Flashcards in Virginia Real Estate Brokerage and Agency (1) Deck (54)
The practice of Real Estate in the Commonwealth of Virginia is governed under?
Title 54.1, Chapter 21 of the Code of Virginia
The agency rules and regulations of the Real Estate Board can be found in?
Title 18 of the Virginia Administrative Code (VAC)
The ______________ is solely responsible for creating and amending the Code of Virginia?
Virginia General Assembly
As part of the Department of Professional and Occupational Regulation (DPOR), the _____________ is charged with issuing regulations that further describe what will be expected of both salespersons and brokers.
Real Estate Board (REB)
An individual associate broker who shall be designated by the firm to supervise the activities of a branch office. Physical presence not required.
Supervising Broker (Managing Broker)
any individual licensed as a broker who practices within a brokerage firm as a sales associate. An associate broker is required to meet the same educational, experience, and testing requirements as a principal broker but is subject to the same restrictions of brokerage activity as a salesperson.
a licensee designated by the principal or supervising broker to represent one party to a transaction when the broker is also representing another party in the same transaction.
Dual agent (or dual representative)
a licensee who has a brokerage relationship with both seller and buyer, or both landlord and tenant, in the same real estate transaction.
Every principal broker shall have the following readily available to the public:
1) The business entity or firm license
2) The managing broker's license
3) A roster of every salesperson and broker assigned to the office
If a firm has more than one physical location (e.g., branch offices), then all actual licenses are to be readily available at the 1)____________, with the exception of the entity's 2)____________, which shall be available at the branch office.
1) Firm's main office
2) Branch Office License
T/F. An individual with a broker's license operating under a fictitious name may operate as a sole proprietor without further licensure?
False. A seperate Firm License is required
T/F. A salesperson and a broker may be principals in a firm together?
False. By law, all salespersons come under the supervision of a principal broker.
What must be made available to the public at every branch office of a brokerage firm?
1) A separate branch office license
2) Name of the supervising broker
3) Roster of every salesperson and broker assigned to the branch office
Name 4 examples of persons exempt from the state licensing requirement?
1) Individuals who are selling or renting their own property
2) Persons selling or renting property owned by their employers
3) Attorneys involved in real estate transactions in their normal role as attorneys
4) Licensed auctioneers selling real estate at public auction
In 2006, in response to changing real estate industry business models, the Virginia General Assembly modified the Agency Statute by introducing and stating the duties of a limited services representative under §54.1-2138.1. Name 3 changes of limited service agents from this modification?
1) a licensee may act as a limited service representative only pursuant to a written brokerage agreement.
2) The limited service representative must disclose his or her status as a limited services representative
3) present in writing to the client a disclosure that compares the services that he or she will provide with the duties required of a standard agent, specifically listing the standard agency duties and services that they will not perform.
T/F. The concept of Common Law of Agency still exists in Virginia?
False. standard or statutory agency.
T/F. Compensation and the use of a common source information company, such as an MLS, creates a brokerage relationship?
What governs the relationship of a broker who is operating as an independent contractor?
A written agreement, a lack thereof would impose standard agency
T/F. The parties are free to enter into a brokerage relationship that establishes licensee responsibilities to the client other than those imposed by standard agency?
True. broker may operate as an independent contractor governed by written agreement
T/F. When a salesperson initiates a brokerage relationship with the client, both the broker and the salesperson have a brokerage relationship with the client?
False. Only broker
a person who has entered into a brokerage relationship with a broker licensee
No brokerage relationship but for whom the licensee may perform routine services, referred to as ministerial acts.
routine acts that a licensee can perform for a person without discretion or judgment.
Name the 8 specific duties expected of a licensee who operates as a standard agent of a client?
1) Perform according to terms of the brokerage agreement
2) Seeking a sale
3) Presenting all offers and Counteroffers in a timely manner
4) Disclosing to the client all material facts related to the property of which the licensee has actual knowledge
5) accounting in a timely manner for all money and property received
7) ordinary care
8) comply with all applicable laws
T/F. Unless required to do so under the brokerage agreement or sales contract, once the property is under contract, the licensee is not expected to continue to pursue additional offers?
T/F. Under Virginia Law, confidential information about the client is to remain confidential forever?
What are the duties expected from a licensee towards a customer?
1) Honest treatment
2) Must be informed of any material adverse facts regarding the property's physical condition of which the licensee has actual knowledge
T/F. A licensee will not be held liable for providing false information if the false information was provided to the licensee by the seller; and the licensee did not actually know that the information was false; or did not act in reckless disregard of the truth.
T/F. A licensee having a brokerage relationship with a client is not permitted to assist customers?
False. May assist customers by performing ministerial acts.