Virginia Seller and Buyer Agency Agreements (2) Flashcards
The ____________ is probably the most widely used instrument for representing a seller in the sale of a property. The ___________ or ____________ is technically a listing agreement for buyers and is now in wide use by licensees throughout the Commonwealth of Virginia and many other states.
Listing Agreement Buyer Agency or Buyer Representation Agreement
T/F. All listing must include a definite termination date?
True
T/F. Net listings are legal in Virginia?
False
T/F. There are standard listing or buyer representation forms used throughout the entire Commonwealth
False. Though the Virginia Association of REALTORS® and NVAR (Northern Virginia Association of REALTORS®) creates standard forms that are available in print and software versions and are used in many parts of the state.
T/F. In a listing form, the blanks are rarely optional?
True. All blanks should be filled in. If an item does not apply in a particular transaction, the notation N/A, not applicable, should be used. Finding accurate information for each item may require additional research.
T/F. Until a payoff statement is made available from the lender, some items on the listing forms may have to be entered as approximations, such as the mortgage balance?
True
A buyer’s agent establishes a brokerage relationship with a client through a ______________.
Buyer Representation Agreement
T/F. Oral listing or buyer representation agreement may be legal in Virginia and such an agreement would be enforceable?
False. Legal but unenforceable
Under the________________ mandated by the _______________, the seller of the residential real property shall furnish to the purchaser a residential property disclosure statement stating that the seller makes the following 6 representations as to the real property?
-Virginia Residential Property Disclosure Act -Virginia General Assembly 1) No representations or warranties on the condition 2) No representations on parcels adjacent to the subject parcel. 3) No representations on whether the provisions of any historic district ordinance affect the property. 4) No representations on whether the property contains any resource protection areas established in an ordinance implementing the Chesapeake Bay Preservation Act (§10.1-2100 et seq.). 5) No representations on information on any sexual offenders registered under Chapter 23 (§19.2-387 et seq.) of Title 19.2. 6) No pending enforcement actions on Uniform Statewide Building Code that affect the safe, decent, sanitary living conditions of the property.
T/F. The seller is required to disclose only known adverse material defects. Failure of a seller to disclose known adverse material defects does not relieve the seller of responsibility?
True
If the disclosure is received after contract ratification, the sole remedy for the purchaser is to terminate the contract by giving written notice to the seller. Once the disclosure is received by the buyer, notice to terminate must be given to the seller within1) ____ days if notice is hand-carried. 2) Within ____ days of postmark if the notice is mailed.
1) 3 2) 5
Under the Virginia Residential Property Disclosure Act, if not given the required disclosures prior to settlement, the purchaser may allow the contract to remain valid by..?
1) Provides a notice of waiver of rights to terminate the contract 2) Remains silent and does nothing
T/F. If the purchaser elects to terminate the contract in accordance with the disclosure law, he or she may do so with a slight penalty for broker services. Any monies already paid by the purchaser, such as earnest money deposits, is lost?
False. NO penalty involved, and earnest money deposits MUST be returned
Regarding the VA Residential Property Disclosure Laws, under what 3 conditions will the purchaser lose the right to terminate a contract if the termination right is not exercised?
1) At the time the purchaser makes a written application to obtain a mortgage loan, and the loan application contains a disclosure that the right to terminate shall end. 2) At settlement or occupancy, in the event of a sale. 3) At the time of occupancy in the event of lease with option to buy.
T/F. Regarding VA Residential Property Disclosure Act, Builders of new homes must disclose only known material defects that would constitute a violation of local building code?
True
When are builders required to disclose known material defects that would constitute a violation of local building codes?
1) before acceptance of an offer for purchase of an already completed house or 2) after issuance of an occupancy permit if the offer is accepted before or during construction.
T/F. The issuance of the disclosure relieves the builder of any other new home warranties or contractual obligations?
False
T/F. While the disclosure may be in any form, the builder may not satisfy the disclosure requirement by the use of a disclaimer statement?
True
In regard to Megan’s Law, disclosure forms, though not required for new home sales, transfers involving trusts, foreclosures, or residential leases, must contain a notice advising purchasers what?
Purchasers should exercise whatever due diligence they deem necessary with respect to information on violent sexual offenders registered with the Commonwealth *it is advocated that new disclosure language be added to all contracts and agency agreements.
Under the VA Residential Property Disclosure Act, 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 _______ from the date the disclosure was delivered. If no disclosure was delivered, action must be commenced within ________ of settlement, or within ________of occupancy in the event of lease with option to buy.
1 year 1 year 1 year
Regarding VA Residential Property Disclosure Act, certain transactions are exempt from the disclosure requirements which include?
1) Court-ordered Transfers to settle an estate; - pursuant to a writ of execution; - for foreclosures; - by a trustee in bankruptcy; - by condemnation through the right of eminent domain; and - by suit for specific performance. 2) Voluntary Transfers of Property -between co-owners; -between relatives; -under a divorce settlement; -to or from any government entity or public or quasi-public housing authority or agency; -as the result of an owner’s failure to pay federal, state, or local taxes; and involving the first sale of a new home.
T/F. Under VA Residential Property Disclosure, The owner is 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?
False
T/F. Under the VA Residential Real Property Disclosure Act regarding error, inaccuracy, or omission of information in the disclosure form, the owner is not liable if he or she reasonably believed the information to be correct and there was no gross negligence involved?
True
T/F. Under the VA Real Property Disclosure Act, unlike an owner, a real estate licensee can be liable for misrepresentation if he or she relied on information provided by others?
False
T/F. A licensee must disclose material adverse facts pertaining to the physical condition of the property that are actually known by the licensee?
True
