Virginia Exam (Practise)

funds may be held privately

All of the following statements regarding the first-time homebuyers savings accounts allowed in Virginia are true EXCEPT a. account holders may contribute up to $50,000. b. principal and interest up to $150,000 may be withdrawn without paying state taxes. c. funds must be used for real estate transaction costs listed on the Settlement Statement (HUD-1). d. funds may be held privately.

correction deed

A mistake in the legal description may require the seller to provide the purchaser with a a. chain of title search. b. correction deed. c. title examination. d. title insurance.

make full disclosure of his ownership interest in the title company

A settlement attorney has a 10% ownership of a title insurance company. If this company is to provide title insurance for a property where the settlement attorney is handling the closing, he will be obligated to a. excuse himself from the case. b. do nothing, as there is no conflict of interest. c. make full disclosure of his ownership interest in the title company. d. hire another attorney to handle the closing.

in none of these

A triple murder was committed on a property six months ago. Virginia law requires that disclosure of this fact be made a. in the MLS listing. b. prior to writing an offer to purchase. c. three days prior to settlement. d. in none of these.

successfully complete the educational requirements

A woman has always wanted to become a real estate licensee and join the brokerage firm where her father is the principal broker. The first step for the woman is to a. successfully complete the educational requirements. b. obtain approval from the REB to take the required examination. c. pay the required $60.50 fee. d. take and pass the required examination administered by the PSI testing service.

A large crack has appeared in the wall over the fireplace

After making a walk-through inspection two days before closing on the property, the purchasers prepared a list of items that they thought should be covered under the terms of the contract. Which of the following is NOT considered a walk-through item? a. The air-conditioner does not lower temperature below 82 degrees. b. The dishwasher does not work. c. The guest bathroom toilet does not flush. d. A large crack has appeared in the wall over the fireplace.

an easement for power lines extends through the property

All of the following conditions may be a red flag that there is a potential problem that should be brought to the attention of the settlement attorney EXCEPT a. the adjoining neighbor's driveway extends two feet onto the subject property. b. the property boundaries shown on the survey are not in conformance with the recorded subdivision plat. c. the back fence to the property extends into the adjoining yard. d. an easement for power lines extends through the property.

a property owners' association disclosure

All of the following disclosures are required by Virginia law to be included in every sales contract EXCEPT a. a property owners' association disclosure. b. a disclosure of brokerage relationship. c. a residential property disclosure. d. a lead-based paint hazard disclosure for properties built before 1978.

promote the best interests of the client

Virginia agency law lists seven statutory duties to be performed by all licensees. The only one of these duties that allows for some variation is in the duty to a. perform according to the terms of the brokerage relationship. b. promote the best interests of the client. c. maintain confidentiality of all personal and financial information. d. exercise ordinary care.

eight

Effective January 1, 2014, a new single-track post-license course of 30 hours is required of all new licensees, to be completed in the first year of licensure. The number of hours for Real Estate Law and Regulations is a. two. b. four. c. six. d. eight.

80% of the units must be occupied by at least one person 55 years of age of older

In September 2012, the FHA made changes to the regulations regarding approval of condominium projects in an effort to make it less difficult to obtain FHA financing for condominium units. The changes include all of the following EXCEPT a. a single investor may own up to 50% of the total units. b. mixed-use developments may be a combination of commercial, residential, retail, office, and parking. c. no more than 15% of units may be in arrears (more than 60 days past due). d. 80% of the units must be occupied by at least one person 55 years of age of older.

use of the property occurred with the knowledge and acquiescence of the landowner

In order for a Virginia court to determine that an easement by prescription should be granted, it will have to be proven that a. use of the property occurred with the knowledge and acquiescence of the landowner. b. use of the property occurred without the true owner's permission. c. use of the property has occurred for at least 15 years. d. tacking has not been permitted.

the broker's personal representative

Legislation in 2014 established the priority for who would assume the responsibility for running a brokerage firm upon the death or disability of the principal broker. The first order of priority for the person designated by the broker to run the firm is a. the broker's personal representative. b. the person holding power-of-attorney. c. the broker's executor. d. an adult family member.

recordation tax of $375

A married couple is purchasing a home in Sussex County, Virginia. The Settlement Statement (HUD-1) shows a recordation tax of $375 and a grantor tax of $150. The couple will be expected to pay the a. recordation tax of $375. b. recordation tax of $375 plus the grantor tax of $150. c. grantor tax of $150. d. grantor tax of $150 plus additional recordation fees.

prepare an addendum making the request to be signed by the sellers

A buyer decides that she would like to have a shed in the back yard removed. Her original offer to purchase was accepted on October 1 and it is now October 15. She will need to have her buyer agent a. call the sellers and make their request. b. make the change in the original contract and have it initialed. c. prepare an addendum making the request to be signed by the sellers. d. prepare an amendment to the original contract to be signed by the sellers.

sentence the defendant to up to five years in jail

A fair housing violation case was forwarded to the attorney general. The court may now do any of the following EXCEPT a. award preventive relief to the complainant. b. assess a penalty of up to $50,000 on the defendant if this is a first violation. c. sentence the defendant to up to five years in jail. d. award the prevailing party reasonable attorney's fees and costs.

certify that the licensee's current firm has been notified

A licensee wants to transfer her license from her current firm to a new firm. Under the 2013 streamlined transfer process, the licensee's new broker must do all of the following EXCEPT a. certify that the licensee's current firm has been notified. b. affirm that the licensee's license is active. c. agree to assume supervisory responsibility for the licensee effective the day of transfer application. d. affirm that the licensee is of good character and is competent to practice real estate.

he wife should sign the contract to avoid any future problems regarding spousal interest

A man owned a property before he married his wife. The married couple lived in the house for two years and are now in the process of selling it. Which of the following statements regarding the wife's signature on the sales contract is TRUE? a. The wife is not an owner, so her signature is prohibited. b. The wife is required by law to sign the sales contract. c. The wife should sign the contract to avoid any future problems regarding spousal interest. d. The wife will need to sign a quitclaim deed releasing her interest in the property.

obtain an official FBI record, the original state police record, and copies of all court papers related to the conviction, along with a written account of the part he played in the offense

A man was convicted of a misdemeanor involving distribution of marijuana when he was 19 years old. He now wishes to apply for a real estate license in Virginia. He must a. obtain an official FBI record, the original state police record, and copies of all court papers related to the conviction, along with a written account of the part he played in the offense. b. wait to take the pre-licensing course until receiving REB approval. c. pay an additional licensing fee to the REB. d. do none of these; no one convicted of a misdemeanor may obtain a license.

tenants by the entirety

A married couple is purchasing their first home in Fairfax County, Virginia. They will probably want to take title as a. joint tenants. b. tenants in common. c. tenants by the entirety. d. tenants in partnership.

find the party guilty of a Class 6 felony

If after investigation, the Real Estate Board (REB) finds someone has engaged in acts of real estate brokerage without a license, it can take all of the following actions EXCEPT a. issue a cease and desist order. b. impose a civil penalty of $1,000 for each transaction. c. refer the case to the commonwealth attorney for further action. d. find the party guilty of a Class 6 felony.

a request from either client or broker

Ideally, all brokerage relationships end with a successful transaction that goes to settlement. Other legal ways for termination of the relationship include all of the following EXCEPT a. mutual agreement by all parties. b. a default by either party. c. a request from either client or broker. d. a licensee's withdrawal if a client refuses to consent to disclosed dual agency.

two rental properties plus a principal residence

The 2014 Virginia General Assembly changed the "trigger number" that determines if a landlord is subject to the Virginia Residential Landlord Tenant Act (VRLTA) to a. two owned properties. b. two rental properties plus a principal residence. c. four rental properties in an urban area. d. 10 rental properties in an urban area.

the entry lobby of real estate office

The Americans with Disabilities Act (ADA) applies to a. all residential rental properties. b. the entry lobby of real estate office. c. rental units in a condominium. d. all apartments in a senior-living project.

dower and curtesy rights

The Augmented Estate and Elective Share Act includes the law of descent and distribution, which is similar to the earlier law regarding a. eminent domain. b. dower and curtesy rights. c. homestead exemption. d. adverse possession.

Real Estate Settlement Agents

The Code of Virginia provides that the choice of settlement agent is strictly up to the purchaser or borrower according to the chapter entitled a. Law of Descent and Distribution. b. Consumer Real Estate Protection Act. c. Real Estate Settlement Agents. d. Virginia Agency Law.

regulating Fannie Mae and Freddie Mac

The Consumer Financial Protection Bureau (CFPB) has been actively involved in all of the following EXCEPT a. issuing new rules for mortgage servicers. b. establishing guidelines for the qualified residential mortgage (QRM). c. regulating Fannie Mae and Freddie Mac. d. integrating the RESPA and TILA disclosure forms.

the seller

The Virginia Mechanics' Lien Disclosure Act requires that specific language be included in all sales contracts as a caution that an effective mechanic's lien could be filed against the property. This law was enacted to protect all of the following EXCEPT a. the purchaser. b. the seller. c. brokers involved in the transaction. d. title agents and insurers.

independent contractor

The types of agency relationship that are recognized under Virginia agency law include all of the following EXCEPT a. standard agent. b. limited service agent. c. independent contractor. d. designated agent.

the property management agreement be in writing and have a definite termination date

The duties required of a licensee engaged to manage real estate are essentially the same of those required of a licensee representing a buyer or a seller. The law now requires that a. all material facts concerning the property are disclosed. b. licensees maintain confidentiality of information. c. all monies and properties received are properly account for. d. the property management agreement be in writing and have a definite termination date.

hoarding

The most recent type of activity to be named as a mental disability is that of a. use of methamphetamine. b. hoarding. c. gender identity. d. reliance on a service animal.

manufacture of methamphetamine on the property

The newest category of required disclosure of physical factors with regard to a rental property is a. lead-based paint. b. radon. c. defective drywall. d. manufacture of methamphetamine on the property.

nonjudicial foreclosure

The owners of a home located in Richmond, Virginia have defaulted on their loan. Their lender instructs the trustee named in the deed of trust to proceed with foreclosure proceedings. This is a a. judicial foreclosure. b. nonjudicial foreclosure. c. strict foreclosure. d. power of sale.

HARP made refinancing available to homeowners regardless of hardship conditions

The primary difference between the two financing programs Home Affordable Modification Program (HAMP) and Home Affordable Refinance Program (HARP) is that a. one is a government program and the other is not. b. not all lenders are willing to participate in HARP. c. HARP made refinancing available to homeowners regardless of hardship conditions. d. HAMP is primarily a refinancing program.

ensure that clients are made aware of the risks involved in dual agency

The primary purpose for creating the new Disclosure of Dual Agency or Dual Representation form was to a. encourage the use of dual agency. b. encourage the use of designated agency. c. ensure that clients are made aware of the risks involved in dual agency. d. make it easier to withdraw from dual agency.

Real Estate Board

When a prospective tenant's application was rejected, she decided to file a fair housing complaint against both the seller and the seller's agent, alleging discrimination based on national origin. This complaint should be brought to the a. Fair Housing Board. b. Real Estate Board. c. Both the Fair Housing and the Real Estate Board. d. Civil Court.

$150,000 owed on a mortgage loan

Which of the following debts has priority over the Virginia homestead exemption? a. $6,428 owed on a credit card b. $150,000 owed on a mortgage loan c. $3,000 owed to check-cashing service (non-secured) d. $10,000 owed on a promissory note to a relative.

A man who owns two rental properties in addition to his personal residence

Which of the following landlords are subject to the provisions of the Virginia Residential Landlord Tenant Act (VRLTA)? a. A member of the United States armed forces who rents his own home for two years while he is deployed overseas b. A man who owns two rental properties in addition to his personal residence c. A woman who owns two homes: her residence and one rental property d. A real estate brokerage, which rents out its former branch office.

All of these

Which of the following properties is exempt from Virginia taxation? a. A residence provided for a Presbyterian minister b. The City of Richmond public library c. The residence of a 100% disabled veteran d. All of these.

The homeowner warranty provides protection for a period of 10 years

Which of the following statements regarding a homeowner warranty is FALSE? a. A homeowner warranty may be purchased by either the seller or the buyer. b. The homeowner warranty allows for repair or replacement of covered items. c. The homeowner warranty provides protection for a period of 10 years. d. No inspection is required to obtain a homeowner warranty.