Real Estate Practice Exam

How does discrimination testing work?

Two different applicants whose only difference is protected class apply for the same property.

Which statement about the buyer's selection of the settlement agent is true?

Chapter 27.3 of Title 55 of the Code of Virginia gives the buyer the right to select the settlement agent.

Your client Kari manages a large condominium development. She wants to make sure that all of her condo owners are Christians. How should you advise her?

"Discriminating on the basis of religion breaks federal fair housing law."

Your friends Rita and Josh want to open a brokerage and call it "Reach for the Sky Realty." What should you tell them?

"Just remember you have to do your business under that name."

Max is a condominium developer. For his new development, he is gathering documentation that he has to submit to the CIC board. Which of the following pieces of information is NOT likely to be included with this documentation?

"Marketing rules for real estate personnel are as follows:"

Molly is going over her disclosure responsibilities with her agent, Tim. "You know, I think I might be in a military aircraft noise zone," she tells him. "But I don't know. How can I find out?" What should Tim say?

"We can find this information in this area's official zoning map."

A new licensee at your brokerage tells you, "My client has some closing money, but he wants the settlement agent to hold onto it instead of our brokerage. Is that legal?" What should you say?

"Yes, that's perfectly legal. Brokerages don't have to manage all escrow accounts."

What is the maximum amount a consumer can recover from the Real Estate Transaction Recovery Fund?

$20,000

Heather received the disclosure statement from the seller after their contract was ratified. Turns out there are septic issues that Heather doesnt want to deal with. She works with her agent to write up a termination notice to be mailed to the seller. By when must this be done?

5 days

Which of these policies is an example of discrimination based on familial status?

A landlord charges an extra $100 security deposit for each child living in a property

What is a seller representation agreemnet also known as?

A listing agreement

Harry, a real estate licensee, tells a seller, "I'll be surprised if you get $100,000 for this place. I won't charge you anything to list it, but anything you get above $100,000 goes to me. Deal?" This is an example of ______.

A net listing agreement

If your license is suspended, it's only temporary. If your license is revoked, it is permanently removed and requires______.

A new license application after the penalty period

Larry represents the seller. Performing which of these duties for the buyer could be a breach of duty to his client?

Advising the buyer on what to include in an offer

Which of these statements about fair housing for people with disabilities is true?

A person with a disability should not be prevented from making reasonable accommodations and may also request accessibility accommodations.

Which of the following pieces of information is principal broker Ken NOT required to maintain as part of his recordkeeping duties?

A record of his past client's credit history

Sarah and Jim both have their broker's licenses and want to start a business togther. What do they need in order to get started?

A separate firm license

In what manner can a licensee engaged as a property manager represent the owner?

As a seller or landlord

Examples of penalties for lesser violations may include a reprimand, fine, repayment of commission, or _________.

Additional education

Which of the following situations is the best example of designated agency?

Agent Devin represents seller Angie, and agent Denise represents buyer Alex. Alex is buying Angie's condo. Devin and Denise both work for Blue Skies Realty.

Seller Alec provided the Virginia Disclosure Statement to buyer Kelly two days before they ratified the contract. Three days after ratification, he learned that there was mining done on his property and he needs to disclose this. When does he need to make this additional disclosure?

Before closing

Yolanda is selling her property in Virginia. Several buyers showed interest in the property at a recent open house. When does Yolanda need to provide a buyer with the disclosure statement?

Before contract ratification

Zoe, seller, and Darnell, buyer, signed their purchase contract on Monday. The contract allows for Darnell to move in to the property one week before settlement. The day before Darnell is to move in to the property, Zoe provides Darnell with the disclosure statement. If Darnell wishes to terminate the contract, by when must he provide Zoe with a written termination notice?

Before moving into the property

Consuela is a real estate licensee, and she has three other licensees working under her supervision. What type of license does Consuela hold?

Broker

In Virginia, which type of licensee must take 24 hours of continuing education every renewal cycle?

Broker

Which of these is a rule that governs how escrow money can be disbursed?

Brokers can disburse escrow money at the conclusion of the transaction to settle the agreement between the parties.

Which of the following is true about a broker's recordkeeping responsibilities?

Brokers must keep records of signed dual agency consent forms for three years.

What does an agent owe the client after their relationship terminates?

Confidentiality

Which of the following should licensees be careful to avoid when interacting with an opposing party who has a limited service agent?

Creating unintended dual agency

What is used to secure a home loan in Virginia?

Deed of trust

When some activities are conducted in wetland areas, permits are required. In Virginia, what regulatory authority issues these permits?

Department of Environmental Quality

What is one of the reasons that illegal discrimination still occurs?

Discrimination is often not visible to the public.

Amanda helps her neighbor sell his home by assisting with negotiations. She receives no compensation for her assistance. Based on this one transaction, Amanda ______.

Doesn't need a real estate license

In Virginia, what type of deed is used to convey property?

General warranty deed

Tommy is an unlicensed individual helping his sister, Katerina, find a new house, in return for a trip to Europe. Which of the following activities can Tommy legally perform?

He can search real estate sites and resources to find available homes in the area.

A Virginia landlord has an availbale unit, but refuses to show it to several applicants. These applicants are all single women with children; the applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law?

He is discriminating against people based on sex and familial status by refusing to show available housing

Abdul just got his salesperson's license. Which of the following is true about his situation?

He needs to take 30 hours of post-licensing education in the next year.

On the Virginia Fair Housing website, you can learn about all of the following EXCEPT:

How to retrofit a house for people with disabilities

Under which of the following circumstances can a listing agreement be terminated in Virginia?

If the seller and agent both agree in writing to end the agreement.

You decide to take the earnest money deposits you've been given and place it in your personal account until it is needed at closing. What type of violation have you committed?

Improper delivery of instruments

What type of license would Sarah receive if she is new to real estate and does not yet have a supervising broker lined up?

Inactive salesperson license

Identify which of these actions is a prohibited activity for real estate licensee in Virgina.

Increasing the rent and security deposit for a family with seven children

Which of the following are true statements about development in water bottoms?

It requires a Joint Permit Application.

Which of these septic system conditions requires a written disclosure?

Lauren's septic system is subject to repair requirements by the state board of health, but Lauren has a waiver.

In Virginia, if a real estate contract isn't in writing, it isn't_____.

Legally enforceable

Leon's client is looking for a property with at 2,500 finished square feet. He finds a 2,200 square foot property with all the other features the client is looking for and purposely fauls to nmention the square footage. His client agrees to look at the property, falls in love with it, and wants to make an offer. Which of these statements accurately represents Leon's level of misrepresentation in this situation.

Leon obviously knew about the square footage and intentionally didnt mention it. He's guilty of intentional misrepresentation.

Which of these is NOT an example of improper escrow account handling?

Lou maintains all account-related records for three years after the transactions close.

Trevon's landlord Lucia is pretty good, but she isnt doing one thing that must be done. For which of these infractions can Trevon take action or seek restitution, according to the Virginia Residential Landlord and Tenant Act?

Lucia hasn't fixed the electric panels in Trevon's building, which are definitely not up to code.

According to the Virginia Residential Landlord and Tenant Act, which of these is a tenants's basic duty?

Maintain the property in a good, clean, and safe condition.

Marcus, a Virgina listing agent, told a potential buyer that his seller client's property had no flooding issues, though the seller had mentioned water in the basement a few years back before the yard was properly graded. Which of these statements is true?

Marcus committed intentional misrepresentation because he knew his statement was false.

Marney, a Virginia licensee, just wrote a contract for a client. Which of the following statements about this situation is true?

Marney can only do this if the contract is incidental and if she doesn't charge her client for it.

What law requires that sex offender registry information be made available to the public?

Megan's Law

Which of the following best explains the difference between misrepresentations and omissions?

Misrepresentations can be intentional or unintentional. Omissions are one type of misrepresentation.

In addition to being properly executed (signed) what other requirements are there for recording a document in Virginia?

Must be acknowledged before a notary public.

Which of the following is a type of listing agreement that is not permitted in Virginia?

Net listing

Gerald is selling a property that is not on public water and sewer systems. Per the purchase agreement he has signed with the buyers, he must provide a certificate proving that water from the well is safe, and that the sewage disposal system works. When must the certificate be dated?

Not more than 30 days prior to settlement

According to the VRLTA, a copy of the written rental agreement must be provided to the tenant within ______________ of the agreement's effective date.

One month

Which of the following statements regarding POA responsibilities and duties is true?

POAs can place liens on properties if owners don't pay their dues.

When does a designated agency disclosure need to be provided?

Prior to a designated agency situation occurring

When does a dual agency disclosure need to be provided?

Prior to a dual agency situation occurring

A real estate professional in Virginia is legally permitted to take which of these actions?

Prohibit a family of 10 from renting a unit with a capacity of two people.

The purpose of the Underground Damage Prevention Act is to utility lines.

Protect

What is the VREB authorized to do?

Set requirements and standards of conduct for real estate licensees as well as enforce Virginia's real estate laws

Which of the following actions should Cora, a principal broker, take after her brokerage has been audited?

She should keep a copy of the report at her brokerage in case the VREB wants to see it.

Denise is ready to apply for her salesperson's license. Which of the following facts, if any, could disqualify her?

She's 17

Sallee, a salesperson with three months of experience who works under principal broker skylar, destroys brokerage disclosure records that are two and a hald years old. Which of the following statements about this situation is true?

Skyler could be found negligent in his recordkeeping duties.

In Virgina, the wronged party in a real esate transaction has a limited time period to initiate a court action. This is known as the______.

Statute of limitations

What are some roles and responsibilities of your sponsoring broker?

Supervise and train you.

Which of the following is a requirment of a supervising broker?

Supervise the actions of associate brokers and salespersons

Danny is a buyer's agent whose client is making an offer on a property from a seller using a limited service agent. The limited service agent was only contracted to list the property on the MLS. When Danny presents his client's offer to the seller, the seller asks Danny's advice about the offer and how to respond. What should Danny do?

Tell the seller that is an agent of the buyer and cannot offer advice to the seller

A property is located in Planning District 15. Which facts must be disclosed?

That either mining activities took place on the property or that it contains abandoned mines.

Which of these statements about the Virginia Residential Landlord and Tenant Act is true?

The act establishes both landlord and tenant obligations and remedies.

Who must be designated as trustee of escrow funds in custodial or trust accounts?

The broker

The Real Estate Board has issued a charge of discrimination against a real estate licensee in Virginia. What should the licensee expect to happen next?

The charge will be referred to the Attorney General's office

Which of the following statements about the Notice of Disclosure Pursuant to Virgina Residential Property Disclosure Act is true?

The disclosure form is not part of the purchase agreement.

In what parts of Virgina does the Virginia Residential Landlord and Tenant Act (VRLTA) apply?

The entire state

The Virginia Condominium Act is concerned that condo owners and potential buyers have the information they need to make informed decisions. To that end, which of the following does this act regulate?

The information that must be included in public offering statements

Which of the following pieces of information does Linda, a Virginia real estate salesperson who works for Big Valley Realty, NOT have to include on her bussiness cards?

The name and number of her sponsoring broker

A property has a septic system that's subject to certain maintenance requirements by the state health board, and the owner's obtained a waiver for them. What is the owner's obligation related to this?

The owner must provide the buyer with the septic disclosure and outline the maintenance requirements.

According to Virgina disclosure statement, what is a seller's disclosure requirment if the seller knows that the parcel of land behind the property is being rezoned for commercial development?

The seller makes no representations.

According to the disclosure statement, what is a seller's disclosure obligation if their property is located in an area that falls under the Chesapeake Bay Preservation Act?

The seller makes no representations.

The VREB has cause to believe that the escrow accounts at Green Valley Brokerage are being mismanaged. Which of the following is an action they can take?

They can petition the court to appoint a receiver to oversee the escrow accounts.

Which of the following is required of property management agreements?

They must be in writing

Which of the following is NOT protected class under federal or Virginia fair housing laws?

Those with assistance animals

What is the purpose of the Equipment Condition and Inspection section in the Residential Contract of Purchase?

To notify the parties that the seller is responsible for maintaining the property in the same condition as it is on the contract date, the inspection date, or some other date specified by the buyer.

What is the purpose of providing the disclosure to unrepresented parties?

To prevent misunderstandings and lawsuits by informing the consumer the agent does not represent them

Which of these statements describes the purpose of Virginia agency disclosures?

To protect consumers by keeping them informed

How lonf must brokers retain deposits and other escrow funds?

Until either the transaction closes or terminates prior to the closing

Which agency is authorized to promulgate and enforce licensing laws in Virginia?

VREB

Which regulation describes how the VREB must carry out its responsibilities and defines the regulations that it enforces?

Virginia Administrative Code Title 18, Agency 135

Chester is interestes in becoming a real estate licensee in Virginia. After completinf the requirments for obtaining the license for a real estate salesperson, which agency will administer Chester's license?

Virginia Real Esate Board

Derek, a real estate licensee, has had a fair housing complaint filed against him with the Virginia Fair Housing Office. Which group is responsible for either dismissing the complaint or issuing a charge of discrimination?

Virginia Real Estate Board

Consuela, the landlord, wants to enter the apartment of one of her tenats, Ruth. Consuela plans to show the unit to three potential tenants. Can she do this?

Yes, but only if Consuela gives Ruth 24 hour notice

A real estate license is required_____.

When performing real estate activities for others, for compensation of any kind

Agent Toby represents his seller clients, Mr. and Mrs. Poole. Which of these actions would violate one of the statutory duties he owes them?

When the house is under contract, Toby receives three more offers that he doesn't present to the Pooles.

A salesperson or associate broker may perform real estate brokerage activities under what circumstances?

While associated with and supervised by a broker

First Baptist Church in Norfolk owns two apartments next door to the church, which used to be housing for their ministerial staff. It does not rent to non Baptists. Is this legal?

Yes, as long as it does not discriminate based on race, color, national origin, or familial status.

Broker Delia is managing an unusual sales transaction. Her client Phyllis wants to gibe her a small ruby for her down payment. Its been valued by a certified jeweler and will cover the down payment amount. Should Delia accept is?

Yes, as long as she records its acceptance in the sales agreemnet document.

Shayla has been a principal broker for almost eight years. Does she have to submit proof of continuing education the next time she renews her license?

Yes, because brokers need to take CE as part of their renewal process.

Which licensee is managing her license correctly?

Yvette is deactivating her license for a while, so she applies to the VREB for a change in status.