Virginia Real Estate Contracts and Documentation (7)

Question 1

According to the Code of Virginia, under what condition can a real estate licensee, such as a broker or salesman, prepare written contracts?

Answer 1

• contract must be incidental to a specific real estate transaction
• there is no additional charge for preparing the contract.

Question 2

T/F. In a situation where either a buyer or seller contacts a licensee to merely prepare a sales contract for a fee, the licensee may be guilty of practicing law without a license?

Answer 2

True, because the preparation of the contract was not incidental to the transaction.

Question 3

T/F. Regarding VA contracts, the actual contract used for the purchase and sale of real property may take any form. The only requirement is that it be in enough detail to clearly state the agreement between the parties?

Answer 3

True

Question 4

T/F. Real estate brokers and salespersons should try to explain the legal technicalities of a contract towards a client?

Answer 4

False.

- could subject the licensee to legal action later.

Question 5

T/F. It is customary for real estate licensees to assist buyers and sellers with the preparation of the contract by filling in the blanks on the form.

Answer 5

True

Question 6

As with the listing agreement form, all __________ should be filled in. If the item does not apply, the notation ___________ should be inserted.

Answer 6

blanks

N/A (not applicable)

Question 7

Regarding VA contracts, for a contingency to be effectual, it must contain?

Answer 7

1) An expiration date or time

2) A list or description of option(s) available to the parties

Question 8

In regards to VA statutory contract contingencies, if a property is a condominium or is in a subdivision bound by a property owners’ association (POA), what contingencies must be provided?

Answer 8

• condominium resale packet must be provided

- POA disclosure packet must be provided

Question 9

In regards to VA statutory contract contingencies, the Virginia Condominium Act requires that the seller request the condominium ____________ regarding the referenced property and furnish it to the buyer. By the provisions of Virginia Code Section 55-79.97 this packet must be delivered within ______ of the request. Payment may accompany the request, or in certain circumstances the fee will then be assessed against the unit and paid at settlement rather than in advance.

Answer 9

resale packet

14 days

Question 10

In regards to lead-based paint, the ingestion of lead into the human body is a known neurological hazard. Federal law requires the disclosure of lead-based paint and/or lead-based paint hazards for properties constructed prior to ___________.

Answer 10

January 1, 1978

Question 11

In regards to VA disclosed dual representation, the client’s ____________ on the written disclosure form is presumptive evidence of the brokerage relationship.

Answer 11

signature

Question 12

T/F. A licensee may not continue to represent in other transactions the client who refused dual representation?

Answer 12

False

Question 13

The Virginia Residential Property Disclosure Act requires that the owner of a residential real property consisting of not less than ______ nor more than ______ dwelling units, whenever the property is to be sold or leased with an option to buy, furnish to the purchaser a ______________.

Answer 13

1
4
Residential Property Disclosure Statement

Question 14

The Virginia Residential Property Disclosure Statement provides that the seller makes no warranties or representations regarding certain things, however, what are some things that a seller DOES represent?

Answer 14

1) There are no pending building code enforcement actions involving the property
2) Location in which there is a military air installation
3) Availability of septic system operating permits

Question 15

The English law passed in ____ known as the ______________ requires that the transfer of real estate be in writing.

Answer 15

1667

Statute of Frauds

Question 16

T/F. Contracts for the sale of real estate or for a lease on real property for more than one year must be in writing to be enforceable?

Answer 16

True

Question 17

In regards to contract procedure, use of a standard form excuses the licensee from pointing out to both parties that the contract is a legally binding document and that legal advice should be sought if either party has legal questions?

Answer 17

False

The parties may make the agreement contingent on review and approval by an attorney.

Question 18

In regards to VA contract procedure, sometimes, a party cannot be present at the closing and must be represented by an ___________ acting under a power of attorney

Answer 18

attorney-in-fact

Question 19

T/F. In VA, a general power of attorney will suffice?

Answer 19

False. The power of attorney must specify the transaction and the parties involved. Must also be notarized and recorded with the deed.

Question 20

T/F. In regards to contract procedures for spousal consent, if property is owned in severalty and the owner is married, if one or the other spouse does not sign, the courts will not order specific performance on the contract unless the buyer is willing to accept a deed that remains subject to the spousal interest?

Answer 20

True

Question 21

In regarding titles in VA, The buyer under a real estate sales contract expects to receive _____________ to the property from the seller?

Answer 21

marketable title

Question 22

T/F. Marketable Title = Insurable Title?

Answer 22

False. Because a title insurance policy may list exceptions against which it does not insure.

Question 23

Regarding contract procedures, when the buyer and seller have ratified, that is, signed, the sales contract, the buyer’s interest is called ___________, which gives the buyer an insurable interest in the property.

Answer 23

equitable title

Question 24

T/F. Once the buyer receives equitable title, Virginia law places the risk of damage to the property during this period on the buyer, though most sales contracts in Virginia provide that the seller bears the risk of loss?

Answer 24

True

Question 25

Regarding warranties in VA, this principle of “let the buyer beware” is still the law in Virginia regarding previously owned homes?

Answer 25

Caveat Emptor