Virginia Real Estate Salesperson Exam — All Questions

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2 questions

Practice of Real Estate

A licensee tells prospective buyers of a particular background that a certain neighborhood 'would be a better fit for them' and steers them away from others. This practice is called:

  • a.Farming
  • b.Puffing
  • c.Novation
  • d.Steering

Steering is directing prospective buyers toward or away from particular neighborhoods based on a protected characteristic. It violates fair housing law. Puffing is nonfactual sales talk; novation substitutes a new contract or party.

Practice of Real Estate

A broker must generally keep a client's earnest money deposit in a:

  • a.Personal money market fund
  • b.Separate escrow or trust account
  • c.Petty cash box at the office
  • d.Joint account with the seller

Client funds such as earnest money must be held in a separate escrow or trust account, kept apart from the broker's own operating and personal funds. Mixing them (commingling) is a serious license law violation.

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