VA State pre licence
An area where zoning regulates the specific balance of shopping, business, and recreational facilities is an example of: Select one: A. Urban renewal B. Spatial zoning C. PUD D. Commercial condition zoning
C Planned Unit Developments (PUDs) are mixed-use developments that use zoning ordinances to achieve a desired balance.
The most predictable element of severance is: Select one: A. Attachment B. Intent C. Agreement D. Adaption
C. Agreement You should avoid doubt by putting the severance agreement in writing. A written agreement is the best way to ensure questionable items (like fixtures) transfer.
Which real property right automatically conveys? Select one: A. Surface rights B. Subsurface rights C. Control D. All of the above
D All of the above
The land characteristic that is most likely the basis for a specific performance lawsuit is: Select one: A. Immobility B. Heterogeneity C. Situs D. Improvements
B. Heterogeneity
Which of the following statements about the Transaction Recovery Fund is correct? Select one: A. If the Fund falls below $400,000, the Director may only assess active licensees to restore the Fund B. A licensee accused in the claim must sell all personal possessions to satisfy the claim C. A claimant may collect up to $20,000 D. When a claim is paid, the respondent's license will be automatically suspended
C When necessary, the Board may assess active and inactive licensees in order to restore the Fund. If the claim is deemed to be valid, the respondent's license is revoked, not suspended. A licensee must also repay the Fund (plus interest), but there is no requirement to sell one's personal belongings in order to satisfy the debt.
Large blocks of land are located in a rural area of a Midwestern state. This would most likely be described by: Select one: A. Government rectangular survey B. Lot, block, and subdivision C. Metes and bounds D. Reference to other documents
A. Government rectangular survey The government survey method, or rectangular survey, is used in more than 30 states--mostly in the mid-west.
Six months after Brady bought his home, he installed custom-made storm windows and doors. If Brady subsequently transfers title to someone else, will the storm windows and doors automatically transfer as well? A. Yes, unless the parties agree that they will be removed before the sale has advanced B. Yes, because the storm windows and doors are fixtures C. No, because they can be easily removed without damaging the property D. No, so long as Brady reinstalls the original windows and doors
A. Yes, unless the parties agree that they will be Storm windows and doors that are "custom made" for a property are fixtures since they were adapted to the property. As fixtures, they will automatically transfer with the property unless they can be severed (removed) legally. Determining whether an item may be severed is a common source of dispute. As such, the best answer is Choice A since an agreement will always settle the issue.
Which of the following referral fees are NOT prohibited by RESPA? A Title search referral fees B Fees among cooperating brokers C Title insurance referral fees D Inspection referral fees
B
Which of the following statements is true if a broker has repaid the amounts awarded from the Transaction Recovery Fund? Select one: A. His license is automatically reinstated B. The Real Estate Board could withhold issuance of a new license, forever C. He may apply for a new license within 30 days D. He will be reinstated as a salesperson, NOT as a broker, for a period of 2 years
B The Real Estate Board has the right to refuse issuance of a license to any person who has EVER had his license suspended or revoked. When a claim is paid, the broker's license is automatically revoked by law. The fact that the broker repaid the fund is immaterial.
Which statement about encumbrances is correct? Select one: A. An encumbrance must increase real property value B. A lease is an example of an encumbrance C. Encumbrances can only be created by an owner of real property D. Both A and C
B A lease is an example of an encumbrance An encumbrance is anything that affects the title to real property, which could diminish its value. There are some positive encumbrances, but the limitation dimishes the owner's rights in the property. Encumbrances can be created by either individual or government action. Finally, a lease is an example of an encumbrance.
How long must a broker keep copies of escrow records? Select one: A. 2 years from the date of consummation or ratification of the contract B. 3 years from the date the transaction was originated C. 3 years from the date of consummation or ratification of the contract D. 5 years from the date the transaction was originated
C Escrow records must be kept for 3 year from the date of CONSUMMATION (closing) or ratification (if the contract does not go to closing). The correct answer is: 3 years from the date of consummation or ratification of the contract
A broker is holding an open house at one of her listings. According to Virginia License Law, the broker must provide agency disclosure. In the situation described, this disclosure must be made: Select one: A. Verbally to every person looking at the property B. In writing to every person looking at the property C. Verbally when the broker has substantive discussion about the property with a prospective buyer D. In writing when the broker has substantive discussion about the property with a prospective buyer
D Disclosure is required (in writing) when you have substantive discussions about specific property. The correct answer is: In writing when the broker has substantive discussion about the property with a prospective buyer
All of the following statements are true about valid restrictive covenants except: Select one: A. The covenant runs with the land B. The covenant may be removed without legal action C. The covenant does not need a termination date D. The covenant may be at variance with Fair Housing laws
D The covenant may be at variance with Fair Housing laws
A restrictive covenant would most likely be enforced by: Select one: A. A neighbor B. A zoning official C. A police officer D. A judge
D. A judge Restrictive covenants (deed restrictions) are enforced through injunctions, which are issued by courts at the request of others (such as a neighbor). The correct answer is:
The right of a city government to take title to private property for public improvements is subject to all of the following except A. the ownership interest held by the current owner B. public purpose C. economically profitable uses of the land by the owner D. both A and C
D. both A and C The exercise of eminent domain requires just compensation for and public use of the taken property. The ownership interest of the current owner, and whether the use is economically viable, is irrelevant.
In relation to lien priority, which of the following statements is incorrect? Select one: A. A recorded deed has priority over a recorded mortgage B. Federal income tax liens have priority over all other liens C. Mechanics liens apply on the date that work began or materials were supplied D. The date of recording determines the priority for private lien
B. Federal income tax liens have priority over all other liens Real estate tax liens have priority over all others. Federal and State income tax liens must get in line, just like the others
Newly licensed brokers must complete: Select one: A. 30 hours of post-license education B. 45 hours of post-license education C. 16 hours of continuing education D. 24 hours of continuing education
D: 24 hours of continuing education
A tenant lives in a four-unit apartment building. He agrees to maintain the building if he can receive a reduced rental fee. In this situation, which of the following statements is correct? A. The owner and the tenant are exempt from the real estate License Law B. The tenant must establish an escrow account C. Both the tenant and owner are subject to Board regulations D. To be exempt, the tenant must pay his own utilities
A The owner doesn't need a license because he is acting in relation to his own property. The tenant does not need a license because maintenance services are not acts of real estate brokerage
A salesperson took a listing on October 15. The property sells on December 20 and closing takes place on January 15. Unfortunately, the salesperson forgot to renew her license when it expired on December 31. Which of the following statements is true in this situation? Select one: A. The salesperson is entitled to receive her commission B. The salesperson can only be paid if her license is renewed prior to January 31 C. The salesperson cannot be paid D. The salesperson can be paid if she retakes the state licensing exam
A The salesperson was properly licensed when a buyer was found in the transaction. Therefore, she would be entitled to the earned commission.
Every resident broker licensed in Virginia MUST: Select one: A. Maintain an office in Virginia B. Maintain an escrow account in Virginia C. Employ at least one salesperson or associate broker that is also a resident of Virginia D. All of the above
A This is a question where the word "MUST" (an absolute term) may cause problems. Brokers are only required to have an escrow account if they hold escrow funds on behalf of another. There is no requirement in the law regarding the number of employees. However, the law does state that EVERY resident broker is required to maintain an office in the State. Note that the broker may display signage at his office, but it is NOT required.
Agent Sally has been with Black Realty for over three years and has worked up to the top agent in the firm. Her commission percentage rate is double that of a starting agent. Based on this information, what type of compensation plan does the Black agency have in place? A Graduated B Level Grade C Ramped D Step
A Graduated
Chris defaults on his house loan and the lender wants to auction the property (which secures the loan) in order to satisfy his debt. This is known as: Select one: A. Short sale B. Forfeiture C. Foreclosure D. None of the above
C. Foreclosure A short sale happens when the defaulting borrower sells the property to a new buyer for less than the full amount owed to the lender. Foreclosure is the loss of property to pay off a debt. Forfeiture is losing the property because the person has disobeyed a condition in the deed. The correct answer is: Foreclosure
Which of the following statements is correct if a licensee is leasing his own property, without help from a broker? Select one: A. The licensee is exempt from both the Federal and Virginia Fair Housing Laws B. The licensee may be exempt from the Virginia Landlord Tenant Act C. The licensee is required to disclose the name of his employing broker D. The licensee is not subject to the rules and regulations of the Board
B he licensee may be exempt from the Virginia Landlord Tenant Act
Jones owns two tracts of land. One tract has lakefront property. Jones sells the other tract to Smith and gives him the right to cross his property in order to reach the lake. Without the right to cross Jones' property, there is no other way for Smith to reach the lake. Smith's right could be: Select one: A. An easement by necessity B. An easement in gross C. Created by operation of law D. All of the above
B. An easement in gross Smith could either have an appurtenant easement or an easement in gross. However, the question does not specify that the properties are adjoining or that Smith owns a tract without access
The police power includes all of the following regulations EXCEPT: Select one: A. Zoning and building codes B. Condominium covenants, rules, and regulations C. Government land-use regulations D. Real estate licensing laws
B. Condominium covenants, rules, and regulations Police power authorizes governments to enact zoning and building codes, land use regulations, and real estate licensing laws. Condominium covenants, rules, and regulations are private concerns.
A condominium association can most likely perform all of the following actions, EXCEPT: Select one: A. Elect a Board of Directors B. Interview prospective buyers C. Award contracts to tradesmen D. Assess a fee to unit owners in order to cover maintenance and repairs
B. Interview prospective buyers The condominium association usually elects a Board of Directors to run the condominium. Prospective buyers purchase condominiums directly from individual owners, usually without being interviewed by the condominium association
A buyer entered into a contract to purchase a new condominium. At the time of contract ratification, the swimming pool cited in the POS was not completed. How should the sales agent advise the prospective buyer? Select one: A. Withhold a portion of the purchase price until the pool is complete B. Make certain that the plat included in the condo documents is clearly marked that the pool is "to be completed" C. Refuse to close the transaction D. Obtain a mechanics lien release from the developer
B. Make certain that the plat included in the condo documents is clearly marked that the pool is "to be completed"
Residential property may be composed of: Select one: A. Single-family homes only B. Single-family homes and cooperatives C. Commercial buildings that may have a landlord's private apartment D. A cattle ranch with a bedroom in a barn
B. Single-family homes and cooperatives
The State of Order plans to condemn several pieces of inner city property to build a sports complex, displacing many poor families. The State then plans to lease the assembled property to three private citizens, who will operate the complex. Is this use of eminent domain consistent with the US Constitution? A. yes, but only if the lots are vacant B. yes, if just compensation is paid to the land-owners C. no, because there is no public purpose D. no, because condemned property cannot benefit private individuals
B. yes, if just compensation is paid to the land-owners
If the named licensee is involved in multiple transaction violations, what is the maximum that a person may collect from the Transaction Recovery Fund? Select one: A. $10,000 B. $20,000 C. $100,000 D. None of the above
BA single person can collect a maximum of $20,000 from the Fund, whether it is for a single transaction or multiple transactions. The correct answer is: $20,000
Which person would require a license, issued by the Real Estate Board? Select one: A. The executor of an estate B. An auctioneer C. An employee of a broker, who negotiates leases D. An individual employed by the owner of rental property
C A person must have a license if he negotiates leases on behalf of another. However, if that person were an employee of the owner (NOT the broker) and was performing acts in the regular management that property, then no license would be required. Executors and auctioneers are also exempt from the license law.
if a contract of sale is not consummated, how are escrow funds disbursed? Select one: A. By the settlement attorney, with permission of all parties B. By the broker, with written permission of the seller C. By the broker, according to the terms of the contract if neither party files a written objection D. By the broker, only upon notification of the court
C he broker may disburse the escrow with written authority of all parties, or after 15 days notice of intended distribution if neither party objects. If all parties cannot agree, then the broker must file an interpleader or wait for court order.
A property owner may: Select one: A. Possess property, but not dispose of it B. Enjoy property, but not encumber it C. Dispose of property, but not destroy it D. Control property, but not exclude others
C. Dispose of property, but not destroy it
According to the Virginia Landlord and Tenant Act, when a lease expires, the landlord: Select one: A. Must return the security deposit within 30 days, plus interest B. Must conduct a final inspection of the property within 5 days after lease expiration C. Cannot conduct a final inspection unless the tenant is present D. May not withhold part of the security deposit to cover the cost of normal wear and tear
D. May not withhold part of the security deposit to cover the cost of normal wear and tear The final inspection must be completed within 3 days, and the tenant has the right to be present. However, if a tenant waives this right, the landlord may inspect without him. Security deposits must be returned within 45 days (not 30 days), but landlords are no longer required to collect interest to the benefit of the tenant. The landlord may withhold part (or all) of the security deposit to pay for damages, but that may NOT include normal wear and tear.
A tenant and landlord enter into a six month lease on July 1, 2016, to expire on December 31, 2016. Which of the following statements is correct? Select one: A. The landlord must serve notice to quit at least 30 days before expiration or the lease will renew B. The tenant must serve notice to quit at least 30 days before expiration or the lease will renew C. If neither party provides proper notice to quit, the lease will renew for another 6 months D. The lease will terminate on December 31, 2016
D. The lease will terminate on December 31, 2016
The State decides to widen a highway. To do this, it is necessary to use six feet of private property on each side. The State's power to take this property is derived from: Select one: A. police power B. zoning power C. condemnation proceedings D. none of the above
D. none of the above When the State takes property for the good of the public, it does so through the POWER of Eminent Domain. This is separate from the police power. Like all government powers, eminent domain is derived from the Constitution. The PROCESS through which the state takes property from one who refuses to give it up is a condemnation proceeding.
Once a sales contract has been ratified, what can a licensee legally do without permission from the principals to the contract? Select one: A. Change the closing date or location B. Make minor changes to the contingencies C. Correct grammatical or spelling errors in the contract D. Search the public records for information about the subject property
D the licensee can NEVER make any changes to a contract; only the principals to the contract can do that. However, anyone may search the public records (no license required) and you do not need permission to do so.
Larry sells property to David and the deed contains the following covenants: seisin, quiet enjoyment, against encumbrances, and further assurances. Following the transfer, David discovers utility poles on the property that lead to a nearby transformer. Larry failed to list the utility poles in the deed. Larry's failure to identify such encumbrances violates: Select one: A. The covenant of quiet enjoyment B. The covenant against encumbrances C. The covenant against grantor's acts D. None of the above
D None A covenant against encumbrances is the grantor's guarantee that there are no encumbrances against the property except those specifically disclosed. The utility poles are indeed an encumbrance. However, the covenant against encumbrances is NOT breached by failing to list an open and visible encumbrance, like a power line or drainage ditch. Open and visible encumbrances provide actual notice to purchasers. Therefore, such encumbrances need not be listed in the deed.
What process determines how much money the buyer needs to bring to closing? A The escrow agent will subtract the total of the buyer's credits from the total debits and the result is what the buyer needs to bring. B The buyer brings a open bank draft and finds out the final amount at the closing meeting. C The broker finds out from HUD and tells the buyer how much to bring. D The lender calculates what's owed and tells the buyer what to bring.
A In order for the buyer to know how much money to bring to closing the escrow agent will subtract the total of the buyer's credits from the total debits and the end result is what the buyer must bring to closing.
The Virginia Real Estate Board is empowered to: Select one: A. Levy fines B. Reimburse aggrieved persons C. Adjudicate disputes between licensees D. Enforce the code of ethics
A Of the choices given, the Virginia Real Estate Board only has the power to fine licensees. They may also suspend, revoke, or fail to renew a license. The Board does not pay aggrieved persons, but they do investigate complaints and can AUTHORIZE payments to be made from the Transaction Recovery Fund.
Kerra the Consumer has filed a claim for payment from the Transaction Recovery Fund. Which of the following statements must be incorrect? Select one: A. Kerra filed suit against the local Association of Realtors B. Kerra has obtained a judgement in court C. Kerra claim cannot include interest in her damages D. Kerra must wait until there is sufficient money in the Fund before payment
A: Kerra filed suit against the local Association of Realtors There is no requirement to sue the Association of Realtor--in fact, there is no reason to sue them if she's trying to get a TRF payment. All of the other answers are correct statements.
When a claim is paid from the Transaction Recovery fund, which of the following statements is true? Select one: A. The licensee named in the claim must post a bond in order to continue practicing real estate B. The claimant assigns his rights to the Board, to the extent of the amount of money paid by the Fund C. All claims submitted in relation to a licensee's misconduct in a single transaction may not exceed $20,000 D. All of the above
B Once a claim is paid, the claimant subrogates his rights to the Board in order to allow for collection from the licensee. You may file a claim for as much as you want, but $20,000 is the most one person can collect. If multiple parties file against a licensee in a single transaction, their collective claims may not exceed $50,000. claimant assigns his rights to the Board, to the extent of the amount of money paid by the Fund
A landlord's right to re-enter or regain possession of the premises upon expiration of a lease is known as: Select one: A. Redemption B. Reversion C. Remainder D. Recovery
B. Reversion
If a salesperson is accused of violating License Law, the Real Estate Board will: Select one: A. Send a copy of the charges to the salesperson at his last known business address B. Send a copy of the charges to the salesperson's broker at the broker's place of business C. Revoke the salesperson's license pending a hearing D. Ask the court to attach any commissions due the salesperson, pending outcome of the investigation
B: Send a copy of the charges to the salesperson's broker at the broker's place of business
Money or trust instruments received, accepted, or held on behalf of another pending consummation or termination of a real estate transaction are: Select one: A. Commissions B. Down payments C. Escrow funds D. Anticipated profits
C
Which of the following actions is NOT a violation of Virginia License Law? Select one: A. Placing an earnest money deposit in an interest-bearing account, but failing to advise all parties of that fact B. Accepting a net listing C. Refusing to cooperate on the sale of property listed exclusively D. Showing a home to a prospective buyer before the owner has signed a listing agreement
C
A motel clerk provides a few leads to a broker in exchange for a percentage of the commission. In this situation, which of the following statements is true? Select one: A. The clerk must be a licensed salesperson B. Neither the broker nor the clerk is in violation of the law C. The clerk must be licensed as a broker D. This is a good sales strategy
C we don't have enough information to know if that is true. We DO know that a broker can pay another broker without violating the law.
A consumer may file a Transaction Recovery Fund claim for a loss sustained as the result of a licensee's fraudulent act. In order to receive payment, this claim must be in connection with: Select one: A. A personal loan B. An investment in a limited real estate partnership C. A real estate transaction D. All of the above
C A consumer may file a Transaction Recovery Fund claim for a loss sustained as the result of a licensee's fraudulent act. In order to receive payment, this claim must be in connection with: Select one: A. A personal loan B. An investment in a limited real estate partnership C. A real estate transaction D. All of the above
Which of the following choices is NOT subject to the Virginia Landlord-Tenant Act? Select one: A. The owner of 10 or more single-family rental homes B. The owner of 5 condominium rentals C. A motel room rented for a period of 30 days D. buildings
C The Landlord-Tenant Act does not apply to hotels or motels (with limited exemptions), but would apply to all of the other listed choices.
A real estate license could be suspended without investigation if the licensee: Select one: A. Engages in acts of brokerage while on inactive status B. Violates the Virginia Real Property Act C. Does not pay the Transaction Recovery Fund assessment D. All of the above
C the only instance where your license can be suspended or revoked without a hearing is in relation to the Transaction Recovery Fund. Specifically, a license will be suspended if you fail to pay your assessment, and it will be revoked if you cause payment from the Fund.
The government requires a developer to provide off-street parking for tenants. The developer will suffer a loss because instead of building additional units, he must now set aside space for the parking area. This is an example of: Select one: A. Eminent domain B. Inverse condemnation C. Police powers D. Escheat
C Police powers
Broker Tom can remove money from his escrow account in all of the following circumstances, except: Select one: A. When a court orders the broker to do so B. With written permission of all parties to the contract C. Rescission of the contract by the seller D. Termination of the contract, by performance
C Rescission of the contract by the seller . The only listed situation where a broker CANNOT remove escrow funds is if there were a unilateral rescission--which means the contract was breached. The parties might have accounted for that in the original sales contract (if so, the broker can follow the terms of the contract). However, disputes usually require a successful interpleader or court order before the broker may release funds from escrow.
A new residential development requires that all single-family houses have brick fronts. This requirement is most likely an example of: Select one: A. local building codes B. municipal regulations C. a covenant D. a zoning ordinance
C: a covenant covenant (promise) is a form of deed restriction. This type of restriction would be imposed by a developer, not the local government via zoning powers. The restriction described is most likely an aesthetic consideration
Jill agrees to sell a three-bedroom ranch to Jason. Per the sales agreement, Jill deposits the deed to the ranch in escrow. Subsequently, Jill dies. The ranch will most likely: Select one: A. Pass to Jill's heirs, provided she left a valid will B. Pass to the estate because the escrow terminates C. Pass to Jason, provided he satisfies the terms of the sales agreement D. Pass to Jason if he is an heir of Jill's
D Pass to Jason, provided he satisfies the terms of the sales agreement Note that the relation-back doctrine establishes that the death of the grantor does not terminate escrow, and also authorizes the escrow agent to deliver the deed as instructed. Provided Jason satisfies the terms in the sales contract, Jill's death will not affect the transaction.
All of the following statements are true about land, except: Select one: A. Land exists forever B. Real estate is immobile C. Land cannot be insured D. Land may be depreciated
D. Land may be depreciated the concept of indestructibility is the legal basis for neither insuring land nor being able to depreciate it. Therefore, it is false to say that land may be depreciated.
Earnest money deposits may be placed in interest-bearing accounts if the: Select one: A. Contract specifies the beneficiary of any earned interest B. Account earns a minimum of 5% interest C. Account is properly titled as escrow D. Interest is divided between the cooperating brokers
A
What is wrong with this advertisement: "3 bdrm, 2 ba, $75,000. Ann Agent. Broker XYZ. Phone 123-4567"? Select one: A. Nothing B. No property location specified C. The agent's name appears before the broker's name D. It does not disclose the agent's license status
A
All of the following transactions are exempt from the Virginia Property Disclosure Act, except: Select one: A. Transactions that occur without the help of a broker B. Transfers due to divorce settlements C. Transactions between co-owners D. Transfers regarding foreclosure
A: Transactions that occur without the help of a broker
Who is responsible for the management of a condominium complex after all units are sold? Select one: A. The owners' association B. The corporation C. The managing agency D. The declarant
A: The owners' association
If the named licensee is involved in multiple transaction violations, what is the maximum that a person may collect from the Transaction Recovery Fund? Select one: A. $10,000 B. $20,000 C. $100,000 D. None of the above
B
Which document is the most important at closing? A: Settlement statement B Deed C Inspection reports D Listing contract
B the deed is the most important document at closing because it transfers the property to the purchaser.
One of the principal reasons for zoning is to: Select one: A. restrict business activities B. effectively plan C. affect property values D. generate revenue through taxes
B. effectively plan
Which of the following items is most likely to be severed? Select one: A. Garden tractor B. Commercial cooler C. Rail fence D. Either B or C
C. Rail fence
Which of the following circumstances would diminish a fee simple estate? Select one: A. Death of the owner B. Sale of the property C. Rental of the property D. All of the above
C. Rental of the property
A person enters into a lease agreement for 1 year. At the end of a year, the lease expires, but the tenant does not vacate the property. The tenant would be considered a: Select one: A. Periodic tenant, because the lease automatically renews B. Tenant at will, because no additional time period was specified C. Tenant at sufferance, because the tenant is breaking the law D. Freehold tenant, because the landlord failed to act
C. Tenant at sufferance, because the tenant is breaking the law
Which person would require a license, issued by the Real Estate Board? Select one: A. The executor of an estate B. An auctioneer C. An employee of a broker, who negotiates leases D. An individual employed by the owner of rental property Feedback Your answer is incorrect.
C: A person must have a license if he negotiates leases on behalf of another. However, if that person were an employee of the owner (NOT the broker) and was performing acts in the regular management that property, then no license would be required. Executors and auctioneers are also exempt from the license law.
A real estate license could be suspended without investigation if the licensee: Select one: A. Engages in acts of brokerage while on inactive status B. Violates the Virginia Real Property Act C. Does not pay the Transaction Recovery Fund assessment D. All of the above
C: The only instance where your license can be suspended or revoked without a hearing is in relation to the Transaction Recovery Fund. Specifically, a license will be suspended if you fail to pay your assessment, and it will be revoked if you cause payment from the Fund.
Which of the following contracts provides instructions for the distribution of escrow money? Select one: A. Deed B. Mortgage C. Sales contract D. Listing contract
C: Sales contract The sales contract should state the parameters of the sale, including how escrow funds will be distributed.
Carla the Salesperson places her license on inactive status in July. In October, Carla purchases a house from a FSBO. What, if anything, is Carla required to tell the seller of the property?
D: : Advise the seller in the written offer that she is licensed
The principal broker must keep all of the following records at the main firm office, EXCEPT: Select one: A. Firm license B. Branch license C. Principal broker's license D. Salesperson licenses
B
The purpose of Virginia License Law and the Rules and Regulations is to: Select one: A. Make brokers and salespersons more professional B. Protect the public interest C. Enable licensed real estate professionals to earn more money D. Comply with federal law
B
Which of the following persons may file a claim and collect from the Virginia Transaction Recovery Fund? Select one: A. A broker or a salesperson that has been defrauded in a real estate transaction B. A consumer that has been defrauded in a real estate transaction C. A real estate developer that has been defrauded in a real estate transaction D. All of the above
B Basically, anyone involved in the real estate industry cannot claim or collect from the Fund. This includes brokers, salespersons, developers, and lenders. The Fund is intended to protect consumers, not persons involved in the field.
Salesperson Lynch receives a referral check from an out-of-town broker, Kirks, for sending him a prospective buyer. What is the first thing Lynch should do? Select one: A. Inform his employing broker B. Endorse the check and give it to his employing broker C. Write a thank you note to Kirks D. Deposit the check and say nothing
B Endorse the check and give it to his employing broker
The principal broker of a real estate franchise must make certain disclosures when advertising. In which of the following forms of advertising are these disclosures NOT required? Select one: A. In radio and television advertisements B. On "For Sale" signs places on specific property C. In newspaper ads consisting of more than 28 lines of copy D. None of the above
D
Bob, an associate broker, sold a property. Several weeks after closing, the seller sent him $250 and a thank you note for a job well done. Bob accepted the check since he worked hard and felt the bonus was deserved. In the situation described, which of the following statement is true? Select one: A. Bob may keep the bonus since he has a broker's license B. Bob may accept the bonus if more than 30 days have passed since closing C. Bob may keep the money because of the fiduciary relationship between himself and the seller D. Bob has violated the Board regulations
Associate brokers cannot accept payment directly from a client. Like salespersons, an associate broker must ONLY be paid by the principal broker. The correct answer is: Bob has violated the Board regulations
The minimum balance of the Virginia Real Estate Transaction Recovery Fund is: Select one: A. $800,000 B. $750,000 C. $600,000 D. $400,000
D
New licensee applicants are required to pay into the Transaction Recovery Fund. If necessary, the Board may reassess licensees: Select one: A. $20 every year B. $20 in a two year period C. $20 every two years D. $30 in a two year period
B
Which of the following persons could file a claim for payment from the Transaction Recovery Fund? Select one: A. A licensed salesperson, to recover money that his broker owes B. A lender, to recover losses sustained due to a real estate agent's misrepresentation C. A tenant, seeking to recover a security deposit from his landlord D. All of the above
D
A party defaults during the executory period of a valid real estate contract. As a condition of the contract, the broker must hold any funds in his possession until: Select one: A. The seller advises the broker that the contract has been breached B. The lending institution has advised the broker that the loan application was rejected C. The attorney for the non-defaulting party orders a release of the funds D. A court of competent jurisdiction orders disbursement
D If a transaction does not go to closing, the broker must hold any funds until all principals to the contract agree IN WRITING to the disposition of the funds, SUCCESSFUL interpleader allows the money to be held by the courts, OR a court orders dispersion. The broker can also disburse according to the specific terms of the sales contract. However, that requires written notice and a minimum waiting period.
An owner has been using a parcel of land for heavy industry since 1973. The property is subsequently zoned as commercial, excluding industrial uses. The owner's continued industrial use of the property is a(n): A. violation of the existing zoning B. deviation from the master plan C. example of a zoning variance D. illegal non-conforming use
A: violation of the existing zoning This is an example of a non-conforming use. At one time, the use of the property conformed to the zoning code. The zoning has since been changed, so the continued use for industrial purposes is in violation of current zoning. However, because the use existed before the zoning changed, it may continue. Had the use arisen after the zoning change, it would be classified as an illegal non-conforming use. Master plans contain general standards of present and future development. We do not know if this change deviated from the master plan. Therefore, we do not know whether the non-conforming use deviates from the master plan.
The statute of limitations as it applies to time-share properties is: Select one: A. 1 year B. 2 years C. 5 years D. 7 years
B: The statute of limitations for Time Share properties is 2 years.
Building codes are enforced by: Select one: A. Federal authorities B. State agencies C. Zoning board D. Building permits
D Building codes are enforced by issuing building permits and requiring periodic inspections at certain phases of construction. A final inspection is required before one may receive a certificate of occupancy. Building codes are locally enforced (generally, by building departments).
If performed by a landlord, which action would violate the Virginia Landlord and Tenant Act? Select one: A. He disclosed personal information to a broker since you mentioned buying a home soon B. He disclosed personal information to the local law enforcement without your consent C. He disclosed a summary of your rental payments to staff at an apartment complex D. None of the above
A A landlord cannot release confidential information about tenants without written consent. However, there are certain exceptions to the rule. A landlord may release such information if the information was already public, only a summary of rental payments, related to law enforcement or emergency, for military purpose, for tax purpose, for the U.S. Census, requested by subpoena, or if requested by the landlord's property manager, lender, attorney, collection agency, or subsequent buyer of the property.
The Virginia Real Estate Board is empowered to do all of the following actions, EXCEPT: Select one: A. Establish standardized listing and sales contract agreements B. Administer the Fair Housing Act C. Administer the Transaction Recovery Act D. Administer the Residential Property Disclosure Act
A The Real Estate Board does NOT get involved with standardization of forms used in the industry, but they are involved in administrating the other listed laws.
A legal land description must: Select one: A. Be sufficient to identify the property B. Carry the measurements to the nearest inch C. Show the area of the land being described D. Contain an informal referenc
A. Be sufficient to identify the property
Harry Homeowner takes pride in his property and keeps it well maintained (inside and outside of the home). However, Harry's neighbors are not so conscientious. What concept best explains why Harry's home is losing value? Select one: A. Immobility B. Uniqueness C. Scarcity D. Situs
A. Immobility
A joint tenant wants to sell his interest without consent from the other joint tenants. Can he do this? Select one: A. Yes, because each joint tenant may sell independently of the others B. Yes, because survivorship is present in joint tenancy C. No, because all co-owners must first agree to sever the tenancy D. No, because the unity of interest in a joint tenancy protects the other co-owners
A. Yes, because each joint tenant may sell independently of the others One joint tenant may sell his or her interest independently of the others and without their consent, but could NOT sell the whole. Anyone who buys that interest will become a tenant-in-common with the others, not a joint tenant.
Smith and Brown own abutting property that borders a river. Over the years, soil from Smith's riverbank is washed onto Brown's riverbank. Who owns the soil that was washed from Smith's riverbank to Brown's? Select one: A. Smith B. Brown C. The state D. None of the above, because all river bank owners have riparian rights
B Brown Accretion occurs where natural forces such as water cause land to move from one parcel to another. Once moved, it belongs to the receiving property owner.
Boundary markers of land (natural or man-made) are best known as: Select one: A. Benchmarks B. Monuments C. Stakes D. Metes
B Monuments A monument can be a natural object like a tree, rock, or river. It can also be a permanent, artificial marker like a surveyor's benchmark. However, when used to define the area of a parcel of land, the best choice is "monument" since it covers natural AND man-made boundary markers.
What type of budget is used to forecast income and expense over some period of years? Operating Variable Capital Reserve Stabilized
stabilized A stabilized budget is a forecast of income and expenses that can be projected over a set period of time, usually five years
Desmond the Developer owns a 30-acre tract of land along a major river. He plans to build a river front community in this location. However, before applying for his building permit, Desmond realizes that the zoning has changed to prohibit residential development. Desmond will likely: Select one: A. Receive compensation if he sues on a theory of inverse condemnation B. Receive no compensation because the regulation is not pervasive C. Receive just compensation following condemnation D. Receive compensation only if the zoning change is for a public purpose
B Receive no compensation because the regulation is not pervasive
In an attempt to obtain listings, a broker authorizes her licensees to offer incentives to any person who lists property with her firm. Which of the following statements is correct? Select one: A. The broker has violated Board regulations, which preclude paying valuable consideration to an unlicensed person B. The broker must limit this incentive program to 30 days C. Such actions could be viewed as creative selling, which does not violate License Law or Board regulations D. The brokers actions violate anti-trust laws
C this is creative marketing. Remember that you can pay valuable consideration to the principals in a contract if there is proper disclosure. The correct answer is: Such actions could be viewed as creative selling, which does not violate License Law or Board regulations
Marty Fields just found out that he passed the Virginia real estate sales exam! What must Marty do before he can start selling real estate? Select one: A. Complete the mandatory post-license education requirement B. Apply for a temporary license until he affiliates with a broker C. Affiliate with a broker and submit an application for licensure D. Both A and C
C Affiliate with a broker and submit an application for licensure Marty must submit an application, pay the associated fees, and affiliate with a broker. The salesperson license can then be activated and Marty will have permission to sell (no need to apply for a temporary license). New salespersons must complete PLE within the initial year of licensure, but they are able to sell before that deadline if they possess an active license.
Owning a building typically A Increases marketing abilities for the company. allows B better market share of the business. C reduces the flexibility of the business. D increases the flexibility of the business.
C reduces the flexibility of the business.
Sam dies and leaves a valid will. Sam leaves the family farm to his children after the death of his wife, Jane. Several years after Sam's death, Jane sells her interest to Larry. Which of the following statements is true? Select one: A. Larry has no interest, but may cancel the contract due to Jane's fraud B. Larry has no interest because Jane did not get the children's permission to sell the farm C. Larry has a life estate pur autre vie D. None of the above
C. Larry has a life estate pur autre vie Jane has a life estate and the children are remainderman. Jane may only sell the interest she has. Thus, when she sells the property, the buyer's interest is the same as Jane's--a life estate measured by Jane's life, also known as a life estate pur autre vie.
Louise was licensed, but let her license expire. She decides to sell her own home. What must Louise do? Select one: A. Disclose her status to all prospective buyers B. Notify the Board C. Nothing D. Apply to have her license reinstated
C. Nothing When a license expires, it is no longer valid. The VA License Law treats a person with an expired license the same as a person who was never licensed. That is, only those who are licensed must disclose their license status. Contrast an inactive license with an expired license. A person with an inactive license must disclose their license status because they are licensed, but not affiliated with a broker.
