VA Real Estate State Practice Exam 3

Broker Takahashi wants to open her own partnership. Her long-time friend, Sayumi, is not licensed as a real estate agent. However, she agrees to provide most of the start-up money in exchange for a share of the anticipated profits. Sayumi is therefore designated as a senior partner of the brokerage firm. Which of the following statements is correct? A. Sayumi cannot engage in acts of brokerage B. The partnership must have a separate license issued by the board C. Sayumi can be a senior partner, but she cannot be the principal broker D. All of the above

All of the above

If used to advertise property, which type of communication could trigger disclosure requirements by a licensee? A. Email B. Instant messaging C. Chat D. All of the above

All of the above

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: 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

Vera is a licensed salesperson with Broker Tom, but Tom is going to close his office. When this happens, Vera plans to work with Broker Jane. Vera should: A. Get her license from Tom and take it to Jane B. Have all earned commissions placed in an escrow account C. Ask Tom to return her license to the Board and apply for a transfer D. Apply to the Real Estate Board for a license as a new applicant

Ask Tom to return her license to the Board and apply for a transfer

If a contract of sale is not consummated, how are escrow funds disbursed? 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

If the named licensee is involved in multiple transaction violations, what is the maximum that a person may collect from the Transaction Recovery Fund? A. $10,000 B. $20,000 C. $100,000 D. None of the above

$20,000

After the death or disability of the only broker in a real estate firm, how long does a Board-approved person have to conclude the business? A. 120 B. 150 C. 180 D. 210

180

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

45 days

The initial purchaser of a time-share estate has a statutory right to rescind a contract to purchase. How long is this rescission period? A. 5 days B. 7 days C. 10 days D. None of the above

7 days

A person seeking a real estate license in Virginia MUST be: A. A resident of Virginia B. At least 21 years old C. A college graduate D. Competent and have a good reputation for honesty

Competent and have a good reputation for honesty

The Board may take disciplinary action against a licensee: A. If a written complaint contains prima facie evidence that a violation has occurred B. If the licensee admits guilt C. After conducting a hearing D. Either B or C

Either B or C

As a property manager, a broker should maintain a bank account for money that belongs to the owner. How is this account identified? A. Escrow account B. Operating account C. Reserve account D. Miscellaneous account

Escrow account

Money or trust instruments received, accepted, or held on behalf of another pending consummation or termination of a real estate transaction are: A. Commissions B. Down payments C. Escrow funds D. Anticipated profits

Escrow funds

Broker Sarah takes a listing from a seller, who later tells her that the house should not be shown to any minorities. The broker should: A. Note this on the MLS form B. Make written acknowledgement of the instructions C. Explain that she cannot comply because this violates federal law D. Avoid discussion of the request

Explain that she cannot comply because this violates federal law

A real estate salesperson will receive her share of the brokerage fee from which person? 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

Salesperson Chris advertises a property that he listed. The ad reads, "beautiful rambler, excellent assumption. Call Chris at 555-0000 for details." This ad is in violation of the Virginia License Law because: A. It does not include the owner's name B. It does not include the property address C. It does not include a statement that the owner is licensed D. It does not include the name of Chris' firm

It does not include the name of Chris' firm

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? 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"

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? 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? 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: 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

Once a sales contract has been ratified, what can a licensee legally do without permission from the principals to the contract? 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

Search the public records for information about the subject property

The Board determines that a licensee misrepresented information on her license application. In this situation, which of the following statements is true? A. The Board may take disciplinary action B. The Board may order criminal penalties C. The licensee must forfeit all commissions earned D. The licensee must submit to re-examination

The Board may take disciplinary action

If a broker holds an earnest money deposit in an interest-bearing escrow account, what is the disposition of any earned interest? A. It is, by regulation, credited to the buyer B. It is always credited to the seller at closing C. The broker may keep the interest D. Escrow accounts cannot, by regulation, earn interest

The broker may keep the interest

Which of the following statements is correct if a licensee is leasing his own property, without help from a broker? A. The licensee is exempt from both the Federal and Virginia Fair Housing Laws B. The licensee may be exempt from the Virginia Landlord Tenant Act C. The licensee is required to disclose the name of his employing broker D. The licensee is not subject to the rules and regulations of the Board

The licensee may be exempt from the Virginia Landlord Tenant Act

Which of the following statements is true about the branch office of a Virginia real estate firm? A. The office must have an escrow account B. The office can be managed by a salesperson with 3 years experience C. The office must have a separate license D. The branch office must display the licenses of all agents assigned to that particular office

The office must have a separate license

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? 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

If a broker purchases property through a "straw man" and does not disclose that information, which of the following statements is true? 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

This is a violation of the License Law

If the Transaction Recovery Fund falls below a statutory minimum, licensees may be assessed to restore the Fund. What is the maximum that one licensee may be assessed during a two-year period? A. $20 B. $40 C. $50 D. There is no maximum assessment

$20

A salesperson is employed by Broker Able, but she works alone to market and sell her own home. She must: 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

All of the above

A Virginia real estate license must be renewed at periodic intervals. The regulations specify that: A. A broker's license must be renewed on June 30 of every even numbered year B. Salespersons and associate brokers must renew their licenses every two years in the month of their birth date C. All licenses must be renewed biennially in odd numbered years D. Brokers must renew their licenses every two years in the month that it was issued

Brokers must renew their licenses every two years in the month that it was issued

A licensed real estate salesperson may receive money to manage real property from: A. His or her broker B. Any property owner C. Any broker D. A friend, relative, or builder

His or her broker

The Virginia Real Estate Board is empowered to: A. Levy fines B. Reimburse aggrieved persons C. Adjudicate disputes between licensees D. Enforce the code of ethics

Levy fines

Which person is designated to ensure compliance with Virginia license law and be responsible for the activities of the entire firm? A. Associate Broker B. Director C. Supervising Broker D. Principal Broker

Principal Broker

When a salesperson transfers from one broker to another, it is the duty of the former broker to: A. Send the salesperson's license to the new broker B. Send the salesperson's license to the Real Estate Board C. Apply for inactive status for the salesperson D. Hold the license until the salesperson has paid any outstanding bills

Send the salesperson's license to the Real Estate Board

If a person wants to make a claim from the Transaction Recovery Fund, where should this claim be filed? A. A court of competent jurisdiction B. The Virginia Association of Realtors C. The Real Estate Board D. The principal broker of the respondent

The Real Estate Board

The objective of the Virginia Fair Housing Law is to: 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

Protect and ensure the welfare of the general public

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? 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

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)? 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

All of the above

When the Transaction Recovery Fund balance falls below a statutory minimum, it results in: A. An assessment from all licensees to restore the fund to the minimum balance B. An assessment from active licensees to restore the fund to the minimum balance C. An evaluation of the Fund's investments in order to generate additional earnings D. A 20 percent decrease in the maximum payment one may receive from the fund

An assessment from all licensees to restore the fund to the minimum balance

Salesperson Lynch receives a referral check from an out-of-town broker, Kirks, for sending him a prospective buyer. What is the first thing Lynch should do? A. Inform his employing broker B. Endorse the check and give it to his employing broker C. Write a thank you note to Kirks D. Deposit the check and say nothing

Endorse the check and give it to his employing broker