DC Real Estate Law Midterm Exam
Questions with All Correct & Verified
Answers (2025-2026) Set.
DC Real Estate Law is created by - Answer The City Council and is enforced by the DCREC
Commission consists of how many members? - Answer 9 members
Commission members are appointed by the? - Answer Mayor with the advice and consent of
the DC City Council
Goal of the Commission - Answer To protect the public from incompetent and fraudulent
practices
Commission member consists of? - Answer 3 Brokers, 2 Salespersons, 2 Property Managers, 1
Real Estate Attorney, 1 Consumer Member
Commission Member Terms - Answer 3 year terms; maximum 3 consecutive terms
Commission Member Qualifications - Answer -Must reside in DC for 1 year prior to
appointment and remain resident during the term
-Industry members must have 5 years experience
-No Compensation but are reimbursed for expenses
Home builders - Answer Require licenses if they sell or offers for sale in a subdivision for 5 of
more lots
License Terms - Answer Valid for 2 years
-Brokers: Expire Feb. 28th of odd years
-Salespersons: Expire August 31st of odd years
-Property Managers: Expire Feb. 28th of odd years
, Inactive Status - Answer Up to 5 years
Time limit for keeping records - Answer 3 years
Fine for filing false documents - Answer $3,000
Maximum number of signs on property - Answer 3 signs
Partnership requirements - Answer Must file all names, addresses, and percentages with
DCREC for all partners
Escrow Account Requirements - Answer -Maintained in a FDIC located in DC
-Name and addresses of institution, account number and all of licenses info must be submitted
to the commission within 14 days of opening the account
Escrow Accounts for - Answer Down Payments
Rents Collected
Earnest Money Deposits
Security Deposits
Requirements for removing money from Escrow Accounts - Answer A HUD 1 form proving the
action is closed
A signed release
A court order
Maximum payout of Guaranty and Education Fund - Answer $50,000 regardless of how many
claimants
Payout Restrictions - Answer Cannot cover court costs, attorney fees, or punitive damages
Guaranty Fund Maximum and Minimum Amounts - Answer Minimum: $1,040,000
Questions with All Correct & Verified
Answers (2025-2026) Set.
DC Real Estate Law is created by - Answer The City Council and is enforced by the DCREC
Commission consists of how many members? - Answer 9 members
Commission members are appointed by the? - Answer Mayor with the advice and consent of
the DC City Council
Goal of the Commission - Answer To protect the public from incompetent and fraudulent
practices
Commission member consists of? - Answer 3 Brokers, 2 Salespersons, 2 Property Managers, 1
Real Estate Attorney, 1 Consumer Member
Commission Member Terms - Answer 3 year terms; maximum 3 consecutive terms
Commission Member Qualifications - Answer -Must reside in DC for 1 year prior to
appointment and remain resident during the term
-Industry members must have 5 years experience
-No Compensation but are reimbursed for expenses
Home builders - Answer Require licenses if they sell or offers for sale in a subdivision for 5 of
more lots
License Terms - Answer Valid for 2 years
-Brokers: Expire Feb. 28th of odd years
-Salespersons: Expire August 31st of odd years
-Property Managers: Expire Feb. 28th of odd years
, Inactive Status - Answer Up to 5 years
Time limit for keeping records - Answer 3 years
Fine for filing false documents - Answer $3,000
Maximum number of signs on property - Answer 3 signs
Partnership requirements - Answer Must file all names, addresses, and percentages with
DCREC for all partners
Escrow Account Requirements - Answer -Maintained in a FDIC located in DC
-Name and addresses of institution, account number and all of licenses info must be submitted
to the commission within 14 days of opening the account
Escrow Accounts for - Answer Down Payments
Rents Collected
Earnest Money Deposits
Security Deposits
Requirements for removing money from Escrow Accounts - Answer A HUD 1 form proving the
action is closed
A signed release
A court order
Maximum payout of Guaranty and Education Fund - Answer $50,000 regardless of how many
claimants
Payout Restrictions - Answer Cannot cover court costs, attorney fees, or punitive damages
Guaranty Fund Maximum and Minimum Amounts - Answer Minimum: $1,040,000
