District of Columbia Real Estate Broker Exam — All Questions

A DC broker's supervisory responsibility over affiliated licensees means the broker must:

• a.Personally negotiate every contract
• b.Guarantee each sale closes
• c.Oversee the licensed activity, advertising, recordkeeping, and escrow handling of the salespersons the broker sponsors✓
• d.Set commission rates jointly with other brokerages

In the District, the broker is responsible for supervising the licensed conduct of sponsored salespersons, including advertising, recordkeeping, and escrow handling, and can be disciplined for supervisory failures. The broker need not negotiate every deal or guarantee closings. Setting commission rates jointly with competitors would be illegal price-fixing under antitrust law.

The District separately licenses property managers, which means a DC broker should understand that:

• a.Property management is unregulated in DC
• b.Managing others' property for compensation may require the appropriate property manager credential in addition to, or instead of, a broker license✓
• c.Only salespersons may manage property
• d.Property managers need no license of any kind

The District maintains a distinct Property Manager license tier. A person who manages residential rental property for others for compensation generally must hold the appropriate credential; a broker license alone may not cover all property-management activity, and unlicensed management can violate DC law. Brokers should confirm which activities require the property manager license.

A DC broker holding a client's earnest-money deposit must:

• a.Keep it in a separate escrow/trust account and account for it, not commingle it with firm funds✓
• b.Deposit it into the brokerage operating account
• c.Keep it as an advance commission
• d.Hand it to the buyer's lender

DC brokers must hold client money in a separate escrow/trust account, keep records, and avoid commingling escrow funds with the firm's own money. The broker is the responsible party for these funds and must disburse them only as the agreement and law allow. Mishandling escrow money is a serious disciplinary matter tested on the broker exam.

A DC broker who wishes to practice across the DC–Maryland–Virginia region should know that:

• a.A DC license automatically covers Maryland and Virginia
• b.No license is needed outside DC
• c.Only federal registration is required
• d.Reciprocity or separate licensure may be required to practice in Maryland or Virginia✓

A DC license does not automatically authorize practice in Maryland or Virginia. Because the metropolitan area spans three jurisdictions, brokers commonly obtain licenses in more than one, using reciprocity or by meeting each state's requirements. Practicing without proper licensure in another jurisdiction is unlicensed activity.