Principles of RE
A person who feels they have been discriminated against in violation of the Fair Housing Act has the option of requesting a hearing. Who presides over the hearing and has authority to award damages and/or impose penalties?
VA Fair Housing
When can a broker remove money from his escrow account?
When closing is completed
Wilma lists her house with Broker Fred under an exclusive right-to-sell agreement. Fred later abandons the listing. Which of the following statements is true about this situation?
Wilma may terminate the listing
A listing will automatically terminate:
a. If the listing broker goes bankrupt b. On the date specified in the listing agreement c.If the seller dies prior to receiving an offer from a ready, willing, and able buyer
Regarding disclosures, which of the following are agents required to follow?
a. State Laws b.Agents Creed
Since 1995, Federal rules have prohibited calls to any consumer who:
asked not to be called again
What restriction is placed on leases that exceed one year in duration? a. Lease must include an escalator clause b.Must be a proprietary lease c.Lease must be written d.None of the above
c.Lease must be written
The replacement cost of a property is the cost of constructing:
equivalent building using current standards, materials, design and layout.
According to Regulation Z, which of the following statements would not trigger full disclosure of all terms?
liberal financing terms available
What would most accurately describe an irregularly-shaped parcel of land?
metes and bounds
A woman tells her brother (a broker) that she would like to buy a piece of property that he has listed. However, she does not want the seller to know of their relationship. The brother should:
tell the seller that the prospective buyer is a relative
The parties to a lease agreement include:
the lessee and lessor
An agent was to receive 5% commission on a piece of property that listed for $30,000. How much commission would he receive if the owner reduced the selling price by 15%?
$1,275 Calculate the relevant information, as follows: Amount reduced = $30,000 x 15% = $4,500 New Listed Price = $30,000 - $4,500 = $25,500 Commission = $25,500 x 5% = $1,275
Using a Gross Rent Multiplier of 120, what is the value of a property that generates $12,000 annual income?
$120,000
A house was purchased for $86,000. The lender required a 20% down payment and charged the buyer 3 points. How much is the buyer required to pay for points in this loan?
$2,064 First, we need to determine the loan amount: Loan Amount = $86,000 x 0.80 = $68,800 loan Now, we can determine the amount of money required for three discount points. Remember that a discount point is worth 1% of the loan amount (NOT the selling price): Discount points = $68,800 x 0.03 = $2,064
Bill is very excited for selling his house at 23% more than what he paid 2 years ago. If Bill paid $52,500 for his home, what did he sell it for?
$64,575
Murphy is going to buy 2 parcels of land. One piece of land contains 3.5 acres and a second is 0.5 square miles in area. If the price is $2,000 per acre, what would Murphy have to pay for both parcels?
$647,000 First, determine the cost of the first parcel as follows: 3.5 acres x $2,000 per acre = $7,000. Next, understand that 1 sq. mi. = 640 acres. Now, apply these figures as follows: 640 acres / 2 = 320 acres in the 2nd parcel; 320 x $2,000 = $640,000 for the 2nd parcel; $7,000 + $640,000 = $647,000. Therefore, Murphy had to pay $647,000 for both parcels.
A prospective tenant fills out an application to lease property. She pays the required application deposit in cash, but no lease is ever granted. Under Virginia's Landlord-Tenant Act, which of the following statements is the LEAST correct?
20 days refund
Brokers must retain records of real estate transactions for at least:
3 yo
An adequate metes and bounds description must have all of the following inclusions, EXCEPT:
4 sides
Murphy is going to buy 2 parcels of land. One piece of land contains 3.5 acres and a second is 0.5 square miles in area. If the price is $2,000 per acre, what would Murphy have to pay for both parcels?
647,000
An option on real property is:
A contract
The replacement cost of a property is the cost of constructing:
A new building with the same functional utility as the original
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?
A simple majority
A person who feels they have been discriminated against in violation of the Fair Housing Act has the option of requesting a hearing. Who presides over the hearing and has authority to award damages and/or impose penalties?
Administrative Law Judge
Kim has a listing agreement with Agent Garcia. Agent Garcia and Kim draft the listing on Thursday and, in accordance with Kim's wishes, they plan to publicly advertise the listing on Monday after Kim returns from an out of town trip. Agent Garcia knows the weekend is the best for selling Real Estate and decides to add Kim's listing to the MLS on Saturday morning. Is Agent Garcia ok to do so?
Agent Garcia has violated license law
Sue the seller received an offer from Bryan the buyer on Saturday at 3:00 pm and decided to accept the offer. Sue signed the offer on Sunday at 11:00 pm and then she mailed the offer acceptance to Bryan on Monday at 9:00 am. Bryan received the acceptance of offer on Wednesday at 1:00 pm. On which day and time was the acceptance effective and resulted in a contract?
At 9:00 am on Monday when Sue mailed the acceptance of offer At 1:00 pm on Wednesday when Bryan received the acceptance of offer
Which circumstance would terminate an agency by operation of law?
Bankruptcy of the seller
Which of the following covenants is most often included in a mortgage?
Pay taxes
Which of the following statements is true?
Physical life is generally longer than economic life
Which of the following activities do Anti-Trust laws help prevent?
Price fixing
The right of a mortgagor to regain his property pending foreclosure is known as:
Redemption
If there is a breach of a valid contract for the sale for real property, which of the following remedies is available to the non-defaulting party?
Rescission
A buffer zone would most likely separate:
Residential from commercial
A broker would violate the Virginia Fair Housing Act by doing which of the following acts?
Taking a listing with intent to change the racial make-up of the neighborhood
Broker Johnson has listed Cheever's property and sells it to Brevard for $75,000. Before closing, Broker Johnson discovers that the property has a roof defect but the roof is still under warranty. What should Broker Johnson do?
Tell Cheever and Brevard to avoid liability
Under certain circumstances, the Board may grant reciprocity to a person who is licensed in another state. Through reciprocity, what is true of a broker licensed in another state?
The Real Estate Board may waive all or part of the pre-licensing requirements
A broker accepts a listing from a seller. In the agreement, the seller stipulates that the broker shall list the property on two different MLS directories. The broker only lists the property on one, but receives three offers within the first week. Under these circumstances, which of the following statements is correct?
The broker has violated his fiduciary responsibility
What is NOT an exercise of the police power?
Condemnation
The stealing of escrow funds is called:
Conversion
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?
Endorse the check and give it to his employing broker
After failing to locate an owner or rightful heirs, the state may acquire ownership of abandoned property through:
Escheat
Juanita, a salesperson with PDQ Realty, has shown Julia three properties listed by Lots Realty. Julia wants to purchase a property and subdivide it into two lots. Julia asks Juanita, "Given your extensive experience in the real estate industry, which of the three properties would be the best candidate for subdivision?" What should Juanita do?
Explain that property subdivision is not part of a real estate agent's expertise, then encourage Julia to get an expert's opinion before putting in an offer
An adequate metes and bounds description must have all of the following inclusions, EXCEPT:
Four sides
Which of the following deeds imposes the most liability on sellers?
General warranty deed
Julia the Salesperson obtains a listing. Several days later, Julia meets prospective buyers at the property and remarks that since she is the listing agent, she is very familiar with the property. Under the circumstances described, Julia:
Has failed to properly disclose her agency relationship
Regarding the value of real estate property, what is plottage?
Increase in value due to assemblage
Barry makes a $150,000 offer on Pam's home, subject to financing at 4%. Pam accepts Barry's offer, but only agrees to 6% financing. Which of the following statements is INCORRECT concerning Pam's acceptance?
It is partial exceptance of the original offer
Jeff's sports gambling addiction has resulted in deep debt. Jeff knows he cant afford his house any longer and decides to sell. He signs an exclusive right to sell listing agreement with Broker Sara. Sara finds a ready, willing and able buyer who makes an offer on Jeff's house but prior to accepting the offer Jeff files bankruptcy. Can the sale still go through? Will Sara earn her commission?
Jeff cannot accept the offer, the listing terminates and the agency agreement terminates with no commission
What restriction is placed on leases that exceed one year in duration?
Lease must be written
A broker advertises property listed with her firm in a newspaper. What must be included in this property advertisement?
Name of the broker's firm
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?
No one
Millie and Morris enlist the help of Licensee Lily to sell their home. Morty and Megan enlist the help of Licensee Larry to help find them a new home. Morty and Megan decide they are interested in the property listed by Millie and Morris and make an offer. Licensee Lily and Licensee Larry both work for Baker's Brokerage firm. Is there a conflict of interest because both agents are under the same Broker? Select one:
No, as long as both parties to the sale agree to designated agency representation in writing
Donnie sees a house for rent and calls to speak to the owner's agent, Sheila, to see about renting the property. Sheila asks Donnie the name of his employer to ensure he has a monthly source of income and he tells Shiela he is an active duty Marine. Sheila tells Donnie the owner won't rent to military because they deploy and aren't present to care for the property. Is this a legal reason for an application denial?
No, it is a violation of Federal Fair Housing laws
What is the purpose of a trust account?
To hold money for third parties
A religious organization operates a hotel as a means to raise money and support themselves. Which of the following statements is true?
They may limit room rentals to members of the organization
The law of agency can include relationships between principals, agents, and:
Third parties
If a person feels they were discriminated against in a real estate transaction, they would file a complaint with
The department of urban dev
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?
The friend need not be licensed, only if he or she does not get paid
Phil is a salesperson working for Broker Joan. Phil takes a listing on January 3rd. The listing is a 60-day exclusive right-to-sell agreement. On February 1st, Phil was killed in an automobile accident. What is the status of the listing?
The listing remains valid
The Virginia Residential Property Disclosure Act requires disclosure of all of the following property conditions, except:
The property is in a dam break inundation zone
