RE License Test
1. A salesperson takes an exclusive-right-to-sell listing on 4/1 for 90d but moves out of the area on 5/15 and has his license placed on inactive status on 5/1. The listing would: a. Remain in force b. Terminate on May 15 c. Revert to an open listing d. Terminate on June 1
Correct answer: A - Feedback: The listing agreement is between S and the BROKER. The fact that the salesperson moves out of the area has no bearing on the validity of the contract and would therefore remain in force.
If a broker opens a branch office in Virginia, which of the following is true? Select one: a. Upon proper application, the Board will issue a license for the Branch. b. A salesperson with five years experience can manage the office. c. The broker must advise the Board the names and addresses of all licensees assigned to the new office. d. The broker must hire at least one salesperson.
The correct answer is: Upon proper application, the Board will issue a license for the Branch.
36. Which of the following is not one of the 3 required tracks for Post License Education: a. Property Management. b. Commercial Real Estate. c. Suburban Real Estate. d. Residential Real Estate.
Correct answer Suburban Real Estate. - Feedback: The 3 Post License Education tracks are Residential RE, Commercial RE and Property Management.
52. SOL -
for prosecution of individuals practicing RE w/t a license is 1y from the discovery of the offense, but no greater than 5y after the occurrence.
Recission Periods in Virginia
Condominium: Initial Offering Resale 10 days 3 days if hand delivered 6 days from date of postmark Association can charge up to $100 for the POA packet and resale certificate Cooperative: Initial Offering Resale Time Share Initial Offering Resale 10 days 5 days 7 days- Public Offering Statement must be delivered prior to signing of contract 5 days from receipt of Certificate of Resale Association may charge up to $100 for certificate
36. Which of the following is not one of the 3 required tracks for Post License Education: a. Property Management. b. Commercial Real Estate. c. Suburban Real Estate. d. Residential Real Estate.
Correct answer Suburban Real Estate - Feedback: The 3 Post License Education tracks are Residential RE, Commercial RE and Property Management. .: The 3 Post License Education tracks are Residential RE, Commercial RE and Property Management. .
Virginia Time Share Act-
initial purchaser has 7 days following the execution of the contract to rescind Association may charge up to $100 for certificate
A property was purchased for $115,000 and has appreciated 8% each year over the value the previous year for the last five years. What is its present value? a. $156,456 b. $161,000 c. $168,973 d. $182,490
The correct answer is: $168,973 - Feedback Year 1: 115,000 * 1.08 = 124,200.00. Year 2: 124,200* 1.08 = 134,136.00. Year 3: 134,136 * 1.08 = 144,866.88. Year 4: 144,866.88 * 1.08 = 156,456.23. Year 5: 156,456.23 * 1.08 = 168,972. Present Value: = $168,973
22. Condominiums come under which of the following? a. Homestead Act b. Horizontal Property Act c. Parallel Property Act d. Vertical Property Act
The correct answer is: Horizontal Property Act - Feedback: Condominiums are governed by a Horizontal Property Act or Condominium Act.
58. To transfer license to another broker
submitting a transfer application to REB w/ fee. Application shall include the signature of new principal/supervising broker with signature authority and shall effective upon execution
Sole proprietor (principal broker owner):
means an individual broker, not a firm, trading under his or her own name, or under a fictitious or assumed name, as provided by the regulations. An individual trading under an assumed or fictitious name must be properly registered with the Board before a license will be issued. A separate firm license is NOT required.
50. Which of the following is NOT a form of steering? a. Excluding African Americans/ Hispanics from a white community. b. Attempting to attract only Hispanic prospects to an Hispanic neighborhood. c. Attempting to have white homeowners sell their homes by representing that African Americans are attempting to buy in the neighborhood. d. Efforts to keep Asians out of a white neighborhood.
Correct answer is: C. - Feedback: Attempting to induce members of one race to sell their properties by saying that members of another race are moving into the neighborhood is BLOCKBUSTING rather than steering. Blockbusting & steering are violations of the Fair Housing Act.
47. A fuel oil tank on the site of a house that is being sold is half full. If the tank were 3' wide by 4' long & 3' high, how much would B owe S for the oil if it were currently selling for $5 per/ft3? a. $90.00 b. $18.00 c. $180.00 d. $36.0
Correct answer: $90.00 - Feedback: Multiply 3' wide by 4' long and 3' high = 3 X 4 X 3 = 36 ft3. Now multiply by $5 ft3 X 5 = $180 but don't forget to read the question again, it said the tank is half full, so divide by 2= 90. The buyer would owe the seller $90.00.
29. The 1988 amendment to the Fair Housing Law affords protection on the basis of familial status. Which of the following best defines a family as it applies to this amendment? a. Legally married persons. b. A household in which there are children related to the adults by blood. c. A household in which there are children under 18 d. Any household in which there are children, regardless of age.
Correct answer: A household in which there are children under 18 - Feedback: family is defined as a household in which there are children under the age of 18 (and would also include a pregnant woman).
19. A homeowners' association, or HOA, would be required for which type of subdivision? a. Condominiums only. b. Planned unit developments only. c. Both condominiums and planned unit developments. d. Neither condominiums nor planned unit developments.
Correct answer: Both condominiums & planned unit developments. - Feedback: Both condominiums & planned unit developments will have common areas and will need HOAs. (Cooperatives have common areas as well but they are governed by the corporation that owns the complex.)
48. If a broker wants to appoint her sales manager as Vice President of the firm, the sales manager: a. May continue to list & sell under his sales license. b. Must be named as a director of the firm. c. Must become licensed as a broker or associate broker. d. Must own at least 5% of the corp.
Correct answer: C - Feedback: All officers of a firm must be licensed as brokers if they engage in acts of brokerage. The title of VP indicates that the sales manager would become an officer.
38. When Lori passed her license examination she placed her license on inactive status. 2y later she decides to activate her license with a local firm. Lori needs to: a. Sit for the state portion of the license examination. b. Take a 15h RE course that reviews VA laws & regulations. c. Complete an activate form and pay a fee. d. Advise the Board of her intent and request her license be sent to her.
Correct answer: Complete an activate form & pay a fee. - Feedback: Lori will need to complete an activate form & pay a fee.
21. Environmental concerns in real estate would include: a. The presence of asbestos. b. The level of radon gas. c. Urea-Formaldehyde insulation. d. Each of these choices.
Correct answer: Each of these choices - Feedback: Each of the given choices is an issue of environmental concern. .
31. All of the following statements are true with regard to restrictive covenants in a deed EXCEPT: a. The covenant runs with the land. b. The covenant may be removed without legal action. c. The covenant does not need a termination date. d. The covenant might be at variance with Fair Housing laws.
Correct answer: The covenant might be at variance with Fair Housing laws. - Feedback: The Federal Fair Housing law and state laws make it illegal to restrict the sale or lease of property based on a person's race, color, religion, national origin, sex, handicap or familial status. Any restrictive covenants in a deed at variance with Fair Housing would be unenforceable.
3 Different Types of Real Estate Brokerage
1. Standard Agency 2. Limited Service 3. Independent Contractor
Broker Requirements Pre-licensed education for Broker-
180 hours (12 semester hours) of board approved study and must be actively engaged 36 of the 48 months prior to application. Must complete 24 hours of continuing education for broker renewals every 2 years.
54. Pre & Post-License Education -
60h pre 30h post w/n 1y. his license will be placed on inactive status until the course is completed.
Responses to the Board
: A licensee must respond to an inquiry within 21 days. If asked, a licensee must provide records to the board within 10 days.
Escrow Funds
: must be placed into escrow by the 5th business day after closing for a purchase & after receipt for a lease. Escrow records must be maintained for 3 years
What Transactions Are Affected by TRID?
As noted above, nearly all closed-end consumer mortgage loans will require the use of the new TRID forms and adherence to the deadlines they prescribe. They are to be used on all new loan applications received by lenders. The forms became mandatory on October 3, 2015.
TRID LE timeline?
The Loan Estimate must be provided within three business days of receiving the loan application, and the prospective borrower then has 10 days to respond as to whether he or she wishes to proceed. Although the lender may pull a credit report, the lender is NOT permitted to verify or document the loan applicant's claimed income before providing the Loan Estimate. This may mean that initial "prequalification" of a borrower becomes fairly meaningless!
24. Redlining -
a discriminatory practice in which services are withheld from potential customers who reside in neighborhoods classified as 'hazardous' to investment; these neighborhoods have significant numbers of racial and ethnic minorities, and low-income residents
cooperative
has 10 days from initial offering
Net Listing:
listing broker's commission is anything over a target price, but it is illegal in most states.
Exclusive Right to Sell:
the seller/client agrees to list the property w/ a single broker (exclusive agent) and also agrees to pay the broker commission even if the owner sells the property. {listing broker is paid no matter who finds the buyer} If owners listed with Larry & the owner's found a buyer & negotiated a sale they will still pay Larry
Exclusive Agency:
the seller/client agrees to list the property with a single broker (exclusive agent) and pay that broker a commission if a licensee (any broker) sells the property, but the owner reserves the right to sell the property himself and not pay the commission. Net Listing: listing broker's commission is anything over a target price, but it is illegal in most states. Open listing: oral listing agreement given to any number of brokers, only the broker who is the "procuring cause" gets paid.
64. Status Change Principle Broker
when a principal broker is discharged/terminates active status firm must REB & return license w/n 3d. Must indicate on license date of termination & must sign
15. Zoning ordinances are rights of: a. The Federal government. b. State governments. c. Counties, towns and municipalities. d. Private land owners.
Correct answer: Counties, towns & municipalities. Feedback:It is the counties and towns that establish zoning ordinances. In some cases these decisions may be directed by either State or Federal regulations.
40. A broker may NOT pay a referral fee or shared commission to a: a. Licensed member of his firm. b. Broker from another jurisdiction. c. Referral entity anywhere in the U.S. d. Licensed member of another firm.
Correct answer: Licensed member of another firm. - Feedback: Referral fees/shared commissions are not paid to a licensed member of another firm. All fees & commission payments must be made to the principal broker who then compensates his agents according to their separate agreements. This includes referral fees.
60. Expired License -
If a licensee does not renew his license prior to the expiration. Reinstatement up to 1y following the proper renewal date: W/n 30d - a licensee may reinstate by paying the regular renewal fee and completing required CE. May NOT practice RE until properly reinstated. 31d - 1y-may reinstate by paying a reinstatement fee & completing required CE. May NOT practice RE until reinstated.
Independent Contractor
Independent contractor is NOT an agent. A licensee who wishes to act as an independent contractor must (1) enter into a brokerage relationship based upon a brokerage agreement that specifically states the licensee is acting as an independent contractor and not as an agent; (2) the licensee will have the obligations agreed to by the parties in the brokerage agreement; and (3) the licensee will have no obligation under §§54.1-2131 through 54.1- 2135 (those obligations listed in the Standard Agency Obligations section below). The term "independent contractor" used here to describe a brokerage relationship has none of the meanings attached to it when the same term is used by the IRS to describe an entirely different situation. Many states use the term "transaction broker" to avoid this confusion.
who is responsible for the timely delivery of documents to the consumer, and who may also be liable if certain costs exceed the tolerance limitations that TRID establishes?
It is the lender who is responsible for the timely delivery of documents to the consumer, and who may also be liable if certain costs exceed the tolerance limitations that TRID establishes, so it changes the relationship between lenders and mortgage brokers. TRID also increases the likelihood of transactions being delayed, because certain changes that might occur between the delivery of the Closing Disclosure and the closing date will trigger a new 3-day waiting period.
must return the license by certified mail to the board so that is it received within 10 calendar days of the status change.
Status Change of Salesperson or Associate Broker Principal broker
When a salesperson terminates affiliation with a broker, what is the salesperson required to do? a. Give the broker all listings acquired during affiliation with the broker. b. Nothing. c. Return all customer cards to the employing broker. d. Mail his or her license to the Board.
The correct answer is: Nothing.
14. On September 12, 2014 a residential property had the following liens filed against it: a 1st mortgage, a mechanic's lien and a special assessment. On May 20, 2015 a 2nd mechanic's lien was filed against the property. Which lien has priority?
a. Mortgage. b. 1st mechanic's lien. c. Special assessment. d. 2nd mechanic's lien. Feedback: The special assessment would have priority over all the other liens. Special assessments are a form of real property tax & property taxes have priority over other liens. Correct answer: C
A lien that is established by the state legislature is
both a statutory lien and an involuntary lien. The correct answer is: both a statutory lien and an involuntary lien.
63. Status Change agent associate broker
when salesperson/associate broker is discharged/terminates active principal broker must return the license to REB so that it is received w/n 10d. Must indicate date of termination & sign.
41. A condo association may charge a fee for the preparation of the required resale documents of up to: a. $50. b. $75. c. $100. d. An amount determined by the number of pages that must be copied.
Correct answer: $100. -Feedback: A condo association may charge any amount up to $100 for preparation of the required resale documents.
What is the SOL for practicing RE without a license?
The Statute of Limitations for prosecution of individuals practicing real estate without a license is one year from the discovery of the offense, but no greater than 5 years after the occurrence.
Change in License Information
With a name or address change, the board must be informed in writing within 30 calendar days of the changes Individual licenses need to notify the board of name or home address change Principal brokers need to notify board of firm or branch office address change
If the Transaction Recovery Fund falls below the statutory minimum, licensees may be assessed to restore the Fund. What is the maximum that one licensee may be assessed during a two-year period? Select one: a. $40.00; $20.00 per year. b. $50.00. c. $20.00. d. There is no maximum assessment.
correct answer is: $20.00.
57. To reactivate agent license
submitting an activate form to REB w/ fee. CE completed w/n 2y prior to activation. Inactive more than 3y, he must meet the CE requirements. REB may waive this requirement if can demonstrate to the satisfaction of REB that he has remained current in his knowledge of RE.
23. Blockbusting -
A technique used to encourage people to sell their property by giving the impression that a neighborhood is changing for the worse, especially by implying a change in its racial makeup
49. When appraising property located on a corner lot, the appraiser would consider all of the following, EXCEPT a. Comparables. b. Highest and best use. c. Acquisition cost. d. Zoning and deed restrictions.
Correct answer: Acquisition cost. - Feedback: Acquisition cost is not a reliable value indicator - especially if the property was purchased years ago.
34. The Virginia Fair Housing Law is the same as the federal law w/ the exception of one additional protected class in Virginia. The additional protected class is: a. Marital status. b. Sexual preference. c. Age. d. Elderliness.
Correct answer: Elderliness. - Feedback: VA has added a protected class of "elderliness" to the 7 protected classes mandated under the federal fair housing law. Elderliness is defined as 55y or older. This differs from a protection based on "age," which could include discrimination against any age, not just the elderly.
Status Change of Principal Broker
Must return license by certified mail within 3 business days of the status change.
Real Estate Settlement Procedures Act (RESPA)
Prohibits kickbacks, referral fees or finder's fees- you cannot receive gifts because of sending them work
62. Name and address changes -
REB must be informed in writing w/n 30d of changes: RE licensees notify REB of name or home address change; Principal brokers notify REB of firm or branch office address change (no PO boxes).
61. Lapsed License -
12m after expiration date the license has lapsed & reinstatement is not possible. The person must meet all education & examination requirements & apply for a license as new applicant.
26. An agreement to waive prior rights in favor of another is? a. Subordination. b. Subrogation. c. Subornation. d. Subjugation.
Correct answer: A - Feedback A subordination clause waives prior rights in favor of another's.
17. A new residential development requires that all single family houses have a 20' X 22' attached garage. This requirement is an example of: a. Local building codes. b. Municipal regulations. c. A restrictive covenant. d. A zoning ordinance.
Correct answer: A restrictive covenant. - Feedback: A covenant (promise to keep) is a form of a deed restriction. This type of restriction would be imposed by the developer, not the local government through zoning powers.
20. Pete purchased a home from Tony. He did not record his deed, but took immediate possession. Tony died a few months later and according to the terms of his will, the property was to go to his nephew, Bob. Bob knew his friend Angela was interested in buying a house. They went and inspected the property and Angela agreed to buy it, and later recorded her deed. Who owns the property? a. Angela, because she recorded the deed. b. Bob, because he must wait 18 months before he can sell the property. c. Pete, by virtue of the purchase from Tony. d. The state, because the will conveyed property that Tony no longer owned.
Correct answer: Pete, by virtue of the purchase from Tony. - Feedback: Bob & Angela inspected the property, thereby having actual notice that Pete was in possession which should have been questioned. There could be a real fight in court, if Angela sues, but legally the property is Pete's.
Sole proprietor (non-broker owner):
means a brokerage firm owned by an unlicensed individual. Such firm must secure a real estate license before transacting real estate business. The non-broker owner may not be active in the brokerage business, and the firm must employ a licensed broker as the firm's principal broker.
Actively engaged:
means active licensure with a licensed real estate firm or sole proprietorship performing real estate activities for an average of at least 40 hours per week. This requirement may be waived at the discretion of the Board.
A limited service representative must provide the client with copies of all state and federal required disclosures, and must disclose to the client in writing:
(1) the rights and obligations of the client under the Virginia Residential Property Disclosure Act, and (2) if the client is selling a condominium, the obligations of the client to deliver to the purchasers, or to receive as purchaser, the required condominium resale certificate, and (3) if the client is selling a property subject to the Property Owners' Association Act, the obligations of the client to deliver to the purchasers, or to receive as purchaser, the required association disclosure packet.
Lease transactions
- must be done in writing and included in applications for lease or in the lease itself (whichever occurs first) Donotapplyto leases of less than 3 months
Truth in Lending Act (Regulation Z)
A federal law requiring certain disclosures when extending or advertising credit. Amount financed Finance charge Annual percentage rate (APR) Total of all payments over term of loan. Main purpose of this law is to insure that borrowers in need of a consumer credit receive meaningful disclosure of the costs of consumer credit- allows consumers to compare terms and shop wisely.
Two new forms from TILA-REPSA used for RE transactions
As a result of this new rule, two new forms will be used for essentially all real estate transactions involving a new closed-end consumer mortgage application. 1. LE -Loan Estimate and 2. CD- closing disclosure
33. Which of the following would be an example of downzoning? a. From single family dwellings to multi-unit apartments b. From industrial use to high-rise office buildings c. From single family dwellings to a conservation area d. From agricultural use to single family dwellings
Correct answer: From single family dwellings to a conservation area - Feedback: Downzoning occurs when the zoning regulations are changed from a higher, more active, use to a lower less active use.
42. All mortgages are? a. Due on sale. b. Liens. c. Recorded. d. None/these choices.
Correct answer: Liens - Feedback: All mortgages are liens.
Virginia Condo Act-
Initial purchaser has 10-day right to rescind Association can charge up to $100 for the POA packet and resale certificate
Transfer a License Status
Licensee submits a transfer application to the board with proper fee Principal broker or sole proprietor must return the license to the board by verified mail so it is received within 10 calendar days
Who holds salespersons and brokers license?
Salesperson & Associate brokers NEVER hold their license- it is held by their principal broker in their main office.
The Virginia Fair Housing Law prohibits discrimination on the basis of Select one: a. Familial status. b. Marital status. c. Source of income. d. Sexual preference.
The correct answer is: Familial status. -
44. In the cap approach, the appraiser considers all of the following EXCEPT: a. Price of the property. b. Rate of return on the investment. c. Rate of return of the investment. d. The estimated future income.
Correct answer: Price of the property. Feedback: The cap approach uses cap rate which reflects both the rate of return ON & the return OF the investment. The estimated future net income of the property is divided by the cap rate to give an estimate of the present value of the property. The price of the property is not a factor.
Regulation Z Exemptions
Loans for dwellings of more than four family units Construction loans to a builder Business or commercial loans Agricultural loans of more than $25,000 Personal loans of more than $25,000 Loans of fewer than 4 installments Airplanes
Disclosure of Brokerage Relationship Purchase transactions
- must be done in writing at the earliest practical time, never later than when specific real estate assistance is first provided (substantive discussion about a specific property).
The TRID rule does not apply to:
1. HELOCS (Home Equity Lines of Credit) 2. Mortgages secured by mobile homes or other "movable" dwellings that are not permanently attached to real estate 3. Reverse mortgages
Testing TRID PSI will test at least, but not necessarily ONLY, the following
1. The namesand purposes of the new forms, and possibly the forms they replace 2. The time limits and receipt acknowledgement for delivery of the LE and the CD 3. The changes that can trigger new waiting periods, and the risk of delay posed by making any contract changes after delivery of the CD
Salesperson Requirements Pre-licensed education for Sales- Lapsed license after 12 months must meet current education and examination requirements.
60 hours in principles of real estate Post-License Education for Sales Licensees- must complete 30 hours of post-license education within 1 year after receiving sales license. Must complete 16 hours of continuing education for salesperson renewals every 2 years. Lapsed license after 12 months must meet current education and examination requirements.
46. William Wells, a principal broker, listed parcel A under an exclusive listing agreement & listed parcel B under an exclusive right-to-sell agreement. Both listings expired. 3d later, w/t seeing each other's property beforehand, the 2 owners exchanged properties in a Like-Kind exchange. William will receive: a. 1 commission b. 2 commissions c. No commission d. A split commission
Correct answer: No commission - Feedback: William gets no commission since the listings have expired. The contracts (listings) between him & the former sellers to pay him a commission no longer exist. If the stem of the question had indicated that William was involved in the transaction between the 2 parties during his listing period, then he may have had a course of action to collect from 1/both parties.
25. Seller Pruitt signed an exclusive right-to-sell listing with broker Cook. The listing included a 7% commission and a clause stating the listing was in effect until the house was sold. Is this legal? a. No, because the commission was over 6%. b. No, because the listing has no termination date. c. Yes, if it was a multiple listing. d. Yes, because it was an exclusive right-to-sell listing.
Correct answer: No, because the listing has no termination date. - Feedback: Entering a brokerage relationship that does not specify a DEFINITE termination date is a violation of the REB regulations.
16. An owner has been using a parcel of land for heavy industrial purposes. The district in which the property is located is presently zoned for business/commercial use. If the owner is allowed to continue with the industrial use of the property, this is an example of a: a. Violation of the zoning requirements b. Non-conforming use c. Zoning variance d. Special use permit
Correct answer: Non-conforming us - Feedback: This is an example of a non-conforming use. The use of the property at one time was legal. The zoning has been changed and the continued use for industrial purposes no longer conforms to current regulation but is allowed because it is "grandfathered" in.
32. Salesperson Susan sells to buyer Pete, a home belonging to seller Tom. At the same time she writes a six month option for Pete to buy an adjoining lot, also from Tom. When does Susan earn her commission on the option contract? a. When she is paid her commission on the sale of the home. b. When the optionor and the optionee are brought together. c. When local custom dictates, she has earned it. d. None of the above.
Correct answer: None of the above. - Feedback: Susan will earn her commission on the optioned property if & when Pete decides to exercise his right to buy the property & does so w/in the 6m period of the option.
18. The costs associated with routine maintenance of the common area in a condominium complex, such as mowing the lawn or snow removal, are financed through a. Payment of homeowners association dues. b. Payment of special assessments. c. Pro-rata billing among the unit owners. d. None of these choices.
Correct answer: Payment of homeowners association dues - Feedback: The HOA collects dues from owners and that money is then used to maintain the common areas. .
28. Pete purchased a home from Tony. He did not record his deed, but took immediate possession. Tony died a few months later & according to the terms of his will, the property was to go to his nephew, Bob. Bob knew his friend Angela was interested in buying a house. They went & inspected the property & Angela agreed to buy it, and later recorded her deed. Who owns the property? a. Angela, because she recorded the deed. b. Bob, because he must wait 18m before he can sell the property. c. Pete, by virtue of the purchase from Tony. d. The state, because the will conveyed property that Tony no longer owned.
Correct answer: Pete, by virtue of the purchase from Tony. - Feedback: Bob & Angela inspected the property, thereby having actual notice that Pete was in possession which should have been questioned. There could be a real fight in court, if Angela sues, but legally the property is Pete's. Correct answer: Pete, by virtue of the purchase from Tony. 28. Pete purchased a home from Tony. He did not record his deed, but took immediate possession. Tony died a few months later & according to the terms of his will, the property was to go to his nephew, Bob. Bob knew his friend Angela was interested in buying a house. They went & inspected the property & Angela agreed to buy it, and later recorded her deed. Who owns the property? a. Angela, because she recorded the deed. b. Bob, because he must wait 18m before he can sell the property. c. Pete, by virtue of the purchase from Tony. d. The state, because the will conveyed property that Tony no longer owned. Feedback: Bob & Angela inspected the property, thereby having actual notice that Pete was in possession which should have been questioned. There could be a real fight in court, if Angela sues, but legally the property is Pete's.
27. If a broker has repaid the REB for amounts awarded from the TRF which of the following is true? a. His or her license is automatically reinstated. b. REB could withhold issuance of a new license, forever. c. He or she may apply for a new license within 30d. d. He will be reinstated at the level of salesperson, NOT as a broker, for a period of 2y.
Correct answer: REB could withhold issuance of a new license, forever - Feedback: The REB has the right refuse the issuance of a license to any person who has EVER had his or her license revoked or suspended. When the claim was paid, the brokers license was revoked, by law. The fact that the broker repaid the fund is immaterial, the license was revoked.
35. If the REB authorizes payment from the TRF, the claimant subrogates his/her rights to the REB. REB now has the right to: a. Sue the licensee to recover the amount of the claim paid. b. Sue the licensee to recover the amount of the judgment awarded by the court. c. Only revoke the respondents' license, as provided in the law. d. Sentence the licensee to a prison term of up to 12m.
Correct answer: Sue the licensee to recover the amount of the claim paid. - Feedback: The right of subrogation means that the REB has priority over the claimant's right to sue the licensee.
37. If a motel clerk furnishes a broker w/ leads to prospective buyers in exchange for a % of the commission collected, which of the following would be true? a. The clerk must be a licensed salesperson. b. Neither the broker nor the clerk are in violation of the law. c. The clerk must be licensed as a broker. d. This is considered to be good sales strategy.
Correct answer: The clerk must be licensed as a broker. Feedback: Clerk must be licensed as a broker OR salesperson of the broker making payment. A salesperson may only accept compensation from his employing broker. A broker may pay another broker w/t violating the law.
39. A person bought 5ac of ground. The 5ac as well as the surrounding area was zoned low density residential. The buyer was able to change the zoning on the 5ac to light industrial. This is best referred to as: a. a non-conforming use b. a dedication c. down zoning d. spot zoning
Correct answer: spot zoning - Feedback: (D) Spot zoning is zoning one specific piece of property different than all the surrounding pieces of ground. (A) A non-conforming use is similar to a grandfather clause in that one is allowed to continue the current use of property that is different than the current zoning law as the person was there using the land before the zoning change. (B) A dedication is normally where a developer gives land to the government. (C) Down zoning is going from a more intensive use to a less intensive use.
45. At what time is the developer's control of a time-share project transferred to the owners association? a. When 75% of the time-share interests have been sold. b. When 90% of the time-share interests have been sold. c. When 75% of the time-share interests have been sold or all amenities & facilities are completed. d. When 90% of the time-share interests have been sold or all amenities & facilities are completed.
Feedback: Control of a time-share project is not transferred to the owners until 90% of the units have been sold and all amenities & facilities are completed. Control of a condominium project transfers to the owners when 75% of the units are sold. Correct answer: When 90% of the time-share interests have been sold or all amenities & facilities are completed.
43. A new property was valued at $179k with an estimated life of 50y. The value of the land has been estimated at $19k. After allowing for depreciation, what is the value of the property at the end of 5y? a. $163,000. b. $161,000. c. $160,000. d. $144,000.
Feedback: Remember depreciate value of improvements ONLY. Value of property = $179k less $19k (land) or $160k for the value of the improvements which is depreciated 2% each y 100% / 50y estimated life = 2% each year. 5y at 2% is 10% or $16k. $160k less $16k depreciation = $144k (improvements). $144k + $19k (land) = $163k total value. Correct answer: $163k.
The Loan Estimate replaces the Good Faith Estimate (GFE) and the initial TIL disclosure.
It provides somewhat more and clearer information to consumers to make comparison shopping easier and to ensure that consumers understand loan and closing costs. The Loan Estimate must be provided to the consumer within three days of the submission of a loan application, and the consumer must acknowledge receiving it.
A licensee whose license has been on inactive status for more than three years will have to do which of the following in order to activate the license? Select one: a. Sign an irrevocable consent to suits and services. b. Appear at a hearing before the Board. c. Apply for relicensure as a new applicant. d. Meet current educational requirements.
The correct answer is: Meet current educational requirements. - Feedback Meet current educational requirements.
30. A licensee whose license has been on inactive status for more than three years will have to do which of the following in order to activate the license? a. Sign an irrevocable consent to suits and services. b. Appear at a hearing before the Board. c. Apply for relicensure as a new applicant. d. Meet current educational requirements.
The correct answer is: Meet current educational requirements. - Feedback: The licensee will have to meet the CE requirement for the preceding 2 years plus the current year.
What is TRID?
This acronym stands for TILA-RESPA Integrated Disclosures and refers to forms that replaced the HUD1 form, the Good Faith Estimate and the existing Truth-in-Lending (TIL) disclosures. These forms integrate the existing disclosures with new provisions of the Dodd-Frank Act intended to make the mortgage process clearer to consumers.
Limited service representative:
a licensee who represents a client with respect to real property of one to four residential units, but whose brokerage agreement specifically excludes one or more of the standard agency obligations. If a limited service representative wants to represent the client as an agent, the brokerage agreement must state this. If the brokerage agreement does not state this, the licensee will be deemed to be acting as an independent contractor.
55. Brokers Experience & Pre-License Education -
actively engaged as RE salesperson for 36 of the 48m immediately preceding the date of application 180 classroom hours RE brokerage, RE law, RE finance, & RE appraisal, & related subjects approved by the REB. 1"related subject substitution" is allowed in place of Law, Finance or Appraisal. No substitution allowed for Brokerage
56. Unlicensed individuals
can be officers of a corp, or members, provided they are NOT actively engaged in the brokerage business. If active and licensed, they must be licensed as brokers.
59.RE agent continuing education requirements
complete 16h of during 2y term. 16h = 8h mandatory & 8h elective. 8h mandatory includes: 3h ethics; 2h fair housing; 3h legal updates; 1h legal updates, RE agency, RE contracts.hours of ethics and standards of conduct;
Open listing:
oral listing agreement given to any number of brokers, only the broker who is the "procuring cause" gets paid.
Closing Disclosure (CD)
replaces the HUD-1 and the final TIL disclosure, and the TIL forms that summarized both TIL disclosures. The Closing Disclosure must be received by the consumer three days before closing, and the lender must have proof of receipt.
