Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Alpha Real Estate > Virginia Law > Flashcards

Virginia Law Flashcards

1
Q

What is the purpose of the Real Estate Board?

A

Protect the public interest in real estate transactions against:

  1. Fraud
  2. Misrepresentation
  3. Dishonesty
  4. Incompetence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Who appoints the real estate board members

A

The governor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How many members sit on the Board

A

9 Members ( 7 Licensees and 2 Non-Licensees)

  1. ) Licensees: must be licensed for 5 consecutive years
  2. Can be reappointed for an additional 4 years
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How long does a board member serve?

A

4 year term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the penalty for operating w/o a license

A

1st Violation: $200-$1,000 per violation

Max $10,000 per year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who’s exempt from licensure?

A
  1. Homeowner
  2. Power of Attorney (w/o compensation)
  3. Attorney at Law (in addition to other assigned duties)
  4. Government employees
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The Board has the authority to do what?

A
  1. Issue and renew real estate licenses
  2. Suspend, revoke, or deny renewal of licenses
  3. Determine license fees
  4. Levy fines 4 license law, rules, & regulation violations
  5. Take a disciplinary case against a licensee under advisement, defer a finding, or dismiss
  6. Issue cease and desist orders for unlicensed activity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does the Board not do?

A
  1. Arbitrate disputes between salespersons & brokers
  2. Arbitrate disputes between brokers
  3. Establish commission rates or commission splits
  4. Standardize listing agreements, sales contracts, or any other forms used in the industry
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Where does the Board send an agent’s license?

A

Sent to the broker (firm)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

If a license is inactive, where does the license reside?

A

Remains with the Board

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How long do initial applicants have to apply for their license after passing the PSI?

A

Within 1 year. (Must be retaken if window is missed)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Where does a licensees license reside?

A

At the firm’s main office

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Which groups need a license?

A
  1. Principal Broker (Sole proprietor)
  2. Non-broker owner (Sole proprietor)
  3. Partnership
  4. LLC
  5. Corporation
  6. Branch Office (issued to each office when there is more than one office connected to the firm)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Who advises the Board of the names and license #s of all Licensees assigned to a Branch Office

A

Principal Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the qualifications 4 a VA Real Estate License?

A
  1. Pass state licensing exams
  2. 60 hours of pre-licensing education
  3. Mandatory Fingerprinting
  4. Apply through real estate broker
  5. A minimum of a high school diploma
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the requirement for forming a real estate team?

A

Must obtain a Business entity salesperson license from the Board

Team may hire 1 or more unlicensed assistants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is the requirement for being a broker?

A
  1. Minimum of a high school diploma
  2. 12 semester hours or 180 hours of classroom or correspondence, or other distance learning course in real estate courses from an accredited university
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Requirements for activation or transfer of license?

A
  1. Complete activation form
  2. Complete continuing education within 2yrs of activation
  3. If inactive for over 3 years: must start from scratch and meet pre-licensing requirements.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How long does your previous broker have to return your old license to the board?

A

10 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

How frequently must salesperson, broker, and firms renew their licenses?

A

Biennually

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What happens if 30hr aren’t completed within 1st year?from the last day of the month when the license was issued.

A

License becomes inactive. License will still expire biennually.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Do inactive agents need to do CE

A

No. Once active again they must start CE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

How many post-licensing hours do agents need their 1st year?

A

30 hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

How many post-licensing hours do agents and brokers need their 2nd year.

A

Agents: 16 hours (8 required and 8 related)

Brokers: 24 hours (8 required, 8 related, 8 Broker Mgt & Supervision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is the role of a Supervising broker

A
  1. Tells agents what they can and can’t do

2. Team must have a license

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Who does the supervising broker supervise?

A
  1. Each place of business
  2. Branch Office
  3. Real Estate Team
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is a real estate team?

A

2 or more individuals (1 or more who’s an agent or broker) who:

  1. Work together as a unit within the same firm
  2. Publicly display themselves as working together as 1 unit
  3. Designate themselves by a fictitious name
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is the grace period from financial penalties?

A
  1. ) 30 days

2. ) Any activity during this period is considered (Unlicensed activity)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What 3 things can the Board do to a license?

A
  1. Issue it
  2. Suspend it
  3. Revoke it
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

How many days does an agent or broker have to report a name or address change?

A

30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

How many days does a firm have to report a name or address change?

A

30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

How long does broker have to turn his license back to the board once he is discharged or terminates his activity from the firm?

A

3 business days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Where does a firm keep client and customer money?

A

In an escrow account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Once a contract is ratified, how long does the firm have to deposit earnest money?

A

5 business days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is co-mingling?

A

Mixing operational funds and escrow funds together in the same account (ILLEGAL)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What goes in an operational versus escrow account?

A
  1. Operational: Money 4 firm’s bills, agents, & expenses

2. Escrow: Customer and clients monies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

What are the 3 ways escrow funds can be removed from an account?

A
  1. Transaction closes
  2. All parties agree in writing
  3. Court ordered
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What are the documents used when both parties agree to release the escrow money?

A

Mutual release papers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

How do escrow accounts get labeled?

A
  1. Anything escrow gets labeled escrow”

2. The account monies go into is labeled “escrow”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

How long does a firm have to keep records?

A

3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

How many copies of records are required?

A

3 copies:

  1. Client or Customer
  2. Firm
  3. Licensee
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What are the rules about advertising?

A
  1. All advertising must go through the firm
  2. Must be under supervision of broker (Princ. or Sup.)
  3. Firm’s licensed name must be clearly/legibly displayed
  4. Must comply with Code of VA Disclosures
  5. Electronic media advertising that can be displayed as a separate unit must contain disclosures which can be viewed on the main page or is one click away from main site
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What’s required on for sale and for lease signs?

A
  1. Firm’s Name

2. Firm’s Primary or branch office telephone number

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

What is required on business cards?

A
  1. Licensee’s name
  2. Firm’s name
  3. Contact information
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What is prohibited in advertising?

A
  1. Agent not disclosing he’s an agent:
    An agent selling his home not disclosing that he is a real estate agent or has ownership interest in the property.
  2. Failing to obtain written consent:
    Failing to obtain the written consent of the seller, landlord, optionor, or licensor prior to advertising a specific identifiable property
  3. Personal, family interest not disclosed:
    As an agent, one must always disclose if he, his family, or anyone connected to of familial interest has ownership interest in a property that is being bought, leased, sold, etc.
46
Q

When should a licensee disclose his brokerage relationship with a customer?

A

When a “substantive discussion” occurs about a specific property or properties.

Should also make disclosure in writing

47
Q

Who does an agent disclose to about his dual or designated agency?

A

To all clients of the transaction at the earliest practical time

48
Q

How long does a firm or licensee have to provide records to the Board when requested (provisioned)?

A

10 days

49
Q

Who pays the licensee and who pays the firm?

A
  1. Licensees get paid by their own firm

2. Firms get paid by other firms

50
Q

Can a principal or supervising broker be held liable for the actions of their licensee?

A

Yes, if they were aware or should have been aware

51
Q

If principal broker or sole proprietor loses license for any reason what happens to other agents in firm?

A

All licenses must be returned to the Board

52
Q

When Board investigates they presume the licensee to be ________

A

Innocent until proven guilty.

Board will investigate first.

53
Q

Can an agent put a sign on an owner’s yard w/o owner’s consent?

A

No! VA requires consent!

54
Q

What has to be included on all advertisements?

A

Firm or Sole proprietorship’s name

55
Q

Should an agent make a listing that is higher than the net requested by the owner so that the agent will make a profit?

A

No!!!

56
Q

If Board feels escrow accounts were mishandled, how can they proceed?

A
  1. Board may request an injunction
  2. Board may request court to appoint a receiver who manages account
  3. Barr broker from activity in account
57
Q

What happens if broker is found guilty of mishandling escrow?

A
  1. Broker will be financially penalized
  2. Broker may pay “receiver fee”
  3. Brokers license will be revoked
58
Q

What happens if broker can’t pay the receiver fee?

A

Receiver fee will be paid through:

  1. Transaction Recovery Fund
  2. Funds received by the Board
59
Q

What happens if broker is found innocent in handling escrow funds?

A

Receiver fee paid by Board (General fund)

60
Q

What is an agency?

A

Any relationship where a licensee acts as an agent on behalf of another for residential or commercial real estate transactions

61
Q

What is a brokerage agreement?

A

The written agreement creating a brokerage relationship between a client and a licensee

It will state whether the licensee will represent the client as an agent or an independent contractor

62
Q

What is a brokerage relationship?

A

The contractual relationship between a client and an agent for real estate transactions.

63
Q

What is dual agency?

A

One agent representing both the buyer and seller

  1. Must be in writing
  2. All parties must agree
  3. Must be disclosed before substantive conversation
  4. Must have written permission to release confid. info
64
Q

What is designated agency?

A

Broker assigns 1 agent from the firm to represent the client buyer and an different agent from the same firm to represent the client seller

Though clients are designated agents, broker is still dual agent

65
Q

What is a limited service agent?

A

A licensee who provides limited services for a client in a residential real estate transaction

  1. Must disclose that the licensee is acting as a L.S.A
  2. Provide a list of the specific services provided
  3. Provide list of services provided by a standard agent
66
Q

What are ministerial acts?

A

routine acts provided for customers as long as “advice” is not provided to them

67
Q

What is a standard agent?

A

A licensee who acts for or represents a client in an agency relationship in a residential real estate transaction

68
Q

What are the different ways an agent can represent a client?

A
  1. Standard agency
  2. Limited agency
  3. Independent contractor/Rep
  4. Commercial real estate transaction: represent as independent contractor
69
Q

What are an agent’s statutory duties to his client?

A
  1. Promote client’s interest by seeking an acceptable transaction
  2. Maintain confidentiality
  3. Disclose all known facts about the property and the transactions
  4. Exercise reasonable care and service
  5. Comply with all applicable laws & Board regulations
70
Q

What are the duties of a standard agent?

A
  1. Be honest
  2. Don’t give false information
  3. Make proper disclosures
  4. Ministerial acts can be performed for the customer w/o breaching the contract with the client
71
Q

When can confidential information be released by agent?

A
  1. If required by law
  2. With written permission of client

If above conditions aren’t met, confidential info must be held forever

All financial and personal information disclosed must be kept confidential

72
Q

What is required in a brokerage agreement?

A
  1. Must be in writing
  2. State the amount of the brokerage fees
  3. State how and when fees are to be paid
  4. State the services to be rendered by the licensee
  5. Include any other terms of the brokerage relationship that have been agreed upon by the client and licensee.
  6. Designate a definite termination date
  7. If no termination date is provided it will be 90 days after the brokerage agreement date
  8. Disclose dual agency
73
Q

What is the purpose of the VA Real Estate Transaction Act?

A

Was established to reimburse anyone for monetary losses due to the misconduct of a licensee.

Examples of Misconduct:

  1. Fraud
  2. Misrepresentations
  3. Deceit
  4. Embezzlement
  5. False pretenses
  6. Forgery
  7. Failure to account for a conversion or trust funds
  8. Violation of licensure law or other like offense
74
Q

Who maintains the VA Real Estate Transaction Act Fund?

A

The Director of DPOR (Department of Professional and Occupational Regulation)

75
Q

What is the minimum balance that can be in the VA RETA fund?

A

$400,000

76
Q

How much do all new licensees, agents, and brokers pay into the VA RETA fund?

A

$20

77
Q

What happens if the fund falls below $400,000

A
  1. Board assesses each licensee $20
  2. Request fee biennually
  3. Period ends June 30th of even numbered years at time of renewal
78
Q

When do the $20 for the VA RETA funds have to be paid?

A
  1. May pay within 45 days or a 2nd notice will be sent

2. 2nd notice must be paid within 30 days or license will automatically be suspended

79
Q

What is the procedure for someone to file a claim from the VA RETA fund?

A

Obtain from the VA court of competent authority, a judgment against the licensee guilty of misconduct

80
Q

What are the monetary limitations on claims for a single transaction?

A
  1. Max is $20,000 for 1 claimant

2. Max is $50,000 for all claimaints

81
Q

What is the monetary limitation on claims for multiple transactions?

A
  1. Max for all claimaints as a whole is $100,000
  2. Claimants must subrogate their rights to the Board
  3. Licensee’s license immediately revoked
82
Q

If broker dies or becomes disabled, what happens?

A

The Board may authorize an individual to conclude the business of the broker. Appointed individuals could be:

  1. Adult member of broker’s family
  2. Unlicensed employee of the broker
  3. The executor or administrator of the broker’s estate
83
Q

How long does the approved person have to close out the broker’s affairs once the broker is dead or disabled?

A

180 days

84
Q

What is the Wet Settlement Act? (Wet closing)

A

Says that recordation and disbursement must occur within 2 business days after settlement.

No monies are disbursed until recordation is complete

85
Q

Who may conduct closings in VA?

A
  1. Brokers
  2. Lawyers
  3. Title Companies
  4. Title agents of Title Companies
  • All of these must register with the VA State Bar
  • No salesperson may conduct a closing
86
Q

What is the VA Residence Property Disclosure Act

A

The owner of the residential real property shall furnish to a purchaser a residential property disclosure statement for the buyer to beware of certain matters that may affect the buyer’s decision to purchase such real property.

87
Q

The Fair Housing laws are an extension of what amendment?

A

14th amendment

88
Q

Who is responsible for administering the VA Fair Housing Laws?

A

The VA Real Estate Board

89
Q

VA Fair Housing Law does not apply to:

A
  1. Non-residential property
  2. Owner does not use the services of a broker
  3. Owner does not use discriminatory advertising
  4. Owner does not own more than 3 houses at any given time
  5. Owner has not sold more than 1 rental property in 24 months
  6. Multi-family dwelling (4 or less units) rented by the owner. (Owner must occupy one of the units)
  7. Religious organizations and private clubs:
    • must be non-profit
    • must be tax exempt
    • must not be commercial
  • Exemptions don’t apply to licensees
90
Q

What are religious organizations and private clubs allowed to do once they qualify for VA Fair Housing Exemptions?

A

May limit the sale or rental of properties to members of their organization as long as membership in the religious organization is not discriminatory.

91
Q

What are examples of Fair Housing Law illegal acts?

A
  1. Refusing to sell, rent or finance
  2. Quoting different terms and conditions for sale, rental, or financing of property
  3. Falsely representing that the property is not available for sale or rent
  4. Denying membership in MLS
  5. Blockbusting
  6. Steering
  7. Redlining
  8. Using discriminatory advertising
  9. Intimidating, threatening, or interfering with anyone in the exercise of rights granted under the Fair Housing Act
  10. Initiating restrictive covenants of discriminatory nature
92
Q

Who has the burden of proof when filing a complaint?

A

The complainant

93
Q

Who can complainants file a VA Fair Housing complaint with?

A
  1. Real estate board
  2. HUD
  3. Circuit Court of Virginia
  4. U.S. District Court
94
Q

How long do complainants have to file a claim?

A

1 year (360 days)

If filed with the Board, the Board must investigate within 30 days and shall complete investigation within 100 days.

95
Q

Security deposits cannot exceed how much?

A

2 months rent

96
Q

How long does one have to return a security deposit upon vacancy of the premises?

A

45 days

97
Q

When does final inspection have to be completed?

A

Within 72 hours of lease termination

98
Q

How long do tenants have to remedy violations?

A

21 days

99
Q

What happens if tenants do not remedy violations within allocated time?

A

Lease will terminate within 30 days

100
Q

How do tenants address rental agreement violations by landlord?

A
  1. Notify landlord in writing
  2. Landlord has 30 days to remedy violations
  3. Tenant should pay General District Court after 30 days if he or she continues to live in the premises
101
Q

Does change in ownership change the lease?

A

No

102
Q

When must a landlord have access to the property in a lease/rental agreement?

A

at reasonable times

103
Q

When can military terminate their lease?

A

When duty requires

104
Q

What is the VA Residential Landlord and Tenant Act?

A

Laws enacted to protect the rights of landlords and tenants as they relate to properties under rental agreements

105
Q

What is the Virginia Condominium Act?

A

Supercedes the Horizontal Property Act and extends regulations beyond multi-unit structures to also include condominiums.

No zoning or other land use ordinance shall prohibit condominiums solely on the basis of the form of ownership, nor shall any condominium be treated differently by any zoning or other land use ordinance that would permit a physically identical project or development under a different form of ownership.

106
Q

What are 3 common interest communities

A
  1. Condominiums
  2. Cooperatives
  3. Property Owner’s Association
107
Q

Condominiums basics?

A
  1. Fee simple ownership
  2. 5 day right to cancel contract (not ratification), (based on association documents)
  3. Declarant (Builder) is responsible until 75% sold
108
Q

Condo resale basics?

A
  1. Subject to the condominium act
  2. Seller provides resale certificate
  3. No later than 14 days after ordering
  4. Has a 3 day cancellation period (based on assoc.)
109
Q

Property Owner’s Association Basics?

A
  1. VA Property Association Act
  2. Seller provides association disclosure packet
  3. No later than 14 days after ordering
  4. 3 day cancellation period
110
Q

What is the Chesapeake Bay Preservation Act?

A

Designed to improve water quality in the Chesapeake Bay and other waters of the state by requiring the use of effective land management and land use planning.

111
Q

What is Miss Utility or VA Utility Protection Service?

A

A process used to help receive proper markings before any digging or unearthing of property.

PROCESS:
1. An individual or company is planning to excavate.

  1. A ticket request is made online OR a call is made to VA 811. This is easy and no cost to the excavator/homeowner!
  2. The ticket is electronically delivered to member utilities.
  3. Member utilities mark their facilities or employ a contract locator to perform their locates.
  4. The locator responds to our electronic system and a response is sent to the excavator/homeowner.
112
Q

What is the Underground Utility Damage Prevention Act?

A

Was created to minimize the probability of damage to underground utilities from excavation or demolition activities

Required notification centers to be established and that anyone planning to make an excavation would call a notification center and inform the center as to the excavation site.

Alpha Real Estate (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions