Unit 3 - Virginia License Law and Math Practice Exam 2018

A property is purchased for $480,000. The land is valued at 10% of the initial purchase price of the property. Given a 39-year depreciation term, what is the annual depreciation expense? $5,333 $11,077 $12,308 $18,720

$11,077

A farmer wants to net at least $10,000/acre on the sale of his 80-acre property. If he allows for a total of 10% for commissions and closing costs, what should his listing price be per acre? Assume the farmer has no mortgage. $11,111 $11,000 $10,900 $10,000

$11,111

A property sells for $140,000 two years after it was purchased. If the annual appreciation rate is 6%, how much did the original buyer pay for it? $120,500 $121,000 $123,740 $124,600

$124,600

The lender quotes closing costs of $800 plus 2 points on a $610,000 loan. How much will the borrower have to pay? $6,100 $11,400 $13,000 $16,050

$13,000

A property is being appraised by the cost approach. The appraiser estimates that the land is worth $33,000 and the replacement cost of the home is $110,000. A new $20,000 garage was recently added. Total depreciation from all causes is $7,000. What is the indicated value of the property? $170,000 $156,000 $136,000 $123,000

$156,000

A lender offers an investor a maximum 85% LTV loan on the appraised value of a property. If the investor pays $160,000 for the property how much will the investor have to pay as a down payment? $16,000 $24,000 $32,000 $136,000

$24,000

Anne obtains a new loan @ 80% of her home's price of $740,000. The loan constant is 5.645. What is Anne's monthly payment? $2,883 $3,342 4,177 $3,882

$3,342

A property has sold for $185,000. The listing agreement calls for a commission of 6.5%. The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 65% share from his broker? $2,109 $3,908 $4,209 $4,467

$3,908

An investor paid $43,000 for a lot and $520,000 to have a strip mall constructed on it. He has depreciated the property for the past 15 years on a 39-year straight-line schedule. If he sells the property this year and realizes $710,000 after closing expenses, what is his capital gain? $190,000 $233,000 $347,000 $433,000

$347,000

Dan is buying Jessica's house. The closing date (day belongs to seller) of the sale transaction is March 9th. Current year real estate taxes are $1,900 (will be billed to Dan next year). Use the 365-day method for prorating. What is Jessica's share of the real estate taxes for the current year? $354 $364 $390 $1,546

$354 Annual amount / 365 days or monthly amount /length of month = daily amount. Daily amount x # days = proration. $1,900 / 365 = $5.21 daily amount (31 January days + 28 February days + 9 March days =) 68 days $5.21 x 68 = $354

An apartment complex generates $905,000 in effective rental income and $14,000 in other income. The same complex has $415,000 in operating expenses and $39,000 as reserves. What is the net operating income of the complex? $451,000 $465,000 $490,000 $504,000

$465,000

Tyler Holdlong owns a small retail property that he inherited from his father. There are no mortgages or interest expenses connected with the property. Tyler takes an annual cost recovery expense of $3,000. The property has a monthly gross income of $3,500 and monthly operating expenses of $1,100. Tyler's taxable income from this property will be taxed at a rate of 25%. What is the tax liability for the year? $10,500 $7,950 $7,200 $6,450

$6,450

A building has 9 apartments generating annual potential rent of $1,500 each month. Vacancy = 6% and annual expenses are $84,000. Vending machines yield $1,800 per year. What is the NOI? $152,280 $88,550 $79,800 $70,080

$70,080

Natalie wants to make a 25% profit on her $70,000 land investment (there is no mortgage). She figures agents charge a 6% commission, and that closing costs will be an additional $1,200. What should she accept as a final sale price (to the nearest hundred)? $87,500 $94,400 $100,500 $106,700

$94,400

If the tenant is allowed within the lease to sublease, the sublessee must be approved by the landlord within ___ days of written notice. 5 8 10 14

10

If a Virginia license applicant has passed the exam, he has____ months to apply for a license. 2 6 12 24

12

Virginia real estate license applicants must pass a written license examination approved by the Virginia Real Estate Board within _____ months of license application. 12 18 24 36

12

All active brokers and salespeople must complete at least __ hours in approved continuing education during each licensed term. 6 8 16 24

16

Upon the death or disability of a licensed real estate broker who was engaged in a proprietorship or who was the only licensed broker in a corporation or partnership, the estate, an adult family member, or an employee of the licensee conclude the broker's business for ____ following the death or disability of the broker. 30 days 60 days four months 180 days

180 days

A town has a tax base of $411,000,000 and a budget of $850,000. What is the tax rate in terms of mills? 2.1 mills 4.8 mills 21 mills 48 mills

2.1 mills

Escrow records must be kept for ____ from the date of closing or ratification, if the transaction does not close. 3 months one year 3 years 5 years

3 years

A written notice must be given to the board in the event of any change of business name or location within ______ days of the change of name or location. 10 business 15 calendar 20 business 30 calendar

30 calendar

If a property owner has more than ___ single family homes or condominiums located in an area governed by either a county executive or a county manager, the Virginia Residential Landlord and Tenant Act is in full force and effect. 3 4 7 10

4

Phillip advised his clients they needed to paint their master bedroom before showing the property. The walls of this room were 11' high. The wall lengths were 13', 19', 13', and 17'. If a gallon of paint covers 180 SF, how many whole gallons would the homesellers have to buy? 3 gallons 4 gallons 5 gallons 8 gallons

4 gallons

The Virginia Real Estate Board currently requires anyone wishing to obtain a real estate license to complete and pass a state-approved ____-hour course on the principles of real estate. 30 45 60 90

60

A developer wants to develop a 18-acre subdivision. He figures that the streets and common area will take up about 20% of this overall area. If the minimum lot size is to be 10,000 SF, how many lots can the developer have on this property? 18 lots 48 lots 62 lots 78 lots

62 lots

If a rectangular office space is 72 feet wide and has a 410-foot perimeter, what is its area? 5,184 square feet 7,755 square feet 9,576 square feet 19,152 square feet

9,576 square feet

_____ is one in which the licensee is associated with a broker, who must certify the new licensee's license application that he has agreed to be associated with this new licensee. An inactive license An active license An inactive not renewed license A suspended license

An active license

A landlord is allowed to access rental properties: never with permission of the tenant in an emergency B and C

B and C

The active license always hangs in the _____. Broker's main office licensee's branch office Board's meeting room Governor's mansion

Broker's main office

A property's taxes are $9,540 and are paid for in arrears. The property was sold and closing took place on March 7. The seller was responsible for the day of closing. Using the 360 day method, how will taxes be prorated? Credit the seller $186 and debit the buyer $186. Credit the buyer $1,590 and debit the seller $1,590. Credit the buyer $1,675.50 and debit the seller $1,675.50 Credit the buyer $1,776 and debit the seller $1,776.

Credit the buyer $1,776 and debit the seller $1,776.

A buyer will receive a power bill for an estimated $140 at the end of the month. At closing, the seller has used an estimated $67 in power. What should appear on the closing statement? Credit the buyer $73 and debit the buyer $67 Credit the buyer $67 and debit the seller $67 Credit the seller $73 and debit the buyer $73. Debit the power company $73 and debit the buyer $67

Credit the buyer $67 and debit the seller $67

What percentage of licensing fees paid in Virginia are refundable: 25% 50% 75% None

None

In which case may a commercial real estate licensee be allowed to substitute training in other state and federal discrimination laws for fair housing continuing education? - Never - with his broker's approval - after submitting a notarized affidavit stating that he does not and will not practice residential real estate to the board - with a majority vote of the licensees in his jurisdiction

after submitting a notarized affidavit stating that he does not and will not practice residential real estate to the board

Advertising, under Virginia law, includes: telephone communications insignias business cards all of the above

all of the above

Broker license educational courses will include: real estate law brokerage real estate finance all of the above

all of the above

The broker's records should include: any funds received, and the source of those funds the date the funds were received the date of the deposit of the funds all of the above

all of the above

The principal broker must hold: - the firm license - the principal broker license - the license of every salesperson and broker associated with or employed by the firm - all of the above

all of the above

Under the Virginia Residential Landlord and Tenant Act, landlords are allowed to charge an application fee to a prospective tenant. If a rental agreement is not made, ___. - and the fee exceeds $32, and the property is not rented, the refund will be all fees in excess of the expenses and damages. The fee must be refunded within 10 days, unless paid by check (in which case it has to be refunded by 20 days) - the fee must be refunded within 30 days, unless paid by check (in which case it has to be refunded by 60 days) - the fee is not refundable - none of the above

and the fee exceeds $32, and the property is not rented, the refund will be all fees in excess of the expenses and damages. The fee must be refunded within 10 days, unless paid by check (in which case it has to be refunded by 20 days)

For which of the following might a licensee face disciplinary action from the board? - obtaining a license fraudulently - allowing someone else to take the exam in the "licensee's" place - falsifying the application - any of the above

any of the above

If a transaction is not consummated, eventually what happens to the money? - All the principals agree in writing to the disposition of the funds - the funds are disbursed through court order - the broker will decide to whom the funds belong - any of the above

any of the above

If the owner is selling his own property, he must clearly disclose that he is licensed in: newspaper advertisements signage on the property both A and B neither A nor B

both A and B

If a person is licensed elsewhere as a salesperson or broker, the Virginia board: - will not waive any of the pre-licensing requirements in Virginia - does have the authority to waive all of the pre-licensing requirements - does have the authority to waive part of the pre-licensing requirements - both B and C

both B and C

A _____ firm license is one in which any corporation, LLC, association, or non-broker owner sole proprietorship must have a Virginia real estate firm license. Brokerage business entity business association

business entity

Once a contract is ratified, any earnest money or down payments MUST be put into the escrow account by the end of the _____ , unless otherwise agreed to in writing. First business day third business banking day fifth business banking day tenth business banking day

fifth business banking day

Every Virginia Broker must have a place of business: in Virginia anywhere in the U.S. anywhere in the world in Virginia or a neighboring state

in Virginia

All advertising must be done: by any salesperson, without supervision in the name of the firm to imply that the property is "for sale by owner" all of the above

in the name of the firm

____ leases have "automatic renewal" clauses, stating that the lease will automatically renew with the same terms unless one of the parties notifies the other party in writing within a specified number of days before the termination of the lease. all most few none

most

If a person has passed the state exam, and does not apply for a license within the time allotted by the law he/she must take an additional 45 hours of schooling take an additional 55 hours of schooling retake and pass the exam again none of the above

retake and pass the exam again

What immediately happens to funds in an escrow account if the transaction is not consummated? they go to the buyer they go to the seller they go to the broker they remain in escrow for the time being

they remain in escrow for the time being