DC EXAM PREP PART 1 2026 EXAM
EXCELLENCE WITH ACCURATE A+
SOLUTIONS, COMPLETE ANSWERS,
AND CERTIFIED SUCCESS
Q: In the District of Columbia, which entity is responsible for the
administration of real estate license law?
A: ✔✔ The law is administered by the Real Estate Commission (referred to in
many exam materials as the Real Estate Board).
Note: While the Department of Housing handles local landlord-tenant issues
and HUD is a federal agency, the Commission specifically regulates licensed
agents and protects the public by upholding District-specific real estate laws.
The Association of REALTORS is a private trade group, not a government
regulator.
Q: What is the official process for selecting the members who serve on the
Real Estate Board/Commission?
A: ✔✔ All members are appointed by the Mayor.
Process: After the Mayor makes the appointments, they must be confirmed
by the DC City Council. These members are not elected by the public or by
other real estate agents, nor are they chosen by private trade associations.
Q: What specific authority does the Real Estate Board/Commission hold
regarding the industry?
A: ✔✔ The Board has the power to create and enforce the rules and regulations
that every real estate licensee must follow.
Clarification: While they set the standards for the profession, they do not
write the actual exam questions or run the testing centers—those tasks are
delegated to professional testing companies like PSI. Additionally, the Board
, does not "make" the laws (which is the job of the DC Council); they simply
implement the regulations that support those laws.
The Real Estate Board has the authority to
a. make and enforce the rules by which all real estate licensees must abide.
b. compose the examination questions on the state exam.
c. administer the exams given at the testing sites.
d. enact the laws that govern real estate licensees.
A. While the City Council enacts law, the Real Estate Board is authorized to write
the rules and regulations that have the force of law. The exam questions are written
by an independent testing service and reviewed by the board. The testing services
administer the exams.
The Real Estate Board may undertake an investigation of a licensee based on all of
the following grounds EXCEPT
a. its own initiative.
b. a random selection of licensees.
c. a motion from the members of the Real Estate Board.
d. a written complaint submitted by a disgruntled customer.
B. The Real Estate Board may not undertake an investigation based on a random
selection of licensees. There must be some valid reason.
, An unlicensed individual who engages in activities for which a real estate license is
required is subject to which of the following penalties?
a. Fine not to exceed $1,000
b. Fine not to exceed $1,000 and one year imprisonment
c. Civil penalty of $10,000 in addition to other penalties provided by law
d. Civil penalty not to exceed $5,000 and a mandatory prison term not to exceed
five years
C. The maximum fine is $10,000. The board has no jurisdiction over someone who
is conducting real estate business without a license. The matter must be referred to
civil authorities.
In the District of Columbia, which of the following is legal and not grounds for
license revocation?
a. Being convicted of a felony in any jurisdiction
b. Advertising in a newspaper that he or she is a member of the DC Association of
Real Estate Professionals when, in fact, he or she is not
c. Depositing escrow money in his or her personal checking account
d. Agreeing with a seller to accept a listing for more than the normal commission
rate
D. Commission rates are always negotiable between the seller and the broker; there
is no "normal" amount. Commingling of funds is prohibited. The Real Estate
EXCELLENCE WITH ACCURATE A+
SOLUTIONS, COMPLETE ANSWERS,
AND CERTIFIED SUCCESS
Q: In the District of Columbia, which entity is responsible for the
administration of real estate license law?
A: ✔✔ The law is administered by the Real Estate Commission (referred to in
many exam materials as the Real Estate Board).
Note: While the Department of Housing handles local landlord-tenant issues
and HUD is a federal agency, the Commission specifically regulates licensed
agents and protects the public by upholding District-specific real estate laws.
The Association of REALTORS is a private trade group, not a government
regulator.
Q: What is the official process for selecting the members who serve on the
Real Estate Board/Commission?
A: ✔✔ All members are appointed by the Mayor.
Process: After the Mayor makes the appointments, they must be confirmed
by the DC City Council. These members are not elected by the public or by
other real estate agents, nor are they chosen by private trade associations.
Q: What specific authority does the Real Estate Board/Commission hold
regarding the industry?
A: ✔✔ The Board has the power to create and enforce the rules and regulations
that every real estate licensee must follow.
Clarification: While they set the standards for the profession, they do not
write the actual exam questions or run the testing centers—those tasks are
delegated to professional testing companies like PSI. Additionally, the Board
, does not "make" the laws (which is the job of the DC Council); they simply
implement the regulations that support those laws.
The Real Estate Board has the authority to
a. make and enforce the rules by which all real estate licensees must abide.
b. compose the examination questions on the state exam.
c. administer the exams given at the testing sites.
d. enact the laws that govern real estate licensees.
A. While the City Council enacts law, the Real Estate Board is authorized to write
the rules and regulations that have the force of law. The exam questions are written
by an independent testing service and reviewed by the board. The testing services
administer the exams.
The Real Estate Board may undertake an investigation of a licensee based on all of
the following grounds EXCEPT
a. its own initiative.
b. a random selection of licensees.
c. a motion from the members of the Real Estate Board.
d. a written complaint submitted by a disgruntled customer.
B. The Real Estate Board may not undertake an investigation based on a random
selection of licensees. There must be some valid reason.
, An unlicensed individual who engages in activities for which a real estate license is
required is subject to which of the following penalties?
a. Fine not to exceed $1,000
b. Fine not to exceed $1,000 and one year imprisonment
c. Civil penalty of $10,000 in addition to other penalties provided by law
d. Civil penalty not to exceed $5,000 and a mandatory prison term not to exceed
five years
C. The maximum fine is $10,000. The board has no jurisdiction over someone who
is conducting real estate business without a license. The matter must be referred to
civil authorities.
In the District of Columbia, which of the following is legal and not grounds for
license revocation?
a. Being convicted of a felony in any jurisdiction
b. Advertising in a newspaper that he or she is a member of the DC Association of
Real Estate Professionals when, in fact, he or she is not
c. Depositing escrow money in his or her personal checking account
d. Agreeing with a seller to accept a listing for more than the normal commission
rate
D. Commission rates are always negotiable between the seller and the broker; there
is no "normal" amount. Commingling of funds is prohibited. The Real Estate
