Failed State Exam Questions Flashcards

Failed State Exam Questions Flashcards 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 propertyB.While showing a specific propertyC.At the time the closing is conductedD.At the time of contract ratification (agency disclosures) 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 Kerra the Consumer has filed a claim for payment from the Transaction Recovery Fund. Which of the following

statements must be incorrect?Select one:A.Kerra filed suit

against the local Association of RealtorsB.Kerra has obtained a judgement in courtC.Kerra claim cannot include interest in her damagesD.Kerra must wait until there is sufficient money in the Fund before payment (virginia transaction recovery fund) There is no requirement to sue the Association of Realtor--in fact, there is no reason to sue them if she's trying to get a TRF payment. All of the other answers are correct statements.The correct answer

is: Kerra filed suit against the local Association of Realtors

(disciplinary procedures) A licensee must respond to an "inquiry" (question or demand for non-financial records) within 21 days. Remember that this is different than a "request" from the Board. A "request" is for financial records, which must be presented to the Board within 10

days.The correct answer is: 21 days

When a salesperson transfers from one broker to another, it is the salesperson's responsibility to:Select one:A.Pay a license reinstatement feeB.Return his or her license to the BoardC.Apply for inactive status until the new broker has business cards printedD.None of the above (virginia transaction recovery fund) After the claimant has obtained a judgment, he must pursue all legal avenues for reimbursement. This would include a legal attempt to seize and sell all of the respondent's assets. Then, and only then, is the claimant eligible for payment from the Fund.The

correct answer is: The claimant must have gone after any

assets and property belonging to the debtor

Virginia Fair Housing Laws apply to:Select

one:A.Residential sales onlyB.Residential sales and

rentalsC.All real estate transactionsD.All real estate transactions with the exception of industrial sales (advertising) The question did not say the offer had been accepted, only that he intended to accept it. As such, this is not a "bait and switch" and the ad may run as planned.The

correct answer is: The developer may publish the ad as

planned Hearings before the Virginia Real Estate Board must be held in accordance with the:Select one:A.Virginia Association of Realtors RegulationsB.Uniform Commercial Code (UCC)C.Administrative Process ActD.Supreme Court Judicial Procedures Act Broker Tom can remove money from his escrow account in

all of the following circumstances, except:Select

one:A.When a court orders the broker to do soB.With

written permission of all parties to the contractC.Rescission of the contract by the sellerD.Termination of the contract, by performance (escrow accounts) The only listed situation where a broker CANNOT remove escrow funds is if there were a unilateral rescission--which means the contract was breached. The parties might have accounted for that in the original sales contract (if so, the broker can follow the terms of the contract). However, disputes usually require a successful interpleader or court order before the broker may release

funds from escrow.The correct answer is: Rescission of the

contract by the seller

(virginia real estate board) Of the items listed, the only thing that the Board has any involvement in are the education and testing requirements. The Board may choose to waive experience or education requirements for a candidate who applies for a license by reciprocity. They may also waive/reduce CE requirements in cases of certified illness or undue hardship. However, the licensee still needs to pass the Virginia Law portion of the licensing

exam.The correct answer is: Waiving education or

experience requirements Jon and Julie enter into a valid sales contract. Pursuant to state law, Jon gathers information about the property condition (including appliances, structural elements, and exterior items). However, Jon gets tired of gathering information and instead decides to sell his home "as is."

Can Jon do this without violating the law?Select one:A.Yes,

as long as Jon completes the necessary paperworkB.No, Jon must disclose each defectC.Yes, as long as a buyer agreesD.No, Jon must discover and disclose each defect A salesperson obtains a listing and advertises the property

as follows: "Spacious 3 bdrm., ideal loc. near schools,

shops, and trains. Seller anxious to move. Deal direct w/ agent and save. Call Paula after 5 at 123-4567." Why is

this ad in violation of Board regulations?Select one:A.The

price is not mentionedB.The broker's name is missingC.There is no property addressD.Financing options are not shown (advertising) All ads for the sale of property MUST include the name of the brokerage firm. A salesperson cannot advertise a listed property with only his or her name.The

correct answer is: The broker's name is missing

The unit owners of a condo project are unhappy with their association's management. As a result, they want to amend the bylaws. What is the minimum percentage of affirmative votes to change the bylaws?Select

one:A.33.33%B.66.66%C.75%D.A simple majority

(virginia condominium act) The declarant sets up the form of governance and voting allocations in the condominium instruments and POS. These bylaws can be changed by a simple majority vote of the unit owners. Note that a minimum amount of the voting interest must be present at the meeting before such a vote can begin.The correct

answer is: A simple majority

Harry is a broker. He works out a deal with Larry (a developer), Darrell (a contractor), and Tony (a mortgage banker). The deal states that Harry will sell all of the houses that Darrell built on Larry's land. After that, Tony would handle the mortgages of any buyers through his bank. Harry sells three houses, then runs off with all the funds. Larry, Darrell, and Tony all file claims for payment from the Transaction Recovery Fund. Who is most likely to

collect?Select one:A.Larry, the developerB.Darrell, the

contractorC.Tony, the mortgage bankerD.No one (virginia transaction recovery fund) People who regularly deal in real estate transactions are not eligible for payment from the Transaction Recovery Fund. This includes real estate agents, bankers, developers, and contractors.The

correct answer is: No one

Every Virginia licensed broker who is also a Virginia resident MUST:Select one:A.Maintain an office in the state of VirginiaB.Maintain an escrow account in an insured depository in the stateC.Identify his place of business with an appropriate signD.All of the above Resident brokers must maintain an office in Virginia.However, only brokers who receive escrow funds must establish escrow accounts. Similarly, there is no requirement that firms post a sign outside their place of business. However, if a firm does post a sign, the advertising regulations specify that it must include the firm's

licensed name.The correct answer is: Maintain an office in

the state of Virginia (virginia landlord-tenant act) Major changes to the house rules require WRITTEN agreement from the tenant.

Although landlords can impose automatic renewal clauses, they cannot make material changes (ex. increase the rental amount) without receiving written agreement from the

tenant.The correct answer is: May require a cash payment

within 5 days of any checks that bounce Ben and Barry enter into a valid sales contract, which specifies that the trash compactor will be in working order.

Ben signs a disclaimer/waiver about the property, which states that he is selling "as is" and gives no opinion on the condition of specified systems. When Barry takes possession of the house, the trash compactor is not operational. Does Barry have a cause of action against

Ben?Select one:A.No, because Ben sold the home "as

is"B.Yes, because Ben's disclosure was defectiveC.Yes, because Ben is in breachD.No, because Barry took possession (licensing requirements) Regular, salaried employees of a property owner can sell or lease the property without needing a license. This is true because owners are allowed to sell their own land without being licensed.The correct

answer is: May allow unlicensed employees (on a regular

salary) to sell the tracts All of the following statements about time-share interests are true, EXCEPT:Select one:A.When a time-share is resold, the buyer has 5 days to rescind the contractB.The Association is required to provide a resale certificate to the buyerC.The Association may charge $100 for the resale certificate and related documentsD.Once a buyer has closed a time-share contract, all rescission rights are waived Ben and Jerry are communicating for the first time via instant messages. Ben is a licensee and Jerry is interested in locating property in Ben's area. Ben suggests that he may be able to help. Which of the following disclosures

must Ben make?Select one:A.Ben must disclose his firm

name, city, and stateB.Ben must disclose his usernameC.Ben must disclose his email addressD.Ben is not required to make any disclosure because instant messages are not advertisements Ben must disclose his firm name, city, and state since Board regulations now cover instant messages. These disclosures must be viewable on the main page or no more than one click away from the main page.The correct

answer is: Ben must disclose his firm name, city, and state

If the Board honors a claim and authorizes payment from the Transaction Recovery Fund, the claimant subrogates his rights to the Board. The Board now has the right to:Select one:A.File a claim against to the licensee to recover the amount paid from the FundB.File a claim against the licensee to recover the judgement amount awarded by the courtC.Only to revoke the license, as provided by Virginia lawD.Sentence the licensee to a prison term of no more than 12 months (virginia transaction recovery fund) The Board can only seek to recover the amount paid from the Fund on behalf of the licensee. The court ordered judgment could include

other damages.The correct answer is: File a claim against

to the licensee to recover the amount paid from the Fund What is the maximum amount that can be paid from the Transaction Recovery Fund for claims against the same licensee during a two year period?Select

one:A.$10,000B.$20,000C.$50,000D.$100,000

(virginia transaction recovery fund) The maximum amount that any one person can claim from the Fund is always $20,000. However, if multiple claimants file against the licensee from a single transaction, the maximum paid to all claimants would be a total of $50,000 during any 2-year period. If the licensee is involved in multiple transactions, the maximum that the Fund will pay to all claimants is

$100,000 during any 2-year period.The correct answer is:

$100,000