T! Flashcards
In Virginia, there are specific requirements for all transactions involving the purchase or lease of residential properties constructed before 1978. Licensees are required to provide a lead-based paint disclosure form, and all purchase agreements must allow the buyer the option to conduct a lead-based paint risk assessment or inspection. What is the third item a licensee must provide to the buyer?
1, Assurance that the home is lead-free before offering it for sale
2. Lead safety pamphlet
3. List of reputable home improvement contractors
4. Written proof that the home is lead-free
Lead safety pamphlet
Licensees must also provide a lead safety pamphlet to prospective buyers.
How many scheduled public meetings does the VREB hold each year? Eight Four Seven Two
Eight
The VREB holds eight scheduled public meetings each year.
Grant, a landlord, doesn’t like to rent to those over the age of 60, and goes out of his way to discourage these applicants from his apartments. “I don’t hate older people,” he explains to you, his agent. “It’s just that they usually forget to pay rent on time and need a lot more managing.” What should you tell him?
“As long as you make sure you’re not discriminating based on race, color, or national origin, you are fine to continue this practice.”
“It’s okay. The elderly aren’t protected under federal law, so you can choose not to rent to them.”
“The elderly are protected under Virginia fair housing laws, so you could be found guilty of breaking those laws.”
“You’re allowed to rent to whomever you choose. That means you can turn away anyone you want to.”
“The elderly are protected under Virginia fair housing laws, so you could be found guilty of breaking those laws.”
Grant absolutely needs to rethink his approach, since the elderly are a protected class under Virginia fair housing law.
Which of these is NOT an example of improper escrow account handling?
Kerri deposits a down payment check and the rent she received from one of her own properties in the same account.
Lou maintains all account-related records for three years after the transactions close.
Maxine withdraws money from an escrow account to pay for a business lunch.
Three weeks after he receives the check, Derek opens an escrow account for a client’s rental security deposit.
Lou maintains all account-related records for three years after the transactions close.
Lou has done the correct thing in maintaining all account-related records for three years, so he hasn’t done anything improper.
Unfulfilled contracts are also called \_\_\_\_\_\_\_. Indefinite contracts On-hold contracts Unachieved contracts Unconsummated contracts
Unconsummated contracts
The other term for unfulfilled contracts is “unconsummated contracts.”
Philip tells his agent, Jeff, “I know for a fact that there have been three homicides in this house. What are buyers going to think about this?” What should Jeff say?
“If I tell buyers this, I could be found guilty of negligence to you, so don’t worry. Mum’s the word.”
“My duties toward the public include disclosing information like this, so I’ll have to mention this to potential buyers.”
“This is something we have to disclose only if we’re asked about it directly. Otherwise, we don’t have to mention it.”
“This sort of information has its own mandatory disclosure form in Virginia, so it’ll have to come out eventually.”
“If I tell buyers this, I could be found guilty of negligence to you, so don’t worry. Mum’s the word.”
Not only is there no disclosure requirement for homicides on the property, but Jeff could be found guilty of negligence toward Philip if he even mentions it to potential buyers.
In Virginia, a landlord must provide a copy of the written rental agreement. When must this be provided?
Within 30 days of the tenant’s occupancy
Within five days of the tenant’s occupancy
Within one month of the agreement’s effective date
Within seven days
Within one month of the agreement’s effective date
A signed copy of the written rental agreement must be provided to the tenant within one month of the agreement’s effective date. The landlord must provide a written report of existing damage to the unit within five days of the tenant’s occupancy.
Question 24
Which of the following should licensees be careful to avoid when interacting with an opposing party who has a limited service agent?
Creating unintended dual agency
Interacting directly with the opposing party
Interacting with the limited service agent
Maintaining the confidentiality of information shared by the opposing party
Creating unintended dual agency
Although the duties a limited service agent will perform are clearly listed in the brokerage agreement, some consumers still may not fully understand what they are getting into and may rely on the opposing party’s agent to assist them with aspects of the transaction. Agents who are too helpful to the opposing party may get themselves into an unintended dual agency situation and breach the duties they owe their client. Use caution!
Sandy is a real estate licensee who is listing a condo for her client. Sandy sends a note to the owner’s association requesting a condo disclosure package. How long does the association have to provide this to her and her client?
14 days after receipt of the written request
28 days after receipt of the written request
30 days after receipt of the written request
45 days after receipt of the written request
14 days after receipt of the written request
The condo disclosure package must be delivered by the association within 14 days after receipt of a written request and instructions by a seller or seller’s agent.
Nathaniel assisted with the purchase of a commercial building that will be used as a community center. He doesn’t hold a real estate license, yet his actions didn’t violate any license laws. What must be true about Nathaniel’s situation?
He received a commission of less than $1,000.
Nathaniel is a public official whose salaried duties include real estate transactions.
Nathaniel’s church purchased the building.
The commercial building was valued at less than $500,000.
Licensure is nearly always required when performing real estate activities for others for compensation, but exceptions are made in specific circumstances, such as a public officer performing official duties.
Nathaniel is a public official whose salaried duties include real estate transactions.
Licensure is nearly always required when performing real estate activities for others for compensation, but exceptions are made in specific circumstances, such as a public officer performing official duties.
Reggie has a buyer client who is purchasing a home built before 1978. Which two documents must Reggie ensure that his client receives as part of the Residential Lead-Based Paint Hazard Reduction Act?
EPA lead-based paint brochure and residential property disclosure
EPA lead-based paint brochure and state-specific lead-paint disclosure
State-specific lead-paint disclosure and residential property disclosure
Synopsis of the Lead-Based Paint Hazard Reduction Act and EPA lead-based paint brochure
EPA lead-based paint brochure and state-specific lead-paint disclosure
Reggie must ensure that his client receives copies of the EPA lead-based paint brochure and Virginia’s Disclosure of Information and Acknowledgement Lead-Based Paint and/or Lead-Based Paint Hazards document.
Three of these situations fall into the category of being exempt from Virginia fair housing law, and one does not. Which is NOT exempt?
A couple owns a duplex and rents the other half of the property to a retired couple. They own no other real estate property.
A family of 10 applies to live in a studio apartment that has a maximum occupancy limit of three people.
A man rents a room in his single-residency home to another tenant, and he owns and rents three additional single-family houses.
A property owner discovers through a background check that a potential tenant has been convicted of manufacturing methamphetamines.
A man rents a room in his single-residency home to another tenant, and he owns and rents three additional single-family houses.
Single-family residences are only exempt from fair housing law if the owner does not own more than three single-family houses at any time.
Which of the following describes Virginia? Lien theory state Mortgage state Title theory state Trustee state
Title theory state
Virginia is a title theory state, meaning the trustee can only act in a manner authorized by statute of the terms of the trust.
In Virginia, the floodplain consists of the floodway and the \_\_\_\_\_\_. Flood discharge area Flood fringe Property within a one mile radius Surrounding community
Flood fringe
The floodplain consists of the floodway and the flood fringe. Development is generally not permitted in floodways, because this is the most dangerous area in a floodplain.
Condominium \_\_\_\_\_\_\_ set forth the rules and regulations for the condominium owners associations. They govern how the associations manage and spend cash reserves, for example. Bylaws CC&Rs Disclosure packets Public offering statements
Bylaws
Rules and regulations for owners associations are set forth in the condo development’s bylaws.
Examples of penalties for lesser violations may include a reprimand, fine, repayment of commission, or \_\_\_\_\_\_\_\_\_. Additional education Jail time License revocation License suspension
Additional education
Additional education is an example of a penalty for lesser violations.
Which of the following is required of limited service agents?
They must be paid up front.
They must disclose any material facts they are aware of or that are reasonable apparent.
They must inspect all properties they are listing on the MLS.
They must perform all duties required by statute.
They must disclose any material facts they are aware of or that are reasonable apparent.
Although the duties performed for clients are reduced, limited service agents still run the risk of misrepresentation if they do not disclose any material facts they are aware of or that are reasonably apparent.
Why does a dual agency relationship require a disclosure signed by both parties?
Because dual agency offers reduced services to consumers (often without a commensurate reduction in fees).
Because the buyer’s interests must take priority over the seller’s interests.
Because the seller’s interests must take priority over the buyer’s interests.
It doesn’t.
Because dual agency offers reduced services to consumers (often without a commensurate reduction in fees).
Not quite. When entering into a dual agency relationship, both parties give up services an agent would normally provide when only representing one party. These include undivided loyalty and an agent who will advocate and negotiate for the client.
What must a broker do to obtain concurrent licensure?
Submit an application and fee to the VREB with written affidavits from the principal brokers of each brokerage where the broker intends to work.
The broker must file an application and pay a transfer fee to the VREB.
The broker must pass the concurrent brokerage examination to obtain concurrent licensure.
There are no requirements for a broker to claim concurrent licensure.
Submit an application and fee to the VREB with written affidavits from the principal brokers of each brokerage where the broker intends to work.
The broker must submit an application and fee to the VREB with written affidavits from the principal brokers of each brokerage where the broker intends to work to obtain concurrent licensure.
Which of the following statements about the Notice of Disclosure Pursuant to Virginia Residential Property Disclosure Act is true?
As part of the disclosure, the seller is required to provide a list of sex offenders living near the property.
The buyer is required by law to request a copy of the disclosure.
The disclosure form is not part of the purchase agreement.
The disclosure form is part of the purchase agreement.
The disclosure form is not part of the purchase agreement.
The disclosure form is not part of the purchase agreement. It is something sellers provide separately.
Angela made an offer on a property that was accepted and the purchase contract was ratified. The seller provided the disclosure statement the day after contract ratification. The following day, Angela submitted her loan application, which includes a disclosure about the right to terminate. If she wishes to terminate the purchase contract, when must she do this?
At settlement
Her right to terminate the contract ended when she submitted her loan application
Within five days if mailing the termination notice
Within three days if hand delivering the termination notice
Her right to terminate the contract ended when she submitted her loan application
Not quite. If a loan application discloses that the right to terminate a contract ends when the application is taken, the other timeframes don’t matter. Angela relinquished her right to terminate the transaction when she applied for the loan.
Identify the landlord who is trying to include a prohibited clause in the rental agreement.
Bob is a little bitter about a past experience and includes in a warning that he will sue any client who does not allow him access to an apartment that is leaking water into the unit below
Frank’s lease states that the security deposit shall be equal to two months’ rent
Lance’s lease includes a statement that damages to the property will be added to the following month’s rent
Stacey asks all tenants to read the Virginia Residential Landlord Tenant Act so they will know their rights and states this in her rental agreement
Lance’s lease includes a statement that damages to the property will be added to the following month’s rent
A landlord cannot increase the rent amount owed to include damages. This is done to protect tenants from being evicted because they could not pay the new, increased amount of rent. Damages can certainly be recouped, but not through rent.
Which of these instances does NOT allow a broker to disburse escrow funds?
All principals to the transaction have agreed, in writing, where the money should go.
One of the principals to the transaction demonstrates, in writing, a clear financial need.
The broker has received a court order that directs her to disburse the funds in a certain way.
The related contract directs that the escrow funds be distributed in a certain way.
One of the principals to the transaction demonstrates, in writing, a clear financial need.
Clear financial needs, however compelling, do not dictate how escrow funds can be disbursed.
Zoe, seller, and Darnell, buyer, signed their purchase contract on Monday. The contract allows for Darnell to move in to the property one week before settlement. The day before Darnell is to move in to the property, Zoe provides Darnell with the disclosure statement. If Darnell wishes to terminate the contract, by when must he provide Zoe with a written termination notice?
Before moving into the property
Before settlement
Within five days, if he’s mailing the notice
Within three days, if he’s hand-delivering the notice
Before moving into the property
In this scenario, Darnell plans to occupy the property before closing. He must terminate the contract, if he wants to, before he moves in. He doesn’t have the three or five days’ leeway, because he is scheduled to occupy the very next day.
