Moseley Pre License State Exam Prep Questions
In a single transaction, what is the maximum amount that a person can collect from the Transaction Recovery Fund due to licensee misconduct? Select one: a. $100,000 b. $20,000 c. $15,000 d. $10,000
$20,000
An award from the Transaction Recovery Fund will result in: Select one: A. Automatic suspension of the real estate license B. Automatic revocation of the real estate license C. A fine not to exceed $50,000 D. A fine not to exceed $20,000, and up to 6 months in prison
Automatic revocation of the real estate license
If a payment is made on a broker's behalf from the Transaction Recovery Fund, what action does the Board take? Select one: A. Automatically suspend the broker's license B. Automatically fine the licensee for $1,000, then schedule a hearing C. Automatically revoke the broker's license D. Schedule a hearing to determine guilt or innocence
Automatically revoke the broker's license
In Virginia, what action is prohibited in an advertisement for real estate? Select one: A. Failing to get a client's written consent to advertise his property B. Failing to identify the type of services offered in a general property description C. Advertising that a property listed by a firm is for sale by owner D. All of the above
All of the above
Which of the following statements is true about real estate advertising? Select one: A. It must be supervised by the principal or supervising broker B. It must be in the name of the firm C. The firm's licensed name must be clearly and legibly displayed D. All of the above
All of the above
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
An employee of a broker, who negotiates leases
When a salesperson is alleged to have violated the License Law, which of the following statements is true? Select one: A. An investigation will be conducted unless the law specifically provides otherwise B. The salesperson is entitled to a jury trial before any action can be taken C. The salesperson's license will be temporarily suspended until the board can schedule a formal hearing D. The salesperson's broker is automatically charged with the same violation
An investigation will be conducted unless the law specifically provides otherwise
Jill wants to sell her home and enters into a sales contract with Jack. Jack will be moving in with his wife and three small children. Jill's broker must disclose of each of the following items to Jack, except: Select one: A. Condition of structural elements B. Condition of appliances C. Condition of electrical systems D. An occupant was HIV positive
An occupant was HIV positive
Which of the following non-residents may obtain a Virginia real estate license? Select one: A. A salesperson licensed in another state B. A broker licensed in another state C. A person that is NOT licensed in another state D. Any of the above
Any of the above
Jane has been out of town on personal business. When she returns on July 5, Jane realizes that her real estate license expired on May 31. What must she do? Select one: A. Take the license exam as a new applicant B. Apply for reinstatement of her license and pay a fee C. Apply for renewal of her license D. Apply to have her license placed on inactive status
Apply for reinstatement of her license and pay a fee
The Real Estate Board is responsible for: Select one: A. Determining commission splits between all MLS brokers B. Approving the license examinations C. Standardization of the clauses contained in a listing agreement D. Both B and C
Approving the license examinations
A salesperson contacts a neighborhood FSBO about listing the house with her firm. When is agency disclosure required? Select one: A. At the first meeting between the FSBO and the agent B. Before the FSBO agrees to list his house with the agent C. When the agent presents the first offer from a prospective buyer D. Never since disclosure is only required to buyers, not sellers
Before the FSBO agrees to list his house with the agent
Broker Adam is encouraging you to sell since your new neighbors will be Catholics. He says that once they move in, crime will increase and property values will tumble. Your broker is guilty of: Select one: A. Redlining B. Steering C. Blockbusting D. Puffery
Blockbusting
The principal broker must keep all of the following records at the main firm office, EXCEPT: Select one: A. Firm license B. Branch license C. Principal broker's license D. Salesperson licenses
Branch license
The Real Estate Board is responsible for: Select one: A. Regulating brokerage fees B. Enforcing the License Law C. The code of ethics for real estate professionals D. Enforcing the Virginia Homestead Act
Enforcing the License Law
As a property manager, a broker should maintain a bank account for money that belongs to the owner. How is this account identified? Select one: A. Escrow account B. Operating account C. Reserve account D. Miscellaneous account
Escrow account
Broker Evans fired Sally because she was stealing from the petty cash fund. Evans told her that he would not return her license until the money had been repaid. But, Sally is innocent! She started looking for new firms after the accusations were made, but can't transfer until her license is returned to the Board. What can Sally do to force Evans to return the license to the Board? Select one: A. File a complaint with the local Realtors' Association B. Sue Evans in the local court C. File a complaint with the Real Estate Board D. Do nothing until the matter is legally resolved
File a complaint with the Real Estate Board
Kathy the Consumer has filed a claim for payment from the Transaction Recovery Fund. The reason for the claim is to reimburse a loss sustained after a salesperson made a gross misrepresentation. In order for Kathy to collect, she must have already: Select one: A. Filed a suit against the local Realtors Association B. Filed a claim against the salesperson in a court of competent jurisdiction C. Filed a claim against the salesperson's broker D. Filed a claim with HUD
Filed a claim against the salesperson in a court of competent jurisdiction
A woman tells her brother (a broker) that she would like to buy a piece of property that he has listed. However, she does not want the seller to know of their relationship. The brother should: Select one: A. Tell the seller that the prospective buyer is a relative B. Let another person buy the property and turn the deed over to the sister C. Sell the property without disclosing their relationship D. Find another listing agent to avoid a conflict of interest
Tell the seller that the prospective buyer is a relative
If a licensee has placed her license on inactive status, it means: Select one: A. That she is not affiliated with a brokerage firm or sole proprietor B. That she had no sales or listings during the preceding 12 months C. That she is acting as a referral agent only, and is not active in selling and listing D. That she can engage in acts of brokerage on a selective basis
That she is not affiliated with a brokerage firm or sole proprietor
A broker accepts a listing from a seller. In the agreement, the seller stipulates that the broker shall list the property on two different MLS directories. The broker only lists the property on one, but receives three offers within the first week. Under these circumstances, which of the following statements is correct? Select one: A. The broker has violated his fiduciary responsibility B. The broker is committed to finding a ready, willing, and able buyer and has complied with the agency agreement C. The broker has exercised appropriate discretion D. The broker, by agreement with the MLS, may not advertise listings in more than one MLS directory
The broker has violated his fiduciary responsibility
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
The claimant assigns his rights to the Board, to the extent of the amount of money paid by the Fund
A buyer entered into a contract to purchase a new condominium. At the time of contract ratification, the swimming pool cited in the POS was not completed. How should the sales agent advise the prospective buyer? Select one: A. Withhold a portion of the purchase price until the pool is complete B. Make certain that the plat included in the condo documents is clearly marked that the pool is "to be completed" C. Refuse to close the transaction D. Obtain a mechanics lien release from the developer
Make certain that the plat included in the condo documents is clearly marked that the pool is "to be completed"
Broker Foster manages an apartment building for Owner Smith. Foster used the security deposits of two tenants (Petri and Gonzales) for general maintenance on the apartment building. Was this action permissible? Select one: A. Yes, because deposits are held to cover the cost of repairs B. Yes, as long as the owner is aware of it C. No, security deposits are held for tenants in an escrow account and are not part of the operating funds D. No, using these deposits for repairs would eliminate the need to charge damage repairs when tenants move out
No, security deposits are held for tenants in an escrow account and are not part of the operating funds
What is wrong with this advertisement: "3 bdrm, 2 ba, $75,000. Ann Agent. Broker XYZ. Phone 123-4567"? Select one: A. Nothing B. No property location specified C. The agent's name appears before the broker's name D. It does not disclose the agent's license status
Nothing
Which of the following would NOT be a violation of Board Regulations? Select one: A. Placing an earnest money deposit into a regular operating account B. Placing an earnest money deposit into a separate escrow account C. Paying for a CRV and a credit report out of the escrow account D. Turning the deposit over to a seller
Placing an earnest money deposit into a separate escrow account
Which of the following actions is an example of commingling? Select one: A. Placing earnest money from two buyers into the same escrow account B. Using personal funds to open an escrow account C. Placing earned commissions in the same account as earnest money deposits D. Placing earned commissions in the same account as referral fees
Placing earned commissions in the same account as earnest money deposits
For a corporation licensed to engage in real estate business, which individual is primarily responsible for those real estate activities? Select one: A. President of the corporation B. Principal broker C. Chairman of the board D. Corporate attorney
Principal broker
What is the illegal act where an insurance policy is denied based on the property location instead of the economic qualifications of the borrower? Select one: A. Redlining B. Steering C. Blockbusting D. Puffery
Redlining
When talking to a prospective buyer, the broker may NOT quote any price other than: Select one: A. The price established as the fair market value B. The price recommended by the listing broker C. The price agreed upon, by the owner, as the offering price D. The value established by the appraisal
The price agreed upon, by the owner, as the offering price
If a principal broker's license is suspended, what happens to the licenses of any affiliated agents at that firm? Select one: A. Their licenses are not affected B. Their licenses will also be suspended C. Their licenses must be returned to the Board D. They must re-take the exam
Their licenses must be returned to the Board
John is trying to find a tenant to share his home and pay part of the expenses. He advertises for males only. Is there anything wrong this? Select one: A. John has violated 1968 Fair Housing Law for sexual discrimination B. There is nothing wrong with an ad of this type C. Ads of this type violate the 1988 amended Fair housing laws D. John must be licensed by the Board
There is nothing wrong with an ad of this type
What is the maximum amount that can be paid from the Transaction Recovery Fund for claims against the same licensee during a two year period? Select one: A. $10,000 B. $20,000 C. $50,000 D. $100,000
$100,000
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
$20,000
Licensees must respond to Board inquiries within: Select one: A. 10 days B. 15 days C. 21 days D. 31 days
21 days
A salesperson candidate is required to take a certain number of credit hours before sitting for the state licensing exam. What is this requirement? Select one: A. 45 hours B. 60 hours C. 120 hours D. 180 hours
60 hours
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
A real estate transaction
Which payment does NOT need to be held in an escrow account? Select one: A. Money received as a security deposit for rental property B. A referral fee received from an out-of-state broker C. An earnest money deposit, if closing is scheduled in less than 15 days D. An earnest money deposit, if the amount is less than $250
A referral fee received from an out-of-state broker
A woman offers to buy property listed by her sister, who has a broker license. However, the woman does not want the seller to know that she is buying the property. What should her sister (the broker) do when presenting the offer? Select one: A. Advise the seller of her relationship with the offeror B. Find another party to submit the offer and later transfer it to her sister C. Remain silent on the matter D. Give the listing to another broker to make the sale
Advise the seller of her relationship with the offeror
A salesperson could have his license suspended or revoked for which of the following reasons? Select one: A. Raising the price on a contract in order to influence a lender B. Giving a false address in order to obtain a license C. Encouraging a homeowner to sell since minorities are moving into the neighborhood D. Any of the above
Any of the above
An applicant must meet which of the following requirements in order to become a salesperson or broker? Select one: A. Be at least 18 years of age B. Be a US citizen C. Hold degree in real estate D. Be a Virginia resident for at least 1 year
Be at least 18 years of age
The VREB regulations require that complete records of real estate transactions: Select one: A. Be retained by the principal broker indefinitely B. Be furnished to the Board upon request C. Be furnished to the Board every three years D. Be maintained in a federally insured bank
Be furnished to the Board upon request
The Board may investigate a complaint based on: Select one: A. A written complaint B. Its own initiative, without any written complaint C. Matters outside the scope of its authority D. Both A and B
Both A and B
A salesperson wishes to transfer from one broker to another. The salesperson can only do this: Select one: A. By having his license returned to the Board and a new license issued to the new broker B. If he gives his current broker 30 days notice C. If he gives his current broker 30 days notice D. If the Board is notified when his license is renewed
By having his license returned to the Board and a new license issued to the new broker
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
By the broker, according to the terms of the contract if neither party files a written objection
Earnest money deposits may be placed in interest-bearing accounts if the: Select one: A. Contract specifies the beneficiary of any earned interest B. Account earns a minimum of 5% interest C. Account is properly titled as escrow D. Interest is divided between the cooperating brokers
Contract specifies the beneficiary of any earned interest
A real estate license could be suspended without investigation if the licensee: Select one: A. Engages in acts of brokerage while on inactive status B. Violates the Virginia Real Property Act C. Does not pay the Transaction Recovery Fund assessment D. All of the above
Does not pay the Transaction Recovery Fund assessment
Allison is a broker who knowingly stated an false material fact. The purpose was to cause the customer, Milton, to act in a way that results in a personal loss. Allison is guilty of: Select one: A. Fraud B. Misrepresentation C. Inducement D. Larceny
Fraud
A real estate salesperson will receive her share of the brokerage fee from which person? Select one: A. Either buyer or seller, based on their agreement B. The attorney conducting the closing C. Her employing broker D. The listing broker
Her employing broker
If the Board receives a written complaint about a licensee's actions, what does the Board always do? Select one: A. Suspend the license until a formal hearing can be conducted B. Impose a monetary penalty of up to $1,000 C. Hold a hearing to allow the licensee to defend herself D. Investigate to determine whether a violation might have been committed
Investigate to determine whether a violation might have been committed
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
May not withhold part of the security deposit to cover the cost of normal wear and tear
What is NOT a requirement to become a broker in Virginia? Select one: A. Must be 18 years of age B. Must complete 145 credit hours of courses approved by the Board C. Must have been active as a salesperson for 3 years D. Must be in good standing in any jurisdiction where licensed
Must complete 145 credit hours of courses approved by the Board
According to the Virginia Landlord-Tenant Act, security deposits: Select one: A. Are 100% refundable to the tenant B. Must earn interest to the benefit of the tenant C. Cannot exceed the equivalent of one month's rent D. Must placed in an escrow account
Must placed in an escrow account
Harry is a broker. He works out a deal with Larry (a developer), Darrell (a contractor), and Tony (a mortgage banker). The deal states that Harry will sell all of the houses that Darrell built on Larry's land. After that, Tony would handle the mortgages of any buyers through his bank. Harry sells three houses, then runs off with all the funds. Larry, Darrell, and Tony all file claims for payment from the Transaction Recovery Fund. Who is most likely to collect? Select one: A. Larry, the developer B. Darrell, the contractor C. Tony, the mortgage banker D. No one
No one
Robert the Broker wants to stay on top of technological trends. Therefore, Robert decides to advertise his firm via banner ads on commercial web pages. Since the ad must be small, Robert makes no disclosures in the banner itself. Instead, Robert provides a link that redirects the user to his web page, which displays the necessary disclosures. Has Robert violated the rules? Select one: A. Yes, because the required disclosures must appear in the ad itself B. No, because it is permissible to provide a link to the required disclosures C. Yes, because his ad appears on another commercial site D. No, because the Board does not regulate banner advertising
No, because it is permissible to provide a link to the required disclosures
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
Refusing to cooperate on the sale of property listed exclusively
The purpose of the Transaction Recovery Fund is to: Select one: A. Reimburse financial losses caused by licensee misconduct B. Encourage higher education in real estate C. Provide retirement income for brokers D. Provide funds for the Board's operating expenses
Reimburse financial losses caused by licensee misconduct
Virginia Fair Housing Laws apply to: Select one: A. Residential sales only B. Residential sales and rentals C. All real estate transactions D. All real estate transactions with the exception of industrial sales
Residential sales and rentals
A condominium owner re-sells his unit. After settlement, it is discovered that the CCRs were revised during the executory period of the contract. Who was responsible for advising the buyer of the changes? Select one: A. Buyer's attorney B. Buyer should have been aware of the changes C. Seller D. Unit owners' association
Seller
A licensee is on vacation when his license expires. He still needed to take one more continuing education course before his license expiration date. What should he do? Select one: A. Take the continuing education course B. Pay a $200 fee and re-apply for his license C. Take the continuing education course and apply to reinstate his license D. Apply for a license as a new applicant
Take the continuing education course and apply to reinstate his license
If a judgment has been awarded to a claimant, what must the claimant do before the Board will authorize payment from the Transaction Recovery Fund? Select one: A. The claimant must have gone after any assets and property belonging to the debtor B. The respondent must assign all commissions and personal property to the claimant or the Board C. The respondent must file bankruptcy and sell all property D. The respondent must submit to interrogatories by claimant
The claimant must have gone after any assets and property belonging to the debtor
Time-shares will most likely to involve: Select one: A. First-time home buyers B. Industrial projects C. Vacation property D. Elderly persons
Vacation property
Listing agreements should be specific about their exact terms. Under what conditions may the listing be altered? Select one: A. To encourage a prospective buyer to make an offer B. With written permission from the listing broker C. If the changes are reasonable D. With the knowledge and written consent of the owner
With the knowledge and written consent of the owner
When a real estate license has expired, when can a person reinstate his license without monetary penalty? Select one: A. Within 15 days B. Within 30 days C. Within 1 year D. The licensee cannot be reinstated after expiration
Within 30 days
A broker is holding an open house for 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 general discussions about the property with a prospective buyer D. In writing when the broker has substantive discussions about the property with a prospective buyer
In writing when the broker has substantive discussions about the property with a prospective buyer
An owner lists property with a broker. The owner specifies how much she wants to receive from the sales proceeds, then allows the broker to propose a selling price. This type of agreement: Select one: A. Assures a quick sale because the broker knows the seller's exact position B. Is attractive to many sellers since they don't need to get involved in the negotiation C. Is illegal since it would allow the broker to take advantage of an uninformed seller D. Is common and completely legal
Is common and completely legal
A contract cannot be consummated due to a disagreement between buyer and seller. The broker still has the earnest money deposit in his escrow account. The seller demands that the deposit be given to him, but the buyer demands that the deposit be returned to her. What can the broker legally do? Select one: A. Immediately return the funds to the buyer B. Immediately give the funds to the seller C. Retain the funds as his commission D. Hold the funds until ordered by the court to disburse
Hold the funds until ordered by the court to disburse
The Board takes disciplinary action against a licensed salesperson. Which circumstance might also put the employing broker at risk of disciplinary action? Select one: A. If the broker knew or should have known of the agent's actions B. If the agent's actions were outside the authority granted by the employing broker C. Only if the salesperson is an employee of the broker, not an independent contractor D. The broker is automatically responsible for all actions of any person affiliated with the firm
If the broker knew or should have known of the agent's actions
"For rent by owner. Share townhouse, 3 bdrm. 2 ba. conv. to shops and trans. Call 123-4567 for details. No agents or _________________." All of the following descriptions can legally complete the advertisement, EXCEPT: Select one: A. Asian Americans B. Females C. Handicapped persons D. Families with teenagers
Asian Americans
A non-resident broker may open an office in Virginia, provided she does which of the following actions? Select one: A. Employs a resident broker to represent her B. Closes her out-of-state office C. The firm must be incorporated in Virginia D. Files an irrevocable consent to suits and services
Files an irrevocable consent to suits and services
Salesperson Cook places a newspaper ad on a piece of property that she owns. The ad reads, "3 bedroom, 2 bath, rambler; below market; good location; call 555-3421." This ad is in violation of the Real Estate Board Regulations because: Select one: A. The ad fails to include the property address B. The ad fails to disclose that the owner is a licensee C. The ad makes false or misleading statements D. The ad does not include the price
The ad fails to disclose that the owner is a licensee
A developer advertises a time-share and offers a prize to any person visits and inspects the property. Which of the following statements is true about the advertisement? Select one: A. The advertised time-share must be fully described B. The prize must be described in detail C. The ad must disclose the date that the prize will be awarded D. The ad must include the date that the offer expires
The ad must include the date that the offer expires
A broker manages three separate properties for the same owner. One property is in need of emergency repairs, but there is no money in the management account to cover the cost. The broker "borrows" money from another property's escrow account to make the needed repairs. Assuming he restores the borrowed funds on the next business day, which of the following statements is true? Select one: A. The broker acted properly by safeguarding his client's interests B. The broker is in violation of License Law for improperly handling escrow funds C. Such action by the broker is proper because all properties are owned by the same person D. The broker is required to make the repairs with his own funds, then receive reimbursement from the owner
The broker is in violation of License Law for improperly handling escrow funds
A licensee presents a full-price offer to the seller, subject to a home inspection. The agent orders the home inspection from a friend, who then pays him a referral fee. This action would violate the Real Estate Board regulations unless: Select one: A. The inspector is licensed in Virginia B. The fee is less than $100 C. The fee is acknowledged, in writing, by the parties to contract D. The inspection service provides a warranty
The fee is acknowledged, in writing, by the parties to contract
A prospective buyer enters a broker's office and is escorted into the conference room. After the broker has financially qualified the buyer, they begin to review available properties that meet the buyer's wants, needs, and financial limitations. When is the broker required to disclose the agency relationship? Select one: A. When determining the financial qualifications of the buyer B. When the buyer expresses an interest in a particular piece of property C. When the buyer has identified a property that is acceptable D. Before the broker and buyer begin to discuss any specific property
When the buyer expresses an interest in a particular piece of property
A broker has the buyer's earnest money deposited in an escrow account. The amount of the deposit exceeds the amount of the broker's commission for the sale. The broker can ONLY remove his commission for the sale: Select one: A. When the buyer moves into the property B. When the seller moves out of the property C. When the closing is completed D. Whenever the seller says it's fine to do so
When the closing is completed
Ben and Barry enter into a valid sales contract, which specifies that the trash compactor will be in working order. Ben signs a disclaimer/waiver about the property, which states that he is selling "as is" and gives no opinion on the condition of specified systems. When Barry takes possession of the house, the trash compactor is not operational. Does Barry have a cause of action against Ben? Select one: A. No, because Ben sold the home "as is" B. Yes, because Ben's disclosure was defective C. Yes, because Ben is in breach D. No, because Barry took possession
Yes, because Ben is in breach
Billy the Broker represents Suzy Seller in an effort to sell her home. Bob the Buyer makes an offer that is $20,000 below what Suzy is asking. Knowing that Suzy would reject such a low offer, Billy tells Bob to "forget it." Has Billy violated the VA License Law? Select one: A. No, because he acted in Suzy's best interests B. No, because Billy is a broker C. Yes, because Suzy must communicate directly with Billy D. Yes, because Billy failed to present the offer to Suzy
Yes, because Billy failed to present the offer to Suzy
Bill hires Larry to sell his home. Bill prefers to communicate with Larry via email. One night, Larry replies to one of Bill's emails, but includes none of the required disclosures. Has Larry violated the rules? Select one: A. Yes, because the rules require specified disclosures in emails B. No, because Bill is Larry's client C. Yes, so long as Larry is a Broker D. No, because disclosure was provided in prior communication
Yes, because the rules require specified disclosures in emails