State Topic Tester - VA Agency

A salesperson obtained a listing. The listing clearly stated the price of the property and other terms under which the owner would sell. The salesperson may change the listing agreement: Select one: A. If he thinks that a buyer would find the terms unreasonable B. At the direction of the broker C. With the permission of the owner D. All of the above

Changes to a listing agreement can only be made with the client/owner's permission. This is true even if the broker demands otherwise. The correct answer is: With the permission of the owner

When a broker is acting as a buyer's agent, he may disclose all of the following items to the buyer, EXCEPT: Select one: A. That the current owner of the property has AIDS B. Information that the broker knows about the financial circumstances of the seller C. Deed restrictions that might affect the buyer's intended use of the property D. None of the above

Disclosing a person's HIV/AIDS status would violate the Virginia Fair Housing Act, and potential federal privacy laws. The correct answer is: That the current owner of the property has AIDS

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

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

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

If the agent gets the FSBO to execute an agency agreement, agency may be established at the first meeting. However, this is not guaranteed. Whatever the timing, agency disclosure is required prior to entering into a brokerage relationship with the client. The correct answer is: Before the FSBO agrees to list his house with the agent

A prospective buyer asks the listing broker if the seller will accept 10% less than the listed price. How should the broker respond? Select one: A. Tell the buyer that the seller is firm and will not negotiate the price B. Advise the buyer to put his offer in writing C. Refer the buyer to a cooperating broker in order to avoid a dual agency situation D. Advise the buyer that a 90% offer is not acceptable, but he should instead offer 95%

The broker's only response is to have the buyer put the offer in writing. It is always the seller's decision to accept or reject any offers. The correct answer is: Advise the buyer to put his offer in writing

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

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. The correct answer is: Search the public records for information about the subject 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

The only time that a salesperson or a broker could change (alter) a listing agreement is with the permission of the seller. This should also be in writing. The correct answer is: With the knowledge and written consent of the owner

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 would be the price shown on the listing agreement. That is the only price that may be quoted to prospective buyers. The correct answer is: The price agreed upon, by the owner, as the offering price

A listing broker receives a low offer from one of his prospects. He also receives a full price offer from a cooperating broker. He may: Select one: A. Present only his prospect's offer B. Present only the full priced offer C. Present both offers D. Present his offer first, then the full price offer if not accepted

The broker must present and receive all offers in a timely manner. It would be a breach of fiduciary duty to postpone deliverance of the full price offer (and not in the seller's best interests). Once presented, only the seller can decide whether to accept or reject an offer. The correct answer is: Present both offers

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

This is not a matter of SHOULD, but MUST. The broker must disclose her relationship with the buyer. Submitting the offer through another party borders on fraud. You cannot assign a listing. The correct answer is: Advise the seller of her relationship with the offeror

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

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. The correct answer is: Nothing

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

You must disclose any interest that you have in in a transaction (for example, a family relationship with the buyer). The correct answer is: Tell the seller that the prospective buyer is a relative

A salesperson works for a broker that has listed a really nice property. He purchases the subject property one day after the exclusive right-to-sell agreement expires. Which of the following statements is true? Select one: A. This is proper, provided the salesperson reveals his license status and relationship with the broker B. This is proper, provided the seller does not find out about the salesperson's license status C. This is improper unless the salesperson obtains his broker's approval D. This is improper because it is prohibited by law

A licensee buying or selling real property in his own name must disclose his license status to the other party in the transaction. The correct answer is: This is proper, provided the salesperson reveals his license status and relationship with the broker

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

Agency disclosure must be made in writing upon having a substantive discussion about the property with an unrepresented buyer. This disclosure may be verbal when triggered, but it needs to be in writing as soon as possible (before specific real estate services are provided). There's a potential for many substantive conversations during an open house, so the agent should already have copies of the disclosure form on hand. The correct answer is: In writing when the broker has substantive discussions about the property with a prospective buyer

If a licensee purchases real estate in his own name: Select one: A. He must assure the seller that the appraisal is valid B. His broker must forfeit the commission C. He must reveal the purpose for which the property is being purchased D. He must disclose the fact that he is licensed

Any licensee may purchase or sell property that he personally owns. However, the licensee MUST disclose to the other party that he is licensed as a real estate professional. The correct answer is: He must disclose the fact that he is licensed

Agnes prepares a will where she names Mary, a licensee, as the devisee. Later, Agnes asks Mary to sell the property. The fact that Mary is licensed: Select one: A. Is not important B. Must be disclosed to any prospective purchaser C. Will allow more favorable terms for the buyer since Mary would forfeit any commission D. Means that the selling price of the property cannot be negotiated

Anytime that a licensee is selling or leasing property in which she has an interest (either by title or by descent), the fact that she is licensed MUST be disclosed to the other party in the transaction. The correct answer is: Must be disclosed to any prospective purchaser

A licensee contacts a homeowner and tries to obtain a listing for the property. When must agency disclosure be provided to the homeowner? Select one: A. Before the owner agrees to list the property B. At the first meeting C. When the licensee presents the first offer to purchase D. Agency disclosure is only required for buyers, not sellers

Brokerage disclosure must occur before entering into a brokerage relationship (in this case, before the owner agrees to list the property). The agent must discuss the proposed type of agency or representation, method of compensation, and whether shared compensation is permitted. The correct answer is: Before the owner agrees to list the property

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? Select one: 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

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. The correct answer is: Advise the seller in the written offer that she is licensed

Joe is a real estate agent with XYZ Corp. Joe is working with a customer who's interested in property owned by XYZ. Is Joe required to disclose his license status to his customer? Select one: A. Joe only needs to disclose his license status if he has an ownership interest in the property B. XYZ is responsible for the disclosure C. Joe must disclose his license status and affiliation with the owners D. No disclosure is required if XYZ is a licensed business entity

Disclosure of license status is required if the agent is selling his own property, property owned by a relative, property owned by his employer, or property owned by a business in which he has ownership interest. The correct answer is: Joe must disclose his license status and affiliation with the owners

When a licensee is selling or leasing personally owned property, she: Select one: A. Is required to disclose her license status B. Does not have to disclose pertinent information about the property C. Must list the property with her employing broker D. Is not subject to Board regulations

Disclosure of license status is required when a licensee is buying or selling property (even if it's your own property). As a licensee, you must still abide by the Virginia License Law and the regulations of the Board. The correct answer is: Is required to disclose her license status

If a broker purchases property through a "straw man" and does not disclose that information, which of the following statements is true? Select one: A. This is not a violation of the License Law B. This is a violation of the License Law C. This is permitted if the "straw man" is also a broker D. This is permitted as long as the seller does not find out

Disclosure of license status is required whenever a licensee buys or sells real property in his own name. Also, anytime a third person is a party to a contract, that fact must be disclosed. The correct answer is: This is a violation of the License Law

Board regulations require that licensees disclose agency relationships to the principals in a real estate transaction. When is such disclosure required? Select one: A. When the licensee has substantive discussions about a specific property B. While showing a specific property C. At the time the closing is conducted D. At the time of contract ratification

It is too late if you are already showing the property. Instead, you should disclose this information as soon as you have substantive discussions with a prospective customer. The correct answer is: When the licensee has substantive discussions about a specific property

A salesperson is employed by Broker Able, but she works alone to market and sell her own home. She must: Select one: A. Abide by all fair housing laws B. Disclose in all forms of advertising that she is a licensee C. Disclose to all buyers her license status D. All of the above

Licensees must make specified disclosures when selling their own property. Disclosure of license status is also required if they have any other interest in a property for sale (for example, if their firm or a family member has an interest in the transaction). The correct answer is: All of the above

When acting as a buyer's agent, what responsibilities should the broker have towards the seller of the property? Select one: A. To keep the seller informed B. To exercise due care for the seller's interest C. To maintain loyalty to the seller D. To treat the seller fairly

Of the listed choices, the broker must treat the seller (customer) fairly. All of the other choices are duties that the broker owes to his client (the buyer). The correct answer is: To treat the seller fairly

The Virginia License Law does not describe a dual agency relationship as illegal. However, if such a relationship should exist, it: Select one: A. Must be disclosed, in writing, to all parties at the time of closing B. Must be disclosed, in writing, to the seller C. Must be disclosed, in writing, to the buyer D. Requires that all parties to the transaction have agreed to the relationship, in writing, prior to the signing of any contract

Prior knowledge and agreement of the relationship is required from ALL parties. As with all things in real estate, this should be in writing and hard copies should be provided to everyone involved. The correct answer is: Requires that all parties to the transaction have agreed to the relationship, in writing, prior to the signing of any contract

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

Remember, you have an agency duty to follow all lawful instructions of the client. The correct answer is: The broker has violated his fiduciary responsibility

Julia the Salesperson obtains a listing. Several days later, Julia meets prospective buyers at the property and remarks that since she is the listing agent, she is very familiar with the property. Under the circumstances described, Julia: Select one: A. Has failed to properly disclose her agency relationship B. Has disclosed her agency relationship with the seller C. Is in violation of Board regulations because she cannot sell her own listing D. Has created a dual agency, which is a violation of Board regulations

The problem with this disclosure is that it is not written. Such disclosures must be made upon having substantive discussions about specific property, and they must be written before providing any specific real estate assistance. The correct answer is: Has failed to properly disclose her agency relationship

With the permission of his broker, a salesperson is representing a buyer. The salesperson goes to a showing for a listed property and properly advises the listing broker that he is representing the buyer. This situation: Select one: A. Would create a dual agency, which is illegal B. Is legal because proper disclosure has been made C. Allows the salesperson to collect full commissions from both buyer and seller D. Is legal, but violates the REALTOR Code of Ethics

The question tells us that the listing broker was advised of the buyer/broker arrangement, therefore this is legal. The correct answer is: Is legal because proper disclosure has been made

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

The regulation states that disclosure is required before you have "substantive" discussions about a specific property. If the buyer is expressing interest in a specific conversation, the conversation will soon progress into providing specific real estate assistance. The correct answer is: When the buyer expresses an interest in a particular piece of property

A broker has entered into a buyer/broker agreement with a prospective buyer. The broker shows the buyer client a property listed for sale with his own firm. Which of the following statements is true? Select one: A. The broker cannot show his own listing B. Such action constitutes dual agency, which is illegal C. The broker may show this property, provided he discloses his dual agency relationship to all parties D. Before the broker may show this property he must obtain a release from the Real Estate Board

This item describes dual agency. The law says that dual agency is legal, but ONLY when all parties have been advised of the dual agency relationship and agree to the arrangement. The correct answer is: The broker may show this property, provided he discloses his dual agency relationship to all parties

Buyer Wallack gives a $3,000 check to Salesperson Huber as a deposit on the sale of a property owned by Mr. Browning. It would be IMPROPER for Huber to withhold what information from Mr. Browning (his client)? Select one: A. Wallack has insufficient funds to cover the check B. The check is postdated C. Huber has agreed to hold the check for a few days before turning it over to his broker for deposit D. All of the above

Through his broker, Huber is an agent of the seller (Mr. Browning). He must therefore keep the seller informed of all matters concerning the transaction. Insufficient funds or a postdated check make the item a non-negotiable instrument (which cannot be deposited promptly into escrow). In addition, Huber must also relay the exact terms and conditions of any offer to his client. The correct answer is: All of the above