract, even if tenant didn't provide original statement of interest or if you reject this offer to negotiate. If tenant decides to offer Statement of Interest the 15- day right of first refusal time period will commence at the end of the negotiation time period.
99
Rental Housing Conversion-2-4 units
Days to offer written joint statement of interest.
Days for individual if no joint statement?
15 days. If no joint but individual wants to offer, has an additional 7 days.
100
Rental Housing Conversion 5+ units
Written joint statement of interest
Application for registration
45 days to create tenant organization.
| If tenant org already exists, application must be delivered to Consumer/reg affairs in 30 days.
101
Rental Housing Conversion 2-4 units
| Days to negotiate contract
90 days to negotiate joint contract. Additional 30 days if just an individual.
102
Rental Housing Conversion 5+
| Days to negotiate contract
120 days
103
Rental Housing Conversion
| Deposit
May not be more than 5% of negotiated sales price
104
Rental Housing Conversion 1 unit
| Settlement Period
60 days. 90 if there's an extension
105
Rental Housing Conversion 2-4
| Settlement Period
90 days. Can extend to 120
106
Rental Housing Conversion 5+
| Settlement Period
120 days. Can extend to 240. If converting to nonprofit-type place, 180 days.
107
Rental Housing Conversion
| Third party first right of refulsal
15 days
108
Rental Housing Conversion
| New offer for sale
If price of 3rd party is more than 10 % less than original offer for sale, new offer for sale is issued.
109
Rental Housing Conversion
| After what period will owner who wants to sell have to comply "anew" with provisions of the act?
Single: 180 days
2-4 units: 240 days
5+ units: 360 days
110
DC License Cost
130 Salesperson License
65 Application Fee
60 Fund Fee Total 255
111
Change of address for brokerage
The change of address notice shall include the effective date of the relocation and shall be submitted in writing within fifteen (15) days prior to the relocation. Commission will issue new licenses within 30 days.
112
DC Transfer Tax
1.1% up to 399,999/ 1.45% 400,000 and above
113
Property tax rate
.85 per $100
114
Real Property vs. Personal Property
Real property: Land and Improvements. (not moveable surface of the earth, space above, only includes natural items like trees, crops, minerals, and water, Personal Property: Goods and Intangible Interests (moveable, unattached, stocks, bonds, mortgages, fixtures, leases.)
115
4-part test to determine if a fixture can be severed
1. Method of attachment: more permanent, less likely.
2. Adaptation: Was item adapted to fit a particular property, such as built-in bookshelves?
3. Agreement: Agreement between the parties may permit removal of fixture, or prevent a dispute. Best in writing!
4. Relationship of parties: Residential renters less likely than commercial to be able to sever.
116
Bundle of Legal Rights
6 distinct principal intangible legal rights of property ownership. 1) Right to Possess. 2) Right to Control property within legal limits. 3) Right to Enjoy property and use it legally. 4) Right to Exclude others from property 5) Right to Encumber property by lessening one’s rights of ownership in any way. 6) Right to Dispose of property by sale, will, or other transfer.
