Virginia Principles of Real Estate Flashcards

Virginia Principles of Real Estate Flashcards Every resident broker must maintainA place of business in Virginia A broker who resides outside Virginia should keep a complete record of financial transactions conducted In a Virginia Office The Board does not have the power to discipline non-licensees Every employee or independent contractor who acts as a salesperson for a firm is required Have a sales or broker's license When should money be placed into escrow account? Upon ratification of the contract, money received must be placed in an escrow account by the end of the fifth business banking day.What is maximum payment to all claimants per licensee from Recovery Fund?

$100,000

How long does a purchaser of a condominium have to rescind on his contract?10 days A complete record of financial transactions conducted under authority of the principal broker's Virginia license shall be maintained in Place of business or designated branch office How much experience to become a broker?36 months of the last 48 months acting salesperson What would be addition requirements for a non-resident applicant?file an irrevocable consent to suits and services, agreeing to allow the Director of DPOR to accept service of any legal process or pleading on the license behalf. (be able to take legal action against someone outside of Virginia) How many hours of training in the first year of being license?30 hours When must the renewal application fee be paid? Fee must be received by the Board prior to the expiration date that appears on the face of the license Any ads used in marketing a time-share interest which include free gifts or prizes must clearly disclose retail value, conditions under which gift is offered, odds of winning the gift, expiration of the offer and a statement that the offer is made for the purpose of soliciting the purchase of time-share estates What is needed for an active broker renewal of license?24 hour education within two year period (16 hr mandatory and 8 hour elective) What has the Transaction Recovery Fund been established for Purpose of reimbursing a person or persons for monetary losses due to the misconduct of a licensee What is a referral agent?A person who does not engage in real estate activities such as listing and selling property.If a licensee does not pay the assessment to the Transaction Recovery Fund License will be suspended automatically How many principal brokers are there for each firm?Only one How many hours of training prior to licensing examination?60 hours Any inactive licensee may activate his license with a firm or sole proprietor Completing and submitting an activate form to the board with proper fee. CEUs must be completed within 2 years

prior to activation

Any inactive licensee for more than 3 years Must meet the current educational requirements (60 hours) and take the test A licensee can transfer from one firm to another Complete and submit a transfer application to the Board with proper fee. New broker has to sign the transfer application When does a license expire for salesperson? Expire biennially (every 2 years) on the last day of the month in which the license was issued.What is needed for the renewal of license in first renewal?30 hour education within first year of being a salesperson The governor appoints people to Real Estate Board forFour years What must an applicant submit to the Board before application?Fingerprint for background check All application fees arenonrefundable to the Board A sole proprietorship is not required to have a firm license, can operate under his individual license How much does each new licensee pay into the Transaction Recovery Fund?20 dollars What is an Agency?Every relationship in which a real estate licensee acts for, or represents, a person in a real estate transaction, unless a different legal relationship is intended and is agreed to as part of the brokerage relationship.Who is the licensee that has a brokerage relationship with both the buyer and the seller?Dual Agent The process by which money and/or documents are held by a disinterested third person until satisfaction of the terms and conditions have been achieved.Escrow account Payment out of the Transaction Recovery fund will not be made to Licensee, family of licensee of who judgement been made against, any financial institution or any company involved in construction or development of property What must happen when a licensee is discharge or terminated from a firm?Principal Broker must return the license to the Board within 10 calendar days of the status change How long should money be left in an escrow account?Until the transaction has been consummated or terminated, unless agreed to in writing by all principals to the transaction What homes need to be disclose the possibility of lead base paints?All constructed houses constructed prior to 1978 (target housing) even when the residence is free of lead-paint base hazards.What must a Broker do if their firm address changes?The Board must be notified in writing within 30 calendar days All initial applications for licensure must be made within12 months The Real Estate Board doespromulgate regulations, issue and renew licenses, enforce license law, suspend or revoke license, establish requirements for license, approves schools, determine fees, levy fines, and waive any education or experience requirements

What has to be done to reinstate a license within 30 days of being expired?Pay regular renewal fee and complete required CEUs General qualifications to become a real estate salespersonat least 18, high school diploma, good reputation, good standing, not have license suspended, revoked, or surrendered, not convicted, not violation of fair housing, and pass an exam within 12 months following all exam taking procedures.Any time a licensee is considered an "interested party" to a real estate transaction, license status must be disclosed in writing the contract. These required disclosures must be made upon "first substantive discussions about specific real property" What is maximum payment to anyone claimant from Recovery Fund?

$20,000

When can a Board waive any requirement relating to education and experience?When the broker or salesperson is found to have education or experience equivalent to that required.What has to be done to reinstate a license within the 31st day and the end of one year?Pay reinstatement fee and compete required CEUs What must happen when a principal broker is discharge or terminates their active status?The firm must notify the Board and return the license within

• Business days of the status change.

A licensee's active license must be maintained in The main office Requirements for licensee by reciprocity at least 18, exam substantially equivalent, sign statement understand Virginia laws, pass Virginia exam, good reputation, good standing, not suspended, revoked or surrendered, not convicted, not violated fair housing, and 12 out of last 36 months as salesperson or 36 our of last 48 as broker. Before first renewal salesperson has to complete 30 hours of training within first year and broker has to complete CEUs before next renewal.How long does a licensee have to respond to the Board?21 days If a licensee decides to sell their own home, all

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Owner is license What has to be done to reinstate a license after one year of expiration?Reinstatement is not possible under any circumstances.The former licensee must meet all education and examination requirements currently in effect and apply for a license as a new applicant.What has to happen if a licensee changes their name or home address?The Board must be notified in writing within 30 calendar days The Real Estate Board consist ofNine members (7 licensed and 2 citizen) What is needed for an active salesperson renewal of license?16 hour education within two year period (8 hr mandatory and 8 hour elective) Funds in an escrow account should never be paid directly to licensee Who is the person that has entered into a brokerage relationship?Client