Practice Test

The objective of the Virginia Fair Housing Law is to Select one: a. Discipline and fine anyone who violates the law. b. Provide fair compensation for landlords. c. Establish the guidelines in which testers operate so as not to create an allowable defense of entrapment. d. []Protect and ensure the welfare of the general public.

d. []Protect and ensure the welfare of the general public.

If the Board receives a written complaint regarding the actions of a regulant, what is the first thing the Board will do? Select one: a. Suspend the respondent's license. b. Advise the licensee of the charges. c. Hold a hearing to allow the licensee to defend himself or herself. d. []Review the complaint for possible violation.

d. []Review the complaint for possible violation.

An investor owns a piece of rental property for which he is receiving $700 per month. He asks his friend Larry, a licensed salesperson, to manage the property and will pay Larry any amount in excess of the $700 as the management fee. May Larry accept the listing? Select one: a. []No. b. Yes, provided that Larry's license is active. c. No, but Larry's broker may accept the listing. d. Yes, but only if the gross rental is disclosed.

. []No.

The Virginia Fair Housing Law prohibits discrimination on the basis of Select one: a. []Familial status. b. Marital status. c. Source of income. d. Sexual preference.

a. []Familial status.

If a first time offender is found to have violated the Virginia Fair Housing Laws, what is the maximum civil penalty that the Attorney General can impose? Select one: a. $25,000. b. []$50,000. c. $100,000. d. There is no limit.

b. []$50,000.

Which of the following would be a violation of the Virginia Fair Housing Law? Select one: a. Refusing to list a commercial property owned by a person of a particular minority group. b. Hiring office personnel on the basis of sex regardless of qualifications. c. Placing ads, printed in a foreign language. d. []Taking listing with the intent to change the racial make-up of the neighborhood.

d. []Taking listing with the intent to change the racial make-up of the neighborhood.

When a salesperson is alleged to have violated the license law which could result in disciplinary action, 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.

a. []An investigation will be conducted unless the law specifically provides otherwise.

Under what circumstances could a broker pay a "finders fee" to an insurance broker? Select one: a. []If the insurance broker is also licensed as a real estate broker. b. If the terms of the sales contract require insurance. c. If insurance is required by the lender. d. After the sale has closed and title conveyed.

a. []If the insurance broker is also licensed as a real estate broker.

The statute of Virginia mandates the number of people on the Real Estate Board. Currently the Board consists of Select one: a. 7 members; 6 licensees and 1 citizen. b. 7 members; 5 licensees and 2 citizens. c. 5 members; either licenses brokers or salespersons. The statute of Virginia mandates the number of people on the Real Estate Board. Currently the Board consists of Select one: a. 7 members; 6 licensees and 1 citizen. b. 7 members; 5 licensees and 2 citizens. c. 5 members; either licenses brokers or salespersons. d. []9 members; 7 licensees and 2 citizens.

The statute of Virginia mandates the number of people on the Real Estate Board. Currently the Board consists of Select one: a. 7 members; 6 licensees and 1 citizen. b. 7 members; 5 licensees and 2 citizens. c. 5 members; either licenses brokers or salespersons. d. []9 members; 7 licensees and 2 citizens.

If the Board receives a complaint accusing a licensee of violating the Virginia Fair Housing Law, which of the following statements is correct? Select one: a. []If the respondent is guilty, his or her license could be suspended or revoked. b. The licensee is subject to a maximum fine of $500.00. c. The Board will suspend the respondent's license pending full investigation. d. The Board will notify HUD immediately.

a. []If the respondent is guilty, his or her license could be suspended or revoked.

According to the Virginia Residential Landlord and Tenant Act Select one: a. []Security deposits are to be refunded, in whole or in part, within 45 days following termination of a lease. b. The owner must inspect the property within five days of termination of the rental agreement. c. Tenant violations of the rental agreement must be corrected within 10 days following notification of the violation. d. People who own and lease apartment buildings, consisting of 4 units or less, are exempt from the A

a. []Security deposits are to be refunded, in whole or in part, within 45 days following termination of a lease.

If the Board authorizes payment from the Transaction Recovery Fund, the claimant subrogates his or her rights to the Board. The Board now has the right to Select one: a. []Sue the licensee to recover the amount of the claim paid. b. Sue the licensee to recover the amount of the judgment awarded by the court. c. Only revoke the respondents' license, as provided in the law. d. Sentence the licensee to a prison term of up to 12 months.

a. []Sue the licensee to recover the amount of the claim paid.

Joe is a licensed sales agent with XYZ Realty Corp. Joe is working with a customer interested in leasing property owned by XYZ. Is Joe required to disclose his relationship with XYZ to his customer? Select one: a. []Yes, Joe must disclose his license status and relationship with XYZ. b. No, a corporate officer of XYZ is responsible for the disclosure. c. No, disclosure is not required because XYZ is a licensed business entity. d. Joe must only disclose if he has an actual ownership interest in the property.

a. []Yes, Joe must disclose his license status and relationship with XYZ.

If the initial purchaser of a time-share interest rescinds the contract, the developer is required to refund monies advanced by the purchaser within Select one: a. 30 days subject to a 10% penalty. b. []45 days, without penalty. c. 60 days, without penalty. d. 90 days, subject to a 10% penalty.

b. []45 days, without penalty.

A written offer is presented to the seller. The seller counters and the buyer accepts the counteroffer. When is the broker required to provide the parties with copies of the ratified contract? Select one: a. Within 24 hours. b. []Promptly, after obtaining proper acceptance by all parties. c. After the broker has proofread the documents. d. At closing.

b. []Promptly, after obtaining proper acceptance by all parties.

The Virginia Residential Landlord Tenant Act allows a landlord to require a security deposit as a condition of a lease, but has established a maximum amount. The amount of such deposit cannot exceed Select one: a. One month's rent. b. []Two month's rent. c. Three month's rent. d. $500.

b. []Two month's rent.

When Lori passed her license examination she placed her license on inactive status. Two years later she decides to activate her license with a local firm. Lori needs to Select one: a. Sit for the state portion of the license examination. b. Take a 15-hour real estate course that reviews Virginia laws and regulations. c. []Complete an activate form and pay a fee. d. Advise the Board of her intent and request her license be sent to her.

c. []Complete an activate form and pay a fee.

When a payment is made from the Transaction Recovery Fund due to the improper activities of a licensee, it results in Select one: a. Suspension of the respondent's license. b. No further action by the Board if the Fund is repaid within 30 days. c. []Revoking the license of the respondent. d. A fine of $2,000.

c. []Revoking the license of the respondent.

A broker manages three properties for the same owner. One property is in need of emergency repairs but there is not enough money in the management account to cover the cost. The broker borrows money from the escrow account of one of the other properties to make the repairs. Which of the following is true? Select one: a. The broker has acted properly by safeguarding his clients' interest. b. Such action is proper because all properties are owned by the same person. c. []The broker is in violation of regulations for improperly handling escrow funds. d. The broker must use personal funds for repairs if there is not enough money in the management account.

c. []The broker is in violation of regulations for improperly handling escrow funds.

Once a listing agreement is obtained from a seller and is accepted by the broker, an agency relationship is created between Select one: a. The sales agent and the broker. b. The seller and the sales agent. c. []The seller and the broker. d. The sales agent and the seller.

c. []The seller and the broker.

The requirement that funds be held in an escrow account does not apply to which of the following? Select one: a. Money received as a security deposit for rental housing. b. An earnest money deposit, if closing is scheduled in less than 15 days. c. An earnest money deposit of less than $500. d. []A commission received from an out-of-state broker.

d. []A commission received from an out-of-state broker.

When the Board issues an active license, the license Select one: a. Must be maintained in the possession of the licensee as proof of licensure. b. Must be displayed by the licensee in a conspicuous place. c. Must be made available to the public at the office where the licensee is active. d. []Must be made available to the public at the broker's main place of business.

d. []Must be made available to the public at the broker's main place of business.

A salesperson is showing a customer a unit in a newly developed condominium. The recreation areas of the project are not completed at the time the buyer is ready to make an offer. What should the salesperson do in this situation? Select one: a. Advise the buyer to withhold a portion of the purchase price until the common elements are completed. b. Refuse to present the offer to the developer. c. Obtain a mechanics lien against the developer. d. []Research the condo documents to determine if the recreational areas are described and the plats indicate a scheduled completion date.

d. []Research the condo documents to determine if the recreational areas are described and the plats indicate a scheduled completion date.

Carol had just started to work as a salesperson. On her first day she obtained an exclusive listing. The listing must include all of the following information, except Select one: a. The name of her employing broker. b. A definite date on which the listing will expire. c. An adequate property description. d. []The net amount that the seller will receive from the sale.

d. []The net amount that the seller will receive from the sale.

A broker may be licensed with more than one Virginia brokerage firm or sole proprietorship under which of the following circumstances? Select one: a. With the knowledge and permission of the seller. b. With the written permission of his or her sales manager. c. With the permission of the local Association of Realtors. d. []With the written consent of the principal brokers represented.

d. []With the written consent of the principal brokers represented.

The statute of limitations as it applies to time-share properties regarding inaccurate information in the POS or any contract is Select one: a. []2 years. b. 5 years. c. 7 years. d. No time limit.

a. []2 years.

Which of the following persons may not obtain a real estate license in Virginia? Select one: a. []A 17 year old college graduate who majored in real estate. b. Any person whose license has been revoked in another state. c. A person who failed a license exam in another state. d. A person charged with armed robbery five years ago.

a. []A 17 year old college graduate who majored in real estate.

When are real estate licenses renewed? Select one: a. Annually, in the month issued. b. Every two years, in the month of the licensee's birthday. c. On June 30 of each evened numbered year. d. []Every two years on the last day of the month in which they were issued.

d. []Every two years on the last day of the month in which they were issued.

A licensee whose license has been on inactive status for more than three years will have to do which of the following in order to activate the license? Select one: a. Sign an irrevocable consent to suits and services. b. Appear at a hearing before the Board. c. Apply for relicensure as a new applicant. d. []Meet current educational requirements.

d. []Meet current educational requirements.

Which of the following statements is true as it relates to the initial sale of a time-share interest? Select one: a. Buyers have a statutory 10 day right of rescission. b. The developer may not offer buyer incentives until at least 51% of the units have been sold. c. The developer control period ceases when 75% of the units are sold. d. []Selling a time-share interest, for others, is considered an act of brokerage and therefore requires licensure.

d. []Selling a time-share interest, for others, is considered an act of brokerage and therefore requires licensure.