State Practice Exam #2

If the named licensee is involved in multiple transaction violations, what is the maximum that a person may collect from the Transaction Recovery Fund? Select one: A. $10,000 B. $20,000 C. $100,000 D. None of the above Feedback

$20,000

Mitch, the principal broker at ZYX Firm, has reasonable suspicion that one of his associate brokers is stealing escrow funds. As a principal broker, Mitch must report this violation within how many business days? Select one: A. 5 B. 4 C. 3 D. 2 Feedback

3

If a purchaser of a Virginia time-share estate rescinds the contract, the developer is required to refund any monies advanced by the purchaser within: Select one: A. 7 days B. 10 days C. 30 days D. 45 days

45 days

Which person can hold a concurrent license? Select one: A. A broker that is active in more than one brokerage firm B. A rental location agent that is also licensed as a broker C. A salesperson that is also licensed as a rental location agent D. A salesperson that performs residential sales with one broker, but sells time share property for another

A broker that is active in more than one brokerage firm

Which of the following statements about the Transaction Recovery Fund is correct? Select one: A. If the Fund falls below $400,000, the Director may only assess active licensees to restore the Fund B. A licensee accused in the claim must sell all personal possessions to satisfy the claim C. A claimant may collect up to $20,000 D. When a claim is paid, the respondent's license will be automatically suspended

A claimant may collect up to $20,000

A consumer may file a Transaction Recovery Fund claim for a loss sustained as the result of a licensee's fraudulent act. In order to receive payment, this claim must be in connection with: Select one: A. A personal loan B. An investment in a limited real estate partnership C. A real estate transaction D. All of the above Feedback

A real estate transaction

Which payment does NOT need to be held in an escrow account? Select one: A. Money received as a security deposit for rental property B. A referral fee received from an out-of-state broker C. An earnest money deposit, if closing is scheduled in less than 15 days D. An earnest money deposit, if the amount is less than $250

A referral fee received from an out-of-state broker

A prospective buyer asks the listing broker if the seller will accept 10% less than the listed price. How should the broker respond? Select one: A. Tell the buyer that the seller is firm and will not negotiate the price B. Advise the buyer to put his offer in writing C. Refer the buyer to a cooperating broker in order to avoid a dual agency situation D. Advise the buyer that a 90% offer is not acceptable, but he should instead offer 95%

Advise the buyer to put his offer in writing

Carla the Salesperson places her license on inactive status in July. In October, Carla purchases a house from a FSBO. What, if anything, is Carla required to tell the seller of the property? Select one: A. Nothing, because Carla is an inactive licensee B. Nothing, because the property is not listed with a broker C. Advise the seller that she was once an active real estate agent D. Advise the seller in the written offer that she is licensed

Advise the seller in the written offer that she is licensed

Marty Fields just found out that he passed the Virginia real estate sales exam! What must Marty do before he can start selling real estate? Select one: A. Complete the mandatory post-license education requirement B. Apply for a temporary license until he affiliates with a broker C. Affiliate with a broker and submit an application for licensure D. Both A and C

Affiliate with a broker and submit an application for licensure

Which of the following statements is true about real estate advertising? Select one: A. It must be supervised by the principal or supervising broker B. It must be in the name of the firm C. The firm's licensed name must be clearly and legibly displayed D. All of the above

All of the above

A person seeking a real estate license in Virginia MUST be: Select one: A. A resident of Virginia B. At least 21 years old C. A college graduate D. Competent and have a good reputation for honesty

Competent and have a good reputation for honesty

Earnest money deposits may be placed in interest-bearing accounts if the: Select one: A. Contract specifies the beneficiary of any earned interest B. Account earns a minimum of 5% interest C. Account is properly titled as escrow D. Interest is divided between the cooperating brokers

Contract specifies the beneficiary of any earned interest

A parcel of real estate that you are trying to sell is located near a toxic waste site. The seller (your client) does not want you to disclose this information because he thinks that no one would buy if they knew. As a real estate agent, you have an obligation to: Select one: A. Disclose the information regardless of whether you are involved in the transaction B. Note it on the disclosure form--by doing this, you do not need to disclose the fact verbally C. Disclose the information only when you are involved in an transaction D. Say nothing as per your fiduciary relationship with the seller (your client)

Disclose the information regardless of whether you are involved in the transaction

A real estate license could be suspended without investigation if the licensee: Select one: A. Engages in acts of brokerage while on inactive status B. Violates the Virginia Real Property Act C. Does not pay the Transaction Recovery Fund assessment D. All of the above

Does not pay the Transaction Recovery Fund assessment

Licensees with an inactive license must: Select one: A. Apply for active status within 3 years B. Do nothing, as the license automatically renews every 2 years C. Retake their pre-license education and pass a licensing exam D. Either A or C Feedback

Either A or C

The Real Estate Board is responsible for: Select one: A. Regulating brokerage fees B. Enforcing the License Law C. The code of ethics for real estate professionals D. Enforcing the Virginia Homestead Act

Enforcing the License Law

Broker Sarah takes a listing from a seller, who later tells her that the house should not be shown to any minorities. The broker should: Select one: A. Note this on the MLS form B. Make written acknowledgement of the instructions C. Explain that she cannot comply because this violates federal law D. Avoid discussion of the request

Explain that she cannot comply because this violates federal law

Which of the following actions is NOT a violation of Virginia real estate laws and regulations? Select one: A. Failing to disclose to buyers that there were termites in the property B. Failing to disclose adverse zoning that affected the property C. Failing to inform the seller of the ethnic character of a buyer D. Failing to advise a buyer of an offer, in the case of a buyer's agent Feedback

Failing to inform the seller of the ethnic character of a buyer

If a broker acts for more than one party in a real estate transaction without the full knowledge and consent of all parties, it is: Select one: A. Acceptable, if no one is defrauded B. Acceptable, as a result of the listing contract C. Acceptable, if the compensation is less than $500 D. Grounds for suspension or revocation of a license

Grounds for suspension or revocation of a license

A real estate salesperson will receive her share of the brokerage fee from which person? Select one: A. Either buyer or seller, based on their agreement B. The attorney conducting the closing C. Her employing broker D. The listing broker Feedback

Her employing broker

Placing a classified ad that contains incomplete or inaccurate information to "make the telephone ring" is: Select one: A. Creative marketing B. Illegal C. Permissible, with the written permission of the owner D. A common practice accepted by the industry

Illegal

The Virginia Real Estate Board has the power to take all of the following actions, EXCEPT: Select one: A. Investigate the dealings of any real estate broker or salesperson B. Suspend or revoke any license issued by the Board C. Impose a fine on any licensee D. Impose a penalty of up to one year in prison

Impose a penalty of up to one year in prison

When a licensee is selling or leasing personally owned property, she: Select one: A. Is required to disclose her license status B. Does not have to disclose pertinent information about the property C. Must list the property with her employing broker D. Is not subject to Board regulations

Is required to disclose her license status

A buyer entered into a contract to purchase a new condominium. At the time of contract ratification, the swimming pool cited in the POS was not completed. How should the sales agent advise the prospective buyer? Select one: A. Withhold a portion of the purchase price until the pool is complete B. Make certain that the plat included in the condo documents is clearly marked that the pool is "to be completed" C. Refuse to close the transaction D. Obtain a mechanics lien release from the developer

Make certain that the plat included in the condo documents is clearly marked that the pool is "to be completed"

Under the Virginia Landlord and Tenant Act, tenants: Select one: A. May not sublease, even if the landlord has approved B. May pay rent into escrow if the landlord was given written notice, but fails to make repairs C. May terminate lease if a landlord fails to make repairs after being notified D. May terminate lease due to military purpose, so long as the tenant provides 15 days notice

May pay rent into escrow if the landlord was given written notice, but fails to make repairs

What is wrong with this advertisement: "3 bdrm, 2 ba, $75,000. Ann Agent. Broker XYZ. Phone 123-4567"? Select one: A. Nothing B. No property location specified C. The agent's name appears before the broker's name D. It does not disclose the agent's license status

Nothing

Claims for payment from the Transaction Recovery Fund are filed with the: Select one: A. Real Estate Board B. Local Association of Realtors C. Court of competent jurisdiction D. Salesperson's broker

Real Estate Board

A broker could remove money from her escrow account under all of the following circumstances, EXCEPT: Select one: A. With a written agreement of all of the parties B. Rescission by the buyer C. Termination of the contract, by full performance D. As a result of a court order

Rescission by the buyer

A broker has been approached by a minority buyer, who requests to see properties in a specific section of a city. The broker refuses to show these properties. Instead, the broker indicates that the he would be better off in a location with a greater concentration of his particular minority group. The broker's illegal conduct is known as: Select one: A. Steering B. Blockbusting C. Redlining D. Panic selling Feedback

Steering

Owner Chaney tells Broker Fowler that she will list her property if he guarantees that she will receive $38,500 cash once the sale is complete and all expenses have been paid. Fowler may have anything over that amount as commission. Broker Fowler should tell Owner Chaney: Select one: A. That she is describing an open listing B. That she has an unrealistic opinion on the value of the property C. That she is describing an exclusive agency listing D. That he cannot accept the listing

That he cannot accept the listing

Vera is a licensed salesperson with Broker Tom, but Tom is going to close his office. When this happens, Vera plans to work with Broker Jane. Vera should: Select one: A. Get her license from Tom and take it to Jane B. Have all earned commissions placed in an escrow account C. Ask Tom to return her license to the Board and apply for a transfer D. Apply to the Real Estate Board for a license as a new applicant

Ask Tom to return her license to the Board and apply for a transfer

Sarah Smith sees an ad from Broker Mark for a custom built home with mountain views, hardwood floors, a theatre room, and a professional kitchen. She goes to the address and finds that the listed property is actually a motor home. Mark is guilty of: Select one: A. Commingling B. Bait and switch C. Conversion D. None of the above

Bait and switch

The VREB regulations require that complete records of real estate transactions: Select one: A. Be retained by the principal broker indefinitely B. Be furnished to the Board upon request C. Be furnished to the Board every three years D. Be maintained in a federally insured bank

Be furnished to the Board upon request

Broker Adam is encouraging you to sell since your new neighbors will be Catholics. He says that once they move in, crime will increase and property values will tumble. Your broker is guilty of: Select one: A. Redlining B. Steering C. Blockbusting D. Puffery

Blockbusting

The principal broker must keep all of the following records at the main firm office, EXCEPT: Select one: A. Firm license B. Branch license C. Principal broker's license D. Salesperson licenses

Branch license

If a broker holds an earnest money deposit in an interest-bearing escrow account, what is the disposition of any earned interest? Select one: A. It is, by regulation, credited to the buyer B. It is always credited to the seller at closing C. The broker may keep the interest D. Escrow accounts cannot, by regulation, earn interest Feedback

The broker may keep the interest

When a claim is paid from the Transaction Recovery fund, which of the following statements is true? Select one: A. The licensee named in the claim must post a bond in order to continue practicing real estate B. The claimant assigns his rights to the Board, to the extent of the amount of money paid by the Fund C. All claims submitted in relation to a licensee's misconduct in a single transaction may not exceed $20,000 D. All of the above Feedback

The claimant assigns his rights to the Board, to the extent of the amount of money paid by the Fund

A prospective buyer enters a broker's office and is escorted into the conference room. After the broker has financially qualified the buyer, they begin to review available properties that meet the buyer's wants, needs, and financial limitations. When is the broker required to disclose the agency relationship? Select one: A. When determining the financial qualifications of the buyer B. When the buyer expresses an interest in a particular piece of property C. When the buyer has identified a property that is acceptable D. Before the broker and buyer begin to discuss any specific property

When the buyer expresses an interest in a particular piece of property

A broker is required to return an affiliated agent's license to the Board in all of the following situations, EXCEPT: Select one: A. Upon demand by the Board B. Upon revocation of the broker's license C. Upon the request from the salesperson to transfer to another broker D. When the salesperson refuses to perform real estate duties

When the salesperson refuses to perform real estate duties