Virginia Real Estate Salesperson Exam — All Questions

Real estate licensees in Virginia are regulated by the Virginia Real Estate Board, which operates under which state department?

• a.The Virginia Association of REALTORS membership board
• b.The Department of Professional and Occupational Regulation✓
• c.The Office of the Attorney General, consumer protection
• d.The Virginia Department of Housing and Community Development

The Virginia Real Estate Board is one of the regulatory boards within the Department of Professional and Occupational Regulation (DPOR). The Board licenses salespersons and brokers and enforces Virginia real estate law and regulations.

In Virginia, a real estate salesperson must conduct licensed activity:

• a.Under the supervision of a licensed supervising broker
• b.As a wholly independent contractor with no supervision✓
• c.Only after two years of documented sales experience
• d.Under the direct supervision of the Real Estate Board

A Virginia salesperson must be affiliated with and supervised by a principal or supervising broker. The broker is responsible for the salesperson's activity and for handling escrow funds and records; a salesperson may not operate independently.

When does a Virginia salesperson, broker, or firm license expire?

• a.One year from the last day of its issue month
• b.Two years from the last day of the month it was issued✓
• c.Two years from the exact date the board issued it
• d.On June 30 of each even-numbered year for everyone

Licenses expire two years from the last day of the month in which they were issued, as shown on the license; a concurrent broker license instead tracks the original broker license. June 30 of each even-numbered year is the Recovery Fund's biennial period, not the license term. Cite: 18 VAC 135-20-90.

A Virginia licensee misses the license expiration date. When does a reinstatement fee become payable?

• a.If renewal is not complete within 30 days of expiry✓
• b.The moment the expiration date on the license passes
• c.If renewal is not complete within 60 days of expiry
• d.If renewal is not complete within 90 days of expiry

The regulation gives a 30-day window after the expiration date in which the ordinary renewal fee still works; after that the reinstatement fee is required. Cite: 18 VAC 135-20-140 B.

How long after expiration may a Virginia license still be reinstated?

• a.Up to two years, after which reapplication is required
• b.Up to six months, after which reapplication is required
• c.Indefinitely, provided all back fees are finally paid
• d.Up to one year, after which reapplication is required✓

A license may be reinstated for up to one year following the expiration date; the reinstated license keeps the same number and is dated two years from the previous expiration. After one year it cannot be reinstated at all and the person applies as a new applicant under current education and examination rules. Cite: 18 VAC 135-20-140 C.

Within what period must a Virginia salesperson report a change of name or home address to the board?

• a.10 calendar days of the change, in writing
• b.60 calendar days of the change, in writing
• c.30 calendar days of the change, in writing✓
• d.At the next renewal of the license, in writing

Salespersons and individual brokers must report name and address changes in writing within 30 calendar days. The 10-day deadline belongs to a different duty: notifying the board that a licensee's active status with the firm has ended. Cite: 18 VAC 135-20-170 A 1.

A salesperson leaves a Virginia firm. Who must notify the board, and how quickly?

• a.The salesperson, within 30 calendar days
• b.The principal broker, within 10 calendar days✓
• c.The principal broker, within 30 calendar days
• d.The salesperson, within 10 business days

The duty falls on the sole proprietor or principal broker, who must give the board the licensee's name, license number and termination date within 10 calendar days of the termination or of learning of the status change. Cite: 18 VAC 135-20-170 B 1.

How long does a Virginia licensee have to produce transaction records the board has requested?

• a.21 days, extendable for extenuating circumstances
• b.30 days, extendable for extenuating circumstances
• c.5 business days, with no extension ever available
• d.10 days, extendable for extenuating circumstances✓

Records, bank records and signature cards must be produced within 10 days of the request, though the board may extend that on a showing of extenuating circumstances. A licensee has 21 days to answer any other board inquiry. Cite: 18 VAC 135-20-240 A and B.

A Virginia licensee is convicted of a felony. What does board regulation require of the licensee?

• a.Written notice to the board within 30 days✓
• b.Written notice to the board within 90 days
• c.Written notice to the board within 10 days
• d.Disclosure at the licensee's next renewal

Failing to inform the board in writing within 30 days of a felony conviction, or of a qualifying misdemeanor conviction, is itself a prohibited act. The same 30-day written notice applies to disciplinary action taken against any professional or occupational license. Cite: 18 VAC 135-20-260 (4), (5), (6) and (7).

What is the most a single claimant may recover from the Virginia Real Estate Transaction Recovery Fund on one transaction?

• a.$50,000, whatever the unpaid judgment may be
• b.$10,000, whatever the unpaid judgment may be
• c.$20,000, whatever the unpaid judgment may be✓
• d.$100,000, whatever the unpaid judgment may be

One claimant is capped at $20,000 for a single transaction regardless of the number of claimants or the size of the unpaid judgment. The $50,000 figure is the aggregate for all claimants arising out of that one transaction. Cite: Code of Virginia 54.1-2116 A and B.

Claims against the Recovery Fund from one Virginia regulant's conduct across several transactions are capped at what amount per biennial license period?

• a.$50,000, prorated among claimants if exceeded
• b.$100,000, prorated among claimants if exceeded✓
• c.$250,000, prorated among claimants if exceeded
• d.$20,000, prorated among claimants if exceeded

The multi-transaction aggregate for one regulant is $100,000 per biennial license period, the periods expiring June 30 of each even-numbered year. If claims exceed it, the board prorates the $100,000 in proportion to the unpaid judgments. Cite: Code of Virginia 54.1-2116 C.

When must a verified Recovery Fund claim be filed with the Director after a final judgment against a Virginia regulant?

• a.No later than 12 months after entry of judgment✓
• b.No later than six months after entry of judgment
• c.No later than 24 months after entry of judgment
• d.At any time before the judgment debtor dissolves

The verified claim must reach the Director no later than 12 months after entry of the final judgment from which no further right of appeal exists. Where the debtor went bankrupt, the claim is due within 12 months of the discharge or dismissal. Cite: Code of Virginia 54.1-2114 B 3 and B 5.

Which amounts are excluded from an unpaid judgment when a Virginia Recovery Fund claim is computed?

• a.Court costs and attorney fees
• b.Compensatory damages and costs
• c.Attorney fees and lost commissions
• d.Interest and punitive damages✓

Sums representing interest or punitive damages come out of the claim; court costs and attorney fees may be included in it. Cite: Code of Virginia 54.1-2116 D.