VA Law 1 test
When a salesperson terminates affiliation with a broker, what is the salesperson required to do? • Return all customer cards to his or her employing broker • Return all listings acquired during affiliation with the broker • Mail his or her license to the Board • Nothing
Nothing
A licensee who has had his or her license in inactive status for more than three years will have to do which of the following to activate his or her license? • Meet current educational requirements and pass the state portion of the real estate exam • Meet current educational requirements and have completed continuing education within the past two years. • Sign a consent to suits and services • Complete eight hours of the Continuing Education course
Meet current educational requirements and have completed continuing education within the past two years.
If a contract of sale is not consummated, how are the escrow funds disbursed? • By the settlement attorney with permission of the parties • By the broker, with the permission of the seller. • By the Board • In accordance with the terms of the contract, if neither party files a written objection, after proper notice
In accordance with the terms of the contract, if neither party files a written objection, after proper notice
Bob owns a piece of rental property for which he is receiving $800.00 per month. He asks his friend, Al, a licensed salesperson, to manage the property and will pay Al any amount in excess of the $800.00 as the management fee. May Al accept the compensation? • Only if the fee is expressed, in the listing, as a fixed amount or a percentage of the rental income • Yes, provided that Al's license is active • No, Al can only be compensated by his firm or principal broker • Only if the gross rental is disclosed to Al.
No, Al can only be compensated by his firm or principal broker
A broker has received an earnest money deposit to support a valid contract. If the contract is breached and does not close, the broker is required to hold the escrow funds until: • the non-defaulting party threatens legal action • the buyer requests the deposit be returned • the broker receives notice of the breach of contract from an attorney • he or she advises all parties to the contract the intended distribution of the funds and no protest is received within 30 days of notification
he or she advises all parties to the contract the intended distribution of the funds and no protest is received within 30 days of notification
When do real estate licenses expire? • Annually, in the month issued • Every two years, in the month of the licensee's birthday • On June 30 of each odd numbered year • Biennially, on the last day of the month in which they were issued.
Biennially, on the last day of the month in which they were issued.
After the board has issued a license to a salesperson or associate broker: • The license is maintained in the possession of the salesperson or associate broker. • The salesperson will display the license in a conspicuous place where employed • It is displayed at the office where the salesperson is assigned • It is displayed at his or her broker's main place of business
It is displayed at his or her broker's main place of business
Jerry, a licensed salesperson, sold a piece of property that was owned by Mike. After closing, Mike sent Jerry $700.00 as a bonus. Jerry accepted the check because he had done a good job and felt that the bonus was deserved. In the situation described: • Jerry may keep the bonus if his broker approves • There is no violation of license law, because Mike was a principal to the transaction • This is acceptable because of the fiduciary relationship between Mike and Jerry • Jerry has violated board regulations
Jerry has violated board regulations
Art decides to transfer from XYZ Realty to ABC Realty. What must Art do to affect the transfer? • Submit, to the Board, a transfer application certified by ABC Realty • Request that XYZ return his license to the Board along with written notice that he will be going to work for ABC • Advise the Board, in writing, that he is changing to ABC Realty • Have the principal broker of ABC Realty call XYZ Realty and request that his license be sent to them
Submit, to the Board, a transfer application certified by ABC Realty
A broker places an advertisement on Friday to advertise three vacant lots for sale. The ad is in Sunday's newspaper. One lot is priced at $10,000 and the other two at $20,000. He receives an offer for the $10,000 lot on Saturday. Which of the following statements is correct regarding this advertisement? • The broker can only advertise to sell 2 lots • The ad may run for only 4 days • The advertisement may be published. • The broker may not advertise any of the lots
The advertisement may be published
Which of the following is true regarding a branch office of a Virginia real estate firm? • The branch office must maintain an escrow account • The branch office may be managed by a broker or salesperson • The branch office must have a separate license • The licenses of all salespersons assigned to that particular office will be displayed
The branch office must have a separate license
One day after an exclusive right-to-sell listing agreement has expired, a salesperson who works for the listing broker, buys the property. Which of the following is true in this situation? • The salesperson must disclose, to the seller, his or her license status • Disclosure of license status is not required because the listing had expired • Disclosure of license status is not required if the listing broker approves • Such action is prohibited by statute
The salesperson must disclose, to the seller, his or her license status
If a broker opens a branch office in Virginia, which of the following is true? • Upon request, the Board will issue a branch office license. • A salesperson with three years experience can manage the branch office • The names and addresses of all licensees assigned to the new office must be submitted to the Board • The broker must assign at least one salesperson to that branch office
Upon request, the Board will issue a branch office license.
The real estate board does not administer the: • Virginia Licensing Laws • Virginia Condominium Act • Virginia Real Estate Transaction Recovery Act • Virginia Fair Housing Law
Virginia Condominium Act
A licensed salesperson can represent a Virginia broker other than his or her principal broker under which of the following circumstances? • Under no circumstances • With the permission of his or her sales manager • With the written consent of the brokers being represented • With the permission of the Association of REALTORS
With the written consent of the brokers being represented
An associate broker may be licensed with more than one Virginia brokerage firm or sole proprietorship under which of the following circumstances? • With the knowledge and permission of the seller • With the written permission of his or her sales manager • With the permission of the local Assoc. of REALTORS • With the written consent of the principal brokers represented
With the written consent of the principal brokers represented
Any payments or rebates to a principal to the contract: • may be permitted if a licensed broker is making the payment • must be agreed upon by all parties prior to the execution of any listing or contract of sale • must be in writing • all of the above
all of the above
Martin operated his own brokerage business until he passed away unexpectedly. The Board appoints his daughter, Sue, to operate the business for 180 days. During this period of time, Sue: • will be issued a temporary license by the Board • must hire a licensed broker to operate the business. • may try to find buyers for any listing that is on the books of the brokerage • can only do whatever is necessary to conclude the business affairs of her father
can only do whatever is necessary to conclude the business affairs of her father
Virginia license law does not declare a dual agency to be illegal, however, if such an agency exists, the law requires that: • disclosure is required, in writing, and must be agreed to by all parties to the transaction, prior to the signing of any contracts • disclosure be made to all parties to the transaction at closing. • disclosure must be made, in writing, only to the seller • disclosure must be made, in writing, only to the buyer
disclosure is required, in writing, and must be agreed to by all parties to the transaction, prior to the signing of any contracts
Records of transactions which a broker maintains in accordance with the Virginia license law must be kept: • for five years from date of closing • for two years from date of closing • for three years from date of closing • in a bank insured by the FDIC
for three years from date of closing
If a broker represents more than one party in a real estate transaction, without the full knowledge and consent of all parties to the transaction, it is: • acceptable as long as everyone is treated fairly • an everyday occurrence because this is exactly what happens when a broker sells his or her own listing • grounds for suspension or revocation of his or her license • acceptable, only if the broker has an ownership interest in the property
grounds for suspension or revocation of his or her license
A broker may place a sign on property: • only when he has a written listing agreement • after the first advertisement appears in the newspaper • if he has the permission of the property owner • when he plans to hold an open house at the location
if he has the permission of the property owner
When the board receives a complaint against a licensee, in writing, the first thing it does is: • conduct a hearing to allow the licensee to defend himself or herself • suspend the respondent's license • investigate to see if the complaint is a possible violation of license law or Board regulations • advise the licensee of the charges
investigate to see if the complaint is a possible violation of license law or Board regulations
Alice, a broker, has decided to open her own brokerage business. Jane, an insurance broker, has agreed to provide most of the capital for this operation and share in any profits. Jane will be the senior partner by virtue of her financial support. Such an arrangement: • is illegal because Jane has no experience in real estate • is legal as long as Jane does not engage in acts of brokerage • is illegal because all partners in a real estate partnership must be licensed as brokers • is legal, technically, but the Board could take action against Alice if they were to learn of the arrangement
is legal as long as Jane does not engage in acts of brokerage
A broker's license is suspended for six months. Salespeople whose licenses are held by this broker: • may apply to transfer their licenses to another broker. • must place their licenses on inactive status for six months. • also lose their licenses for six months. • may continue to operate the broker's business
may apply to transfer their licenses to another broker.
An agent advertising property for sale must include: • financing options • name of the listing salesperson • selling price of the property • name of the listing broker
name of the listing broker
When Sally passed her license examination, she immediately applied for her license and places it on inactive status. When Sally is ready to start to work in real estate, she must: • retake the license examination • take a 15-hour supplemental real estate course • pay a fee to activate her license • advise the Board of her intent and request her license be sent to her
pay a fee to activate her license
A written offer is presented and rejected by the seller. The seller counters and the buyer accepts the counteroffer. When is the broker required to provide the parties with copies of the paperwork? • within 24 hours • promptly, after obtaining proper acceptance by all parties • after the broker has proofread the documents • at closing
promptly, after obtaining proper acceptance by all parties
A broker may remove money from his or her escrow account in all of the following circumstances, except? • when a court orders the broker to do so • with written permission of all parties to the contract • rescission of the contract by the seller • termination of the contract, by performance
rescission of the contract by the seller
Under certain circumstances, the board may grant reciprocity to a person applying for licensure. In the Virginia License Law, reciprocity means: • a broker may be granted more than one Virginia license • the board may waive all or part of the pre-licensing requirements necessary to obtain a Virginia license • a broker, licensed in another state, may operate as a salesperson in Virginia • a salesperson or broker, licensed in another state, may handle up to six transactions (listings or sales) without obtaining a Virginia license
the board may waive all or part of the pre-licensing requirements necessary to obtain a Virginia license
the broker and the seller
the broker and the seller
A licensee receives a fee from a Home Inspection service for a referral. Such action would be considered a violation of Board regulations, unless: • the home inspector is licensed in Virginia • the fee is less than $25.00 • the fee is disclosed, in writing, to the parties to the contract. • the inspection service provides a warranty.
the fee is disclosed, in writing, to the parties to the contract.
Board regulations require that a broker must return the license of any affiliate in all of the following situations except: • upon request of the licensee to transfer to another broker. • upon request of the Board • upon revocation of the principal broker's license • when the associate broker or salesperson refuses to accept floor opportunity time
when the associate broker or salesperson refuses to accept floor opportunity time
A broker may remove money from his or her escrow account under which of the following circumstances? • when the buyer occupies the property • when the seller agrees • when the closing has been consummated • any of the above
when the closing has been consummated
Board regulations require that complete records of real estate transactions: • be retained by the broker indefinitely • be sent to Richmond, upon request, for audit • are subject to audit by Board investigators at the broker's place of business • be maintained in a safe deposit vault of a federally insured financial institution in Virginia
: are subject to audit by Board investigators at the broker's place of business
The following online advertising require disclosure or a link to the disclosure of the firm's name: • Web page • E-mail, newsgroups, discussion lists, and bulletin boards • Chat sessions • All of the above
All of the above
General requirements for licensure as either salesperson or broker include which of the following? • Virginia residency of 1 year • A degree in real estate • U.S. Citizenship • Applicant must be at least 18 years of age
Applicant must be at least 18 years of age
Cathy had just started to work as a salesperson and on her first day on the job, she obtained an exclusive listing. Although she was very excited, she was also nervous because she wanted to make certain that she filled out the listing properly. Which of the following is not required? • Cathy must get her broker to accept the listing • She must establish a definite date that the listing will expire and indicate that date on the listing • Cathy must provide the seller with a copy of the listing • Cathy must include the net amount that the seller wants to receive from the sale
Cathy must include the net amount that the seller wants to receive from the sale
Janice, an independent broker, lists property. Janice offers Mary, also an independent broker, a portion of the commission if she can sell the property. Mary sells the property and Janice pays Mary per their agreement. The amount of the payment was not disclosed to either buyer or seller. Which statement is true? • Mary is guilty of accepting valuable consideration from someone other than her employing broker • Janice is guilty of paying valuable consideration to another person for an act of brokerage • There is no violation of the law or Board regulations • The brokers' financial agreement must be disclosed
There is no violation of the law or Board regulations
What is the greatest risk when a licensee assists a family member with the purchase of real property? • An unpleasant experience which might jeopardize the relationship • The family member might request a share of the commission • There is the potential of creating an undisclosed dual agency • It would be impossible to treat all parties fairly
There is the potential of creating an undisclosed dual agency