VA State Principles of RE - Review Questions

b

A buyer's agent has presented an offer for property listed by another broker. Proper agency disclosures have been made. After delivering the offer the listing broker learns of a zoning change that will affect the value of the property. The listing broker tells his client and the client rejects the offer. Which of the following statements is correct? a. The listing broker has violated his responsibilities to the buyer. b. The listing broker has exercised due care and loyalty to his client. c. After the offer is delivered it is too late for the seller to reject the offer. d. Disclosure of this information violates Board regulations.

c

A real estate licensee could be suspended without investigation if the licensee a. Engages in acts of brokerage while on inactive status. b. Violates the Virginia Real Property Act. c. Does not pay the Transaction Recovery Fund assessment. d. Sells personally owned property in his or her own name.

c

By vote of the unit owners association, a time-share project could be terminated. What percentage of the voting interest is required for such action? a. 25%. b. 33-1/3%. c. 51%. d. 66-2/3%.

c

George, an independent broker, lists property. George offers broker Martha a portion of the fee if she can sell the property. Martha sells the property and George pays her per their agreement. The amount of the payment is never disclosed to either buyer or seller. According to Virginia regulations a. Martha is guilty of accepting valuable consideration from someone other than her employing broker. b. George is guilty of paying valuable consideration to a licensee not active with his firm, which violates Board regulations. c. The financial agreement between brokers must be disclosed, in writing, to all parties to the contact. d. Disclosure of this information is not required.

b

Relative to the resale on a time-share interest, which of the following is not true? a. The buyer of a time-share has a statutory 5-day right to rescind the contract. b. The time-share association may charge up to $100 for the Certificate of Resale. c. The seller is required to provide the buyer with a Certificate of Resale. d. If the buyer closes on a time-share contract, all rights of rescission are waived.

a

The Virginia Fair Housing Law prohibits discrimination on the basis of a. Familial status. b. Marital status. c. Source of income. d. Sexual preference.

b

The Virginia Residential Landlord Tenant Act allows a landlord to require a security deposit as a condition of a lease, but has established a maximum amount. The amount of such deposit cannot exceed a. One month's rent. b. Two month's rent. c. Three month's rent. d. $500.

d

The requirement that funds be held in an escrow account does not apply to which of the following? a. Money received as a security deposit for rental housing. b. An earnest money deposit, if closing is scheduled in less than 15 days. c. An earnest money deposit of less than $500. d. A commission received from an out-of-state broker.

c

What is the maximum amount of money that can be paid out of the Transaction Recovery Fund for claims against a single licensee during a two-year period? a. $20,000. b. $50,000. c. $100,000. d. There is no maximum.

c

When a person wants to file a claim for payment from the Virginia Real Estate Transaction Recovery Fund, where is the claim filed? a. The court of competent jurisdiction. b. The Virginia Association of Realtors. c. The Real Estate Board. d. The principal broker of the respondent.

c

A broker has received an earnest money deposit to support a valid contract. If the contract is breached and does not close, the broker is required to hold the escrow funds until a. The buyer requests the deposit be returned. b. The broker receives notice of the breach of contract from an attorney. c. All principals to the contract agree to the intended distribution. d. The non-defaulting party threatens legal action.

c

A broker manages three properties for the same owner. One property is in need of emergency repairs but there is not enough money in the management account to cover the cost. The broker borrows money from the escrow account of one of the other properties to make the repairs. Which of the following is true? a. The broker has acted properly by safeguarding his clients' interest. b. Such action is proper because all properties are owned by the same person. c. The broker is in violation of regulations for improperly handling escrow funds. d. The broker must use personal funds for repairs if there is not enough money in the management account.

a

A broker places one of her signs on property without the permission of the owner. In so doing, the broker a. Is in violation of Board regulations. b. Has violated Anti-Trust laws. c. Is misrepresenting a material fact. d. Has committed an act of disparate impact.

a

A broker, in an attempt to sell a property quickly, offers a bonus of $500 to the person that submits an acceptable offer on the property. To whom may the broker pay this bonus? a. Any other licensed cooperating broker. b. Any licensed associate broker. c. An unlicensed friend. d. Only to a licensee active with his own firm.

d

A licensed real estate salesperson may receive money or other valuable consideration for services rendered in connection with property management from a. Relatives or friends. b. The property owner he or she represents. c. Any licensed broker. d. His or her employing broker.

d

A licensee whose license has been on inactive status for more than three years will have to do which of the following in order to activate the license? a. Sign an irrevocable consent to suits and services. b. Appear at a hearing before the Board. c. Apply for relicensure as a new applicant. d. Meet current educational requirements.

c

A person, other than the declarant, selling a condominium is required to provide the buyer with certain documents. 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.

a

If a broker opens a branch office in Virginia, which of the following is true? a. Upon proper application, the Board will issue a license for the Branch b. A salesperson with five years experience can manage the office. c. The broker must advise the Board the names and addresses of all licensees assigned to the new office. d. The broker must hire at least one salesperson.

a

If the Board receives a complaint accusing a licensee of violating the Virginia Fair Housing Law, which of the following statements is correct? a. If the respondent is guilty, his or her license could be suspended or revoked. b. The licensee is subject to a maximum fine of $500.00. c. The Board will suspend the respondent's license pending full investigation. d. The Board will notify HUD immediately.

c

If the Transaction Recovery Fund falls below the statutory minimum, licensees may be assessed to restore the Fund. What is the maximum that one licensee may be assessed during a two-year period? a. $40.00; $20.00 per year. b. $50.00. c. $20.00. d. There is no maximum assessment.

d

Mike, a broker, has decided to open his own brokerage partnership. His long time friend Peter is a licensed stock broker and has agreed to finance the partnership and share in the profits. Peter will be designated as the senior partner. Which of the following statements is correct? a. Peter may not engage in acts of brokerage. b. The partnership must have a separate license, issued by the Board. c. Peter may be the senior partner, but he cannot be the principal broker. d. All of the above are correct.

a

When a broker establishes an account, or accounts, to hold money belonging to others, which of the following is true? a. All checks, deposit slips and bank statements must include the word "Escrow" as part of the account name. b. Accounts may be labeled either "Trust" or "Escrow". c. The money may not be held in the same bank as the broker's operating account. d. An individual account is required for each transaction. Feedback

d

When a broker places a "For-Sale" sign on property, what must appear on the sign? a. The phone number of the broker. b. The name of the person that listed the property. c. The selling price of the property. d. The firms license name.

c

When a payment is made from the Transaction Recovery Fund due to the improper activities of a licensee, it results in a. Suspension of the respondent's license. b. No further action by the Board if the Fund is repaid within 30 days. c. Revoking the license of the respondent. d. A fine of $2,000.

a

When a salesperson is alleged to have violated the license law which could result in disciplinary action, which of the following statements is true? a. An investigation will be conducted unless the law specifically provides otherwise. b. The salesperson is entitled to a jury trial before any action can be taken. c. The salesperson's license will be temporarily suspended until the Board can schedule a formal hearing. d. The salesperson's broker is automatically charged with the same violation.

b

When a salesperson terminates affiliation with a broker, what is the salesperson required to do? a. Give the broker all listings acquired during affiliation with the broker. b. Nothing. c. Return all customer cards to the employing broker. d. Mail his or her license to the Board.

d

When are real estate licenses renewed? a. Annually, in the month issued. b. Every two years, in the month of the licensee's birthday. c. On June 30 of each evened numbered year. d. Every two years on the last day of the month in which they were issued.

c

When may a broker remove money from his or her escrow account? a. At the time the buyer occupies the property. b. When directed to do so by the seller. c. When closing is completed. d. Any of the above.

c

Which of the following is true regarding a branch office of a Virginia real estate firm? a. The office must have an escrow account. b. The office may be managed by a salesperson with 3 years experience. c. The office must have a separate license. d. The branch office must have available the licenses of all agents assigned to the branch office.

d

Which of the following would be a violation of the Virginia Fair Housing Law? a. Refusing to list a commercial property owned by a person of a particular minority group. b. Hiring office personnel on the basis of sex regardless of qualifications. c. Placing ads, printed in a foreign language. d. Taking listing with the intent to change the racial make-up of the neighborhood.