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.
T/F. The brokerage relationship with a licensee and a client is violated if the licensee shows alternative properties to prospective buyers or tenants or represents other sellers (or landlords)?
What is an additional disclosure required by a buyers agent towards a seller?
In the case of a residential transaction, a licensee must disclose to the seller the buyer's intent to occupy the property as a principal residence.
What are 6 duties expected by Virginia Law of licensees who are engaged to manage real estate?
1) perform according to the management agreement
2) ordinary care
3) disclose all material facts concerning the property of which the licensee has actual knowledge
5) account for all money and property received
6) comply with all laws and regulations
T/F. If the licensee is engaged in a management agreement with a certain property owner, this licensee is not permitted to represent other owners in the management of real property and to represent that owner as seller or landlord under a brokerage agreement?
The broker is a __________ to the owner of the property under a Property Management Agreement.
Prior to entering into a brokerage relationship, the licensee is required to advise the prospective client of?
1) the type of brokerage relationship proposed by the broker
2) the broker's compensation
3) whether the broker will share the compensation with a broker who may have a brokerage relationship with another party to the transaction.
T/F, Oral contract are illegal in VA because they are not enforceable?
False. Legal but unenforceable
Under Virginia's agency statute, when does the brokerage relationship begin?
At the time a client engages the licensee
Besides performance of the brokerage agreement, what are 5 other ways the brokerage relationship can terminate?
1) Expiration of agreement
2) Mutual agreement
3) Default by any party
4) Fail to consent to disclosed dual agency
5) Death of the only broker in a sole proprietorship
All brokerage relationships must have a definite termination date. If no date is specified, the statute establishes a mandatory termination date of _______ after the commencement of the brokerage relationship.
T/F. It is essential that the party to the transaction who is not the client of the licensee and who is not represented by another licensee clearly understand that the licensee represents only his or her client?
T/F. Signature of a disclosure of brokerage relationship is required by a client of the licensee?
False. It's required for the person who is NOT the client of the agent and is NOT represented by another licensee.
However, it is not uncommon for the agent to have both clients and customers sign a Disclosure of Brokerage Relationship for emphasis; some brokers require this of their agents to alleviate the possibility of not making the proper disclosure.
When the required disclosure of brokerage relationship is given with other disclosures or information, how must be disclosure be presented?
the disclosure must be conspicuous, printed in bold lettering, all capitals, underlined, or within a separate box.
Copies of all disclosures that are a part of an executed lease or a consummated transaction must be kept for _________.
T/F. A licensee may withdraw from representing a client who refuses to consent to disclosed dual agency?
T/F. Under designated representation, The appointment of designated representatives excludes other licensees in the firm from involvement in the transaction?
T/F. The use of designated representatives constitute dual representation if each designee represents only one client in a particular real estate transaction?
T/F. Under designated representation, the designated representatives are pledged to maintain all confidential information received from their clients, therefore such information may NOT be shared with the principal or supervising broker?
False. The principal or supervising broker remains in the position of a dual representative with equal responsibilities to both clients.
In all cases where "dual agency" or "designated agency" is practiced, the need for _____________ by __________ to the transaction is a requirement of the statute.
T/F. Because imputed liability applies to Virginia agency law, a client is liable for misrepresentations made by a licensee, also a broker is liable for misrepresentation on the part of another broker engaged to assist in a real estate transaction?
False. Imputed liability does NOT apply to Virginia agency law.
Liability for another's actions would occur only if the client and/or broker knew, or should have known, of the misrepresentation or failed to take steps to correct it.
Under the exemptions from the provision of the National Do-Not-Call Registry, a telemarketer may call the following? (2)
And in addition, for whom does the National Do-Not-Call Registry NOT apply? (3)
1) Consumers with whom the caller has an existing relationship
2) Persons who have granted express written permission to call
1) Charities and tax-exempt nonprofit organizations
2) Political campaigns
3) Callers taking surveys or polls
Under the exemptions to the new rules of the National Do-Not-Call Registry, a telemarketer may call consumers with whom the caller has an existing relationship (This applies to existing clients and customers and extends for up to _______ after the end of a transaction. If a consumer makes an inquiry, the telemarketer can call the person for up to _______ after the inquiry.)
T/F. On ___________, the FTC and FCC rules tightening the National Do-Not-Call Registry scrubbing requirement took effect. It is now mandatory to check a phone number against a version of the Registry that is no more than _______ old before placing a telemarketing call.
January 1, 2005
CAN-SPAM Act of 2003
(Controlling the Assault of Non-Solicited Pornography and Marketing) Creates a national standard to control deceptive or fraudulent commercial e-mail.