Virginia Real Estate Practice and Law

Real estate for sale ads placed by a real estate company must contain: a. the salesperson's name b. the broker's phone number c. the broker's name d. the list price

c.

In Virginia, a listing agent owes the seller all of the following duties EXCEPT: a. disclosure to the seller all material facts about the transaction b. confidentiality of all personal and financial information received from their from their client c. presentation of all written offers and counteroffer d. continued advertising of the property for sale until settlement

d.

Which of the following statements is true regarding the continuing education requirements of the Board? a. the course consists of 12 classroom hours b. if applies to all active licensees c. completion requires an examination score 75% d. all principal brokers are authorized to conduct to suits and services

b.

Which one of the following "roommate wanted" ads would be illegal under Virginia Fair Housing laws? a. heterosexual females only b. Christian females only c. vegetarian females only d. females, age 20-30 only

b.

Routine services that an agent provides to the customer are referred to as: a. transactional services b. customer service c. ministerial acts d. implied acts

c.

Routine services that do NOT involve a licensee's experience or discretion are called a. transactional acts b. routine brokerage c. ministerial acts d. customer service

c.

Inactive licensees: a. may collect referral fees b. will be assessed if the transaction recovery fund falls below, $400,000 c. are required to attend continuing education classes while inactive d. must renew their licenses every 2 years, while inactive

d.

The surviving spouse of someone who dies testate may be eligible for: a. only what is specified in the will of deceased b. a dower interest in the estate c. a homestead interest in the estate d. an elective share of the augmented estate

d.

If an associate broker's license is revoked by the Board, then: a. all licenses in the firm must be returned to the Board b. the principal broker's license is suspended c. the licensee can appeal this action in court d. the principal broker's license is returned to the Board

c.

If someone is found to be committing acts of brokerage without a license the Real Estate Board will: a. fine the individual b. do nothing because the Board has no jurisdiction c. turn the matter over to the Commonwealth Attorney'r office d. turn the matter over to the local police

c.

If the Board receives an application for a partnership brokers license from a real estate broker and a real estate salesperson, each with over 10 years experience, the Board will: a. reject the application because all partners must be brokers b. approve the application because of their experience c. reject the application because only brokers and/or non licensed persons may form this type of partnership d. approve the application if the broker owns at least 51% of the partnership

c.

The Real Estate Board (REB) Rules and Regulations are found in a. the Code of Virginia b. the Virginia Constitution c. the Virginia Administrative Code. d. the General Assembly Minuted.

c.

The Real Estate Board (the board): a. has 6 members, with 5 years experience, who serve a 5 year term. b. has only licensed professionals c. has 9 members, 7 professionals and 2 consumers d. has 2 members elected by the VAR

c.

The term physical condition of the property refers to a. a gas station around the corner b. the empty field behind the house c. defective drywall in the house. d. plans for widening the street

c.

Common Interest Community Managers are required to have all of the following EXCEPT a. at least one supervisory employee with five years of management experience. b. one supervisory employee who has completed an 80-hour training program c. 50% of employees with the management responsibility must meet specific experience requirements or attend a 16-hour training program. d. 100% of all employees must attend a 16-hour training program annually.

b.

An associate broker is defined as: a. someone licensed as a broker in another state b. any salesperson with a minimum of 3years experience c. someone licensed as a broker, afflicted with another broker d. an assistant to the principal broke

c.

Any individual holding a broker's license in Virginia who is NOT designated as the principal broker is a. a supervising broker b. a managing broker c. an associate broker. d. none of the above

c.

Concurrent licenses may be issued to: a. principal brokers only b. any licensee, active in more than one firm c. any broker or associate broker, active in more than one firm d. any person licensed in another juristdiction

c.

If a purchaser does NOT receive the proper property disclosures prior to contract ratification, the contract may be terminate a. within three days of occupancy. b. within five days of settlement. c. prior to settlement d. prior to loan application with no right of contract termination

c.

Grounds for denial of application for licensure by the Board include: a. previous license revoked in any jurisdiction b. previous license suspended in any jurisdiction c. any felony conviction d.all of the above

d.

In Virginia a salesperson may NOT: a. act as a buyer agent b. act as a designated agent c. ant as a dual agent d. act as a supervising broker

d.

Legislation that directly affects the policies and procedures of a brokerage firm include all of the following EXCEPT a. cold-calling for prospects (National Do Not Call Registry) b. email newsletters (CAN-SPAM) c. maintenance of client records (FACTA). d. selection of settlement agent (CRESPA)

d.

Seller B has been best friends with broker A for 30 years. He wants to have broker A sell his farm based on a handshake agreement. In Virginia, this is a. illegal, based on the Statute of Frauds b.illegal, based on Virginia Agency Law c. legal and fully enforceable, based on Virginia Agency Law. d. legal but not enforceable, based on the Statute of Frauds

d.

The declarant (developer) remains responsible for the management of a condominium until what percentage to the units are sold? a. 50% b.60% c.70% d.75%

d.

According to the Virginia landlord Tenant Act, a tenant who vacated a property in good standing, after 21 months of occupancy, is entitled to how many months interest on the security deposit? a. 21 b. 18 c. 0 d. none of the above

c.

All of the following are exempt from the state licensing requirements EXCEPT a. a person acting without compensation as attorney-in-fact. b. an attorney involved in a real estate transaction in her normal role as attorney. c. an officer of a firm who actively participates in a brokerage business. d. a licensed auctioneer selling real estate at a public auction

c.

An applicant for a broker license must have been active as a salesperson for a minimum of: a. 24 months b. 30 months c. 36 months d. 48 months

c.

An inactive status refers to a licensee: a. with no transaction in 12 month period b. acting only as a referral agent c. with no broker affiliation d. suspended less than 12 months

c.

At the end of a lease the landlord (or representative) must inspect the property within: a. 24 hours b. 48 hours c.72 hours d. 5 business days

c.

The Virginia Real Estate Transaction Recovery Fund was created to a. protect consumers from unscrupulous settlement attorneys. b. provide funding for the Virginia Housing Development Authority c. reimburse consumers who suffer monetary loss due to a licensee's misconduct d. establish a fund for research and education of licensees.

c.

The sign on a real estate office must contain a. the phone number of the company b. the principle broker's name c. some word or phrase that lets the public know that the office is a real estate business d. there are no regulatory requirement

c.

What is the maximum amount that a licensee can receive from the transaction recovery fund, due to the improper activities of a real estate broker, involved in multiple transactions? a. $100,000 b. $50,000 c. $20,000 d. none of the above

c.

When a licensee acts as an independent contractor and NOT as a standard agent, the relationship is governed by a. the common law of agency b. a standard Virginia REB contractor agreement c. a written agreement between licensee and client d. a buyer agency agreement

c.

Which of the following classes is protected under Virginia Fair Housing law but not under the Federal Fair Housing law? a. age b. sexual orientation c.elderliness d. marital status

c.

All of the following are violations of Board regulations EXCEPT: a. relining b. steering c. blockbusting d. puffing

d.

An agency relationship is BEST described as one in which a licensee a. has signed agreement establishing a brokerage relationship. c. performs ministerial acts for a seller. d. acts for or represents another person in a real estate transactionncy

d.

Broker A is representing a buyer in the purchase of a town house listed with Broker B. Broker A has signed exclusive right-to-represent contract with the buyer. He will need to have a Disclosure of Brokerage Relationship form signed by a. the buyer b. the sellers of the town house c. both the buyer and the sellers of the town house d. no one because the sellers have their own agent

d.

Every principal broker must have all of the following readily available to the public EXCEPT a. the business firm license b. the managing broker's license c. a roster of all salespersons and brokers affiliated with the firm. d. all branch offices' licenses

d.

A salesperson returns from a one month vacation and learns that her license expired last week and that a previous sale is scheduled to settle tomorrow. Under these circumstances she is: a. entitle to her commission b. entitled to her commision, only if she completed the continuing education class prior to license expiration c. NOT entitled to her commission, because she is not licensed, and must pay $200 to reinstated her license d. NOT entitled to he commission and must apply for licensure as an original applicant.

a.

All of the following are exempt from the seller property condition disclosure requirements EXCEPT: a. a seller who is recognized as having a physical disability b. the seller of new home c. the sale of a property at foreclosure d. a voluntary transfer between co-owners

a.

All of the following are protected under Virginia Fair Housing Laws EXCEPT: a. a captain on active military duty b. a Canadian with a one year job assignment in Richmond c. a father who has visitation rights with his 2 children on weekends d. a single mother with 3 children who wishes a rent a 2 bedroom apartment

a.

An individual wants to sell her own house. Which of the following statements is TRUE? a. She does not need a real estate license to sell her own property. b. In Virginia, anyone who sells real property must have a real estate license. c. An individual may obtain a temporary real estate license in order to legally sell her own house. d. She may sell her house without a real estate license if the she is an attorney

a.

By when must licensees have completed their education? a. by the time their license expires b. up to 30 days after their license expires c. at least 30 days before their license expires d. at least 6 months before their license expires

a.

If the licensed President of a brokerage firm appoints a Vice President a principal broker, an attorney as Secretary, and a CPA as Treasurer, which of the following is true? a. the licensee must wait one year before they can reapply before he/she may apply for a new license b. the licensee must pay the fund back, plus interest, before he/she may apply for a new license c. the licensee automatically will be reissued a license when he/she has reimbursed the fund d. the licensee can never hold a real estate license in Virginia again

a.

The first step in the procedure when the REB receives a complaint is: a. the REB reviews the complaint to determine if it has jurisdiction b.an investigator interviews the agent involved c. the agents license is suspended for a period of 30 days d. the complaint is turned over to the Commonwealth Attorney's office.

a.

The specific duty that falls under the duty to promote the best interests of the client that only applies to sellers and landlords is the duty to a. conduct marketing activities. b. seek a price and terms acceptable to the client c. assist in the drafting and negotiating of offers and counteroffers d. providing assistance to satisfy the client's contract obligations.

a.

Exemptions to the Virginia Residential Property Disclosure Act provisions include all of the following EXCEPT a. transfers pursuant to a foreclosure sale. b. transfers made without the assistance of a licensed real estate broker. c. transfers made between spouses resulting from a divorce d. transfers involving the first sale of a dwelling.

b.

Exemptions to the provisions of the National Do Not Call Registry include all if the following EXCEPT a. clients and customers for a period of 18 months from last transaction. b. within 18 months of a consumer inquiry. c. charitable organizations. d.political organizations

b.

How long is the buyer's right to rescind the contract when a timeshare is resold (no the original sale). a. 3 days b. 5 days c. 7 days d. 10 days

b.

In Virginia, property assessments for tax purposes are to be based on: a. historic value b. fair market value c. 1/2 appraised value d. the most recent sale price

b.

Referral fees may be paid: a. to anyone as long as the total is the total is not over $250.00 b. of the salespersons, but not independent contractors c. of employees but not independent contractors d. of an agent only if the principal broker knew or should have known of the unlawful action

b.

A listing agent places a property in the local MLS stating that the house is connected to the public sewer when in fact it is on a septic system. Six months after settlement, the septic system fails and the purchaser wants to sue the seller for misrepresentation. Which of the following statements is TRUE? a. The new owner can collect the cost of connecting to public sewer from the seller. b. The new owner can sue the seller for the damages c. The seller is not responsible for misrepresentations made by the listing agent. d. The contract will be voided

c.

If a tenancy by the entirety is ended due to divorce the former spouses, if not specified otherwise would automatically hold title as: a. joint tenants b. the husband holds title in severalty and the wife has a life estate c. tenants in common d. tenant in partnership

c.

Which of the following is true of a licensee selling his/her own property as a FSBO? a. the licensee is not subject to REB regulations when selling his/her own property b. The licensee is not allowed by regulation to act as a FISBO c. The licensee is subject to the rules of the REB d. The licensee must list the property with their broker

c.

Which of the following is true regarding Virginia Fair Housing Laws a. a seeing eye dog is considered a pet and an extra pet deposit may be charged the blind tenant b. a landlord may charge people with children higher security deposits than those without children c. a larger security deposit may be charged on a larder rental unit d. a landlord must pay for any changes in his/her property that would be required by a tenant in a wheelchair

c.

Salespersons M and T are licensees who are both afflicted with the same realty firm. M has listed a house, and T has a likely buyer. What should the supervising broker do? a. The broker should do nothing because neither sales person wishes to act as disclosed dual agents b. The broker should insist that one of the salespersons sign a disclosed dual agency agreement with the buyers and sellers. c. The broker may assign the salespersons as designated agents, providing a disclosure form to the sellers only d. The broker may assign the two salesperson as designated agents and provide a disclosure form to both the sellers and the prospective buyers.

d.

The license of a real estate salesperson: a. is kept in the custody and control of the salesperson b. is kept in the control of the branch manager c. must be publicly displayed in the branch office where employed d. must be publicly displayed in the main office

d.

The term biology may refer to all the following EXCEPT a. a brokerage firm b. a sole proprietor transacting real estate business c. a managing broker for a branch office. d. a principal in brokerage realtionship

d.

You are listing a property in which one of the owners recently committed suicide. Which of the following is true? a. The suicide need not be disclosed to buyers b. The suicide must be disclosed to buyers c. The state of Virginia has no position on this matter d. Suicide is treated the same as a known material defect in the property

a.

At an office sales meeting, you mention that the sellers of one of your listings are being transferred and must sell their home within the next week. Another agent in your office has a buyer client who is interested in that property. Which of the following is NOT TRUE? (Generally your company uses the designated agent status) a. you may have violated your duty of confidentiality to your client b. the buyer's agent must tell his/her client about the sellers' need to sell c. the buyer's agent cannot tell his/her client about the sellers' need to sell because the buyer agent is dual agent d. your comments were allowable if you had the sellers' permission to disclose their need to sell

c.

By Virginia statutory definition, a salesperson may perform all of the following functions EXCEPT a. offer a residence for sale b.negotiate an exchange c. serve as a managing broker d. lease rental apartments

c.

The Common Interest Community Board (CIC) regulates all of the following EXCEPT a. the Condominium Act b. the Real Estate Time-Share Act. c. the Real Estate Cooperative Act. d. the Residential Property Disclosure Act.

d.

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

a.

A person who has had a license on inactive for over 3 years will be required to do which of the following to reactivate: a. pay a reactivation fee only b. meet the current educational requirement and pay the reactivation fee c. retake the licensing exam d. meet the current educational requirement and take the licensing exa

b.

The Real Estate Board (REB) may assess each active and inactive licensee a proportionate amount whenever the Transaction Recovery Fund falls below a minimum balance of a. $20 per licensee b. $400,000 c. $1,000,000 d. $2,000,000

b.

The maximum fine for a single violation of regulations that can be imposed on an agent by the REB is: a. $5000.00 b. $2500.00 c. $1500.00 d. $1000.00

b.

Which of the following are protected by the Virginia Fair Housing laws? a. marital status b. familial status c. source of income d. dietary restriction

b.

Which of the following is the CORRECT way to enter the termination date on a listing form? a. 90 days from today b. July 1, 2008 c. Until property sold d. Until seller decides to cancel

b.

A branch office is required to display: a. the branch manager's license b. the license of all licensees affiliated with that branch c. the branch office license d. all of the above

c.

A broker may remove money from the escrow accounts in all of the following circumstances EXCEPT: a. if ordered by a court of competent jurisdiction b. when settlement has been completed c. upon demand by the buyers' attorney d. when agreed to in writing by all parties to the contract

c.

A broker, acting as a property manager, would be guilty of commingling for which of the following? a. using the same financial institution for the property operating account and the brokerage operating account b. using one escrow account for both rental security deposits and earnest money deposits c. placing rental security deposits in the property operating account d. placing a commision check, received from another broker, into the brokerage operating account

c.

The Fair and Accurate Credit Transaction Act (FACTA) Disposal Rule require office policies to do all of the following EXCEPT a. return all client records to the client at settlment. b. burn, pulverize, or shred all consumer report information. c. destroy or erase electronic files with consumer information d. hire a document destruction contractor to dispose of consumer informatio

a.

The Virginia Real Estate Transaction Recovery Fund was established to: a. reimburse parties who suffer monetary loss due to licensee's improper actions b. reimburse parties who suffer a loss due to a reduction in the value of their property c. reimburse parties who suffer from a Fair Housing violation d. reimburse licensees who suffer a loss due to default of buyers or sellers

a.

The maximum amount that any single claimant may recover from the fund based on a single transaction is a. $20,000 b.$50,000 c. $100,000 d. unlimited

a.

Which of the following is not normally found in an exclusive right to sell listing agreement? a. permission for the agent to enter into a sales contract on the owners' behalf b. the expiration date c. the legal description of the property d. permission to place a for sale sign and a lockbox on the property

a.

Which of the following is true about the principal broker of the firm? a. The principal broker will be the designated recipient of official documents from the REB b. The principal broker must have been a broker for at least 5 years c. The principal broker must be part owner in the firm for which he/she is the broker d. The principal broker is responsible for all acts of the licensee that work for the firm

a.

Board regulations require that agency disclosure be made to buyers and sellers: a. during initial contact b. prior to any discussions regarding financing c.when substantive discussion regarding financing d. at any time prior to contract negotiation

c.

Usury laws in Virginia set the maximum interest rate on loans secured by a first deed of trust on real estate at: a. 15% b. 18% c. 20% d. there is no limit

d.

When a real estate firm changes its trade name, the Board must receive written notification of the change within: a. 5 days b. 10 days c. 15 days d. 30 days

d.

Which of the following is required of broker applicants in Virginia? a. 21 years of age b. citizenship c. 1 year of residency d. 3 years of experience

d.

Which of the following is the Real Estate Board NOT responsible for administering a. the Virginia Condominium Act b. the Virginia Real Estate Cooperative Act c. the Virginia Time-Share Act d. the Virginia Vertical Properties Act

d.

Which of the following would NOT be permitted under Virginia Law? a. a local jurisdiction may have additional protected classes to the Fair Housing laws b. a local jurisdiction taxing agent commissions c. a local jurisdiction adding regulations that govern agent behavior d. a local jurisdiction setting an approved commission rate

d.

In addition to other requirements, an unlicensed nonresident who wished to obtain a Virginia real estate license: a. must file an irrevocable consent to suits and services b. will be required to pay the nonresident fee c. must certify that he/she has read and understands the Virginia License Law d. must attend a 15 hour class on Virginia License Law

a.

A licensee is selling his/her own home For Sale By Owner. The sign in the front lawn must contain which of the following? a. information that the owner is a licensee b. the licensee's broker affiliation c. the licensee's office phone number d. the licensee's manager's name

a.

A person holding an active broker's license in Virginia who is not the principal broker is: a. an associate broker b. a co-broker c. a concurrent broker d. an inative broker

a.

A principal broker may be disciplined for the actions: a. of all the agents at all times b. of the salespersons, but not the associate brokers c. of employees but not independent contractors d. of an agent only if the principal broker knew or should have known of the unlawful action

b.

All of the following are true regarding real estate license applications EXCEPT: a. applicants mar be nonresidents b. all applicants must post a $500 bond c. applicants for an active license must affiliate with a broker, licensed in Virginia d. a broker applicant must be at least 18 years of age

b.

Financial records of escrow accounts must be maintained for: a. 2 years b. 3 years c. 4 years d. 5 years

b.

A broker could be found guilty of commingling by failing to remove from an escrow account, funds they earned as part of a transaction, withing how many days following settlement? a. 30 b.60 c.90 d. 180

d.

A broker who is found to have violated the Virginia Fair Housing Laws would be subject to a maximum civil penalty of: (civil case-first & any subsequent offense) a. $10,000-50,000 b. $20,000-40,000 c. $25,000-50,000 d. $50,000-100,000

d.

A licensee must disclose his/her license status in writing to all parties to a contract under all of the following situations EXCEPT: a. when purchasing a property themselves b. when assisting a relative in a purchase c. when a principal in a firm that owns and is selling a shopping center d. when assisting a long term friend in the pruchase of a property

d.

A licensee would not violate her brokerage relationship with her seller client by doing any of the following EXCEPT a. performing ministerial acts for a buyer customer b. showing alternative properties to prospective clients c. representing other clients in other transactions d. disclosing confidential information to the buyers

d.

A prospective buyer calls a licensee and spends 20 minutes talking about her real estate needs. They agree to meet and go for a drive to look at neighborhoods but never discuss or visit any specific property. The licensee should provide her with agency disclosure a. when she gets a car b. while they are taking on the phone c. when she gets back to the caller's home d. no disclosure is required since no specific assistance was given

d.

A prospective buyer calls the listing agent on a home she is interested in. She tells him that she has a signed buyer agency agreement with another licensee, but he is out of town and she would like the listing agent to show her the home. When should the listing agent make an agency disclosure to the prospective buyer? a. Immediately, over the phone b. When he shows her the listing c. After she signs a new buyer agency agreement with him d. Never; none will be needed

d.

Board regulations prohibit: a. advertisements which include the name of a salesperson b. electronic media advertising c. advertisements which contain only a telephone number d. advertisements which contain the advertisements which contain the address of the property

d.

If an owner agrees to pay 7% commision to a real estate broker if the broker sells the property, and has established the same agreement with 3 other brokers, then this agreement: a. is referred to as a multiple listing b. insures the broker will receive a commission even if the owner sells the property himself c. may be assigned to another broker d. may allow a "for sale" sign to be place on the property

d.

In Virginia blockbusting is: a. a great way to generate new listings b. legal but probably unethical c. illegal, but only in the cities of Richmond and Herndon d. illegal

d.

A seller offers a broker a listing agreement that contains the following clause: "Seller must receive amount of $60,000 firn the sale of this property. Seller agrees that the selling agent will receive, as his or her total compensation, any proceeds that remain beyond that amount after satisfaction of seller's mortgage loan and any closing costs incurred by the seller." Based on these facts, the broker a. must decline this listing agreement because the clause violates REB regulations b. must decline this listing agreement because it is not the standard form used in Virginia c. may accept this listing agreement because the clause is standard in an open listing. d. may accept this listing agreement because it specifically limits the amount of the compensation.

a.

Which federal organization is responsible for identifying flood areas? a. Federal Emergency Management Agency b. Department of Housing and Urban Development c. Natural Resources Conservation Service d. U.S. Fish and Wildlife Service

a.

The "Wet Settlement Act" requires that recordation and distribution of funds take place within how many days? a. 1 day b. 2 days c. 5 days d. 10 days

b.

All of the following are specific duties owed to a seller or buyer client EXCEPT a. to perform to the terms of the contract. b. to protect and promote the best interests of the client c. to always be obedient to the client's demands d. to maintain confidentiality forever

c.

As of July 1, 2011, a full list of seller representations is provided to a purchaser by a. the listing agent. b. the seller. c. the REB website. d. the buyer agent

c.

How along after the work was done may a mechanic wait before filing a mechanic's lien? a. no more than 30 days b. no more that 60 days c. no more than 90 days d. no more than 1 year

c.

How long does a license candidate have to apply for a license once the listing exam has been passed? a. 3 months b. 6 months c. 12 months d.there is no time limit

c.