State Practice Exam Flashcards

State Practice Exam Flashcards Two brokers are involved in a dispute over a commission split. Which of the following entities could become involved

in settling the matter?Select one:A. A court having

jurisdiction over the brokersB. The Virginia Real Estate BoardC. The Director of the Department of Professional and Occupational Regulation (DPOR)D. The enforcement branch of DPOR

• A court having jurisdiction over the brokersOf the

choices presented, only a court could become involved in a commission dispute between brokers.The correct answer

is: A court having jurisdiction over the brokers

Which of the following actions is NOT a violation of Virginia

real estate laws and regulations?Select one:A. Failing to

disclose to buyers that there were termites in the propertyB. Failing to disclose adverse zoning that affected the propertyC. Failing to inform the seller of the ethnic character of a buyerD. Failing to advise a buyer of an offer, in the case of a buyer's agent

• Failing to inform the seller of the ethnic character of a

buyer 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?Select

one:A. Withhold a portion of the purchase price until the

pool is completeB. 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 transactionD. 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" Every Virginia resident who is also licensed as a broker MUST:Select one:A. Maintain an office in the state of VirginiaB. Maintain an escrow account at an insured depository in the stateC. Identify his place of business with an appropriate signD. All of the above

• Maintain an office in the state of Virginia

Craig the Broker got his license two years ago, so it is up for renewal. Unfortunately, Craig has been so busy that he hasn't taken any continuing education yet. What will happen to Craig's license if he doesn't complete the

required courses before renewal?Select one:A. His license

is null and voidB. He can pay a fine to extend the renewal dateC. His license will expireD. He will have to retake the licensing exam

• His license will expireLicenses that are not timely

renewed will expire (unless the Board has granted an exemption for certified illness or undue hardship). Craig did not meet these exemption standards. Therefore, once expired, the licensee cannot engage in regulated activity.Expired licenses may be reinstated for up to one year following expiration, though the Board has the power to deny any reinstatement application (as with renewal and

initial licensure).The correct answer is: His license will

expire Newly licensed brokers must complete:Select one:A. 30 hours of post-license educationB. 45 hours of post-license educationC. 16 hours of continuing educationD. 24 hours of

continuing education

• 24 hours of continuing educationPost license education

is ONLY required for newly licensed salespersons. Newly licensed brokers must complete 24 hours of continuing

education.The correct answer is: 24 hours of continuing

education A prospective buyer enters a broker's office and is escorted into the conference room. After the broker has financially qualified the buyer, they begin to review available properties that meet the buyer's wants, needs, and financial limitations. When is the broker required to disclose

the agency relationship?Select one:A. When determining

the financial qualifications of the buyerB. When the buyer expresses an interest in a particular piece of propertyC.When the buyer has identified a property that is acceptableD. Before the broker and buyer begin to discuss any specific property

• When the buyer expresses an interest in a particular

piece of property Which person would require a license, issued by the Real

Estate Board?Select one:A. The executor of an estateB. An

auctioneerC. An employee of a broker, who negotiates leasesD. An individual employed by the owner of rental property

• An employee of a broker, who negotiates leasesA

person must have a license if he negotiates leases on behalf of another. However, if that person were an employee of the owner (NOT the broker) and was performing acts in the regular management that property, then no license would be required. Executors and auctioneers are also exempt from the license law.The

correct answer is: An employee of a broker, who negotiates

leases A salesperson contacts a neighborhood FSBO about listing the house with her firm. When is agency disclosure

required?Select one:A. At the first meeting between the

FSBO and the agentB. Before the FSBO agrees to list his house with the agentC. When the agent presents the first offer from a prospective buyerD. Never since disclosure is only required to buyers, not sellers

• Before the FSBO agrees to list his house with the

agentIf the agent gets the FSBO to execute an agency agreement, agency may be established at the first meeting.However, this is not guaranteed. Whatever the timing, agency disclosure is required prior to entering into a

brokerage relationship with the client.The correct answer is:

Before the FSBO agrees to list his house with the agent If the named licensee is involved in multiple transaction violations, what is the maximum that a person may collect

from the Transaction Recovery Fund?Select one:A.

$10,000B. $20,000C. $100,000D. None of the above

B. $20,000

The Virginia Real Estate Board is empowered to do all of the following actions, EXCEPT:Select one:A. Establish standardized listing and sales contract agreementsB.Administer the Fair Housing ActC. Administer the Transaction Recovery ActD. Administer the Residential Property Disclosure Act

• Establish standardized listing and sales contract

agreementsThe Real Estate Board does NOT get involved with standardization of forms used in the industry, but they are involved in administrating the other listed laws.The

correct answer is: Establish standardized listing and sales

contract agreements Which of the following statements must be true about a real

estate salesperson's license?Select one:A. It is mailed to

the licensee for delivery to the employing brokerB. It is prominently displayed in the main office of the salesperson's firmC. It is prominently displayed in the branch office where the salesperson worksD. It is kept in

the custody of the employing broker

• It is kept in the custody of the employing broker

Juan obtains his license on May 3rd. How much continuing

education must Juan complete?Select one:A. 8 hours

within the first yearB. 16 hours within the first two yearsC.30 hours within the first yearD. 30 hours before he can actually receive his license

• 30 hours within the first year