State and National
Jen is selling her vacation home to Bob and they both agree to close on May 20th at noon. The closing date is written into the sales contract and so are the words "time is of the essence". It's 12:35 pm on May 20th and Jen finally arrives at closing. What trouble has Jen caused?
Jen is in breach of contract
Which of the following names MUST appear in any advertisement for real estate?
Listing broker
Three people own a piece of property as tenants-in-common. Two of the owners want to sell the property, but the third party does not. The two owners that want to sell:
May file suit for partition
The ad fails to disclose that the owner is a licensee
Military status
A property sold for $168,000. There was an existing 1st trust in the amount of $75,000. The seller paid 6% commission and $2,100 in closing costs. What were the seller's net proceeds from the sale of his property?
None of the above
The relationship that generally exists between a salesperson and a seller is a:
None of the above
What is the difference between an easement and a deed restriction?
One controls the use and the other controls the access
John is holding an open house. On the day of the showing, he places several directional signs throughout the neighborhood. Placement of directional signs is illegal if:
Placed on private property without permission of the owner
Which of the following does the Sherman Act seek to prevent?
Price fixing, boycotting and monopolies
Which relationship is most likely a general agency relationship?
Property owner and property manager
The transfer of title from the government to an individual is called a(n):
Public grant
Salesperson Cook places a newspaper ad on a piece of property that she owns. The ad reads, "3 bedroom, 2 bath, rambler; below market; good location; call 555-3421." This ad is in violation of the Real Estate Board Regulations because:
The ad fails to disclose that the owner is a licensee
A broker accepts a listing from a seller. In the agreement, the seller stipulates that the broker shall list the property on two different MLS directories. The broker only lists the property on one, but receives three offers within the first week. Under these circumstances, which of the following statements is correct?
The broker has violated his fiduciary responsibility
If a broker has an exclusive right-to-sell listing, which of the following statements is INCORRECT?
The broker is legally obligated to sell the property
At the end of April Margaret listed her home to sell. On May 15th Margaret accepted an offer from Kathy to buy her home and Margaret and Kathy signed a sales contract with the stipulation to close on June 15th. On June 10th Margaret passed away. What happens to the sales contract?
The contract remains valid and Margaret's estate/next of kin must complete the sale with Kathy
Under the statute of frauds, an oral listing is:
Valid
Bill hires Larry to sell his home. Bill prefers to communicate with Larry via email. One night, Larry replies to one of Bill's emails, but includes none of the required disclosures. Has Larry violated the rules?
Yes, because the rules require specified disclosures in emails
Which of the following advertisements may contain a link to a required disclosure?
a firm web page B. an email from a broker to a prospective client C. a posting on an Internet bulletin board by a broker regarding real estate services
The parties to a purchase agreement include:
seller and buyer
Regarding disclosures, which of the following are agents required to follow?
state laws and Common Law Duty
Wilma is a salesperson with Broker Fred. Wilma arranges for a listing with a seller. When Fred accepts the listing, a contract and agency relationship are created. What is the relationship between Wilma and the seller?
subagent
What is the covenant in a deed where the grantor guarantees that no one has any interest in the property that will disturb the grantee's possession?
the covenant of quiet enjoyment
RESPA does not apply to which of the following?
the sale of residential property with 100% seller assisted financing
Property management agreements usually represent which type of agency?
general agency
Ben and Becky purchased a home for $250,000. They have an LTV of 80%. How much of a down payment did Ben and Becky make?
$50,000
A lease is a(n):
Contract
Which of the following is not a reason for a lease termination?
Estoppel
Former personal property that automatically conveys:
Is a fixture
A real estate advertisement is placed in a publication with primarily Asian subscribers. This advertisement:
violates nothing
Who may access the National Registry?
All of the above
The Fair Housing Act does not apply to:
Commercial property
Susan and Sally enter into a buyer-broker agreement. However, Sally subsequently falls on hard times. Susan gets nervous and terminates the agreement. Is Susan in breach?
No, if Sally filed for bankruptcy
Which appraisal approach is best suited to appraising vacant land?
market data
Which of the following is a real estate contract?
option, lease, listing
Murphy is going to buy 2 parcels of land. One piece of land contains 3.5 acres and a second is 0.5 square miles in area. If the price is $2,000 per acre, what would Murphy have to pay for both parcels?
$647,000
Murphy is going to buy 2 parcels of land. One piece of land contains 3.5 acres and a second is one-half a square mile in area. If the price is $2,000 per acre, what would Murphy have to pay for both parcels?
$647,000
A person thinks that a landlord discriminated against him when applying for a rental. Three months later, he decides to file a complaint with HUD. How much longer does the person have to file his complaint?
9 months
An option on real property is:
A contract
A broker lists a property. A buyer submits a written offer and the seller accepts it. On the date scheduled for closing, the seller refuses to sign any of the papers. The broker is entitled to:
A full commission because he fully performed
A special agency empowers the agent to perform:
A specific act
Hearings before the Virginia Real Estate Board must be held in accordance with the:
Administrative Process Act
Which is most accurate about an agent's responsibility regarding advertising?
Agents must ensure all advertising for their listing is truthful and not misleading in any way
A condensed history of the title to specific real estate including all documentation regarding transfers, conveyances, encumbrances and other recorded information affecting the property is known as:
An abstract of title
What loan has constant payments, where increasing amounts are credited to the principal and decreasing amounts are charged for interest?
An amortized loan
Which of the following loans would NOT be subject to RESPA?
An assumption without lender approval
Which person would require a license, issued by the Real Estate Board?
An employee of a broker, who negotiates leases
S&Ls primarily make:
Conventional loans
A buyer-broker agreement may arise by all of the following means, except:
Custom
The intent of the Virginia Fair Housing Law is to:
Eliminate housing discrimination by virtue of the state's police powers
Broker Sarah takes a listing from a seller, who later tells her that the house should not be shown to any minorities. The broker should:
Explain that she cannot comply because this violates federal law
Which of the following deeds creates the most liability for a seller?
General warranty deed
If a broker acts for more than one party in a real estate transaction without the full knowledge and consent of all parties, it is:
Grounds for suspension or revocation of a license
A real estate broker pays $50 to an insurance broker for every referral that goes to closing. The insurance broker pays $50 to the real estate broker for every referral that buys insurance. This arrangement between the two is:
Illegal
The Virginia Real Estate Board has the power to take all of the following actions, EXCEPT:
Impose a penalty of up to one year in prison
Under the Virginia Residential Property Disclosure Act, licensees must:
Inform all clients and customers of their rights and obligations under the Act
Sarah the Salesperson sold a property for Owner Fred. Fred thought Sarah did such a good job, he sent her a $500 bonus. If Sarah keeps the $500, she:
Is in violation of the VA License Law
With the permission of his broker, a salesperson is representing a buyer. The salesperson goes to a showing for a listed property and properly advises the listing broker that he is representing the buyer. This situation:
Is legal because proper disclosure has been made
McKay Realty just placed a billboard advertisement near the entrance to the town which happens to be near an Army base. The billboard ad is for new single family homes showing a price range of $130,000 to $160,000 and pictures of several people in Army uniforms standing in the doorways of a new homes. Is this a legal advertisement?
No, the ad is not legal because it indicates a preference for Army buyers
Rebecca hired Garcia to help her with the sale of her home, which closed a month ago and all went well. Garcia would like to call Rebecca to check in with her and see if she had any follow up questions about the property. Is Garcia in violation of the Do-Not Call registry if he makes the call to Rebecca who is listed on the registry?
No, their pre-existing relationship allows Garcia to call Rebecca
Buyer-broker agreements could be:
Oral, executory, unassignable
It is a violation of Virginia License Law to induce another person into selling their property by representing that:
People from Hungary are moving into the neighborhood
Similar to a graduated lease, which other type of lease also allows for the rent to be adjusted periodically?
Revaluation lease
Which authority regulates trust (escrow) accounts?
State Laws
Which of the following statements is NOT true about a title search?
The title searcher goes back at least 100 years
Which of the following statements is NOT true regarding points charged on a loan?
They are based on the selling price
Salesperson Ben and Salesperson Gina, both licensed real estate agents, are brother and sister. Gina gets in a pinch with a personal appointment and can't show her clients a property at the time they specified. Gina asks Ben to show the property for her and she will split part of her commission with him if the deal closes. Is this a good arrangement?
This is not a good arrangement and would violate license law
A buyer fails to take possession of his property and fails to record his deed. The original seller fraudulently sells the same property to a second buyer who has no knowledge of the prior sale. The second buyer records and/or takes possession of the property. The court may recognize the second buyer as the true owner. What is this legal principle called?
Title by estoppel
According to Virginia License Law and the regulations of the Board, a salesperson may accept a net listing:
Under no circumstances
Virginia real estate law replaces portions of the common law of agency (National portion of real estate law). Where the two are in conflict, which prevails/controls?
Virginia law prevails if there is a conflict
Listing agreements should be specific about their exact terms. Under what conditions may the listing be altered?
With the knowledge and written consent of the owner
Ben and Barry enter into a valid sales contract, which specifies that the trash compactor will be in working order. Ben signs a disclaimer/waiver about the property, which states that he is selling "as is" and gives no opinion on the condition of specified systems. When Barry takes possession of the house, the trash compactor is not operational. Does Barry have a cause of action against Ben?
Yes, because Ben is in breach
Betty the buyer would like to purchase property being sold by Sam the seller. Betty sees that the house has been on the market for a few months and that the listing is about to expire. Betty makes an offer to Sam the day after the listing expires in order to deal directly with Sam and avoid paying commission fees. Will Sam's agent have any right to a commission since the listing is expired?
Yes, if the listing agreement contained a protection clause
Broker Barry places a buyer's deposit of $1500 in the escrow account then a week later takes $500 back out of the account for himself knowing his commission on this sale will be at least that and he knows he'll get the rest of his commission for this sale on the settlement date in 3 weeks. Has Broker Barry done anything wrong?
Yes, this is conversion and against license law
What should a broker do when representing the buyer in a transaction?
advise the buyer that the list price for the home is unrealistic
What is the maximum amount that can be paid from the Transaction Recovery Fund for claims against a licensee during a two year period?
$100,000
A restrictive covenant would most likely be enforced by:
A judge
A prospective buyer asks the listing broker if the seller will accept 10% less than the listed price. How should the broker respond?
Advise the buyer to put his offer in writing
Kim has a listing agreement with Agent Garcia. Agent Garcia and Kim draft the listing on Thursday and, in accordance with Kim's wishes, they plan to publicly advertise the listing on Monday after Kim returns from an out of town trip. Agent Garcia knows the weekend is the best for selling Real Estate and decides to add Kim's listing to the MLS on Saturday morning. Is Agent Garcia ok to do so?
Agent Garcia has violated license law
A Virginia licensee may represent clients as which of the following?
All of the above
Which of the following statements is true about real estate advertising?
All of the above
The funds for originating VA loans are usually provided by:
Approved lenders
The VREB regulations require that complete records of real estate transactions:
Be furnished to the Board upon request
Broker Bill with XYZ Realty sells a property that was listed by Gene, an independent broker. In this transaction, what is the relationship between Bill and Gene?
Bill is the agent; Gene is the principal
Regarding leased property, which of the following are examples of involuntary alienation?
Both A and B
Jack the Broker sends an email to Mike. The email describes the real estate services Jack provides and encourages Mike to call for more details. Jack makes the required disclosures in the middle of his email, in bold lettering. Jack's email:
Complies with the regulations
Other than performing in accordance with the brokerage agreement, promoting the seller's interests and complying with the law, what duties do agents owe seller clients?
Confidentiality B. Accounting C. Disclosure of material facts
All of the following have a "Limited Capacity" to contract EXCEPT?
Insane (with a court declaration)
Morgan hasn't paid her property taxes for the last two years and when she goes to sell her house she is informed there is a lien on her property, what type of lien is this?
Involuntary tax lien
Nelda, a new agent, has just previewed a property that her broker was asked to list. After viewing the property, the seller told Nelda about the following: a rip in the upstairs carpet; a shed in the wooded backyard that belongs to a neighbor, but is partially built on the seller's property; a hole in the wall in the master closet; and a crack in the kitchen counter. Which fact(s) must Nelda disclose to interested buyers?
She must disclose the encroaching shed
A broker has been approached by a minority buyer, who requests to see properties in a specific section of a city. The broker refuses to show these properties. Instead, the broker indicates that he would be better off in a location with a greater concentration of his particular minority group. The broker's illegal conduct is known as:
Steering
What type of property is one where an event has occurred, such as murder, suicide or haunting, that does not effect the physical condition of the property and in which the event is not a required disclosure?
Stigmatized property
The Board believes that a broker is not properly managing her escrow account. Upon request, the court appoints a receiver to manage the account. After investigation, the Board finds that the broker is innocent of any wrong doing. Who is responsible for the expenses and fees of the court-appointed receiver?
The Board, using money from its operating budget
The homeowner's association sent Jeffrey a fine after painting his front door purple, which is not an acceptable house/trim color in the HOA regulations. Jeffrey appeals this in court since he believes that neighbors have no right to decide whether he can paint his front door. If the court upholds the HOA's fine, it is most likely because:
The HOA has the authority to dictate door colors and to fine him for noncompliance
Under certain circumstances, the Board may grant reciprocity to a person who is licensed in another state. Through reciprocity, what is true of a broker licensed in another state?
The Real Estate Board may waive all or part of the pre-licensing requirements
Which of the following is NOT true of land value, under the cost approach to valuation?
The estimate is performed as if the land were occupied
When a metes and bounds survey is used to describe property, the word "metes" refers to:
The length in inches, feet, or yards of a property line
Which of the following principles of value would a real estate salesperson consider first when preparing to do a CMA?
The principle of highest and best use
A postal employee has a friend, Berry, who is a real estate salesperson. Every once in a while, she gives Berry information about people leaving the area so he can contact them as potential clients. When this information leads to a sale, Berry pays her $100 for the tip. Which of the following statements is true?
This is a violation of Virginia License Law