Virginia Real Estate Salesperson Exam — All Questions
13 questions
Virginia law generally requires that a brokerage relationship between a licensee and a client be:
- a.Free of any disclosure
- b.Automatically dual agency
- c.Only oral to be valid
- d.Established in a written brokerage agreement✓
Virginia requires brokerage (agency) relationships to be set out in a written agreement specifying the services and duties. Licensees must also disclose their brokerage relationship to the other party in a transaction so everyone understands who represents whom.
Virginia's Residential Property Disclosure Act is best described as a system in which:
- a.The seller gives a disclosure statement; buyers beware
- b.The seller warrants the condition of the property fully
- c.The seller must repair all defects found by inspection✓
- d.The seller must supply a professional inspection report
Virginia follows a buyer-beware approach: under the Residential Property Disclosure Act the seller provides a disclosure statement notifying buyers that the property is sold as is with respect to certain matters and that buyers should exercise due diligence, including obtaining inspections.
A Virginia brokerage agreement is signed but omits a termination date. What follows?
- a.It is void and unenforceable from the very outset
- b.It terminates 90 days after the date of the agreement✓
- c.It terminates 30 days after the date of the agreement
- d.It runs until either party cancels it in writing
Brokerage agreements must be in writing and state a definite termination date; where one does not, the statute ends the agreement 90 days after its date. Residential property management agreements carry the same 90-day default. Cite: Code of Virginia 54.1-2137 C 1; 54.1-2135 E 1.
Under Virginia law, when must a licensee engaged by a buyer enter into a brokerage agreement with that buyer?
- a.Before writing the buyer's first written offer
- b.At the first substantive talk about financing
- c.Before showing property to the prospective buyer✓
- d.Before the buyer's mortgage application is submitted
The first listed duty of a licensee engaged by a buyer is to enter into a brokerage agreement with the prospective buyer prior to showing property to that buyer. Cite: Code of Virginia 54.1-2132 A 1.
What does Virginia require before a licensee may act as a dual agent in a residential transaction?
- a.Written consent of all parties before it commences✓
- b.Oral consent from both parties before settlement
- c.Written notice to the Real Estate Board in advance
- d.Written consent of the seller and notice to buyer
A licensee may not act as a dual agent or dual representative without first obtaining the written consent of all parties, given after written disclosure of the consequences, and the disclosure must reach both parties before the dual agency begins. Cite: Code of Virginia 54.1-2139 A.
A Virginia dual agency disclosure fails to comply with the statute when it is what?
- a.Printed in bold capital letters inside a separate box
- b.Combined with other required written disclosures
- c.Given in the brokerage agreement with that client
- d.Placed in the purchase agreement, or left unsigned✓
The disclosure does not comply if it is unsigned by the client or given in a purchase agreement, lease or other transaction document. It may be combined with other disclosures if made conspicuous, and the statute expressly contemplates it appearing in the brokerage agreement itself. Cite: Code of Virginia 54.1-2139 D; 54.1-2137 C 5.
When must a Virginia licensee disclose a brokerage relationship to an unrepresented buyer after substantive discussion of a property?
- a.In writing, no later than the settlement date
- b.In writing, by the time specific assistance begins✓
- c.Orally at the first showing; writing may follow
- d.In writing, when a written purchase offer is prepared
Disclosure must be in writing at the earliest practical time and in no event later than the time specific real estate assistance is first provided. If combined with other information it must be conspicuous, in bold, all capitals, underlined or boxed. Cite: Code of Virginia 54.1-2138 A; 18 VAC 135-20-220 A 2.
Virginia's brokerage relationship disclosure requirement does not reach which lease transactions?
- a.Leases running for terms of less than two months✓
- b.Leases with terms of less than twelve months
- c.Leases of commercial space of any duration
- d.Leases of single-family homes of any length
The disclosure duty does not apply to lessors or lessees in single or multifamily residential units for lease terms of less than two months. Cite: Code of Virginia 54.1-2138 B; 18 VAC 135-20-220 B 2.
After a Virginia brokerage agreement ends, what does the licensee still owe the former client absent a written agreement otherwise?
- a.Continued promotion of the client's interests for 90 days
- b.An accounting of funds and continued ordinary care
- c.An accounting of funds and continued confidentiality✓
- d.Continued confidentiality and continued ordinary care
On termination, expiration or completion, the licensee owes no further duties except to account for all money and property relating to the relationship and to keep the client's personal and financial information confidential. Ordinary care is a duty during the relationship, not after it. Cite: Code of Virginia 54.1-2137 D.
How does Virginia's brokerage relationships article treat the common law of agency?
- a.It supplements the common law in every respect
- b.It applies only to commercial real estate deals
- c.It adopts the common law as the governing rule
- d.It abrogates the common law where inconsistent✓
The common law of agency relative to brokerage relationships in real estate transactions is expressly abrogated to the extent it is inconsistent with the article. Cite: Code of Virginia 54.1-2144.
A Virginia limited service agent's written brokerage agreement must do what?
- a.Guarantee the other agent will assist the client
- b.List the standard-agent duties it will not provide✓
- c.Be approved in advance by Real Estate Board staff
- d.Be confined to commercial real estate transactions only
The agreement must disclose that the licensee acts as a limited service agent, list the specific services the licensee will provide, and list the specific standard-agent duties the licensee will not provide, all set out conspicuously. Cite: Code of Virginia 54.1-2138.1 A.
Does a Virginia buyer's agent form a brokerage relationship with the seller by using a multiple listing service?
- a.No; using a common source information company does not✓
- b.Yes; participating in an MLS creates a subagency by law
- c.Yes, unless the agent files a written disclaimer first
- d.No, but only where the seller has no listing agent
No licensee representing a buyer or tenant is deemed to have a brokerage relationship with a seller, landlord or other licensee solely by reason of using a common source information company, which is defined to include multiple listing services. Cite: Code of Virginia 54.1-2141; 54.1-2130.
A Virginia client refuses to consent to a disclosed dual agency. What may the licensee do?
- a.Proceed anyway after documenting the refusal in writing
- b.Continue as a limited service agent for both parties
- c.Withdraw from that client without incurring liability✓
- d.Ask the board for written permission to keep going
The licensee may withdraw without liability from representing the client who refuses, which terminates that brokerage relationship. Withdrawing does not stop the licensee from continuing to represent the other client in the transaction. Cite: Code of Virginia 54.1-2139 G; 54.1-2137 A.