Virginia Real Estate Salesperson Exam — All Questions

When a Virginia broker holds earnest money in escrow, the broker must:

• a.Keep it in cash at the closing table
• b.Place it in a separate escrow account and account for it accurately✓
• c.Deposit it into the broker's personal account
• d.Give it to the seller immediately

Virginia licensees must place client escrow funds, such as earnest money, into a separate escrow account and maintain accurate records, disbursing the funds only as the contract and law allow. Commingling or converting these funds is prohibited.

In many Virginia residential closings, the settlement is conducted by:

• a.A settlement agent or attorney who handles the closing
• b.The listing broker, who must disburse all closing funds
• c.The lender's underwriter, who approves the final figures
• d.The commissioner of accounts for the circuit court there✓

Virginia closings are commonly handled by a licensed settlement agent or a real estate attorney who prepares documents, handles the escrow and title work, and disburses funds. This neutral party helps ensure the transaction is completed correctly.

When must the earnest money deposit on a ratified Virginia contract reach the firm's escrow account?

• a.By the end of the third business banking day
• b.Within five calendar days of the contract date
• c.By the close of the next business banking day
• d.By the end of the fifth business banking day✓

The deposit must be placed in escrow by the end of the fifth business banking day following ratification unless the principals agree otherwise in writing, and a deposit destined for a named outside escrow agent must be delivered on the same fifth-business-banking-day schedule. Cite: Code of Virginia 54.1-2108.2 (1) and (2); 18 VAC 135-20-181 B 1 a.

Money that will ultimately belong to a Virginia firm may sit in its escrow account only if separately identified and withdrawn how often?

• a.At intervals of not more than six months✓
• b.At intervals of not more than twelve months
• c.At intervals of not more than thirty days
• d.Only at the closing of each transaction

Holding funds that may end up belonging to the licensee is not commingling provided there are periodic withdrawals at intervals of not more than six months and the firm can always identify what part of the account is its own. Escrow funds may never be paid directly to the firm's licensees. Cite: 18 VAC 135-20-181 A 2 b and c.

How long must a Virginia principal broker retain an executed brokerage agreement?

• a.Five years from the date of execution
• b.Three years from the date of execution✓
• c.Two years from the date of execution
• d.Three years from the date of settlement

Brokerage agreements and dual or designated agency consents are kept three years from execution; other transaction documents are kept three years from closing, or from ratification if the deal never closes. Cite: 18 VAC 135-20-185 C 1 and C 2.

Which listing arrangement does Virginia regulation treat as an improper financial dealing?

• a.One that pays a flat fee instead of a percentage
• b.One that permits the broker to cooperate with other firms
• c.One letting the agent keep any excess over a net price✓
• d.One that runs for longer than a year in duration

Making a listing contract or lease that provides a net return to the seller or lessor and leaves the licensee free to keep whatever it can get above that net price is listed as an improper financial transaction. Flat-fee and cooperative listings are not prohibited. Cite: 18 VAC 135-20-280 A 5.

What must appear on all advertising by a Virginia firm or its affiliated licensees?

• a.The individual licensee's license number and photograph
• b.The supervising broker's home address and phone
• c.The Real Estate Board's own file number for the listing
• d.The firm's licensed name and office contact details✓

Every advertisement must be in the name of the firm with the firm's licensed name clearly and legibly displayed, and must carry a conspicuous disclosure giving the firm's name and the office contact information the broker specifies in written policy. Cite: 18 VAC 135-20-190 A and B 1.

A Virginia supervising broker lives more than 50 miles from a branch office under his supervision. What must he do?

• a.Move to within 50 miles of the branch within a year
• b.Certify in writing each quarter that he has complied✓
• c.Appoint a resident broker to hold the branch license
• d.Obtain a concurrent broker license for that branch

A supervising broker residing more than 50 miles from a supervised branch office at which licensees regularly conduct business must certify in writing quarterly, on a board form, that he has complied with the supervision requirements. Cite: Code of Virginia 54.1-2110.1 C.

Which task may an unlicensed assistant in a Virginia firm perform?

• a.Placing signs and having listing keys made✓
• b.Holding an open house at a listed property
• c.Answering a caller's questions on financing
• d.Negotiating a commission split with another firm

Placing signs on properties and having keys made for listings are on the regulation's list of permitted unlicensed activities. Showing property, holding an open house, answering questions on financing or contracts, and negotiating any commission or split all require a license. Cite: 18 VAC 135-20-335 A and B.

A Virginia seller delivers the residential property disclosure statement after ratification. What is the buyer's sole remedy?

• a.Terminate within seven days of hand delivery
• b.Sue the seller for damages caused by late delivery
• c.Demand the seller warrant the property's condition
• d.Terminate within three days of hand delivery✓

Late delivery gives the purchaser only a right to terminate, within three days of delivery in person or electronically, or five days after the postmark if mailed. That right also ends at settlement, at occupancy, on a qualifying written mortgage application, or on a separate written waiver. Termination is without penalty and the deposit is returned. Cite: Code of Virginia 55.1-709 A and B.

A Virginia landlord refuses an applicant because her rent would be paid with a housing choice voucher. Under the Virginia Fair Housing Law this is what?

• a.Lawful, because vouchers are not a protected class
• b.Lawful, provided the rule is applied to everybody
• c.Unlawful discrimination on the basis of source of funds✓
• d.Unlawful only if the building has four or more units

Source of funds is a protected class under the Virginia Fair Housing Law and is defined as any source lawfully providing funds to or for a renter or buyer, including any assistance, benefit or subsidy program. Virginia also protects elderliness, sexual orientation, gender identity and military status beyond the federal list. Cite: Code of Virginia 36-96.1 B; 36-96.1:1; 36-96.3 A 1.