Virginia Real Estate Testprep
Taxes are $2,100 per year. The tax rate is $3.50 per $100. The assessed value of the property is 40% of the estimated market value. What is the market value of the property?
$150,000.
A salesperson received 1.5% commission on all sales and listings sold. What was the total value of the real estate handled last year if the agent's income was $33,000?
$2,200,000. $33,000 / .015 = Total Value. Total value handled = $2,200,000.
Carolyn buys a home for $122,000 agreeing to the lenders terms of a 75% loan and paying two loan discount points. How much money does Carolyn need to bring to settlement?
$32,330 $122,000 sale price X 75% = $91,500 loan. $122,000 sale price - $91,500 loan = $30,500 down payment. $91,500 loan X 2% = $1,830 for points. $30,500 down payment + $1,830 points = $32,330.
The net income on a property is $350 per month which represents a 9.2% annual rate of return on the value of the property. What is the approximate value of the property?
$45,650 $350 X 12 months = $4,200 annual income. $4,200 divided by 9.2% = $45,652.17 or $45,650
If a first time offender is found to have violated the Virginia Fair Housing Laws, what is the maximum civil penalty that the Attorney General can impose?
$50,000.
The statute of limitations as it applies to time-share properties regarding inaccurate information in the POS or any contract is
2 years.
A two-story office building is 10.5 feet high on each floor, 18 feet wide and 54 feet long. How many cubic yards is in the entire building?
756 Length X Width X Height 54 ft. X 18 ft. X 10.5 ft. x 2 stories = 20,412 cubic ft. 20,412 cubic ft. divided by 27 cu. ft. per cu. yd. = 756 cu. yd.
According to the 1988 Fair Housing law, which of the following is NOT considered to be handicapped?
A person addicted to a controlled substance.
Under Virginia law, the defining feature that distinguishes whether a particular action is a "ministerial act" which does not require a real estate license or an act that does require a license is whether the action:
Involves discretion or judgment
A licensee has refused to pay a special assessment of $20.00 to the Transaction Recovery Fund even after receiving a second notice. At this point, the licensee:
Is automatically suspended after 30 days.
A seller listed property for sale. There were a limited number of houses available in the area. There were also a great number of buyers interested in purchasing homes in that area. What would MOST LIKELY happen to the value of the seller's property?
It would increase in value
Which of the following is prohibited by RESPA?
Kickbacks
How can the extent of an encroachment always be discovered?
Land survey
Which of the following transactions would require a residential property disclosure statement?
Lease with option to buy
The loan contingency clause in a valid sales contract will contain all of the following EXCEPT the:
Name of the lender
In determining total square footage of a dwelling, the appraiser would consider:
Outside dimensions.
A salesperson may work for a broker, licensed in another jurisdiction, other than his or her employing broker, with the:
Permission of his or her employing broker.
One of the functions of the FHA is:
Provide insurance protection to lenders.
Which of the following statements BEST illustrates the difference between puffing and misrepresentation?
Puffing is an exaggeration, not concealing material facts; misrepresentation is unjustly harming a person by concealing material facts
A licensee may only have his or her real estate license revoked by the:
Real Estate Board.
A seller contacted 3 brokers and asked each to suggest the listing price for his property. Broker A said $78,000. Broker B said $79,000. Broker C said $91,000. The seller listed with Broker C and the house later sold for $76,000. Broker C is guilty of violating which of his or her agency responsibilities?
Reasonable care
As a result of a complaint filed with the Real Estate Board, it is determined that a broker with a Florida license is selling real estate. Under these circumstances, the Board could:
Refer the matter to the office of the Commonwealth Attorney.
A buyer of a resale time-share has the right to rescind a contract within:
5 days following contract ratification or receipt of certificate of resale, whichever is later
The Real Estate Board has the responsibility of settling disputes between:
A broker and a salesperson, only if there is a violation of license law or Board regulation involved in the dispute.
A Virginia real estate license must be renewed at periodic intervals. The regulations specify that:
A broker must renew his or her license every two years in the month that it was issued.
Adeline is selling her own home as a For Sale By Owner (FSBO). On Sunday, a full price offer is made by an Asian couple. Adeline refuses the offer made by the couple. On Monday, Adeline accepts an offer, $4000 below the asking price from a Caucasian family. Has Adeline violated any laws and if so which one?
Adeline has violated the Civil Rights Act of 1866
How can a broker best demonstrate his compliance with Fair Housing laws?
All of the above a. Display the Equal Housing Opportunity Poster in the office and all places of business b. Document all transactions with all clients or customers c. By showing all prospective buyers all property for which they are financially qualified
A broker obtains an open listing on a piece of property. In order to collect a commission on the sale of this property, the broker must be able to prove which of the following?
All of the above a. He was licensed at the time of the sale b. He was employed at the time of the sale c. He was the procuring cause of the sale
How can an agency relationship be created?
Any of the above a. Written document b. Action of the parties c. Words of the parties
A violation of the Virginia license law may subject a broker to:
Any of the above are possible. a. Suspension of his license and a fine. b. A fine imposed by the Real Estate Board. c. Revocation of his license.
Unless a brokerage relationship has been established, Virginia agency law presumes that the third party in the real estate transaction is a(n):
Customer
Mr. Gregory has a home for sale with a sign, FOR SALE BY OWNER, in the front yard. Salesperson Gary calls, identifies himself and asks for the key to show the property. Mr. Gregory agrees. Which of the following best describes any agency relationship that may exist?
Gary's broker is the agent of Mr. Gregory for a reasonable time.
A broker would be in violation of the Federal Fair Housing Law for all of the following actions EXCEPT:
Hiring salespeople, on the basis of sex, regardless of experience or qualifications.
A contract cannot be consummated because of a disagreement between buyer and seller. The broker still has the earnest money deposit in his escrow account. The seller has demanded that the deposit be given to him and the buyer has demanded that the deposit be returned to her. What can the broker legally do?
Hold the funds until ordered by the court to disburse
Which of the following would cause a deed to be void?
Illegal purpose
Although the law mandates that a brokerage relationship have a definite termination date, in the event that a date is not specified, the relationship will terminate:
In 90 days
The three (3) approaches used in the appraisal of real property are:
Income; cost; market data
When a salesperson takes a listing, the amount of the commission is determined by the:
Seller and the broker
An agent had a listing which would expire on July 5. On July 1 the agent showed the property to a buyer. The seller plotted with the buyer and sold it to him a few days after the listing expired. Who would the broker sue for the commission?
Seller for the entire commission
The Board feels a broker is not properly managing her escrow account. Upon request, the court appoints a receiver to manage the account. After the investigation, it is determined that the broker is innocent of any wrongdoing. Who is responsible for the expenses and fees of the court appointed receiver?
The Board, using money from its operating budget
Claims for payment from the Transaction Recovery Fund are filed with:
The Real Estate Board
A postal employee, Smith, has a friend, Berry, who is a real estate salesperson. On occasion, Smith gives Berry some information about people leaving the area so that Berry may contact them about listing their property for sale. When the information leads to a listing which sells, Berry pays Smith $100 for the tip. Which of the following is true?
This is a violation of Virginia License Law
Baird and Carr both used a shared driveway located on the boundary line between their two properties. Baird died. Which of the following statements BEST describes this situation?
This is an appurtenant easement and the right of use continues regardless of any change in ownership
In Virginia, a property may be sold to satisfy a real estate tax lien:
Three years from the date due with 30 days' notice to the owner.
Which of the following is NOT a test of a fixture?
Time of attachment.
A listing broker has an agency relationship with his client (the seller). The broker also has a moral and statutory obligation to all prospective customers (buyers). One way to describe the relationship with the buyer would be:
To do what is right.
The primary purpose of the secondary mortgage market is.
To ensure a flow of mortgage money to primary lenders.
An optionee is obligated to do which of the following?
To pay consideration for the option right
A court action to remove a cloud from the title is called an action or suit:
To quiet title
Which of the following describes market value?
Most probable selling price
A brokerage relationship may be terminated prior to completion of the contract in which of the following circumstances?
Mutually agreed-upon termination.
An owner listed a property with Broker Dole on May 1. On July 1 the owner was declared legally insane. The broker brought a full price offer on July 3 to the seller which was accepted. How much commission is Broker Dole due?
No commission since the listing was terminated when the owner was declared legally insane
A listing agreement will automatically terminate:
On the date specified in the listing agreement
All forms of advertising and marketing must include the name of the firm AND:
Only the name of the firm as known to the public is required.
A restrictive covenant in a deed could:
Prevent the use of the property as a dance hall
The actual amount of money paid for a particular parcel of real estate is said to be that property's:
Price
Under Truth-in-Lending, full disclosure of all financing terms is required. Which of the following could be omitted and NOT violate the regulation?
Selling price of the property
If there is a breach of a contract for the sale of real property, an option available to the non-defaulting party is:
Suit for specific performance or actual damages.
A buyer purchased a tract of land at a tax sale to satisfy the claim for delinquent taxes. If no one redeems the property during the statutory time period, the purchaser would most likely receive which of the following as evidence of ownership?
Tax deed
The enforcement of the Fair Housing Law of 1968 is the responsibility of:
The Department of Housing and Urban Development.
After an offer to purchase has been made and accepted, the broker may change the contract, under which of the following circumstances?
With the approval of all parties involved in the contract.
If a person feels they have been discriminated against, when must they file a claim in civil court?
Within 2 years
Which of the following is an example of the police power of government?
Zoning and building codes
The document that determines what type of improvements you can build in a certain area is:
Zoning ordinance
A broker, in an attempt to sell a property quickly, offers a bonus of $500 to the person that submits an acceptable offer on the property. To whom may the broker pay this bonus?
a. Any other licensed cooperating broker.
Real estate licenses of salespersons, brokers, and firms all expire:
Biennially on the last day of the month in which the license was issued.
A defeasance clause in a mortgage will take effect when the:
Borrower repays the entire debt.
Soil from Smith's land is washed down and deposited on Brown's property. Who owns the soil?
Brown
The Civil Rights Act of 1866:
Was the underlying basis for the decision in Jones vs. Mayer.
If a licensee purchases real estate in their own name:
He or she must disclose the fact that they are licensed.
Carol had just started to work as a salesperson. On her first day she obtained an exclusive listing. The listing must include all of the following information, except:
The net amount that the seller will receive from the sale.
A buyer purchases a piece of property and pays equal amounts over 5 years, with a lump sum payment at the end of that time. This loan would be considered:
A balloon loan.
After a closing, all of the following documents are recorded EXCEPT?
A certified copy of the Closing Disclosure.
The accumulation of soil on an owner's property caused by the movement of water is known as:
Accretion
An owner has entered into a listing agreement with a broker. During the period of the agreement, the owner sells the property himself. The owner is not legally required to pay a commission to the broker. What type of listing agreement did the owner have?
An exclusive agency
The Parol Evidence Rule controls which of the following:
An oral agreement leading to a written contract.
An offer is accepted by all parties with a settlement date of September 5. Three days prior to settlement the purchaser notifies the seller that funds are not available and settlement cannot take place as scheduled. Which of the following options are available to the seller?
Any of the above a. Sue for specific performance b. Sue for monetary damages c. Allow rescission of the contract
If a seller learns, after he has entered into a valid contract with a buyer, that the broker was representing the buyer, the seller has the right to:
Cancel the contract, without obligation to either buyer or broker
A person that authorizes another to act for him or her is known as the:
Client
Which of the following is NOT specifically protected by fair housing statute?
Current drug users.
The composition of the Real Estate Board includes:
Either salespersons or brokers with 5 years active experience and consumers (unlicensed persons).
The amount of a broker's commission is:
Established by agreement between the broker and the seller/buyer.
The HUD information booklet must be given to which of the following?
Every person who submits a loan application to a lender over which RESPA has jurisdiction.
According to the 1988 amendments to the Federal Fair Housing Law, which of the following would be allowed regarding a handicapped person in an apartment complex?
Evicting for playing loud music (excessive noise) at night
If a licensee disclosed information relative to a person being infected with the HIV virus, the licensee would be in violation of the:
Fair housing laws.
The Virginia Fair Housing Law prohibits discrimination on the basis of:
Familial status.
The largest "bundle of rights" to real estate is a?
Fee simple estate.
Building codes standardize all of the following features, EXCEPT:
Financing
The Virginia Time-Share Act defines a time-share as a right to occupy a unit or any of several units during:
Five or more separated time periods over a period of at least five years coupled with either a freehold estate or an estate for years in a time-share project
Persons appointed to the Real Estate Board, serve for:
Fours years and may serve for one additional four year term.
Which of the following groups was NOT protected by Title VIII of the 1968 Federal Fair Housing Law as originally written?
Handicapped.
A salesperson lists a home. The house burns down prior to receiving an offer. Which of the following is true in this situation?
The listing automatically terminates
When a seller and licensed salesperson agree to a listing, on terms acceptable to the broker, an agency relationship is established between:
The listing broker and the seller
A listing agreement must contain all of the following information EXCEPT:
The net amount that the seller will receive
If a motel clerk furnishes a broker with leads to prospective buyers in exchange for a percentage of the commission collected, which of the following would be true?
The clerk must be licensed as a broker
A broker is representing a buyer. When the broker is showing property, he may NOT disclose to his buyer:
The current owner is infected with the HIV virus.
If a deed restriction prohibits a use permitted by zoning, then:
The deed restriction controls.
Which of the following is NOT true about metes and bounds?
The distances shown in the deed will prevail over the actual distances measured
When acting as an independent contractor through a separate written agreement, instead of as a standard agent, a licensee is subject to:
The duties and responsibilities as stated in the independent contractor agreement.
If an individual defaults on a $100,000 mortgage and only $95,000 is received by the lender as a result of a court-ordered sale (foreclosure), which of the following is true?
The lender may be entitled to a $5,000 judgment against the original borrower.
