District of Columbia Real Estate Broker Exam — All Questions

The District's Inclusionary Zoning (IZ) program generally requires certain new or substantially rehabilitated developments to:

• a.Provide only luxury units
• b.Set aside a portion of units as affordable to income-qualified households✓
• c.Eliminate all parking
• d.Sell only to first-time buyers

Inclusionary Zoning requires many covered residential developments to set aside a share of units as affordable to households at specified income levels, with resale and rent restrictions. A broker selling or leasing an IZ unit must understand the income-eligibility, price-restriction, and resale-control rules, which differ from market-rate transactions and must be disclosed to buyers.

When a DC broker lists an Inclusionary Zoning (IZ) unit for resale, the broker must recognize that:

• a.The seller may charge any market price
• b.There are no eligibility rules for the buyer
• c.The resale price and buyer eligibility are restricted under the IZ program✓
• d.The unit converts to market-rate after one sale

IZ units carry ongoing affordability controls: the maximum resale price is formula-based and the buyer must be income-qualified through the program. The broker cannot market an IZ unit like a market-rate home and must follow the program's registration, pricing, and eligibility procedures. Misrepresenting the price or eligibility would harm consumers and violate the program rules.

A broker representing a buyer of a DC condominium unit should ensure the buyer receives:

• a.The condominium/association disclosure documents so the buyer can review the association's finances and rules✓
• b.Only the listing photos
• c.A waiver of all inspection rights
• d.The seller's personal tax returns

DC condominium buyers are entitled to association disclosure documents, such as budgets, bylaws, rules, and information about assessments and reserves, so they can evaluate the community before committing. Timely delivery lets the buyer make an informed decision within any applicable review period. Providing these documents is a normal disclosure obligation, distinct from the seller's private financial records.