State Exam

Front 1

I am the person who hires and authorizes an agent. I am the broker who hires the salespeople. I am the seller who hires the broker. who am i?

Back 1

Principal

Front 2

I am authorized to perform a single act for a principal. I act under detailed instructions. I cannot bind the principal to any contract. If i am hired by a seller, I am limited to finding a ready, willing, and able buyer for the property. Who am I?

Back 2

Special Agent (usually the broker, assigned to find a ready, willing, and able buyer.)

Front 3

I am empowered to do anything the principal could do personally. My authority to act on behalf of the principal is essentially unlimited. Generally, I'm not a real estate licensee. Who am I?

Back 3

Universal Agent (remember "able to do anything the principal can do")

Front 4

I am a Facilitator, transactional broker, or contract broker. I am a go-between for a buyer and seller. I help both parties with the transaction. I do not represent either party's interests. who am i?

Back 4

Non Agent

Front 5

Under the terms of a listing agreement, the broker is considered to have earned the commission if:

Back 5

the broker is licensed, produces the buyer, and has a valid contract with the seller.

Front 6

Under the terms of a listing agreement, the broker is considered to have earned the commission if:

Back 6

The broker is licensed, produces the buyer, and has a valid contract with the seller.

Front 7

The word "equity" as applied to real estate means which of the following?

Back 7

The difference between the appraised value of the property and the current loan balance.
(APPRAISED value/current loan balance)

Front 8

A "listing" is

Back 8

a contract for the professional services of the broker.

Front 9

The common law concept of agency is based on:

Back 9

The master-servant relationship under English rules, traditions, and court decisions.

Front 10

Supply and Demand is an economic principle based on:

Back 10

uniqueness and mobility

Front 11

Real property is best understood as including:

Back 11

land, improvements, and rights.

Front 12

1. A customer does not have an agency relationship with the broker.

2. A broker is required to provide fairness to all parties.

3. The principal is the person who employs the broker.

Back 12

Statements about Agency:

Front 13

A broker only owes a fiduciary duty in all real estate transactions to:

Back 13

the client. Other parties in relation to the broker are either "non agent scenarios" or "facilitator scenarios".

Front 14

The purpose of license law includes all the following:

Back 14

-Establish basic requirements for obtaining a license.
-Define activities which require a license.
-Describe and enforce acceptable standards of conduct.

Front 15

The major benefit for most homeowners is that:

Back 15

The IRS allows an interest and tax deduction on the 1040.

Front 16

A SALESPERSON obtains a listing of residential property. After the listing is registered with the broker, the salesperson shows the property to a family who came into the office in search of a home. A disclosure of agency must be given to:

Back 16

The buyer (family needs disclosure)
(Fiduciary responsibility to seller)

Front 17

A personal assistant to a real estate salesperson:

Back 17

performs many small but vital details in running the business.

They cannot:
-hold an "open house" and negotiate a contract on behalf of the agent.
-answer telephone questions concerning listings.

Front 18

Emblements:

Back 18

Are plantings that require annual cultivation.

Front 19

The six common law fiduciary duties are:

Back 19

-care
-obedience
-accounting
-loyalty
-disclosure
-confidentiality

Front 20

Homeowner Sam placed an ad in the local newspaper stating his house is "for sale". he gave a listing to a broker who placed the property in the MLS and it was shown by several agents. A buyer saw the ad, inspected the property and bought the house directly from the owner. At settlement, a debt for a commission was charged to the seller. What kind of listing did the broker have?

Back 20

Exclusive right to sell

Front 21

Exclusive right to sell

Back 21

As long as the house sells (no matter by whom) the broker gets paid.

Front 22

Exclusive agency

Back 22

The specific agent has to sell the house in order for the broker to get paid.

Front 23

A licensed salesperson

Back 23

may carry out only those responsibilities assigned by his employing broker.

Front 24

Much of our wealth is in real estate. The economic characteristics of real estate include all the following:

Back 24

Scarcity
Area Preference
Improvements

Front 25

A type of listing that is prohibited in VA

Back 25

Net Listing. The REB regulations specifically prohibit these under 18 VAC 135-20-280(5).

Front 26

A potential buyer signs an "exclusive right to represent buyer" agreement with a real estate broker who designates one of his salespersons to represent the interest of the buyer. The salesperson concludes that one of the company listings would meet the buyer's requirements and shows the buyer that property. under these circumstances:

Back 26

The broker is a dual agent.

Front 27

A broker needs to distingish between a customer and a client. That distinction is best described as:

Back 27

A customer has no agency agreement with the broker; the client does.

Front 28

A listing agreement may be terminated:

Back 28

if the title to the property is transferred by operation of the law.

Front 29

An agency relationship is created by all of the following:

Back 29

-By an expressed written agreement.
-By implication.
-By a listing.

NOT BY THE PAYMENT OF COMMISSION

Front 30

The listing price is an important factor in marketing property. That price is determined by:

Back 30

The SELLER

Front 31

All of the following are prohibited under the antitrust laws:

Back 31

-Price fixing.
-Competing property management companies' agreeing to standardize management fee.
-Competing brokers allocating ("Designating, Setting") markets based on the values of homes.
-Real estate companies agreeing NOT to cooperate with a broker because of the fees that broker charges.

(it is legal for brokers to set a company commission schedule.)

Front 32

When a real estate broker is responsible for a chain of events that results in the sale of one of the brokers' CLIENT'S properties, this is referred to as:

Back 32

Procuring cause.

Front 33

To be entitled to a sales commission, an individual must be:

Back 33

-A licensed real estate broker.
-The procuring cause of the sale (open listing).
-Employed by the buyer or the seller under a valid contract.

Front 34

Salesperson Norman wants to be classified as a qualified real estate agent- the equivalent of holding independent contractor status. All the following are requirements for him to meet:

Back 34

-Receive substantially all of his income from the brokerage based on production, not time worked.
-Hold a current real estate license.
-Have a written agreement with his broker stating that he will not be treated as an employee for federal tax purposes.

Front 35

There is a spectacular house that salesperson Ronald from Weichert Realty has been trying for several weeks to list for sale. The owners have been interviewing salespeople from different firms. They tell Ronald that Long and Foster Properties will charge a 2% lower commission for selling the house. What should Ronald say to the owner in order to get the listing?

Back 35

"Weichert Realty provides excellent services to market their seller's properties."

Front 36

Broker Smith is helping a buyer and seller fill out a sales contract, but is not representing either party. Broker Smith is a(n):

Back 36

Transactional Broker. (He helps both the buyer and the seller with paperwork and formalities in transferring ownership of real property, but who is not an agent of either party. (Fee-for-service aka piecemeal)

Front 37

Unless some other written agreement has been made, broker Hugo will usually receive his brokerage commission when:

Back 37

the transaction is closed.

Front 38

"Fee-for-service" means

Back 38

Arrangement with a consumer that asks a licensee to perform specific real estate services for a set fee. aka "piecemeal".

Front 39

The National Do Not Call Registry provides that:

Back 39

Consumers who have made an inquiry to a licensee may be contacted up to 3 months later.

Front 40

Most homeowners' insurance policies contain which of the following clauses?

Back 40

A coinsurance clause (a clause in insurance policies covering real property that requires the policy holder to maintain fire insurance coverage generally equal to at least 80% of the property's actual replacement cost.

Front 41

In designated agency:

Back 41

-The BROKER could be a dual agent.
-The broker can choose an agent in the office to represent the buyer.
-The broker may appoint an agent to negotiate for the seller.

Front 42

A real estate broker's responsibility to keep the principal informed of all the facts that could affect a transaction is the duty of:

Back 42

Disclosure

Front 43

A broker is permitted to represent both the seller and the buyer in the same transaction when:

Back 43

both parties have been informed and agree to the dual representation.

Front 44

Although unethical, it is considered a lawful practice in real estate brokerage:

Back 44

Exaggerated statements about the property.

Front 45

As an agent for the seller, a real estate broker can:

Back 45

solicit an offer to purchase the property from a prospective buyer.

Front 46

A seller has listed a home with a broker for $190,000. The listing broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. the buyer offers $185,000 and the seller accepts. In this situation:

Back 46

The broker has violated the agency relationship with the seller.

Front 47

It is the duty of an agent to disclose to the principal every material step taken in the transaction of the principal's business. this is because the:

Back 47

agent has a fiduciary obligation to the principal.

Front 48

Upon discovering a latent defect in a property, Broker Alice should discuss the problem with seller Juan and then:

Back 48

Inform any prospective buyers of the defect.

Front 49

The type of agency practiced in which there is only ever one client is:

Back 49

single agency

Front 50

A salesperson who is employed by a broker told a prospective buyer that a house the buyer was looking at is "the best house in the area". because of this statement:

Back 50

the salesperson was practicing puffing.

Front 51

A salesperson sells buyer Fred's property listed by another brokerage firm in the multiple listing system. the salesperson has been working with Fred for many months but does not have an agency contract with him. this salesperson has fiduciary obligations to who?

Back 51

The seller.

Front 52

Broker Joan shows properties listed for sale with her company to prospect Karl. Karl has refused buyer representation. Karl is Joan's:

Back 52

Customer.

Front 53

Broker Sven, in the course of selling a home to customer Nancy, told her that the foundation was "solid as a rock" when he knew for a fact that it was slowly sinking into the landfill on which it was built. Now that the sale is settled, what is likely to happen to Sven?

Back 53

-Revocation of his license for failure to disclose a material fact.
-Being charged with intentional misrepresentation.
-Suit to recover money damages experienced by Nancy Due to basement leakage.

Front 54

Broker LaRue's newest salesperson, Shandra, lists a unit in a condominium building for sale. In this transaction, Shandra:

Back 54

Acts on behalf of LaRue, her broker.

Front 55

A broker who represents a seller under an exclusive-agency listing recieves two offers for the property at the same time, one from one of the broker's salespeople and one from the salesperson of a cooperating broker. What should the broker do?

Back 55

Submit both offers at the same time.

Front 56

A broker has an exclusive-right-to-sell listing on a building. the owner is out of town when the broker gets an offer from a buyer to purchase the building providing the seller agrees to take a purchace money mortgage. the buyer must have a commitment from the seller before the seller is scheduled to return to the city. under these circumstances:

Back 56

the broker must obtain the signature of the seller to effect a contract.

Front 57

A property manager is hired to manage a property while the owner is overseas for two years. The property manager is a(n):

Back 57

General agent (one who is authorized by a principal to represent the principal in a specific range of matters.)

Front 58

adaptations of property specifications to suit tenant requirements are:

Back 58

tenant improvements

Front 59

If a tenancy by the entirety is ended due to a divorce the former spouses, if not specified otherwise, would automatically hold title as:

Back 59

Tenants in common

Front 60

The "Wet Settlement Act" requires that recordation and distribution of funds take place within how many days?

Back 60

2 days

Front 61

How long does a license candidate have to apply for a license once the licenseing exam is passed?

Back 61

12 months

Front 62

In VA, a listing agent owes the seller all of the following duties:

Back 62

-Disclosure to the seller all material facts about the transaction.
-Confidentiality of all personal and financial information received from their client.
-presentation of all written offers and counteroffers.

Front 63

A licensee is selling his/her own home For Sale By Owner. The sign in the front lawn must contain:

Back 63

Information that the owner is a licensee.

Front 64

Which of the following classes is protected under the VA fair housing law but not the federal fair housing law?

Back 64

Elderliness

Front 65

The maximum fine for a single violation of regulations that can be imposed on an agent by the REB is:

Back 65

$2,500

Front 66

You are listing a property in which one of the owners recently committed suicide. Which of the following is true?

Back 66

the suicide need not be disclosed to buyers

Front 67

Which of the following "roommate wanted" ads would be illegal under the VA Fair Housing Laws?

Back 67

Christian Females only

Front 68

According to the VA landlord tenant act, a tenant who vacates a property in good standing, after 21 months of occupancy, is entitled to how many months interest on the security deposit?

Back 68

21 months

Front 69

A person who has had a license on inactive for over 3 years will be required to do which of the following to reactivate?

Back 69

meet the current educational requirement and pay the reactivation fee.

Front 70

A broker who is found to have violated the VA Fair Housing Laws would be subject to a maximum civil penalty of: (civil case-first & subsequent offense)

Back 70

$50,000-$100,000

Front 71

If an owner agrees to pay a 7% commission to a real estate broker, if the broker sells the property. The home owner has established the same agreement with 3 other brokers, then this agreement:

Back 71

may allow for a "for sale" sign to be placed on the property.

Front 72

A broker could be found guilty of commingling by failing to remove from an escrow account, funds they earned as part of a transaction, within how many days following settlement?

Back 72

180 days

Front 73

The Real Estate Board is responsible for administering the following:

Back 73

VA condominium act
VA real estate cooperative act
VA time share act

Front 74

The following are permitted under VA law:

Back 74

-a local jurisdiction may have added additional protected classes to the fair housing laws.
-a local jurisdiction taxing agent commissions.
-a local jurisdiction adding regulations that govern agent behavior.

NOT PERMITTED: local jurisdiction setting an approved commission rate.

Front 75

A person holding an active broker's license in VA who is not the principal broker is:

Back 75

An Associative broker

Front 76

A licensee must disclose his/her license status in WRITING to all parties to a contract in the following situations:

Back 76

-when purchasing a property themselves.
-when assisting a relative in a purchase.
-when a principal in a firm that owns and is selling a shopping center.

EXCEPT: when assisting a long term friend in the purchase of the property.

Front 77

Regarding the VA Fair housing laws:

Back 77

A larger security deposit may be charged on a larger rental unit.

Front 78

Financial records of escrow accounts must be maintained for:

Back 78

3 years

Front 79

In VA, property assessments for tax purposes are to be based on:

Back 79

Fair Market Value

Front 80

Board regulations require that agency disclosure be made to buyers and sellers:

Back 80

during initial contact

Front 81

The license of a real estate salesperson must be:

Back 81

publicly displayed in the main office.

Front 82

The surviving spouse of someone who dies testate may be eligible for:

Back 82

an elective share of the augmented estate.

Front 83

Usury Laws in VA set the maximum interest rate on loans secured by a first deed of trust on real estate at:

Back 83

There is no limit

Front 84

The sign on a real estate company must:

Back 84

have some words or phrase that lets the public know that the office is a real estate business.

Front 85

How long after the work is done may a mechanic wait before filing a mechanics lien?

Back 85

no more than 90 days

Front 86

The REB (actual board) has:

Back 86

9 members. 7 are professionals and 2 consumers.

Front 87

In addition to other requirements, an unlicensed nonresident who wishes to obtain a VA real estate license:

Back 87

must file an irrevocable consent to suits and services.

Front 88

Routine services that an agent provides to the customer are referred to as:

Back 88

Ministerial acts

Front 89

If the board recieves an application for a partnership brokers license from a real estate broker and a real estate salesperson, each with over 10 years experience, the board will:

Back 89

reject the application because only brokers and/or non licensed persons may form this type of partnership

Front 90

If a licensee has had their license revoked because their behavior caused a payment to be made from the Transaction Recovery Fund:

Back 90

The licensee must pay the fund back, plus interest, before he/she may apply for a new license.

Front 91

All of the following are protected under the VA fair housing laws:

Back 91

-a Canadian with a one year job assignment in Richmond.
-a father who has visitation rights with his 2 children on weekends.
-a single mother with 3 children who wishes to rent a 2 bedroom apartment.

Except: A captain on active military duty.

Front 92

An applicant for a broker license must have been active as a salesperson for a minimum:

Back 92

3 years (36 months)

Front 93

A principal broker may be disciplined for the actions:

Back 93

of an agent only if the principal broker knew or should have known of the unlawful action.

Front 94

Referral fees may be paid:

Back 94

to any broker regardless of where those brokers are located.

Front 95

The first step in the procedure when the REB receives a complaint is:

Back 95

The REB reviews the complaint to determine if it has jurisdiction.

Front 96

Normally the seller property condition disclosure would be provided to the buyer before the contract of sale is ratified. If the buyer does not receive the disclosure or disclaimer prior to contract ratification then the following is true:

Back 96

-The buyer may cancel the contract any time up until settlement if the never receive the disclosure/disclaimer and do not apply for a mortgage.
-They may terminate the contract up until the time they make application for a mortgage loan and the loan application contains a notice that their right to terminate will end.
-The buyer may terminate the contract within 3 days of having the disclosure/disclaimer hand carried to them.

NOT ALLOWED: the buyer may terminate the contract no matter when they received the disclosure.

Front 97

All of the following are exempt from the seller property condition disclosure/disclaimer requirements:

Back 97

-The seller of a new home
-The sale of a property at foreclosure
-A voluntary transfer between co-owners.

Except: a seller who is recognized as having a physical disability.

Front 98

A licensee selling his/her own property as a FSBO:

Back 98

is subject to the rules of the REB

Front 99

Licensees are barred from receiving unapproved kickbacks from a third parties. these would include all the following:

Back 99

-Sharing in the fee your buyer pays to a home inspector.
-Recieving a finders fee from a settlement attorney when you refer a buyer to them.
-Receiving a free 3 day vacation at the beach for having 5 buyers use a particular lender.

EXCEPTION: Receiving a referral fee from another broker for recommending a buyer to them.

Front 100

A branch office is required to display:

Back 100

the branch office license.

Front 101

how many days after a salesperson's license expires can reinstatement occur without monetary penalty?

Back 101

30 days

Front 102

How long is the buyer's right to rescind the contract when a timeshare is RESOLD (not the original sale)?

How many days does a purchaser have to rescind the contract at the initial public offering of a time share?

Back 102

-5 days

-7 days

Front 103

When a real estate firm changes its trade name, the board must receive WRITTEN notification of the change within:

Back 103

30 days

Front 104

Real estate for sale ads placed by a real estate company must contain:

Back 104

The brokers name

Front 105

In VA, a salesperson may conduct a settlement the following situation:

Back 105

-if the salesperson is a member of the VA Bar

Front 106

The developer remains responsible for the management of a condominium until what percentage to the units are sold?

Back 106

75%

Front 107

In branch offices:

Back 107

the office manager must be a broker.

Front 108

What penalty is a licensee subject to, if a payment is made from the Transaction Recovery Fund bc of the action of that licensee.

Back 108

the license is automatically revoked.

Front 109

A couple feels that they have been discriminated against by a landlord due to their place of national origin. they have filed a complaint with the REB. the burden of proof falls on the:

Back 109

Fair Housing Office

Front 110

A salesperson puts his/her license in referral.

Back 110

he/she is considered to have an active license

Front 111

If the balance of the transaction recovery fund falls below the minimum, it may be necessary to assess each licensee an additional fee. that fee:

Back 111

can be no more than $20 in any biennial license period.

Front 112

A tenant's security depisit-if not forfeit due to damages- must be returned to the tenant within how many days after the tenant vacates the property?

Back 112

45 days

Front 113

Violations of VA fair housing laws:

Back 113

-not showing ground floor condominiums to a single woman bc of your concern for her safety.
-only showing houses on dead end streets to a couple because they have a deaf child who cannot hear traffic.
-only showing ramblers to an elderly man who cannot use stairs.

NOT A VIOLATION: refusing to rent your investment property to a lawyer.

Front 114

Upon expiration of a lease, the lessor:

Back 114

may withhold all or part of the deposit, with cause.

Front 115

Va fair housing law protects people starting at age?

Back 115

55

Front 116

renewal fees must be paid while:

Back 116

having an inactive status

Front 117

A real estate advertisement in a publication whose subscribers are mainly Asian is a violation of:

Back 117

NOTHING

Front 118

Stigmatized properties would be a property that "suffers" from:

Back 118

-suicide in the house
-property is haunted
-their was a murder in the house
-previous owner had a communicable disease

-disclosure is NOT required in VA

however, disclosure about a client who has a stigmatized attribute can result in contract cancellation but no disciplinary actions will be held against the agent.

however, the only topic of disclosure that is specifically prohibited is ANY discussion of HIV AIDS. (if info is disclosed regarding persons infected with HIV AIDS, a licensee could be in violation of fair housing laws and federal privacy act)

Front 119

A security deposit (held by a broker), charged as part of the rental transaction:

Back 119

must be placed in an escrow account

Front 120

means any broker or salesperson who is under the supervision of a principal or supervising broker of a firm or sole proprietor and who is performing those activities defined in §§54.1-2100 and 54.1-2101 of the Code of Virginia.

Back 120

"Active"

Front 121

means active licensure with a licensed real estate firm or sole proprietorship in performing those activities as defined in §§54.1-2100 and 54.1-2101 of the Code of Virginia for an average of at least 40 hours per week. This requirement may be waived at the discretion of the board in accordance with §54.1-2105 of the Code of Virginia.

Back 121

"Actively Engaged"

Front 122

means anyone who holds an active real estate license.

Back 122

"Actively engaged in the brokerage business"

Front 123

means any individual licensee of the board holding a broker's license other than one who has been designated as the principal broker.

Back 123

"Associate Broker"

Front 124

means a person who has entered into a brokerage relationship with a licensee as defined by §54.1-2130 of the Code of Virginia.

Back 124

"Client"

Front 125

means any sole proprietorship (nonbroker owner), partnership, association, limited liability company, or corporation, other than a sole proprietorship (principal broker owner), which is required by 18VAC135-20-20 B to obtain a separate brokerage firm license. The firm's licensed name may be any assumed or fictitious name properly filed with the board.

Back 125

"Firm"

Front 126

refers to any broker or salesperson who is not under the supervision of a principal broker or supervising broker, who is not active with a firm or sole proprietorship and who is not performing any of the activities defined in §§54.1-2100 and 54.1-2101 of the Code of Virginia.

Back 126

"Inactive Status"

Front 127

means a licensee who acts for or represents a client other than as a standard agent and whose duties and obligations are governed by a written contract between the licensee and the client.

Back 127

"Independent Contractor"

Front 128

means real estate brokers and salespersons as defined in Chapter 21 (§54.1- 2100 et seq.) of Title 54.1 of the Code of Virginia.

Back 128

"Licensee"

Front 129

means the individual broker who shall be designated by each firm to assure compliance with Chapter 21 (§54.1-2100 et seq.) of Title 54.1 of the Code of Virginia, and this chapter, and to receive communications and notices from the board which may affect the firm or any licensee active with the firm. In the case of a sole proprietorship, the licensed broker who is the sole proprietor shall have the responsibilities of the principal broker. The principal broker shall have responsibility for the activities of the firm and all its licensees.

Back 129

"Principal Broker"

Front 130

means a party to a real estate transaction including without limitation a seller or buyer, landlord or tenant, optionor or optionee, licensor or licensee. For the purposes of this chapter, the listing or selling broker, or both, are not by virtue of their brokerage relationship, principals to the transaction.

Back 130

"Principal to a transaction"

Front 131

means any individual, not a corporation, who is trading under the individual's name, or under an assumed or fictitious name pursuant to the provisions of Chapter 5 (§59.1-69 et seq.) of Title 59.1 of the Code of Virginia.

Back 131

"Sole Proprietor"

Front 132

means a licensee who acts for or represents a client in an agency relationship. A standard agent shall have the obligations as provided in Article 3 (§54.1- 2130 et seq.) of Chapter 21 of Title 54.1 of the Code of Virginia.

Back 132

"Standard Agent"

Front 133

means (i) the individual broker who shall be designated by the principal broker to supervise the provision of real estate brokerage services by the associate brokers and salespersons assigned to branch offices or (ii) the broker, who may be the principal broker, designated by the principal broker to supervise a designated agent as stated in §54.1-2130 of the Code of Virginia.

Back 133

"Supervising Broker"

Front 134

Renewal Required

Back 134

Licenses issued under this chapter for salespersons, brokers, and firms shall expire two years from the last day of the month in which they were issued, as indicated on the license, except concurrent broker licenses which shall expire on the same date as the original broker license.

Front 135

1. The principal broker, either through his own efforts or through the efforts of his employees or associates, regularly transacts the business of a real estate broker as defined in §54.1-2100 of the Code of Virginia; and
2. The principal broker and his employees or associates can receive business calls and direct business calls to be made.

Back 135

A. Within the meaning and intent of §54.1-2110 of the Code of Virginia, a place of business shall be an office where:

Front 136

No place of business shall be in a residence unless it is separate and distinct from the living quarters of the residence and is accessible by the public.

Back 136

place of business

Front 137

Every principal broker shall have readily available to the public in the main place of business the firm license, the principal broker license and the license of every salesperson and broker active with the firm. The branch office license and a roster of every salesperson or broker assigned to the branch office shall be posted in a conspicuous place in each branch office.

Back 137

Place of business

Front 138

Each place of business and each branch office shall be supervised by a supervising broker. The supervising broker shall exercise reasonable and adequate supervision of the provision of real estate brokerage services by associate brokers and salespersons assigned to the branch office. The supervising broker may designate another broker to assist in administering the provisions of this subsection. The supervising broker does not relinquish overall responsibility for the supervision of the acts of all licensees assigned to the branch office. Factors to be considered in determining whether the supervision is reasonable and adequate include, but are not limited to, the following:

Back 138

1. The availability of the supervising broker to all licensees under the supervision of the broker to review and approve all documents including but not limited to leases, contracts affecting the firm's clients, brokerage agreements and advertising;
2. The availability of training and written procedures and policies which provide, without limitation, clear guidance in the following areas:
a. Proper handling of escrow deposits;
b. Compliance with federal and state fair housing laws and regulations if the firm engages in residential brokerage, residential leasing, or residential property management;
c. Advertising;
d. Negotiating and drafting of contracts, leases and brokerage agreements;
e. Use of unlicensed individuals;
f. Agency relationships;
g. Distribution of information on new or changed statutory or regulatory requirements;
h. Disclosure of matters relating to the condition of the property.
i. Such other matters as necessary to assure the competence of licensees to comply with this chapter an

Front 139

Place of business

Back 139

3. The availability of the supervising broker in a timely manner to supervise the management of the brokerage services;
4. The supervising broker ensures the brokerage services are carried out competently and in accordance with the provisions of this chapter and Chapter 21 (§54.1-2100 et seq.) of Title 54.1 of the Code of Virginia;
5. The supervising broker undertakes reasonable steps to ensure compliance by all licensees assigned to the branch office;
6. If a supervising broker is located more than 50 miles from the branch office and there are licensees who regularly conduct business assigned to the branch office, the supervising broker must certify in writing on a quarterly basis on a form provided by the board that the supervising broker complied with the requirements in this subsection; and
7. The supervising broker must maintain the records required in this subsection for three years. The records must be furnished to the board's agent upon request.

Front 140

Maintenance of license: Name and Adress

Back 140

1. Salespersons and individual brokers shall at all times keep the board informed of their current name and home address. Changes of name and address must be reported to the board in writing within 30 calendar days of such change. The board shall not be responsible for the licensee's failure to receive notices, communications and correspondence caused by the licensee's failure to promptly notify the board of any change of address. A licensee may use a professional name other than a legal name if that professional name is filed with the board prior to its use. The professional name shall include the licensee's first or last name and shall not include any titles.
2. Salespersons and brokers shall be issued a license only to the place of business of the sole proprietorship or firm with which the salesperson or broker is active.
3. Principal brokers must at all times keep the board informed of their current firm and branch office name and addresses and changes of name and address must be reported to the board

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Maintenance of License: Discharge or termination of active status

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1. When any salesperson or broker is discharged or in any way terminates his active status with a sole proprietorship or firm, it shall be the duty of the sole proprietor or principal broker to return the license by certified mail to the board so that it is received within 10 calendar days of the date of termination or status change. The sole proprietor or principal broker shall indicate on the license the date of termination, and shall sign the license before returning it.
2. When any principal broker is discharged or in any way terminates his active status with a firm, it shall be the duty of the firm to notify the board and return the license by certified mail to the board within three business days of termination or status change. The firm shall indicate on the license the date of termination, and shall sign the license before returning it. See §54.1-2109 of the Code of Virginia for termination relating to the death or disability of the principal broker.

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Maintenance of Escrow accounts

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1. If money is to be held in escrow, each firm or sole proprietorship shall maintain in the name by which it is licensed one or more federally insured separate escrow accounts in a federally insured depository in Virginia into which all down payments, earnest money deposits, money received upon final settlement, rental payments, rental security deposits, money advanced by a buyer or seller for the payment of expenses in connection with the closing of real estate transactions, money advanced by the broker's client or expended on behalf of the client, or other escrow funds received by him or his associates on behalf of his client or any other person shall be deposited unless all principals to the transaction have agreed otherwise in writing. The balance in the escrow accounts shall be sufficient at all times to account for all funds that are designated to be held by the firm or sole proprietorship. The principal broker shall be held responsible for these accounts. The supervising broker and any other licensee

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Disbursement of funds from escrow accounts.

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a. Purchase transactions. Upon the ratification of a contract, earnest money deposits and down payments received by the principal broker or supervising broker or his associates must be placed in an escrow account by the end of the fifth business banking day following ratification, unless otherwise agreed to in writing by the parties to the transaction, and shall remain in that account until the transaction has been consummated or terminated. In the event the transaction is not consummated (nonconsummation), the principal broker or supervising broker shall hold such funds in escrow until (i) all principals to the transaction have agreed in writing as to their disposition, or (ii) a court of competent jurisdiction orders such disbursement of the funds, or (iii) the broker can pay the funds to the principal to the transaction who is entitled to receive them in accordance with the clear and explicit terms of the contract which established the deposit. In the latter event, prior to disbursement, the broker shall

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Disbursement of funds from escrow accounts.

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b. Lease transactions: security deposits. Any security deposit held by a firm or sole proprietorship shall be placed in an escrow account by the end of the fifth business banking day following receipt, unless otherwise agreed to in writing by the principals to the transaction. Each such security deposit shall be treated in accordance with the security deposit provisions of the Virginia Residential Landlord and Tenant Act, Chapter 13.2 (§55-248.2 et seq.) of Title 55 of the Code of Virginia, unless exempted therefrom, in which case the terms of the lease or other applicable law shall control. Notwithstanding anything in this section to the contrary, unless the landlord has otherwise become entitled to receive the security deposit or a portion thereof, the security deposit shall not be removed from an escrow account required by the lease without the written consent of the tenant.

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Disbursement of Funds from escrow accounts

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c. Lease transactions: rents or escrow fund advances. Unless otherwise agreed in writing by all principals to the transaction, all rents and other money paid to the licensee in connection with the lease shall be placed in an escrow account by the end of the fifth business banking day following receipt, unless otherwise agreed to in writing by the principals to the transaction, and remain in that account until paid in accordance with the terms of the lease and the property management agreement, as applicable.

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Disbursement of funds from escrow accounts

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Purchase transactions. Unless otherwise agreed in writing by all principals to the transaction, a licensee shall not be entitled to any part of the earnest money deposit or to any other money paid to the licensee in connection with any real estate transaction as part of the licensee's commission until the transaction has been consummated.

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Disbursement of funds from escrow accounts

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b. Lease transactions. Unless otherwise agreed in writing by the principals to the lease or property management agreement, as applicable, a licensee shall not be entitled to any part of the security deposit or to any other money paid to the licensee in connection with any real estate lease as part of the licensee's commission except in accordance with the terms of the lease or the property management agreement, as applicable. Notwithstanding anything in this section to the contrary, unless the landlord has otherwise become entitled to receive the security deposit or a portion thereof, the security deposit shall not be removed from an escrow account required by the lease without the written consent of the tenant.

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Disbursement of funds from escrow accounts

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3. On funds placed in an account bearing interest, written disclosure in the contract of sale or lease at the time of contract or lease writing shall be made to the principals to the transaction regarding the disbursement of interest.

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Disbursement of funds from escrow accounts

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4. A licensee shall not disburse or cause to be disbursed moneys from an escrow or property management escrow account unless sufficient money is on deposit in that account to the credit of the individual client or property involved.

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Disbursement of funds from escrow accounts

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Unless otherwise agreed in writing by all principals to the transaction, expenses incidental to closing a transaction, e.g., fees for appraisal, insurance, credit report, etc., shall not be deducted from a deposit or down payment.

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Actions including improper maintenance of escrow funds include:

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1. Accepting any note, nonnegotiable instrument, or anything of value not readily negotiable, as a deposit on a contract, offer to purchase, or lease, without acknowledging its acceptance in the agreement;
2. Commingling the funds of any person by a principal or supervising broker or his employees or associates or any licensee with his own funds, or those of his corporation, firm, or association;
3. Failure to deposit escrow funds in an account or accounts designated to receive only such funds as required by subdivision A 1 of this section;
4. Failure to have sufficient balances in an escrow account or accounts at all times for all funds that are designated to be held by the firm or sole proprietorship as required by this chapter; and
5. Failing, as principal broker, to report to the board within three business days instances where the principal broker reasonably believes the improper conduct of a licensee has caused noncompliance with this section.

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18 VAC 135-20-185. Maintenance and management of financial records.

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A. A complete record of financial transactions conducted under authority of the principal broker's Virginia license shall be maintained in the principal broker's place of business, or in a designated branch office. When the principal broker's office is located outside of Virginia and the firm has a branch office in Virginia, a copy of these records shall be maintained in the Virginia office. These records shall show, in addition to any other requirements of the regulations, the following information: from whom money was received; the date of receipt; the place of deposit; the date of deposit; and, after the transaction has been completed, the final disposition of the funds.

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maintenence and management of financial records

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B. The principal broker shall maintain a bookkeeping or record keeping system which shall accurately and clearly disclose full compliance with the requirements outlined in this section. Accounting records which are in sufficient detail to provide necessary information to determine such compliance shall be maintained.

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C. Actions constituting improper record keeping include:

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1. Failing, as a principal or supervising broker, to retain for a period of three years from the date of the closing or ratification, if the transaction fails to close, a complete and legible copy of each disclosure of a brokerage relationship, and each executed contract, agreement, and closing statement related to a real estate transaction, in the broker’s control or possession, unless prohibited by law;
2. Having received monies on behalf of others and failed to maintain a complete and accurate record of such receipts and their disbursements for a period of three years from the date of the closing or termination of a lease or conclusion of the licensee's involvement in the lease; and
3. Failing, within a reasonable time, to account for or to remit any monies coming into a licensee's possession which belong to others.

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means all forms of representation, promotion and solicitation disseminated in any manner and by any means of communication to consumers for any purpose related to licensed real estate activity.

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"Advertising"

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in the context of online advertising means (i) advertising that contains the firm's licensed name, the city and state in which the firm's main office is located and the jurisdiction in which the firm holds a license or (ii) advertising that contains the licensee name, the name of the firm with which the licensee is active, the city and state in which the licensee's office is located and the jurisdiction in which the licensee holds a license. "Disclosure" in the context of other advertising means (a) advertising by the firm that contains the firm's licensed name and the firm's address or (b) advertising by an affiliated licensee that contains the licensee's name, the name of the firm with which the licensee is active and the firm's address.

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"Disclosure" by licensees

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means advertising in which no real property is identified.

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"Institutional Advertising"

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means a page that may or may not scroll beyond the borders of the screen and includes the use of framed pages.

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"Viewable Page"

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All advertising must be under the direct supervision of the principal broker or supervising broker, in the name of the firm and, when applicable, comply with the disclosure required by §54.1-2138.1 of the Code of Virginia. The firm's licensed name must be clearly and legibly displayed on all advertising.

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Advertising by licensees

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Online advertising Disclosure:

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a. The web. If a firm or licensee owns a webpage or controls its content, the viewable page must include disclosure or a link to disclosure.
b. E-mail, newsgroups, discussion lists, bulletin boards. All such formats shall include disclosure at the beginning or end of each message. The provisions of this subsection do not apply to correspondence in the ordinary course of business.
c. Instant messages. Disclosure is not necessary in this format if the firm or licensee provided the disclosures via another format prior to providing, or offering to provide, licensed services.
d. Chat/Internet-based dialogue. Disclosure is required prior to providing, or offering to provide, licensable services during the chat session, or in text visible on the same webpage that contains the chat session if the licensee controls the website hosting the chat session.
e. Voice Over Net (VON). Disclosure is required prior to advertising or the disclosure text must be visible on the same webpage that contains the VON session.
f.

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All online listings advertised must be kept current and consistent as follows:

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a. Online listing information must be consistent with the property description and actual status of the listing. The licensee shall update in a timely manner material changes to the listing status authorized by the seller or property description when the licensee controls the online site.
b. The licensee shall make timely written requests for updates reflecting material changes to the listing status or property descriptions when a third party online listing service controls the website displaying the listing information.
c. All listing information shall indicate in a readily visible manner the date that the listing information shown was last updated.

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Online advertising prohibits:

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1. Implying that property listed by a licensee's firm and advertised by the firm or licensee is for sale, exchange, rent or lease by the owner or by an unlicensed person;
2. Failing to include a notice in all advertising that the owner is a real estate licensee if the licensee owns or has any ownership interest in the property advertised and is not using the services of a licensed real estate entity;
3. Failing to include the firm's licensed name on any sign displayed outside each place of business;
4. Failing to obtain the written consent of the seller, landlord, optionor or licensor prior to advertising a specific identifiable property; and
5. Failing to identify the type of services offered when advertising by general description a property not listed by the party making the advertisement.

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Disclosure of Interest

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If a licensee knows or should have known that he, any member of his family, his firm, any member of his firm, or any entity in which he has an ownership interest, is acquiring or attempting to acquire or is selling or leasing real property through purchase, sale or lease and the licensee is a party to the transaction, the licensee must disclose that information to the owner, purchaser or lessee in writing in the offer to purchase, the application, the offer to lease or lease. This disclosure shall be made to the purchaser, seller or lessee upon having substantive discussions about specific real property.

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Disclosure of Brokerage relationships

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Purchase transactions.
1. Unless disclosure has been previously made by a licensee, a licensee shall disclose to an actual or prospective buyer or seller who is not the client of the licensee and who is not represented by another licensee and with whom the licensee has substantive discussions about a specific property or properties, the person whom the licensee represents in a brokerage relationship, as that term is defined in §54.1-2130 of the Code of Virginia.Historical Notes
2. Except as otherwise provided in subdivision 3 of this subsection, such disclosure shall be made in writing at the earliest practical time, but in no event later than the time specific real estate assistance is first provided. Any disclosure complying with the provisions of §54.1-2138 A of the Code of Virginia shall be deemed in compliance with this disclosure requirement.
3. A licensee acting as a dual or designated representative shall obtain the written consent of all clients to the transaction at the earliest practical time.

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Disclosure of brokerage relationships (lease transactions)

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1. Unless disclosure has been previously made by a licensee, a licensee shall disclose to an actual or prospective landlord or tenant who is not the client of the licensee and who is not represented by another licensee, that the licensee has a brokerage relationship with another party or parties to the transaction. Such disclosure shall be in writing and included in the application for lease or the lease itself, whichever occurs first. If the terms of the lease do not provide for such disclosure, the disclosure shall be made in writing not later than the signing of the lease.
2. This disclosure requirement shall not apply to lessors or lessees in single or multi-family residential units for lease terms of less than two months.

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Provisions of records to the board

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Unless otherwise specified by the board, or as set forth in § 54.1-2108 of the Code of Virginia, a licensee of the Real Estate Board shall produce to the board or any of its agents within 10 days of the request any document, book, or record concerning any real estate transaction in which the licensee was involved, or for which the licensee is required to maintain records for inspection and copying by the board or its agents. The board may extend such time frame upon a showing of extenuating circumstances prohibiting delivery within such 10-day period.

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Response to inquiry of the board

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A licensee must respond to an inquiry by the board, other than requested under 18 VAC 135-20- 240, or its agents within 21 days.

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Actions constituting unworthy and incompetent conduct include:

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1. Obtaining a license by false or fraudulent representation;
2. Holding more than one license as a real estate broker or salesperson in Virginia except as provided in this chapter;
3. As a currently licensed real estate salesperson, sitting for the licensing examination for a salesperson's license;
4. As a currently licensed real estate broker, sitting for a real estate licensing examination;
5. Having been convicted or found guilty, regardless of the manner of adjudication in any jurisdiction of the United States of a misdemeanor involving moral turpitude, sexual offense, drug distribution or physical injury, or any felony, there being no appeal pending therefrom or the time for appeal having elapsed. Review of convictions shall be subject to the requirements of § 54.1-204 of the Code of Virginia. Any plea of nolo contendere shall be considered a conviction for purposes of this subdivision.
The record of a conviction certified or authenticated in such form as to be admissible in evidence under the law

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Actions constituting a conflict of interest include:

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1. Being active with or receiving compensation from a real estate broker other than the licensee's principal broker, without the written consent of the principal broker;
2. Acting for more than one client in a transaction governed by the provisions of § 54.1-2139 of the Code of Virginia without first obtaining the written consent of all clients;
3. Acting as a standard agent or independent contractor for any client outside the licensee's brokerage firm(s) or sole proprietorship(s).

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Improper brokerage commission:

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1. Offering to pay or paying a commission or other valuable consideration to any person for acts or services performed in violation of Chapter 21 (§54.1-2100 et seq.) of Title 54.1 of the Code of Virginia, or this chapter; provided, however, that referral fees and shared commissions may be paid to any real estate entity licensed in this or another jurisdiction, or to any referral entity in the United States, the members of which are brokers licensed in this or another jurisdiction and which only disburses commissions or referral fees to its licensed member brokers;

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Improper brokerage commission:

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2. Accepting a commission or other valuable consideration, as a real estate salesperson or associate broker, from any person except the licensee's principal broker at the time of the transaction, for the performance of any of the acts specified in Chapter 21 (§54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or the regulations of the board or related to any real estate transaction, without the consent of that broker. Unless he has notified the broker in writing of the activity or activites to be pursued and obtained the prior written consent of the principal broker, no salesperson or associate broker shall (i) use any information about the property, the transaction or the parties to the transaction, gained as a result of the performance of acts specified in Chapter 21 (§54.1-2100 et seq.) of Title 54.1 of the Code of Virginia or (ii) act as an employee of a company providing real estate settlement services as defined in the Real Estate Settlement Procedures Act (12 USC §2601 et seq.) or pursuant to a

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Improper brokerage commission:

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3. Receiving a fee or portion thereof including a referral fee or a commission or other valuable consideration for services required by the terms of the real estate contract when such costs are to be paid by either one or more principals to the transaction unless such fact is revealed in writing to the principal(s) prior to the time of ordering or contracting for the services;

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Improper brokerage commission:

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4. Offering or paying any money or other valuable consideration for services required by the terms of the real estate contract to any party other than the principals to a transaction which results in a fee being paid to the licensee; without such fact being revealed in writing to the principal(s) prior to the time of ordering or contracting for the services;

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Improper brokerage commission:

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5. Making a listing contract or lease which provides for a "net" return to the seller/lessor, leaving the licensee free to sell or lease the property at any price he can obtain in excess of the "net" price named by the seller/lessor; and

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improper brokerage commission:

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6. Charging money or other valuable consideration to or accepting or receiving money or other valuable consideration from any person or entity other than the licensee's client for expenditures made on behalf of that client without the written consent of the client.

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Actions constituting improper dealing include:

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1. Entering a brokerage relationship that does not (i) specify a definite termination date; (ii) provide a mechanism for determining the terminationdate; or (iii) is not terminable by the client;
2. Offering real property for sale or for lease without the knowledge and consent of the owner or the owner's authorized representative, or on any terms other than those authorized by the owner or the owner's authorized representative;
3. Placing a sign on any property without the consent of the owner of the property or the owner's authorized representative; and
4. Causing any advertisement for sale, rent, or lease to appear in any newspaper, periodical, or sign without including in the advertisement the name of the firm or sole proprietorship.

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Actions constituting misrepresentation or omission, or both, include:

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1. Using "bait and switch" tactics by advertising or offering real property for sale or rent with the intent not to sell or rent at the price or terms advertised, unless the advertisement or offer clearly states that the property advertised is limited in specific quantity and the licensee did in fact have at least that quantity for sale or rent;
2. Failure by a licensee representing a seller or landlord as a standard agent to disclose in a timely manner to a prospective purchaser or tenant all material adverse facts pertaining to the physical condition of the property which are actually known by the licensee;
3. Failing as a licensee to tender promptly to the buyer and seller every written offer, every written counteroffer, and every written rejection to purchase, option or lease obtained on the property involved;
4. Failure by a licensee acting as a standard agent to disclose in a timely manner to the licensee's client all material facts related to the property or concerning the transaction when the fail

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improper delivery of instument:

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1. Failing to make prompt delivery to each principal to a transaction, complete and legible copies of any written disclosures required by §§ 54.1-2138 and 54.1-2139 of the Code of Virginia, listings, leases, offers to purchase, counteroffers, addenda,ratified agreements, and other documentation required by the agreement;2. Failing to provide in a timely manner to all principals to the transaction written notice of any material changes to the transaction;
3. Failing to deliver to the seller and buyer, at the time a real estate transaction is completed, a complete and accurate statement of receipts and disbursements of monies received by the licensee, duly signed and certified by the principal or supervising broker or his authorized agent; provided, however, if the transaction is closed by a settlement agent other than the licensee or his broker, and if the disbursement of monies received by the licensee is disclosed on the applicable settlement statement, the licensee shall not be required to provide the sep

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Principal and supervising broker's responsibility for acts of licensees and employees.

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Any unlawful act or violation of any of the provisions of Chapter 21, (§ 54.1-2100 et seq.) of Title 54.1 or of Chapter 5.1 (§ 36-96.1 et seq.) of Title 36 of the Code of Virginia or of the regulations of the board by any real estate salesperson, employee, partner or affiliate of a principal broker, supervising broker or both, may not be cause for disciplinary action against the principal broker, supervising broker, or both, unless it appears to the satisfaction of the board that the principal broker, supervising broker, or both, knew or should have known of the unlawful act or violation and failed to take reasonable action under the circumstances to remedy the situation.

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Effect of disciplinary action on subordinate licensees.

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Action by the board resulting in the revocation, suspension, or denial of renewal of the license of any principal broker or sole proprietor shall automatically result in an order that the licenses of any and all individuals active with the affected firm be returned to the board until such time as they are reissued upon the written request of a sole proprietor or principal broker pursuant to regulation 18 VAC 135-20-170 B.

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Effect of disciplinary action on concurrent licenses.

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The board shall suspend, revoke or deny renewal of existing concurrent broker licenses when the board suspends, revokes or denies renewal of another broker's license held by the same individual.

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If a licensee has any family, business, or financial relationship with any of the principals to the contract, all parties to the contract must be informed of the relationship in writing in the offer to purchase or lease. this requirement applies to any licensee who could be considered an "interested party" to the transaction.

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disclosure

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Unless disclosure has been made previously, a licensee must disclose the party he or she represents to an actual or prospective buyer or seller who is not the client of the licensee and who is not represented by another licensee. in the case of both buyers and sellers, the disclosure must be made when "substantive discussions about specific property" take place. the written disclosure must be provided "at the earliest practical time, but in no event later than the time specific real estate assistance is first provided.

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disclosure

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The disclosure must advise prospective buyers, sellers, landlords, or tenents of the duties of real estate brokers and salespersons under VA law, and it must encourage them to obtain relevant information from other sources.

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disclosure

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A licensee who is acting as a dual or designated representitive must obtain the written consent of all parties "at the earliest practical time." the disclosure may be made in conjunction with other required disclosures if it is conspicuous, printed in bold lettering, all capitals, underlined, or within a separate box.

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Dual Agency disclosure

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Public offering statement

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the pos filed for a time-share project is similar to the pos filed for a condominium. the developer may not convey any interest or advertise the property until the pos has been approved. if the time-share is being converted from another type of ownership, additional information is required regarding repairs made during the preceeding three years and the physical condition of the structure. the purpose and value of reserve funds must be disclosed.

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Right to rescind

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the purchaser of a time share interest at the project's initial sale has seven calendar days from execution of contract in which to cancel the contract without penalty. the developer is required to deliver the pos to the purchaser prior to the execution of the contract. the cancellation period commences on the date of contract ratification. if the seventh day falls on a sunday or legal holiday, the right to cancel will expire on the day following the sunday or legal holiday. the purchaser's right of cancellation cannot be waived, which must be identified in the contract.

Further, if there are material changes to the pos prior to settlement and after the initial time of contracting to purchase, the developer must provide the purchaser with the amended statement. the purchaser's right of cancellation is reinstated.

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encumbrance

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anything- such as a mortgage, tax, or judgement lien; an easement; a restriction on the use of the land; or an outstanding dower right- that may diminish the value or use and enjoyment of property.

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upon the ratification of a contract

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earnest money deposits and down payments received by the principal broker or supervising broker or his associates must be placed in an escrow account by the end of the fifth business banking day following ratification,

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escrow interest

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On funds placed in an account bearing interest, written disclosure in the contract of sale or lease at the time of contract or lease writing shall be made to the principals to the transaction regarding the disbursement of interest.

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escrow

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Unless otherwise agreed in writing by all principals to the transaction, expenses incidental to closing a transaction, e.g., fees for appraisal, insurance, credit report, etc., shall not be deducted from a deposit or down payment.

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escrow improper maintenance

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Failing, as principal broker, to report to the board within three business days instances where the principal broker reasonably believes the improper conduct of a licensee has caused noncompliance with this section.

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Megan's Law

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Disclosure forms must contain a notice advising purchasers that they should exercise whatever due diligence they deem necessary with respect to information on violent sexual offenders registered with the commonwealth. the form is not required for new home sales, transfers involving trusts, foreclosures, or residential leases. However, it is advocated that new disclosure language be added to all contracts and agency agreements.

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Buyer Recourse

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If the buyer learns of defects that either were not disclosed or were misrepresented in the disclosure statement, the buyer is entitled to seek recourse. any action brought under this act must be commenced within one year of occupancy in the event of lease with option to buy.

The owner is not liable for any error, inaccuracy, or omission of information in the disclosure form if the information was provided to the owner by a reliable third party such as a surveyor, engineer, appraiser, home inspector, or public authority. The owner is also not liable if he or she reasonably believed the information to be correct and there was no gross negligence involved.

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Licensee liability

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Like the owner, a real estate licensee cannot be liable for misrepresentation if he or she relied on information provided by others. However, a licensee must disclose material adverse facts pertaining to the physical condition of the property that are actually known by the licensee.

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An "Agency" relationship could best be described as one in which a licensee:

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acts for or represents another person in a real estate transaction.

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Disclosure of brokerage relationship form:

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needs to be signed when buyer/seller in the transaction does not have representation.

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Where must a roster of salespersons and brokers assigned to the branch office be located?

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At the branch office on request by any member of the public.

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When a licensee acts as an independent contractor and not as a standard agent, what governs the relationship between the licensee and the client?

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A written agreement and not the statue

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Homestead Exemption

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a householder is entitled to hold a certain amount of real property exempt from unsecured debts. The total value of the property may not exceed $5,000, plus $500 for each dependent.
-only the householder or head of a family may have the benefit of the exemption. a husband and wife may both be deemed householders if each contributes to maintaining the household.
the exemption does not apply against:
-claims for the purchase price of the homestead property
-mechanics liens
-claims for taxes

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What is the status of dower and curtsey rights in VA?

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They have been abolished

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homestead exemption:

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the family bible, wedding rings, and burial plots are in addition to the $5,000 exemption.

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all the following are true about easement by necessity?

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-it must be an appurtenant easement
-the only reasonable means of access is over the servient estate
-both dominant and servient estates must have at some time in the past been owned by the same person.

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Virginia is not a:

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community property state

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POA Disclosure Packet

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info in packet must be current as of the date of the packet. this allows the property owner to have the packet available to purchaser at time of contract.

The association is required to make the packet available within 14 days after an owner/member, or an owner/member's authorized agent, files a written request. the association may charge a fee reflecting the actual cost for preparation of the packet but shall not exceed ten cents per page for copying or a total of $100 for all costs incurred. The associations failure to deliver the packet on time in a timely manner waives any claim for delinquent assessments or fines. the maximum liability to the association for failing to provide the packet in a timely manner is actual damages, not to exceed $500.

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what is required for a corporation to convey property by deed?

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corporate seal and signatures of corporate officers

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when a person wants to create a condominium:

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the word "condominium" must appear in the name of the property.

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contracts for the INITIAL purchase of a condominium may be rescinded without penalty how many days after the later of contract ratification or receipt of the POS?

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10 days

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if a condominium unit owner fails to pay the owners' association's assessment against his or her unit, the owner's association may:

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place a lien against the unit

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what vote is necessary for condo owners to dissolve the condo status of the property?

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80%

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B has a ratified contract to purchase a two-bedroom condo unit from T. B is now suffering from buyers remorse and wishes to back out of the contract. she has not yet recieved the condo documents. after hand-delivery of the documents, she will have how many days to cancel the contract?

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three days

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H is the owner of a time share unit, which he bought several years ago from the developer. on march 2, H accepts an offer from J to buy the unit. On March 4, H hand-delivers the certificate of resale to J. On april 12, H transfers ownership of the unit to J. If J should decide to rescind the contract, what is the latest date when J may do so without incurring a penalty?

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March 9. 5 days after it is hand delivered.

Front 213

When the owner's interest in a time share includes either a freehold interest or an estate for years, it is what type?

Back 213

Time-share estate

Front 214

H recently visited a brand new time share project on the Eastern shore. if she decides to make an offer on the property, how long will she have to cancel the contract w/out penalty?

Back 214

7 days after ratification of contract

Front 215

what is the statue of limitations on any action for misrepresentation of information as it applies to time shares?

Back 215

two years

Front 216

m has decided she no longer wishes to purchase the town house which she currently has under contract. the town house is covered by the POA Act. M can cancel her contract:

Back 216

within 3 days after receiving the POA disclosure packet

Front 217

S is 6 months behind in his POA fees. the association has the right to:

Back 217

place a lien on the property

Front 218

Both the condominium act and the property owner association act have a set limit on the amount that may be charged for preparation of the required document packet of:

Back 218

up to $325

Front 219

the REB is charged with the administration of all the following:

Back 219

-property owner's association act
-va condo act
-va time share act

EXCEPT: va residential property disclosure act

Front 220

fee simple

Back 220

entitled to ALL THE RIGHTS OF THE PROPERTY

Front 221

J signs an agreement to purchase a condomunium unit on april 1. on april 10, J recieves the condo documents and immediately requests and update to the condo documents. on april 20, settlement day, the update has still not arrived. J can:

Back 221

request a postponement of the settlement pending receipt and acceptance of the update.

Front 222

the condo act states that ______ of the total voting interest is required to change the bylaws.

Back 222

2/3

Front 223

A couple engaged to be married is planning to purchase a home prior to the wedding. they can take title in all the following ways:

Back 223

-tenants in common
-joint tenants w/ survivor ship
-joint tenancy

EXCEPT: Tenants by the entirety

Front 224

The survey always:

Back 224

supersedes errors in the plat

Front 225

A lender cannot require:

Back 225

that a particular surveyor conduct the survey

Front 226

A survey that shows the location of the house, garage, fence, utility lines, and childs playhouse in the backyard is most likely a:

Back 226

As-built survey

Front 227

uniform real estate taxation in VA:

Back 227

tax rates and assessments must be uniformly applied to similar properties.

Front 228

in regards to taxes on new construction:

Back 228

taxes are estimated from the date of the certificate of occupancy.

Front 229

In va, who owns a property (for real estate tax purposes) on the date of sale?

Back 229

the buyer owns it

Front 230

J is relieved to learn that her home will soon be served by a city sewer line. How will this improvement most likely be paid for?

Back 230

Special Assessment

Front 231

How long after work is done may a mechanic wait before filing a mechanics lien?

Back 231

90 days

Front 232

how soon after filing the lien must the mechanic enforce it by filing suit?

Back 232

w/in 6 months

Front 233

w/in what period of time must a creditor on a judgement enforce the judgement once it is rendered?

Back 233

w/in 20 years

Front 234

the following statements with regard to power of attorney are true:

Back 234

-a party cannot attend the closing on a property may designate an attorney-in-fact.
-a power of attorney must be notorized
-a power of attorney must be recorded with the deed

Front 235

2 weeks after a buyer and seller signed a sales contract on a house, the house burned to the ground. If the contract is silent on the issue, which party is liable?

Back 235

the buyer only, under his or her equitable title of interest

Front 236

if K rents P's vacation spot from May through september for $900 per month and P agrees to the terms orally and K fails to make rent payments, is the contract enforceable?

Back 236

yes, an oral lease for a term of less than one year is enforceable.

Front 237

In a situation where either the buyer or the seller contacts a licensee to merely prepare a sales contract for a fee, the licensee may:

Back 237

be guilty of practicing law w/out a license.

Front 238

An actual contract used for the purchase and sale of real property:

Back 238

may take any form

Front 239

A sales contract would contain all of the following:

Back 239

-types of sewage system
-amount of the down payment
-possession date

EXCEPT: ages of the parties to the contract

Front 240

How many days after the request for the POA disclosure packet regarding a referenced property must the packet be delivered to the purchaser?

Back 240

14 days

Front 241

When requesting the disclosure packet, payment:

Back 241

may accompany the request

Front 242

A person is presumed competent unless:

Back 242

a court rules otherwise

Front 243

It is illegal to buy/sell property to a:

Back 243

minor

Front 244

When using power of attorney:

Back 244

the borrower should obtain the lenders permission when using power of attorney.

Front 245

The seller in a transaction was calle out of town on business the day before the closing. Any affidavits (A written declaration made under oath before a notary public or other authorized officer) or sworn statements the seller is required to deliver at the closing must be signed by the:

Back 245

Seller

Front 246

the seller would be expected to pay:

Back 246

Grantor tax of $0.50 per $500 of purchase price

Front 247

to establish this, it is necessary to show: actual, hostile, exclusive, visible, and continuous possession of property for the statutory period of 15 years. The possession by the defendant must be actual and continuous; that is, more than just a sporadic taking of timber or occasional camping is required. the adverse possession must be exclusive to constitute an outster of the true owner.

Back 247

-Adverse Possession (squatters obtaining possession and establishing "title" scenario)

Front 248

M's great-aunt S has died and left M her lake-side cabin in her will. M will receive title to the property:

Back 248

after the will has gone through probate. (in VA circuit courts serve as probate courts. this occurs when a person dies testate (leaving a will). Normally there is a probate section in the clerk's office where wills, lists of heirs, affidavits [A written declaration made under oath before a notary public or other authorized officer], and other documents related to probate are located.)

Front 249

K was very ill, and she wrote a will in her own handwriting, leaving all her property to L. Three witnesses heard K say, "this is my will." the witnesses watched K's friend sign K's name to the document, because K was too exhausted to do it herself. "That's as good as my signature," K said weakly. The witnesses signed the will. What is the status of this document?

Back 249

The will is valid

Front 250

When is the seller of real property required to have marketable title?

Back 250

at closing

Front 251

B is purchasing property from S. Prior to closing, certain defects are found in S's title. what is the status of the sales contract between these parties?

Back 251

Bc the seller has a reasonable time to correct defects, the contract is still in effect.

Front 252

According to the consumer real estate settlement act, the selection of a settlement agent is made by:

Back 252

The buyer

Front 253

At the time of taking a listing, the listing agent will find it helpful to ask to see all documents concerning the property that the seller has available in order to do all of the following:

Back 253

-find out about unrecorded deeds
-verify deed of trust loan numbers and payment status.
-learn of any liens that may not be recorded

EXCEPT: to determine whether a seller has marketable title at the time a property is held out for sale.

Front 254

A full title search goes back how many years?

Back 254

60 years

Front 255

A correctional deed:

Back 255

corrects erroneous legal descriptions, corrects misspelled names, corrects the signature on an improperly executed deed.

Front 256

in cases where title must be cleared by having correction deeds signed, who is responsible for locating the parties who must sign?

Back 256

the seller

Front 257

you should be worried about judgement liens on a property bc:

Back 257

judgment liens remain against the property

Front 258

all the following are protections offered to an owner insured by a standard title insurance policy:

Back 258

-Losses suffered bc of defects in the record title
-hidden defects not disclosed by the public record.
-the cost of defending the title against adverse claims.

EXCEPT: mechanics' and materialmen's liens

Front 259

a brokers business is growing and now she wants to open a branch office:

Back 259

the office must have a seperate license

Front 260

A licensed salesperson may hold a concurrent license w/ more than one va broker under:

Back 260

no circumstances

Front 261

a permissable sign to place in front of the office:

Back 261

"weichert Realty"

Front 262

A salesperson retires, what must they do:

Back 262

nothing, the broker is resonsible for notifying the REB of the change

Front 263

If a broker establishes an account to hold money belonging to others:

Back 263

all checks, deposit slips, and bank statements must include the word "escrow" as part of the account name

Front 264

Earnest money deposits may be distributed from the broker's escrow account in any of the following situations:

Back 264

-at settlement on the property
-when all parties to the transaction agree to disbursement
-when the broker determines distribution according to the contract

Front 265

Every va real estate office is required to:

Back 265

keep transaction records for 3 years

Front 266

Broker D has developed her own Web page to advertise her listings for sale. online disclosure requirements require that she include on each page:

Back 266

her name, her firms name and address, and the jurisdiction in which her firm is licensed.

Front 267

A licensed salesperson is selling her own condo and advertises it as follows: "for sale by owner: 3 bed. condo unit in high rise. call 5402224986 for details. owner licensed."

Back 267

the ad is proper bc the owner has disclosed her license status as required by law

Front 268

when must you file a claim w/ REB to recover money from the Transaction Recovery fund?

Back 268

w/in one year of being awarded judgment by the courts

Front 269

What is the minimum balance of the va real estate transaction recovery fund?

Back 269

$400,000

Front 270

A licensed salesperson obtains a listing. several days later, the salesperson meets prospective buyers at the property and tells them, "i am the listing agent for this property, and so I'm very familiar with it." under these circumstances:

Back 270

the sales person has failed to properly disclose their relationship w/ seller (not in writing)

Front 271

when must you notify the REB of a conviction?

Back 271

w/in 30 days

Front 272

w/ a salesperson lists and sells property that he or she owns, it is important that the listing agreement include all of the following info:

Back 272

-the name of the employing broker
-the definite date on which the listing will expire
-a disclosure of licensure status.

Front 273

Under the terms of a sales contract, the seller is required to provide a termite certificate. the seller requests that the salesperson order one. the salesperson does so, knowing she will recieve a referral fee from the pest control company. is this a violation of license law?

Back 273

no, if the fee is disclosed in writing to the parties in the contract

Front 274

w/ a sole proprietor has their license suspended for 2 years, w/ effect does this have on the associate broker ans salespeople affiliated with the proprietor?

Back 274

The affiliates licenses must be returned to the REB

Front 275

bob wants to hire an assistant to help him w/ paperwork, answer calls, and show properties on sundays only. bob can do this as long as the assisstant:

Back 275

has a valid real estate license and becomes affiliated with bob's firm

Front 276

the minimum balance in the va real estate transaction recovery fund is $400,000. what is the maximum amount allowed to remain in the recovery fund at the end of each fiscal year?

Back 276

$2,000,000

Front 277

a salesperson lists his broker's home for sale and publishes it in the local MLS. it is important that the salesperson disclose:

Back 277

the fact that both he and his broker are licensees

Front 278

in order to practice real estate in two differen't states you must:

Back 278

consent to suits and services

Front 279

you must complete 30 hours of postlicensing education:

Back 279

w/in the first 12 months of becoming a licensee