T2 Flashcards
Ted is the owner of an apartment complex near a trendy resort town. He decides he wants to convert one of the complex’s buildings into a timeshare. What’s the first step in the process of conversion?
Ted must advertise the conversion proposal and receive local input. He can then file a petition with the Common Interest Community Board.
Ted must complete a community impact statement and file it with the Common Interest Community Board.
Ted must give current tenants at least 90 days’ notice to vacate the building that he is planning to convert.
Ted must prepare a timeshare instrument and file it with the Common Interest Community Board.
Ted must prepare a timeshare instrument and file it with the Common Interest Community Board.
Before creating a timeshare program for a timeshare estate project, Ted must first prepare a timeshare instrument that meets specific legal requirements, and file the instrument with the Common Interest Community Board, which is responsible for administering the Time-Share Act; this process creates the timeshare association. No timeshares may be sold until this association has been created in this way.
In Virginia, what is the definition of a common interest community?
Non-commercial real estate subject to the governance of the residents
Real estate of four or more units with common areas
Real estate that is constructed to support communal living areas
Real estate that is subject to a declaration containing lots and common areas
Real estate that is subject to a declaration containing lots and common areas
A common interest community is defined by Virginia law as real estate located within Virginia that is subject to a declaration containing lots and common areas. At least some of these lots must be residential or occupied for recreational purposes.
Sallee, a salesperson with three months of experience who works under principal broker Skyler, destroys brokerage disclosure records that are two and a half years old. Which of the following statements about this situation is true?
Sallee could be found negligent in her recordkeeping duties.
Since the records are older than two years, shredding them is perfectly allowable.
Since the records didn’t contain financial information, shredding them is perfectly allowable.
Skyler could be found negligent in his recordkeeping duties.
Skyler could be found negligent in his recordkeeping duties.
These records should be maintained for three years, and Skyler, as the principal broker, could be found negligent in his recordkeeping duties.
Someone called into Rolling Hills Realty with a complaint about an advertisement that agent Luellen has displayed on her seller client, Ron’s, property. “I want to talk to the person who’s ultimately responsible for this ad!” says the caller. Which of the following is the correct response?
“In that case, I’d advise you to get hold of someone in Virginia’s Department of Professional and Occupational Regulation, or DPOR, since they make the advertising rules.”
“Luellen is the agent who created the ad, so let me give you her mobile number.”
“OK, I’ll have you talk to our principal broker Gary McCann.”
“The best thing to do is to talk to the seller, Ron, since the sign is on his property.”
“OK, I’ll have you talk to our principal broker Gary McCann.”
Luellen displayed the ad, but the person ultimately responsible for its content is Gary, her principal broker.
Which section of the Residential Contract of Purchase states that the seller is responsible for maintaining the property in the same condition as it is on the contract date, the inspection date, or some other date specified by the buyer?
The Equipment Condition and Inspection section
The Real Property section
The Risk of Loss section
The Settlement; Possession section
The Equipment Condition and Inspection section
The Property Maintenance and Condition section states that the seller is responsible for maintaining the property in the same condition as it is on the contract date, the inspection date, or some other date specified by the buyer.
All of these property types are exempt from the Virginia Residential Landlord and Tenant Act, EXCEPT:
Apartment building with only five units
Condos and cooperatives
Hotels/motels
Public housing
Apartment building with only five units
Landlords owning and renting more than four rental units are not exempt. If you were tripped up by the wording of the question, make note to watch out for flipped questions like this—you just may see them on your pre-licensing exam.
In Virginia, which type of licensee must take 24 hours of continuing education every renewal cycle? Associate broker Broker Managing broker Salesperson
Broker
In Virginia, a real estate broker must take 24 hours of continuing education.
Which of the following situations is the best example of designated agency?
Agent Devin represents seller Angie, and agent Denise represents buyer Alex. Alex is buying Angie’s condo. Devin and Denise both work for Blue Skies Realty.
Agent Devin represents seller Angie, and agent Donovan represents buyer Alex. Alex is buying Angie’s condo. Agent Devin works for Blue Skies Realty and Donovan works for Happy Homes Realty.
Agent Devin represents seller Angie and buyer Alex. Alex is buying Angie’s condo.
Agent Devin represents seller Angie. The buyer Alex is unrepresented. Alex is buying Angie’s condo.
Agent Devin represents seller Angie, and agent Denise represents buyer Alex. Alex is buying Angie’s condo. Devin and Denise both work for Blue Skies Realty.
Designated agency is when one firm represents both parties, but each is represented by a different agent within the firm.
Which of these statements about septic systems and disclosure are true?
All owners of properties with septic systems must disclose how much it costs to maintain and operate these systems.
In Virginia, unlike other states, all septic systems must be disclosed.
Septic systems that don’t involve additional maintenance requirements and a waiver don’t have to be disclosed.
The presence of a septic system only needs to be disclosed if that system is malfunctioning.
Septic systems that don’t involve additional maintenance requirements and a waiver don’t have to be disclosed.
The only time an owner has to disclose a septic system is if that system is subject to maintenance and repair requirements imposed by the state board of health AND the owner has a waiver.
If Jessica functions as a CIC manager without a proper license, what crime can she be charged with?
If she is guilty one time it is a misdemeanor; if she is found guilty three times, it becomes a felony.
Jessica’s actions would not be considered a crime.
Jessica would be guilty of a felony.
Jessica would be guilty of a misdemeanor.
If she is guilty one time it is a misdemeanor; if she is found guilty three times, it becomes a felony.
Any person who provides CIC management services without being licensed as required is considered guilty of a Class 1 misdemeanor; those with three or more convictions are considered guilty of a Class 6 felony. A variety of penalties may apply.
Consuela, the landlord, wants to enter the apartment of one of her tenants, Ruth. Consuela plans to show the unit to three potential tenants. Can she do this?
No, because this isn’t an emergency.
Yes, but only if Consuela gives Ruth 24 hours’ notice.
Yes, but only if Ruth and Consuela have agreed to this arrangement in writing.
Yes, this is one of her rights.
Yes, but only if Consuela gives Ruth 24 hours’ notice.
Consuela can come in for non-emergencies such as this one, but she must give Ruth 24 hours’ notice.
According to the disclosure statement, what is a seller’s disclosure requirement if they know that the parcel of land behind their property is being rezoned for commercial development?
The seller is required to disclose this information.
The seller makes no representations.
The seller must provide the buyer with a zoning map.
This condition is not material to the property and need not be disclosed.
The seller makes no representations.
Adjacent parcels of land are items about which the seller makes no representations. Buyers should perform due diligence with respect to the surrounding area.
Jerry has completed 170 hours of online education and he has two years’ experience as a real estate salesperson. He’s wondering about the possibility of getting another license. What should you tell him?
“You could apply for an associate broker’s license once you have another year of experience as a salesperson.”
“You could apply for an associate broker’s license with your current level of education.”
“You could apply to be a broker after one more year of experience and 10 more education hours.”
“You don’t need more experience, but if you take 10 more education hours you could apply to be a principal broker.”
“You could apply to be a broker after one more year of experience and 10 more education hours.”
Jerry can apply for his broker’s license after another year of experience as a salesperson, and after completing only 10 more hours of education.
What happens to you if you’re involved in a case and can’t pay the judgment amount, and the consumer is awarded money from the Real Estate Recovery Fund?
Nothing! That is what the fund is for!
You can continue to practice real estate but must pay back the money to the fund at 10% interest.
You must pay back the money from the fund at 30% interest from your real estate commissions.
Your license will be revoked and can’t be reinstated until you pay back the fund, plus interest.
Your license will be revoked and can’t be reinstated until you pay back the fund, plus interest.
Your license will be revoked and can’t be reinstated until you pay back the fund, plus interest.
Which section of the Residential Contract of Purchase is required by Virginia law to be included in any contract for the purchase of real estate that has between one and four residential dwelling units?
The Home Owner’s Inspection section
The Notice to Purchaser Regarding Settlement Agent and Settlement Services section
The Notice to Purchaser(s) section
The Seller’s and Purchaser’s Options section
The Notice to Purchaser Regarding Settlement Agent and Settlement Services section
Virginia law requires that the Notice to Purchaser Regarding Settlement Agent and Settlement Services section be included in any contract for the purchase of real estate that has between one and four residential dwelling units.
A condo owner is selling his unit. According to the Condominium Act, what must be provided to buyers? Deed Disclosure packet Proprietary lease Resale certificate
Resale certificate
Not quite. Sellers of units that fall under the Condominium Act must provide buyers with a resale certificate. This discloses financial details, fees, rules and regulations, and other information that buyers should know when purchasing a condominium.
When does a designated agency disclosure need to be provided?
Never
Only when representing a buyer and interacting with an unrepresented seller
Only when representing the seller and interacting with an unrepresented buyer
Prior to a designated agency situation occurring
Prior to a designated agency situation occurring
Not quite. The disclosure must be provided before the agent gets into a designated agency situation. Let’s say an Agent A with Firm X represents a seller. Agent B, also with Firm X, has buyer client looking at properties. Agent A’s listing meets the criteria the buyer is looking for. At this point, the agents should obtain consent from both parties to act as designated agents.
It’s January, and the pool at Roger’s listing has been prepped for winter for several weeks. The homeowner assures Roger that it’s in good working order. Roger has no reason to disbelieve the homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and the new owners call to complain that the pump doesn’t work, and the pool drain appears to be clogged. What best describes what Roger has done? Fraud Negligent misrepresentation Roger didn't do anything wrong. Unintentional misrepresentation
Unintentional misrepresentation
Roger took his client’s word as the truth and ended up committing unintentional misrepresentation.
Jerome, a real estate licensee, works independently instead of under a sponsoring broker. This means that he is licensed as ________.
A broker
An associate broker
An associate broker with at least five years of experience
A salesperson
A broker
The broker’s license allows a licensee to work independently.
Buyer Tony is interested Seller Rilla’s property. Tony’s agent provides him with the Residential Property Disclosure Statement and Tony makes an offer which Rilla accepts. 2 weeks later, Tony discovers that there are plans to build a school next door to the house. He wants to terminate the contract because this wasn’t disclosed. Which of the following is INCORRECT?
If Rilla know about the school and failed to disclose it, Tony may terminate.
If this was a concern to Tony, it was up to him to research it prior to entering into the contract.
The law doesn’t require Rilla to make any disclosure regarding the planned school.
Tony may not terminate on this basis because Virginia is a “caveat emptor state.”
If Rilla know about the school and failed to disclose it, Tony may terminate.
Even if Rilla had prior knowledge of the school, she still wouldn’t have had to disclose it. Tony should have done his homework.
Which of these situations requires a dual agency disclosure?
An agent from Firm A represents both the buyer and the seller.
An agent from Firm A represents the buyer and an agent from Firm B represents the seller.
An agent from Firm A represents the buyer and another agent from Firm A represents the seller.
An agent from Firm A represents the buyer and the seller is unrepresented.
An agent from Firm A represents both the buyer and the seller.
Not quite. Dual agency occurs when the same agent represents both parties to the transaction. If different agents from the same firm represent both parties, this is technically a designated agency situation (but the broker sponsoring both agents does act as a dual agent).
How many required hours of education does the CIC manager license require?
100 hours of a comprehensive training program
20 hours of a comprehensive training program
30 hours of a comprehensive training program
80 hours of a comprehensive training program
80 hours of a comprehensive training program
The comprehensive training program for the CIC manager license must include at least 80 hours of instruction.
Gerald is selling a property that is not on public water and sewer systems. Per the purchase agreement he has signed with the buyers, he must provide a certificate proving that water from the well is safe, and that the sewage disposal system works. When must the certificate be dated?
Not more than 15 days prior to settlement
Not more than 20 days prior to settlement
Not more than 25 days prior to settlement
Not more than 30 days prior to settlement
Not more than 30 days prior to settlement
The certificate must be from the appropriate governmental agency or an acceptable private company and dated not more than 30 days prior to settlement.
Which agency is responsible for approving real estate schools and education?
Department of Education
Department of Environmental Quality
Department of Licensing and Regulations
Virginia Real Estate Board
Virginia Real Estate Board
The Virginia Real Estate Board is responsible for approving real estate schools and education.
