VA License Law - State Topic Tester
When a salesperson transfers from one broker to another, it is the salesperson's responsibility to: Select one: A. Pay a license reinstatement fee B. Return his or her license to the Board C. Apply for inactive status until the new broker has business cards printed D. None of the above
The former broker (NOT the salesperson) must return the license to the Board if a salesperson transfers to another firm. Therefore, none of the above are true. The correct answer is: None of the above
For a corporation licensed to engage in real estate business, which individual is primarily responsible for those real estate activities? Select one: A. President of the corporation B. Principal broker C. Chairman of the board D. Corporate attorney
The principal broker is responsible for the real estate activities of a firm. This responsibility can also be delegated to the supervising broker of a branch office. The correct answer is: Principal broker
A seller gave a friend power-of-attorney in order to consummate the sale of her personal residence. Which of the following statements is true? Select one: A. The friend must be licensed as a broker B. The friend must have a law degree C. The friend need not be licensed D. The friend need not be licensed, only if he or she does not get paid
An unlicensed person can (under power of attorney and without compensation) perform an act of real estate in order to authorize the final performance of a contract. For example, this would allow the authorized person to negotiate with buyers or sign the final papers at settlement. The correct answer is: The friend need not be licensed, only if he or she does not get paid
To obtain a Virginia real estate license, it is necessary to: Select one: A. Be a citizen of the United States B. Hold a bachelor's degree in real estate C. Take and pass a test within 12 months of application D. Serve an apprenticeship term in real estate
Of the listed choices, the only true statement is that you must take and pass the exam within 12 months of submitting your license application. If your application is not submitted within this time frame, you will need to re-take the licensing exam. The correct answer is: Take and pass a test within 12 months of application
Which person would NOT need a real estate license? Select one: A. An owner who sells no more than three of her own houses in a year B. A salaried property manager who is employed to manage the apartment and lease individual units C. An attorney who is offering real property for sale under court order D. All of the above
Each of these persons are specifically exempt from licensure. The correct answer is: All of the above
A licensee presents a full-price offer to the seller, subject to a home inspection. The agent orders the home inspection from a friend, who then pays him a referral fee. This action would violate the Real Estate Board regulations unless: Select one: A. The inspector is licensed in Virginia B. The fee is less than $100 C. The fee is acknowledged, in writing, by the parties to contract D. The inspection service provides a warranty
Except as otherwise prohibited by RESPA, all active licensees may accept referral fees for services required by a sales contract (inspection, survey), so long as the fee is acknowledged by the parties in writing before requesting the service (failure to properly receive consent is a violation). The correct answer is: The fee is acknowledged, in writing, by the parties to contract
An associate broker is described as a: Select one: A. Member of the MLS B. Broker working for another broker C. Broker who is also licensed as a rental location agent D. Non-resident, licensed in another state as a broker
The regulations describe an associate broker as a broker working for another broker. The correct answer is: Broker working for another broker
A salesperson took a listing on October 15. The property sells on December 20 and closing takes place on January 15. Unfortunately, the salesperson forgot to renew her license when it expired on December 31. Which of the following statements is true in this situation? Select one: A. The salesperson is entitled to receive her commission B. The salesperson can only be paid if her license is renewed prior to January 31 C. The salesperson cannot be paid D. The salesperson can be paid if she retakes the state licensing exam
The salesperson was properly licensed when a buyer was found in the transaction. Therefore, she would be entitled to the earned commission. The correct answer is: The salesperson is entitled to receive her commission
Which of the following statements is correct if a licensee is leasing his own property, without help from a broker? Select one: A. The licensee is exempt from both the Federal and Virginia Fair Housing Laws B. The licensee may be exempt from the Virginia Landlord Tenant Act C. The licensee is required to disclose the name of his employing broker D. The licensee is not subject to the rules and regulations of the Board
If the licensee qualifies, he may be exempt from the Landlord Tenant Act (like any other citizen of the state). The correct answer is: The licensee may be exempt from the Virginia Landlord Tenant Act
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
If the person refuses to perform his or her duty, this is an issue between the broker and the salesperson. The law does not require that the license be returned unless the broker "fires" the agent. The correct answer is: When the salesperson refuses to perform real estate duties
A builder wants to sell tracts of land that he owns. This person: Select one: A. Must have a broker's license B. May allow unlicensed employees (on a regular salary) to sell the tracts C. May only employ licensees to sell each tract D. Must register with the Real Estate Board
Regular, salaried employees of a property owner can sell or lease the property without needing a license. This is true because owners are allowed to sell their own land without being licensed. The correct answer is: May allow unlicensed employees (on a regular salary) to sell the tracts
Under which circumstance can a salesperson be licensed with more than one Virginia broker? Select one: A. Under no circumstance B. With written permission of the Virginia Real Estate Board C. With written permission of each broker D. With written permission of the Association of Realtors
Salespersons cannot hold concurrent licenses--only brokers can. The correct answer is: Under no circumstance
Juan obtains his license on May 3rd. How much continuing education must Juan complete? Select one: A. 8 hours within the first year B. 16 hours within the first two years C. 30 hours within the first year D. 30 hours before he can actually receive his license
Salespersons must complete 30 hours of post-license education within the initial year of licensure. Although the question does not specify whether Juan obtained a sales or broker license, none of the answer choices are consistent with broker CE. Therefore, the BEST choice is that Juan must complete 30 hours (PLE) within the first year. The correct answer is: 30 hours within the first year
Two brokers are involved in a dispute over splitting a commission. Which entity would NOT involve itself in resolving the matter? Select one: A. The Virginia Association of Realtors B. The Virginia Real Estate Board C. A court of law having jurisdiction over the brokers D. The local Realtors Association
The Virginia Real Estate Board does NOT concern itself with disputes between brokers and/or salespersons. They would only become involved if the License Law had been violated. However, dispute resolution could come from any of the other sources mentioned. The correct answer is: The Virginia Real Estate Board
The Real Estate Board has authority to administer all of the following laws EXCEPT: Select one: A. Real Estate Transaction Recovery Act B. Land Tort Reform Act C. Real Estate License Law D. Virginia Fair Housing Act
The Virginia Real Estate Board has authority to administer all of the listed laws except the Land Tort Reform Act. The correct answer is: Land Tort Reform Act
A salesperson whose license is on an inactive status may: Select one: A. Only receive referral fees for sending buyers to other salespersons in his office B. Continue to use cards and stationary which state that he is a licensee C. Renew his license every two years by paying the renewal fee D. List and sell property for relatives at a discounted price
The licensee could maintain an inactive status by paying the renewal fee every two years. Receiving referral fees, using cards or stationary which state he is a licensee, and selling or listing for relatives would all violate Board regulations. The correct answer is: Renew his license every two years by paying the renewal fee
A tenant lives in a four-unit apartment building. He agrees to maintain the building if he can receive a reduced rental fee. In this situation, which of the following statements is correct? Select one: A. The owner and the tenant are exempt from the real estate License Law B. The tenant must establish an escrow account C. Both the tenant and owner are subject to Board regulations D. To be exempt, the tenant must pay his own utilities
The owner doesn't need a license because he is acting in relation to his own property. The tenant does not need a license because maintenance services are not acts of real estate brokerage The correct answer is: The owner and the tenant are exempt from the real estate License Law
Which person is designated to ensure compliance with Virginia license law and be responsible for the activities of the entire firm? Select one: A. Associate Broker B. Director C. Supervising Broker D. Principal Broker
The principal broker is the person designated with responsibility for the entire firm, and must she must also ensure compliance from all affiliated licensees. A supervising broker may be appointed to assist with these duties. However, at the end of the day, the principal broker bears ultimate responsibility for the actions of the firm. The correct answer is: Principal Broker
What is the purpose of Virginia's real estate laws, rules, and regulations? Select one: A. To make licensed real estate agents more professional B. To protect the public interest C. To allow licensed real estate professionals to earn more money D. To comply with federal law
The purpose of ANY law is to protect the public. The same is true of the real estate License Law. The correct answer is: To protect the public interest
The supervising broker must post which records in a conspicuous place at the branch office? Select one: A. The branch office license B. The list of licensees assigned to that office C. The licenses of all salespersons working in the office D. Both A and B
The supervising broker must post the branch office license and a list of assigned licensees. A branch office would not display individual licenses since those must be kept at the main office. The correct answer is: Both A and B
A Virginia real estate license must be renewed at periodic intervals. The regulations specify that: Select one: A. A broker's license must be renewed on June 30 of every even numbered year B. Salespersons and associate brokers must renew their licenses every two years in the month of their birth date C. All licenses must be renewed biennially in odd numbered years D. Brokers must renew their licenses every two years in the month that it was issued
All NEW salespersons must complete post license education (PLE) within the initial year of licensure. All other active licensees (brokers, salespersons who have completed PLE, and those licensed through reciprocity) must complete continuing education (CE) every 2 years. A license expires in the same month it was originally issued. Note that in certain situations (certified illness, undue hardship), the Board may grant an exemption or waive/reduce CE requirements for a licensee. The correct answer is: Brokers must renew their licenses every two years in the month that it was issued
After the death or disability of the only broker in a real estate firm, how long does a Board-approved person have to conclude the business? Select one: A. 120 B. 150 C. 180 D. 210
If a firm's principal broker dies or becomes incapacitated, the Board may approve an unlicensed person to conclude the firm's business (limited to 180 days). The correct answer is: 180
It is necessary to take and pass an examination in order to become licensed in Virginia. Which of the following persons could become licensed without taking an examination? Select one: A. An attorney who is licensed to practice law in Virginia B. A person who will only work as a referral agent C. A person who is currently licensed in another jurisdiction D. None of the above
In order to work as a real estate agent in Virginia, an individual must take and pass the license exam. Applicants through reciprocity may not have to take the full exam (state and national sections), but they MUST take and pass the state portion in order to apply for a VA reciprocal license. The correct answer is: None of the above
The Real Estate Board is responsible for: Select one: A. Determining commission splits between all MLS brokers B. Waiving education or experience requirements C. Standardization of the clauses contained in a listing agreement D. Setting the commission rates for different types of property
Of the items listed, the only thing that the Board has any involvement in are the education and testing requirements. The Board may choose to waive experience or education requirements for a candidate who applies for a license by reciprocity. They may also waive/reduce CE requirements in cases of certified illness or undue hardship. However, the licensee still needs to pass the Virginia Law portion of the licensing exam. The correct answer is: Waiving education or experience requirements
The real estate license of any person or firm may be revoked by which of the following entities? Select one: A. Attorney General of the Commonwealth of Virginia B. Virginia Association of Realtors C. Virginia Real Estate Board D. Both A and C
Only the Board can revoke real estate licenses. If court action was brought against a licensee, the Attorney General may request that the Board revoke the real estate license. However, only the Board may actually perform such an action. The correct answer is: Virginia Real Estate Board
If a broker operates the firm from an office in his home, it must: Select one: A. Be clearly separate from the living area B. Not exceed 500 square feet in size C. An office cannot operate on a residential property D. Only be accessible to the public
A firm cannot operate on residential property unless the business office is completely separated from the living quarters (i.e., separate entrances). The correct answer is: Be clearly separate from the living area
An associate broker must be: Select one: A. A member of the National Association of Realtors B. A member of the MLS C. Employed by another broker D. Part of a franchise firm
Any person who holds a broker's license, but is NOT the principal broker of a firm, is considered to be an associate broker. Therefore, an associate broker must work for another broker. The correct answer is: Employed by another broker
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
Applicants need only be 18 years old, with a high school diploma or its equivalent. Non-residents are eligible for a license. However, the law does require that applicants be competent and have a good reputation for honesty. The correct answer is: Competent and have a good reputation for honesty
Which of the following statements is true about a branch office? Select one: A. To facilitate supervision, it must be located within a reasonable distance from the main office B. It may be supervised by a salesperson with 3 years experience C. It must be supervised by an on-premises principal or associate broker D. A broker may mange two separate offices if they are within three miles of one another
Branch offices can only be managed by the principal OR an associate broker (who has been designated as the "supervising broker"). A manager can only manage one office. The correct answer is: It must be supervised by an on-premises principal or associate broker
A real estate licensee is required in order to: Select one: A. Offer to sell, purchase, or exchange real estate on behalf of another for a fee B. Sell or rent property through a foreclosure process C. Sell or rent investment property for profit D. All of the above
Buying, selling, or leasing on your own behalf does not require licensure. Usually, the court appoints a person to handle the sale of property in foreclosure and no license is required. However, when you act for another person and for a fee, a license is required. The correct answer is: Offer to sell, purchase, or exchange real estate on behalf of another for a fee
Before a person can apply to obtain a broker's license, how much experience must she have as a salesperson? Select one: A. 1 year B. 2 years C. 3 years D. 5 years
The law requires that a person be an active salesperson for 36 of the last 48 months before applying for a broker license. The correct answer is: 3 years
If a salesperson or associate broker changes her principal place of residence, Virginia License Law requires that: Select one: A. The broker notify the Board within 10 days B. The licensee notify the Board within 10 days C. The broker notify the Board within 30 days D. The licensee notify the Board within 30 days
The licensee, not the broker, must advise the Board of any changes in personal information within 30 days. The correct answer is: The licensee notify the Board within 30 days
The Real Estate Board regulates the: Select one: A. Real estate licensing examinations B. Real estate sales commissions C. Wording contained in standard exclusive right-to-sell listing agreements D. Size of "For Sale" signs placed on private property
The Real Estate Board regulates the format, scheduling, and administration of the real estate licensing exam. The other choices are outside of the Board's authority. The correct answer is: Real estate licensing examinations
When a real estate license has expired, when can a person reinstate his license without monetary penalty? Select one: A. Within 15 days B. Within 30 days C. Within 1 year D. The licensee cannot be reinstated after expiration
Licensees must renew their license BEFORE it expires. Licensees may reinstate their license within 30 days by paying the regular renewal fee (no additional penalty). Afterwards, licensees must pay a reinstatement fee (Day 31 to 1 yr) or re-apply for initial license if not reinstated in a timely manner (more than 1 yr). The correct answer is: Within 30 days
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
Licensees with inactive licenses must apply for active status within three (3) years or re-qualify (retake their pre-license education and exam). As always, the license activation is subject to the Board's discretion. Also remember that inactive licensees cannot engage in ANY acts that require a real estate license. The correct answer is: Either A or C
An applicant must meet which of the following requirements in order to become a salesperson or broker? Select one: A. Be at least 18 years of age B. Be a US citizen C. Hold degree in real estate D. Be a Virginia resident for at least 1 year
Of the choices listed, the only Virginia requirement is that a person be at least 18 years of age. Applicants must also have a high school diploma (or its equivalent), meet the personal conduct standards set by the Board, and any out-of-state licenses must be in good standing. Broker candidates must have met the minimum experience requirements (actively engaged as a salesperson at least 3 yrs). The correct answer is: Be at least 18 years of age
A real estate license is not required for a: Select one: A. Trustee acting under a court order B. Person selling a vacant lot for a fee C. Person selling industrial real estate full-time D. Person selling houses on a part-time basis
Trustees acting under court order need not be licensed. The correct answer is: Trustee acting under a court order
Jane has been out of town on personal business. When she returns on July 5, Jane realizes that her real estate license expired on May 31. What must she do? Select one: A. Take the license exam as a new applicant B. Apply for reinstatement of her license and pay a fee C. Apply for renewal of her license D. Apply to have her license placed on inactive status
After 30 days (and May 31 to July 5 is more than 30 days), a person may apply to have one's license reinstated and pay the applicable fee. However, you cannot RENEW your license unless you do so within the renewal period. The correct answer is: Apply for reinstatement of her license and pay a fee
Which of the following statements must be true about a real estate salesperson's license? Select one: A. It is mailed to the licensee for delivery to the employing broker B. It is prominently displayed in the main office of the salesperson's firm C. It is prominently displayed in the branch office where the salesperson works D. It is kept in the custody of the employing broker
All licenses are kept in custody of the principal broker at the main firm location. However, licenses do not need to be displayed in the main office or any branch office where salespersons may be assigned. Virginia only requires that the license be available upon request. The correct answer is: It is kept in the custody of the employing broker
A salesperson candidate is required to take a certain number of credit hours before sitting for the state licensing exam. What is this requirement? Select one: A. 45 hours B. 60 hours C. 120 hours D. 180 hours
Before you can even sit for the salesperson exam, you must successfully complete an approved 60 credit hour course. In certain situations, the Board may choose to waive the education requirement (license by reciprocity). The correct answer is: 60 hours
Which person can hold more than one concurrent license issued by the Board? Select one: A. Principal brokers B. Associate brokers and salespersons C. Associate brokers D. Both A and C
Concurrent licenses can only be issued to a person who has a broker's license (a principal or associate broker). The correct answer is: Both A and C
A non-resident broker may open an office in Virginia, provided she does which of the following actions? Select one: A. Employs a resident broker to represent her B. Closes her out-of-state office C. The firm must be incorporated in Virginia D. Files an irrevocable consent to suits and services
For out-of-state (non-resident) brokers and salespersons, the Board requires applicants to file an irrevocable consent to suits and services (agreement which allows the Board to receive notice of any in-state lawsuit on the licensee's behalf). The correct answer is: Files an irrevocable consent to suits and services
If any licensee changes his principal place of residence, he must notify: Select one: A. The principal broker B. The Real Estate Board within 30 days C. The Real Estate Board when his license is renewed D. The Virginia Association of Realtors
Licensees are required by law to inform the Board of any personal information updates (ex. address change, name change). This information must be reported to the Board within 30 days of such change. The correct answer is: The Real Estate Board within 30 days
By Virginia definitions, which person requires a real estate license? Select one: A. An attorney-at-law B. An auctioneer C. An appraiser D. None of the above
The attorney-at-law and the auctioneer are exempt from having real estate licenses when acting within the scope of their profession. An appraiser is not performing regulated real estate activity, but instead gives an estimate or opinion of the value of real property. Under current laws, the appraiser would have to have an APPRAISER'S license, not a real estate license. The correct answer is: None of the above
Which person must have a license issued by the Real Estate Board? Select one: A. A person acting without compensation under power-of-attorney B.A person acting as a trustee in bankruptcy C. A tenant who refers a prospective tenant to the landlord D. None of the above
A license is not required if a person acts as a trustee, gives a referral, or acts without compensation under power-of-attorney. A license is required (with limited exemptions) if, on behalf of another person and for a fee, they: sell or offer to sell; buy or offer to buy; negotiate for purchase/exchange; or rent, lease, or negotiate a lease for real estate. The correct answer is: None of the above
Which person would need a license if selling real property for others? Select one: A. An executor of a will B. An appraiser C. A trustee, appointed by a court D. A receiver in a bankruptcy proceeding
An appraiser only needs an appraiser's license if acting in that role. However, if an appraiser is selling real estate for others, he would need a real estate license. The correct answer is: An appraiser
What is NOT a requirement to become a broker in Virginia? Select one: A. Must be 18 years of age B. Must complete 145 credit hours of courses approved by the Board C. Must have been active as a salesperson for 3 years D. Must be in good standing in any jurisdiction where licensed
A broker candidate must have 180 credit-hours of classroom, correspondence, or distance learning study. The correct answer is: Must complete 145 credit hours of courses approved by the Board
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 concurrent broker's license is a license for BROKERS seeking to become active in multiple firms. The correct answer is: A broker that is active in more than one brokerage firm
A non-resident Virginia salesperson is required to do which of the following actions? Select one: A. Move to Virginia within six months of licensure B. Post a bond C. Maintain an escrow account in Virginia D. Affiliate with a licensed Virginia broker
All Virginia salespersons (resident and non-resident) must affiliate with a Virginia broker in order to practice real estate in the state. The correct answer is: Affiliate with a licensed Virginia broker
A person applying for a license by reciprocity must: Select one: A. Take and pass the Virginia portion of the licensing examination B. Be 21 years of age C. Be actively licensed for the last 48 months in their home state D. Sign an affidavit that they understand the laws of the state of Virginia
All applicants must pass the state portion of the licensing exam before applying for a Virginia reciprocal license. Any other requirements (ex. pre-licensing courses and the national portion of the test) can be waived at the Board's discretion. The correct answer is: Take and pass the Virginia portion of the licensing examination
Which of the following persons is NOT exempt from the licensure requirements? Select one: A. A trustee who is required to sell a house at foreclosure B. An administrator who is required to sell a house in order to liquidate an estate C. A sheriff ordered by the court to sell a house at foreclosure D. An attorney-at-law who is regularly engaged as a real estate broker
An attorney is only exempt from licensing if required to perform an act of real estate IN THE NORMAL PRACTICE OF HIS OR HER PROFESSION. However, an attorney that is regularly engaged in the practice of real estate is not exempt. Therefore, the attorney who is regularly engaged as a real estate broker must have a real estate license. The correct answer is: An attorney-at-law who is regularly engaged as a real estate broker
Which of the following non-residents may obtain a Virginia real estate license? Select one: A. A salesperson licensed in another state B. A broker licensed in another state C. A person that is NOT licensed in another state D. Any of the above
Any NON-RESIDENT may obtain a Virginia license by complying with the regulations of the Real Estate Board. Whether or not that person is licensed in another state is irrelevant. The correct answer is: Any of the above
If a licensee changes their surname, it is the responsibility of the licensee to: Select one: A. Inform their employing broker B. Advise the Board within 30 days C. Advise the Board when their license is renewed D. Advise the Board within 10 days
Any change in personal information (like a name change) must be communicated to the Board within 30 days. The correct answer is: Advise the Board within 30 days
When a broker opens an office, which statement is most likely to be true? Select one: A. The office must be licensed B. A salesperson with 5 years experience may run the office C. The names and address of all salespersons must be sent to the Real Estate Board D. All of the above
Each brokerage firm must be licensed (unless a broker is operating a sole proprietorship with a single location). This firm license is separate and distinct from the individual licenses of persons affiliated with the firm. Note that a licensed broker must manage every firm location. However, there is no requirement to submit the addresses of licensees to the Board. Instead, main offices must submit the name and license number of the supervising broker, if one is designated. Branch offices are also required to submit the name and license number of the supervising broker, as well as the names and license numbers of all licensees assigned to that branch. The correct answer is: The office must be licensed
Which person is required to hold a real estate license? Select one: A. A person who, for compensation, helps to sell his neighbor's home B. A government employee selling land owned by the government C. A property manager who leases property for the owner in the course of his employment D. All of the above
Employees of property owners (ex. government employees and property managers) are exempt from the License Law. However, you MUST be licensed if you do not have an exemption, but sell another person's property for a fee. The correct answer is: A person who, for compensation, helps to sell his neighbor's home
If a real estate company has more than one office in Virginia, that company must: Select one: A. File an annual report with the Board which details the activities of each location B. Designate one location as the main office C. Operate profitably for at least one year D. Submit a copy of each office lease to establish that the location does exist
If a firm has multiple offices, one of those offices must be designated as the "main" office. The correct answer is: Designate one location as the main office
Broker Evans fired Sally because she was stealing from the petty cash fund. Evans told her that he would not return her license until the money had been repaid. But, Sally is innocent! She started looking for new firms after the accusations were made, but can't transfer until her license is returned to the Board. What can Sally do to force Evans to return the license to the Board? Select one: A. File a complaint with the local Realtors' Association B. Sue Evans in the local court C. File a complaint with the Real Estate Board D. Do nothing until the matter is legally resolved
In this case, the Board will get involved because it involves a license. Evans is in violation of the License Law, which requires that a broker return salesperson licenses when they are no longer affiliated, REGARDLESS OF THE REASON. The correct answer is: File a complaint with the Real Estate Board
If a principal broker's license is suspended, what happens to the licenses of any affiliated agents at that firm? Select one: A. Their licenses are not affected B. Their licenses will also be suspended C. Their licenses must be returned to the Board D. They must re-take the exam
In this instance, the licenses will be returned to the Board and re-issued to the same firm when a new principal broker is named, or to the principal broker at another firm if the subordinate chooses to switch firms. The correct answer is: Their licenses must be returned to the Board
Which of the following actions is NOT an act of real estate brokerage? Select one: A. Renting 1/2 of a duplex for a friend B. Helping a friend sell his house for a fee C. Selling a business for a relative D. Taking a listing
Note that businesses are classified as personal property. You do not need a real estate license to sell personal property. The correct answer is: Selling a business for a relative
A salesperson decides to offer a $500 referral bonus to anyone that finds an acceptable buyer for his listing. The salesperson can pay this referral bonus to: Select one: A. Any other salesperson or cooperating broker, as long as he finds a ready, willing, and able buyer B. The owner, as long as he finds a ready, willing, and able buyer C. An unlicensed friend, as long as he finds a ready, willing, and able buyer D. None of the above
Only brokers can pay referral fees and split commissions with other brokers/firms. Salespersons are NOT allowed, so this particular salesperson is violating the License Law. In addition, licensees can only be compensated by the principal broker (or broker-owner). As such, a salesperson cannot accept compensation from another salesperson. The correct answer is: None of the above
The real estate license of any person or firm may be revoked by which of the following entities? Select one: A. Attorney General of the Commonwealth B. Virginia Association of Realtors C. Virginia Real Estate Board D. Both A and C
Only the Board has power to issue and revoke licenses. The Attorney General may suggest that the Board revoke a license as a form of punishment, but he/she cannot revoke a license. The correct answer is: Virginia Real Estate Board
Which person does NOT require a broker's license? Select one: A. A firm partner who does not participate in the brokerage business B. An attorney-at-law C. A person acting under a power-of-attorney, without compensation D. All of the above
Partners, associates, and officers of a corporation ONLY need a broker's license if they personally participate in the brokerage activities of the business. A lawyer is exempt from having a real estate license if the actvity is a part of his regular practice of law. Also, a person with power-of-attorney does not need a license, provided he is acting without compensation. The correct answer is: All of the above
Newly licensed brokers must complete: Select one: A. 30 hours of post-license education B. 45 hours of post-license education C. 16 hours of continuing education D. 24 hours of continuing education
Post license education is ONLY required for newly licensed salespersons. Newly licensed brokers must complete 24 hours of continuing education. The correct answer is: 24 hours of continuing education
In April, Mary took a continuing education course to satisfy her October renewal requirements. A renewal notice was mailed from the Board, but it was lost in the mail and never received by Mary. Mary didn't realize until January that her license had expired. Which of the following statements is correct? Select one: A. Mary is required to retake the license examination in order to reinstate her license B. Mary should apply for reinstatement of her license C. Mary may continue to engage in acts of brokerage if she can establish that the postal service lost the renewal notice D. Mary is required to meet the current educational requirements as if she had never been licensed
Renewal responsibilities always rest in the hands of the individual licensee. Failure to receive notice is no excuse. Mary is allowed to apply for reinstatement since it's still within one year of her expiration date. However, she will be required to pay the applicable fees. The correct answer is: Mary should apply for reinstatement of her license
The Real Estate Board consists of: Select one: A. 6 brokers, 2 salespersons, and 1 attorney B. 7 licensees (with at least 3 years experience) and 2 consumers C. 6 licensees and 1 consumer D. 7 licensees (with at least 5 years experience) and 2 consumers
The Board consists of 7 licensees (broker or salespersons) with at least 5 years experience, AND 2 consumers (citizens). The correct answer is: 7 licensees (with at least 5 years experience) and 2 consumers
Once a license has been issued to a salesperson, her license: Select one: A. Must be carried at all times to establish that she is licensed B. Must be displayed in a conspicuous place in her home office C. Must be kept at the employing broker's main place of business D. Must be displayed in the branch office where she is assigned
The Board will issue an active license directly to the applicant's principal broker (not the licensee). The principal broker must then make the license publicly available at the firm's main office, regardless of where the salesperson actually works. The license doesn't need to be displayed, but should be attainable upon request. In a branch office, the branch license and a list of all licensees assigned to that location must be displayed. The correct answer is: Must be kept at the employing broker's main place of business
The Virginia Real Estate Board is empowered to do all of the following actions, EXCEPT: Select one: A. Establish standardized listing and sales contract agreements B. Administer the Fair Housing Act C. Administer the Transaction Recovery Act D. Administer the Residential Property Disclosure Act
The Real Estate Board does NOT get involved with standardization of forms used in the industry, but they are involved in administrating the other listed laws. The correct answer is: Establish standardized listing and sales contract agreements
When a salesperson transfers from one broker to another, it is the duty of the former broker to: Select one: A. Send the salesperson's license to the new broker B. Send the salesperson's license to the Real Estate Board C. Apply for inactive status for the salesperson D. Hold the license until the salesperson has paid any outstanding bills
The former broker MUST return the license to the Board within 10 days of the transfer to another firm (and this is true regardless of the reason). Licenses may never travel between brokers. Instead, the Board issues a new license to the new broker upon receiving the executed transfer application. The correct answer is: Send the salesperson's license to the Real Estate Board
Every resident broker licensed in Virginia MUST: Select one: A. Maintain an office in Virginia B. Maintain an escrow account in Virginia C. Employ at least one salesperson or associate broker that is also a resident of Virginia D. All of the above
This is a question where the word "MUST" (an absolute term) may cause problems. Brokers are only required to have an escrow account if they hold escrow funds on behalf of another. There is no requirement in the law regarding the number of employees. However, the law does state that EVERY resident broker is required to maintain an office in the State. Note that the broker may display signage at his office, but it is NOT required. The correct answer is: Maintain an office in Virginia
Margie passed her license exam in October, 2013. In December, 2014, she applies for her license. Which of the following statements is true? Select one: A. She must retake the exam B. The Board will issue her license if she can provide proof that she passed C. The Board will issue her active license to her principal broker D. She must affiliate with a licensed Virginia broker
Under Virginia law, you must apply for either an active or inactive license within 12 months (1 year) from the date of passing the exam. Otherwise, you must retake the licensing exam. The correct answer is: She must retake the exam
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
When a salesperson terminates affiliation with one broker (for any reason), that broker MUST return the license to the Board. Under no circumstances can the salesperson take the license to the new broker. Instead, the licensee sends a transfer request to the Board. The correct answer is: Ask Tom to return her license to the Board and apply for a transfer
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
the principal broker must keep the the firm (NOT the branch) license, his own license, and all salesperson and associate broker's licenses at the main office location. Meanwhile, a branch license must be conspicuously displayed at that particular branch office. The correct answer is: Branch license
A motel clerk provides a few leads to a broker in exchange for a percentage of the commission. In this situation, which of the following statements is true? Select one: A. The clerk must be a licensed salesperson B. Neither the broker nor the clerk is in violation of the law C. The clerk must be licensed as a broker D. This is a good sales strategy
Of the choices given, the best answer is that the clerk must be licensed as a broker. He could receive payment if licensed as a salesperson AND employed by the paying broker (since salespersons can only accept compensation from the employing broker). However, we don't have enough information to know if that is true. We DO know that a broker can pay another broker without violating the law. The correct answer is: The clerk must be licensed as a broker
An unlicensed investor plans to open a real estate brokerage business. The business will be operated as a sole proprietorship. In this situation, which of the following statements is true? Select one: A. The business name must include the name of the investor B. The investor must hire a broker to manage the business C. The business can only be organized as a corporation D. Unlicensed persons cannot own a real estate brokerage
Unlicensed investors may own brokerage firms, so long as they hire a broker to manage the business and do not directly engage in acts of brokerage. The correct answer is: The investor must hire a broker to manage the business
Broker Takahashi wants to open her own partnership. Her long-time friend, Sayumi, is not licensed as a real estate agent. However, she agrees to provide most of the start-up money in exchange for a share of the anticipated profits. Sayumi is therefore designated as a senior partner of the brokerage firm. Which of the following statements is correct? Select one: A. Sayumi cannot engage in acts of brokerage B. The partnership must have a separate license issued by the board C. Sayumi can be a senior partner, but she cannot be the principal broker D. All of the above
A person doesn't need a license to have ownership interest in a brokerage firm. However, all partners that engage in acts of real estate must be licensed. Since Sayumi does not have a real estate license, she can neither engage in acts of brokerage nor be the principal broker for the partnership. The correct answer is: All of the above
A licensee was out of town on personal business. When she returned on January 6, she realized that her license had expired on December 31. What must the licensee do if she wants to remain licensed? Select one: A. Re-apply for her new license as a new applicant B. Meet the current educational requirements C. Meet the current educational requirements and pay the renewal fee D. Apply to have her license placed on inactive status
A license may be renewed within 30 days of expiration by completing the regular requirements (continuing education and renewal fee). If this grace period has passed, you must pay a reinstatement fee (instead of the renewal fee) and satisfy all continuing education requirements to keep your license. The correct answer is: Meet the current educational requirements and pay the renewal fee
Which person would require a license, issued by the Real Estate Board? Select one: A. The executor of an estate B. An auctioneer C. An employee of a broker, who negotiates leases D. An individual employed by the owner of rental property
A person must have a license if he negotiates leases on behalf of another. However, if that person were an employee of the owner (NOT the broker) and was performing acts in the regular management that property, then no license would be required. Executors and auctioneers are also exempt from the license law. The correct answer is: An employee of a broker, who negotiates leases
If a licensee has placed her license on inactive status, it means: Select one: A. That she is not affiliated with a brokerage firm or sole proprietor B. That she had no sales or listings during the preceding 12 months C. That she is acting as a referral agent only, and is not active in selling and listing D. That she can engage in acts of brokerage on a selective basis
A person who not affiliated with a broker is considered "inactive." You must apply to have your license placed on inactive status if you are not affiliated with a broker. While inactive, you must not do anything that would constitute an act of brokerage. Those who act as "referral" agents must be legally active. The correct answer is: That she is not affiliated with a brokerage firm or sole proprietor
Virginia License Law defines a broker's place of business as a: Select one: A. Place where real estate business is regularly transacted B. Post office box C. Place that is managed by a senior salesperson D. Place where the broker maintains transaction and escrow records in a safe deposit box
A place of business cannot be a post office box since it HAS to be a physical location. The office must also be managed by a principal broker or supervising broker. Safe deposit boxes are located in banks, not real estate offices. The correct answer is: Place where real estate business is regularly transacted
Jan and Bill have a real estate brokerage partnership. Bill dies, so Jan wants to allow Gene (a salesperson with 8 years experience) to replace him. Which of the following statements is correct? Select one: A. Gene should send his license to the Board and request an associate broker's license B. This is proper as long as Jan remains the senior partner C. Gene must obtain a broker's license D. Gene may continue to operate under his existing sales license
A salesperson cannot be a partner in a real estate brokerage partnership. The correct answer is: Gene must obtain a broker's license
A Virginia real estate firm may operate under the name of: Select one: A. A fictitious name B. A salesperson who holds a business entity license C. A principal broker D. Either A or C
All firms may operate under fictitious names. However, non-broker owned firms can only be licensed in the company's legal name. The name of a salesperson cannot appear in the firm name. The correct answer is: Either A or C
Under certain circumstances, the Board may grant reciprocity to a person who is licensed in another state. Through reciprocity, what is true of a broker licensed in another state? Select one: A. She may act as a broker in Virginia by virtue of her valid out-of-state license B. She may operate in the role of a salesperson in Virginia C. She may handle up to 6 transactions (listings or sales) in Virginia D. The Real Estate Board may waive all or part of the pre-licensing requirements
Any person who engages in acts of brokerage MUST have a valid license issued by the Virginia Real Estate Board. Note that reciprocity only applies to pre-licensing requirements. The correct answer is: The Real Estate Board may waive all or part of the pre-licensing requirements
Every Virginia resident who is also licensed as a broker MUST: Select one: A. Maintain an office in the state of Virginia B. Maintain an escrow account at an insured depository in the state C. Identify his place of business with an appropriate sign D. All of the above
Be careful of the absolute term "MUST." Resident brokers are required to maintain an office in Virginia. However, brokers are only required to establish escrow accounts if they receive escrow funds. Brokers are no longer required to have office signs. The correct answer is: Maintain an office in the state of Virginia
Susan currently owns a house in Virginia, but is looking to move to Texas this summer. Susan decides to sell her own house. Under the circumstances, which of the following statements is true? Select one: A. In Virginia, anyone who sells real property must have a real estate license B. She can obtain a temporary license from the VREB to sell her house C. She does not need a real estate license to sell her own house D. In Virginia, she can only sell her house if she is a licensed appraiser
In Virginia, you must be licensed if, ON BEHALF OF ANOTHER PERSON and for a fee, you perform a regulated act of real estate. A person does not need a license to sell her own property. The correct answer is: She does not need a real estate license to sell her own house
Craig the Broker got his license two years ago, so it is up for renewal. Unfortunately, Craig has been so busy that he hasn't taken any continuing education yet. What will happen to Craig's license if he doesn't complete the required courses before renewal? Select one: A. His license is null and void B. He can pay a fine to extend the renewal date C. His license will expire D. He will have to retake the licensing exam
Licenses that are not timely renewed will expire (unless the Board has granted an exemption for certified illness or undue hardship). Craig did not meet these exemption standards. Therefore, once expired, the licensee cannot engage in regulated activity. Expired licenses may be reinstated for up to one year following expiration, though the Board has the power to deny any reinstatement application (as with renewal and initial licensure). The correct answer is: His license will expire
An individual passes the real estate license examination, then sends in his license application. If approved, the Virginia Real Estate Board must do which of the following actions? Select one: A. Send a license to the employing broker by certified mail B. Mail a license to the broker named on the license application C. Publish a list of persons that have been granted licenses D. Mail a license directly to the applicant
Licenses are delivered directly to the licensee's principal broker. However, the law does not require the Board to mail the license by certified mail. The correct answer is: Mail a license to the broker named on the license application
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
Marty must submit an application, pay the associated fees, and affiliate with a broker. The salesperson license can then be activated and Marty will have permission to sell (no need to apply for a temporary license). New salespersons must complete PLE within the initial year of licensure, but they are able to sell before that deadline if they possess an active license. The correct answer is: Affiliate with a broker and submit an application for licensure
Who is exempt from Virginia's real estate license requirements? Select one: A. A referral agent B. The manager of a branch real estate office C. A rental location agent D. None of the above are exempt
Note that persons who act as rental location agents are not required to have a license. As of July 1, 1992, rental location agents were no longer required to register with the Board. The correct answer is: A rental location agent
What is required in order to be eligible for a Virginia salesperson's license? Select one: A. Complete an 18 credit hour course in the principles of real estate B. Be at least 18 years old C. Attend at least 3 seminars conducted by the Board D. Be a resident of Virginia
Of the answers given, the only correct requirement is that an applicant must be be 18 years old. The correct answer is: Be at least 18 years old
Under the broker's supervision, his unlicensed assistant may: Select one: A. Take listings over the telephone B. Give additional information to callers about available listings C. Rent apartments for a small fee D. Prepare and file papers for tenant eviction for non-payment of rent
Of the answers shown, an unlicensed employee can only prepare and file papers for a tenant eviction. The correct answer is: Prepare and file papers for tenant eviction for non-payment of rent
The Virginia Real Estate Board is empowered to: Select one: A. Levy fines B. Reimburse aggrieved persons C. Adjudicate disputes between licensees D. Enforce the code of ethics
Of the choices given, the Virginia Real Estate Board only has the power to fine licensees. They may also suspend, revoke, or fail to renew a license. The Board does not pay aggrieved persons, but they do investigate complaints and can AUTHORIZE payments to be made from the Transaction Recovery Fund. The correct answer is: Levy fines
When a salesperson terminates affiliation with a broker, that salesperson must: Select one: A. Give back all listings acquired while affiliated with the broker B. Mail his or her license to the board C. Return all customers cards to the employing broker D. Do nothing
Of the choices listed, the salesperson need not do anything. It is the broker, not the salesperson, who must return the license to the Board. The correct answer is: Do nothing
Two brokers are involved in a dispute over a commission split. Which of the following entities could become involved in settling the matter? Select one: A. A court having jurisdiction over the brokers B. The Virginia Real Estate Board C. The Director of the Department of Professional and Occupational Regulation (DPOR) D. The enforcement branch of DPOR
Of the choices presented, only a court could become involved in a commission dispute between brokers. The correct answer is: A court having jurisdiction over the brokers
When a broker or salesperson license is renewed, the licensee MUST: Select one: A. Attest to a prescribed level of competency B. Submit a credit report C. Take a new examination D. Pay the required renewal fees
Of the items listed, the only requirement for license renewal is to pay the fees. Remember, you must also complete any required continuing education before renewal (unless an exemption is granted), but this was not a choice. The correct answer is: Pay the required renewal fees
All firms must have one principal broker. The principal broker has all of the following duties, except: Select one: A. Responsible for all escrow accounts B. Must supervise all firm advertising C. Must keep all financial records for 5 years D. Must ensure compliance with all laws and regulations at all locations
Principal brokers must keep all financial records (source of funds, disclosures, executed documents) for 3 years in one location (main or branch office). The correct answer is: Must keep all financial records for 5 years
How much experience should a salesperson have before applying for a broker's license? Select one: A. 6 months B. 12 months C. 24 months D. 36 months
Prospective brokers must have 36 months (3 years) experience as a salesperson before applying to be a broker. The correct answer is: 36 months
Which of the following statements is true about the branch office of a Virginia real estate firm? Select one: A. The office must have an escrow account B. The office can be managed by a salesperson with 3 years experience C. The office must have a separate license D. The branch office must display the licenses of all agents assigned to that particular office
Remember that a branch office must be licensed. This license is separate and distinct from an individual license (ex. salesperson or broker license). The branch license is also separate and distinct from the firm license held at the main place of business. Note that branch offices must display the branch license and a list of all salespersons and associate brokers assigned to that particular location. The correct answer is: The office must have a separate license
A licensee is on vacation when his license expires. He still needed to take one more continuing education course before his license expiration date. What should he do? Select one: A. Take the continuing education course B. Pay a $200 fee and re-apply for his license C. Take the continuing education course and apply to reinstate his license D. Apply for a license as a new applicant
Remember that licensees may renew a license within 30 days of expiration without penalty. We are not told how long ago the license expired, so an additional fee may or may not be required. However, the only choice that covers all situations is to take the course and apply for reinstatement. The correct answer is: Take the continuing education course and apply to reinstate his license
When a broker renews his license, which of the following items must accompany that renewal application? Select one: A. The renewal fee B. The renewal fee, plus $20 payment for the Transaction Recovery Fund C. The renewal fee, plus proof of membership in the Association of Realtors D. The renewal fee, plus proof of Errors and Omissions Insurance
The $20 fee for the Transaction Recovery Fund is only paid when a person first applies for their license. However, an additional assessment could be imposed if the fund drops below $400,000. To renew one's license, a person must complete all required education, fill out the renewal application, and send the renewal fee to the Board. The correct answer is: The renewal fee
The Board takes disciplinary action against a licensed salesperson. Which circumstance might also put the employing broker at risk of disciplinary action? Select one: A. If the broker knew or should have known of the agent's actions B. If the agent's actions were outside the authority granted by the employing broker C. Only if the salesperson is an employee of the broker, not an independent contractor D. The broker is automatically responsible for all actions of any person affiliated with the firm
The Board could discipline the principle broker or supervising broker if it can establish that the broker knew or should have known about the agent's actions. The correct answer is: If the broker knew or should have known of the agent's actions
The Real Estate Board is responsible for: Select one: A. Determining commission splits between all MLS brokers B. Approving the license examinations C. Standardization of the clauses contained in a listing agreement D. Both B and C
The Board does approve the standards for its licensing examination. However, it does NOT get involved in commission rates or standardization of any contract forms used in the industry. The correct answer is: Approving the license examinations
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
The Board has no authority to order a prison sentence. The correct answer is: Impose a penalty of up to one year in prison
The Real Estate Board has a responsibility to settle disputes between: Select one: A. A broker and a salesperson, involving employment conditions B. Cooperating brokers, concerning commission splits C. A broker and the local Association of Realtors D. A broker and a salesperson, but only if there is a violation of License Law
The Real Estate Board does NOT get involved in disputes between licensees unless one party has violated the license law. The correct answer is: A broker and a salesperson, but only if there is a violation of License Law
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
The Real Estate Board may enforce Virginia's License Law (the Code of Virginia, Title 54.1, Chapter 21), as well as its own rules and regulations. Note that the phrase "code of ethics" generally refers to standards required by private organizations, like the National Association of Realtors. The correct answer is: Enforcing the License Law
Which person is most likely required to have an active real estate license? Select one: A. Salaried rental property personnel, accepting lease applications on behalf of another B. Independent contractors, negotiating leases on behalf of another for a fee C. Administrators, selling property under court order and for a fee D. Auctioneers, auctioning property on behalf of the property owner and for a fee
The act of buying, selling, or leasing real estate on behalf of another and for compensation is an act of real estate brokerage. Therefore, a license is required UNLESS there's an applicable exemption. Virginia License Law specifies that salaried rental property personnel may show units, provide facts, and accept applications and security deposits without a real estate license. Similarly, persons selling property under a court order can do so without a real estate license. Licensed auctioneers may auction real estate if they are employed by the owner and the bidding is open for no longer than 48 hours. However, an independent contractor paid to negotiate a lease on behalf of another must be licensed. The correct answer is: Independent contractors, negotiating leases on behalf of another for a fee
Carla has been licensed to sell real estate in Wisconsin for the last 10 years. After moving to Virginia, her neighbor finds out about this experience and asks Carla to sell his home. Under these circumstances, Carla: Select one: A. Should contact the local Realtors Association and obtain a temporary license to sell property B. May accept the listing by virtue of her current Wisconsin license C. May accept the listing by reciprocity between Virginia and Wisconsin D. Cannot accept the listing
The fact that Carla holds an out-of-state license is irrelevant. A person CANNOT engage in acts of brokerage in Virginia without holding a valid Virginia license. Under reciprocity, the Board may waive of all or part of the pre-licensing requirements. However, the out-of-state licensee must still take the state portion of the Virginia licensing exam and apply for a Virginia license. Note that a Realtors Association would not have the authority to issue a temporary license (only the Board has that authority, and only in limited circumstances). The correct answer is: Cannot accept the listing
Two individuals want to form a real estate partnership in Virginia. Which of the following statements is NOT true? Select one: A. The person who is active on the brokerage side of the business must have a broker's license B. Both partners must have a broker's license C. One of the partners may be unlicensed D. A license must be obtained from the Real Estate Board for the partnership
The law specifies that if partners are licensed, they must be licensed as brokers (so, a salesperson cannot be a partner). Note that a person doesn't need to be licensed to have ownership rights in a firm. However, if the owners are engaged in acts of brokerage, then they MUST be licensed. The correct answer is: Both partners must have a broker's license
Which person would need a license to sell property on behalf on another? Select one: A. An auctioneer B. A person receiving a gift certificate to sell a property C. An attorney D. A court appointed trustee
The law states that a license is required if performing real estate services for a fee or other valuable consideration (ex. a gift certificate). All of the other choices are persons specifically exempt from the licensing regulations. The correct answer is: A person receiving a gift certificate to sell a property
Angela operated her own brokerage firm until she unexpectedly passed away. The Board appoints her son, Adam, to operate the business for 180 days. During this period, Adam: Select one: A. Will be issued a temporary license by the Board B. Can only conclude the transactions in the process to facilitate the termination of the business C. May take new listings and find buyers for any listings on the books D. Must find a licensed broker to run the business
The only thing that Adam can do is to conclude and terminate the business. This must be done within the designated 180 day period. All listings on the books will terminate automatically, by operation of law, because the "agent" to the contract has died. The correct answer is: Can only conclude the transactions in the process to facilitate the termination of the business
A broker would NOT be in violation of Virginia license law if he: Select one: A. Was aware of the improper dealings performed by his salespersons B. Should have known about the improper dealings performed by his salespersons C. Violated the Fair Housing Act D. Paid or accepted valuable consideration from another broker
The principal broker (and supervising broker, if applicable) should supervise all licensees that work on behalf of the firm. This is important because the broker could be liable if he knew or should have known about illegal conduct and failed to take action. Violating the Fair Housing Act is also specifically prohibited. Therefore, of the listed choices, only accepting or paying "valuable consideration" to another broker is NOT a violation--this is called co-brokerage. The correct answer is: Paid or accepted valuable consideration from another broker
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
The principal broker must maintain all required records for three years. The records must be furnished to the board's agent upon request. The correct answer is: Be furnished to the Board upon request
When a salesperson transfers from one broker to another, who is responsible for sending the salesperson's license to the Board? Select one: A. The old broker and the new broker hold joint responsibility B. The salesperson and the new broker C. The old broker D. The salesperson
When an agent leaves the affiliation of any brokerage, it is the responsibility of the previous/old broker to return the agent's license to the Board (since these licenses are held by the principal broker). The correct answer is: The old broker
By Virginia regulation, a licensee that is "actively engaged" is defined as someone who works: Select one: A. At least 40 hours per week B. At least 30 hours per week C. Less than 20 hours per week D. Any amount of time
The regulations define "actively engaged" as someone who has an active license AND is engaged in regulated real estate activity for at least 40 hours per week. The correct answer is: At least 40 hours per week
A salesperson wishes to transfer from one broker to another. The salesperson can only do this: Select one: A. By having his license returned to the Board and a new license issued to the new broker B. If he gives his current broker 30 days notice C. If he gives his current broker 30 days notice D. If the Board is notified when his license is renewed
When a salesperson transfers from one broker to another, his or her license is returned to the Real Estate Board, who then issues a new license to the new employing broker. The correct answer is: By having his license returned to the Board and a new license issued to the new broker