VA State Practice Exam 2

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? A. $10,000 B. $20,000 C. $50,000 D. $100,000

$100,000

When a broker establishes an account to hold money belonging to others, which of the following statements 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 as either "Trust" or "Escrow" C. The money cannot be held in the same bank as the broker's operating account D. An individual account is required for each transaction

.All checks, deposit slips, and bank statements must include the word "Escrow" as part of the account name

Brokers must retain records of real estate transactions for at least: A. 2 years B. 3 years C. 4 years D. 5 years

3 years

A party defaults during the executory period of a valid real estate contract. As a condition of the contract, the broker must hold any funds in his possession until: A. The seller advises the broker that the contract has been breached B. The lending institution has advised the broker that the loan application was rejected C. The attorney for the non-defaulting party orders a release of the funds D. A court of competent jurisdiction orders disbursement

A court of competent jurisdiction orders disbursement

A prospective buyer asks the listing broker if the seller will accept 10% less than the listed price. How should the broker respond? A. Tell the buyer that the seller is firm and will not negotiate the price B. Advise the buyer to put his offer in writing C. Refer the buyer to a cooperating broker in order to avoid a dual agency situation D. Advise the buyer that a 90% offer is not acceptable, but he should instead offer 95%

Advise the buyer to put his offer in writing

According to the Virginia Landlord-Tenant Act, a landlord's right to access rented property is NOT restricted in which of the following circumstances? A. Abandonment B. Frozen water pipes C. Emergency situations D. All of the above

All of the above

In Virginia, what action is prohibited in an advertisement for real estate? A. Failing to get a client's written consent to advertise his property B. Failing to identify the type of services offered in a general property description C. Advertising that a property listed by a firm is for sale by owner D. All of the above

All of the above

Which of the following statements is true about real estate advertising? A. It must be supervised by the principal or supervising broker B. It must be in the name of the firm C. The firm's licensed name must be clearly and legibly displayed D. All of the above

All of the above

If a payment is made on a broker's behalf from the Transaction Recovery Fund, what action does the Board take? 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

What is required in order to be eligible for a Virginia salesperson's license? A. Complete an 18 credit hour course in the principles of real estate B. Be at least 18 years old C. Attend at least 3 seminars conducted by the Board D. Be a resident of Virginia

Be at least 18 years old

A salesperson contacts a neighborhood FSBO about listing the house with her firm. When is agency disclosure required? A. At the first meeting between the FSBO and the agent B. Before the FSBO agrees to list his house with the agent C. When the agent presents the first offer from a prospective buyer D. Never since disclosure is only required to buyers, not sellers

Before the FSBO agrees to list his house with the agent

Broker Adam is encouraging you to sell since your new neighbors will be Catholics. He says that once they move in, crime will increase and property values will tumble. Your broker is guilty of: A. Redlining B. Steering C. Blockbusting D. Puffery

Blockbusting

Two individuals want to form a real estate partnership in Virginia. Which of the following statements is NOT true? A. The person who is active on the brokerage side of the business must have a broker's license B. Both partners must have a broker's license C. One of the partners may be unlicensed D. A license must be obtained from the Real Estate Board for the partnership

Both partners must have a broker's license

The principal broker must keep all of the following records at the main firm office, EXCEPT: A. Firm license B. Branch license C. Principal broker's license D. Salesperson licenses

Branch license

Angela operated her own brokerage firm until she unexpectedly passed away. The Board appoints her son, Adam, to operate the business for 180 days. During this period, Adam: A. Will be issued a temporary license by the Board B. Can only conclude the transactions in the process to facilitate the termination of the business C. May take new listings and find buyers for any listings on the books D. Must find a licensed broker to run the business

Can only conclude the transactions in the process to facilitate the termination of the business

Licensees with an inactive license must: A. Apply for active status within 3 years B. Do nothing, as the license automatically renews every 2 years C. Retake their pre-license education and pass a licensing exam D. Either A or C

Either A or C

The intent of the Virginia Fair Housing Law is to: A. Eliminate housing discrimination by virtue of the state's police powers B. Prevent federal involvement in matters occurring within the state C. Allow for the development of minority-specific housing D. Increase revenue by imposing a monetary penalty on people who violate the law

Eliminate housing discrimination by virtue of the state's police powers

Brenda the Salesperson is employed by Broker Bob. She receives a check from Alex as a "thank you" for the excellent job she did in finding a buyer. In this instance, Brenda should: A. Cash the check, because it was a tough sale and she earned the money B. Endorse the check and give it to Bob C. Put the check in her escrow account D. Cash the check, but inform Bob

Endorse the check and give it to Bob

A real estate salesperson will receive her share of the brokerage fee from which person? A. Either buyer or seller, based on their agreement B. The attorney conducting the closing C. Her employing broker D. The listing broker

Her employing broker

A contract cannot be consummated due to a disagreement between buyer and seller. The broker still has the earnest money deposit in his escrow account. The seller demands that the deposit be given to him, but the buyer demands that the deposit be returned to her. What can the broker legally do? A. Immediately return the funds to the buyer B. Immediately give the funds to the seller C. Retain the funds as his commission D. Hold the funds until ordered by the court to disburse

Hold the funds until ordered by the court to disburse

Salesperson Ellen shows many different properties to her clients over the course of several weeks. In the end, these clients decide to stay where they are and to quit looking for a home. They give Ellen $500 as compensation for all of her hard work. Ellen deposits the money into her personal checking account. Such action is: A. Legal, if Ellen maintains a record of the transaction B. Illegal, because Ellen can only accept money from her broker C. Legal, if Ellen performed as agreed D. Illegal, unless properly disclosed

Illegal, because Ellen can only accept money from her broker

An offer is written for a property late Friday night, but the salesperson is getting ready to leave town for the weekend. What should the salesperson do? A. Immediately present the offer B. Tell the buyer it will have to wait until Monday C. Tell the seller that there is an offer, but it will have to wait until Monday to be presented D. Ask another salesperson in the office to present the offer

Immediately present the offer

Which of the following statements is true about a branch office? A. To facilitate supervision, it must be located within a reasonable distance from the main office B. It may be supervised by a salesperson with 3 years experience C. It must be supervised by an on-premises principal or associate broker D. A broker may mange two separate offices if they are within three miles of one another

It must be supervised by an on-premises principal or associate broker

Kerra the Consumer has filed a claim for payment from the Transaction Recovery Fund. Which of the following statements must be incorrect? 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

Every Virginia resident who is also licensed as a broker MUST: A. Maintain an office in the state of Virginia B. Maintain an escrow account at an insured depository in the state C. Identify his place of business with an appropriate sign D. All of the above

Maintain an office in the state of Virginia

A licensee was out of town on personal business. When she returned on January 6, she realized that her license had expired on December 31. What must the licensee do if she wants to remain licensed? A. Re-apply for her new license as a new applicant B. Meet the current educational requirements C. Meet the current educational requirements and pay the renewal fee D. Apply to have her license placed on inactive status

Meet the current educational requirements and pay the renewal fee

A broker may NOT accept which of the following listings? A. Open listing B. General listing C. Net listing D. Neither B nor C

Net listing

The Virginia Property Disclosure Act applies to all of the following transactions, except: A. Property sales B. Property options C. Installment sales D. New home construction

New home construction

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? A. Larry, the developer B. Darrell, the contractor C. Tony, the mortgage banker D. No one

No one

Which person must have a license issued by the Real Estate Board? A. A person acting without compensation under power-of-attorney B. A person acting as a trustee in bankruptcy C. A tenant who refers a prospective tenant to the landlord D. None of the above

None of the above

Which of the following contracts provides instructions for the distribution of escrow money? A. Deed B. Mortgage C. Sales contract D. Listing contract

Sales contract

All of the following statements about time-share interests are true, EXCEPT: A. When a time-share is resold, the buyer has 5 days to rescind the contract B. The Association is required to provide a resale certificate to the buyer C. The Association may charge $100 for the resale certificate and related documents D. Once a buyer has closed a time-share contract, all rescission rights are waived

The Association may charge $100 for the resale certificate and related documents

If a person wants to make a claim from the Transaction Recovery Fund, where should this claim be filed? 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

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: A. The ad fails to include the property address B. The ad fails to disclose that the owner is a licensee C. The ad makes false or misleading statements D. The ad does not include the price

The ad fails to disclose that the owner is a licensee

If the Board has authorized payment from the Transaction Recovery Fund, what is the effect for the licensee who committed the misconduct? 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

When a condominium is sold by a person other than the declarant, the seller must provide the buyer with certain information. Which of the following statements is INCORRECT about these disclosures? A. The seller must provide a copy of the condominium by-laws and CCRs B. The buyer shall receive a copy of a financial statement for the most current fiscal year and a projected estimate of capital expenditures for the next two years C. The unit owners' association can charge the seller a maximum of $50 for the preparation of these documents D. The association must certify that any improvements made to the condominium unit and common elements do not violate local zoning ordinances

The unit owners' association can charge the seller a maximum of $50 for the preparation of these documents

A salesperson works for a broker that has listed a really nice property. He purchases the subject property one day after the exclusive right-to-sell agreement expires. Which of the following statements is true? A. This is proper, provided the salesperson reveals his license status and relationship with the broker B. This is proper, provided the seller does not find out about the salesperson's license status C. This is improper unless the salesperson obtains his broker's approval D. This is improper because it is prohibited by law

This is proper, provided the salesperson reveals his license status and relationship with the broker

A real estate license is not required for a: A. Trustee acting under a court order B. Person selling a vacant lot for a fee C. Person selling industrial real estate full-time D. Person selling houses on a part-time basis

Trustee acting under a court order

A prospective buyer enters a broker's office and is escorted into the conference room. After the broker has financially qualified the buyer, they begin to review available properties that meet the buyer's wants, needs, and financial limitations. When is the broker required to disclose the agency relationship? A. When determining the financial qualifications of the buyer B. When the buyer expresses an interest in a particular piece of property C. When the buyer has identified a property that is acceptable D. Before the broker and buyer begin to discuss any specific property

When the buyer expresses an interest in a particular piece of property

A person feels that his rights have been violated according to the Virginia Fair Housing Law. If he wants to file a formal complaint, it must be filed: A. Within 90 days of the alleged act B. Within 2 years of the alleged act C. Only against a licensed salesperson or broker D. Only with the Department of Housing and Urban Development (HUD)

Within 2 years of the alleged act