Virginia Seller and Buyer Agency Agreements (2)

Question 1

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.

Answer 1

Listing Agreement

Buyer Agency or Buyer Representation Agreement

Question 2

T/F. All listing must include a definite termination date?

Answer 2

True

Question 3

T/F. Net listings are legal in Virginia?

Answer 3

False

Question 4

T/F. There are standard listing or buyer representation forms used throughout the entire Commonwealth

Answer 4

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.

Question 5

T/F. In a listing form, the blanks are rarely optional?

Answer 5

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.

Question 6

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?

Answer 6

True

Question 7

A buyer’s agent establishes a brokerage relationship with a client through a ______________.

Answer 7

Buyer Representation Agreement

Question 8

T/F. Oral listing or buyer representation agreement may be legal in Virginia and such an agreement would be enforceable?

Answer 8

False. Legal but unenforceable

Question 9

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?

Answer 9

• 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.

Question 10

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?

Answer 10

True

Question 11

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.

Answer 11

1) 3

2) 5

Question 12

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..?

Answer 12

1) Provides a notice of waiver of rights to terminate the contract
2) Remains silent and does nothing

Question 13

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?

Answer 13

False. NO penalty involved, and earnest money deposits MUST be returned

Question 14

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?

Answer 14

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.

Question 15

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?

Answer 15

True

Question 16

When are builders required to disclose known material defects that would constitute a violation of local building codes?

Answer 16

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.

Question 17

T/F. The issuance of the disclosure relieves the builder of any other new home warranties or contractual obligations?

Answer 17

False

Question 18

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?

Answer 18

True

Question 19

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?

Answer 19

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.

Question 20

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.

Answer 20

1 year
1 year
1 year

Question 21

Regarding VA Residential Property Disclosure Act, certain transactions are exempt from the disclosure requirements which include?

Answer 21

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.

Question 22

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?

Answer 22

False

Question 23

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?

Answer 23

True

Question 24

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?

Answer 24

False

Question 25

T/F. A licensee must disclose material adverse facts pertaining to the physical condition of the property that are actually known by the licensee?

Answer 25

True

Question 26

T/F. In regards to stigmatized properties in VA, this information is required and must be disclosed to buyers?

Answer 26

False

Question 27

T/F. A licensee who represents a seller and discloses stigmatizing information to a buyer could be construed as having breached his or her responsibilities to the client if the buyer cancels the contract due to the disclosure?

Answer 27

True

Question 28

T/F. In VA, the only topic of disclosure that is specifically prohibited is any discussion of HIV or AIDS?

Answer 28

True

Question 29

If information is disclosed regarding persons infected with HIV, a licensee could be in violation of ____________ and the_____________.

Answer 29

fair housing laws

federal privacy act

Question 30

T/F. In VA, a broker who enlists an assistant broker in providing brokerage services to a client is not liable for that broker’s misrepresentations unless he or she knew or should have known about them and failed to take reasonable corrective steps?

Answer 30

True

Question 31

In VA, a broker is liable for the negligence, gross negligence, or intentional acts of an assisting broker or the assisting broker’s licensee?

Answer 31

False

Question 32

T/F. In Va, both clients and licensees are fully liable for their own misrepresentations, negligence, gross negligence, or intentional acts in connection with a real estate transaction?

Answer 32

True