VA Real Estate State Practice Exam 5

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? 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

Which of the following persons could file a claim for payment from the Transaction Recovery Fund? A. A licensed salesperson, to recover money that his broker owes B. A lender, to recover losses sustained due to a real estate agent's misrepresentation C. A tenant, seeking to recover a security deposit from his landlord D. All of the above

All of the above

A broker is NOT required to hold money in an escrow account if: A. The deposit amount is less than $500 B. All parties to the transaction have agreed, in writing C. Closing is scheduled in less than 30 days D. The purchaser is a non-profit organization

All parties to the transaction have agreed, in writing

A broker received an earnest money deposit to support a valid contract. If the contract is breached and does not close, the broker is required to hold the escrow funds until: A. The buyer requests for the deposit be returned B. The broker receives notice of the breach of contract from an attorney C. All principals to the contract agree to the intended distribution D. The non-defaulting party threatens legal action

All principals to the contract agree to the intended distribution

A salesperson could have his license suspended or revoked for which of the following reasons? 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

"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: A. Asian Americans B. Females C. Handicapped persons D. Families with teenagers

Asian Americans

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 payment is made on a broker's behalf from the Transaction Recovery Fund, what action does the Board take? 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

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

In a single transaction, what is the maximum amount that a person can collect from the Transaction Recovery Fund due to licensee misconduct? A. $100,000 B. $20,000 C. $15,000 D. $10,000

$20,000

Newly licensed brokers must complete: A. 30 hours of post-license education B. 45 hours of post-license education C. 16 hours of continuing education D. 24 hours of continuing education

24 hours of continuing education

How long must a broker keep copies of escrow records? A. 2 years from the date of consummation or ratification of the contract B. 3 years from the date the transaction was originated C. 3 years from the date of consummation or ratification of the contract D. 5 years from the date the transaction was originated

3 years from the date of consummation or ratification of the contract

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

A salesperson candidate is required to take a certain number of credit hours before sitting for the state licensing exam. What is this requirement? A. 45 hours B. 60 hours C. 120 hours D. 180 hours

60 hours

Which person would need a license to sell property on behalf on another? A. An auctioneer B. A person receiving a gift certificate to sell a property C. An attorney D. A court appointed trustee

A person receiving a gift certificate to sell a property

Angela operated her own brokerage firm until she unexpectedly passed away. The Board appoints her son, Adam, to operate the business for 180 days. During this period, Adam: A. Will be issued a temporary license by the Board B. Can only conclude the transactions in the process to facilitate the termination of the business C. May take new listings and find buyers for any listings on the books D. Must find a licensed broker to run the business

Can only conclude the transactions in the process to facilitate the termination of the business

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

Jack the Broker sends an email to Mike. The email describes the real estate services Jack provides and encourages Mike to call for more details. Jack makes the required disclosures in the middle of his email, in bold lettering. Jack's email: A. Complies with the regulations B. Does not comply with the regulations C. Is not regulated by the Board D. Complies with the regulations, so long as it is at least 12 point, bold font

Complies with the regulations

A parcel of real estate that you are trying to sell is located near a toxic waste site. The seller (your client) does not want you to disclose this information because he thinks that no one would buy if they knew. As a real estate agent, you have an obligation to: A. Disclose the information regardless of whether you are involved in the transaction B. Note it on the disclosure form--by doing this, you do not need to disclose the fact verbally C. Disclose the information only when you are involved in an transaction D. Say nothing as per your fiduciary relationship with the seller (your client)

Disclose the information regardless of whether you are involved in the transaction

A real estate license could be suspended without investigation if the licensee: 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

The Real Estate Board is responsible for: 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

A license may be suspended without benefit of a hearing: A. For failure to pay an assessment to the TRF B. For failure to pay an assessment to the TRF within 10 days C. If there is a violation of the Board's regulations D. Under no circumstances

For failure to pay an assessment to the TRF

A broker may place a sign on a property when he: A. Has the owner's permission B. Is ready to advertise the property C. Has a written listing agreement D. Plans to hold an open house

Has the owner's permission

When a licensee is selling or leasing personally owned property, she: 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

Is required to disclose her license status

Salesperson Lisa is selling her townhouse to move into a luxury condominium. She advertised her property in the newspaper as follows: "Beautiful, 3 bedroom townhouse. Excellent assumption. Single females only. Call 123-4567 for details. Owner is licensed." Which of the following statements is true? A. Lisa has not violated Board regulations since she disclosed her license status B. Lisa has not violated the Virginia Fair Housing Act since it does not protect marital status C. Lisa has not violated Board regulations since she is not subject to the license laws D. Lisa is subject to Board censure for violation of Fair Housing laws

Lisa is subject to Board censure for violation of Fair Housing laws

An initial time share purchaser has the right to rescind a contract without penalty. This right: A. Must be voided by the seller (developer) B. May be extended upon receipt of a revised POS C. Must be exercised within 3 days D. Must be exercised within 45 days

May be extended upon receipt of a revised POS

Once a license has been issued to a salesperson, her license: A. Must be carried at all times to establish that she is licensed B. Must be displayed in a conspicuous place in her home office C. Must be kept at the employing broker's main place of business D. Must be displayed in the branch office where she is assigned

Must be kept at the employing broker's main place of business

A broker advertises property listed with her firm in a newspaper. What must be included in this property advertisement? A. Name of the listing salesperson B. Price that is shown in the listing agreement C. Name of the broker's firm D. Location of property

Name of the broker's firm

Louise was licensed, but let her license expire. She decides to sell her own home. What must Louise do? A. Disclose her status to all prospective buyers B. Notify the Board C. Nothing D. Apply to have her license reinstated

Nothing

Which of the following would NOT be a violation of Board Regulations? 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

If the Board receives a written complaint about a licensee, what is the first thing they will do? A. Suspend the respondent's license B. Advise the licensee of the charges C. Hold a hearing in order to allow the licensee to defend himself D. Review the complaint to determine if there is a possible violation of License Law or Board regulations

Review the complaint to determine if there is a possible violation of License Law or Board regulations

If a salesperson is accused of violating License Law, the Real Estate Board will: A. Send a copy of the charges to the salesperson at his last known business address B. Send a copy of the charges to the salesperson's broker at the broker's place of business C. Revoke the salesperson's license pending a hearing D. Ask the court to attach any commissions due the salesperson, pending outcome of the investigation

Send a copy of the charges to the salesperson's broker at the broker's place of business

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

The Board believes that a broker is not properly managing her escrow account. Upon request, the court appoints a receiver to manage the account. After investigation, the Board finds that the broker is innocent of any wrong doing. Who is responsible for the expenses and fees of the court-appointed receiver? A. The court that appointed the receiver B. The broker, as a necessary expense to establish her innocence C. The Board, using money from the Transaction Recovery Fund D. The Board, using money from its operating budget

The Board, using money from its operating budget

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: 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

What information can a broker disclose without violating the Virginia License Law? A. With the right terms, that the seller will accept a price below the listed price B. That the buyer is Catholic C. The number of points that will be paid by the seller D. That only people from Jupiter can live in the neighborhood

The number of points that will be paid by the seller

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

Who is responsible for the management of a condominium complex after all units are sold? A. The owners' association B. The corporation C. The managing agency D. The declarant

The owners' association

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

A salesperson who receives an earnest money deposit is NOT required to place the money in an escrow account: A. With the knowledge and consent of the parties B. With the permission of his or her broker C. With the written agreement of both parties D. Until 10 days prior to settlement

With the written agreement of both parties