Real estate chapter 1.11 Flashcards

Real estate chapter 1.11 Flashcards Who is not eligible to receive payment from the fund?a) A wronged residential property ownerb) A person whose business involves the construction/development of real propertyc) A broker's second cousind) A commercial property owner who suffered a loss due to a licensee's dishonesty

b) A person whose business involves the

construction/development of real property How much must each new licensee pay into the Virginia Real Estate Transaction Recovery Fund?a) $10b) $20c) $50d) $100

• $20

If the Fund balance is higher than $2,000,000 at the end of the fiscal year,a) the state will open up an overflow account.b) the amount assessed to new licensees will be reduced temporarily.c) the licensees who paid into the fund that year will receive a prorated refund.d) the funds over that amount will be transferred into the Virginia Housing Partnership Fund.

• the funds over that amount will be transferred into the

Virginia Housing Partnership Fund..Who can receive a judgment from the Fund?a) The spouse of the person against whom the judgment was madeb) A residential property ownerc) A brokerd) A lender

b) A residential property owner

Which statement about the Recovery Fund is TRUE?a) It pays punitive damages.b) It cannot include attorneys' fees or court costs.c) It pays actual losses, plus interest.d) It pays only actual losses.

d) It pays only actual losses.

Under the Virginia Real Estate Transaction Recovery Fund, if there is reason to believe there will be multiple claims involving one regulant, payment of claims will be delayed for a maximum of how long?a) Three monthsb) Six monthsc) One yeard) Two years

c) One year

If a licensee has his license revoked because of a fund payout, when will he be eligible for a new license?a) When he has repaid the judgment amountb) After a two-year waiting periodc) Two years AFTER he has repaid the judgment amountd) When he has repaid the judgment amount, PLUS interest at the rate determined by the Fund when the payment was made.

d) When he has repaid the judgment amount, PLUS

interest at the rate determined by the Fund when the payment was made.A single claim is limited to what amount?a) $10,000b) $20,000c) $50,000d) $75,000

• $20,000

What is the Transaction Recovery Fund's minimum balance?a) $100,000b) $400,000c) $600,000d) $2,000,000

• $400,000

Which law requires that the owner provide an affidavit to the purchaser or lender stating that all persons performing

labor or furnishing materials in connection with the property within 120 days prior to settlement have been paid in full or to provide the name, address, and amount claimed by each person performing labor or furnishing materials?a) Virginia Non-Stock Corporations Actb) Megan's Lawc) Mechanic's Lien Noticed) New Construction Act

c) Mechanic's Lien Notice

Multiple claims involving one regulant may not exceed what amount per 2-year period, ending June 30 of even-numbered years?a) $30,000b) $50,000c) $75,000d)

$100,000

• $100,000