Real Estate Test - State Portion VA - Disclosure Requirements

A developer has prepared an advertisement, offering several lots for sale. One lot is $10,000 and all others are in the $15,000 - $20,000 price range. Prior to actually running the ad, the developer receives an offer for the $10,000 lot which he intends to accept. Which of the following statements is true regarding the advertisement? Select one: a. The developer may publish the ad as planned, but it cannot run for more than 4 weeks b. The developer may publish the ad as planned c. The developer cannot publish the ad as planned d. The developer may publish the ad as planned until 50% of the lots are sold

C

Bill hires Larry to sell his home. Bill prefers to communicate with Larry via email. One night, Larry replies to one of Bill's emails, but includes none of the required disclosures. Has Larry violated the rules? Select one: a. No, because Bill is Larry's client b. Yes, so long as Larry is a Broker c. No, because disclosure was provided in prior communication d. Yes, because the rules require specified disclosures in emails

C

Jill is selling her property to Carl. After they agreed upon a sale price they both signed the sales contract. Carl is reviewing the disclosure form which shows the septic system is in the process of being repaired there is a waiver attached to the property due to the failed septic system. What options does Carl have regarding the purchase of Jill's property? Select one: a. Carl will have to take the matter to court b. Carl can ask to back out of the sales contract but he risks a breach and loss of his deposit c. Carl is allowed to back out of the contract and get his full deposit refunded d. Carl is obligated by the sales contract to buy Jill's property

C

Jill wants to sell her home and enters into a sales contract with Jack. Jack will be moving in with his wife and three small children. Jill's broker must disclose of each of the following items to Jack, except: Select one: a. Condition of appliances b. Condition of electrical systems c. An occupant was HIV positive d. Condition of structural elements

C

Robert the Broker wants to stay on top of technological trends. Therefore, Robert decides to advertise his firm via banner ads on commercial web pages. Since the ad must be small, Robert makes no disclosures in the banner itself. Instead, Robert provides a link that redirects the user to his web page, which displays the necessary disclosures. Has Robert violated the rules? Select one: a. Yes, because his ad appears on another commercial site b. No, because the Board does not regulate banner advertising c. No, because it is permissible to provide a link to the required disclosures d. Yes, because the required disclosures must appear in the ad itself

C

Robert the Broker wants to stay on top of technological trends. Therefore, Robert decides to advertise his firm via banner ads on commercial web pages. Since the ad must be small, Robert makes no disclosures in the banner itself. Instead, Robert provides a link that redirects the user to his web page, which displays the necessary disclosures. Has Robert violated the rules? Select one: a. Yes, because his ad appears on another commercial site b. No, because the Board does not regulate banner advertising c. No, because it is permissible to provide a link to the required disclosures d. Yes, because the required disclosures must appear in the ad itself Feedback

C

The Virginia Property Disclosure Act applies to all of the following transactions, except: Select one: a. Property options b. Installment sales c. New home construction d. Property sales Feedback

C

The residential property disclosure form informs buyers that the seller makes no representations or warranties about all of the following, except: Select one: a. Whether the property contains defective drywall b. Whether the pipes/plumbing are lead free c. Whether the property has been the location of a death such as murder or suicide d. Whether the property is in a flood or radon zone

C

Under the Virginia Residential Property Disclosure Act, licensees must: Select one: a. Disclose material information about property they are selling b. Sign a disclaimer stating that the property will be transferred "as is." c. Inform all clients and customers of their rights and obligations under the Act d. Both A and B

C

What is wrong with this advertisement: "3 bdrm, 2 ba, $75,000. Ann Agent. Broker XYZ. Phone 123-4567"? Select one: a. The agent's name appears before the broker's name b. It does not disclose the agent's license status c. Nothing d. No property location specified

C

What is wrong with this advertisement: "3 bdrm, 2 ba, $75,000. Ann Agent. Broker XYZ. Phone 123-4567"? Select one: a. The agent's name appears before the broker's name b. No property location specified c. Nothing d. It does not disclose the agent's license status

C

Which of the following conditions is most likely to be a latent defect? Select one: a. The driveway concrete is cracked b. The paint is peeling on the exterior of the house c. The house's floor boards are rotting d. The carpeting is worn in the bedrooms

C

Which of the following statements is true regarding the Multiple Listing Service? Select one: a. It can only accept residential listings b. It can establish minimum and maximum commission rates c. It can refuse to accept open listings d. All of the above

C

A developer has prepared an advertisement, offering several lots for sale. One lot is $10,000 and all others are in the $15,000 - $20,000 price range. Prior to actually running the ad, the developer receives an offer for the $10,000 lot which he intends to accept. Which of the following statements is true regarding the advertisement? Select one: a. The developer may publish the ad as planned, but it cannot run for more than 4 weeks b. The developer may publish the ad as planned until 50% of the lots are sold c. The developer cannot publish the ad as planned d. The developer may publish the ad as planned

D

A parcel of real estate that you are trying to sell is located near a toxic waste site. The seller (your client) does not want you to disclose this information because he thinks that no one would buy if they knew. As a real estate agent, you have an obligation to: Select one: a. Disclose the information only when you are involved in an transaction b. Note it on the disclosure form--by doing this, you do not need to disclose the fact verbally c. Say nothing as per your fiduciary relationship with the seller (your client) d. Disclose the information regardless of whether you are involved in the transaction

D

Bill hires Larry to sell his home. Bill prefers to communicate with Larry via email. One night, Larry replies to one of Bill's emails, but includes none of the required disclosures. Has Larry violated the rules? Select one: a. No, because Bill is Larry's client b. Yes, so long as Larry is a Broker c. No, because disclosure was provided in prior communication d. Yes, because the rules require specified disclosures in emails

D

If used to advertise property, which type of communication could trigger disclosure requirements by a licensee? Select one: a. Email b. Instant messaging c. Chat d. All of the above

D

Jack the Broker sends an email to Mike. The email describes the real estate services Jack provides and encourages Mike to call for more details. Jack makes the required disclosures in the middle of his email, in bold lettering. Jack's email: Select one: a. Complies with the regulations, so long as it is at least 12 point, bold font b. Does not comply with the regulations c. Is not regulated by the Board d. Complies with the regulations Feedback

D

Jack the Broker sends an email to Mike. The email describes the real estate services Jack provides and encourages Mike to call for more details. Jack makes the required disclosures in the middle of his email, in bold lettering. Jack's email: Select one: a. Is not regulated by the Board b. Does not comply with the regulations c. Complies with the regulations, so long as it is at least 12 point, bold font d. Complies with the regulations

D

Jill wants to sell her home and enters into a sales contract with Jack. Jack will be moving in with his wife and three small children. Jill's broker must disclose of each of the following items to Jack, except: Select one: a. Condition of appliances b. Condition of structural elements c. Condition of electrical systems d. An occupant was HIV positive

D

John is holding an open house. On the day of the showing, he places several directional signs throughout the neighborhood. Placement of directional signs is illegal if: Select one: a. The colors on the sign are different than the firm's logo colors b. There is no agent at the location to answer questions c. They direct the public through a neighborhood more desirable than the subject property d. Placed on private property without permission of the owner

D

Placing a classified ad that contains incomplete or inaccurate information to "make the telephone ring" is: Select one: a. A common practice accepted by the industry b. Creative marketing c. Permissible, with the written permission of the owner d. Illegal

D

Placing a classified ad that contains incomplete or inaccurate information to "make the telephone ring" is: Select one: a. Permissible, with the written permission of the owner b. A common practice accepted by the industry c. Creative marketing d. Illegal

D

Prior to settlement, the listing broker discovers that a house has a history of plumbing issues. When the broker checks on the house, he notices the ceiling is beginning to leak. The broker should: Select one: a. Inform the buyer only b. Inform the seller only c. Fix it himself and tell no one d. Inform the buyer and seller

D

Salesperson Chris advertises a property that he listed. The ad reads, "beautiful rambler, excellent assumption. Call Chris at 555-0000 for details." This ad is in violation of the Virginia License Law because: Select one: a. It does not include a statement that the owner is licensed b. It does not include the owner's name c. It does not include the property address d. It does not include the name of Chris' firm

D

Sellers are required to provide buyers with a residential property disclosure statement, is there a required format? Select one: a. No, but typically the seller's agent will draft the disclosure statement b. No, the seller can choose the format of the disclosure statement c. Yes, the disclosure statement must follow the VA Residential Property Disclosure Act guidelines d. Yes, the disclosure statement provided must be the one found on the VREB website

D

The Virginia Property Disclosure/Disclaimer Acts apply to all of the following situations, EXCEPT: Select one: A. All property sales B. All property options C. All installment sales D. All leases

D

The owner of residential real property who has actual knowledge that the dwelling unit is a "repetitive risk loss" structure must disclose this fact to the purchaser, what is the owner disclosing? Select one: a. Any amount of time b. If the owner has had to file claims against the home warranty on multiple (2 or more) occasions c. If severe weather has caused property damage/loss on multiple (2 or more) occasions d. If the owner filed claims and was paid by the National Flood Insurance Program on multiple (2 or more) occasions

D

The principal broker of a real estate franchise must make certain disclosures when advertising. In which of the following forms of advertising are these disclosures NOT required? Select one: a. In radio and television advertisements b. On "For Sale" signs places on specific property c. In newspaper ads consisting of more than 28 lines of copy d. None of the above

D

Towns in the Chesapeake Bay area are required to take which actions to protect the public interest and protect the bay and surrounding public waters of this area? Select one: a. Incorporate water quality protection measures b. Establish programs to protect the bay area c. Provide financial and technical assistance to protect the bay area d. All of the above

D

Which of the following advertisements may contain a link to a required disclosure? Select one: A. a firm web page B. an email from a broker to a prospective client C. a posting on an Internet bulletin board by a broker regarding real estate services D. all of the above

D

Which of the following statements is true about real estate advertising? Select one: a. It must be supervised by the principal or supervising broker b. It must be in the name of the firm c. The firm's licensed name must be clearly and legibly displayed d. All of the above

D

Prior to settlement, the listing broker discovers that a house has a history of plumbing issues. When the broker checks on the house, he notices the ceiling is beginning to leak. The broker should: Select one: a. Inform the seller only b. Inform the buyer and seller c. Fix it himself and tell no one d. Inform the buyer only

B

Sellers are required to provide buyers with a residential property disclosure statement, is there a required format? Select one: a. No, the seller can choose the format of the disclosure statement b. Yes, the disclosure statement provided must be the one found on the VREB website c. No, but typically the seller's agent will draft the disclosure statement d. Yes, the disclosure statement must follow the VA Residential Property Disclosure Act guidelines

B

The Virginia Property Disclosure Act applies to all of the following transactions, except: Select one: a. Property options b. New home construction c. Installment sales d. Property sales Feedback

B

The Virginia Residential Property Disclosure Act requires disclosure of all of the following property conditions, except: Select one: a. The property has a pending building violation b. The property is in a dam break inundation zone c. The property has hazardous or defective drywall d. The property is in an aircraft noise zone

B

A real estate salesperson's license may be revoked if the licensee: Select one: a. Advertises a listing at lower than listed price b. Sells insurance from the real estate office where she is employed c. Charges more than the legal maximum commission rate d. Gives a reduced commission rate to a family member

A

Ben and Barry enter into a valid sales contract, which specifies that the trash compactor will be in working order. Ben signs a disclaimer/waiver about the property, which states that he is selling "as is" and gives no opinion on the condition of specified systems. When Barry takes possession of the house, the trash compactor is not operational. Does Barry have a cause of action against Ben? Select one: a. Yes, because Ben is in breach b. Yes, because Ben's disclosure was defective c. No, because Ben sold the home "as is" d. No, because Barry took possession

A

Ben and Jerry are communicating via instant messages. Ben is a licensee and Jerry is interested in locating property in Ben's area. Ben suggests that he may be able to help. Which of the following disclosures is Ben most likely required to make? Select one: a. Ben must disclose his firm name, city, and state b. Ben must disclose his username c. disclosures d. Ben must disclose his email address

A

Kim has a listing agreement with Agent Garcia. Agent Garcia and Kim draft the listing on Thursday and, in accordance with Kim's wishes, they plan to publicly advertise the listing on Monday after Kim returns from an out of town trip. Agent Garcia knows the weekend is the best for selling Real Estate and decides to add Kim's listing to the MLS on Saturday morning. Is Agent Garcia ok to do so? Select one: a. Agent Garcia has violated license law b. Agent Garcia showed great business acumen c. Agent Garcia is the professional and therefore is ok to list at the best time d. Both B and C

A

Which of the following names MUST appear in any advertisement for real estate? Select one: a. Listing broker b. Listing salesperson c. Seller d. Selling salesperson

A

Mark's home was the site of a widely publicized and grizzly murder. Unable to bear living in such a place, Mark puts his home on the market. However, Mark neglects to disclose the murders in a subsequent sale. In relation to the murder, Mark has most likely: Select one: a. Complied with Virginia's property disclosure law, provided the home has been property cleaned b. Not done anything wrong c. Violated Virginia's property disclosure law, unless he is represented by a broker d. Violated Virginia's property disclosure law

B

Mark's home was the site of a widely publicized and grizzly murder. Unable to bear living in such a place, Mark puts his home on the market. However, Mark neglects to disclose the murders in a subsequent sale. In relation to the murder, Mark has most likely: Select one: a. Complied with Virginia's property disclosure law, provided the home has been property cleaned b. Not done anything wrong c. Violated Virginia's property disclosure law, unless he is represented by a broker d. Violated Virginia's property disclosure law Feedback

B

"Defective drywall" is drywall designated by the US Consumer Product Safety Commission to be a substantial product hazard, OR drywall that contains elemental sulfur exceeding 10 parts per million. If a property has defective drywall what must be provided to a potential buyer? Select one: a.An agreement to have the defective drywall replaced prior to closing b. A written disclosure regarding the defective drywall c. An allowance for the buyer to repair the defective drywall after closing d. None of the above

B

"Defective drywall" is drywall designated by the US Consumer Product Safety Commission to be a substantial product hazard, OR drywall that contains elemental sulfur exceeding 10 parts per million. If a property has defective drywall what must be provided to a potential buyer? Select one: a.An agreement to have the defective drywall replaced prior to closing b. A written disclosure regarding the defective drywall c. An allowance for the buyer to repair the defective drywall after closing d. None of the above Feedback

B

A real estate salesperson's license may be revoked if the licensee: Select one: a. Sells insurance from the real estate office where she is employed b. Advertises a listing at lower than listed price c. Gives a reduced commission rate to a family member d. Charges more than the legal maximum commission rate

B

Mark's home was the site of a widely publicized and grizzly murder. Unable to bear living in such a place, Mark puts his home on the market. However, Mark neglects to disclose the murders in a subsequent sale. In relation to the murder, Mark has most likely: Select one: a. Not done anything wrong b. Violated Virginia's property disclosure law c. Complied with Virginia's property disclosure law, provided the home has been property cleaned d. Violated Virginia's property disclosure law, unless he is represented by a broker

a