Final exam part 7

A man recently visited a brand-new time-share project on the Eastern Shore. If he decides to make an offer on the property, how long will he have to cancel the contract without penalty? A) 10 calendar days after ratification of contract B) 7 calendar days after ratification of contract C) 3 calendar days after ratification of contract D) None; he is bound to the contract

B) 7 calendar days after ratification of contract

Which of the following is a hazardous substance that can be quickly absorbed by the body? A) Asbestos B) Carbon monoxide C) Lead D) Radon

B) Carbon monoxide

Which federal organization is responsible for identifying flood areas? A) U.S. Fish and Wildlife Service B) Federal Emergency Management Agency (FEMA) C) Department of Housing and Urban Development (HUD) D) Environmental Protection Agency (EPA)

B) Federal Emergency Management Agency (FEMA)

What is provided by the Brownfields Law? A) Funding to protect groundwater B) Funding to clean up abandoned industrial sites C) Funding to manage underground storage tanks D) Funding to install radon mitigation systems

B) Funding to clean up abandoned industrial sites

Which of the following is FALSE about asbestos? A) Its removal can cause further contamination of a building. B) HUD requires that all residential buildings be tested for asbestos-containing materials. C) It is most dangerous when airborne. D) It was commonly used as insulation.

B) HUD requires that all residential buildings be tested for asbestos-containing materials.

Which of the following is TRUE regarding asbestos? A) HUD requires that all asbestos-containing materials be removed from all residential buildings. B) Improper removal of asbestos can cause further contamination of a building. C) The level of asbestos in a building is affected by weather conditions. D) Asbestos causes health problems only when it is eaten.

B) Improper removal of asbestos can cause further contamination of a building.

Which of the following is NOT exempt under Virginia Fair Housing Law? A) Single-sex occupancy of a state-supported nursing home B) Owner-occupied four-unit building advertising as "singles only" C) Presbyterian Home for the Aged D) Single-family residence rented by an owner who owns no more than three homes

B) Owner-occupied four-unit building advertising as "singles only"

The flame-resistant chemical compounds that were often used in electrical equipment, such as transformers, are known as A) UFFIs. B) PCBs. C) carbon monoxide derivatives. D) friable asbestos.

B) PCBs.

Which of the following statements is FALSE regarding taxes on new construction? A) Taxes are prorated based on the previous year's taxes. B) Taxes are estimated based on comparable values for the area. C) Taxes are estimated from the date of the certificate of occupancy. D) The first year taxes may be artificially low.

B) Taxes are estimated based on comparable values for the area.

When the owner's interest in a time-share includes either a freehold interest or an estate for years, it is what type? A) Time-share fee B) Time-share estate C) Time-share use D) Time-share demise

B) Time-share estate

Upon the death or disability of a licensed real estate broker who was engaged in a proprietorship or was the only licensed broker in a corporation or partnership, the first choice of the REB for a person to carry on the business of the deceased or disabled broker for 180 days is A) the executor nominated in the deceased broker's will. B) a personal representative qualified by the court to administer the deceased broker's estate. C) an agent designated under a power of attorney of the deceased or disabled broker. D) an adult family member of the disabled or deceased broker.

B) a personal representative qualified by the court to administer the deceased broker's estate.

When a licensee acts as an independent contractor and NOT as a standard agent, the relationship is governed by A) a standard Virginia REB contractor agreement. B) a written agreement between licensee and client. C) the common law of agency. D) a buyer agency agreement.

B) a written agreement between licensee and client.

The new rules for mortgage servicers established by the CFPB include all of the following EXCEPT A) promptly credit mortgage payments. B) allow a six month's moratorium for delinquent loans. C) work with the borrower before starting foreclosure proceedings. D) provide two month's warning for any rate increase.

B) allow a six month's moratorium for delinquent loans.

A federally funded project requires A) an environmental site assessment. B) an environmental impact statement. C) a brownfield study. D) a lead-based paint audit.

B) an environmental impact statement.

The parties to a real estate transaction should be aware that many older tanks have never been registered A) but are always visible. B) and may not comply with federal and state laws. C) and when discovered must always be registered. D) but are always capable of being located.

B) and may not comply with federal and state laws.

If a potentially responsible party (PRP) refuses to pay the expenses of cleaning up a toxic site, the EPA may A) have no legal recourse. B) bring a civil action and be awarded three times the actual cost of the cleanup. C) bring an administrative action and be awarded the actual cost of the cleanup, plus court costs. D) bring a criminal action and have the PRP jailed for up to 10 years.

B) bring a civil action and be awarded three times the actual cost of the cleanup.

The CFPB was created to A) administer the Virginia Housing Trust Fund. B) protect the financial interests of the consumer. C) oversee Fannie Mae and Freddie Mac. D) regulate the FHA.

B) protect the financial interests of the consumer.

Tombs buried deep underground contain materials such as A) wastewater. B) radioactive waste. C) used electronics. D) plastic and other non-biodegradable items.

B) radioactive waste.

The disclosure of lead-based paint and lead-based paint hazards is required on all A) residential contracts for properties constructed before 1978. B) residential contracts for sale to purchasers with small children. C) sales contracts. D) residential sale contracts.

B) residential contracts for sale to purchasers with small children.

The Common Interest Community (CIC) Board regulates all of the following EXCEPT A) the Condominium Act. B) the Residential Property Disclosure Act. C) the Real Estate Time-Share Act. D) the Real Estate Cooperative Act.

B) the Residential Property Disclosure Act.

Contracts for the initial purchase of a cooperative interest may be rescinded without penalty how many days after either contract ratification or receipt of the POS? A) 14 days B) 5 days C) 10 days D) 21 days

C) 10 days

At least how much of a tank must be underground for it to be considered an underground storage tank? A) 25% B) 35% C) 10% D) 15%

C) 10%

Investigations of fair housing complaints should be completed within A) 30 days. B) 60 days. C) 100 days. D) 1 year.

C) 100 days.

The owner of an apartment complex that has fallen into disrepair decides to repair and renovate the buildings and convert them to condominiums. The number of days' notice required to terminate the tenants' month-to-month leases is A) 30 days. B) 60 days. C) 120 days. D) 90 days.

C) 120 days.

The EPA requires that water suppliers report any situation that poses a public health risk within how many hours of its discovery? A) 12 hours B) 48 hours C) 24 hours D) 36 hours

C) 24 hours

Which of these is responsible for administering the Superfund? A) PRP B) CERCLA C) EPA D) HUD

C) EPA

Which of the following is a protected class under the Virginia Fair Housing Law? A) Age B) Source of income C) Familial status D) Marital status

C) Familial status

Why is mold a serious environmental problem in buildings? A) It produces spores that can spoil food. B) It causes stains and a fuzzy growth on walls. C) It destroys material it grows on and causes health problems for occupants. D) It has an unpleasant odor.

C) It destroys material it grows on and causes health problems for occupants.

Which of the following is TRUE of uniform real estate taxation in Virginia? A) All properties pay the same amount of tax. B) Only the tax rate needs to be uniform. C) Tax rates and assessments must be uniformly applied to similar properties. D) Uniformity is a common law principle.

C) Tax rates and assessments must be uniformly applied to similar properties.

Who or what is paid first from a sale at foreclosure? A) The foreclosed mortgagor B) All taxes, levies, and assessments with costs and interest, if they have priority over the deed of trust C) The expenses of executing the trust, including 5% commission to the trustee D) Any remaining debts and obligations secured by the deed of trust

C) The expenses of executing the trust, including 5% commission to the trustee

A tenant decides to install a burglar alarm in a rented house. Does the tenant need to inform the landlord? A) No, the tenant has full right of possession during the lease. B) Yes, the tenant must inform the landlord, but the cost of the system may be deducted from the rent. C) Yes, the tenant must also give the landlord instructions and passwords. D) No, only tenants in multiunit apartment buildings must inform a landlord about a security system.

C) Yes, the tenant must also give the landlord instructions and passwords.

A hole lined with clay or a synthetic liner to prevent leakage of waste material into the water supply describes A) a UST. B) a hazardous waste site. C) a landfill. D) a brownfield.

C) a landfill.

All of the following are true about lead-based paint EXCEPT A) it is most dangerous when ingested. B) renovation by a contractor of a residence that has lead-based paint requires education and certification. C) all residential buildings must be tested for lead-based paint. D) it was commonly used in residences before 1978.

C) all residential buildings must be tested for lead-based paint.

Nontoxic, nonflammable chemicals used as refrigerants and in aerosol sprays that can create a problem when their vapors rise to the upper atmosphere are called A) radon. B) polychlorinated biphenyls. C) chlorofluorocarbons. D) volatile organic compounds..

C) chlorofluorocarbons.

Lead is commonly found in all of these EXCEPT A) soldered water pipes. B) soil around industrial sites. C) insulating material. D) alkyd oil-based paint.

C) insulating material.

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) was created in 1980 and established A) the Clean Water Act. B) the Brownfields Act. C) the Superfund. D) the Clean Lands Fund.

C) the Superfund.

The Real Estate Board (REB) rules and regulations are found in A) the Virginia Constitution. B) the Code of Virginia. C) the Virginia Administrative Code (VAC). D) the general assembly minutes.

C) the Virginia Administrative Code (VAC).

According to Real Estate Settlement Agents (RESA) law, the selection of a settlement agent is made by A) the seller. B) either the buyer's or the seller's agent. C) the buyer. D) either the buyer or the seller.

C) the buyer.

A lis pendens notice must declare all of the following EXCEPT A) the amount of the claim. B) the description of the property. C) the name of prospective purchaser. D) the name of the person whose estate is affected.

C) the name of prospective purchaser.

When a salesperson is alleged to have violated the license law, which of the following statements is TRUE? A) The salesperson is entitled to a jury trial before any action can be taken. B) The employing broker also is charged with the same violation. C) The salesperson's license will be temporarily suspended until the REB can schedule a formal hearing. D) An investigation will be conducted by the DPOR.

D) An investigation will be conducted by the DPOR.

Which of the following is FALSE regarding underground storage tanks? A) Some states have adopted laws that are even more stringent than the federal laws. B) A contingency requiring inspection or removal of any underground storage tanks by the seller before closing could save the purchaser from a great deal of later expense for detection, removal, and cleanup of surrounding contaminated soil. C) State and federal laws impose strict requirements on landowners whose property contains underground storage tanks. D) EPA regulations apply to tanks that contain hazardous substances or liquid petroleum products that store at least 25% of their volume underground.

D) EPA regulations apply to tanks that contain hazardous substances or liquid petroleum products that store at least 25% of their volume underground.

All of the following statements with regard to a will are true EXCEPT A) Poor health is not sufficient to render a will invalid. B) No will is valid unless it is in writing. C) No person under the age of 18 years is considered to be capable of making a valid will. D) Handwritten wills are never valid.

D) Handwritten wills are never valid.

Do marketable title and insurable title mean virtually the same thing? A) No, insurable title is the same as equitable title. B) Yes, they are synonymous. C) Yes, if it is marketable, it is insurable. D) No, insurable title lists exceptions for which it will not insure.

D) No, insurable title lists exceptions for which it will not insure.

The current real estate regulations went into effect A) July 1, 2015. B) October 3, 2015. C) January 1, 2015. D) November 1, 2015.

D) November 1, 2015.

Which of the following statements concerning the homestead exemption is TRUE? A) The homeowner's filing for homestead exemption indicates financial difficulties. B) The homestead exemption is protection against claims for taxes, mechanics' liens, and deeds of trust against the property. C) Exemption is automatic; every homeowner has one. D) The family bible, wedding rings, and burial plots are in addition to the $5,000 exemption.

D) The family bible, wedding rings, and burial plots are in addition to the $5,000 exemption.

A deed contains the following description: "Lots 7 and 8, Block F, Section 3, Plat of Greydon, otherwise called 14 Havers Drive, Venus, Virginia." In fact, Block F has only six lots, and the street address is Lot 5. Is this deed valid? A) No, because the lot description is faulty, a new deed is needed. B) Yes, it's valid if the buyer knows which property is meant. C) No, a false element in a description invalidates the deed. D) Yes, enough correct information remains to permit identification.

D) Yes, enough correct information remains to permit identification.

All of the following are protected by the Virginia Fair Housing Law's provisions for the handicapped or elderly EXCEPT A) a paralyzed veteran. B) a 55-year-old recovered heroin addict. C) a person who is a hoarder. D) a 62-year-old currently using cocaine.

D) a 62-year-old currently using cocaine.

A licensee who acts for a client pursuant to a brokerage agreement that specifies what duties of a standard agent will NOT be done is A) an independent contractor. B) a designated standard agent. C) a dual standard agent. D) a limited service agent.

D) a limited service agent.

Basic VHDA services include all of the following EXCEPT A) administration of some functions of the Virginia Housing Partnership Fund. B) Virginia Housing Fund loans. C) administration of the federal Section 8 rent subsidy program. D) administration of the Virginia Residential Landlord and Tenant Act.

D) administration of the Virginia Residential Landlord and Tenant Act.

Real estate licenses are renewed in Virginia A) annually, in the month issued. B) every two years, in the month of the licensee's birthday. C) on June 30 of each even-numbered year. D) biennially, on the last day of the month in which issued.

D) biennially, on the last day of the month in which issued.

The phrase physical condition of the property only would refer to A) a gas station on the corner. B) plans for widening the street. C) the empty field behind the house. D) defective drywall in the house.

D) defective drywall in the house.

Capping is the method of A) compacting waste and sealing it in a container. B) piling waste into a hill at surface level and covering with clay. C) burying waste and covering with soil. D) laying soil over the surface of a landfill and planting vegetation.

D) laying soil over the surface of a landfill and planting vegetation.

Acting as a limited service agent is allowed as long as the written brokerage agreement includes all of the following EXCEPT A) licensee is acting as a limited service agent. B) a list of specific duties of a standard agent that will not be provided. C) a list of specific services to be provided. D) licensee may also serve as an independent contractor.

D) licensee may also serve as an independent contractor.

The CIC was established to regulate CIC managers by means of A) written procedures. B) annual testing. C) an established fee structure. D) licensure.

D) licensure.

Eight of the required 16 hours of continuing education for salespersons must be in the subjects of all of the following EXCEPT A) fair housing law. B) legal updates. C) ethics. D) marketing.

D) marketing.

Individuals have suffered all of these health problems due to exposure to formaldehyde EXCEPT A) a burning sensation in the throat. B) eye irritations. C) asthma. D) mold infections.

D) mold infections.

Capped landfills have been used as A) shopping centers. B) mobile home parks. C) new-home subdivisions. D) parks and golf courses.

D) parks and golf courses.

As it relates to environmental hazards, A) real estate professionals carry the most exposure to liability. B) local governments carry the most exposure to liability. C) buyers often carry the most exposure to liability. D) sellers often carry the most exposure to liability.

D) sellers often carry the most exposure to liability.

Groundwater, water that exists under the earth's surface within the tiny spaces or crevices in geological formations, forms the water A) level. B) cavity. C) tablet. D) table.

D) table.

The natural level at which the ground is saturated is called the water A) tablet. B) level. C) cavity. D) table.

D) table.

The federal legislation which was passed to protect public health by regulating the nation's public drinking water supply was A) the Water Preservation Act. B) the Public Water Supply Act. C) the Safe Public Water Act. D) the Safe Drinking Water Act (SDWA).

D) the Safe Drinking Water Act (SDWA).

he term encapsulation refers to A) the way in which lead-based paint particles become airborne. B) the process of sealing a landfill with three to four feet of topsoil. C) the way in which insulation is applied to pipes and wiring systems. D) the method of sealing disintegrating asbestos.

D) the method of sealing disintegrating asbestos

A military couple has decided they no longer wish to purchase the town house that they currently have under contract. The town house is covered by the POA Act. The couple can cancel their contract A) within 14 days after receiving the property disclosure packet. B) within 10 days after ratification of contract. C) whenever they wish. D) within 3 days after receiving the POA disclosure packet.

D) within 3 days after receiving the POA disclosure packet.

All of the following are satisfactory legal descriptions in Virginia EXCEPT A) "Proceeding 120 feet due west of the intersection of the east line of J Street and the north line of 11th Street to a point; thence north 10 degrees 31 minutes west 100 feet" B) "727 Olean Drive, Fletcherton, Virginia" C) "Lot 7, Block D, Plat of Red Valley, Martin County, Virginia" D) "The entire 77.5 acres purchased by Edna Kelly on June 20, 1991, and called Seaside Neck, Roanoke"

A) "Proceeding 120 feet due west of the intersection of the east line of J Street and the north line of 11th Street to a point; thence north 10 degrees 31 minutes west 100 feet"

Several weeks after a closing, an associate broker received a thank-you letter and a nice bonus check from the seller of the house. The associate broker cashed the check because he felt it was appropriate in his situation. Which of the following statements regarding his decision is TRUE? A) Accepting the money is a violation of REB regulations. B) The associate broker may accept the money if his broker permits him to do so. C) Accepting the money is allowed if more than 30 days have elapsed since the closing. D) The associate broker may accept the bonus because he is licensed as an associate broker.

A) Accepting the money is a violation of REB regulations.

The survey for a property shows the location of the house, the garage, the fence, utility lines, and the children's playhouse in the backyard. This is MOST likely which type of survey? A) As-built survey B) House location survey C) Subdivision plat D) Boundary survey

A) As-built survey

Which of these is the byproduct of fuel combustion that may result in death if such equipment is not properly vented? A) Carbon monoxide B) Radon C) Lead D) Urea-formaldehyde foam insulation

A) Carbon monoxide

How long after the work is done may a mechanic wait before filing a mechanic's lien? A) No more than 90 days B) No more than 30 days C) No more than 6 months D) No more than 60 days

A) No more than 90 days

Which of the following lease provisions is prohibited under Virginia law? A) Restriction against lawful possession of a firearm B) Tenant's responsibility for the conduct of guests C) Two months' rent security deposit required D) Prohibition against pets

A) Restriction against lawful possession of a firearm

All of the following statements with regard to the Qualified Residential Mortgage (QRM) are true EXCEPT A) The QRM requires a down payment of 20% of the sales price. B) The lender is no longer required to retain 5% of the loan amount. C) The QRM is now aligned with the Qualified Mortgage standard implemented in 2014. D) A QRM loan is qualified if the borrower's debt-to-income ratio is not more than 43%.

A) The QRM requires a down payment of 20% of the sales price.

Which of the following statements with regard to FHA MIPs is NOT true? A) The annual MIP is amortized over the life of the loan. B) The upfront MIP is amortized over the life of the loan. C) As of January 1, 2017, the upfront MIP is 1.75% of the loan amount. D) FHA MIPs are subject to frequent changes.

A) The annual MIP is amortized over the life of the loan.

All of the following are entitled to prevail on a claim of title by adverse possession EXCEPT A) a person who has been entering an orchard and taking apples every October for 15 years. B) a person who held the property for 5 years after inheriting it from a parent, who was in adverse possession for 10 years. C) a person who has been in possession of the property for 19 years. D) a person who has erected a stall on and has been using a neighbor's property to sell produce for 20 years without permission.

A) a person who has been entering an orchard and taking apples every October for 15 years.

Contamination from underground storage tanks is A) addressed by EPA regulations. B) found only in petroleum stations. C) only caused by tanks currently in use. D) easily detected and eliminated.

A) addressed by EPA regulations.

The colorless, odorless, and tasteless gas that occurs as a by-product of incomplete combustion of fuels such as wood, oil, and natural gas, is A) carbon monoxide. B) carbon dioxide. C) formaldehyde. D) radon.

A) carbon monoxide.

A principal or supervising broker must conduct an audit of the practices, policies, and procedures of his firm at least once during each license term. The audit should document compliance with the law and regulations in all of the following areas EXCEPT A) immunity from enforcement action. B) advertising in all forms of media. C) handling of escrow deposits. D) agency or independent contractor relationships.

A) immunity from enforcement action.

Special disclosure rules apply in the sale or lease of residential dwellings built before 1978 because of the possible presence of A) lead-based paint. B) urea-formaldehyde foam insulation. C) asbestos. D) mold.

A) lead-based paint.

A typical right-to-represent buyer agreement should contain all of the following EXCEPT A) marketing plan. B) statement of the duties to be performed. C) assurance that buyer has not entered into any other buyer representation agreement. D) disclosure of how the broker will be paid.

A) marketing plan.

A brokerage relationship can be terminated by any of the following EXCEPT A) one party unilaterally firing the other. B) a default by either party. C) expiration of the agreement. D) a licensee's withdrawal when the client refuses to consent to dual agency.

A) one party unilaterally firing the other.

The settlement agent is responsible for all of the following EXCEPT A) preparing the HUD-1 Statement. B) setting the closing appointment. C) placing orders for title insurance. D) ordering loan payoffs.

A) preparing the HUD-1 Statement.

A settlement agent is usually either an attorney or a title company and must do all of the following EXCEPT A) provide legal advice to the parties to the transaction. B) maintain a surety bond. C) carry E&O or malpractice insurance. D) register with the Virginia State Bar.

A) provide legal advice to the parties to the transaction.

All of the following are discriminatory acts according to Virginia Fair Housing Law EXCEPT A) requiring a handicapped tenant to pay for installation of an access ramp. B) inducing the sale or rental of a dwelling by representation regarding the prospective entry into the neighborhood of protected persons. C) denying membership in an MLS . D) falsely representing that a dwelling is not available for sale or rental.

A) requiring a handicapped tenant to pay for installation of an access ramp.

Article 6 of the Virginia Residential Landlord Tenant Act (VRLTA) deals with A) retaliatory action. B) general leasing principles. C) obligations of the landlord. D) obligations of the tenant.

A) retaliatory action.

Environmental hazards are primarily the concern of

A) the EPA and HUD.

Federal regulation of numerous environmental hazards is carried out by A) the EPA. B) the CFPB. C) the FHA. D) the VA.

A) the EPA.

The Virginia Real Estate Transaction Recovery Fund is administered by A) the REB. B) the Board for Professional and Occupational Regulation. C) the CIC Board. D) the VAC. Explanation The answer is REB. The Virginia Real Estate Board administers the Virginia Real Estate Transaction Recovery Fund.

A) the REB.

When a release or a threat of release of a hazardous substance has occurred on a property, under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the responsible party for cleanup is A) the landowner. B) the state government in which the property is located. C) the U.S. government. D) the local municipality.

A) the landowner.

Groundwater that exists under the earth's surface forms the water table, which is A) the natural level at which the ground becomes saturated. B) never found near the surface. C) never found less than several hundred feet underground. D) usually subject to only subsurface contamination.

A) the natural level at which the ground becomes saturated.

Any items of personal property left on the premises after termination of the rental agreement are considered abandoned. As long as the landlord has given proper notice, the property may be disposed of. The tenant has A) the right to remove the property within 24 hours. B) no further rights. C) the right to sue the landlord for taking the property. D) the right to remove the property anytime.

A) the right to remove the property within 24 hours.

Chlorofluorocarbons

man-made chemical substance that depletes the ozone layer, survives 2-15- years and are broken down by ultraviolet light