Ch. 1 - Virginia License Law
What is the potential penalty for subsequent violations of Fair Housing laws?
$100,000
A violator may be assessed a civil penalty of up to what amount for the first violation?
$50,000
The initial purchaser of the condo has how many days to rescind the contract without reason or penalty?
10
When the Board receives a Fair Housing complaint, how long do they have to notify the respondent of the alleged violation?
10 days
How long does the Board have to decide if there is reasonable cause to back up the discrimination allegations?
100 days
Broker license educational criteria require ____ hours of board-approved real estate study.
180
If the tenant violates a lease provision, the landlord will notify him of such in writing. At that point, the tenant will be given _____ to correct this violation.
21 days
Copies of any disclosures regarding a fully executed purchase contract must be held by the licensee for how many years?
3
A written notice must be given to the board in the event of any change of business name or location within how many days of the change of name or location?
30 calendar
Every broker applicant must have acted in the capacity of real estate salesperson for______________________ before applying for a broker's license.
36 of the previous 48 months
The Virginia Real Estate Board currently requires anyone wishing to obtain a real estate license to complete a state-approved _________ course on the principles of real estate with a passing grade.
60-hour
If the brokerage agreement does not have a specific termination date, the relationship will automatically terminate how many days after it was begun?
90
Which of the following describes a cooperative owner?
A resident who purchases stock in a corporation and is allowed to occupy a unit in a building.
If the Virginia license applicant has had a license suspended or revoked in any jurisdiction because of association with disciplinary action, which of the following is true?
A very detailed explanation of the event/circumstances must be included with his license application
In which case would a broker's salaried employee/assistant not need a real estate license?
Accepting applications for leases, security deposits and rentals for such real estate
What is the first step the Board will take if it believes a licensed broker, salesperson, or agency has engaged in discriminatory housing practices?
Attempt to resolve the matter by conference and conciliation.
The illegal practice of bringing about panic selling in a neighborhood for financial gain is known as what?
Blockbusting
Which of the following acts would be considered illegal?
Blockbusting, steering and redlining
Every individual, partnership, association, limited liability company, or corporation acting as a real estate broker may display signage on the outside of each place of business maintained in Virginia. What must the sign display?
Both A. & B. A. The name of such individual, partnership, association, limited liability company, or corporation and B. The words "real estate," "realty" or other words or phrases designating a member of an association of real estate brokers
Virginia real estate business entity firm licenses are required by all of the following except?
Broker owner sole proprietorships
Virginia requires a real estate license when performing which act?
Buys or offers to Buys or offers to buy real estate for another person or entity real estate for another person or entity
Which of the following items may be placed in a broker's escrow account for use as an earnest money deposit?
Cash or check
A licensee doing anything wrong with other people's money such as; depositing it too late, taking it out too soon, or using the money without written permission is guilty of which of the following?
Commingling
Which of the following activities are illegal in Virginia?
Commingling and Conversion
Salespersons' and brokers' licenses must be renewed on the last day of the month during which the license was issued. For example, if a license was issued on December 15, 2010, the license would expire on
December 31, 2012.
A natural or legal owner who declares his intention to commit a property to a condo regime is called what?
Declarant
Any broker with more than one real estate office in Virginia must do what?
Designate one of their offices as the "main office," and the other offices as "branch offices."
Which of the following is the Virginia Real Estate Board authorized to do?
Develop a residential property disclaimer statement form and a residential property disclosure statement form
What advertising guidelines apply to instant messages?
Disclosure is not necessary if the licensee provided proper information via another format prior to sending the instant message.
Which protected status includes pregnant women, those in the process of adopting children, or becoming custodial parents/guardians of a child?
Familial
Licensee Fred is selling his own property and listed it on a popular local marketing website. What guidelines must Fred following regarding the ad placement?
He must clearly disclose that he is licensed.
Where would you expect to find a description of assessments?
In the declaration
Which of the following is NOT required to be recorded in a broker's escrow records?
Interest amounts earned on escrow funds
Which of the following would not be a penalty of a civil action for discrimination?
Jail time
If Jane's license is about to expire, whose responsibility is it to make sure it's renewed?
Jane's
Which of the following describes, "simple routine acts that a licensee may perform for a person, which do not involve the exercise of the licensee's own judgment"?
Ministerial acts
Seller Mary told Agent Norm to sell her condo at any price, just so long as she walks away from the deal with $50,000. What type of listing contract is Mary wanting?
Net Contract
The Virginia Fair Housing Law applies to which of these?
Newspapers, Appraisers, and Contractors
A person who feels he's been discriminated against has how many years to file a complaint with the Board?
One
What is the illegal practice of refusing to make loans in certain neighborhoods?
Redlining
The protected classes under the Virginia Fair Housing Law include classes based on which of these?
Religion
Which of the following formulas is used to determine the state recordation tax?
Sale price divided by $100 x $ .25.
Which of the following statements best defines the act of conversion?
Taking the money or property of others
All institutional advertising must clearly state that the service being advertised is a real estate brokerage and that each licensed firm or sole proprietorship displaying or using the service mark is an independently owned and operated business, EXCEPT in which type of media?
Telephone communications
All of the following require a thirty day Board notification of any change, except?
Termination or status change of any salesperson or broker
Prior to entering into a brokerage relationship, the licensee must disclose both the type of brokerage relationship proposed by the broker and what?
The broker's compensation
If the transaction is NOT consummated, which of the following is NOT a process for distribution?
The closing company assumes the escrow funds, subtracts a service charge and then distributes the remaining funds equally to both parties in the transaction.
Who has the burden of proof in an action alleging fair housing discrimination?
The complainant
A landlord cannot release the tenant's financial information to a third party without the written consent of the tenant. The exception to this rule is which of the following?
The records of rental amounts and payment records may be released to a prospective buyer.
Which party is required to pay a grantor tax?
The seller
Who is responsible for administering Fair Housing Laws in Virginia?
Virginia Real Estate Board
When can funds be removed from an escrow account?
When a transaction is consummated
A branch office must display the branch office license and
a list of every salesperson and broker assigned to the office.
According to Virginia law, "Every relationship in which a real estate licensee acts for or represents a person by such person's express authority in a real estate transaction," is considered to be a/an
agency relationship.
The Virginia Residential Landlord and Tenant Act covers
all apartments.
The Virginia Real Estate Board
approves schools to teach broker/salespeople courses in real estate
A meeting of the Association must be held
at least annually.
All ______ applicants must have acted in the capacity of a real estate salesperson for 36 of the previous 48 months before applying for a broker's license.
broker
Any person licensed as a broker or salesperson in Virginia may prepare written contracts for the sale of real estate,
but may not charge a separate fee for preparing the contracts.
Unless otherwise agreed to in writing, once a contract is ratified, any earnest money MUST be put into an escrow account
by the end of the fifth business banking day.
Someone who has entered into a brokerage relationship with a licensee is known as a
client.
Regarding disclosures, the licensee has the obligation to
disclose to the seller all material facts to which the licensee has actual knowledge, related either to the property or the transaction itself.
If rent has not been paid on an apartment, the landlord can issue
either a Five-Day Pay-Or-Quit Notice or an Unlawful Detainer Warrant.
The Virginia Real Estate Board does not
establish commission rates or commission splits.
Escrow records MUST BE kept for three YEARS
from the date of closing or ratification.
Monies in the escrow account of the firm where a party has filed a civil action as to their disbursement must be
given to the courts to disburse.
Those applicants who do not follow all board rules, or the rules of the testing service in taking the examination, may
have their applications denied.
Every Virginia Broker must have a place of business
in Virginia.
A licensee must present all written offers and counteroffers
in a timely manner.
The Virginia Association of REALTORS(R)
is not the same as the Board but is a trade organization.
Monies in the escrow account of the firm that are in dispute by the parties as to their disbursement
may be kept in the escrow account until the parties reach a decision as to its disbursement.
People who are not residents of Virginia, and are not licensed in another jurisdiction
must meet the same requirements as the residents of Virginia, in order to be licensed in Virginia.
Under VRLTA if the landlord does not correct a violation, and the tenant still decides to remain living on the property, the tenant
must still make rental payments, but deposit them with the General District Court.
Only ______________ items can be placed in escrow, such as checks, cash, or money orders.
negotiable
The Virginia Real Estate Board may issue real estate licenses to all of the following, except a
non-resident testamentary trust.
The Virginia Fair Housing Law does NOT apply to
non-residential property.
Buyers may cancel a time-share purchase contract for seven calendar days after execution of the purchase contract
or receipt of a current public offering statement, whichever is later.
According to Virginia law, an agency relationship requires that a licensee exercise
ordinary care.
A new license applicant whether broker or salesperson must be under the supervision of a(an)______________________ broker of a firm or sole proprietor.
principal or supervising
A person or business entity who for compensation, sells or offers for sale, units or interest in condominiums, cooperative interests, or time-shares in a time-share program, describes a
real estate broker.
A landlord is allowed to access rental properties, provided he's given the tenant_________notice of his intent to visit the property.
reasonable
The Virginia Real Estate Board is composed of nine members, of which, _____ members must have been licensed real estate brokers or salespersons for at least five consecutive years before their appointments.
seven
Unless agreed upon by all parties to a transaction, earnest money ________________ be deposited before acceptance of an offer to purchase.
should not
If a licensee is called into active duty in the military, he is allowed____months past the time of release from active duty, to complete continuing education requirements.
six
Virginia real estate regulations state that all salespeople must complete at least _______________hours of approved continuing education during each licensed term.
sixteen
If an agent leaves one broker and goes to another, his or her listings
stay with the broker unless otherwise agreed to by both the seller in a listing agreement and/or the buyer in a buyer agency agreement and the broker.
In the cases of termination of a licensee, closing a firm, or change of license status, such licenses must be returned to the board within
ten calendar days.
Any changes to a lease at the time of renewal - specifically rent increases - must be agreed to by the
tenant in writing.
Once the brokerage relationship agreement is completed or upon the date of expiration mandated in the brokerage agreement, whichever comes first, the brokerage relationship is considered to be
terminated.
Commingling funds can best be described as
the illegal mixing of client funds with a real estate broker's own funds.
An expired license can be renewed within 30 days, if
the licensee pays the normal renewal fee, as well as has completed the necessary continuing education.
If a person is licensed in another state as a salesperson or broker, the Board does have the authority to waive all or part of the pre-licensing requirements, if the following is met,
the person must not have had his/her license suspended, revoked, or surrendered in connection with any disciplinary action.
Association membership is determined by
the stockholders of the cooperative corporation.
A Service Mark can best be defined as
the trade name or logo which is owned by an entity other than the licensee and which the licensee has obtained permission to use.
If the tenant violates the lease, the tenant will be given 21 days to correct this violation. If it is not corrected, the lease will terminate after_____days.
thirty
Performing which activity is exempt from holding a Virginia real estate license?
trustee performing their duties under a living trust instrument
Under the Virginia Residential Landlord and Tenant Act, a security deposit may not be more than
two months' rent.
A licensee is required to maintain confidentiality of all personal and/or financial information received from the client during the brokerage relationship
unless the client provides a written consent for the release of information.
Any person licensed as a broker or salesperson in Virginia may prepare written contracts for the sale, purchase, option, exchange, or rental of real estate
unless there is a contradictory court ruling.
According to Virginia law an additional fee of $20 may be charged to each initial applicant,
which goes to the Recovery Fund.