VA Transaction Recovery Fund

The Real Estate Board can re-assess licensees if the Transaction Recovery Fund's balance falls below: Select one: A. $400,000 B. $500,000 C. $750,000 D. $900,000

$400,000

If the Board has authorized payment from the Transaction Recovery Fund, what is the effect for the licensee who committed the misconduct? Select one: A. The licensee has 4 years to repay the Fund B. The license will be automatically revoked C. The license will be automatically suspended D. The licensee may continue to sell real estate if a court has adjudicated him as bankrupt

The license will be automatically revoked

A consumer may file a Transaction Recovery Fund claim for a loss sustained as the result of a licensee's fraudulent act. In order to receive payment, this claim must be in connection with: Select one: A. A personal loan B. An investment in a limited real estate partnership C. A real estate transaction D. All of the above

A real estate transaction

An award from the Transaction Recovery Fund will result in: Select one: A. Automatic suspension of the real estate license B. Automatic revocation of the real estate license C. A fine not to exceed $50,000 D. A fine not to exceed $20,000, and up to 6 months in prison

Automatic revocation of the real estate license

If a payment is made on a broker's behalf from the Transaction Recovery Fund, what action does the Board take? Select one: A. Automatically suspend the broker's license B. Automatically fine the licensee for $1,000, then schedule a hearing C. Automatically revoke the broker's license D. Schedule a hearing to determine guilt or innocence

Automatically revoke the broker's license

Kathy the Consumer has filed a claim for payment from the Transaction Recovery Fund. The reason for the claim is to reimburse a loss sustained after a salesperson made a gross misrepresentation. In order for Kathy to collect, she must have already: Select one: A. Filed a suit against the local Realtors Association B. Filed a claim against the salesperson in a court of competent jurisdiction C. Filed a claim against the salesperson's broker D. Filed a claim with HUD

Filed a claim against the salesperson in a court of competent jurisdiction

A license may be suspended without benefit of a hearing: Select one: A. For failure to pay an assessment to the TRF B. For failure to pay an assessment to the TRF within 10 days C. If there is a violation of the Board's regulations D. Under no circumstances

For failure to pay an assessment to the TRF

The purpose of the Transaction Recovery Fund is to: Select one: A. Reimburse financial losses caused by licensee misconduct B. Encourage higher education in real estate C. Provide retirement income for brokers D. Provide funds for the Board's operating expenses

Reimburse financial losses caused by licensee misconduct

Which of the following persons may file a claim and collect from the Virginia Transaction Recovery Fund? Select one: A. A broker or a salesperson that has been defrauded in a real estate transaction B. A consumer that has been defrauded in a real estate transaction C. A real estate developer that has been defrauded in a real estate transaction D. All of the above

A consumer that has been defrauded in a real estate transaction

Which of the following persons could file a claim for payment from the Transaction Recovery Fund? Select one: A. A licensed salesperson, to recover money that his broker owes B. A lender, to recover losses sustained due to a real estate agent's misrepresentation C. A tenant, seeking to recover a security deposit from his landlord D. All of the above

All of the above

A real estate license could be suspended without investigation if the licensee: Select one: 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. All of the above

Does not pay the Transaction Recovery Fund assessment

If the Board honors a claim and authorizes payment from the Transaction Recovery Fund, the claimant subrogates his rights to the Board. The Board now has the right to: Select one: A. File a claim against to the licensee to recover the amount paid from the Fund B. File a claim against the licensee to recover the judgement amount awarded by the court C. Only to revoke the license, as provided by Virginia law D. Sentence the licensee to a prison term of no more than 12 months

File a claim against to the licensee to recover the amount paid from the Fund

Claims for payment from the Transaction Recovery Fund are filed with the: Select one: A. Real Estate Board B. Local Association of Realtors C. Court of competent jurisdiction D. Salesperson's broker

Real Estate Board

If a person wants to make a claim from the Transaction Recovery Fund, where should this claim be filed? Select one: A. A court of competent jurisdiction B. The Virginia Association of Realtors C. The Real Estate Board D. The principal broker of the respondent

The Real Estate Board

Which of the following statements is true if a broker has repaid the amounts awarded from the Transaction Recovery Fund? Select one: A. His license is automatically reinstated B. The Real Estate Board could withhold issuance of a new license, forever C. He may apply for a new license within 30 days D. He will be reinstated as a salesperson, NOT as a broker, for a period of 2 years

The Real Estate Board could withhold issuance of a new license, forever

When a claim is paid from the Transaction Recovery fund, which of the following statements is true? Select one: A. The licensee named in the claim must post a bond in order to continue practicing real estate B. The claimant assigns his rights to the Board, to the extent of the amount of money paid by the Fund C. All claims submitted in relation to a licensee's misconduct in a single transaction may not exceed $20,000 D. All of the above

The claimant assigns his rights to the Board, to the extent of the amount of money paid by the Fund

What is the maximum amount that can be paid from the Transaction Recovery Fund for claims against the same licensee during a two year period? Select one: A. $10,000 B. $20,000 C. $50,000 D. $100,000

$100,000

If the Transaction Recovery Fund falls below a 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? Select one: A. $20 B. $40 C. $50 D. There is no maximum assessment

$20

New licensee applicants are required to pay into the Transaction Recovery Fund. If necessary, the Board may reassess licensees: Select one: A. $20 every year B. $20 in a two year period C. $20 every two years D. $30 in a two year period

$20 in a two year period

If the named licensee is involved in multiple transaction violations, what is the maximum that a person may collect from the Transaction Recovery Fund? Select one: A. $10,000 B. $20,000 C. $100,000 D. None

$20,000

In a single transaction, what is the maximum amount that a person can collect from the Transaction Recovery Fund due to licensee misconduct? Select one: A. $100,000 B. $20,000 C. $15,000 D. $10,000

$20,000

The minimum balance of the Virginia Real Estate Transaction Recovery Fund is: Select one: A. $800,000 B. $750,000 C. $600,000 D. $400,000

$400,000

Harry is a broker. He works out a deal with Larry (a developer), Darrell (a contractor), and Tony (a mortgage banker). The deal states that Harry will sell all of the houses that Darrell built on Larry's land. After that, Tony would handle the mortgages of any buyers through his bank. Harry sells three houses, then runs off with all the funds. Larry, Darrell, and Tony all file claims for payment from the Transaction Recovery Fund. Who is most likely to collect? Select one: A. Larry, the developer B. Darrell, the contractor C. Tony, the mortgage banker D. No one

No one

If a judgment has been awarded to a claimant, what must the claimant do before the Board will authorize payment from the Transaction Recovery Fund? Select one: A. The claimant must have gone after any assets and property belonging to the debtor B. The respondent must assign all commissions and personal property to the claimant or the Board C. The respondent must file bankruptcy and sell all property D. The respondent must submit to interrogatories by claimant

The claimant must have gone after any assets and property belonging to the debtor

Which of the following statements about the Transaction Recovery Fund is correct? Select one: A. If the Fund falls below $400,000, the Director may only assess active licensees to restore the Fund B. A licensee accused in the claim must sell all personal possessions to satisfy the claim C. A claimant may collect up to $20,000 D. When a claim is paid, the respondent's license will be automatically suspended

A claimant may collect up to $20,000

When the Transaction Recovery Fund balance falls below a statutory minimum, it results in: Select one: A. An assessment from all licensees to restore the fund to the minimum balance B. An assessment from active licensees to restore the fund to the minimum balance C. An evaluation of the Fund's investments in order to generate additional earnings D. A 20 percent decrease in the maximum payment one may receive from the fund

An assessment from all licensees to restore the fund to the minimum balance

Kerra the Consumer has filed a claim for payment from the Transaction Recovery Fund. Which of the following statements must be incorrect? Select one: A. Kerra filed suit against the local Association of Realtors B. Kerra has obtained a judgement in court C. Kerra claim cannot include interest in her damages D. Kerra must wait until there is sufficient money in the Fund before payment

Kerra filed suit against the local Association of Realtors