Virginia Real Estate Broker Exam — All Questions
3 questions
A Virginia broker who receives a buyer's earnest-money deposit must:
- a.Deposit it into the brokerage operating account
- b.Place it in a separate escrow account and not commingle it with the broker's own funds✓
- c.Keep it in cash until closing
- d.Give it to the seller immediately
A Virginia broker holding client money such as earnest money must place it in a separate escrow account and must not commingle it with personal or business funds or convert it. The Board's regulations set requirements for deposits and account maintenance, and the broker may disburse the funds only as the contract and the parties' agreement allow.
In Virginia, mixing client trust money with the broker's own funds is known as commingling, and it is:
- a.Encouraged to simplify bookkeeping
- b.Permitted for small amounts
- c.A serious violation of license law✓
- d.Required by the Real Estate Board
Commingling, mixing client trust money with the broker's own funds, and conversion, using client money for the broker's purposes, are serious violations of Virginia license law. The broker exam includes more escrow items than the salesperson exam because the broker controls the escrow account and is responsible for its integrity.
When the parties make conflicting demands for an escrow deposit a Virginia broker is holding, the broker should:
- a.Act as a neutral party and not release the funds unilaterally, retaining them until the dispute is resolved as allowed by the regulations✓
- b.Give the money to the seller because the property was listed first
- c.Keep the deposit as a commission
- d.Release the funds to whoever calls first
A Virginia broker holding a disputed deposit acts as a neutral party and must not release the funds unilaterally. The Board's regulations provide lawful ways to handle a disputed deposit, and the broker may retain the funds until the parties resolve the dispute or a court directs disbursement. Brokers must also keep accurate escrow records and reconcile the account.