MOSELEY STATE FINAL PRACTICE 2

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: 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

A. tell the seller that the prospective buyer is a relative (agency disclosures) You must disclose any interest that you have in in a transaction (for example, a family relationship with the buyer).

When a tenant legally terminates a lease, the Virginia Landlord and Tenant Act requires that the owner return any security deposit to the tenant within: A. 3 days B. 15 days C. 30 days D. 45 days

D. 45 days

A real estate salesperson's license may be revoked if the licensee: A. Sells insurance from the real estate office where she is employed B. Gives a reduced commission rate to a family member C. Charges more than the legal maximum commission rate D. Advertises a listing at lower than listed price

D. Advertises a listing at lower than listed price (advertising restrictions) A licensee can only advertise property at the price that was agreed upon by the seller of the property. Doing otherwise might be classified as misrepresentation, and a failure of the licensee's fiduciary duties towards her client. Also note that there is no such thing as a maximum commission rate

Owner Kelly is leaving the area for a one year period. She asks Salesperson Boren to manage her rental home for $45 per month while she is gone. In this situation, which of the following statements is true? A. Boren must work through his broker B. Boren must put the $45 in an interest-bearing escrow account C. This is fine because the compensation is less than $1,000 D. This is fine because the time element is not longer than one year

A. Boren must work through his broker (disciplinary procedures & sanctions) Boren is "employed" by her broker and can only receive compensation through her broker for any act of real estate brokerage. Therefore, the arrangements must be made with the broker and Kelly. All brokerage activity must be through the employing broker (since salespersons cannot act alone).

A salesperson would be subject to disciplinary action by the Real Estate Board for which of the following actions? A. Paying a finder's fee to an unlicensed person B. Acting for both buyer and seller with their mutual consent C. Refusing to hold an open house, at the request of his broker D. Accepting a referral fee from an out-of-state broker, through his employing broker

A. Paying a finder's fee to an unlicensed person (disciplinary procedures & sanctions) Of the listed choices, only "paying a finder's fee to an unlicensed person" is a violation of the License Law. Accepting a referral fee through your employing broker is permissible. However, you can never share a commission with an unlicensed individual.

Jon and Julie enter into a valid sales contract. Pursuant to state law, Jon gathers information about the property condition (including appliances, structural elements, and exterior items). However, Jon gets tired of gathering information and instead decides to sell his home "as is." Can Jon do this without violating the law? A. Yes, as long as Jon completes the necessary paperwork B. No, Jon must disclose each defect C. Yes, as long as a buyer agrees D. No, Jon must discover and disclose each defect

A. Yes, as long as Jon completes the necessary paperwork (virginia property disclosures) At minimum, Virginia requires sellers to provide a mandatory Disclosure Form to the buyer. This form serves as a "buyer beware" reminder and states that the owner makes no representation as to the condition of the property. The seller may need to provide further disclosures as specified by law. Nevertheless, if Jon completes the necessary paperwork, he will be able to sell his home "as is" without violating the law.

A developer has prepared an advertisement, offering several lots for sale. One lot is $10,000 and all others are in the $15,000 - $20,000 price range. Prior to actually running the ad, the developer receives an offer for the $10,000 lot which he intends to accept. Which of the following statements is true regarding the advertisement? A. The developer may publish the ad as planned B. The developer cannot publish the ad as planned C. The developer may publish the ad as planned, but it cannot run for more than 4 weeks D. The developer may publish the ad as planned until 50% of the lots are sold

A. the developer may publish the ad as planned (advertising) The question did not say the offer had been accepted, only that he intended to accept it. As such, this is not a "bait and switch" and the ad may run as planned.

Which of the following names MUST appear in any advertisement for real estate? A. Seller B. Listing salesperson C. Listing broker D. Selling salesperson

C. Listing broker (general advertising) The name of the seller and the name of the listing salesperson MAY appear in the ad, but the listing broker's name MUST appear in all forms of advertisement (conventional and electronic media).

Rainy Yeng has been transferred out of the area on an extended work assignment. She plans to rent her condominium in that time period, and asks Salesperson Cindy to handle the rental. Rainy tells Cindy that she wants $500 per month for the rental and Cindy may have any amount over $500. May Cindy accept this rental listing? A. Yes, Cindy may accept this rental listing because brokerage fees are always negotiable between the owner and the agent B. No, but the listing may be accepted by Cindy's broker, who in turn will pay Cindy the brokerage fee C. Neither Cindy nor her broker may accept this listing D. Cindy may accept this listing if her license is current

C. Neither Cindy nor her broker may accept this listing

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? A. Buyer's attorney B. Buyer should have been aware of the changes C. Seller D. Unit owners' association

C. Seller (virginia condominium act) The law requires that certain information be provided to the buyer by the SELLER during the resale of a condo. Agents need to make certain that the seller does everything that is required by law.

All of the following statements about time-share interests are true, EXCEPT: A. When a time-share is resold, the buyer has 5 days to rescind the contract B. The Association is required to provide a resale certificate to the buyer C. The Association may charge $100 for the resale certificate and related documents D. Once a buyer has closed a time-share contract, all rescission rights are waived

C. the association may charge $100 for the resale certificate and related documents (virginia time share act) The Association can only charge $50 for documents related to a time-share resale certificate. Meanwhile, condominiums can charge $125-$150, depending on the format and number of copies prepared.

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? 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

D. Bob has violated the board regulations (disciplinary procedures & sanctions) Associate brokers cannot accept payment directly from a client. Like salespersons, an associate broker must ONLY be paid by the principal broker.

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? A. Larry, the developer B. Darrell, the contractor C. Tony, the mortgage banker D. No one

D. No one (virginia transaction recovery fund) People who regularly deal in real estate transactions are not eligible for payment from the Transaction Recovery Fund. This includes real estate agents, bankers, developers, and contractors.

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? A. Nothing, because Carla is an inactive licensee B. Nothing, because the property is not listed with a broker C. Advise the seller that she was once an active real estate agent D. Advise the seller in the written offer that she is licensed

D. advise the seller in the written offer that she is licensed (agency disclosures) Disclosure of license status applies to both active and inactive licensees. The fact that your license is on inactive status doesn't mean that you are not licensed--only that you are not affiliated with a broker.