Practice Test Virginia Principles of Real Estate Law

When a salesperson terminates affiliation with a broker, what it is the salesperson required to do?

Nothing

When a person wants to file a claim for payment from the Virginia Real Estate Transaction Recovery Fund, where is the claim filed?

The Real Estate Board

Which of the following is true regarding a branch office of a Virginia real estate firm?

The office must have a separate license

Once a listing agreement is obtained from a seller and is accepted by the broker, an agency relationship is created between...

The seller and the broker

The broker must return to the Board any licensee in all of the following situations except

A licensee refuses to hold an open house

When a salesperson is alleged to have violated the license law which could result in disciplinary action, which of the following statements is true?

An investigation will be conducted unless the law specifically provides otherwise.

To become licensed in VA it is necessary to take a pass an examination. Which of the following could become licensed and not be required to take an examination?

Any person who is currently licensed in another jurisdiction and meets all requirements for reciprocity.

Board regulations require that complete records of real estate transactions...

Are subject to audit by Board investigators

A licensee contacts a homeowner in an attempt to obtain a listing for the property. When must agency disclosure be provided to the homeowner?

At the time the homeowner agrees to the list the property

The minimum balance of the Virginia Real Estate Transaction recovery Fund is

$400,000

When a real estate license has expired how long does the licensee have to reinstate the license, without monetary penalty?

30 days

Persons appointed to the Real Estate Board, serve for

4 years and may serve for one additional 4 year term

A licensee who is actively engaged in real estate brokerage works at least

40 hours a week

The statute of Virginia mandates the number of people on the Real Estate Board. Currently the Board consists of:

9 members; 7 licensees and 2 citizens

The requirement that funds be held in an escrow account does not apply to which of the following?

A commission received from and out-of-state broker

Two brokers are involved in a dispute over a commission split. Which of the following could become involved in the settlement of their dispute?

A court having jurisdiction over the brokers

A nonresident who obtains a license as an active salesperson in VA is required to

Activate with a Virginia licensed broker

Ed, a licensed salesperson, moved to a new home. What is Ed required to do?

Advise the Board in writing within 30 calendar days of the change

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...

All of the principals to the contract agree to the intended distribution

General requirements for licensure as either salesperson or broker include which of the following?

An applicant must be at least 18 years of age

A licensee was out of town of personal business. When she returned on July 5 she realized that her license had expired on May 31. What is required if the licensee wants to remain licensed.

Apply for a reinstatement and pay a reinstatement fee

A licensee whose license has been on the inactive status for more than three years will have to do which of the following in order to activate the license?

Apply for a relicensurc as a new applicant

A property was sold by Bob, a licensed associate broker. Several weeks after closing, the seller sent Bob $500 and a thank you note for a job well done. Bob accepted the check because he had worked hard on the sale and felt the bonus was well deserved. In this situation described, which of the following is true?

Bob has violated Board Regulations

When Lori passed her license examination she placed her license on inactive status. Two years later she decides to activate her license with a local firm. Lori needs to...

Complete an activate form and pay a fee.

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 the agreement. The amount of the payment is never disclosed to either buyer or seller. According to VA regulations...

Disclosure of this information is not required.

A real estate licensee could be suspended without investigation if the licensee

Does not pay the Transaction Recovery Fund assessment

When are real estate licenses renewed?

Every 2 years on the last day of the month in which they were issued

Jerald has been licensed as a broker, in VA, since 1980. Which of the following statements in incorrect?

He is exempt from CE requirements by virtue of "grandfather" clause associated with that regulation.

A licensed real estate salesperson may receive money or other valuable consideration for services rendered in connection with property management from

His or Her employing broker

Under what circumstances could a broker pay a "finder's fee" to an insurance broker?

If the insurance broker is also licensed as a real estate broker.

Virginia real estate offices are required, by regulations, to

Keep records for a period of three years

Lisa is a licensed salesperson and selling her own townhouse. She advertises her townhouse as a FSBO as follows: "Beautiful, 3 bedroom townhouse. Excellent assumption. Single females only. Call 123-4567 for details. Owner is licensed." Which of the following is NOT true?

Lisa, acting as the owner of the property is exempt from Virginia Fair Housing Laws.

When the Board issues an active license, the license...

Must be made available to the public at the brokers main place of business

Mike, a broker, has decided to open a 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. What is true of Peter and the partnership?

Peter may not engage in acts of brokerage, the partnership must have a separate license, issued by the Board, Peter may be the senior partner but not the principal broker

The purpose of the Virginia real estate license law and Board related rules and regulations is to

Protect the public interest

If the board receives a written complaint regarding the actions of a regulate, what is the first thing the board will do?

Review the complaint for possible violation

Sally decides to transfer from ABC Realty to XYZ Realty. What must Sally do to affect the transfer of her license?

Submit, to the Board, a transfer application, signed by the principal or supervising broker of XYZ Realty.

Which of the following would be a violation of the Virginia Fair Housing Law?

Taking listing with the intent to change the racial make-up of the neighborhood

The Board feels a broker is not properly managing her escrow account. Upon request, the court appoints a receiver to manage the account. After the investigation, it is determined that the broker is innocent of any wrongdoing. Who is responsible for the expenses and fees of the court appointed receiver?

The Board, using money from its operating budget

A broker manages three properties for the same owner. One property is in need of emergency repairs, but the owner does not have enough money in the management account to cover the cost. The broker uses excess funds from the account for the emergency then replaces funds later with a check from the owner. Which of the following is true?

The broker is in violation of regulations for improperly handling escrow funds.

When a broker places a "For Sale" sign on property, what must appear on the sign?

The firms license name

An unlicensed investor plans to open a real estate brokerage business. The business will be operated as a sole proprietorship. Which of the following is true?

The investor must hire a broker to manage the business.

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 can not exceed

Two months rent

A licensed salesperson can be licensed with more than one Virginia broker under which of the following circumstances?

Under NO circumstances

If a broker opens a branch office in VA, which of the following is true?

Upon proper application, the Board will issue a license with the branch

A broker may be licensed with more than one Virginia brokerage firm or sole proprietorship under which of the following circumstances?

With the written permission of the principal brokers represented.

Joe is a licensed sales agent with XYZ Realty Corp. Joe is working with a customer interested in leasing property owned by XYZ. Is Joe required to disclose his relationship with XYZ to his customer?

Yes, Joe must disclose his license status and relationship with XYZ.

Which of the following persons may NOT obtain a real estate license in VA?

a 17 year old college graduate who majored in real estate

The objective of the Virginia Fair Housing Law is

protect and ensure the welfare of the general public

Which of the following is true when there is a possible violation of the Virginia Fair Housing Law

the burden of proof is on the complainant