VA State Exam Questions with 100% Correct Answers | Verified | Updated 2024, Exams of Advanced Education

Download VA State Exam Questions with 100% Correct Answers | Verified | Updated 2024 and more Exams Advanced Education in PDF only on Docsity! VA State Exam Questions with 100% Correct Answers | Verified | Updated 2024 Which of these is a rule that governs how escrow money can be disbursed? Brokers can disburse escrow money at the conclusion of the transaction to settle the agreement between the parties. Brokers can disburse escrow money in a different way than the contract indicates. If the contract doesn't give any instructions about the escrow account, the money always goes back to the client who paid it. Licensees must open an escrow account on the same day that they receive escrow money. - Correct Answer- Brokers can disburse escrow money at the conclusion of the transaction to settle the agreement between the parties. Which of the following is the best description of an escrow account? Any account that a brokerage maintains Any account that only the principal broker is allowed to access Any account where licensees or brokers can't access the money for a certain amount of time Any account where the money is being held in reserve for someone else - Correct Answer-Any account where the money is being held in reserve for someone else A salesperson or associate broker may perform real estate brokerage activities under what circumstances? Bart Celia Henry Simone - Correct Answer-Simone Which of the following transactions demonstrates designated agency? Benny, a licensee from New Days Realty, represents seller Carmine. Bert, a licensee from Expertise Realty, represents Cassandra, the buyer. Benny, a licensee, represents seller Carmine and buyer Cassandra. Licensee Benny represents seller Carmine, and licensee Boyd represents buyer Cassandra. They both work for New Days Realty. The seller, Carmine, is represented by licensee Benny. The buyer, Cassandra, is unrepresented. - Correct Answer-Licensee Benny represents seller Carmine, and licensee Boyd represents buyer Cassandra. They both work for New Days Realty. In Virginia, what information does the Megan's Law disclosure provide to buyers? A description of the case that led to Megan's law Notice that the seller is responsible for disclosing registered sex offenders in the area The names and addresses of registered sex offenders in the area There is no Megan's Law disclosure in Virginia - Correct Answer-There is no Megan's Law disclosure Who is able to apply for concurrent licensure? Bethany is almost finished with her 180 hours of broker education and is ready to take her broker's examination. Eric, who works for the largest real estate firm in the state as a salesperson. George is a licensed broker at a small backwoods real estate firm. Jason, a registered administrative clerk and licensed salesperson. - Correct Answer-George b/c he is a licensed broker Broker Malcolm submits his client's purchase offer, then goes on vacation. When he returns two weeks later, he learns that a counter-offer was submitted and the response date had expired. His client's offer was terminated because he failed to respond on time. This violation is an example of ______. Toby advises them to list their house at a price that's a little lower than the Pooles first suggest. Toby brings a counter-offer to the Pooles and explains to them what it means. Toby discloses his brokerage relationship to several potential buyers. When the house is under contract, Toby receives three more offers that he doesn't present to the Pooles. - Correct Answer-When the house is under contract, Toby receives three more offers that he doesn't present to the Pooles. Sandy is a real estate licensee who is listing a condo for her client. Sandy sends a note to the owner's association requesting a condo disclosure package. How long does the association have to provide this to her and her client? 14 days after receipt of the written request 28 days after receipt of the written request 30 days after receipt of the written request 45 days after receipt of the written request - Correct Answer-14 Days after receipt of the written request How long does a timeshare developer remain in control of a timeshare project? For as long as the project remains in existence as a timeshare. Until 100% of the timeshare units are sold. Until 75% of timeshare owners agree to participate in an owner's association and can assume management of the property. Until 90% of the timeshare estate has been sold or whenever all of the project's amenities and facilities have been completed, whichever is later. - Correct Answer-Until 90% of the timeshare estate has been sold or whenever all of the project's amenities and facilities have been completed, whichever is later. Licensees from other states can practice real estate in Virginia if ______. They are older than 21. They have a letter of recommendation from their state's governing real estate body. They inform the VREB about the transaction they are working on before it goes to closing. They meet Virginia's requirements apply for licensure by reciprocity, and take and pass the Virginia exam. - Correct Answer-They meet Virginia's requirements apply for licensure by reciprocity, and take and pass the Virginia exam. Owner Cameron is selling his condo by himself (he's not using an agent). - Correct Answer-Cindy has to sell her townhouse because she hasn't paid state taxes in more than 10 years. Rebecca is her own boss. Not only does she manage her own schedule and clients, she doesn't have a supervisor and completely manages her own CE and license renewal. She also doesn't have to share commission with anyone. What type of Virginia real estate license does Rebecca hold? Associate broker Associate broker with at least five years of experience Broker Salesperson - Correct Answer-Broker A developer cannot advertise or sell timeshare property until the ______ is approved. Disclosure of Timeshare Property Interest Transfer Notice of Timeshare Advertisement and Sale Public offering statement Timeshare ownership statement - Correct Answer- Public Offering Statement Which of the following is a type of listing agreement that is not permitted in Virginia? Exclusive agency Exclusive right to represent Net listing Open listing - Correct Answer-Net Listing How many citizen members must be on the Virginia Real Estate Board? Four Nine Seven Two - Correct Answer-Two In Virginia, in what form can a buyer pay earnest money? Cash, check, bank letter of credit, or promissory note Cash or check only Check, cashier's check, or wired funds Seek a property to purchase - Correct Answer-Account for all money or property received by the licensee in which the owner has an interest In addition to being properly executed (signed) what other requirements are there for recording a document in Virginia? Must be acknowledged before a notary public. Must be sealed and mailed in a registered envelope to the county clerk's office. Must have at least 2 witnesses present at the time of filing. Must meet SEQRA standards. - Correct Answer-Must be acknowledged before a notary public. Which of the following is an example of an escrow account? Licensee Connor keeps money in this account to pay for traveling expenses for when he's showing clients houses. Money in this account pays for all the licensees in a brokerage to travel to a trade show next month. Principal broker Cynthia maintains this account to cover expenses such as lunches out with clients. Principal broker Darius opened this account to hold an earnest money check from his licensee's client. - Correct Answer-Principal broker Darius opened this account to hold an earnest money check from his licensee's client. Broker Delia is managing an unusual sales transaction. Her client Phyllis wants to give her a small ruby for her down payment. It's been valued by a certified jeweler and will cover the down payment amount. Should Delia accept it? No, because this kind of payment will be impossible to disburse when the time comes. No; escrow accounts are only meant to hold cash. Yes, as long as she records its acceptance in the sales agreement document. Yes, but she shouldn't put it in an escrow account. - Correct Answer-Yes, as long as she records its acceptance in the sales agreement document. Condominium _______ set forth the rules and regulations for the condominium owners associations. They govern how the associations manage and spend cash reserves, for example. Bylaws CC&Rs A misrepresentation is always intentional, while an omission is always accidental. A misrepresentation is another name for fraud, while an omission is an honest mistake. Misrepresentations are a sub-category of omissions, and are not punishable by law. Misrepresentations can be intentional or unintentional. Omissions are one type of misrepresentation. - Correct Answer-Misrepresentations can be intentional or unintentional. Omissions are one type of misrepresentation. Which section of the Residential Contract of Purchase requires the seller of a property within a development that is subject to the Virginia Property Owners' Association Act to give the buyer a copy of the property owners' association packet? The Notice to Purchaser(s) section The Property Owners' Association Disclosure section The Seller's and Purchaser's Options section The Virginia Condominium Act section - Correct Answer- The Property Owners' Association Disclosure section In Virginia, there are specific requirements for all transactions involving the purchase or lease of residential properties constructed before 1978. Licensees are required to provide a lead-based paint disclosure form, and all purchase agreements must allow the buyer the option to conduct a lead-based paint risk assessment or inspection. What is the third item a licensee must provide to the buyer? Assurance that the home is lead-free before offering it for sale Lead safety pamphlet List of reputable home improvement contractors Written proof that the home is lead-free - Correct Answer-Lead safety pamphlet In Virginia, anyone who owns or operates a regulated UST must notify ______ of the UST's existence. The DEP The DEQ The EPA The local police - Correct Answer-The DEQ Buyer Arlene has received the disclosure packet and resale certificate from the HOA associated with the property she was interested in, but now she's thinking of backing out. Can she do so without penalty? have at least three years of experience as a Virginia salesperson before he can become a broker. The Virginia Condominium Act is concerned that condo owners and potential buyers have the information they need to make informed decisions. To that end, which of the following does this act regulate? That all condo developments adopt the same CC&Rs That all owners associations allow everyone in the development to run for board member positions That the legal definition of a condominium is posted in all development common areas The information that must be included in public offering statements - Correct Answer-The information that must be included in public offering statements Under what listing agreement is an agent owed a commission no matter who secures the buyer for the transaction? Dual or designated Exclusive agency Exclusive right-to-sell Open - Correct Answer-Exclusive right-to-sell Jeremiah reviews the floor plan of the house he's going to sell. It's 3,800 square feet. In his advertising, he bumps that number up to 4,000 square feet to better justify its asking price. What has Jeremiah done? Active misstatement Exaggeration Intentional misrepresentation Puffery - Correct Answer-Intentional misrepresentation Benjamin's house is for sale. It has a crack in the foundation. Potential buyer Shayna has not asked about the foundation. What are Benjamin's disclosure responsibilities? He has to disclose the crack whether or not Shayna asks about the foundation. He must disclose the crack if Shayna asks him about the foundation. He only has to disclose this problem if he's told his agent about it. This isn't a material defect, so it doesn't have to be disclosed. - Correct Answer-He must disclose the crack if Shayna asks him about the foundation. Linda stores Gregory's pocket card. Salespersons do not receive pocket cards. - Correct Answer-Gregory must carry his pocket card at all times. Which of the following situations must be reported to the VREB? Ben just failed the test to become a broker. May, a principal broker, is changing the name of her brokerage. Natalia signed up to take six hours of post-licensing education. Yusuf just received a large commission from his first sale. - Correct Answer-May, a principal broker, is changing the name of her brokerage. Lucy is worried. She tells her agent Mick that her house, which she wants to sell, was used to manufacture methamphetamines before she bought it. "Does that affect the selling price of the house?" she asks Mick. What should he answer? "This isn't something that we have to disclose, so no, it won't affect the asking price of your house." "We have to disclose that meth was manufactured here, whether it was properly cleaned up or not, so yes, it could affect the selling price of your house." "We only have to disclose if the house wasn't cleaned according to state guidelines, so let's get that information." "You only have to reveal this fact if a potential buyer specifically asks about it, so let's hope no one does!" - Correct Answer-"We only have to disclose if the house wasn't cleaned according to state guidelines, so let's get that information." You decide to take the earnest money deposit you've been given and place it in your personal account until it is needed at closing. What type of violation have you committed? Conflict of interest Improper brokerage commission Improper delivery of instruments Misrepresentation - Correct Answer-Improper delivery of instruments Karen just received her real estate license in Virginia. She must take post-licensing education this year and then she can renew her license next year. What type of license does Karen have? Sallee, a salesperson with three months of experience who works under principal broker Skyler, destroys brokerage disclosure records that are two and a half years old. Which of the following statements about this situation is true? Sallee could be found negligent in her recordkeeping duties. Since the records are older than two years, shredding them is perfectly allowable. Since the records didn't contain financial information, shredding them is perfectly allowable. Skyler could be found negligent in his recordkeeping duties. - Correct Answer-Skyler could be found negligent in his recordkeeping duties. Larry represents the seller. Performing which of these duties for the buyer could be a breach of duty to his client? Advising the buyer on what to include in an offer Filling in the blanks for the buyer by following their instruction Presenting the buyer's offer to the seller Providing the buyer with copies of signed paperwork - Correct Answer-Advising the buyer on what to include in an offer Real estate licensees are seldom guilty of blatant discrimination, but unintentional discrimination does exist. What's one example of unintentional discrimination? Following a landlord's instructions as to income requirements for applicants Not showing African Americans homes in neighborhoods where they may be victims of racial bias Not showing first-time homebuyers homes outside of their price range Refusing to work with African Americans - Correct Answer-Not showing African Americans homes in neighborhoods where they may be victims of racial bias Nathaniel assisted with the purchase of a commercial building that will be used as a community center. He doesn't hold a real estate license, yet his actions didn't violate any license laws. What must be true about Nathaniel's situation? He received a commission of less than $1,000. To perform an inspection to uncover any defects on properties To seek a property at a price and terms acceptable to Ryan To sell her own property if Ryan does not find a property to purchase by the end of the agreement period To share any and all details that a seller requests - Correct Answer-To seek a property at a price and terms acceptable to Ryan Which of the following is NOT a protected class under federal or Virginia fair housing laws? Gender identity Muslims The elderly Those with assistance animals - Correct Answer-Those with assistance animals Virginia's Big Valley Brokerage was just audited and the auditor found several instances of noncompliance. What happens next? The brokerage's license will be temporarily suspended until the noncompliance issue is resolved. The licenses of all affiliated brokers will be temporarily suspended. The principal broker must address the noncompliance or create a plan to do so. The principal broker must pay for another more in- depth audit within six weeks. - Correct Answer-The principal broker must address the noncompliance or create a plan to do so. Which of the following is a requirement of a supervising broker? Apply for license renewals of all sponsored associates Audit sponsored associates' personal bank accounts to ensure no real estate funds have been mishandled Interview clients of sponsored associates to evaluate their performance Maintain an office for associates to conduct business and take phone calls - Correct Answer-Maintain an office for associates to conduct business and take phone calls Leon's client is looking for a property with at least 2,500 finished square feet. He finds a 2,200-square-foot property with all the other features the client is looking for and purposely fails to mention the square footage. A description of the methods used to advertise the timeshare and the legal requirements that the developer must abide by when advertising. A full disclosure of the timeshare project, characteristics of the project, any material circumstances that affect it, and the specific timeshare being offered. A list of limitations that all timeshare owners must honor when using the jointly available timeshare facilities. A list of the other parties participating in the timeshare for their specific unit and a breakdown of the calendar days each party will be in possession. - Correct Answer- A full disclosure of the timeshare project, characteristics of the project, any material circumstances that affect it, and the specific timeshare being offered. Tommy is an unlicensed individual helping his sister, Katerina, find a new house, in return for a trip to Europe. Which of the following activities can Tommy legally perform? He can negotiate the sale of her old house. He can purchase a new property for Katerina at an auction. He can receive compensation from Katerina for locating a new house. He can search real estate sites and resources to find available homes in the area. - Correct Answer-He can search real estate sites and resources to find available homes in the area. What is the purpose of federal and Virginia fair housing laws? To make sure all neighborhoods are ethnically diverse. To make sure that everyone has an equal opportunity to live where they want. To make sure that like-minded people can live together. To protect property values. - Correct Answer-To make sure that everyone has an equal opportunity to live where they want. Calla has a client, Trevor, who wants to find a property to lease. Which of the following is NOT a duty she owes him? Calla agrees to not show the apartment that Trevor likes to any other potential tenant. Calla deposits Trevor's down payment in a fund and creates a transactional record for it. If you're convicted of a lesser crime, why might your real estate license still be revoked? Even misdemeanors are cause for license revocation. If the crime involves another individual, it's grounds for license revocation. Lesser crimes are treated under the new "One Strike and You're Out" rule. There is no leeway when it comes to violating the law. Your offense demonstrates a lack of trustworthiness. - Correct Answer-Your offense demonstrates a lack of trustworthiness. It's March 25, and new salesperson Travis is about to renew his license. Travis was first licensed one year ago on March 3. He's taken 30 hours of post-licensing education, paid his fees, and filled out his renewal application on the VREB website. What, if anything, has he forgotten or done wrong? He hasn't forgotten anything or done anything wrong. He needs a signed letter verifying his employment from his supervising broker. He took 14 extra hours of CE, which won't count towards his next renewal. He will have to pay a fee for late renewal. - Correct Answer-He hasn't forgotten anything or done anything wrong. It's the end of the day and you're running late for dinner, so you decide to go to the ATM and deposit your client's earnest money check into your own account, and then transfer it to an escrow account the next morning. Why is this wrong? You can't commingle escrow funds with your own funds. You failed to make a record of the deposit. You failed to notify the client and the broker that you would be placing the funds temporarily in your own account. You should wait till the end of the week before transferring in to the separate account. - Correct Answer-You can't commingle escrow funds with your own funds. Davina has engaged Sean as her real estate agent to sell her property. According to statute, what does Sean owe Davina? Marketing Davina's property to seek a ready, willing, and able buyer Proprietary lease Resale certificate - Correct Answer-Disclosure packet In what parts of Virginia does the Virginia Residential Landlord and Tenant Act (VRLTA) apply? Only certain counties Only in participating suburban districts Only in urban areas with a population of more than 100,000 The entire state - Correct Answer-The entire state Which of these statements about septic systems and disclosure are true? All owners of properties with septic systems must disclose how much it costs to maintain and operate these systems. In Virginia, unlike other states, all septic systems must be disclosed. Septic systems that don't involve additional maintenance requirements and a waiver don't have to be disclosed. The presence of a septic system only needs to be disclosed if that system is malfunctioning. - Correct Answer-Septic systems that don't involve additional maintenance requirements and a waiver don't have to be disclosed. Cornelia just discovered that her house, which she's trying to sell, is located in a military accident potential zone (APZ). Does this fact affect her selling process? No, Cornelia just needs to fill out Virginia's standard property disclosure form. Yes, Cornelia needs to disclose this fact to potential buyers. Yes, it means that buyers can cancel the transaction after closing with no penalties. Yes, this will decrease Cornelia's asking price by 10%. - Correct Answer-Yes, Cornelia needs to disclose this fact to potential buyers. Janet lives with her cousin, Darla, but pays no rent. Which of the following is true? Darla cannot allow Janet to stay with her Darla must disclose all visible areas of mold within five days costs. Both his client and the seller claim that they should have this money. There are no related instructions in the contract. Which of the following actions can Tim take? Because Rita is his client, he should return the escrow money to her. Since it was Rita's money in the first place, he should give the money back to her minus his 15% account management fee. Tim should turn the matter over to the courts and let them make the decision about who gets the money. Tim should wait up to a year for the two parties to reach a written agreement; if it hasn't been reached by then, he should give half to each party. - Correct Answer-Tim should turn the matter over to the courts and let them make the decision about who gets the money. What is the difference between dual agency and dual representation? Dual agency means the licensee is acting as an independent contractor. Dual representation means the licensee is acting as a standard or limited service agent. Dual agency means the licensee is acting as a standard or limited service agent. Dual representation means the licensee is acting as an independent contractor. There is no difference. With dual agency, the licensee acts as a standard agent. Dual representation is when the licensee acts as a limited service agent. - Correct Answer-Dual agency means the licensee is acting as a standard or limited service agent. Dual representation means the licensee is acting as an independent contractor. It's January, and the pool at Roger's listing has been prepped for winter for several weeks. The homeowner assures Roger that it's in good working order. Roger has no reason to disbelieve the homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and the new owners call to complain that the pump doesn't work, and the pool drain appears to be clogged. What best describes what Roger has done? Fraud Negligent misrepresentation Roger didn't do anything wrong. Unintentional misrepresentation - Correct Answer- Unintentional misrepresentation Henry, a principal broker, has been found guilty of performing real estate transactions while his license is suspended. Which of the following statements about this situation is true? When performing maintenance work for one property owner When performing real estate activities for others, for compensation of any kind When performing real estate activities for others, without compensation When performing real estate activities for yourself - Correct Answer-When performing real estate activities for others, for compensation of any kind In addition to undivided loyalty, what other duty does a client give up when agreeing to a dual agent relationship? Accountability Advocacy Confidentiality Honesty - Correct Answer-Advocacy What is the maximum amount that can be awarded from the Real Estate Transaction Recovery Fund for all judgments against the licensee? $1,000 $10,000 $100,000 $20,000 - Correct Answer-$100,000 Which section of the Residential Contract of Purchase gives buyers who are purchasing a home built before 1978 the option to have their home inspected for lead- based paint hazards? The Lead-Based Paint Inspection section The Notice of Disclosure Pursuant to Virginia Residential Property Disclosure Act section The Notice to Purchaser(s) section The Seller's and Purchaser's Options section - Correct Answer-The Lead-Based Paint Inspection section Which section of the Residential Contract of Purchase explains to buyers where they can obtain information about sex offenders living in the area? The Miscellaneous section The Notice of Disclosure Pursuant to Virginia Residential Property Disclosure Act section The Notice to Purchaser(s) section A copy of the damage insurance policy A signed confidentiality agreement A signed copy of the written rental agreement The existing damage report - Correct Answer-A signed copy of the written rental agreement What purpose do restrictive covenants serve? Covenants are created to keep certain types of people out of the community. Covenants are merely aesthetic suggestions; residents don't actually have to comply. Covenants are state laws that are mandated and enforced through local enabling statutes. Covenants preserve a community's overall aesthetics, presentation, and its residents' way of life. - Correct Answer-Covenants preserve a community's overall aesthetics, presentation, and its residents' way of life. Which of the following statements about acts performed by licensees is true? Licensees cannot perform any services for others in the transaction, regardless of the type of act. Licensees can only perform services for others in the transaction if they represent that party. Licensees can perform services for others in the transaction without representing that party, but only if the acts are ministerial. Licensees must receive consent from their client if performing ministerial acts for others in the transaction. - Correct Answer-Licensees can perform services for others in the transaction without representing that party, but only if the acts are ministerial. Consuela is a real estate licensee, and she has three other licensees working under her supervision. What type of license does Consuela hold? Associate broker Broker Office manager Salesperson - Correct Answer-Broker