DC REAL ESTATE EXAM NEWEST 2026
EXAM VERSION SYSTEM WITH
AUTHENTIC SOLUTIONS AND
COMPLETE ANSWERS
Online Advertising Disclosures
Q: What information must a licensee include in all online advertisements?
A: ✔✔ To ensure transparency and public protection, every electronic
advertisement (including websites, social media, and email) must clearly display:
Firm’s Licensed Name: The name of the brokerage you are affiliated with
as registered with the Commission.
Office Location: The city and state where your firm's main office is located.
Jurisdiction(s): Every state or territory where the firm holds a real estate
brokerage license.
Commission Violations and Fines
Q: What is the maximum fine for a DC Real Estate Commission violation?
A: ✔✔ $2,500 per violation. Under the updated 2026 Schedule of Fines, a Class 1
infraction (the most serious category, often involving unlicensed activity or major
escrow violations) carries a fine of $2,549 for a first offense. The Commission also
has the authority to suspend or revoke licenses and require mandatory additional
education.
Electronic Documents
Q: Which law makes electronic documents and signatures legally binding in
DC?
A: ✔✔ The Uniform Electronic Transactions Act (UETA). Adopted in DC and
49 states, this act ensures that a record or signature cannot be denied legal effect
, solely because it is in electronic form. This allows real estate contracts to be signed
and delivered digitally with the same validity as paper documents.
Escrow Accounts: Commingling vs. Conversion
Q: What is the difference between conversion and commingling?
A: ✔✔ Both are serious ethical and legal violations involving the mishandling of
"Other People's Money" (OPM).
Commingling: The act of mixing client funds with personal funds or the
firm's operating account. Even if you don't spend a dime of the client's
money, simply putting it in the wrong account is a violation.
Conversion: The much more serious act of illegally using or spending the
money you received from a client for your own purposes (e.g., using an
earnest money deposit to pay your firm's office rent).
Earnest Money and Escrow Interest
Q: What is the deadline for depositing earnest money?
A: ✔✔ Within 7 days. According to DC Code § 42-1704, earnest money must be
deposited into an account in a financial institution located within the District (and
insured by the FDIC or successor) within 7 days of receipt.
Q: When does an escrow account begin to earn interest?
A: ✔✔ On the 91st day. If an escrow or trust is held for 90 days or more, it must
earn interest from the 91st day until the transaction is consummated or terminated.
This interest is paid at the highest legal rate available for ordinary savings deposits
in commercial banks.
The Commission on Human Rights conduct investigations of ____ -
ANSWER✔✔discrimination patterns and complaints of discrimination in DC.
EXAM VERSION SYSTEM WITH
AUTHENTIC SOLUTIONS AND
COMPLETE ANSWERS
Online Advertising Disclosures
Q: What information must a licensee include in all online advertisements?
A: ✔✔ To ensure transparency and public protection, every electronic
advertisement (including websites, social media, and email) must clearly display:
Firm’s Licensed Name: The name of the brokerage you are affiliated with
as registered with the Commission.
Office Location: The city and state where your firm's main office is located.
Jurisdiction(s): Every state or territory where the firm holds a real estate
brokerage license.
Commission Violations and Fines
Q: What is the maximum fine for a DC Real Estate Commission violation?
A: ✔✔ $2,500 per violation. Under the updated 2026 Schedule of Fines, a Class 1
infraction (the most serious category, often involving unlicensed activity or major
escrow violations) carries a fine of $2,549 for a first offense. The Commission also
has the authority to suspend or revoke licenses and require mandatory additional
education.
Electronic Documents
Q: Which law makes electronic documents and signatures legally binding in
DC?
A: ✔✔ The Uniform Electronic Transactions Act (UETA). Adopted in DC and
49 states, this act ensures that a record or signature cannot be denied legal effect
, solely because it is in electronic form. This allows real estate contracts to be signed
and delivered digitally with the same validity as paper documents.
Escrow Accounts: Commingling vs. Conversion
Q: What is the difference between conversion and commingling?
A: ✔✔ Both are serious ethical and legal violations involving the mishandling of
"Other People's Money" (OPM).
Commingling: The act of mixing client funds with personal funds or the
firm's operating account. Even if you don't spend a dime of the client's
money, simply putting it in the wrong account is a violation.
Conversion: The much more serious act of illegally using or spending the
money you received from a client for your own purposes (e.g., using an
earnest money deposit to pay your firm's office rent).
Earnest Money and Escrow Interest
Q: What is the deadline for depositing earnest money?
A: ✔✔ Within 7 days. According to DC Code § 42-1704, earnest money must be
deposited into an account in a financial institution located within the District (and
insured by the FDIC or successor) within 7 days of receipt.
Q: When does an escrow account begin to earn interest?
A: ✔✔ On the 91st day. If an escrow or trust is held for 90 days or more, it must
earn interest from the 91st day until the transaction is consummated or terminated.
This interest is paid at the highest legal rate available for ordinary savings deposits
in commercial banks.
The Commission on Human Rights conduct investigations of ____ -
ANSWER✔✔discrimination patterns and complaints of discrimination in DC.
