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Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he'll be subject to. What should you tell him? "Capital gains do not apply to investment properties." "Investors don't pay taxes." "Taxes are required, no matter what you do." "You might consider a 1031 tax-deferred exchange."

"You might consider a 1031 tax-deferred exchange." Investors will have to pay capital gains taxes unless they roll those gains into a new investment property and use the 1031 tax-deferred exchange process to do so.

Carson is purchasing a $600,000 property by obtaining an 80/20 loan. How much is Carson financing? $120,000 $420,000 $480,000 $600,000

$480,000

A seller you're working with still owes $50,000 on his mortgage but wants to net $20,000 after the mortgage and 7% commission are paid. What is the minimum for which the house must sell? $75,269 $79,645 $89,900 $90,645

$75,269 Net to seller = sale price x (100% - commission rate) ‒ amount to pay off mortgage: $50,000 + $20,000 = $70,000 / 0.93 = $75,269

A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. How many payments will he make over the course of the loan? 180 240 30 360

360

If a rectangular building were 40 feet by 20 feet, the area would be ______. 800 feet 800 square feet 80 feet 80 square feet

800 square feet

What is a general lien? A claim against a person and all of that person's property A claim against a specific piece of property A type of mortgage lien A type of tax lien

A claim against a person and all of that person's property

Which of the following is true about condominium ownership? A condo is a multi-family dwelling. A condo is a single-family dwelling. It involves proprietary leases. There is a large yard to maintain. Condos are single-family dwellings without yards to maintain.

A condo is a single-family dwelling.

Which statement best describes a trade fixture? A fixture or item installed by a commercial tenant that becomes personal property of the landlord when the tenant moves out A fixture or item installed by a commercial tenant that's considered personal property of the tenant Personal property of the tenant used as a bargaining chip when negotiating a sale Property of the landlord that's used by the tenant and must remain on the premises when the tenant moves out

A fixture or item installed by a commercial tenant that's considered personal property of the tenant

A broker's price opinion is generally written by whom? A buyer An appraiser A real estate broker for a buyer A real estate broker for a lender

A real estate broker for a lender BPOs are generally compiled by a real estate broker in order to give a lender an approximation of market pri

What's it called when a person who has possession of a property through a life estate abuses the property or allows it to deteriorate? Act of waste Escheat Estate at sufferance Reversionary interest This is an act of waste, which damages or deteriorates a property's value.

Act of waste

What are two types of evictions? Actual and constructive Easement and encroachment Proactive and reactive Probationary and statutory

Actual and constructive

What's a covenant between a lessor and lessee? An addendum to a contract added after it's signed An agreement or promise made between the parties A provision for which neither party to a contract is willing to compromise A rent escalation

An agreement or promise made between the parties

What's an MLS? A classified advertising site that charges by the column inch A free service for real estate professionals and the public An online database of active, under contract, sold, expired, and withdrawn listings A proprietary site open only to real estate professionals

An online database of active, under contract, sold, expired, and withdrawn listings

Activities that restrain trade and reduce competition and choices for consumers are considered to be what kind of violations? Agency law Antitrust Fair housing License law

Antitrust

In which of these situations does the disclosure for unrepresented parties need to be provided? Any time an agent is interacting with an unrepresented party and the discussion starts to become substantive Any time an agent speaks to a party who is not represented by an agent Any time an agent speaks to the opposing party without their agent present To any prospective buyer attending an open house

Any time an agent is interacting with an unrepresented party and the discussion starts to become substantive

Which of these items should real estate professionals help first-time buyers and buyers who have experienced recent credit issues to understand? Appropriate financing High-risk loan products Rental options Rental options and high-risk loan products

Appropriate financing

______ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age, transaction price, etc. Bracketing Bridging Substituting Surrounding

Bracketing

Which of the following is an example of the duty of obedience? Advising a client on what to do Carrying out a client's instructions Keeping a client's confidential information confidential Never questioning a client's opinion

Carrying out a client's instructions

What are PCBs? A chemical compound that occurs naturally in the environment A substance resulting from the decay of uranium A substance that grows due to moisture problems Chemical compounds used in cooling and insulating, mainly in electrical transformers

Chemical compounds used in cooling and insulating, mainly in electrical transformers

Which document spells out for buyers all settlement costs in a federally related residential real estate transaction? Closing Disclosure Consumer Notice Freddie Mac borrower disclosure MLS affidavit to consumers

Closing Disclosure

Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed? Commingling and conversion Commingling only Conversion only Deceptive business practice

Commingling and conversion

Which of the following options describes a method by which a licensee can determine an appropriate listing price range? Appraisal Comparative market analysis Creative market analysis Proforma

Comparative market analysis

Which of the following is true about title to a property? Constructive notice to the public of interest in a parcel of real estate occurs when the deed is recorded and physical possession of the property is taken. The last to record has priority. The seller is responsible for paying for title insurance. Title is finalized with the simple transfer of the deed.

Constructive notice to the public of interest in a parcel of real estate occurs when the deed is recorded and physical possession of the property is taken.

Real property ownership may have significant tax advantages. Which of the following is a potential advantage? Depreciation Insurance expenses Taxable gains Transfer tax

Depreciation

What's a licensee's responsibility regarding household lead hazards? Disclosing that there's lead-based paint to a buyer, even when you don't know for sure it's there Disclosing that there's lead-based paint to a buyer when you know about it Making sure all lead is removed, even if you have to personally remove it Making sure your sellers know how to hide the presence of lead-based paint

Disclosing that there's lead-based paint to a buyer when you know about it

You represent a seller as a single agent. What's it called when you're simultaneously working for the buyer's best interests in the transaction without the seller's knowledge? Broker agency Dual agency Split agency Sub-agency

Dual Agency

Cultivated crops are considered personal property even though they're part of the soil, and they're known as _______. Accessories Accoutrements Emblements Produce

Emblements Cultivated crops are considered personal property even though they're part of the soil, and they're known as emblements.

What type of listing agreement provides the most protection for the listing agent's commission? Exclusive listing Exclusive right to sell Net listing Open

Exclusive right to sell An exclusive right-to-sell listing allows a broker to list the property and receive a specific commission no matter who brings the buyer to the seller, as long as the property sells within the terms of the agreement.

Which agency enforces federal fair housing laws? FHA FHEO NFHA NHA

FHEO

The secondary market is comprised of _________________________. FNMA, GNMA, FHLMC, and lending institutions that buy loans from other lenders Lending institutions that lend directly to consumers Savings and loans, thrifts, and credit unions The VA and the FHA

FNMA, GNMA, FHLMC, and lending institutions that buy loans from other lenders

A landlord discovers that his married tenants are expecting their first child. He wouldn't have rented to the couple had he known they were going to have children, so he serves them with an eviction notice and tells them they must be out in 30 days. The landlord is guilty of ______. Familial status discrimination Racial discrimination Religious discrimination Sex discrimination

Familial status discrimination

If Elizabeth is a property manager, she is acting as what of type of agent? Dual General Special/specific Unlicensed

General

Which option best describes a delivery and acceptance of a deed as required? Grantor has acknowledged and voluntarily signed the deed in front of a public notary and delivered it in person to the grantee or an agent of the grantee Grantor has handed the grantee the deed and the grantee has signed it in front of a public notary voluntarily accepting it. Grantor has mailed the deed to the county clerk's office for recording. Grantor has signed the deed and left it on the grantees patio. In order for a deed to be considered transferred, the grantor must acknowledge the deed, voluntarily sign it in front of a public notary and deliver it to the grantee. Acceptance is presumed by the grantee once delivered.

Grantor has acknowledged and voluntarily signed the deed in front of a public notary and delivered it in person to the grantee or an agent of the grantee

Which type of antitrust violation involves two or more businesses conspiring against another business? Group boycotting Market allocation Price fixing Tie-in arrangement

Group boycotting

Jamal is a real estate licensee. What's his responsibility regarding household lead hazards? He must disclose to buyers that there's lead-based paint in a home, but only if he's positive that it's there. He must ensure his sellers know how to hide the presence of lead-based paint. He must make sure all lead is removed, even if he has to personally remove it. He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978.

He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978. Federal law makes it the seller's responsibility to inform the buyer of the possibility of lead-based paint in homes built prior to 1978.

Bob wants an open listing agreement. Why might this not be in Bob's best interest? He'll have to pay multiple real estate commissions. He won't get full representation from any one licensee. It presents an inherent conflict of interest. It prevents him from selling the property himself and not paying a commission.

He won't get full representation from any one licensee.

When a developer selling timeshare units receives earnest money deposits or down payments, what is the developer required to do with that money? Forward the money to the timeshare owner's association Hold the money in the developer's escrow account for no more than three days Hold the money in the developer's escrow account through the buyer's rescission period Maintain the money in a trust fund account that will be used for maintenance of the timeshare complex

Hold the money in the developer's escrow account through the buyer's rescission period

Marnie decided the listing she was representing would be perfect for her family. She had her brother buy it, and after closing, he sold it to her. What is this an example of? An anti-trust violation Illegal self-dealing Legal self-dealing Usury

Illegal self-dealing

Joe and Emma Parsons begin informally working with their neighbor Kyle, who's a real estate licensee, to find a bigger house. The parties have not signed any agreements or discussed the arrangements. This is an example of a(n) ______ agency agreement. Executory Express Implied Unspoken

Implied

What's the amount a lender charges a borrower for using the lender's money? Discount point Interest Principal Usury

Interest

Why was the Civil Rights Act of 1866 monumental among fair housing and anti-discrimination laws? It abolished slavery. It added sexual orientation as a protected class. It provided no exceptions for discrimination based on race or color. It was adopted by the United Nations.

It provided no exceptions for discrimination based on race or color.

Which of the following is a benefit of the MLS from a broker's standpoint? It increases the broker's chance for double-ending the deal. It provides better market exposure, perhaps resulting in a quicker sale at a higher price. It reduces the cooperating commission that must be paid. It's free.

It provides better market exposure, perhaps resulting in a quicker sale at a higher price.

What's a subordination agreement? It's a document that's produced by the court during bankruptcy trials that states the order of payment for creditors. It's an agreement that a previous lender signed allowing a later lender to take over the primary, or first, loan position. It's an agreement that borrowers sign to determine the order or priority for lien holders against their property. It's an agreement the lender signs saying it will provide title to the property to the borrower when the loan is paid off.

It's an agreement that a previous lender signed allowing a later lender to take over the primary, or first, loan position. A subordination agreement is entered into when a lien holder that was in first position agrees to subordinate that position to another lien holder.

What is the purpose of a deed? It offers proof of a lender's lien on real property. It's a method of obtaining an abstract of title. It's used to determine a property's assessed value for property taxes. It's used to transfer real property from one party to another.

It's used to transfer real property from one party to another.

The ______makes it illegal to send unsolicited commercial solicitations via fax without the recipient's permission or an established relationship. Anti-Telemarketer Act of 2000 CAN-SPAM Act of 2003 Do Not Call Implementation Act of 2003 Junk Fax Prevention Act of 2005

Junk Fax Prevention Act of 2005

Licensee Kyle has had a few casual meetings with a potential client, Mary. Mary told Kyle the type of home and area she's interested in, and Kyle mentioned a few homes he thinks Mary might be interested in. Although Kyle hasn't said he will continue to look for homes for Mary, Mary believes he'll do just that. Which of the following statements about this situation is correct? Because Kyle doesn't know if Mary is working with another agent, he's just inadvertently created a dual agency situation. Because Kyle has performed some agency-related tasks for Mary, he has an express agency agreement with her. Kyle and Mary have no agency agreement—either express or implied—until Kyle begins showing Mary homes. Kyle's actions may have created an implied agency agreement with Mary.

Kyle's actions may have created an implied agency agreement with Mary.

Which of the following statements describes laws and ethics? Both laws and ethics establish what actions are deemed illegal and are punishable. Ethics are consistent from person to person, whereas laws may change. It's not a punishable offense to violate either laws or ethics. Laws are made by the government, and ethics are dependent on conscience and values.

Laws are made by the government, and ethics are dependent on conscience and values.

What can a wet environment with little air circulation do? Kill mold Lead to mold growth Prevent mold from growing Remove mold

Lead to mold growth

Plat of Block 28, Woodmen Heights Tract, recorded in Map Book 27, page 68, at the Eldor County Records Office is an example of which essential element of a deed? Consideration Granting clause Habendum clause Legal description

Legal description

Which of these statements about cooperating with other licensees is true? Licensees must cooperate with and compensate other licensees, but only when it's their client's best interest. Licensees must cooperate with and compensate other licensees, even if it is not in their client's best interest. Licensees must cooperate with other licensees, but only if it's in their client's best interest, and there's no obligation to compensate cooperating licensees. Licensees must cooperate with other licensees, even if it is not in their client's best interest.

Licensees must cooperate with other licensees, but only if it's in their client's best interest, and there's no obligation to compensate cooperating licensees.

Which type of events are generally on a title insurance policy's schedule of exceptions? Claim from an owner with an unrecorded deed Claim that was filed on the public record before a title insurance policy's effective date Liens or claims that aren't on the public record Mechanic's liens filed prior to a title insurance policy's effective date

Liens or claims that aren't on the public record

The courts use three primary tests to determine whether something is personal property or real property. What are the names of the three tests? Method of attachment, acknowledgement and adaptation Method of attachment, agreement, and accessory Method of attachment, agreement, and adaptation Method of reimbursement, agreement, and adaptation

Method of attachment, agreement, and adaptation

Google and "if this, then that" alerts can assist you with which of the following? Guaranteeing that the property owner receives all rental income Monitoring your online listings for rental scams Posting your online listings for rent Removing your listings from a rental website

Monitoring your online listings for rental scams

What instruments are commonly used to secure the purchase of real property? Deed of trust and promissory note Mortgage and deed of trust Mortgage and lease Mortgage and promissory note

Mortgage and deed of trust

Uh-oh. You failed to present an offer on behalf of your client in a timely manner. As a result, the seller accepted a lower offer from another buyer. For which of the following could your buyer sue you? Fraud Misrepresentation Negligence Puffing

Negligence

How many hours of continuing education must first-year salespersons take? 16 30 60 None; they must take 30 hours of post-licensing education

None; they must take 30 hours of post-licensing education

Why is it important for a buyer to know if an underground storage tank is present on a property? Buyers don't need to know. Older tanks may leak and contaminate the ground. The buyer may want to use the tank. The buyer will need to check if the tank is correctly sized.

Older tanks may leak and contaminate the ground.

When does the purchase agreement become a legally binding contract? After an attorney reviews it Once both parties sign it Once the seller provides verbal agreement to the buyer's offer The moment the buyer signs the document and sends it to the seller

Once both parties sign it

n the conveyance of real property after death, what trumps any terms specified in the deceased person's will? Heirs' wishes Intestate Nothing Operation of law

Operation of law

Which of the following items is something a lender is prohibited from doing if the lender wants to write qualified mortgages? Amortization Balloon interest Debt-to-income ratios less than 43%. Payback terms longer than 30 years

Payback terms longer than 30 years Debt-to-income ratios may not exceed 43%. Payback terms may not exceed 30 years.

What types of monies received from income-producing properties should be deposited into an escrow account? Current rent and prepaid rent Current rent and security deposits Current rent, prepaid rent, and security deposits Prepaid rent and security deposits

Prepaid rent and security deposits

Which of the following items go into the seller's credit column and the buyer's debit column? Credits Debits Prepaids Prorations

Prepaids

At its most basic level, which type of antitrust violation is a conspiracy between business competitors to set their prices to buy or sell goods or services at a certain price point? Group boycotting Market allocation Price fixing Tie-in arrangement

Price fixing

Robert purchased a new home and obtained financing through First Lending Bank, a regional bank located in his city. First Lending originated the loan, but before Robert's first mortgage payment was due, it sold the loan to CitiMortgage. As a loan originator, what market is First Lending operating in? Federal Reserve System Primary market Secondary market Stock market

Primary market

When a higher-quality property is adjacent to a lower-quality property, it can increase the lower-quality property's value. What economic principle is this? Anticipation Contribution Progression Regression

Progression

Who is responsible for testing private wells for water safety? Property owners The DEP The EPA The local water utility

Property owners

Federal and state fair housing laws are designed to _______: Allow the disabled to pay lower rents Group like-minded people together in neighborhoods and housing units Help those from other backgrounds assimilate into American culture Protect certain classes of people from housing discrimination

Protect certain classes of people from housing discrimination

A licensee says, "This is a dream home with the best views in town." This is an example of _______. A lie Intentional misrepresentation Positive misrepresentation Puffery

Puffery

Real estate, plus all of the interests, benefits, and rights included in ownership, is also known as ______. Estate Land Personal property Real property

Real property

Which tax is usually paid by the buyer in Virginia? Grantor tax Local transfer taxes Past property taxes owed by the seller Recordation tax

Recordation tax

The Consumer Credit Protection Act, which includes the Truth in Lending Act, is often referred to as _________________. Regulation B Regulation C Regulation T Regulation Z

Regulation Z

Lenders will require which type of fund for taxes and insurance? Balloon fund Emergency fund Mortgage fund Reserve fund

Reserve fund

Which of these is NOT a form of ownership for real estate? Joint tenancy Riparian Severalty Tenancy in common

Riparian

Cracks, holes, or rotten areas on a soffit are common ______ issues. Chimney Foundation Roof Window

Roof

When an appraiser relies on comparable properties to estimate the adjusted market price of a property, the appraiser is using the _______ approach. Cost Income Market value Sales comparison

Sales comparison The sales comparison approach relies on comparable properties to help estimate adjusted market price.

The number of properties available describes this factor that influences value. Demand Scarcity Transferability Utility Scarcity is related to demand, and reflects the supply of property, or lack thereof.

Scarcity

If Mega Corporation owns real property, chances are it owns it in ______. Common Joint tenancy Severalty Trust

Severalty

Which term describes the process of real property becoming personal property by detaching it from the land? Accoutrement Annexation Emblement Severance

Severance

When prospecting and soliciting for new business, licensees should be familiar with what federal acts? Do Not Call Implementation Act, CAN-SPAM Act, and Junk Fax Prevention Act Do Not Call Implementation Act, Sherman Act, and Unfair Trade Practices Act Human Relations Act, Fair Housing Act, and Americans with Disabilities Act Sherman Act, Clayton Act, and Unfair Trade Practices Act

Sherman Act, Clayton Act, and Unfair Trade Practices Act

The question, "What's the purpose of this appraisal?" can be answered by which step of the appraisal process? Determine highest and best use. Estimate land value. Identify data needed. State the problem.

State the problem. The first step is to state the problem so the appraiser can identify what data is needed. After that, the appraiser will identify the data needed, gather it, and analyze it.

The Lanham Act gives companies the right to ______. A trial by jury Make misleading advertising claims less than 10% of the time, which is known as the Lanham Percentage Right Pursue clients by whatever means possible Sue competitors that are using deceptive claims in ads

Sue competitors that are using deceptive claims in ads

An organization with many investors who jointly participate in a real estate investment and must adhere to the rules and regulations of the Securities and Exchange Commission is a ______. C corporation Partnership S corporation Syndicate

Syndicate A syndicate is an organization with many investors who jointly participate in a real estate investment and who must adhere to the rules and regulations of the Securities and Exchange Commission.

You demonstrate the fiduciary duty of accounting by ____________. Disclosing any adverse material facts Properly tabulating expenses and income Putting your client's interest ahead of your own Taking care of your client's funds and paperwork

Taking care of your client's funds and paperwork

Your neighbor Mort wants to buy an investment property but he's a busy man and asks you to act as his attorney in fact as well as his buyer's agent. What should you tell Mort? Sure, but it only under a specific power of attorney Sure, but only because I also hold a law degree That would be a conflict of interest That would not be possible because neighbors are not allowed to be attorneys in fact

That would be a conflict of interest

Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh, a local organic farmer. Josh didn't meet the bank's normal underwriting standards, but Mark made the loan because he was able to arrange for a guarantee from ______. Farmer Mac The Farm Credit System The Farm Service Agency The Federal Agricultural Housing Authority

The Farm Service Agency

Which act gives companies the right to sue a competitor for making deceptive ad claims? The Gramm-Bliley Act The Lanham Act The Privacy Act The Truth in Advertising Act

The Lanham Act-The Lanham Act is a federal act that provides companies with the right to sue competitors for making deceptive ad claims.

Which entity ensures that contractors perform their work according to code by inspecting their job sites? City hall The attorney general The building department The secretary of state This is the role of building department inspectors.

The building department

Whose responsibility is it to keep track of all buyer contingency deadlines and ensure they're not missed? The buyer The buyer and the buyer's agent The seller The seller and the seller's agent

The buyer and the buyer's agent

Which of these situations would result in the earnest money being disbursed to the seller? The buyer backs out when the appraisal comes in too low to satisfy the contingency. The buyer includes hard money in the purchase offer, then terminates the sale when the appraisal comes in low. The escrow agent converts the earnest money. The seller gets cold feet and cancels the transaction.

The buyer includes hard money in the purchase offer, then terminates the sale when the appraisal comes in low.

In Virginia, how long does a buyer have to initiate a court action for a breach of contract? The buyer has six years to initiate a court action. The buyer must initiate action within five years of the date of the contract. The buyer must take action immediately. There is no time limit as long as the buyer can prove a breach of contract occurred.

The buyer must initiate action within five years of the date of the contract.

Under standard lease provisions, a demising clause would contain ______. A requirement for legal competence The date the tenant will take possession of the property The schedule for rate increases The street address and unit number, if applicable, and possibly the legal description

The date the tenant will take possession of the property A demising clause states when the landlord will lease the property and the date the tenant will take possession.

What's a foreclosure? A property sale that occurs in less than one week A sale that fails to receive a high enough bid at auction and then falls to the bank's ownership The forced sale of a property due to the borrower defaulting on the mortgage loan The sale of a property when the market value of the home is less than what is owed, plus closing costs

The forced sale of a property due to the borrower defaulting on the mortgage loan

The listing agreement is a legally binding contract between ______. The buyer and seller The buyer's agent and seller The listing broker and seller The seller and lender

The listing broker and seller

Who is responsible for testing community wells? The DEP The EPA The local health department The local water utility

The local health department

The Virginia Residential Landlord and Tenant Act specifies how the landlord must treat rental payments. What's the proper handling of the funds if the tenant prepays? The funds must be kept on site, in the landlord's office or similar, secured place. The funds should be deposited into the landlord's regular business account. The funds should be used for whatever the landlord deems necessary for the maintenance of the property. The money must be put in an escrow account in a federally insured depository and used only for rent.

The money must be put in an escrow account in a federally insured depository and used only for rent.

Edgar's in the process of selling his home as a short sale. What's a short sale? A property sale that occurs in less than one week A sale that fails to receive a high enough bid at auction, and then falls to the bank's ownership The forced sale of a home, due to the borrower defaulting on the mortgage loan The sale of a property at an amount less than is owed, not including closing costs

The sale of a property at an amount less than is owed, not including closing costs

If you're in a caveat emptor state, which statement about property condition disclosures is true? The seller isn't obligated to proactively disclose property defects. The seller must conduct a home inspection in addition to providing disclosure forms. The seller must proactively disclose any known defects. The seller must proactively disclose any known defects and the seller must have a home inspection conducted.

The seller isn't obligated to proactively disclose property defects. In caveat emptor states, while sellers can't lie outright or actively conceal a problem—and must honestly answer prospective buyers' questions when asked—they aren't obligated to point out the home's flaws or defects to buyers.

Where can you find out what's not covered by a title insurance policy? The county clerk's office The Internet The lender's attorney The title insurance policy's schedule of exceptions

The title insurance policy's schedule of exceptions

Annie and George have been saving and are finally ready to purchase their first home for their family (including their two toddlers). They want to make an offer on a sweet little bungalow in a quiet Richmond neighborhood. If the sellers are represented by a real estate licensee, which situation would be a violation of fair housing laws? Their offer is rejected because it's too low. Their offer is rejected because the seller knows the neighbors don't like children. They rescinded their offer when a house they were previously outbid on became available again. They rescinded their offer when their inspection revealed structural issues with the house.

Their offer is rejected because the seller knows the neighbors don't like children.

What happens when a married couple who owns a property as tenants by the entirety divorce? Their ownership reduces to tenancy in common or joint tenancy. Their ownership rights terminate. The one who records title first gets the property. They become joint tenants with right of survivorship.

Their ownership reduces to tenancy in common or joint tenancy.

What protects the buyer before the sale and can reimburse the buyer after the sale if a title issue arises? Homeowners insurance Lien proceeds Special deed Title insurance

Title insurance

What is the purpose of the Common Interest Communities Law? To administer and promulgate fair housing laws within the scope of common interest communities. To collect taxes from common interest communities. To create a policy board and regulations to administer the Virginia Property Owners' Association Act, Cooperative Act, Condominium Act, and Time-share Act. To develop regulations for licensure of real estate professionals who specialize in common interest communities.

To create a policy board and regulations to administer the Virginia Property Owners' Association Act, Cooperative Act, Condominium Act, and Time-share Act.

What's the purpose of a home inspection? To determine whether the purchase price reflects the property's value To help licensees uncover red flags To help sellers complete disclosure forms To paint a true picture of a property's condition

To paint a true picture of a property's condition

What's the purpose of a POA's restrictive covenants? To encourage the residents to live there long-term To make it harder to sell the properties within the POAs To preserve a community's overall aesthetic To weed out people of certain ethnicities

To preserve a community's overall aesthetic

What's the purpose of testing with regard to fair housing? To educate applicants To increase fines on landlords To punish blatant discrimination To uncover hidden discrimination

To uncover hidden discrimination

Why does HUD test for housing discrimination? To create revenue through fines To educate the public To punish blatant discrimination To uncover hidden discrimination

To uncover hidden discrimination

Which of the following is a residential dwelling with attached walls, where the owner also typically owns the land on which the home sits? Apartment Condominium Single-family detached home Townhome

Townhome

The ease with which the property can be conveyed to another describes which factor that influences value? Demand Scarcity Transferability Utility

Transferability

Virginia real estate licensees need to be aware that this group is protected from discrimination along with federally protected classes. Gun owners Smokers Students Transgender

Transgender

Which term refers to a permitted deviation from current zoning restrictions that allows an owner to use land for a purpose that's otherwise prohibited, and requires the owner to prove the zoning creates an unnecessary hardship? Moratorium Property variance Special use permit Use variance

Use variance

What effect will a property's utility have on the value if it's currently uninhabitable? Utility doesn't influence value. Value will be pushed downward. Value will be pushed upward. Value will remain the same.

Value will be pushed downward.

Which of the following statements best describes property disclosures in Virginia? Buyers have the option to require full seller disclosure or waive disclosure. Property condition disclosures are not required. Virginia is a caveat emptor state, so other than required items, sellers generally make no representations about a property's condition or location. Virginia is a full seller disclosure state, meaning sellers proactively inform sellers about all known material defects.

Virginia is a caveat emptor state, so other than required items, sellers generally make no representations about a property's condition or location.

What is the term used to describe submerged land below the mean water mark? Aqueducts Channels Mud pits Water bottoms

Water bottoms Water bottoms are the land below the mean water mark. Use or disturbance of water bottoms requires a Joint Permit Application from the Virginia Marine Resources Commission.

Mary is preparing a purchase offer for her buyer client. It's a pretty standard offer: a little less than list price, with the seller paying a little toward the buyer's closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay? No, Mary is not an attorney and shouldn't prepare contracts. No, Mary should have her client prepare the offer. No, Mary should hire an attorney to prepare the purchase offer. Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney).

Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney).

Kris made an offer on Lincoln's townhouse. However, Kris offered no earnest money. If Lincoln accepted her offer, would it be binding? No, because Lincoln wouldn't have any liquidated damages if Kris defaulted. No, because there's no consideration. Yes, because earnest money isn't part of a binding contract. Yes, because the offer to buy is the consideration.

Yes, because the offer to buy is the consideration.

Cameron had a listing agreement with a client named Ben. Ben got mad at Cameron and said he was terminating the agreement. Can Ben do this? Only if the property is valued at more than $250,000. Yes, but certain terms of the agreement may still be binding upon Ben. Yes, it's a client's prerogative. Yes, with 30 days' notice.

Yes, but certain terms of the agreement may still be binding upon Ben.

Which of the following best describes the fiduciary duty of confidentiality? You must keep all material facts confidential. You must keep all parties' information confidential. You must not discuss confidential matters with your client. You must not share your client's confidential information.

You must not share your client's confidential information.

You're representing Janice in the purchase of a home. Under which of the following instances would it be unacceptable to disclose confidential information? Disclosure is necessary to defend yourself against an accusation of wrongful conduct Janice gives you written permission to disclose the information The information is made public from a source other than you You suspect the disclosure will enable Janice to buy a home at a lower price

You suspect the disclosure will enable Janice to buy a home at a lower price

You have found the perfect home for Lucy and she is ready to make an offer. The home was built in 1938. Who is responsible for scheduling paying for the home's lead inspection? The buyer The listing agent The mortgage company The seller

buyer

ow many single-property houses may an individual own in Virginia and still be exempt from fair housing law? five four three two

three