Moseley Real Estate Pre License State Exam Review

If the Transaction Recovery Fund falls below a statutory minimum, licensees may be assessed to restore the Fund. What is the maximum that one licensee may be assessed during a two-year period? Select one: A. $20 B. $40 C. $50 D. There is no maximum assessment

$20

The Real Estate Board can re-assess licensees if the Transaction Recovery Fund's balance falls below: Select one: A. $400,000 B. $500,000 C. $750,000 D. $900,000

$400,000

The minimum balance of the Virginia Real Estate Transaction Recovery Fund is: Select one: A. $800,000 B. $750,000 C. $600,000 D. $400,000

$400,000

After the death or disability of the only broker in a real estate firm, how long does a Board-approved person have to conclude the business? Select one: A. 120 B. 150 C. 180 D. 210

180

The initial purchaser of a time-share estate has a statutory right to rescind a contract to purchase. How long is this rescission period? Select one: a. 5 days b. 7 days c. 10 days d. None of the above

7 days

Once a sales contract has been ratified, what can a licensee legally do without permission from the principals to the contract? Select one: A. Change the closing date or location B. Make minor changes to the contingencies C. Correct grammatical or spelling errors in the contract D. Search the public records for information about the subject property

Search the public records for information about the subject property

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? Select one: A. The broker has violated Board regulations, which preclude paying valuable consideration to an unlicensed person B. The broker must limit this incentive program to 30 days C. Such actions could be viewed as creative selling, which does not violate License Law or Board regulations D. The brokers actions violate anti-trust laws

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

To obtain a Virginia real estate license, it is necessary to: Select one: A. Be a citizen of the United States B. Hold a bachelor's degree in real estate C. Take and pass a test within 12 months of application D. Serve an apprenticeship term in real estate

Take and pass a test within 12 months of application

When a broker is acting as a buyer's agent, he may disclose all of the following items to the buyer, EXCEPT: Select one: A. That the current owner of the property has AIDS B. Information that the broker knows about the financial circumstances of the seller C. Deed restrictions that might affect the buyer's intended use of the property D. None of the above

That the current owner of the property has AIDS

Which of the following statements is true if a broker has repaid the amounts awarded from the Transaction Recovery Fund? Select one: A. His license is automatically reinstated B. The Real Estate Board could withhold issuance of a new license, forever C. He may apply for a new license within 30 days D. He will be reinstated as a salesperson, NOT as a broker, for a period of 2 years

The Real Estate Board could withhold issuance of a new license, forever

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: Select one: 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

A motel clerk provides a few leads to a broker in exchange for a percentage of the commission. In this situation, which of the following statements is true? Select one: A. The clerk must be a licensed salesperson B. Neither the broker nor the clerk is in violation of the law C. The clerk must be licensed as a broker D. This is a good sales strategy

The clerk must be licensed as a broker

A seller gave a friend power-of-attorney in order to consummate the sale of her personal residence. Which of the following statements is true? Select one: A. The friend must be licensed as a broker B. The friend must have a law degree C. The friend need not be licensed D. The friend need not be licensed, only if he or she does not get paid

The friend need not be licensed, only if he or she does not get paid

Which of the following conditions is most likely to be a latent defect? Select one: A. The paint is peeling on the exterior of the house B. The house has a leaking basement C. The house's floor boards are rotting D. The driveway concrete is cracked

The house's floor boards are rotting

When a salesperson transfers from one broker to another, who is responsible for sending the salesperson's license to the Board? Select one: A. The old broker and the new broker hold joint responsibility B. The salesperson and the new broker C. The old broker D. The salesperson

The old broker

When acting as a buyer's agent, what responsibilities should the broker have towards the seller of the property? Select one: A. To keep the seller informed B. To exercise due care for the seller's interest C. To maintain loyalty to the seller D. To treat the seller fairly

To treat the seller fairly

A real estate license is not required for a: Select one: 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

When can a broker remove money from his escrow account? Select one: A. At the time the buyer occupies the property B. When directed to do so by the seller C. When closing is completed D. Any of the above

When closing is completed

Which person would need a license to sell property on behalf on another? Select one: A. An auctioneer B. A person receiving a gift certificate to sell a property C. An attorney D. A court appointed trustee

A person receiving a gift certificate to sell a property

Which payment does NOT need to be held in an escrow account? Select one: A. Money received as a security deposit for rental property B. A referral fee received from an out-of-state broker C. An earnest money deposit, if closing is scheduled in less than 15 days D. An earnest money deposit, if the amount is less than $250

A referral fee received from an out-of-state broker

The unit owners of a condo project are unhappy with their association's management. As a result, they want to amend the bylaws. What is the minimum percentage of affirmative votes to change the bylaws? Select one: A. 33.33% B. 66.66% C. 75% D. A simple majority

A simple majority

A salesperson is employed by Broker Able, but she works alone to market and sell her own home. She must: Select one: A. Abide by all fair housing laws B. Disclose in all forms of advertising that she is a licensee C. Disclose to all buyers her license status D. All of the above

All of the above

A violation of the Virginia License Law may subject a broker to: Select one: A. Suspension of his license and a fine B. A fine only C. Revocation of his license and a fine D. All of the above

All of the above

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

All of the above

Which of the following persons is NOT exempt from the licensure requirements? Select one: A. A trustee who is required to sell a house at foreclosure B. An administrator who is required to sell a house in order to liquidate an estate C. A sheriff ordered by the court to sell a house at foreclosure D. An attorney-at-law who is regularly engaged as a real estate broker

An attorney-at-law who is regularly engaged as a real estate broker

Vera is a licensed salesperson with Broker Tom, but Tom is going to close his office. When this happens, Vera plans to work with Broker Jane. Vera should: Select one: A. Get her license from Tom and take it to Jane B. Have all earned commissions placed in an escrow account C. Ask Tom to return her license to the Board and apply for a transfer D. Apply to the Real Estate Board for a license as a new applicant

Ask Tom to return her license to the Board and apply for a transfer

An escrow account is required to: Select one: A. Be opened by a broker to hold money that belongs to another party B. Be opened to ensure that all affiliates and employees will be paid regularly C. Be an interest-bearing account D. Have a minimum balance of $500

Be opened by a broker to hold money that belongs to another party

If a contract of sale is not consummated, how are escrow funds disbursed? Select one: A. By the settlement attorney, with permission of all parties B. By the broker, with written permission of the seller C. By the broker, according to the terms of the contract if neither party files a written objection D. By the broker, only upon notification of the court

By the broker, according to the terms of the contract if neither party files a written objection

If a broker receives a deposit for escrow, his handling of the deposit would be in violation of Virginia License Regulations if he: Select one: A. Places the money in an interest-bearing account B. Has the earned interest credited to his personal account, with permission from all parties involved in the transaction C. Does not advise the principals of exactly how the earned interest on the deposit will be distributed D. Places the money in a non-interest bearing account

Does not advise the principals of exactly how the earned interest on the deposit will be distributed

The Board may take disciplinary action against a licensee: Select one: A. If a written complaint contains prima facie evidence that a violation has occurred B. If the licensee admits guilt C. After conducting a hearing D. Either B or C

Either B or C

The Virginia Fair Housing Act extends protection beyond the list of federally protected classes. Which group is protected under Virginia law, but NOT under federal law? Select one: A. Sexual orientation B. Marital status C. Elderliness D. Source of income

Elderliness

The intent of the Virginia Fair Housing Law is to: Select one: 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

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: Select one: A. Cash the check if she deserves it B. Endorse the check over to Bob C. Put the check in her escrow D. Cash the check, but inform Bob

Endorse the check over to Bob

If the Board honors a claim and authorizes payment from the Transaction Recovery Fund, the claimant subrogates his rights to the Board. The Board now has the right to: Select one: A. File a claim against to the licensee to recover the amount paid from the Fund B. File a claim against the licensee to recover the judgement amount awarded by the court C. Only to revoke the license, as provided by Virginia law D. Sentence the licensee to a prison term of no more than 12 months

File a claim against to the licensee to recover the amount paid from the Fund

A broker placed one of her signs on property without permission from the owner. The broker is guilty of: Select one: A. Misrepresentation B. Violation of anti-trust laws C. Improper dealing D. Disparate impact

Improper Dealing

Which of the following statements must be true about a real estate salesperson's license? Select one: A. It is mailed to the licensee for delivery to the employing broker B. It is prominently displayed in the main office of the salesperson's firm C. It is prominently displayed in the branch office where the salesperson works D. It is kept in the custody of the employing broker

It is kept in the custody of the employing broker

Which of the following names MUST appear in any advertisement for real estate? Select one: A. Seller B. Listing salesperson C. Listing broker D. Selling salesperson

Listing broker

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: Select one: A. The colors on the sign are different than the firm's logo colors B. Placed on private property without permission of the owner C. They direct the public through a neighborhood more desirable than the subject property D. There is no agent at the location to answer questions

Placed on private security without permission of the owner

The objective of the Virginia Fair Housing Law is to: Select one: A. Discipline and fine anyone who violates the law B. Provide fair compensation for landlords C. Establish the guidelines in which testers operate, so as not to create an allowable defense of entrapment D. Protect and ensure the welfare of the general public

Protect and ensure the welfare of the general public

Claims for payment from the Transaction Recovery Fund are filed with the: Select one: A. Real Estate Board B. Local Association of Realtors C. Court of competent jurisdiction D. Salesperson's broker

Real Estate Board