PRACTICE TEST - 3

14. Commission rates are established by: A. the code of ethics of the MLS B. the broker and the seller C. the Virginia Real Estate Board D. the local Association of REALTORSB

B

15. When a partnership is formed to transact real estate brokerage, which of the following is true? A. all partners must be licensed as brokers B. a separate license must be obtained for the partnership C. any actively licensed salesperson can be a partner D. residence addresses of all employees must be submitted to the Board

B

3. A broker may remove money from his or her escrow account in all of the following circumstances EXCEPT? A. when a court orders the broker to do so B. with written permission of all parties to the contract C. rescission of the contract by the seller D. termination of the contract, by performance

C

9. The initial purchaser of a condominium ratified his contract to purchase on 6 June. Fhe purchaser was given the public offering statement on 10 June. The purchaser may rescind the contract, without penalty no later than: A. midnight 6 June B. midnight 10 June C. midnight 15 June D. midnight 20 June

C

11. Under the Virginia Property Disclosure Law, no cause of action shall arise against an owner or a real estate licensee for failure to disclose that the real property was the site of: A. an occurrence which had no effect on the physical structure of the real property B. an occurrence which had no effect on the physical improvements C. a homicide, felony, or suicide D. all of the above

D

17. Cathy had just started to work as a salesperson and on her first day on the job, she obtained an exclusive listing. Although she was very excited, she was also nervous because she wanted to make certain that she filled out the listing agreement properly. Which of the following is NOT required when filling out the listing agreement? A. including the total commission that the seller will pay B. establishing a definite date that the listing will expire and indicate that date on listing C. providing the seller with a copy of the listing D. including the net amount that the seller wants to receive from the sale

D

2. The owner of the residential real property shall furnish to a purchaser a residential property statement for the buyer to be aware of certain matters that may affect the buyer's to purchase such real property. Such statement shall be on a form provided by the Real Estate Board on its website. The disclosure statement shall include statements that the owner makes no representation with respect to: A. the Chesapeake Bay Preservation Act B. information on sexual offenders c. parcels adjacent to the subject parcel D all of the above

D

20. The buyer of a property located in a POA has how many days to resend the contract? A. 10 days after receiving the association disclosure packet B. 7 days after receiving the association disclosure packet C. 48 hours after receiving the association disclosure packet D. 3 days after receiving the association disclosure packet

D

25. The following electronic advertising requires disclosure or a link to the disclosure of the firm's name: A. Web page B. E-mail, newsgroups, discussion lists, and bulletin boards C. Chat sessions D. all of the above

D

26. The Virginia Underground Utility Damage Prevention Act: A. requires the excavator to allow the required time for Miss Utility to come and mark before excavating B. requires the excavator to respect and protect the marks Miss Utility places C. requires excavators to excavate carefully D. all of the above

D

28. Under which of the following circumstances could a salesperson conduct a closing of a real estate transaction? A. if an attorney has prepared the papers B. when supervised by the principal broker C. when assisted by a licensed CPA D. salespersons may not conduct a closing, ever

D

29. If a principal broker has been found guilty of violating the Board regulations and as a res alt, her license is suspended, what effect does this have on the associate brokers and salespeople affiliate d with this broker? A. all affiliates will be required to retake the license exam B. their licenses will also be suspended C. it has no effect D. their licenses must be returned to the Board

D

7. Which at the following statements relative to the Transaction Recovery Fund is INCORRECT? A. if the fund falls below $400,000, all licensees may be assessed up to $20.00 to restore the Fund B. all new license applicants are assessed a fee C. if the Board allows a claim to be paid from the Fund, the respondent's license will be automatically revoked D. licensees transferring from inactive status to active status are required to pay into the Fund

D

l. The intent of the Virginia Fair Housing Law is to: A. eliminate discrimination in housing B. prevent Federal government involvement in Fair Housing matters within the Commonwealth c. encourage development of housing specifically for the benefit of minorities D. increase revenues through monetary penalties imposed on persons who violate the Fair Housing Law

A

13. A broker, representing a buyer, has presented an offer for property listed by another broker. Proper agency relationship disclosures have been made. Prior to offer acceptance, the selling broker learns of a zoning change that will have an adverse impact on the property. The selling broker advises his buyer and the offer is withdrawn. Which of the following statements is correct? A. the selling broker has violated his fiduciary relationship with the seller B. the selling broker has acted properly under the law C. the buyer may not withdraw his offer D. disclosure of this information violates Board regulations

B

27. When a claim is paid from the Transaction Recovery Fund, which of the following statements is true? A. the respondent must post a bond in order to continue the practice of real estate brokerage B. the claimant subrogates his or her rights to the Board to the extent of the claim paid by the Fund C. no claim may be filed for less than $10,000 D. the respondent must repay the Fund within 30 days

B

4. A written offer is presented and rejected by the seller. The seller counters and the bu; er accepts' the counteroffer. When is the broker required to provide the parties with copies of the paperwork? A. within 24 hours B. promptly, after obtaining proper acceptance by all parties C. after the broker has proofread the documents D. at closing

B

6. The owner of residential real property located in any locality in which a military air installation is located shall disclose to the purchaser: A. what time the airplanes land and take off B. whether the subject parcel is located in a noise zone or accident potential zone or both C. what kind of aircraft are located at the air installation D. if a plane has every crashed at the air installation

B

8. Under certain circumstances, the Board may grant reciprocity to a person applying licensure. In the Virginia License Law, reciprocity means: A. a broker may be granted more than one Virginia license B. the Board may waive part of the pre-licensing requirements necessary to obtain a Virginia license C. a broker, licensed in another state, may operate as a salesperson in Virginia D. a salesperson or broker, licensed in another state, may handle up to six transactions (listings or sales) without obtaining a Virginia license

B

30. If a contract of sale is not consummated, how are the escrow funds disbursed? A. by the settlement attorney with permission of the parties B. by the broker, with the permission of the seller C. by the Board D. in accordance with the terms of the contract, if neither party files a written objection, after proper notice

D

16. The Virginia Property Disclosure Law's reference to the sexual offender's registration is also known as: A. Megan's Law B. Jane's Law C. Adam's Law D. Betty's Law

A

18. According to the Virginia Landlord Tenant Act: A. security deposits are to be refunded, in whole or in part, within 45 days following termination of a lease B. the owner must inspect the property within five days of termination of the rental agreement C. any tenant violation of the rental agreement must be corrected within two days after notification D. the owner of an apartment building, consisting of 4 units or less, is exempt from the Act

A

22. If the Board authorizes payment from the Transaction Recovery Fund, the claimant subrogates his or her rights to the Board. The Board now has the right to: A. revoke the respondent's license, as provided in the law B. sue the licensee to recover the amount of the judgment awarded the claimant, by the court C. sue the licensee to recover the amount of the claim paid D. sentence the licensee to a prison term of not more than 12 months

A

23. Hal, a licensed salesperson, obtains a listing. Several days later, while showing this same property, Hal remarks to the prospective buyers that he is the listing agent. Under the circumstances described, Hal: A. is in violation of the Board regulation for failure to properly disclose his agency relationship B. has disclosed his agency relationship with the seller C. is in violation of Board regulations because you cannot sell your own listing D. is in violation of Board regulations because he has created a dual agency

A

5. The account used by a broker to hold money, belonging to others, pending consummation of a real estate transaction: A. must be labeled as "escrow" with the bank holding the funds B. is identified as a "trust" account in the broker's accounting system C. may not be the same financial institution as the broker's operating account D. must be individual accounts for each transaction

A

10. Bob owns a rental property for which he is receiving $800.00 per month. He asks his friend, Al, a licensed salesperson, to manage and negotiate leases for the property and will pay Al iny amount in excess of the $800.00 as the management fee. May Al accept this listing? A. only if the fee is expressed, in the listing, as a fixed amount or a percentage of the rental income B. yes, provided that Al's license is active C. no, unless it is handled though his company and principal broker D. only if the gross rental is disclosed to Al

C

12. A broker may place a sign on property: A. only when he has a written listing agreement B. after the first advertisement appears in the newspaper C. if he has the permission of the property owner D. when he plans to hold an open house at the location

C

19. When a payment is made from the Virginia Real Estate Transaction Recovery Fund due to the activities of a licensee, it results in: A. suspension of the respondent's license B. no action by the board if repaid within 30 days C. revoking the license of the licensee named in the complaint D. a fine not to exceed $2,000.00

C

21. A person, other than the declarant, selling a condominium is required to provide the buyer with certain disclosures. Which of the following is NOT required? A. a copy of the condo CCR's and by-laws B. a current financial statement of the condo association C. a personal credit report of the seller D. a statement of projected capital expenditures

C

24. All real estate advertisements placed by a real estate firm must: A. be under the direct supervision of the principal broker B. be in the name of the firm C. contain in electronic advertising, the require disclosure and that disclosure be no more than one click away D. all of the above

D