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84 Cards in this Set

  • Front
  • Back
Number of members on the DC Real Estate Board (DCREB)
3 brokers
2 salespersons
2 property managers
1 consumer
1 attorney
Must be DC residents with 5 years experience and engaged in practice (except attorney).
Term of DCREB Members
3 year term beginning Feburary 28th.
No more than three 3-year terms.
Appointment of DCREB Members
Appointed by the Mayor and confirmed by the City Council; The Chairman is selected from its members. Mayor may remove.
Quorum of DCREB
Five of nine.
Powers of DCREB
Determine the scope of practice, licensure and continuing education requirements; hear and decide licensing protests; receive complaints, investigate and discpline.
Powers of the Mayor
DCREB provides administrative support for Mayor. Mayor sets fees; issues and renewes licenses, budgets, records...
Qualifications for Licensure
18; read and write English; high school graduate; take 60 hour course; have no suspensions in effect; no revocation within the last three years; no fraud within 5 years.
License Terms
Salesperson is for two years, starting September 1 in an odd year; Broker starts March 1 in an odd year. 6 months to activate license from passing of exam.
Continuing Education Requirement
15 hours for each two year renewal.
Broker Qualifications
Two years as salesperson, 135 hours, and exam.
DC Fiscal and Tax Years
Fiscal Year is October 1-September 30; Tax Year is July 1- June 30. Taxes are paid in March and September.
A license as salesperson is required to be paid or to share in a real estate fee. Two parties may pay fee if openly agreed.
Broker Firm
Headed by one principal broker who does not have to be the owner, but does manage the day-to-day affairs. May hire and use salespersons for whom he is responsible.
Branch Office
Each branch office is managed by an associate broker.
Licenses Displayed
All licenses must be displayed in a DC Office that is a real office.
Broker License Suspension
If a broker's license is suspended, so are the licenses of all of the salespersons working under him.
Property Managers
Property Managers have their own licensing scheme and are not allowed to sell real estate, but only manage property. Resident managers are no longer licensed, but must register in DC is managing 27 units or more.
Changing Brokers
A salesperson can change brokers at any time. The old license must be mailed to the commission with the request for the new one, signed by the new broker. This should take 30 days. No transfers 60 days prior to renewal.
Escrow Accounts
Must be in a federally insured DC bank, in broker's name, and the account number should be sent to the DCREB. May not co-mingle funds.
Violations of DC Code
For violation of licensing provisions- up to 1 year or $10,000. Fine for second offense is $25,000.
Landlord Tenant Laws
Maximum occupancy is 2 times the number of bedrooms plus one. Maximum security deposit is one month. Lessor must inspect within 48 hours of vacancy, any deductions must be documented and the balance of the deposit returned to the tenant within 45 days.
Rent Stablization Applicability
DC Rental housing Act says owners of four or more units must comply, and five or more must register.
Rent Stabilization Act
Rents may be raised or lowered with 30 day notice; lessors may seek relief for hardship or by 70% of tenants voluntary agreeing. Annual increases must follow CPI and DCRA guidelines.
No notice is required to start eviction proceedings; 30-day notice for a month-to-month tenant or one in violation of lease. Tenant retains right of first refusal; 120 day notice for a substantial rehabilitation; and 180-day notice for demolition.
Exclusive agency and exclusive right to sell must be listed in MRIS within 24 hours of signing of listing agreement. Must be in writing and have a certain termination date.
Posted only with the consent of the property owner.
Only a broker can advertise.
Is always negotiable between broker and owner. Brokers may share commissions with other brokers.
Net Listing
A net listing is illegal.
A sales person must disclose all pertinent facts on a property, including any defects. Need not disclose AIDS or medical condition not transferred through property; or crime scene or murder.
Earnest Money
Salespersons cannot deposit or handle any money. Deposits should be turned over to broker and placed in escrow immediately.
DC Rental Housing Conversion and Sales Act
Protects low income and elderly tenants in the event of conversion to condo or coop. Tenants may form an association and vote. 51% of tenants must approve conversion.
Conversion and Sales Act Timelines
If 5 or more units-45 days to for a tenant's association; 120 days to negotiate by group; 15 day right of first refusal; 120 days for settlement that may extend to 240; 360 days for a new offer to be made.
Guarantee and Education Act Fund
Restitution for defrauded members of the public. Each licensee pays $60. Fund no less that $1,040,000 and no more than $3.5 million. Maximum payout is $50,000. Needs court order and mayoral approval. Licensee must repay prior to reinstatement.
Licensing Exceptions
Attorney, attorney in fact, government employees preforming official duties; court officers, owners, auctioneers, and secretaries in real estate offices.
Office of Public Records
Licensee file maintained with annual list of suspensions and revocations.
Maintained for states with similar standards; Mayor has final say.
Property Managers
Agent for owner for property management. May employ resident managers, but property manager remains responsible. May not preform sales, listing, purchase etc. Only licensed property managers may use term.
Property Managers Qualifications
English, pass exam, high school education, no license denied, suspended or revoked.
Real Estate Broker
For a fee, lists for sale, sells, exchanges, purchases, rents or leases real property. May collect rent, negotiate a loan, erect housing, sell lots of more than 5 lots. Does not apply to selling advertising for real estate. Term Broker or REB reserved for licensed brokers.
Real Estate Broker Employees
May employ other brokers, associate brokers, real estate sales persons, property managers, and resident managers. Broker is accountable for employees.
Real Estate Salesperson Qualifications
English, high school, course, exam, no suspensions or revocations.
Real Estate Salesperson
Only licensed individuals may use term.
License Transfer
May not be transfered to another person; may be transfered to a new broker.
Licensure of Real Estate Organizations
May be issued to an entity that is organized under DC or federal law; every person member, employee and branch manager must be licensed.
Place of Business
If more than one office in DC can get duplicate licenses; if a broker changes location, he has have 15 days to notify mayor and return old licenses and get new ones. May be suspended for failure to notify DCREB of new address.
Prohibit Names
Names are not allowed that are misleading, imply a partnership that does not exist, include salesperson's name, in violation of law, includes the name of unlicensed persons.
Fidiciary Duties When Representing a Seller
Perform in accordance with agreement; act in the best interest of seller, seek agreed upon price and terms, present in a timely manner all written offers; disclose material facts related to property; account; maintain confidentiality; exercise ordinary care; Treat all honestly. Must disclose brokerage relationships. May provide ministerial acts for buyer. May show buyers alternative properties.
Disclosure Must be Knowing
Broker is not liable for information told by seller for which he has no knowledge of falsity.
Fiduciary Duties When Representing a Buyer
Act in accordance with agreement; act in buyer's interest; seek property at buyer's price; present offers timely; disclose material defects, account, confidentiality, ordinary care. Treat all honestly. Ministerial assistance to seller. May show property in which the buyer is interested to others. Must disclose brokerage relationships.
Fiduciary Duties When Representing a Landlord
Act in accordance with agreement; act in landlord's interest; seek lease rates at landlord's rent; present offers timely; disclose material defects, account, confidentiality, ordinary care. Treat all honestly. Ministerial assistance to tenant. May show other property to prospective tenants. Must disclose brokerage relationships.
Fiduciary Duties When Representing a Tenant
Act in accordance with agreement; act in tenant's interest; seek property at tenant's price; present offers timely; disclose material defects, account, confidentiality, ordinary care. Treat all honestly. Ministerial assistance to landlord. May show property in which the tenant is interested to other prospective tenants. Must disclose brokerage relationships.
Brokerage Relationships
Must have a definite termination; If not, 90 days after entry into relationship. Broker owes no duty after termination, except accounting and confidentiality.
Brokerage Disclosure
Upon any substantive conversation about a specific property, the licensee shall disclose in writing his or her brokerage relationship. If relationsip changes, licensee shlll disclose any changes to all other parties.
Maintainence of Disclosures
Must be kept for 3 years.
Dual Agency
Must be disclosed in writing and creates a presumption of consent in substantially the form provided by the DCREB. No cause of action shall accrue by virtue of making the disclosures. Licensee may withdraw without liability from representing any client that refuses to consent. Broker may appoint two designated representatives, and only the broker is considered to be a dual agent.
Brokerage Relationship Not Created bY Payment
Payment or a promise of payment does not create a brokerage relationship.
Prohibited Acts
Misrepresentation; Dual Agency without consent; No fees except from your broker; property managers failing to keep proper records; Representing another broker without your broker's consent; demonstraing unworthiness or incompetence; failing to account; failing to disclose that broker is a principal in a transaction that he is interested; using an unauthorized trade name; guaranteeing results of a future real estate transaction.
Additional Prohibited Acts
Offering property without the consent of the owner; accepting a non-written listing agreement; failing to escrow deposits; comingling escrow money; inducing a breach of an existing agreement; making oral representations of improvements without written documentation; not bona fide deeds for misrepresenting value of transaction; knowiongly paying a commission to a non-licensed person.
Escrow Accounts
Deposited within 7 days in an insured financial institution located in DC.; Notify the DCREB within 14 days of establishment of an excrow account; If held for more than 90 days, must earn interest at highest legal rate for savings or rate on the escrow account, or on the CD given as the deposit.
Real Estate Guaranty and Education Fund
Established; every broker pays in as a condition of renewing license. Defrauded persons with final judgments for fraud may have access within 12 months after the date of final judgment up to $50,000.00. Notify Mayor after 30 days of commencement of action.
Supervision by Broker
Broker is responsible for day-to-day supervision of salespersons, associate brokers, and property managers.
Supervision by Property Manager
Property Manager is responsible for day-to-day supervision of others engaged in property management.
Supervision Standard
Must be reasonable and adequate; but is not an employer / employee relationship.
Consideration of reasonable and adequate
number of licensees; number of branch offices; number of management personnel; type of real estate activity of the firm; frequency of training; review by experienced personnel; written procedures with guidelines
Written Procedures Required
For deposit of money; compliance with fair housing laws; advertizsing requirements; review of contracts; limitations on the use of unlicensed personnel; disclosure of agency relationships; currency; copliance with law and code of ethics; and unauthorized practice of law.
Evidence of Reasonable and Adequate Supervision
Records of attendance at staff meetings; review of contracts by broker; compliance with policies; dissemination of written policies.
Advertising Requirements
Subject to disclosure requirements of act; may not be misleading; no use of nicknames; online is covered. Online material should include disclosure-Name of firm and main office and jurisdiction for firm and licensee; Only licensees can use the term broker real estate salesperson; or RES or REB.
License Term
For Broker or Property Manager-March 1, odd year for two years. For salesperson September 1, odd year for 2 years
Renewal of License
60 days before DCREB sends notice. Licensee must keep DCREB aware of current address.
License Lapses
If within 60 days may pay late fee and then as if timely renewed; after 60 days must apply for reinstatement.
Reinstatement of Expired License
File required application and pay required fee within 5 years of lapse. Must demonstrate fitness and competence. DCREB will consider length of time in practice; time of lapse; violations of law; character and qualifications; and continuing education required during lapse.
Reinstatement of a Suspended or Revoked License.
Must wait three years after revocation, otherwise similar to reinstatement. Must recognize seriousness of conduct and take steps to rectify. If reinstatement is denied, must wait a year to reapply.
Exemptions from Licensing
Acting under a court order; recievers; owners in the regular course; trustees under a power of sale;
Not Property Management
Delivering a lease application; receiving a lease application; showing a rental unit; assisting an owner;
Changes in License
Must be approved by Board; DCREB will exchange old license but keep expiration date
`Entitled to notice and opportunity to be heard before DCREB denies, suspends, or revokes license or denies reinstatment; provide written notice and serve personally
Conduct of Hearing
Open to public; majority of board or panel of 3; right to counsel and to present evidence, cross-examination and subpoenas; issue findings in writing. May seek review in DC Superior Court.
Suspension Through Affiliation
If broker is suspended, all salespersons under him are suspended. 15 days to send in license or notify board. Same if salesperson is fired or terminated. A firm license can also be summarily revoked if no longer eligible.
Human Rights Act Protected Classes
Race, color, religion, national origin, sex age, marital status, matriculation, disability, source of income or place of residence or business.
Human Rights Prohibitions
Discrimination, refusing to sell or rent, terms of transacton, ads with intention to discriminate, representing a dwelling is not available when it is, including restrictive covenants, denying loans, refusing insurance, appraised values, listing agreement that has the effect of discriminating, deny membership in a multiple listing service.
Human Rights Prohibitions Continued
Setting different fees, discrimination in furnishing repairs, applying criteria unequally, restriction of number of occupants, inducing to sell out of blockbusting, based upon number of children, presumption of discrimination from occupancy may be overcome, handicap, and retaliation.
Human Rights Prohibition Exceptions
If used for a dwelling, and owmer resides there, and no more than one other family resides there, or there is less than 5 units or share bath or kitchen; 62 years or older (or intended for person over 55 and occupied by 80% one 55 person in each unit.) Religous organization ok, as is government. Okay to discriminate against convicted drug felons
Rental Housing Conversions
Tenant must be given offer for sale with statement that you have 30 days to provide a written statement of interest. If you submit statement of interest, you have 60 days to negotiate a sales contract. Deposit is less than 5% of purchase price. 60-90 days for arranging financing. Also a 15 day right of first refusal to match a third party offer. If 5 or more units, can organize a tenant organization for 45 days, and then respond. Then 120 days to negotiate.