VIRGINIA REAL ESTATE

What is the maximum late charge that may be assessed on a mortgage loan payment in Virginia? A) no limit if the charge is stated in the loan contract B) 5% C) 10% D) 15%

A

Which of the following statements is FALSE regarding taxes on new construction? A) taxes are prorated based on the previous year's taxes B) taxes are estimated from the date of the certificate of occupancy C) the first year taxes may be artificially low D) taxes are estimated based on the comparable values for the area

A

The primary purpose of the Virginia Housing Development Authority (VHDA) is to A) encourage more housing development in Virginia B) make housing more affordable for low income and moderate income buyers C) obtain funds from state tax dollars D) replace VA and FHA funding in Virginia

B

A typical right-to-represent buyer agreement should contain all of the following EXCEPT A) statement of the duties to be performed B) disclosure of how the broker will be paid C) marketing plan D) assurance that buyer has not entered into any other buyer representation agreement

C

The VHDA is funded by A) HUD B) Virginia income tax C) sale of bonds in the private sector D) federal subsidy programs

C

A creditor on a judgment must enforce the judgement once it is rendered within A) six months B) one year C) five years D) twenty years

D

A married couple owns real property as tenants by the entirety. One spouse dies owing money to creditors. I'm this situation, the surviving spouse owns the entire property A) in severalty and is liable to the creditors B) and is not liable to the creditors C) except for a share owned by the creditors D) and the creditors cannot make any claim to the property

D

If a lien against the property of a decedent is made, it remains enforceable for A) 6 months B) 18 months C) 2 years D) 10 years

D

Legislation that directly affects the policies and procedures of a brokerage firm includes all of the following EXCEPT A) cold calling for prospects (National Do Not Call Registry B) emailed newsletters (CAN-SPAM) C) maintenance of client records (FACTA) D) purchase of flood insurance (NFIP)

D

The TILA-RESPA Integrated Disclosures (TRID) that was made mandatory on October 3, 2015 includes the new form called the Loan Estimate (LE) which replaced A) the GFE B) the truth in lending statement C) the HUD-1 settlement statement D) both the GFE and the initial Truth in lending statement

D

The buyer and seller agree to the sale of a home for $150,000. No written contract is signed, but the seller accepts payment in full from the buyer and delivers the deed. Which of the following statements is TRUE? A)the sale is without legal effect; the seller continues to own the home B) the sale violates the statute of frauds maximum amount for oral contracts C) the sale is enforceable in a court of law under the statute of frauds, due to the parties compliance D) the sale is unenforceable under the statute of frauds, but the parties are free to comply with its terms

D

The current real estate regulations went into effect A) January 1st 2015 B) July 1st 2015 C) October 3rd, 2015 D) November 1st 2015

D

The new rules for mortgage servicers established by the CFPB include all of the following EXCEPT A) provide two months warning for any rate increase B) promptly credit mortgage payments C) work with the borrower before starting foreclosure proceedings D) allow a six months moratorium for delinquent loans

D

The specific duty that falls under the duty to promote the best interests of the client that only applies to sellers and landlords is the duty to A) conduct marketing activities. B) seek a price and terms acceptable to the client C) assist in the drafting and negotiating of offers and counteroffers D) providing assistance to satisfy the client's contract obligations.

A

The trustee's responsibilities include all of the following EXCEPT A) purchase the property B) act as agent for both grantor (homeowner) and beneficiary (lender) C) adjourn the sale of property will be sold at an inadequate price D) determine if there are any real estate taxes due

A

Two partners in a successful accounting practice are in the process of purchasing a small office condominium for their practice. They would NOT be able to take title as A) tenants by the entirety (husband and wife) B) tenants in common C) joint tenants D) tenants in partnership

A

Two weeks after a buyer and a seller signed a sales contract on a house, the house burned to the ground. If the contract is silent on the issue, which party is liable? A) only the buyer is liable according to Virginia law B) the buyer and the seller share the risk of the loss equally C) the seller is liable because she continues to possess title to the property D) the seller is liable under the implied condition of good faith

A

Which federal organization is responsible for identifying flood areas? A) Federal Emergency Management Agency (FEMA) B) department of housing and urban C) environmental protection agency (EPA) D) u.s. fish and wildlife service

A

Which of the following is TRUE of uniform real estate taxation in Virginia? A) tax rates and assessments must be uniformly applied to similar properties B) all properties pay the same amount of tax C) only the tax rate needs to be uniform D) uniformity is a common law principle

A

Who or what is paid first from a sale at foreclosure? A) the expenses of executing the trust, including 5% commission to the trustee B) all taxes, levies and assessments with costs and interest, if they have priority over the deed of trust C) any remaining debts and obligations secured by the deed of trust D) the foreclosed mortgagor

A

According to Real Estate Settlement Agents (RESA) law, the selection of a settlement agent is made by A) the seller B) the buyer C) either the buyer or the seller D) either the buyer's or the seller's agent

B

Acting as a limited service agent is allowed as long as the written brokerage agreement includes all of the following EXCEPT A) licensee is acting as a limited service agent B) licensee may also serve as an independent contractor C) a list of specific services to be provided D) a lit of specific duties of a standard agent that will not be provided

B

All of the following are specific statutory duties owed to a seller or buyer client EXCEPT A) to perform the terms of the brokerage agreement B) to always be obedient to the clients demands C) to maintain confidentiality forever D) to promote the best interests of the client

B

All of the following statements with regard to the Qualified Residential Mortgage (QRM) are true EXCEPT A) the QRM is now aligned with the Qualified Mortgage standard implemented in 2014 B) the QRM requires a down payment of 20% of the sales price C) a QRM loan is qualified if the borrowers debt-to-income ratio is not more than 43% D) the lender is no longer required to retain 5% of the loan amount

B

As of July 1, 2012, property management agreements must include all of the following EXCEPT A) be in writing B) have a suggested termination date of one year C) state the amount of management fees D) state the services to be rendered

B

Basic VHDA services include all of the following EXCEPT A) administration of the federal section 8 rent subsidy program B) administration of the Virginia Residential Landlord and Tenant Act C) Virginia housing fund loans D) administration of some functions of the Virginia Housing Partnership Fund

B

Contracts for the initial purchase of a cooperative interest may be rescinded without penalty how many days after either contract ratification or receipt of the POS? A) 5 days B) 10 days C) 14 days D) 21 days

B

Exemptions to the Virginia Residential Property Disclosure Act provisions include all of the following EXCEPT A) transfers pursuant to a foreclosure sale. B) transfers made without the assistance of a licensed real estate broker. C) transfers made between spouses resulting from a divorce D) transfers involving the first sale of a dwelling.

B

Exemptions to the provisions of the National Do Not Call Registry include all if the following EXCEPT A) clients and customers for a period of 18 months from last transaction. B) within 18 months of a consumer inquiry. C) charitable organizations. D) political organizations.

B

Fannie Mae and Freddie Mac were independent agencies referred to as government-sponsored enterprises (GSEs). In 2008, they were both placed under the regulation of A) the FHA B) the FHFA C) congress D) the HUD

B

How soon after filing the lien must the mechanic enforce it by filing suit? A) within three months B) within 6 months C) within 9 months D) within one year

B

The CIC was established to regulate CO managers by means of A) an established fee structure B) licensure C) annual testing D) written procedures

B

The REB may assess each active and inactive licensee a proportionate amount whenever the Transaction Recovery Fund falls below a minimum balance of A) $20 per licensee B) $400,000 C) $1 million D) $2 million

B

The Virginia real estate transaction recovery fund is administered by: A) the board for professional and occupational regulation B) the REB C) the CIC board D) the VAC

B

The responsibility for preparing the note and deed of trust involved in a closing belongs to A) the sellers broker B) the lender C) the buyer D) the settlement attorney

B

When the owners interest in a time share includes either a freehold interest or an estate for years, it is what type? A) time share use B) time share estate C) time share fee D) time share demise

B

Which of the following statement regarding a short sale is TRUE? A) a short sale is one that goes to settlement in less than two weeks B) a short sale is one where the lender agrees to accept less than the full amount due C) a short sale is a non-conforming conventional loan D) a short sale always results in a tax liability for the seller

B

"Agent" is now clearly defined as a real estate licensee who is acting as any of the following EXCEPT A) a standard agent B) a limited service agent C) an independent contractor (non agency) D) an agent in a commercial real estate transaction

C

A home worker warranty is MOST similar to A) a home inspection contingency B) insurable title C) a builder warranty D) a walk-through inspection

C

A lis pendens notice must declare all of the following EXCEPT A) the amount of the claim B) the description of the property C) the name of the prospective purchaser D) the name of the person whose estate is affected

C

A man recently visited a brand new time share project on the eastern shore. If he decides to make an offer on the property, how long will he have to cancel the contract without penalty? A) none, he is bound to the contract B) 3 calendar days after ratification of contract C) 7 calendar days after ratification of contract D) 10 calendar days after ratification of contract

C

A military couple has decided they no longer wish to purchase the town house that they currently have under contract. The town house is covered by the POA act. The couple can cancel their contract A) whenever they wish B) within 10 days after ratification of contract C) within 3 days after receiving the POA disclosure packet D) within 14 days after receiving the property disclosure packet

C

Do marketable title and insurance title mean virtually the same thing? A) head they are synonymous B) yes, if it marketable, it is insurance C) no, insurable titles lists exceptions for which it will not insure D) no, insurable title is the same as equitable title

C

FHA and VA loans are classified as A) conventional conforming loans B) conventional nonconforming loans C) government loans D) specialized loans

C

How long after the work is done May a mechanic wait before filing a mechanics lien? A) no more than 30 days B) no more than 60 days C) no more than 90 days D) no more than 6 months

C

If a purchaser does NOT receive the proper property disclosures prior to contract ratification, the contract may be terminate A) within three days of occupancy. B) within five days of settlement. C) prior to settlement D) prior to loan application with no right of contract termination

C

In 2016 both the condominium act and the POA act were amended with regard to the rental of units. Changes effective July 1st 2016 include all of the following EXCEPT A) prohibits association from prohibiting the rental of a unit B) prohibits associations from evicting tenants C) prohibits associations from requiring the names of the tenants D) prohibits associations from demanding a copy of the lease

C

Routine services that do NOT involve a licensee's experience or discretion are called A) transactional acts B) routine brokerage C) ministerial acts D) customer service

C

The REB (Real Estate Board) rules and regulations are found in: A) the code of virginia B) the virginia constitution C) the Virginia Administrative Code (VAC) D) the general assembly minutes

C

The REB is authorized to do all of the following EXCEPT: A) license brokers and salespersons B) develop criteria for evaluating and approving continuing education courses C) regulate the property owners association act D) enforce provisions of the Virginia Fair Housing Law

C

The Virginia Real Estate Transaction Recovery Fund was created to A) protect consumers from unscrupulous settlement attorneys B) provide funding for the Virginia Housing Development Authority (VHDA) C) reimburse consumers who suffer monetary loss due to a licensees misconduct D) establish a fund for research and education of licensees

C

The disclosure of lead based paint and lead based hazards is required on all A) sales contracts B) residential sale contracts C) residential contracts for properties constructed before 1978 D) residential contracts for sale to purchasers with small children

C

The office of the Common Interest Community Ombudsman was established to do all of the following except A) assist members to understand their rights B) provide information and answer inquires from members C) officiate in making adverse decisions D) provide information to the director for an annual report

C

The phrase "physical condition of the property" only would refer to A) a gas station on the corner B) the empty field behind the house C) defective drywall in the house D) plans for widening the street

C

The seller is expected to pay which of the following? A) recordation tax for recording the deed B) recordation tax for recording of the deed of trust C) grantor tax of $0.50 per $500 of purchase price D) transfer fee for each document admitted to record

C

When a licensee acts as an independent contractor and NOT as a standard agent, the relationship is governed by A) the common law of agency B) a standard Virginia REB contractor agreement C) a written agreement between licensee and client D) a buyer agency agreement

C

When borrowers sign a note and deed of trust, they are giving the lender the right to A) request a court hearing within 30 days of default B) set the time and place of court hearing C) initiate a nonjudicial foreclosure D) Initiate a judicial foreclosure

C

Which of the following does NOT constitute the exercise of eminent domain by the process of condemnation? A) a county taking a farmers cropland for a highway B) the state taking private woodland for the construction of a roadside visitor center C) a county zoning ordinance change D) port authority of Hampton Roads taking riparian rights for a pier

C

Which of the following liens would have first priority? A) deed of trust B) mechanics lien C) property tax lien D) landlords lien

C

A deed contains the following description: "lots 7 and 8, block F, section 3, plat of Greydon, otherwise called 14 Havers drive, Venus, Virginia." in fact, block F has only six lots and the street address is lot 5. Is this deed valid? A) no, a false element in a description invalidates the deed B) no, because the lot description is faulty, a new deed is needed C) yes, it's valid if the buyer knows which property is meant D) yes, enough correct information remains to permit identification

D

A deed of trust can be foreclosed on in Virginia in any of the ways listed EXCEPT A) decree of court (strict foreclosure) B) deed in lieu of foreclosure C) sale by a trustee under the power of sale D) bankruptcy

D

A prospective buyer Cala the listing agent about a home she is interested in. She tells him that she has a signed buyer agency agreement with another licensee, but he is out of town and she would like the listing agent to show her the home. When should the listing agent have her sign an agency disclosure form? A) immediately over the phone B) when he shows her the listing C) after she signs a new buyer agency agreement with him D) never, none will be needed

D

A prospective buyer calls a licensee and spends 20 minutes talking about her real estate needs. They agree to meet and go for a drive to look at neighborhoods but never discuss or visit any specific property. The licensee should have her sign a disclosure of a brokerage relationship form A) when she gets in the car B) when she arrives at the office C) before she leaves the car D) never, no written disclosure is required yet because no specific assistance was given

D

A single family house is located near the end of a block right next to a bakery shop. How must these properties be treated for real estate tax purposes? A) there can be no difference between them B) they will be classified differently, according to use C) the bakery will not be subject to taxation because it is for public use D) because the bakery abuts a residential zone, it must be treated as a residence

D

All of the following are satisfactory legal descriptions in Virginia EXCEPT A) "lot 7, block D, play of red valley, Martin county, Virginia" B) "the entire 77.5 acres purchased by Edna Kelly on June 20, 1991, and called seaside neck, Roanoke" C) "727 ocean drive, fletcherton, Virginia" D) "proceeding 120 feet due west of the intersection of the east line of J street and the north line of 11th street to a point; thence north 10 degrees 31 minutes west 100 feet"

D

All of the following items could be excluded from an augmented estate except A) a condominium owned by the deceased spouse B) a small farm willed to the deceased by his grandmother C) a beach property sold with the spouses consent D) a 52-foot sailboat purchased during the marriage

D

An heir was to have inherited real property under his uncles will. However, the uncle sold the property shortly before he died. The heir now wants to have the sale rescinded on grounds of the uncles incompetence. Will the heir win? A) yes, any such pleading by a close relative will prevail in court B) yes, the grantor would have had to prove competence in court during his lifetime C) no, a deed can be invalidated due to incompetence only during the grantors lifetime D) no, a person is presumed competent unless a court has ruled otherwise

D

Broker A is representing a buyer in the purchase of a town house listed with broker B. Broker A has a signed exclusive right-to-represent contract with the buyer. He will need to have a disclosure of brokerage relationship form signed by A) the buyer B) the sellers of the town house C) both the buyer and the sellers of the town house D) no one because the sellers have their own agent

D

Changes made to agency law in 2016 regarding licensees engaged in commercial real estate include A) commercial agents are no longer defined as standard or limited service agents B) the disclosure of brokerage relationship form is no longer required in commercial transactions C) the disclosure form for dual agency or representation is still required in a commercial transaction D) all of these

D

Salespersons M and T are licensees who are both affiliated with the same realty firm. M has listed a house, and T has a likely buyer. What is the BEST option for the supervising broker? A) the broker should do nothing because neither salesperson wishes to act as disclosed dual agents B) the broker should insist that one of the salespersons sign a disclosed dual agency agreement with the buyers and the sellers C) the broker may assign the salespersons as designated agents, providing a disclosure form to the sellers only D) the broker may assign the two salespersons as designated agents and provide a disclosure form to be signed by both the sellers and the prospective buyers

D

The Common Interest Community (CIC) Board regulates all of the following EXCEPT A) the condominium act B) the real estate time share act C) the real estate cooperative act D) the residential property disclosure act

D

The sellers of a property have already moved to another state where they are living in an assisted living home and are not healthy enough to travel. Their best choice for a power of attorney to attend settlement on their behalf would be A) their listing agent B) the selling agent C) the listing broker D) the sellers brother who is an attorney

D

The survey for a property shows the location of the house, the garage, the fence, utility lines, and the children's playhouse in the backyard. This is MOST likely which type of survey? A) subdivision play B) boundary survey C) house location survey D) as-built survey

D

The term "broker" may refer to all of the following EXCEPT A) a brokerage firm B) a sole proprietor transacting real estate business C) a managing broker for s branch office D) a principal in a brokerage relationship

D

Which of the following is TRUE regarding Virginia's community property laws? A) since 2001, the Virginia statue is patterned after California's stature B) Virginia only recognizes some community property provisions C) augmented estates are the same as community property provisions D) Virginia is not a community property state

D

Which of the following statements with regard to FHA MIPs is NOT true A) FHA MIPS are subject to frequent changes B) as of January 1, 2017, the upfront MIP is 1.75% of the loan amount C) the upfront MIP is amortized over the live of the loan D) the annual MIP is amortized over the life of the loan

D

Which of the statements concerning the homestead exemption is TRUE? A) exemption is automatic; every homeowner has one B) the homeowners filing for homestead exemption indicates financial difficulties C) the homestead exemption is protection against claims for taxes, mechanics liens, and deeds of trust against the property D) the family bible, wedding rings, and burial plots are in addition to the $5,000

D

A brokerage relationship can be terminated by any of the following EXCEPT A) one party unilaterally firing the other B) expiration of the agreement C) a default by either party D) a licensee's withdrawal when the client refuses to consent to dual agency

A

A lender wishes to use the services of only licensed surveyors and says he will NOT accept the surveys of unlicensed or nonexempt surveyors. Is this practice legal? A) yes, a lender may require the services of either licensed or exempt surveyors, but the lender cannot require that a particular surgery or conduct the survey B) yes, as long as the lender always uses the same surveyor conduct the survey C) no, surveyors are selected by the clerks office D) yes, the lender can require that a particular surveyor conduct the survey

A

A recently retired woman has a ratified contact to purchase a two bedroom condominium unit. She is now suffering from buyers remorse and wishes to back out of the contract. She has not yet received the condominium documents. After hand delivery of the documents, she will have how many days to cancel the contract? A) 3 days B) 5 days C) 7 days D) 10 days

A

A seller offers a broker a listing agreement that contains the following clause: "Seller must receive amount of $60,000 firn the sale of this property. Seller agrees that the selling agent will receive, as his or her total compensation, any proceeds that remain beyond that amount after satisfaction of seller's mortgage loan and any closing costs incurred by the seller." Based on these facts, the broker A) must decline this listing agreement because the clause violates REB regulations B) must decline this listing agreement because it is not the standard form used in Virginia C) may accept this listing agreement because the clause is standard in an open listing. D) may accept this listing agreement because it specifically limits the amount of the compensation.

A

All of the following types of real property are exempt from real property taxation EXCEPT A) a for-profit cemetery B) government-owned land C) land owned by nonprofit educational institutions D) land owned by a totally disabled veteran

A

An individual wants to sell her own house. Which of the following statements is TRUE? A) she does not need a real estate license to sell her own property B) in Virginia, anyone who sells real property must have a real estate license C) an individual may obtain a temporary real estate license in order to legally sell her own house D) she may only sell her own house without a real estate license if she is an attorney

A

Based on the Virginia mechanics lien disclosure act, disclosure of the possibility for a mechanics lien must be made A) as part of the sales contract exactly as written in the act B) as an addendum to the contract C) any time before settlement D) within three days after ratification of the contract

A

Both the condominium act and the POA act have a set limit on the amount that may be charged for preparation of the required document packet of A) $163.97 for two hard copies B) up to $325 C) actual cost of copying D) any amount they choose

A

If a condominium unit owner fails to pay the homeowners associations assessment against his unit, the association may A) place a lien against the unit B) garnish the owners wages C) do nothing l, as a stockholder, the unit owner has priority D) revoke the units owners privileges and rights

A

In Virginia, the owner of property on the date of sale is A) the buyer B) the seller C) the buyer and seller, divided evenly D) either, depending on negotiation

A

In addition to providing loans for affordable housing, VHDA also builds and operates all of the following EXCEPT A) schools B) nursing care facilities C) nursing homes providing medial facilities for the elderly D) residential housing for the elderly

A

The CFPB was created to A) protect the financial interest of the consumer B) regulate the FHA C) oversee Fannie Mae and Freddie Mac D) administer the Virginia Housing Trust Fund

A

The seller in a transaction was called out of town on business the day before the closing. Any affidavits or sworn statements the seller is required to deliver at the closing must be signed by A) the seller B) the sellers attorney in fact C) The buyers attorney in fact D) the sellers real estate agent

A

A sales contract contains all of the following information EXCEPT the A) type of sewage system B) amount of the down payment C) age of the parties to the contract D) possession date

C

All of the following are entitled to prevail on a claim of title by adverse possession EXCEPT A) a person who has been in the possession of the property for 19 years B) a person who held the property for 5 years after inheriting it from a parent, who was in adverse possession for 10 years C) a person who has been entering an orchard and taking apples every October for 15 years D) a person who has erected a stall on and has been using a neighbors property to sell produce for 20 years without permission

C

All of the following are exempt from the state licensing requirements EXCEPT A) a person acting without compensation as attorney in fact B) an attorney involved in real estate transaction in his normal role as attorney C) an officer of a firm who actively participates in brokerage business D) a licensed auctioneer selling real estate at a public auction

C

All of the following are required disclosure forms that must be included with a sales contract EXCEPT A) brokerage relationship B) property disclosure C) home inspection disclosure D) lead based paint disclosure

C

All of the following are statutory contingencies required by law EXCEPT A) review of the condominium resale packet B) review of the POA disclosure packet C) well and septic system inspection D) review of property disclosure

C

All of the following are true of an easement by necessity EXCEPT A) it must be an appurtenant easement B) both the dominant and the service the estates must have at some time in the past been owned by the same person C) inconvenience is a basis for the easement D) the only reasonable means of access is over the servient estate

C

All of the following statements with regard to a will are true EXCEPT A) no person under the age of 18 years is considered to be capable of making a valid will B) no will is valid unless it is in writing C) handwritten wills are never valid D) poor health is not sufficient to render a will invalid

C

An actual contract used for the purchase and sale of real property A) must on a form approved by the REB B) must be drafted by an attorney licensed to practice in the commonwealth of Virginia C) may take any form D) does not need enough detail to clearly state the agreement between the parties

C

As of July 1, 2011, a full list of seller representations is provided to a purchaser by A) the listing agent. B) the seller. C) the REB website. D) the buyer agent

C

By Virginia statuary definition, a salesperson may perform all of the following functions EXCEPT A) order a residence for sale B) negotiate an exchange C) serve as managing broker D) lease rental apartments

C