Virginia Real Estate Broker Exam — All Questions

What must a Virginia limited service agent's written brokerage agreement contain under Section 54.1-2138.1?

• a.A statement that the client waives all statutory duties
• b.A promise that another licensee will supply the gaps
• c.A schedule reducing the brokerage fee accordingly
• d.A list of the standard agent duties not being provided✓

Subsection A of Section 54.1-2138.1 permits limited service agency only under a written brokerage agreement in which the licensee discloses that status, gives "a list of the specific services that the licensee will provide to the client," and gives "a list of the specific duties of a standard agent... that the limited service agent will not provide to the client," conspicuously printed in bold or capitals and underlined or boxed. A blanket waiver is the opposite of what the statute wants, which is an itemized, informed consent. Nor does anyone step in to fill the gap; the model disclosure has the client acknowledge that neither the other party nor the other party's licensee "is under any legal obligation to assist the undersigned with the performance of any duties and responsibilities... not performed by the limited service agent." And nothing in the section ties the fee to the reduced service, which the parties negotiate for themselves.

Section 54.1-2139 permits dual agency in a Virginia residential transaction on what condition?

• a.Written consent of all parties, given in advance✓
• b.Approval of the arrangement by the Real Estate Board
• c.Written notice to both parties at settlement
• d.Consent of the client who is paying the brokerage fee

Subsection A of Section 54.1-2139 provides that a licensee may not act as a dual agent or dual representative "unless he has first obtained the written consent of all parties to the transaction given after written disclosure of the consequences of such dual agency or dual representation," and requires that disclosure to be given to both parties "prior to the commencement of such dual agency or dual representation." Notice at settlement comes after the whole representation has run, which is why subsection D refuses to count a disclosure given inside a purchase agreement or lease. The Board is not asked to approve individual transactions; it regulates licensees. And consent from the paying client alone leaves the other client unconsented, which is the very harm the section addresses. Subsection G lets a licensee withdraw without liability from a client who refuses to consent, and keep representing the other client.

A Virginia principal broker assigns two affiliated licensees as designated representatives for the buyer and the seller in one transaction. What is the broker's own status?

• a.A dual representative, as the article provides✓
• b.A standard agent for whichever client signed first
• c.A limited service agent for both of the clients
• d.A customer of the firm, owed ministerial acts only

Subsection A of Section 54.1-2139.1 allows a principal or supervising broker to assign different affiliated licensees to different clients in the same residential transaction, and says that using them "shall not constitute dual agency or representation if a designated agent or representative is not representing more than one client in a particular real estate transaction; however, the principal or broker who is supervising the transaction shall be considered a dual agent or representative." Order of signing has nothing to do with it, and treating the broker as a standard agent for one side would leave the other side's client supervised by an adverse agent. Limited service agency is a different arrangement altogether, created by a brokerage agreement that names duties the licensee will not perform. And the broker is plainly not a customer of the broker's own firm. The same subsection bars the designated representatives from sharing their clients' confidential information with each other, though they may share it with their broker.

A Virginia seller's firm offers to share its fee with the buyer's broker, and the buyer's broker accepts. What does Section 54.1-2140 say that establishes?

• a.That the buyer's broker now also represents the seller
• b.That a dual agency has arisen requiring written consent
• c.That no brokerage relationship arises from the payment✓
• d.That the buyer's broker is a subagent of the listing firm

Section 54.1-2140 is a single sentence: "the payment or promise of payment or compensation to a real estate broker does not create a brokerage relationship between any broker, seller, landlord, buyer or tenant." Representation of the seller would have to come from a brokerage agreement with the seller under Section 54.1-2137 C, not from a check. Dual agency likewise requires brokerage relationships with both parties and the advance written consent of all of them under Section 54.1-2139 A, so a fee split does not trip it. Subagency is not created either; Section 54.1-2144 abrogates the common law of agency in brokerage relationships to the extent it conflicts with the article, and the article builds relationships out of written agreements. Section 54.1-2141 does the same job for common source information companies, so using a multiple listing service creates no relationship with the seller either.

From whom may a Virginia salesperson accept compensation for licensed real estate activity?

• a.From any party to the transaction who agrees in writing
• b.From the listing firm, whenever a fee split is published
• c.From the settlement agent, out of the closing proceeds
• d.From the licensee's own principal or supervising broker✓

Subdivision A 2 of 18VAC135-20-280 makes it an improper financial transaction to accept "a commission, fee, compensation, or other valuable consideration, as a real estate salesperson or associate broker, for any licensed real estate activity from any person or entity except the licensee's principal broker or supervising broker at the time the licensed real estate activity was performed without the prior written consent of the licensee's principal broker." A client's written promise does not satisfy that, because the consent the regulation names is the broker's. Taking the money from the settlement agent routes it around the firm entirely, and subdivision 12 a of 18VAC135-20-260 separately treats diverting commission away from the firm as dishonest conduct. A published fee split is an offer between firms, and it is paid to the cooperating broker rather than to that broker's salesperson. Subdivision A 1 of the same regulation bars paying anyone unlicensed for work that requires a license.

Which act by a Virginia licensee violates the Virginia Fair Housing Law?

• a.Presenting every written offer received to the seller
• b.Asking every buyer client for mortgage pre-approval
• c.Charging a percentage commission on the sale price
• d.Steering buyers toward areas by protected class✓

Subdivision A 4 of Section 36-96.3 makes it unlawful to "represent to any person because of race, color, religion, national origin, sex, elderliness, familial status, source of funds, sexual orientation, gender identity, military status, or disability that any dwelling is not available for inspection, sale, or rental when such dwelling is in fact so available," and subdivision A 1 covers otherwise making a dwelling unavailable on those grounds; steering does both. Asking for pre-approval is a financial qualification step, and it becomes a fair housing problem only when applied selectively because of who a buyer is. A percentage commission implicates no protected characteristic at all. Presenting every offer is a duty owed to the client under subdivision A 2 c of Section 54.1-2131, and it is the opposite of selective treatment. 18VAC135-20-260 8 makes a final finding of a fair housing violation independent grounds for Board discipline.

The Virginia Fair Housing Law protects against discrimination on the basis of "elderliness." How is that term defined?

• a.A person who has attained the age of 62 years
• b.A person who has retired from full-time employment
• c.A person who receives Social Security retirement
• d.A person who has attained the age of 55 years✓

Section 36-96.1:1 defines "elderliness" as "an individual who has attained his fifty-fifth birthday." Age 62 appears in a different place, clause (ii) of subsection A of Section 36-96.7, which is one route by which housing qualifies as housing for older persons and therefore escapes the familial status protection. Retirement and receipt of a retirement benefit are not in the definition at all; the test is a birthday, not employment or income status. Elderliness is one of the classes Virginia protects beyond the federal Fair Housing Act, along with source of funds, sexual orientation, gender identity and military status, and it appears in the prohibitions in Section 36-96.3, in the void-covenant provision in Section 36-96.6 and in the exemption in subsection C of Section 36-96.2 that limits a religious organization's preference.

When may a Virginia landlord lawfully refuse a rental applicant because of the applicant's source of funds?

• a.Never, since source of funds is a protected class
• b.When the owner owns no more than four rental units✓
• c.Whenever the applicant cannot pay a security deposit
• d.Whenever the funds come from a government program

Subsection I of Section 36-96.2 says nothing in the chapter prohibits an owner or managing agent from denying or limiting a rental "because of such person's source of funds, provided that such owner does not own more than four rental dwelling units in the Commonwealth at the time of the alleged discriminatory housing practice," and closes the obvious loophole by withdrawing the exemption from an owner holding more than a 10 percent interest in more than four units. So the protection is real but not absolute, which is why the flat "never" answer is wrong. The source of the money is irrelevant to the exemption, and Section 36-96.1:1 defines source of funds broadly as any lawful source "including any assistance, benefit, or subsidy program, whether such program is administered by a governmental or nongovernmental entity." Ability to pay a deposit is an ordinary financial screen rather than a source-of-funds question. Subsection J adds a separate allowance where the source is not approved within 15 days of the request for tenancy approval.

A Virginia advertisement for a rental uses symbols associated with one religion but adds a general nondiscrimination disclaimer. How does Section 36-96.3 treat it?

• a.The disclaimer cures it, so the advertisement is lawful
• b.The symbols are prima facie evidence of illegal preference✓
• c.It is lawful because symbols are not words of preference
• d.It is unlawful only if a complainant proves actual intent

Subdivision A 3 of Section 36-96.3 says "the use of words or symbols associated with a particular religion, national origin, sex, or race shall be prima facie evidence of an illegal preference under this chapter that shall not be overcome by a general disclaimer." The statute names the disclaimer and rejects it in the same breath, so the first answer fails on the face of the text. Symbols are named alongside words, so the medium does not save the advertisement either. And prima facie evidence is precisely a rule that relieves the complainant of proving intent at the outset; requiring proof of actual intent would reverse the burden the subdivision creates. The same subdivision adds one carve-out worth knowing: "reference alone to places of worship, including churches, synagogues, temples, or mosques, in any such notice, statement, or advertisement shall not be prima facie evidence of an illegal preference."

A recorded Virginia subdivision declaration contains a covenant restricting ownership by race. What is its effect today?

• a.It binds any owner who accepted the deed containing it
• b.It is void and contrary to the public policy of Virginia✓
• c.It is valid until a court enters an order striking it
• d.It is valid until the association votes to amend it

Subsection A of Section 36-96.6 declares that any restrictive covenant purporting to restrict occupancy or ownership on the basis of race, color, religion, national origin, sex, elderliness, familial status, sexual orientation, gender identity, military status or disability, "whether heretofore or hereafter included in an instrument affecting the title to real or leasehold property, are declared to be void and contrary to the public policy of the Commonwealth." Acceptance of the deed changes nothing, because a void covenant binds nobody. No court order or association vote is needed to strip it of effect, though subsection B lets a person decline to accept a document containing such a covenant without breaching the contract to purchase. Subsection C bars anyone from soliciting or accepting compensation for removing one, with liability of three times the compensation or $500, whichever is greater, plus fees. Subdivision A 6 of Section 36-96.3 separately makes it unlawful to honor or attempt to honor such a covenant.

Within what period must a complaint under the Virginia Fair Housing Law be filed with the Board?

• a.Within 180 days after the practice occurred or ended
• b.Within two years after the practice occurred or ended
• c.Within one year after the practice occurred or ended✓
• d.Within three years after the practice occurred or ended

Subsection A of Section 36-96.9 requires that a complaint "shall be filed with the Board in writing within one year after the alleged discriminatory housing practice occurred or terminated." Two years is the separate deadline in subsection A of Section 36-96.18 for an aggrieved person to commence a civil action in state or federal court, which may be brought whether or not an administrative complaint was ever filed. One hundred and eighty days is also a real number in this chapter, but subsection B uses it for something else: a civil action may be filed no later than 180 days after the conclusion of the administrative process, or within the two-year window, whichever is later. Three years appears nowhere. Under Section 36-96.20, a reasonable cause determination against a licensee sends the Board first to conference and conciliation and then, if that fails, to an administrative hearing on the license itself.

Before any excavation or demolition in Virginia, Section 56-265.17 requires the excavator to do what?

• a.Obtain a permit from the local zoning administrator
• b.Notify each utility operator by certified mail
• c.Submit a locate request to the notification center✓
• d.Mark the buried lines using the operators' colors

Subsection A of Section 56-265.17 says "no person shall make or begin any excavation or demolition without first submitting a locate request to the notification center," and adds that "submission of a locate request shall be deemed to be notice to each operator who is a member of the notification center." That deeming provision is why contacting operators directly is neither required nor sufficient; the center distributes the notice and tells the excavator which utilities were notified. Zoning permits govern what may be built and where, and have nothing to do with protecting buried lines. Marking the utility lines is the operator's job, not the excavator's, and subsection B lets work begin only after the positive response system shows every operator has marked its lines or reported none present; the only marking subsection E asks of the excavator is white paint showing the route of the proposed work, and only where a specific location cannot be given. Under the same subsection A, an excavator who willfully fails to submit a locate request owes treble repair costs, with punitive damages capped at $10,000 in any single cause of action.

A Virginia unit owners' association wants to charge fees when an owner leases a condominium unit. What does Section 55.1-1973 permit?

• a.A monthly fee set by the association's board
• b.Any fee authorized by a majority of unit owners
• c.A refundable deposit collected from the tenant
• d.Fees capped at $50 during the term of any lease✓

Subdivision A 2 of Section 55.1-1973 bars a unit owners' association from charging "a rental fee, application fee, or other processing fee of any kind in excess of $50 during the term of any lease," and subdivision A 3 separately bars any annual or monthly rental fee not expressly authorized in Section 55.1-1904, which disposes of the monthly-fee answer. Subdivision A 5 bars the association from charging "any deposit from the unit owner or the tenant of the unit owner," refundable or not. And a vote of the owners cannot enlarge these limits, because subsection A restricts the association "except as expressly authorized in this chapter or in the condominium instruments or as otherwise provided by law." Subsection B does let the association require the owner to supply the names and contact details of tenants and occupants, vehicle information, and the tenant's acknowledgment of the association's rules.

What is the maximum security deposit a Virginia landlord may demand under the Residential Landlord and Tenant Act?

• a.Two months' periodic rent✓
• b.One month's periodic rent
• c.Three months' periodic rent
• d.Any amount the lease states

Subsection A of Section 55.1-1226 provides that "no landlord may demand or receive a security deposit, however denominated, in an amount or value in excess of two months' periodic rent." One month is below the statutory ceiling, so a landlord charging it is complying rather than being limited to it, and three months exceeds what the section allows. Freedom of contract does not reach this term; the phrase "however denominated" is there to stop a landlord relabelling the excess as something other than a deposit. The same subsection requires the landlord to itemize the deposit and any deductions in a written notice to the tenant within 45 days after the later of the termination date or the date the tenant vacates. Subsection B adds that where the landlord or managing agent is a real estate licensee, complying with that subsection is deemed compliance with Section 54.1-2108 and the Real Estate Board's escrow regulations.

A company offers management services to condominium and homeowner associations in Virginia. What does the Common Interest Communities Act require?

• a.A common interest community manager license from its Board✓
• b.Registration of each association it manages with DPOR
• c.A property management endorsement on a salesperson license
• d.A real estate broker license from the Real Estate Board

Subsection A of Section 54.1-2346 provides that, unless exempted by Section 54.1-2347, "any person, partnership, corporation, or other entity offering management services to a common interest community... shall hold a valid license issued in accordance with the provisions of this article prior to engaging in such management services," issued by the Common Interest Community Board. A real estate broker license comes from a different board under a different chapter and does not authorize this activity. Association registration is a separate obligation of the associations themselves and does not license the manager. Virginia issues no property management endorsement on a salesperson license. Subsection C conditions issuance and renewal on employees with principal or supervisory responsibility holding a Board certificate within two years of employment or working under a certificated employee's direct supervision, and subsection D requires a fidelity bond or employee dishonesty policy of at least $10,000 and up to $2 million.

Under the Virginia Property Owners' Association Act, when may an association's board impose a late fee on an unpaid assessment?

• a.After 60 days, capped by the penalty in Section 58.1-3915✓
• b.After 30 days, at a rate the board sets by resolution
• c.Immediately, on the day after the assessment falls due
• d.After 90 days, and only once the lien has been recorded

Section 55.1-1824 says that except to the extent the declaration or rules provide otherwise, "the board may impose a late fee that does not exceed the penalty provided in Section 58.1-3915 for any assessment or installment that is not paid within 60 days of the due date." Both the waiting period and the ceiling matter: charging on the first day late, or at 30 days at a rate the board picks for itself, ignores the 60-day floor and the statutory cap on the amount. Ninety days is longer than the section requires, and recording an assessment lien under Section 55.1-1833 is a separate collection step that no late fee waits on. The opening words also matter in practice, because a declaration may set different terms, which is one reason the resale certificate under Section 55.1-2310 must include the governing documents and a statement of assessments and other fees due.