Chapter Twelve Pt. 2

Paying a finder's fee to an unlicensed person

A salesperson would be subject to disciplinary action by the Real Estate Board for which of the following actions?

Suspension of his license and a fine, A fine only, Revocation of his license and a fine

A violation of the Virginia License Law may subject a broker to:

3 years

Brokers must retain records of real estate transactions for at least:

The seller must be informed of any such payment, prior to signing the listing agreement

Gene, an independent broker, lists a property. Susan, also an independent broker, sells the property. Gene agrees to split the commission with Susan, but neither one advises the seller or the buyer of their agreement. According to Virginia regulations:

Administrative Process Act

Hearings before the Virginia Real Estate Board must be held in accordance with the:

Such actions could be viewed as creative selling, which does not violate License Law or Board regulations

In an attempt to obtain listings, a broker authorizes her licensees to offer incentives to any person who lists property with her firm. Which of the following statements is correct?

A written complaint and Its own initiative, without any written complaint

The Board may investigate a complaint based on:

Seller and broker

When a salesperson takes a listing, the commission amount is determined by the:

Failing to inform the seller of the ethnic character of a buyer

Which of the following actions is NOT a violation of Virginia real estate laws and regulations?

Illegal

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:

Her employing broker

A real estate salesperson will receive her share of the brokerage fee from which person?

Advertises a listing at lower than listed price

A real estate salesperson's license may be revoked if the licensee:

Raising the price on a contract in order to influence a lender, Giving a false address in order to obtain a license, Encouraging a homeowner to sell since minorities are moving into the neighborhood

A salesperson could have his license suspended or revoked for which of the following reasons?

She is entitled to a hearing before the Board can take disciplinary action, unless the law provides otherwise

A salesperson is charged with a violation of the License Law. Which of the following statements is true?

Under no circumstances

According to Virginia License Law and the regulations of the Board, a salesperson may accept a net listing:

Fraud

Allison is a broker who knowingly stated an false material fact. The purpose was to cause the customer, Milton, to act in a way that results in a personal loss. Allison is guilty of:

Immediately present the offer

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?

Is common and completely legal

An owner lists property with a broker. The owner specifies how much she wants to receive from the sales proceeds, then allows the broker to propose a selling price. This type of agreement:

Keep records for a period of three years

Every real estate office in Virginia is required to:

Grounds for suspension or revocation of a license

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:

Send a copy of the charges to the salesperson's broker at the broker's place of business

If a salesperson is accused of violating License Law, the Real Estate Board will:

Imposing a fine of $5,000 for each violation

If a salesperson is in violation of Virginia License Law or regulations, the Board may discipline the salesperson by doing any of the following actions, EXCEPT:

Investigate to determine whether a violation might have been committed

If the Board receives a written complaint about a licensee's actions, what does the Board always do?

Review the complaint to determine if there is a possible violation of License Law or Board regulations

If the Board receives a written complaint about a licensee, what is the first thing they will do?

Made available for inspection by the representatives of the Real Estate Board

In accordance with Real Estate Board Regulations, all records of transactions and closings maintained by a broker must be:

People from Hungary are moving into the neighborhood

It is a violation of Virginia License Law to induce another person into selling their property by representing that:

21 days

Licensees must respond to Board inquiries within:

That he cannot accept the listing

Owner Chaney tells Broker Fowler that she will list her property if he guarantees that she will receive $38,500 cash once the sale is complete and all expenses have been paid. Fowler may have anything over that amount as commission. Broker Fowler should tell Owner Chaney:

Boren must work through his broker

Owner Kelly is leaving the area for a one year period. She asks Salesperson Boren to manage her rental home for $45 per month while she is gone. In this situation, which of the following statements is true?

Neither Cindy nor her broker may accept this listing

Rainy Yeng has been transferred out of the area on an extended work assignment. She plans to rent her condominium in that time period, and asks Salesperson Cindy to handle the rental. Rainy tells Cindy that she wants $500 per month for the rental and Cindy may have any amount over $500. May Cindy accept this rental listing?

Endorse the check over to Bob

Salesperson Brenda is affiliated with Broker Bob, who has a listing with Seller Alex. Salesperson Brenda receives a check from Seller Alex after finding a buyer to purchase the home. If Brenda wants to keep the money and NOT violate VA License Law, she could:

Illegal, because Ellen can only accept money from her broker

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:

Endorse the check and give it to his employing broker

Salesperson Lynch receives a referral check from an out-of-town broker, Kirks, for sending him a prospective buyer. What is the first thing Lynch should do?

Bait and switch

Sarah Smith sees an ad from Broker Mark for a custom built home with mountain views, hardwood floors, a theatre room, and a professional kitchen. She goes to the address and finds that the listed property is actually a motor home. Mark is guilty of:

Is in violation of the VA License Law

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:

The Board, using money from its operating budget

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 may take disciplinary action

The Board determines that a licensee misrepresented information on her license application. In this situation, which of the following statements is true?

If the licensee admits guilt or After conducting a hearing

The Board may take disciplinary action against a licensee:

Impose a criminal penalty

The Real Estate Board has power to take all of the following actions, EXCEPT:

At any time

The Real Estate Board may investigate the activities of a salesperson:

Protect the public interest

The purpose of Virginia License Law and the Rules and Regulations is to:

An investigation will be conducted unless the law specifically provides otherwise

When a salesperson is alleged to have violated the License Law, which of the following statements is true?

The broker and the seller

A broker is a member of the local MLS service. Commission rates charged by members of the MLS are established by:

Net listing

A broker may NOT accept which of the following listings?

Improper dealing

A broker placed one of her signs on property without permission from the owner. The broker is guilty of:

His or her broker

A licensed real estate salesperson may receive money to manage real property from:

This is a violation of Virginia License Law

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?

Yes, because Billy failed to present the offer to Suzy

Billy the Broker represents Suzy Seller in an effort to sell her home. Bob the Buyer makes an offer that is $20,000 below what Suzy is asking. Knowing that Suzy would reject such a low offer, Billy tells Bob to "forget it." Has Billy violated the VA License Law?

Bob has violated the Board regulations

Bob, an associate broker, sold a property. Several weeks after closing, the seller sent him $250 and a thank you note for a job well done. Bob accepted the check since he worked hard and felt the bonus was deserved. In the situation described, which of the following statement is true?

No, security deposits are held for tenants in an escrow account and are not part of the operating funds

Broker Foster manages an apartment building for Owner Smith. Foster used the security deposits of two tenants (Petri and Gonzales) for general maintenance on the apartment building. Was this action permissible?