VA MASTER QUESTIONS

The answer is 5 days following contract ratification or receipt of certificate of resale. The Time-Share Act provides for a 5-day right of rescission for a purchaser of a time-share unit. The contract may be rescinded within 5 days from ratification of the contract or receipt of a certificate of resale.

The answer is 1995. Legislation passed by the Virginia General Assembly in any given year usually becomes effective on July 1 of that year. In the case of the new agency law, additional time was required in order to prepare the Real Estate Board rules and regulations, and the effective date was October 1, 1995.

A declarant remains responsible for the management and maintenance of the entire condominium project until A) the declarant wishes to turn over management to the association. B) all units are sold. C) 75% of the units are sold. D) the condominium association requests the right to manage.

The answer is 75% of the units are sold. Control of the condominium project is turned over to the owners when 75% of the units are sold. The declarant remains as an owner of all unsold units.

A person who has suffered financial loss due to a licensee's misconduct may file a complaint with the transaction recovery fund A) immediately after the event. B) if the licensee involved refuses to pay. C) after all legal avenues of recovery from the licensee have been exhausted. D) if the licensee files for bankruptcy.

The answer is after all legal avenues of recovery from the licensee have been exhausted. An appeal is made to the transaction recovery fund only after all appropriate legal actions to collect payment from the licensee have been taken.

The name in which an escrow account of a real estate brokerage must be maintained is the name A) of the property owner. B) of each party to a transaction. C) of the title company that will be conducting the closing. D) by which the brokerage is licensed.

The answer is by which the brokerage is licensed. For recordkeeping purposes, the escrow account is in the name of the brokerage, and it is then up to the brokerage to identify the parties to whom the funds belong.

The real estate regulations include a long list of the duties of a supervising broker. The most recent duty to be added to the list is A) availability to review and approve all documents. B) availability of training and written procedures and policies. C) ensuring that all affiliated licensees have an active, current license. D) ensuring that all brokerage services are carried out competently.

The answer is ensuring that all affiliated licensees have an active, current license. The other recent revision was that the supervising broker will provide adequate supervision over all unlicensed assistants.

A licensee has committed a violation of Real Estate Board regulation. Will both his supervising broker and principal broker be held responsible for his actions? A) No, only the principal broker will be held responsible. B) No, the supervising and principal brokers would both be held responsible only if they knew or should have known about the violation. C) No, only the supervising broker will be held responsible. D) Yes, the broker is always responsible for the agent's actions.

The answer is no, the supervising and principal brokers would both be held responsible only if they knew or should have known about the violation. Both the supervising broker and the principal broker will be held responsible for the actions of the agent if they knew or should have known of the violation.

If a landlord violates the terms of the lease, in a nonemergency situation, the tenant may A) notify the landlord in writing, allow 30 days for correction of violation, and, if not corrected, file a claim for termination with the general district court. B) notify the landlord in writing of intent to break the lease. C) refuse to pay rent until the repair is made. D) notify the landlord in writing and allow 30 days for correction of violation.

The answer is notify the landlord in writing, allow 30 days for correction of violation, and, if not corrected, file a claim for termination with the general district court. When a landlord violates the terms of the lease, the tenant must notify the landlord in writing, allow 30 days for correction, and, if not corrected, file a claim with the general district court. The tenant may not refuse to pay the rent or arbitrarily break the lease.

Under the handicap provision of the Fair Housing Act, a landlord may A) refuse to make reasonable accommodations to a no-pets policy. B) limit occupancy to the ground floor for a tenant in a wheelchair. C) require a tenant to pay for any modifications made to a unit. D) refuse to allow a tenant to install grab bars in the bathroom.

The answer is require a tenant to pay for any modifications made to a unit. A landlord must allow a handicapped tenant to make reasonable modifications that will enable the tenant to have full use of the dwelling but the tenant is required to pay for any modifications.

A licensee may transfer from one licensed real estate firm to another by completing and submitting to the Real Estate Board a transfer application along with the set fee. The transfer becomes effective when A) the new principal broker executes the application accepting responsibility for the licensee's activities. B) the Real Estate Board receives the application and fee. C) the current firm's principal broker signs off on the transfer. D) the licensee physically moves into the new office.

The answer is the new principal broker executes the application accepting responsibility for the licensee's activities. The licensee sends the signed application and fee to the Real Estate Board. The licensee is also responsible for notifying the current firm of the transfer. Reference: Licensing > License Maintenance

The first action that a landlord will usually take for nonpayment of rent is to A) post a five-day pay-or-quit notice. B) submit the case to a collection agency. C) request an unlawful detainer warrant. D) evict the tenant.

he answer is post a five-day pay-or-quit notice. The first action to be taken when a tenant has not paid rent is to deliver or post a five-day pay-or-quit notice. Other actions, such as the unlawful detainer warrant, submission to a collection agency, and/or eviction, would be taken later.

All of the following properties are exempt from the provisions of the Virginia Property Owners' Association Act EXCEPT A) a condominium. B) a time-share. C) a condominium located within a planned unit development (PUD). D) a cooperative.

The answer is a condominium located within a planned unit development (PUD). If a condominium exists within a planned unit development, it will be subject to provisions of the Virginia Property Owners' Association Act as well as the Condominium Act.

The Chesapeake Bay Preservation Act is an ordinance adopted by the A) properties adjacent to the Chesapeake Bay. B) entire Commonwealth of Virginia. C) types of boats chartered for use on the Chesapeake Bay. D) locality containing any affected resource protection areas.

The answer is locality containing any affected resource protection areas. Such locality would adopt an ordinance implementing the Chesapeake Bay Preservation Act provisions.

A licensee is obligated to do all of the following for a customer EXCEPT A) treat the customer honestly. B) disclose all material adverse facts about the property. C) perform ministerial acts that require no judgment by the agent. D) assist the customer with negotiation of a contract.

The answer is assist the customer with negotiation of a contract. Under no circumstances can the licensee assist with negotiation of the contract for the customer; contract negotiating is a duty to a client. A licensee's obligations to a customer include honesty, disclosure of material adverse facts, and performance of ministerial acts as needed.

Prior to the first renewal of their license, all new licensees will be required to A) take 8 additional hours of ethics training. B) show evidence of completed sales transactions. C) attend 30 hours of continuing education. D) attend 16 hours of continuing education.

The answer is attend 30 hours of continuing education. All new licensees are required to attend 30 hours of classroom, correspondence, or other distance learning in one of three specified areas: (1) residential real estate, (2) commercial real estate, or (3) property management prior to their first renewal. The 30 hours will also fulfill the 16 hours required of all agents.

If a payment is made from the transaction recovery fund, the license of the licensee involved will be A) automatically revoked but automatically reinstated upon reimbursement to the fund. B) automatically revoked. C) suspended for one year. D) suspended for 30 days.

The answer is automatically revoked. The license is automatically revoked and may be reinstated only after repayment of all funds. The Real Estate Board must review the application for reinstatement; reinstatement is not automatic.

Real estate licenses of salespersons, brokers, and firms all expire A) biennially on the last day of the month in which the license was issued. B) biennially on the last day of the licensee's birth month. C) on the first day of January every two years. D) annually on the last day of the month in which the license was issued.

The answer is biennially on the last day of the month in which the license was issued. Every Virginia real estate license must be renewed every other year by the end of the month in which the license was first issued.

The person responsible for obtaining information regarding registered sex offenders per the Megan's Law disclosure statement in the property disclosure forms is the A) licensee. B) seller. C) buyer. D) broker.

The answer is buyer. The Megan's Law disclosure statement in the property disclosure/disclaimer form makes it very clear that it is the buyer's responsibility to obtain information regarding registered sex offenders for themselves and provides a source for such information. It is not the responsibility of the seller, licensee, or broker.

An individual appointed to carry out the conclusion of a broker's business is only authorized to act in this capacity for a period of A) 60 days. B) 180 days. C) 30 days. D) 365 days.

The answer is 180 days. Six months (180 days) is considered to be an adequate amount of time for the estate to determine a future course of action for the brokerage firm.

A licensee must respond to an inquiry by the Real Estate Board or its agents within A) 10 days. B) 15 days. C) 30 days. D) 21 days.

The answer is 21 days. A licensee must respond to an inquiry by the board or its agents within 21 days. If the board requests that a licensee produce a document, book, or record concerning a real estate transaction in which the licensee was involved, the licensee must produce the requested item within 10 days. The board may extend such time frame for extenuating circumstances. Reference: Miscell

Copies of any disclosures relative to fully executed purchase contracts will be kept by the licensee for a period of A) 1 year. B) 3 years. C) indefinitely. D) 10 years.

The answer is 3 years. Copies of any disclosures relative to fully executed purchase contracts will be kept by the licensee for a period of three years as proof of having made such disclosure, whether or not such disclosure is acknowledged in writing by the party to whom such disclosure was shown or given. Any document or record required to be maintained by a licensee may be an electronic record as long as agreed to by all parties.

In the application for a broker's license, actively engaged is defined as performing real estate activities for an average of A) 30 hours per week. B) 40 hours per month. C) 40 hours per week. D) 20 hours per week.

The answer is 40 hours per week. In order to qualify for a broker's license, a salesperson must have been actively engaged for an average of 40 hours per week as of January 1999.

Whether in whole or in part, the security deposit must be returned to the tenant within A) 10 days. B) 30 days if there is no damage. C) 45 days whether there is damage or not. D) 60 days if there has been damage.

The answer is 45 days whether there is damage or not. The security deposit, whether in full or with a subtraction for damages, must be returned within 45 days after the property is vacated. There are special provisions for cases in which the damages exceed the amount of the security deposit.

isclosure of local restrictions on septic fields is required under the A) Virginia Property Owners' Association Act. B) Virginia Residential Property Disclosure Act. C) Virginia Agency Law. D) Virginia Fair Housing Act.

The answer is Virginia Residential Property Disclosure Act. The Property Disclosure Act requires special written disclosure of any restrictions on or required inspections of septic fields.

An attorney acting as a settlement agent must maintain escrow accounts in accordance with applicable rules of the A) Virginia State Bar and the Supreme Court of Virginia. B) American Bar Association. C) RESA Act. D) Real Estate Board.

The answer is Virginia State Bar and the Supreme Court of Virginia. An attorney who acts as a settlement agent must follow the rules of the Virginia State Bar and the Supreme Court of Virginia on escrow accounts.

If a licensee is found to be guilty of unauthorized practice of law, the licensee may be subject to further penalty from the A) Real Estate Board. B) attorney general. C) Virginia General Assembly. D) Virginia State Bar.

The answer is Virginia State Bar. If a licensee is found to be guilty of unauthorized practice of law, the Virginia State Bar may also assign a penalty. Violation of the RESA regulations would be cause for penalty by the Real Estate Board.

Familial status would apply to all of the following EXCEPT A) a grandmother with legal custody of 8-year-old twins. B) a 17-year-old high school graduate living at home. C) a 21-year-old student living at home. D) a pregnant woman.

The answer is a 21-year-old student living at home. Familial status only applies to persons age 18 or younger who live at home with a parent or guardian.

At closing, purchasers of a condominium unit are granted a fee simple interest in their unit with A) no interest in the common areas. B) an undivided percentage interest in the common areas. C) a divided interest in the common areas depending on the size of the unit. D) a divided interest in the common areas depending on the number of unit owners.

The answer is an undivided percentage interest in the common areas. Each owner of a condominium unit has a fee simple interest in the unit, plus an undivided interest in the common areas of the condominium project. The undivided interest in the common areas is usually calculated as a percentage of the total square footage of the entire condominium.

Any relationship in which a licensee acts for, or represents, a person in a real estate transaction is defined as A) an agency. B) a dual agency. C) an independent contractor relationship. D) a brokerage relationship.

The answer is an agency. Agency is created whenever one person acts on behalf of, or represents, another. A brokerage relationship and an independent contractor relationship must be established by contract. Dual agency requires informed consent of both parties to the transaction.

In order to apply for concurrent licenses with two separate brokerage firms, the licensee must be A) an associate broker with an expired license associated with the same firm. B) an associate broker with permission from her current broker. C) a salesperson with approval of both principal brokers. D) an associate broker with approval of both principal brokers.

The answer is an associate broker with approval of both principal brokers. Only someone with a broker's license may hold concurrent licenses with approval of both principal brokers.

A licensee who obtains a broker's license but continues to work under the supervision of a principal broker is referred to as A) an associate broker. B) an assistant broker. C) a broker. D) a broker agent.

The answer is an associate broker. Any person holding a broker's license who is affiliated with a firm other than the licensee's own is referred to as an associate broker.

If a landlord chooses to retain a portion of the security deposit for repairs to damages caused by the tenant, the landlord must provide the tenant with A) estimates for work proposed. B) a full refund of the deposit with a bill for damages. C) an itemized list of deductions. D) paid receipts for all work done.

The answer is an itemized list of deductions. If a landlord wishes to retain part of the security deposit to pay for damages caused by the tenant, the tenant must be provided with an itemized list of the deductions along with the portion of the deposit being returned. This must be provided within 45 days of lease termination.

All of the following properties are covered by the Virginia Residential Property Disclosure Act EXCEPT A) an office building. B) a condominium unit. C) a single-family detached house. D) a six-unit apartment building.

The answer is an office building. Commercial properties do not fall under the Residential Property Disclosure Act. All types of residential properties are subject to the provisions of the act.

The escrow account of a real estate brokerage can include all of the following EXCEPT A) anticipated office expenses attributable to the transaction. B) down payments. C) rent security deposits. D) money advanced by a buyer for the payment of closing expenses.

The answer is anticipated office expenses attributable to the transaction. Funds belonging to one of the parties to a transaction must be held in an escrow account, but funds to cover the firm's anticipated office expenses must be held in the firm's own account. Placing firm money in an escrow account is commingling, which is prohibited.

When property is sold by a landlord, tenant security deposits A) become part of the property and belong to the new owner. B) should be used to prepare the property for sale. C) are a subject of negotiation between the landlord and the new property owner. D) are the property of the tenants and are not subject to negotiation between landlord and new property owner.

The answer is are the property of the tenants and are not subject to negotiation between landlord and new property owner. The landlord can make legally permissible deductions, but cannot use the security deposits as a subject of negotiation.

If a seller provides a disclosure, the property is sold as is A) transferring all liability to the buyer. B) except as otherwise provided in the contract. C) regardless of any other terms stated in the sales contract. D) relieving the seller of any responsibility.

The answer is except as otherwise provided in the contract. As is does not relieve the seller of responsibility of meeting all the other terms and conditions expressed in the contract. The contract often warrants that appliances and plumbing, electrical, and mechanical systems are in working order. There may also be specific representations made in the sales contract relative to such things as lead-based paint, radon, and so on.

Additional written disclosure requirements under the Virginia Residential Property Disclosure Act include all of the following EXCEPT A) existence of stigmatizing factors on the property. B) properties located in any locality where there is a military air installation. C) first sale of a dwelling. D) disclosure regarding the validity of septic system operating permits.

The answer is existence of stigmatizing factors on the property. Stigmatizing factors are not considered relevant under Virginia law so no disclosure is required. Reference: Disclosure Requirements > Stigmatized Properties

A principal broker of a firm is responsible for returning all current licenses to the Real Estate Board within 10 days in all of the following changes EXCEPT A) in the case of closing the firm. B) in the case of new ownership. C) in the case of relocating the firm to a new location. D) in the case of changing the firm name.

The answer is in the case of new ownership. A change of ownership only requires filing with the Real Estate Board within 30 days. A change of name, relocation, or closing of a firm requires all licenses to be returned to the Real Estate Board within 10 days.

The only responsibility a licensee has under the Residential Property Disclosure Act is to A) coach the client on how to answer the questions on the form. B) inform all clients and customers of their rights and obligations under this law. C) advise the client whether to sign a property disclosure form. D) fill out the form for the client.

The answer is inform all clients and customers of their rights and obligations under this law. The Residential Property Disclosure Act requires licensees to present the option of selecting either the disclosure or disclaimer form to sellers without recommending either one. Sellers must make their own decision as to which form to use and how to answer the questions on the form.

A licensee has been accused of violating one of the Real Estate Board rules and regulations. If the case is NOT dismissed, the licensee will have all of the following options EXCEPT A) to refuse to cooperate with the Real Estate Board and file suit through the civil court. B) to admit guilt and settle the case through a consent order. C) to request an informal fact-finding conference. D) to submit to a formal hearing conducted by a hearing officer appointed by the Virginia Supreme Court.

The answer is to refuse to cooperate with the Real Estate Board and file suit through the civil court. All licensees are subject to jurisdiction by the Real Estate Board and must cooperate. The respondent to a complaint may admit guilt and settle through a consent order, request an informal fact-finding conference, or submit to a formal hearing.

A limited service agent is still required to do all of the following EXCEPT A) disclose adverse material fact such as defective drywall. B) disclose brokerage relationship to all parties. C) maintain client confidentiality. D) provide client with a marketing plan.

The answer is provide client with a marketing plan. Marketing is a duty that falls under the category of Protecting and Promoting the Best Interests of a Client and is not required of a limited service agent.

Unless a brokerage relationship has been established, Virginia agency law presumes that the third party in the real estate transaction is A) an independent contractor. B) a principal. C) a client. D) a customer.

The answer is a customer. The third party in the transaction is the customer of the licensee. The client is the person in the real estate transaction with whom the licensee has a brokerage (contractual) relationship.

A complete and legible copy of all written documents involved in a transaction must be delivered to all principals to the transaction A) at the settlement table. B) immediately upon being signed. C) as soon as it is practical. D) prior to closing.

The answer is as soon as it is practical. A complete, legible copy of every document involved in a transaction must be delivered to all parties to the transactions as soon as it is practical. Due to circumstances, it may not be possible to deliver a copy immediately upon signing, but it is not sufficient to wait until the settlement table to present such copies. Electronic copies are permissible if agreed to by all parties.

Although the law mandates that a brokerage relationship have a definite termination date, in the event that a date is NOT specified, the relationship will terminate A) never; a brokerage relationship continues indefinitely. B) in 90 days. C) in 30 days. D) immediately.

The answer is in 90 days. A brokerage relationship is required to include a termination date, but if there is none, a period of 90 days will be assumed.

All monies required to be held in an escrow account must be deposited within A) five business banking days from contract or lease. B) five calendar days from contract or lease. C) three business banking days from contract or lease. D) three calendar days from contract or lease.

All monies required to be held in an escrow account must be deposited within A) five business banking days from contract or lease. B) five calendar days from contract or lease. C) three business banking days from contract or lease. D) three calendar days from contract or lease.

All of the following are exempt from licensure in Virginia EXCEPT A) an owner dealing with his own property. B) a salaried employee of a licensed broker negotiating rents for an owner. C) an attorney-at-law in performance of her own duties. D) a trustee in bankruptcy acting under order of the court.

The answer is a salaried employee of a licensed broker negotiating rents for an owner. An employee of a broker performing acts of brokerage for a fee would never be exempt from real estate licensure. Owners, attorneys, and trustees may all be exempt under certain circumstances.

An individual associate broker who has been assigned to supervise the activities of a branch office is referred to as A) a principal broker. B) an associate broker. C) a broker. D) a supervising broker.

The answer is a supervising broker. A large company may have numerous branch offices, each managed by a supervising broker. There is only one principal broker for each firm.

The statute of frauds requires that all contracts for the purchase of real property must be in writing in order to be A) legal. B) enforceable. C) considered. D) valid.

The answer is enforceable. The statute of frauds requires that a contract must be in writing in order to be valid and, thus, enforced. Oral contracts in Virginia are considered to be legal and valid but not enforceable. Most sellers will require that an offer to purchase be in writing before they will consider it.

Funds that must be held by a real estate brokerage in an escrow account include all of the following EXCEPT A) rent security deposits. B) money advanced by a buyer or seller for the payment of closing expenses. C) earnest money deposits. D) estimated payroll tax payments.

The answer is estimated payroll tax payments. Funds belonging to one of the parties to a transaction must be held in an escrow account, but the firm's payroll tax payments must be held in the firm's own account. Placing firm money in an escrow account is commingling, which is prohibited.

A person residing in North Carolina may obtain a Virginia real estate license by meeting all of the same requirements as a Virginia resident, with an additional requirement to A) have relatives living in Virginia. B) promise to move to Virginia within a 12-month period. C) purchase property in Virginia within three months. D) file an irrevocable consent to suits and services.

The answer is file an irrevocable consent to suits and services. A nonresident wishing to have a Virginia real estate license would have only one additional requirement. The nonresident would be required to file an irrevocable consent to suits and services as a protection for the public, in case there should ever be need for legal action.

The Virginia Time-Share Act defines a time¬share as a right to occupy a unit or any of several units during A) five or more separated time periods over a period of at least five years, coupled with either a freehold estate or an estate for years in a time-share project. B) any number of separated time periods over any period of time. C) any number of separated time periods over any period of time, coupled with either a freehold estate or an estate for years in a time-share project. D) ten or more separated time periods over a period of at least ten years.

The answer is five or more separated time periods over a period of at least five years, coupled with either a freehold estate or an estate for years in a time-share project. The Virginia Time-Share Act defines a time-share as the right to occupy a unit or any of several units during five or more separated time periods over a period of at least five years. This right to occupy may be coupled with either a freehold estate or an estate for years.

Using bait and switch tactics would be a violation of the Virginia Administrative Code section on A) improper dealing. B) conflict of interest. C) misrepresentation/omission. D) unworthiness and incompetence.

The answer is misrepresentation/omission. Using bait and switch tactics by advertising property for sale or rent with no intention to sell or rent at the price or terms advertised is an action constituting misrepresentation or omission in the real estate regulations. Reference: Agency Defin

A person was not allowed to rent an apartment in a large highrise apartment project because she uses a wheelchair. She could file a fair housing complaint with the Real Estate Board anytime within A) one year. B) two years. C) six months. D) any time frame; there are no time restrictions for fair housing complaints filed with the Real Estate Board.

The answer is one year. A fair housing complaint must be filed with the Real Estate Board within one year of the date of the alleged violation.

Responsibility for the maintenance of escrow accounts belongs to A) the federally insured Virginia depository in which the accounts are kept. B) the principal broker and any other licensee with escrow account authority. C) solely the principal broker. D) every licensee of the real estate firm.

The answer is the principal broker and any other licensee with escrow account authority. The principal broker always has responsibility for the maintenance of escrow accounts, but a supervising broker and any other licensee with escrow account authority also may be held responsible for the accounts.

Every Friday, a real estate brokerage uses funds held in escrow accounts to purchase certificates of deposit that are then held in the safe deposit box of the brokerage attorney. This practice is A) acceptable, because there is no prohibition against it. B) acceptable only if the certificates of deposit are used as security. C) acceptable, because it helps ensure that funds are not lost. D) unacceptable, because transferring possession of the certificates is considered commingling.

The answer is unacceptable, because transferring possession of the certificates is considered commingling. There is no prohibition against holding escrow funds in the form of certificates of deposit, but the certificates must remain in possession of the brokerage. The brokerage is also prohibited from taking any financial advantage of the certificates, such as using them as security.

All initial applications for licensure must be made A) prior to taking the state real estate exam. B) within 12 months of completing a real estate license course. C) within 6 months of completing a real estate license course. D) within 12 months of passing the state real estate exam.

The answer is within 12 months of passing the state real estate exam. An application for licensure must be made within 12 months of passing the state real estate exam.

A buyer of a resale time-share has the right to rescind a contract within A) 5 days following contract ratification or receipt of certificate of resale. B) 3 days following contract ratification or receipt of certificate of resale. C) 7 days following contract ratification or receipt of certificate of resale. D) 10 days following contract ratification or receipt of certificate of resale.

The answer is 5 days following contract ratification or receipt of certificate of resale. The Time-Share Act provides for a 5-day right of rescission for a purchaser of a time-share unit. The contract may be rescinded within 5 days from ratification of the contract or receipt of a certificate of resale.

The type of listing agreement that is considered to be illegal in Virginia is A) an exclusive-agency listing. B) a net listing. C) an open listing. D) an exclusive right-to-sell listing.

The answer is a net listing. A net listing is illegal in Virginia, as it may take unfair advantage of a seller who is not familiar with property values in the area. A net listing is when the agent is paid everything above an amount specified by the seller. The exclusive right-to-sell listing (when the listing broker is paid regardless of the source of the buyer) is most commonly used. The exclusive-agency listing (when the seller may provide the buyer and thereby avoid paying a commission) is used on occasion. Most brokers will not take an open listing because there is no guarantee of payment.

No transaction expenses may be paid from an escrow account containing a deposit or down payment unless A) there are no other funds from which the expense can be paid. B) a licensee with the real estate firm is owed the money. C) all principals to the transaction agree to the payment in writing. D) the principal broker has determined that the payment is justified.

he answer is all principals to the transaction agree to the payment in writing. Even though deposit or down payment funds have been placed in escrow for the benefit of the purchaser, both buyer and seller must agree to any withdrawal of the funds for any purpose.

Virginia defines elderliness as any person who has reached A) 50 years old. B) 65 years old. C) 62 years old. D) 55 years old.

The answer is 55 years old. Virginia defines elderliness as 55 years old or older, and it is a protected class.

A property owner has more potential liability for error or inaccuracy of information when such information is provided by A) a home inspector. B) a public authority. C) a broker. D) an engineer.

The answer is a broker. The law provides that an owner would not be held liable for error or inaccuracy of information if the owner relied on information provided by a home inspector, engineer, or public authority. There is more potential liability to the owner for relying on information provided by the broker, since there is more opportunity to verify that information.

Although there are some electives allowed in courses that may be taken to qualify for the Virginia broker's license, everyone must take the course in real estate A) finance. B) brokerage. C) appraisal. D) law.

The answer is brokerage. The real estate brokerage class is required of all applicants. However, other classes may be substituted in place of real estate law, finance, and appraisal.

The term caveat emptor, which still applies in Virginia with regard to the resale of real property, means A) buyer beware. B) vacant dwelling. C) no cats allowed. D) home inspection required.

The answer is buyer beware. The Latin term caveat emptor translates as buyer beware and means that the buyer is responsible for checking out the property before making an offer to purchase. Most buyers today protect themselves by having a professional home inspection.

The primary difference between a limited service agent and a standard agent is that the limited service agent A) is only responsible for services requested by a client. B) is not required to make any special disclosure of agency status. C) can choose to not provide certain standard agent duties. D) has no set obligations to a client.

The answer is can choose to not provide certain standard agent duties. A limited service agent has most of the same obligations to a client as does a standard agent, with the exception of certain duties (such as marketing) that fall under the duty to protect and promote the best interests of the client.

The Real Estate Settlement Agents (RESA) Act requires that, if funds for a real estate transaction settlement are kept in an interest-bearing account, the interest A) is divided between the parties. B) cannot be kept by the settlement agent. C) is sent to a charity designated by the Real Estate Board. D) belongs to the settlement agent.

The answer is cannot be kept by the settlement agent. RESA provides in VA Code § 55-525.24 that, if funds are kept in an interest-bearing account, the interest cannot be kept by the settlement agent. Reference: Escrow Accounts > Escrow Account

All of the following terms would be allowed in an advertisement EXCEPT A) female roommate wanted. B) mother-in-law suite. C) bachelor apartment. D) children allowed.

The answer is children allowed. Words used to describe the property are allowed. Sex can be specified for shared living quarters. Children allowed or disallowed is discrimination based on familial status.

The Virginia Consumer Real Estate Settlement Protection Act (CRESPA) was re-codified in 2010 as the Real Estate Settlement Agents (RESA) Act. The purpose remains the same, as to A) clearly define who can lawfully provide real estate settlement services. B) establish appropriate fee schedules for conducting a real estate settlement. C) mirror the purpose of RESPA (Real Estate Settlement Procedures Act). D) provide that only licensed attorneys would be allowed to conduct real estate settlements.

The answer is clearly define who can lawfully provide real estate settlement services. The Virginia Consumer Real Estate Settlement Protection Act (CRESPA) mandated specific requirements for all parties conducting real estate settlements, including attorneys, title and escrow companies, and brokers. The RESA Act continues to give the public the ability to select anyone who meets the criteria for a settlement agent to conduct the settlement on property to be purchased. The law does not set fees.

All of the following are duties to promote the client's best interests EXCEPT A) continuing to seek additional offers after a contract is signed. B) seeking a price and terms acceptable to the client. C) presenting all written offers or counteroffers in a timely manner. D) exercising ordinary care.

The answer is continuing to seek additional offers after a contract is signed. There is no obligation to continue to seek additional offers after a contract is signed. The statutory duty to promote the client's best interests specifically includes seeking a price and terms acceptable to the client, presenting all offers in a timely manner, and exercising ordinary care.

When a broker assigns an agent to represent a buyer in an in-house sale, that licensee is acting as a A) dual agent. B) designated agent for the buyer. C) seller's agent. D) subagent.

The answer is designated agent for the buyer. In an in-house sale, a broker may designate agents to individually represent the buyer and seller. In this situation, the agent selected to represent the buyer is a designated agent for the buyer. The licensee may also act as a dual agent, giving equal representation to both parties.

Under the new real estate regulations, advertising is defined as all of the following EXCEPT A) all forms of representation. B) by any means of communication. C) disseminated in any manner. D) for any purpose.

The answer is for any purpose. The law reads, "for any purpose related to licensed real estate activity".

When the license of a principal broker is revoked or suspended, the licenses of all individuals affiliated with that firm A) will be given to the individual licensees to take to a new broker. B) must be immediately returned to the Real Estate Board until they may be reissued to a new broker. C) must be immediately transferred to another broker. D) will remain with the broker, but licensees may not practice until a new principal broker is named for that firm.

The answer is must be immediately returned to the Real Estate Board until they may be reissued to a new broker. Action by the Real Estate Board resulting in the revocation, suspension, or denial of renewal of the license of any principal broker or sole proprietor automatically results in an order that the licenses affiliated with that firm be returned to the board until such time as they are reissued upon the written request of a sole proprietor or principal broker.

Commingling of client and customer funds with funds of a real estate firm's principal broker, supervising broker, employees, associates, or licensees is A) not permitted under any circumstances. B) not permitted unless the client or customer agrees in writing. C) permitted if the account balance is never less than what is required to cover all deposits. D) permitted if the client or customer has requested it.

The answer is not permitted under any circumstances. Even if the client or customer requests it, the commingling of their funds with those of the brokerage is strictly prohibited.

All of the following are considered mandatory duties to a client EXCEPT A) exercising ordinary care. B) disclosing material facts related to the property. C) performing ministerial acts. D) maintaining confidentiality of all personal and financial information.

The answer is performing ministerial acts. Ministerial acts are those that require no judgment on the part of the agency. They may be done for the benefit of a customer who is not represented by the agent.

Disclosure is required under the Virginia Residential Property Disclosure Act for which of the following properties? A) Property located next to Dulles International Airport B) Property located adjacent to Norfolk Naval Air Base C) Property previously used as a small regional airport D) Property located behind a small local airport

The answer is property located adjacent to Norfolk Naval Air Base. Disclosure is required for proximity to a military airfield, but it is also recommended for other major airfields.

The condominium documents that are required to be given to a prospective purchaser of a resale unit must be provided by the A) buyer's real estate agent. B) seller's real estate agent. C) declarant. D) seller.

The answer is seller. The seller of the condominium unit is responsible for providing the required condominium documents to a prospective purchaser.

Starting in 2010, random inspections of real estate firms focused on a firm's escrow accounts and all of the following EXCEPT A) the firm's policy and procedures manual. B) the firm's determination of appropriate supervision practices. C) the firm's staff salary schedule. D) the firm's availability of training.

The answer is the firm's staff salary schedule. The random inspections of real estate firms that began in 2010 have focused on a firm's escrow accounts, policy and procedures manual, availability of training, and determination of appropriate supervision practices.

All forms of advertising and marketing must include the name of the firm and A) names of all salespeople. B) address of the firm. C) the address and phone number of the principal broker. D) the primary phone number.

The answer is the primary phone number. The name of the firm as known to the public and the primary phone number is required in all forms of advertising; not the address, phone number of the broker, or list of all agents.

A licensee must maintain records of all transactions in which the licensee was involved for A) forever. B) three years. C) one year. D) five years.

The answer is three years. All contractual agreements, including agency representation agreements, must be kept for a minimum of three years. Contracts must be kept whether or not there was a successful transaction.

A brokerage relationship as defined in Virginia agency law differs from an agency relationship because it requires A) a contract between a client and a licensee. B) an agreement between two brokers. C) a unilateral contract signed by one party. D) a contract exclusively for the purpose of buying or selling property.

he answer is a contract between a client and a licensee. A brokerage relationship requires a contract between a client and a licensee for the purpose of buying, selling, renting, leasing, or managing real property. Any time a licensee represents another person, an agency relationship is established; however, a contract is not required under the definition of agency.

If the purchaser is not satisfied with the HOA/POA documents as presented, the contract can be canceled by serving notice within the appropriate time frame by any of the following EXCEPT A) U.S. mail or overnight delivery. B) hand delivery. C) a personal phone call to the owner or listing agent. D) electronic means.

he answer is a personal phone call to the owner or listing agent. In order to be enforceable, all real estate transactions must be in writing. A phone call is not acceptable.

After a fair housing complaint is received by the Real Estate Board, the board must determine within 100 days A) whether there is reasonable cause to believe discrimination exists or if the case should be dismissed. B) the penalty to be imposed for violation of the law. C) whether the case should be referred to binding arbitration. D) the final resolution of the case.

The answer is whether there is reasonable cause to believe discrimination exists or if the case should be dismissed. The Real Estate Board must determine whether there is reasonable cause to believe that discrimination occurred or dismiss the case within 100 days from receiving the complaint. Final resolution of the case, penalty to be imposed, or referral for arbitration would occur according to normal due process.

Unless otherwise agreed to in writing by the principals to a lease transaction, the security deposit, lease rents, and other money paid to a real estate licensee under the terms of the lease must be placed in an escrow account A) by the close of business on the next business day following receipt of the funds. B) within five business banking days following receipt of the funds. C) within four business banking days following receipt of the funds. D) within 48 hours of receipt of the funds.

The answer is within five business banking days following receipt of the funds. Earnest money deposits and down payments must be placed in an escrow account within five business banking days after the ratification of the contract that forms the basis of the transaction, unless the parties agree in writing to some other disposition of the funds.

The Virginia Utility Damage Prevention Act can also have an impact on real estate professionals when they A) take a new listing. B) place signs in front of properties. C) prepare a sales contract. D) arrange for settlement on a property.

The answer is place signs in front of properties. The law applies to real estate professionals who place signs in the area of a utility easement. Miss Utility must be contacted prior to installing a sign.

A Virginia law that can impact residential property, especially for a builder breaking ground on a new development, is the A) Virginia Fair Housing Law. B) Real Estate Settlement Agents Act. C) Virginia Utility Damage Prevention Act. D) Virginia Residential Property Disclosure Act.

The answer is Virginia Utility Damage Prevention Act. Under this law, anyone planning construction on a site must contact Miss Utility so that flags can be placed to show existing utility lines.

All licensees are required to complete continuing education requirements every two years consisting of A) 16 hours of approved classroom or correspondence hours, of which 8 hours must be on ethics, standards of conduct, fair housing, legal updates, agency, and contracts. B) 12 hours of approved classroom or correspondence hours on any real estate-related topics. C) 8 hours of classroom training, of which 2 hours must be on fair housing and ethics. D) 12 hours of approved classroom hours.

The answer is 16 hours of approved classroom or correspondence hours, of which 8 hours must be on ethics, standards of conduct, fair housing, legal updates, agency, and contracts. A total of 16 hours biennially are required, 8 of which must be in ethics, standards of conduct, fair housing, legal updates, real estate agency, and real estate contracts.

Sally Jones received her original real estate salesperson license on April 15, 2017. In order to renew her license on April 30, 2019, she must have completed A) 30 hours of postlicense education by April 15, 2018. B) 24 hours of continuing education. C) 30 hours of postlicense plus 16 hours of continuing education. D) 16 hours of continuing education.

The answer is 30 hours of postlicense education by April 30, 2018. Assuming that the 30 hours included the eight hours of mandatory continuing education (three hours of ethics; two hours of fair housing; one hour each of agency, legal update, and contracts) no additional hours are needed. If any of the required eight hours have not been completed, she will need to take them before April 30, 2019. Reference: Licensing > License M

Responsibilities of a supervising broker include all of the following EXCEPT A) maintaining a physical presence in the office. B) providing training for those affiliated with the office. C) being available for the review of contracts, brokerage agreements, and advertising. D) providing written policies and procedures for the office.

The answer maintaining a physical presence in the office. The emphasis for supervision of an office has shifted from the requirement for a supervising broker to have a physical presence in a set location to that of being available to assist with review of contracts, brokerage agreements, and advertising. The supervising broker is also responsible for providing written policies and procedures in addition to ongoing training of agents.

At what point are licensees required to disclose their brokerage relationship to a party in the transaction who is NOT the licensee's client and NOT represented by another licensee? A) To all visitors at an open house. B) At the first practical time before having a substantive discussion about a specific property C) Before discussing financing alternatives available in today's market D) At the first face-to-face meeting

The answer at the first practical time before having a substantive discussion about a specific property. When dealing with an unrepresented party, the licensee's brokerage relationship must be disclosed at the first practical time before a substantive discussion about the purchase of a specific property. If there is no substantive discussion about a specific property, no disclosure is required.

Monetary claims (per licensee) to the transaction recovery fund for a single transaction are limited to A) $20,000 to any one claimant, with a maximum of $50,000 to all claimants. B) $50,000 to any one claimant, with a maximum of $500,000 to all claimants. C) $20,000 to any one claimant, with a maximum of $100,000 to all claimants. D) $50,000 to any one claimant, with a maximum of $100,000 to all claimants.

The answer is $20,000 to any one claimant, with a maximum of $50,000 to all claimants. Monetary claims paid through the transaction recovery fund are limited to $20,000 to an individual claimant and a total of $50,000 for all claimants in a single transaction involving a licensee.

The minimum balance for the transaction recovery fund is set at A) $400,000. B) $800,000. C) $2,000,000. D) $1,000,000.

The answer is $400,000. The transaction recovery fund must maintain a balance of $400,000. If the fund drops below this level, the Real Estate Board has the right to assess each licensee up to $20 one time within every two-year licensing period.

All of the following financial records must be kept by the principal broker EXCEPT A) the name of the party from whom money was received. B) the place and date of deposit. C) whether the money came from a checking or savings account or from gifted funds. D) the date and amount of money received.

The answer is whether the money came from a checking or savings account or from gifted funds. There is no requirement to include the origin, or the original source, of funds in the financial records. The principal broker must note from whom the money was received, the date and amount, and the place and date of deposit.

A mechanic's lien against the property could be filed by A) ABC Roofing, which completed installation of a new roof four months ago. B) Harris Lumber Co., which provided all materials for a 12' × 20' deck six months ago. C) Let's Swim Pool Installation and Maintenance Co., which installed a swimming pool and deck 88 days ago. D) J & B Electrical Supply, which rewired the entire house to bring it up to code requirements three months and five days ago.

he answer is Let's Swim Pool Installation and Maintenance Co., which installed a swimming pool and deck 88 days ago. Because a mechanic's lien must be filed within 90 days of either completion of the work or delivery of the materials for the construction, only the swimming pool company can file a lien. Reference: Miscellaneous > Virginia Mechanics' Lien Disclosure Act

The initial purchaser of a new condominium unit has the right to rescind the contract without penalty within A) 3 days of contract ratification or receipt of public offering statement with reasonable cause. B) 3 days of contract ratification or receipt of public offering statement for any reason. C) 10 days of contract ratification or receipt of public offering statement with reasonable cause. D) 5 days of contract ratification or receipt of public offering statement for any reason.

The answer is 5 days of contract ratification or receipt of public offering statement for any reason. The initial purchaser of a new condominium unit has the right to rescind the contract without penalty within 5 days of contract ratification. On resale condominium units, the purchaser must receive a package of condominium documents and may rescind the contract within 3 days of receiving the package.

From the time that the contract is ratified or the public offering statement is received, the initial purchaser of a time-share interest has the right to rescind the contract within A) 15 days. B) 10 days. C) 3 days. D) 7 days.

The answer is 7 days. The Virginia Time-Share Act provides a purchaser of a time-share unit with the right to rescind the contract within 7 days from either ratification of the contract or receipt of the public offering statement.

A seller is usually required to sign an affidavit at settlement stating that no work has been performed or materials furnished within A) 120 days before closing. B) 60 days before closing. C) 30 days before closing. D) 90 days before closing.

The answer is 90 days before closing. This protects the purchaser, because a mechanic's lien would have to have been filed within that 90-day period.

Current tenants of a property being converted to a time-share project must be provided with A) 90 days' notice of intent to convert and 30 days to contract to purchase the unit. B) 30 days' notice of intent to convert and 30 days to contract to purchase the unit. C) 90 days' notice of intent to convert and 60 days to contract to purchase the unit. D) 30 days' notice of intent to convert and 60 days to contract to purchase the unit.

The answer is 90 days' notice of intent to convert and 60 days to contract to purchase the unit. The law requires that existing tenants of a property that is to be converted to a time-share project must be given 90 days' notice of the intent to convert. They also must be given a 60-day period to place a contract to purchase the property.

The Real Estate Board receives a fair housing complaint on July 1. They must start the formal proceedings by A) August 31. B) July 10. C) August 1. D) July 31.

The answer is July 31. The Real Estate Board must commence proceedings within 30 days after receiving the complaint, or in this case, July 31.

The latest required topic to be included in the legal update section of the mandated 8 hours portion of the required 16 hours of continuing education for salesperson license renewal is A) Megan's Law. B) Virginia Utility Damage Prevention Act. C) American Disabilities Act. D) National Flood Insurance Program and flood hazard areas.

The answer is National Flood Insurance Program and flood hazard areas. A property located in a FEMA designated flood zone may require flood insurance; this requirement could result in a termination of a contract.

The official name of the regulatory body responsible for administering the Virginia real estate licensure law is the A) Virginia Real Estate Commission. B) Board. C) Real Estate Board. D) Virginia Real Estate Board.

The answer is Real Estate Board. Although at one time called the Real Estate Commission, and more recently, the Virginia Real Estate Board, the official name is currently the Real Estate Board.

Anyone who has a complaint against a licensee for a possible violation of state license law or Real Estate Board regulations may file a complaint with the A) local association of REALTORS® . B) Real Estate Board. C) attorney general. D) local General Assembly representative.

The answer is Real Estate Board. Complaints against real estate licensees for a violation of the license law or Real Estate Board regulations are made first to the Real Estate Board. The violation may then be referred to the attorney general by the Real Estate Board. REALTORS® associations only handle complaints regarding violations of the REALTORS® Code of Ethics. The General Assembly makes law and does not handle complaints of violations of the Real Estate Board rules and regulations or of state licensure law.

A real estate license may only be revoked by the A) Real Estate Board. B) state association of REALTORS® . C) local association of REALTORS® . D) civil court.

The answer is Real Estate Board. Only the Real Estate Board has the authority to revoke a real estate license. The state and local REALTORS® associations may terminate an agent's membership in the trade organization, such as VAR (Virginia Association of REALTORS®) or NVAR (Northern Virginia Association of REALTORS® ). The civil court may determine a penalty for illegal conduct.

Application, renewal, and reinstatement fees are set by the A) Department of Professional and Occupational Regulation. B) association of REALTORS® . C) Real Estate Board. D) Virginia General Assembly.

The answer is Real Estate Board. The Real Estate Board sets all fees required by licensees. The Virginia General Assembly passes legislation; the Department of Professional and Occupational Regulation regulates professions and occupations; and the REALTORS® association only sets fees for its members.

The disclosure of the potential for adherence to any Chesapeake Bay Preservation Act provisions must be made to a prospective purchaser as part of A) purchase contract. B) brokerage relationship agreement. C) MLS listing. D) Residential Property Disclosures form.

The answer is Residential Property Disclosures form. Under the Virginia Residential Property Disclosure Act, information regarding the Chesapeake Bay Preservation Act must be disclosed for a prospective purchaser.

Regulation of the Virginia Utility Damage Prevention Act is the responsibility of the A) General Assembly. B) Real Estate Board. C) State Corporation Commission Division of Utility and Railroad Safety. D) Virginia Fair Housing Board.

The answer is State Corporation Commission Division of Utility and Railroad Safety. For additional information regarding the act, contact the state corporation.

Disclosure of a property's proximity to a military airfield is required under the A) Virginia Utility Damage Prevention Act. B) Virginia Fair Housing Act. C) Virginia Property Owners' Association Act. D) Virginia Residential Property Disclosure Act.

The answer is Virginia Residential Property Disclosure Act. Proximity to a military airfield is a required written disclosure. Disclosure of proximity to a non-military major airport is also recommended.

A licensee moved six months prior to his license renewal and did not notify the Real Estate Board of his new address. Consequently, he did not receive a renewal notice from the Real Estate Board. The licensee will have A) an automatic penalty of $100. B) an additional two months to renew without penalty. C) no penalty since he did not receive a renewal notice. D) a 30-day grace period to reinstate without penalty.

The answer is a 30-day grace period to reinstate without penalty. The Real Estate Board allows for a 30-day grace period in which to renew without paying a penalty; however, the licensee is not allowed to practice during this time. In addition, this licensee would be in violation of the Real Estate Board regulation for not notifying the board within 30 days of a change of address. Reference: Licensing > License

Which of the following would be exempt from the provision of the Fair Housing Act? A) A Catholic Charities home for Catholic children B) A real estate broker selling her own home C) An exclusive spa resort limited to women only D) A non-resident owner of a four-unit building

The answer is a Catholic Charities home for Catholic children. As long as there is no discrimination as to who may become a member of a religious organization, housing can be limited to members of the organization. An owner of a four-unit building must be a resident. There are no exemptions for real estate brokers.

A principal broker acting as a sole proprietor who wishes to operate under an assumed or fictitious name must also provide the Real Estate Board with A) a certificate from the clerk of court in the county or jurisdiction where the office is located. B) a $100,000 bond insurance. C) increased errors and omissions insurance. D) an explanation for the wish to use an assumed or fictitious name.

The answer is a certificate from the clerk of court in the county or jurisdiction where the office is located. A principal broker has the right to operate under a fictitious name without additional bond or errors and omissions insurance but must provide certification from the local clerk of the court showing the business's name and address.

Prior to the recordation of documents, the settlement agent may disburse any or all of the following EXCEPT A) money necessary to record instruments. B) a commission due to a real estate licensee representing one of the parties to the transaction. C) funds that are overpayments to be returned to the provider of the funds. D) funds that the provider has directed by a separate written instrument to be disbursed prior to recordation of any instrument.

The answer is a commission due to a real estate licensee representing one of the parties to the transaction. Only the other items mentioned may be disbursed prior to the recordation of any transaction instrument.

In order for an owner/declarant to commit a property to becoming a condominium, the owner/declarant must submit to the Real Estate Board all of the following EXCEPT A) a declaration instrument, including a full description of the property, the name, the plans, the allocation of undivided interest in the common elements, any easements, and a description of proposed alterations to existing units. B) a public offering statement (POS) to be provided with all contracts for the first sale of a unit. C) a complete marketing plan and pricing schedule. D) a copy of the bylaws under which the condominium will operate.

The answer is a complete marketing plan and pricing schedule. Marketing plans and pricing schedules are not subject to Real Estate Board regulation. A declaration, bylaws, and public offering statement must be submitted to the Real Estate Board for every new condominium.

A brokerage relationship is established by A) a contractual relationship between the agent and a client. B) entering a listing into a multiple listing service. C) the payment of compensation. D) signing a purchase contract or lease.

The answer is a contractual relationship between the agent and a client. A brokerage relationship is established by contract. Although oral contracts are legal in Virginia, they are not enforceable, and it is preferable to establish a brokerage relationship with a written agreement. The payment of compensation, inclusion in a multiple listing service, or signing of some other contractual agreement does not establish a brokerage relationship.

The Virginia Residential Property Disclosure Act requires sellers of certain residential real property to provide A) full disclosure of all information about the property. B) full disclosure of all interesting facts about the property. C) a disclosure stating that the owner makes certain representations as to the real property. D) full disclosure if the seller is a licensee.

The answer is a disclosure stating that the owner makes certain representations as to the real property. The Virginia Residential Property Disclosure Act provides for a property disclosure stating that the owner makes the following representations as to the real property. Certain transfers of residential property are excluded from this requirement. Both the seller and the agent must disclose all material adverse facts. There is no special provision for sellers who are licensees.

A client who has a brokerage relationship with a licensee is liable for A) a misrepresentation that resulted in financial harm. B) any misrepresentation made by the licensee. C) a misrepresentation made by the licensee that is known to the client and not corrected. D) a suspected misrepresentation.

The answer is a misrepresentation made by the licensee that is known to the client and not corrected. The client is not responsible for any misrepresentation made by the licensee unless the client was aware of the misrepresentation and took no action to correct it.

If the sole proprietor of a firm dies or becomes disabled, the Real Estate Board's first choice for appointing someone to conclude the business of the deceased or disabled broker is A) an adult family member of the broker. B) an agent designated by power of attorney of broker. C) a personal representative qualified by the court. D) the executor of the broker's estate.

The answer is a personal representative qualified by the court. The new real estate regulations establish a priority order for someone named to conclude the business of a deceased or disabled broker.

All of the following would be allowed under RESA to conduct a closing or settlement service EXCEPT A) an attorney. B) a title insurance company. C) a real estate salesperson. D) a real estate broker.

The answer is a real estate salesperson. A person with a real estate salesperson's license is not allowed to conduct settlements. RESA allows for attorneys, title insurance company agents, or real estate brokers to conduct real estate settlements. Referenc

An exclusive right-to-represent buyer agreement would typically NOT include A) a statement of how the broker may unilaterally cancel the agreement. B) a recitation of the potential for disclosed dual or designated representation. C) specific terms of the agreement regarding how and when the broker will be paid. D) the duties owed by the broker to the buyer-client.

The answer is a statement of how the broker may unilaterally cancel the agreement. It is not acceptable practice for either agents or principals to presume the right to unilaterally cancel their mutual agreement. Many service agreements do contain a provision that allows the parties to have a time period during which to correct matters that seem to be in conflict with their respective rights and obligations. The time period is usually a specified number of days.

The Virginia Mechanics' Lien Disclosure Act requires a seller of a property to disclose in the sales contract A) full details of a pending mechanic's lien. B) any construction work done prior to marketing the property. C) the name and address of the contractor completing work on the property during the past six months. D) a warning that a mechanic's lien could be filed against the property.

The answer is a warning that a mechanic's lien could be filed against the property. The Mechanics' Lien Disclosure Act requires that a contract include a statement warning the purchaser that there could be a potential mechanic's lien against the property. An actual description of the work, the name and address of the contractor, or details of a pending lien are not required.

Any person, firm, partnership, association, corporation, limited liability company, or sole proprietor that sells or offers to sell property in Virginia must be licensed in Virginia if they A) accept a fee, commission, or other valuable consideration. B) expect to receive compensation for the sale of the property. C) own more than four properties. D) are licensed in another state.

The answer is accept a fee, commission, or other valuable consideration. The acceptance of a fee, commission, or other valuable consideration for performing an act of real estate brokerage for others is the key here. Licensees are entitled to receive compensation for selling their own property. The number of properties owned or being licensed in another state is immaterial.

Under the Virginia law of agency, clients and licensees are responsible for A) imputed knowledge. B) implied knowledge. C) vicarious knowledge. D) actual knowledge.

The answer is actual knowledge. A major difference between the common law of agency and the Virginia law of agency is that clients and licensees are no longer responsible for imputed, implied, or vicarious knowledge. Under Virginia's law of agency, clients and licensees are responsible for actual knowledge.

A licensee could be charged with improper dealing if the licensee A) placed a For Sale sign on private property with permission of the owner. B) entered into a brokerage relationship for a period of exactly one year. C) advertised a property in the newspaper without the name of the firm. D) offered a property for lease at a rent specified by the owner.

The answer is advertised a property in the newspaper without the name of the firm. Under Real Estate Board rules and regulations, advertising without the name of the broker is considered improper dealing. In regard to the other answer choices, the term of a brokerage relationship may be any time agreed upon, rents are specified by the owner, and permission must always be granted for placement of a For Sale sign.

New multi-family buildings without elevators are required to have A) reinforced bathroom walls for installation of grab bars. B) all accessibility requirements in ground-floor units. C) wheelchair access to all units. D) light switches accessible to persons in wheelchairs.

The answer is all accessibility requirements in ground-floor units. The requirement for wheelchair-accessible doors, switches, plugs, and other such items only applies to ground-floor units if there is no elevator. A building with an elevator must meet all of the accessibility requirements.

Real estate regulations now provide that continuing education credits completed in excess of those required in the current license term that are obtained in the six months immediately before the next license expiration date will carry over into the next two-year renewal period. The new regulation applies to A) only licensees in their first year of licensure. B) any licensee who has completed 30 hours of education. C) only licensees in their second or subsequent years of licensure. D) all licensees who have completed the education hours required for renewal.

The answer is all licensees who have completed the education hours required for renewal. In March 2016, the Real Estate Board determined that the new regulation would also apply to new licensees who have completed the required 30 hours of postlicense courses in their first renewal period and who wish to take additional courses in the six months before their renewal date.

A licensee selling his own home is now required to disclose his ownership interest A) in all of these. B) on a For Sale sign on the property. C) in newspaper ads. D) in a listing on the company website.

The answer is all of these. New legislation now requires a licensee to provide notice in all advertising that the owner is a real estate licensee. Formerly, this was only required if the licensee planned to sell as an FSBO and not list with a broker.

An example of making what the Fair Housing Act refers to as reasonable accommodations would be A) allowing a tenant to have a guide dog in a building with a no-pets policy. B) allowing a tenant to install grab bars in the bathroom. C) installing a wheelchair ramp at the front entrance. D) requiring a wheelchair-bound tenant to rent a ground-floor unit.

The answer is allowing a tenant to have a guide dog in a building with a no-pets policy. The reasonable accommodations phrase refers to rules, policies, and services—not to be confused with reasonable modifications, which are those made in order for the tenant to have full use and enjoyment of the actual dwelling.

A person who has passed the state real estate license exam but wishes to affiliate with a company where the licensee will NOT actively practice real estate is considered by the Real Estate Board to be A) an inactive agent. B) a referral agent. C) a part-time agent. D) an active agent.

The answer is an active agent. The Real Estate Board recognizes only two categories of agents: active and inactive. A nonpracticing agent belonging to a referral company is still considered to be active and is subject to all requirements and regulations as such. Any license returned to the Real Estate Board is considered inactive.

A licensee wants to transfer her license from her current firm to a new firm. Under the 2013 streamlined transfer process, the licensee's new broker must do all of the following EXCEPT A) agree to assume supervisory responsibility for the licensee effective the day of transfer. B) certify that the licensee's current firm has been notified. C) affirm that the licensee's license is active. D) affirm that the licensee is of good character and competent to practice real estate.

The answer is certify that the licensee's current firm has been notified. It is actually the responsibility of the licensee to certify that the current firm has been notified. The new broker is responsible for the rest of the listed actions.

All advertisements placed by a salesperson should be under the direct supervision of the principal or supervising broker. These advertisements must include the broker's (firm's) name in the ad A) above the agent's name. B) clearly and legibly. C) in the same size print as the agent's name. D) in larger print than the agent's name.

The answer is clearly and legibly. The only requirement is that the brokerage firm name be clear and legible. The ad must also include the primary phone number of the firm (broker).

Improper maintenance of escrow funds includes A) a principal broker notifying the Virginia Real Estate Board within three business days of the broker's reasonable suspicion of a violation of certain regulations regarding escrow accounts. B) placing funds in an interest-bearing account. C) commingling escrow funds with those of a principal or supervising broker. D) having sufficient balances in an escrow account or accounts at all times for all funds that must be so designated.

The answer is commingling escrow funds with those of a principal or supervising broker. Escrow funds must not be commingled with those of the principal, supervising broker, employees or associates, or any other licensee, or those of the corporation, firm, or association.

Which statement is FALSE regarding the Property Owners' Association Act? A) It sets forth the requirements for the formation and operation of a property owners' association. B) Condominiums, cooperatives, time-shares, and campgrounds are always exempt from the act. C) Special assessments may be levied by the association on the property owners. D) The Real Estate Board is charged with the administrative responsibility for the Virginia POA Act.

The answer is condominiums, cooperatives, time-shares, and campgrounds are always exempt from the act. If any of these types of ownership is located within an area that is subject to the POA Act, that property is subject to not only the regulations governing that type of ownership but also the POA Act.

Disclosure of either dual or designated representation must be A) first signed by the broker. B) included in the normal print size and font of the contract. C) separate from all other disclosures. D) conspicuous and printed in bold lettering, all capitals, underlined, or within a separate box.

The answer is conspicuous and printed in bold lettering, all capitals, underlined, or within a separate box. Disclosure of dual or designated representation must be readily apparent to the other party to the transaction. The law requires that it be conspicuous and printed in bold lettering, all capitals, underlines, or within a separate box. The disclosure may be included with other disclosures and is signed by the parties to the transaction, not the broker.

It is the duty of an agent to make proper delivery to each principal to a transaction complete and legible copies of all of the following EXCEPT A) addenda and written notice of any material changes. B) any required written disclosures. C) all offers to purchase and counteroffers. D) copies of all proposed advertising.

The answer is copies of all proposed advertising. Unless this has been made a specific part of the listing agreement, there is no regulation requiring the delivery of proposed advertising to the client.

An ad used in marketing a time-share project that includes free gifts or prizes must clearly disclose all of the following EXCEPT A) odds of winning the prize. B) conditions under which the gift is offered. C) retail value of the gift. D) cost of the advertisement itself.

The answer is cost of the advertisement itself. There is no requirement that the cost of the advertisement be disclosed. The time-share project ad must include the retail cost of the gift, conditions under which the gift is offered, and the odds of winning the prize.

A couple feels they have been discriminated against by a landlord due to their place of national origin. They have filed a complaint with the Real Estate Board. The burden of proof will fall on the A) fair housing office. B) landlord. C) couple. D) Real Estate Board.

The answer is couple. In a fair housing case, the burden of proof is on the claimant, or in this example, the couple.

For any resale of a condominium unit by someone other than the declarant, a seller must provide the purchaser with copies of the A) current declaration documents, bylaws, and CC&Rs (covenants, conditions, and restrictions). B) receipts for monthly assessment fees. C) original declaration documents. D) original contract for purchase of the unit.

The answer is current declaration documents, bylaws, and CC&Rs (covenants, conditions, and restrictions). For any sale of a condominium unit subsequent to the original sale by the declarant, an owner must provide the purchaser with a set of documents that includes copies of the original declaration documents, bylaws, and CC&Rs (covenants, conditions, and restrictions). The association also provides information regarding whether all condominium fees are paid and whether there are any violations.

When a principal broker assigns two licensees to work with two separate clients in the same transaction, the licensees are referred to as A) subagents. B) dual agents. C) designated agents. D) undisclosed dual agents.

The answer is designated agents. In Virginia, a broker may assign (designate) two agents to work with two separate clients in the same transaction. The broker remains as a dual agent; the two agents are designated agents: one for the buyer and one for the seller. Dual and designated agency may only be done with written consent of all parties.

Broker escrow accounts must be A) the repository for all earnest money deposits. B) designated and labeled as escrow. C) provided by every licensed broker. D) transferred to the company's operating account every five days.

The answer is designated and labeled as escrow. A principal broker is not required to have an escrow account; if there is an escrow account, all earnest money deposits must be deposited there within five banking days and the account must be labeled as escrow.

A buyer made an offer on a property that was accepted by the seller. The buyer fulfilled all of his obligations under the purchase contract, but before the transaction could close, the seller's loan on the property was foreclosed on by the lender. The buyer's earnest money deposit on the property is still in the escrow account of ABC Realty. The principal broker of ABC Realty should A) file an interpleader action with the court to determine how the funds should be disbursed. B) disburse the earnest money deposit to the buyer, pursuant to the purchase contract. C) divide the deposit between the buyer and the seller. D) file a request for a hearing with the Real Estate Board.

The answer is disburse the earnest money deposit to the buyer, pursuant to the purchase contract. In the event that a property undergoes foreclosure and a change of ownership while a purchase is pending, any earnest money deposit held in escrow should be disbursed according to the terms of the purchase contract.

Virginia Agency law requires a limited service agent to do all of the following EXCEPT A) include specific language as stated by law in the written brokerage agreement. B) provide a list of duties to be performed. C) provide a list of the duties of a standard agent that will not be performed. D) disclose the agent's status as an independent contractor.

The answer is disclose the agent's status as an independent contractor. A limited service agent is still a form of agency. An independent contractor is the only form of non-agency recognized in Virginia.

Each branch office of a Virginia real estate brokerage firm is required to do all of the following EXCEPT A) ensure that all licensees have an active, current license. B) display licenses of all salespeople and associate brokers. C) be supervised and managed by a principal or an associate broker. D) have and display a separate license for a branch office.

The answer is display licenses of all salespeople and associate brokers. Licenses of salespeople and associate brokers are kept on display in the main office. Each branch office is required to maintain a readily accessible roster of agents and display a separate branch office license.

Real estate licensees who perform ministerial acts related to a closing but who are NOT in fact settlement agents must A) comply with all RESA requirements. B) do none of these; licensees performing ministerial acts are not required to comply with all RESA requirements. C) be required to charge a fee for these services. D) register with the Virginia State Bar.

The answer is do none of these; licensees performing ministerial acts are not required to comply with all RESA requirements. Licensees acting in a ministerial capacity are not required to meet the requirements of RESA, such as registering with the Virginia Bar. Ministerial acts are defined as actions assisting in the completion of the sales and settlement transaction that are strictly routine and require no judgment on the part of the licensee.

An owner of a single-family home may sell or rent it without being subject to the Virginia Fair Housing Law as long as the owner does NOT use the services of a licensed broker and A) is not a licensee. B) does not own more than three houses at one time. C) does not own more than four houses at one time. D) has never owned more than three houses.

The answer is does not own more than three houses at one time. Anyone who owns more than three residential properties is subject to the Virginia Fair Housing Law. There is no exemption for licensees.

With designated agency, a broker will assign one agent to work with the seller and one to work with the buyer, but the broker must act as a A) designated agent for both the buyer and seller. B) dual agent with responsibility to both the buyer and seller. C) nonagent with no responsibility to the buyer or seller. D) neutral facilitator

The answer is dual agent with responsibility to both the buyer and seller. Because all agency agreements are between the client and the broker, the broker remains in a dual agency position on all transactions where the broker represents both parties to the transaction. And while the broker may assign designated agents to fully represent both the buyer and the seller, the broker is always a dual agent with the responsibility to provide equal representation for both parties.

In order for a project to be considered a condominium under the Virginia Condominium Act, A) each unit owner must have an undivided interest in the common areas. B) the condominium association must maintain fee simple interest in the common areas. C) all units must be identical. D) each unit owner must have an assigned interest in the common areas.

The answer is each unit owner must have an undivided interest in the common areas. In condominiums covered by the Virginia Condominium Act, each owner has a fee simple interest in own unit, plus an undivided interest in the common areas. The condominium fee is generally set proportionately to the size of each unit.

The Virginia Fair Housing Law is substantially the same as the federal law with the exception of one additional protected class in Virginia. The additional protected class is A) age. B) marital status. C) sexual preference. D) elderliness.

The answer is elderliness. Virginia has added a protected class of elderliness to the seven protected classes mandated under the federal fair housing law. Elderliness is defined as 55 years or older. This differs from a protection based on age, which could include discrimination against any age, not just the elderly.

The primary purpose for creating the new Disclosure of Dual Agency or Dual Representation form was to A) encourage the use of designated agency. B) ensure that clients are made aware of the risks involved in dual agency. C) encourage the use of dual agency. D) make it easier to withdraw from dual agency.

The answer is ensure that clients are made aware of the risks involved in dual agency. Even though clients had previously signed the acceptance of dual agency form, it was felt that in most cases, they were not aware of the negative side of that relationship.

The Real Estate Board has the authority to do all of the following EXCEPT A) issue and renew real estate licenses. B) enforce license law. C) establish commission rates. D) determine license fees.

The answer is establish commission rates. It would be a violation of the Sherman Antitrust Act for the Real Estate Board to set commission rates. Each individual brokerage company sets its own commission rates. The Real Estate Board has the authority to do many things necessary to carry out the provisions of the real estate license law, including issuing and renewing real estate licenses, enforcing the license law, and determining license fees.

All of the following are prohibited activities regarding advertising by real estate licensees EXCEPT A) implying that property listed by the licensee's firm is actually for sale by an owner or unlicensed person. B) failing to obtain written consent from the principals involved before advertising a specific property. C) failing to include the firm's address and phone number on the sign in front of the office. D) failing to include a notice that the owner is a real estate licensee if the property is being sold as a for sale by owner.

The answer is failing to include the firm's address and phone number on the sign in front of the office. There is no requirement to have the firm's address and phone number on the sign in front of the real estate firm's office.

If a licensee disclosed information relative to a person being infected with the AIDS virus, the licensee could be in violation of the A) Virginia agency law. B) fair housing laws. C) Real Estate Board rules and regulations. D) Virginia Residential Property Disclosure Act.

The answer is fair housing laws. A person infected with the AIDS virus falls under the handicapped protected class of the federal fair housing acts. The Residential Property Disclosure Act, Virginia agency law, and Real Estate Board rules and regulations do not address this issue.

An escrow account held by a real estate brokerage must be placed in a A) federally insured depository in Virginia. B) federally insured depository labeled as the principal broker's checking account. C) federally insured depository. D) safe within the brokerage firm.

The answer is federally insured depository. An escrow account held by a Virginia real estate brokerage must be placed in a federally insured depository. The requirement that it be in Virginia has been dropped. All such accounts, checks, and bank statements, shall be labeled escrow, and the account(s) shall be designated as escrow accounts with the financial institution where such accounts are established.

An escrow establishes what kind of relationship? A) Good faith B) Joint tenancy C) Fiduciary D) Dual agency

The answer is fiduciary. The law stresses that an escrow establishes a fiduciary relationship. A fiduciary holds money or property for a beneficiary who is entitled to place the utmost trust and confidence in the fiduciary. Fiduciaries must hold the interests of the beneficiary above their own. The fiduciary can dispose of the money or property placed in the fiduciary's care only according to the terms under which the money or property was received. Funds deposited by a settlement agent must be in a separate account identified by the name of the person who is to receive them.

An earnest money deposit given to a real estate broker must be placed in an escrow account within how many days after the underlying transaction agreement is signed by the parties? A) Five calendar days B) Five business banking days C) Ten calendar days D) Ten business banking days

The answer is five business banking days. Earnest money deposits and down payments must be placed in an escrow account within five business banking days after the ratification of the contract that forms the basis of the transaction, unless the parties agree in writing otherwise.

Stigmatizing factors that could potentially affect the value of a property include all of the following EXCEPT A) major break-in and burglary. B) suicide occurring on the property. C) foreclosure on previous owners. D) murder committed on the property.

The answer is foreclosure on previous owners. Virginia does not consider any stigmatizing factors as relevant so no disclosure is required, but some buyers may have concerns. A previous foreclosure is a financial matter and would not fall in the category of stigmatized. Reference: Disclosure Requirements > Stigmatized Properties

A licensee attempting to reactivate a license must A) pay $100 to the transaction recovery fund. B) have been engaged in a real estate-related field. C) have completed the required continuing education course during the 24 months prior to the application for reactivating the license. D) retake the current prelicense educational requirements.

The answer is have completed the required continuing education course during the 24 months prior to the application for reactivating the license. Reactivation requires completion of continuing education sometime in the 24 months prior to the application for reactivating the license. Retaking the prelicense course and paying $20 into the transaction recovery fund is only necessary if the license has been expired for more than three years.

The newest addition to the list of conditions considered to be a handicap is A) familial status. B) hoarding. C) sexual orientation. D) gender.

The answer is hoarding. Hoarding was recently added to the American Psychiatric Association list of mental disabilities and is now covered under Virginia Fair Housing Law.

Under what circumstance may a real estate office be located in the principal broker's residence? A) If the place of business is separate and distinct from the living quarters of the residence and accessible by the public B) If the principal broker is a sole proprietor C) If the place of business is accessible by the public with its own entrance D) If the principal broker is retired and only practicing part time

The answer is if the place of business is separate and distinct from the living quarters of the residence and accessible by the public with its own entrance. The place of business must be both removed from the living quarters and accessible by the public through a separate entrance. Being a sole proprietor or retired does not change this requiremen

A principal or supervising broker is required to conduct an audit of the practices, policies, and procedures of his firm at least once during each license term. The audit should document compliance with the law and regulations in all of the following areas EXCEPT A) immunity from enforcement action. B) agency or independent contractor relationships. C) handling of escrow deposits. D) advertising in all forms of media.

The answer is immunity from enforcement action. The immunity from enforcement action is granted by the Real Estate Board to a broker who has submitted the audit showing full compliance, or in the case of any area of noncompliance, either that the noncompliance has been remediated or a plan is made to make the correction within 90 days.

Written disclosure of a brokerage relationship must be made to a prospective landlord or tenant who is not the client of the licensee and is not represented by another licensee A) in the application or lease, whichever occurs first. B) at first meeting. C) at first substantive discussion about a specific property. D) on all rentals regardless of term of lease.

The answer is in the application or lease, whichever occurs first. Written disclosure of a brokerage relationship is required at the time of application or lease, whichever occurs first, on all rental properties renting for more than 100 days.

Megan's Law is NOT actually a state law but refers to the required disclosure of A) hazardous materials present on the property. B) all material adverse facts about a property. C) brokerage relationships. D) information about registered sex offenders.

The answer is information about registered sex offenders. Megan's Law provides a means of advising the public about registered sex offenders living in an area. The Virginia Residential Property Disclosure form states that it is up to the public to perform its own due diligence to obtain such information, which is available through the state police website. On this site, a potential purchaser can pull up the names, current addresses, felonies charged with, punishments, and pictures of registered sex offenders.

Tenants may install security equipment at their own expense. They will be required to provide the landlord with A) a written request for permission to install equipment. B) a paid invoice. C) a signed agreement to leave the equipment in place on termination of the lease. D) instructions for operation and keys for the equipment.

The answer is instructions for operation and keys for the equipment. Tenants must be allowed to install security equipment at their own expense but will be required to provide operation instructions and a key to the equipment to the landlord. The equipment may be removed at the end of the lease, and any resulting damage to the property must be repaired.

The Real Estate Board may discipline a real estate licensee in all of the following ways EXCEPT A) revoking the license of any licensee. B) invoking a two-year jail sentence. C) fining any licensee. D) suspending a licensee.

The answer is invoking a two-year jail sentence. The Real Estate Board does not have the civil authority to invoke a jail sentence, but it may fine, suspend, or revoke a license.

A licensee has refused to pay a special assessment of $20 to the transaction recovery fund even after receiving a second notice. At this point, the licensee A) will have to reapply for a license within 30 days. B) is allowed to continue practicing but must pay the $20 fee at the time she renews her license. C) is automatically suspended after 30 days. D) is charged an additional penalty of $100.

The answer is is automatically suspended after 30 days. Licensees who do not pay a special assessment fee will have their licenses suspended 30 days from the time of the second notice. They may not continue to practice until the assessment is paid and the license reinstated.

When a person is engaging in real estate brokerage without a license, the Real Estate Board may A) issue a cease and desist order. B) impose a civil penalty not to exceed $1,000. C) issue an arrest warrant for the unlicensed practitioner. D) issue a cease and desist order and impose a civil penalty not to exceed $1,000.

The answer is issue a cease and desist order and impose a civil penalty not to exceed $1,000. The board may issue an order requiring any person to cease and desist from acting as a real estate broker or salesperson when such person is not licensed. It may also impose a civil penalty not to exceed $1,000 for any real estate transaction or the amount of the compensation received from any such real estate transaction, whichever is greater.

After the termination or completion of the brokerage relationship, the licensee is still required to A) exercise ordinary care. B) keep confidential all personal and financial information received during the course of the brokerage relationship. C) promote the best interests of the client by presenting offers in a timely manner. D) perform the terms of the contract.

The answer is keep confidential all personal and financial information received during the course of the brokerage relationship. The only one of the statutory duties required under Virginia agency law that continues beyond the completion of the contract is maintaining all confidential information received during the course of the brokerage relationship.

Which transaction would require a residential property disclosure? A) Court-ordered transfer to settle an estate B) Lease with option to buy C) Transfer of property due to foreclosure D) Transfer of property as result of divorce settlement

The answer is lease with option to buy. Under the Residential Property Disclosure Act, a residential property disclosure must be made with a lease with option to buy. Transfers of property due to court order, foreclosures, and divorces are exempt from the residential property disclosure requirements.

A broker may NOT pay a referral fee or shared commission to a A) broker from another jurisdiction. B) referral entity anywhere in the United States. C) licensed member of another firm who was never affiliated with the broker's firm. D) current licensed member of the broker's firm.

The answer is licensed member of another firm who was never affiliated with the broker's firm. Referral fees or shared commissions are not paid to a licensed member of another firm. All fees and commission payments must be made to the principal broker, who then compensates the broker's agents according to their separate agreements. This includes referral fees.

Filing a change of residence with the Real Estate Board within 30 days of the change is the sole responsibility of the A) local REALTORS® association. B) supervising broker. C) licensee. D) principal broker.

The answer is licensee. It is solely the licensee's responsibility to keep the Real Estate Board informed of the correct residential address at all times.

Under the Property Owners' Association Act, an association disclosure packet must be delivered to a prospective purchaser that includes, but is not limited to, all of the following EXCEPT A) limitation on the number of occupants in the unit. B) copy of the association's current budget and statement of income and expenses. C) statement of the amount of assessments and other fees. D) statement of the nature and status of any pending lawsuit.

The answer is limitation on the number of occupants in the unit. The POA required disclosure does not include any limitation on the number of occupants in a unit, although there may be city or county ordinances in effect.

One duty that is NOT required of standard agents engaged to represent buyers, sellers, landlords, and tenants is to A) maintain a fiduciary relationship. B) perform the terms of the contract. C) maintain confidentiality of all personal and financial information. D) promote the best interests of the client.

The answer is maintain a fiduciary relationship. Fulfilling the responsibilities of a fiduciary relationship was a part of the common law of agency that was abrogated under the new law of agency. Statutory duties include performing the terms of the contract, promoting the best interests of the client, and maintaining confidentiality. Referenc

A licensee is required to disclose to both clients and customers all A) material facts relating to the transaction. B) material adverse facts pertaining to the physical condition of the property. C) material and nonmaterial facts pertaining to the property. D) confidential information relating to the transaction

The answer is material adverse facts pertaining to the physical condition of the property. Material adverse facts pertaining to the property must be disclosed to both clients and customers. There is no requirement for disclosure of nonmaterial facts, such as stigmatized properties, to a customer, although agents have a duty to discuss all material facts to their clients. Confidential information is never to be disclosed to a customer.

Licensees are encouraged to use standard forms prepared by REALTOR® associations or multiple listing services (MLS) in order to A) speed up the process of filling out forms. B) ensure that forms are always available. C) minimize liability risk for using outdated forms. D) produce revenue for the association or MLS.

The answer is minimize liability risk for using outdated forms. An outdated form could result in one of the parties to the transaction using this as an excuse to void the contract. Part of an agent's duty is to always use the most current forms prepared with the advice of legal counsel and to always give a copy of every document signed or initialed to all parties to the transaction.

Using bait-and-switch tactics in advertising would be a violation of the standard of conduct regarding A) conflict of interest. B) improper dealing. C) improper brokerage commission. D) misrepresentation/omissions.

The answer is misrepresentation/omissions. Bait-and-switch tactics (i.e., advertising something that is not actually available) fall under the misrepresentation/omissions category. Conflict of interest, improper brokerage commission, and improper dealing are all separate categories covered in the new real estate regulations. An additional prohibited action would be attempting to divert commission from the firm directly to either a licensed or unlicensed individual not a party to the transaction.

Funds held by a real estate brokerage in a client escrow account may include A) money that will ultimately belong to the licensee. B) commission advances. C) anticipated office expenses attributable to the transaction. D) a proportionate share of non-licensee staff salaries.

The answer is money that will ultimately belong to the licensee. While some portion of the funds held in an escrow account may be paid to the brokerage as a commission on closing of a transaction, the escrow account must not be used to hold other firm money.

Every member of an LLC, officer of a corporation, and principal in a partnership who owns and actively participates in the firm's Virginia brokerage business A) may be either a salesperson or an associate broker. B) must be a principal broker. C) must hold a license as a Virginia real estate broker. D) may practice using the principal broker's Virginia license.

The answer is must hold a license as a Virginia real estate broker. Every member or officer who actively participates in the firm's Virginia brokerage business must hold a license as a Virginia real estate broker. This includes a sole proprietor, a partner in a partnership, an officer and/or director of an association, a manager or member of a limited liability company, or an officer or licensed shareholder of a corporation.

A brokerage relationship may be terminated prior to completion of the contract in which of the following circumstances? A) Unsuccessful offer to purchase B) Mutually agreed termination C) Agent firing the client D) Client firing the agent

The answer is mutually agreed termination. Establishing and terminating a brokerage relationship must be done with mutual consent of both parties. Terminating a brokerage relationship is a bilateral decision, never a unilateral firing. The brokerage relationship continues even after an unsuccessful offer to purchase.

A triple murder was committed on a property six months ago. Virginia law requires that disclosure be made of this fact A) prior to writing an offer to purchase. B) never. C) three days prior to settlement. D) in the MLS listing.

The answer is never. The occurrence of murder, suicide, or other felonies which may cause a property to be called stigmatized is not considered to be relevant information and no disclosure is required.

Disclosure is required for proximity to a military airfield because of concern about the A) noise from planes when taking off and landing. B) traffic to and from the airfield. C) bright lights at night. D) number of military in the area.

The answer is noise from planes when taking off and landing. Other areas may have traffic and bright lights but it is primarily the noise factor that requires disclosure.

A military person is being transferred out of the area and wishes to terminate her lease. In order to do this, she must give 30 days' notice of intent to terminate the lease A) within 30 days. B) within 60 days. C) not more than 60 days prior to the departure date, with a copy of the official transfer orders. D) within 30 days, with a copy of the official transfer orders.

The answer is not more than 60 days prior to the departure date, with a copy of the official transfer orders. Tenants who qualify to terminate a rental agreement due to a military transfer must give the landlord a written notice that they will terminate no sooner than 30 days after receipt of the notice. The termination date shall be no more than 60 days prior to the departure date required to comply with their military orders. The tenant must give the landlord an official copy of the orders or a signed letter from the tenant's commanding officer.

A principal broker temporarily placed a security deposit in the brokerage's business account until an escrow account could be created, which is A) a permissible action under Virginia regulations. B) permitted in Virginia if it is permitted by the state in which the principal broker is licensed. C) not permitted in Virginia under any circumstances. D) not permitted in Virginia unless the business account is usually used for such deposits.

The answer is not permitted in Virginia under any circumstances. A principal broker is not allowed to place client or customer funds in the brokerage's business account, even if for a very short time.

The Megan's Law disclosure that is included in the property disclosure form informs the public A) of all known registered sex offenders living in the area. B) of the names, addresses, pictures, and criminal records of registered sex offenders. C) on how to obtain information regarding registered sex offenders in any area in Virginia. D) that the licensee is responsible for obtaining information on registered sex offenders.

The answer is on how to obtain information regarding registered sex offenders in any area in Virginia. The Megan's Law disclosure statement provides the public with the source to obtain detailed information about a released and registered sex offender living in a specific neighborhood. The website operated by the Virginia state police provides the names, addresses, criminal records, and pictures of released and registered sex offenders. A licensee is not responsible for obtaining this information, only in making the source known.

Dower and curtesy rights were abolished in Virginia by the Augmented Estate and Elective Share Act. Under this act, a widowed spouse can renounce the will and claim an elective share. If a widow or widower chooses to take an elective share, he or she will receive A) one-third of the estate with the remainder to the children. B) all of the deceased spouse's estate. C) all of the estate if there are no children. D) one-half of the estate with the remainder to the children.

The answer is one-third of the estate with the remainder to the children. Under the Augmented Estate and Elective Share Act, if there are no surviving children (or their heirs), the widow or widower would receive one-half of the estate. If there are surviving children or heirs, the widow or widower would receive one-third of the estate. These provisions would take effect if the widow or widower is renouncing the terms of a will.

When does the Virginia law of agency require that a licensee make a disclosure of the brokerage relationship to any actual or prospective buyer or seller? A) Only if the actual or prospective buyer or seller is not represented by another licensee B) Whenever a listing or buyer agency agreement is signed C) At the time a contract is written D) Whenever visitors attend an open house

The answer is only if the actual or prospective buyer or seller is not represented by another licensee. The Virginia law of agency requires that disclosure of brokerage relationship be made to any person involved in the transaction who is not the client of the agent if that person does not have representation by her own agent. Disclosure is to be made at the time of the first substantive discussion about a specific property that is for sale.

A real estate firm's escrow account may be an interest-bearing account A) to help defray any fees incurred in establishing the account. B) only on written disclosure regarding the disbursement of interest, made to the principals in the sale or lease transaction documents. C) with consent of the Virginia Real Estate Board. D) provided the interest is paid to a nonprofit housing agency.

The answer is only on written disclosure regarding the disbursement of interest, made to the principals in the sale or lease transaction documents. When interest rates are at all-time lows, the value of an interest-bearing account is relatively minimal, and such accounts are rarely used for residential transactions.

Under the Virginia Residential Property Disclosure Act, a seller takes exception to all of the following EXCEPT A) matters that may pertain to adjacent parcels. B) pending enforcement actions pursuant to the Uniform Statewide Building Code. C) resource protection areas. D) matters that pertain to the provisions of historic district ordinances.

The answer is pending enforcement actions pursuant to the Uniform Statewide Building Code. No disclosure is required as to adjacent parcels, provisions of historic districts, or resource protection areas.

The transaction recovery fund was established for the protection of A) individual licensees who have not been paid by their brokers. B) sellers who feel that their agent did not adequately market their property. C) persons suffering monetary loss due to a licensee's misconduct. D) principal brokers who have been cheated by their clients.

The answer is persons suffering monetary loss due to a licensee's misconduct. The transaction recovery fund is to provide persons with recourse if they have suffered a monetary loss due to a licensee's misconduct and have been unable to receive satisfaction from that licensee. Monetary disputes between a broker and client or an agent and broker would be subject to civil court action.

If a unit owner does NOT pay an assessment levied by the condominium association, the association may A) cut off water or other utilities supplied by the condominium association. B) refuse the use of all condominium amenities to the unit owner. C) place a lien against the property. D) evict the unit owner.

The answer is place a lien against the property. The condominium association has the right to place a lien against the unit if an owner does not pay an assessment levied by the association. The association may not evict the owner, refuse the use of amenities to the unit owner, or cut off utilities.

The principal broker must have readily available to the public in the main office the licenses of the A) principal broker and firm. B) principal broker, firm, and branch offices. C) principal broker only. D) principal broker, firm, and all salesperson and broker licensees affiliated with the firm.

The answer is principal broker, firm, and all salesperson and broker licensees affiliated with the firm. The licenses of all parties affiliated with the brokerage firm must be readily available to the public in the main office. The branch office license and a roster of all agents affiliated with that office must be available to the public in each branch office.

Virginia Agency law lists seven statutory duties to be performed by all licensees. The only one of these duties that allows for some variation is in the duty to A) exercise ordinary care. B) maintain confidentiality of all personal and financial information. C) promote the best interests of the client. D) perform according to the terms of the brokerage relationship.

The answer is promote the best interests of the client. The specific duties vary according to whether the client is a seller, landlord, buyer, or tenant. The most variation deals with marketing activities.

Which of the following properties would require special written disclosure, according to the Virginia Residential Property Disclosure Act? A) Property located within city limits with public sewer B) Property located outside city limits with septic field no longer in use C) Property located outside city limits with public sewer D) Property located within city limits with septic field

The answer is property located within city limits with septic field. The Property Disclosure Act requires disclosure regarding the inspection requirements for any septic field currently in use.

In a case of early termination of a lease due to a military transfer, a landlord may charge A) one month's rental, as damages, if the tenant occupied the property more than six months but less than one year. B) one-half month's rental, as damages, if the tenant occupied the property more than six months but less than one year. C) prorated rent to the termination date but no liquidated damages. D) one month's rental, as damages, if the tenant occupied the property less than nine months.

The answer is prorated rent to the termination date but no liquidated damages. In a case of military transfer, the landlord may prorate the rent to the date of termination and have it due and payable at such time as would otherwise have been required by the terms of the rental agreement. The landlord may not charge any liquidated damages.

When a tenant leaves personal property after vacating rental property, the personal property is considered to be abandoned and the landlord may A) sell it immediately to recoup loss of rent. B) make an itemized list and give the tenant 10 days' notice of intent to sell immediately. C) provide the tenant with notice that the items will be disposed of within 24 hours after the expiration of a 10-day period from the date of the notice. D) make an itemized list and sell the property for nominal value.

The answer is provide the tenant with notice that the items will be disposed of within 24 hours after the expiration of a 10-day period from the date of the notice. The landlord may dispose of personal property left behind with written notice to the tenant that the items will be disposed of within 24 hours after the stated expiration date or after the expiration of a stated period of time, such as 7 days or 10 days.

Which of the following would be an example of a minor house rules change that would NOT require agreement from the tenant? A) Limit parking to one vehicle, even though the lease calls for two spaces B) Require guests to register before using the swimming pool C) Close down a basement laundry room D) Increase rent by $50 per month

The answer is require guests to register before using the swimming pool. A landlord can institute a minor change, such as requiring guests to register before using the swimming pool. This action will not substantially change the terms of the lease and may be taken by the landlord without the tenant's permission. Any increase in rent or diminishment of existing amenities would require tenant approval. Reference: Specific Acts

The principal broker of a firm is a broker who is A) the owner of the firm. B) a senior member of the firm. C) selling his own property. D) responsible for the activities of the firm and all its licensees.

The answer is responsible for the activities of the firm and all its licensees. The principal broker is responsible for the activities of the firm and all of its licensees. The owner does not have to hold either a salesperson's or broker's license unless he is actively engaged in real estate practice

A limited service agent is always required to provide all of the following disclosures to a client EXCEPT A) rights and obligations of a client under the Virginia Utility Damage Prevention Act. B) rights and obligations of a client under the Property Owners' Association Act. C) rights and obligations of a client under the Virginia Condominium Act. D) rights and obligations under Virginia Residential Property Disclosure Act.

The answer is rights and obligations of a client under the Virginia Utility Damage Prevention Act. The Utility Damage Act would only apply to an agent placing a sign over a utility easement. The other Acts all require full disclosure by the agent to a client.

Ministerial acts are defined in Virginia agency law as A) sales and marketing techniques. B) routine acts requiring no judgment on the part of a licensee. C) disclosures relative to the sale of church property. D) those acts that may only be performed for a client.

The answer is routine acts requiring no judgment on the part of a licensee. Ministerial acts are routine acts requiring no judgment on the part of a licensee. An agent may perform ministerial acts for the benefit of the customer in the transaction.

A licensee may only act as a dual agent with written permission from the A) broker. B) seller. C) buyer. D) seller and the buyer.

The answer is seller and the buyer. Dual agency is only allowed with full written consent from both the seller and the buyer.

If a fair housing case results in civil action through the action of the attorney general, the court is allowed to do all of the following EXCEPT A) assess a penalty of up to $50,000 for a first violation. B) award compensatory or punitive damages. C) award preventive relief by issuing an injunction against the respondent to refrain from discriminatory practice. D) sentence the respondent to jail.

The answer is sentence the respondent to jail. The civil court does not issue jail sentences for violations of the Fair Housing Act. In fair housing cases, the civil court may issue an injunction against the respondent, award damages to the complainant, or assess a monetary penalty against the respondent.

A licensee who acts for or represents a client in an agency relationship in Virginia is defined as a A) fiduciary agent. B) standard agent. C) facilitator. D) transaction broker.

The answer is standard agent. A standard agent is the legal definition for all agents subject to the Virginia real estate license law. Other states use the terms facilitator, transaction broker, or fiduciary agent.

A salesperson or broker may transfer from one licensed real estate firm to another by A) requesting a transfer from the former broker. B) submitting a transfer application to the former broker for signature. C) requesting that the Real Estate Board send the license to a new broker. D) submitting a transfer application along with a fee to the Real Estate Board

The answer is submitting a transfer application along with a fee to the Real Estate Board. In order to transfer from one firm to another, the licensee must submit a transfer application signed by the new broker along with the required transfer fee to the Real Estate Board. Return of the license is the responsibility of the former broker.

The balance in real estate brokerage escrow accounts must be A) sufficient to account for all funds designated to be held by the brokerage. B) at least 105% of the amount required to cover all deposits, plus fees for account maintenance. C) at least 95% of the amount required to cover all deposits. D) sufficient to cover all funds deposited, plus interest accruing to the persons on whose behalf the funds are held.

The answer is sufficient to account for all funds designated to be held by the brokerage. The balance in an escrow account should never fall below the amount of deposits that have not yet been properly disbursed.

It has been determined that a complaint should be investigated. All of the following procedures must take place EXCEPT A) the agent of the Department of Professional and Occupational Regulations reporting the facts to the Real Estate Board without comment. B) an agent of the Department of Professional and Occupational Regulations interviewing the claimant, respondent, and witnesses. C) the Real Estate Board immediately convening to determine the extent of the violation and to impose sanctions. D) the Real Estate Board reviewing the report and determining whether the case should be dismissed or carried forward for further investigation.

The answer is the Real Estate Board immediately convening to determine the extent of the violation and to impose sanctions. The Real Estate Board does not immediately convene to determine the extent of the violation or to impose sanctions. The procedure for handling a complaint against a licensee includes the interviewing of all parties by an agent of the Department of Professional and Occupational Regulations, who then reports the facts without comment to the Real Estate Board. The Real Estate Board reviews the report and either dismisses it or carries it forward for a formal hearing.

Escrow, closing, or settlement services include A) loan brokering and other services required to carry out the terms of contracts affecting real estate. B) qualifying a buyer for a loan and arranging for loan approval. C) interviews with all of the parties to a transaction to determine the intent of the parties in the event of a dispute involving disbursement of funds. D) the administrative and clerical services required to carry out the terms of contracts affecting real estate.

The answer is the administrative and clerical services required to carry out the terms of contracts affecting real estate. Code of Virginia § 55-525.16 defines escrow, closing, or settlement services as the administrative and clerical services required to carry out the terms of contracts affecting real estate. The escrow holder, within that definition, does not act as a mortgage broker.

Prior to entering into a brokerage relationship, a licensee should advise the prospective client of A) all previous brokerage relationships with other clients. B) the amount of compensation and whether compensation will be shared with another broker representing another party to the transaction. C) all current brokerage relationships with other clients. D) the licensee's educational background.

The answer is the amount of compensation and whether compensation will be shared with another broker representing another party to the transaction. License law requires an agent to discuss with the client the amount of compensation and how it may be shared prior to entering into a brokerage relationship. The broker's educational background and relationships with other clients are immaterial.

On Monday, a salesperson associated with the PQR Realty firm received an earnest money deposit in the amount of $3,000 from a couple who made an offer on the Maple Street home. The purchase contract was ratified by the sellers the next day. Because it was the day before the Thanksgiving holiday and the PQR office closed early that day, it was the next Monday before the salesperson brought the sales contract and earnest money check into the office. The check was deposited in the PQR escrow account that day. Which of the following statements is CORRECT? A) No violation has occurred, because the check was deposited within three business banking days of the day the contract was ratified. B) Because the salesperson held the earnest money check for one week before having it deposited in the PQR escrow account, the salesperson has violated the applicable statutes and regulations and is subject to discipline by the Real Estate Board. C) The check was deposited in the PQR escrow account by the end of the fifth business banking day following its receipt by the salesperson, so no violation has occurred. D) The check was deposited in the PQR escrow account the same day it was received by the PQR staff, so no violation has occurred.

The answer is the check was deposited in the PQR escrow account by the end of the fifth business banking day following its receipt by the salesperson, so no violation has occurred. The clock starts to run on the deposit of funds received by a real estate licensee when the funds are received; in this case, because Thanksgiving is a bank holiday, the deposit was made within the deadline of five business banking days.

The main benefit to a buyer working with a designated agent, rather than with a dual agent, is that A) the broker will assist the designated agent. B) the broker remains in a dual agency relationship. C) the designated agent will be able to advise and represent the buyer's best interests. D) both agents are members of the same firm.

The answer is the designated agent will be able to advise and represent the buyer's best interests. The most important benefit for a buyer working with a designated agent is that the designated agent is able to fully represent the buyer, providing all of the duties and responsibilities of a buyer's agent to the client. In a dual agency, the agent is not free to totally represent the buyer's best interests because the dual agent must equally represent the buyer and the seller, thus creating a potential conflict of interest.

The escrow holder conducts a closing conference at which A) the documents are executed. B) the sales contract is executed. C) a Loan Estimate is provided to the buyer by the lender. D) proof of recordation of the deed is presented to the buyer.

The answer is the documents are executed. In the traditional closing, the settlement agent conducts a closing conference at which all necessary documents are executed by the parties.

When acting as an independent contractor through a separate written agreement, instead of as a standard agent, a licensee is subject to A) the common law of agency. B) vicarious liability for the acts of others. C) implied fiduciary obligations. D) the duties and responsibilities as stated in the independent contractor agreement.

The answer is the duties and responsibilities as stated in the independent contractor agreement. Under the Virginia law of agency, all agents are defined as standard agents unless they are acting under the terms of a separate written independent contractor agreement. The common law of agency that included fiduciary obligations and vicarious liability does not apply, nor do the statutory duties as defined in the agency law.

At what time is the developer control of a time-share project transferred to the owners' association? A) When 90% of the time-share interests have been sold B) When 75% of the time-share interests have been sold C) When 75% of the time-share interests have been sold or all amenities and facilities are completed D) When 90% of the time-share interests have been sold and all amenities and facilities are completed

The answer is when 90% of the time-share interests have been sold and all amenities and facilities are completed. Control of a time-share project is not transferred to the owners until 90% of the units have been sold and all amenities and facilities are completed. Control of a condominium project transfers to the owners when 75% of the units are sold.

While the sale of the Moore house to the Newcomers was in escrow, the trustee on the Moore's home loan conducted a foreclosure auction and the property was sold to the Kirks. What should be the disposition of the earnest money deposit that was made by the Newcomers and is being held in escrow by their agent? A) The earnest money deposit should be retained by the agent of the Newcomers in the event that they decide to make an offer to the Kirks, the new owners of the property. B) The earnest money deposit should be divided between the Moores and the Newcomers. C) The earnest money deposit should be disbursed in accordance with the terms of the purchase contract. D) Any funds held in escrow should be made subject to an interpleader action brought by the agent of the Newcomers.

The answer is the earnest money deposit should be disbursed in accordance with the terms of the purchase contract. The purchase contract will dictate the disposition of funds held in escrow unless the Newcomers were in default on the contract terms; in the event of a problem, the agent for the Newcomers could file an interpleader action with the court.

A seller of a property in Virginia would be required to disclose that A) the furnace was malfunctioning. B) a murder-suicide occurred on the property. C) an occupant of the property died of AIDS. D) ghosts have been reported to appear on occasion.

The answer is the furnace was malfunctioning. All material adverse facts about the physical condition of a property, such as a malfunctioning furnace, must be disclosed. Disclosure of a former occupant dying of AIDS would be a violation of fair housing law. No disclosure is required of nonmaterial defects such as a death on the property, ghosts, or other stigmatizing factors, although there is also no law against making disclosure if the seller wishes to do so.

If a transaction is not completed and funds held in escrow are to be returned to one of the parties, the payment is made unless A) the party to whom the funds are to be paid is subject to a tax lien. B) the party to whom the funds are to be paid is not a Virginia resident. C) the other party is notified of the intended payment and makes written protest that is received by the broker within 30 days of the notice. D) the funds were used by the brokerage firm for operations.

The answer is the other party is notified of the intended payment and makes written protest that is received by the broker within 30 days of the notice. In the event that funds are to be returned to a party after a transaction is terminated, notice must be provided to the other party by hand delivery to and receipt by that party, or by certified mail with a return receipt requested. That party then has 30 days in which to make a written protest to the broker.

All of the following are true of the POA disclosure packet EXCEPT A) each disclosure packet must include the name and address of the registered agent if the association is incorporated. B) the information in the POA packet must be current as of the date of the packet. C) the association's failure to deliver the packet in a timely manner waives any claim for delinquent assessments or fines. D) the owners' association is required to make the packet available within 10 days after an owner/member or authorized agent files a written request.

The answer is the owners' association is required to make the packet available within 10 days after an owner/member or authorized agent files a written request. The association is required to make the packet available within 14 days after the written request by the owner or an authorized agent.

All of the following requirements must be met by every person wishing to be licensed as a real estate salesperson EXCEPT A) the person must not have been convicted of any felony in any U.S. jurisdiction. B) the person must meet current educational requirements by achieving a passing grade in required courses. C) the person must be honest, truthful, and competent to transact real estate business. D) the person must be at least 21 years old.

The answer is the person must be at least 21 years old. Applicants for a real estate license must be at least 18 years old. Applicants must be honest, truthful, and competent to transact real estate business, meet current educational requirements by achieving a passing grade in required courses, and not have been convicted of any felony in any U.S. jurisdiction.

Dual agency occurs when A) the same firm represents both the buyer and the seller in the same transaction. B) a cooperating broker represents the buyer. C) a cooperating broker agrees to represent the seller. D) a broker designates one agent to represent the seller and another to represent the buyer.

The answer is the same firm represents both the buyer and the seller in the same transaction. When the same broker represents both parties to a transaction, dual agency is created. If a cooperating broker chooses to also represent the seller in the transaction, that cooperating broker is acting as a subagent to the listing broker. The cooperating broker may also be acting as a buyer's agent with no responsibility to the seller. When a broker chooses to designate one agent to represent the buyer and one to represent the seller, this is known as designated agency.

A building with four residential rental units was purchased by XYZ Investments at a foreclosure auction and all of the leases have been terminated. The tenant security deposits that are being held in the escrow account of ABC Property Management should be disbursed to A) XYZ Investments. B) the former owner of the building. C) the tenants, without any deductions, because the tenants were not responsible for the lease terminations. D) the tenants, although legally permissible deductions may be made.

The answer is the tenants, although legally permissible deductions may be made. The security deposits are rightfully the property of the former tenants of the building, although each may be responsible for any lawful deductions, such as for maintenance costs necessitated by a tenant's negligence.

Unless otherwise agreed to in writing by all principals to a transaction, a licensee is NOT entitled to any part of the escrow funds as part of the licensee's commission until A) the transaction has been consummated. B) the home inspection has been done. C) the day following the closing of the transaction. D) the settlement agent has approved the payment.

The answer is the transaction has been consummated. A transaction must close before a licensee is entitled to any part of funds held in escrow, unless the principals agree otherwise in writing.

Funds in the escrow account may be dispersed in any of the following situations EXCEPT A) when all principals to the transaction agree in writing to the disposition. B) when the transaction is consummated. C) when a court orders disbursement of the funds. D) when the seller demands forfeiture of the earnest money deposit.

The answer is when the seller demands forfeiture of the earnest money deposit. A seller may not dictate the disposition of funds in the broker's escrow account. Disbursement is made through an agreement of the parties, through a court order, or when the transaction is complete.

Although a right of rescission for resale units is not included in the statute, it is common practice that a buyer may rescind the contract to purchase a resale condominium within A) ten days of contract ratification or receipt of condominium documents with sufficient cause. B) ten days of contract ratification or receipt of condominium documents for any reason. C) three days of contract ratification or receipt of the condominium documents with sufficient cause. D) three days of contract ratification or receipt of condominium documents for any reason.

The answer is three days of contract ratification or receipt of condominium documents for any reason. It is common practice for the purchaser to have the right to rescind the contract if the purchaser finds the documents unsatisfactory. The purchaser of a condominium unit has three days after receipt of the required documents to either accept or reject them. No specific reason needs to be given.

A written disclosure of brokerage relationship would NOT be required for a lease for A) three months. B) six months. C) more than one year. D) one year.

The answer is three months. A lease for three months or less does not require written disclosure of brokerage relationship.

Copies of all disclosures made as part of a purchase contract must be kept by the licensee for A) three years if the contract is fully executed. B) three years, whether the contract is fully executed or not. C) as long as the broker remains in real estate practice. D) seven years for fully executed contracts.

The answer is three years, whether the contract is fully executed or not. The broker must maintain all written documents, including disclosure of brokerage relationships, for three years. This requirement pertains to all contracts, whether or not they are fully executed.

If the transaction recovery fund is ever in excess of $2,000,000, the amount over $2,000,000 shall be A) transferred to the Virginia Housing Partnership Fund. B) returned in prorated amounts to current licensees. C) applied to the next year's assessment amount. D) disbursed as determined by the governor.

The answer is transferred to the Virginia Housing Partnership Fund. As provided by law, any excess over $2,000,000 in the transaction recovery fund is transferred to the Virginia Housing Partnership Fund. Disbursement is not at the discretion of the governor or used for the benefit of licensees.

The amount of security deposit that the tenant may be charged to protect the landlord against unpaid rents or damage to the property is limited to A) one-half month's rent. B) two months' rent. C) one month's rent. D) any amount the landlord wishes.

The answer is two months' rent. The Virginia Residential Landlord and Tenant Act only allows for a security deposit of no more than two months' rent.

Whether or not a complaint has been filed with the Real Estate Board, a civil action may also be initiated by an injured party within A) six months of the occurrence. B) one year of the occurrence. C) two years of the occurrence. D) any amount of time; there is no time limit.

The answer is two years of the occurrence. A civil action would have to be filed within two years of the occurrence.

A person feels that her rights have been violated under one of the provisions of the fair housing law. She may file a suit with the state court anytime within A) one year. B) two years. C) any time frame; there are no time restrictions for fair housing complaints filed with the state court. D) six months.

The answer is two years. A fair housing complaint may be filed in a state court within two years of the time of the alleged violation.

Acting for more than one client in a transaction without obtaining the consent of all clients is considered to be A) dual agency. B) subagency. C) undisclosed dual agency. D) disclosed dual agency.

The answer is undisclosed dual agency. Undisclosed dual agency is illegal and could result in termination of the contract. Dual agency occurs when both parties to a transaction are represented by the same broker and is legal as long as it is fully disclosed and agreed to by both parties. Subagency occurs when the cooperating broker operates as an agent subordinate to the listing broker with full responsibility to the seller only.

If the transaction recovery fund falls below $400,000, the Real Estate Board may order an assessment of all licensees of any amount A) up to $50 at any time. B) up to $20 in any two-year period ending June 30 of even-numbered years. C) determined necessary by the Real Estate Board. D) up to $20 at any time.

The answer is up to $20 in any two-year period ending June 30 of even-numbered years. An assessment of up to $20 to bring up the minimum balance of the transaction recovery fund may be charged to every licensee once within a two-year period ending June 30 of even-numbered years.

Which of the following statements regarding use of the Equal Housing Opportunity logo is TRUE? A) Use of the logo is only required in newspaper advertising. B) Use of the logo is required under the U.S. Code (24 CFR Part 109.) C) Use of the logo is mandated by HUD. D) Use of the logo is recommended by HUD.

The answer is use of the logo is recommended by HUD. Although no longer a part of the U.S. Code, HUD still recommends observance of the Part 109 regulations in all newspaper advertising, flyers, brochures, and other promotional materials. Reference: Virginia Fair Housi

Which statement is TRUE concerning voting rights for condominium unit owners? A) Each unit has one vote. B) Each owner has one vote. C) Voting rights are determined by the number of bedrooms in the unit. D) Voting rights are determined in proportion to unit size and amenities.

The answer is voting rights are determined in proportion to unit size and amenities. Each unit owner is assigned specific voting rights, usually determined by the square footage of the individual unit plus any additional amenities.

The septic system is considered part of the A) electrical system of the property. B) structural system of the property. C) wastewater system of the property. D) landscaping system of the property.

The answer is wastewater system of the property. Many properties located in rural or semi-rural areas have a well and septic system. In some cases, the property may have city water but still retain a septic system. In most urban areas, local ordinances require a hookup to city water and sewer.

A buyer has refused to sign the brokerage relationship disclosure form that states that the licensee is representing the seller in this transaction. The licensee is required to keep a copy of the disclosure A) if the contract is never executed but the buyer decides to sign the form. B) if the contract is executed, whether or not the buyer signs the form. C) whether the contract is executed or not. D) only if the contract is executed and the buyer signs the form.

The answer is whether the contract is executed or not. If a party to the transaction refuses to sign the brokerage relationship disclosure form, the agent should indicate the refusal on the form and maintain it in the file for three years, whether or not there is a completed transaction.

If a disclosure statement is NOT provided to the purchaser prior to acceptance of a purchase contract, the purchaser may terminate the contract A) with an oral notice to the seller. B) with a written notice to the seller within three days after receipt of the disclosure if delivered in person or five days if delivered by mail. C) with a written notice to the seller within seven days after receipt of the disclosure/disclaimer if mailed. D) by remaining silent.

The answer is with a written notice to the seller within three days after receipt of the disclosure if delivered in person or five days if delivered by mail. If the disclosure or disclaimer is not made before contract acceptance, the purchaser may rescind the contract by giving written notice to the seller within three days after receipt of the disclosure document if hand-delivered or within five days if delivered by mail. It is preferable to have either the disclosure or disclaimer statement presented to the purchaser prior to the signing of the sales contract as this removes any further opportunity to terminate the contract based on either of these documents.

Money in the broker's escrow account that will ultimately belong to the broker would be considered as commingling only when A) it is a nominal amount used to establish or maintain the escrow account. B) such money is removed in intervals of not more than six months. C) it is clearly marked as personal funds of the broker and left in the account. D) withdrawals for payment of commissions are not regularly made at the end of a transaction.

The answer is withdrawals for payment of commissions are not regularly made at the end of a transaction. No matter how they are marked, personal funds of the broker must be withdrawn at regular intervals with checks drawn to the firm from the escrow account.

If the HOA/POA documents are not hand delivered, the exact date and time of delivery may be unclear. However, in cases where hand delivery is not possible, delivery by mail or electronic means (if allowed by all parties), is acceptable. The purchaser can cancel the contract in any of the following circumstances EXCEPT A) within 10 days from presentation of contract. B) within 3 days after receiving the documents if hand delivered or by electronic means. C) within 3 days after the date of the contract, if the documents were received before signing the contract. D) within 6 days after the postmark date if mailed.

The answer is within 10 days from presentation of contract. Time is of the essence when dealing with a purchase contract and it is important to have acceptance or cancellation as soon as possible.

Under what circumstances, if any, may an expired license be reinstated? A) Within one year by paying the regular renewal fee and reinstatement fee and completing the continuing education requirement B) Within 13 months by paying the reinstatement fee and completing the continuing education requirement C) Within 30 days by paying the regular renewal fee plus reinstatement fee and completing the continuing education requirement D) Within one year by paying the reinstatement fee and completing the continuing education requirement

The answer is within one year by paying the reinstatement fee and completing the continuing education requirement. The reinstatement fee is separate from, not in addition to, the regular fee. The licensee must complete continuing education requirements and may not practice during this time.

All new licensees are required to complete 30 hours of postlicense education A) taken in a classroom setting (not online or correspondence). B) or the license will be automatically revoked. C) within the first year of obtaining a license. D) within the first two years of the licensure period.

The answer is within the first year of obtaining a license. The original regulation was within the first two years of licensure but is now changed to within the first year of licensure.

Mr. and Mrs. Jones are considering the purchase of 10 acres located on the Potomac River. Would they need to have any concerns regarding the Chesapeake Bay Preservation Bay Act? A) No, the property is not adjacent to the Chesapeake Bay. B) Yes, the property is more than a normal building lot. C) Yes, the Potomac River empties into the Chesapeake Bay. D) No, the property is only 10 acres.

The answer is yes, the Potomac River empties into the Chesapeake Bay. Any property that is located within an area that falls under the Chesapeake Bay Preservation may have a special ordinance requiring certain restrictions.

The owner of a three-building rental project has designated one building for families with children. Will the owner be subject to a violation of Virginia Fair Housing Law? A) Yes, this would be a violation of the familial status provision of the law. B) Yes, this would be considered as steering under the law. C) No, as long as full disclosure is made to all prospective tenants. D) No, as long as the other two buildings are available to all prospective tenants.

The answer is yes, this would be a violation of the familial status provision of the law. There cannot be any discrimination against families with children, regardless of how other properties are held.