Virginia Real Estate Contracts and Documentation (7) Flashcards Preview

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Flashcards in Virginia Real Estate Contracts and Documentation (7) Deck (25)
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1

According to the Code of Virginia, under what condition can a real estate licensee, such as a broker or salesman, prepare written contracts?

- contract must be incidental to a specific real estate transaction

- there is no additional charge for preparing the contract.

2

T/F. In a situation where either a buyer or seller contacts a licensee to merely prepare a sales contract for a fee, the licensee may be guilty of practicing law without a license?

True, because the preparation of the contract was not incidental to the transaction.

3

T/F. Regarding VA contracts, the actual contract used for the purchase and sale of real property may take any form. The only requirement is that it be in enough detail to clearly state the agreement between the parties?

True

4

T/F. Real estate brokers and salespersons should try to explain the legal technicalities of a contract towards a client?

False.
- could subject the licensee to legal action later.

5

T/F. It is customary for real estate licensees to assist buyers and sellers with the preparation of the contract by filling in the blanks on the form.

True

6

As with the listing agreement form, all __________ should be filled in. If the item does not apply, the notation ___________ should be inserted.

blanks
N/A (not applicable)

7

Regarding VA contracts, for a contingency to be effectual, it must contain?

1) An expiration date or time
2) A list or description of option(s) available to the parties

8

In regards to VA statutory contract contingencies, if a property is a condominium or is in a subdivision bound by a property owners' association (POA), what contingencies must be provided?

-condominium resale packet must be provided

-POA disclosure packet must be provided

9

In regards to VA statutory contract contingencies, the Virginia Condominium Act requires that the seller request the condominium ____________ regarding the referenced property and furnish it to the buyer. By the provisions of Virginia Code Section 55-79.97 this packet must be delivered within ______ of the request. Payment may accompany the request, or in certain circumstances the fee will then be assessed against the unit and paid at settlement rather than in advance.

resale packet
14 days

10

In regards to lead-based paint, the ingestion of lead into the human body is a known neurological hazard. Federal law requires the disclosure of lead-based paint and/or lead-based paint hazards for properties constructed prior to ___________.

January 1, 1978

11

In regards to VA disclosed dual representation, the client's ____________ on the written disclosure form is presumptive evidence of the brokerage relationship.

signature

12

T/F. A licensee may not continue to represent in other transactions the client who refused dual representation?

False

13

The Virginia Residential Property Disclosure Act requires that the owner of a residential real property consisting of not less than ______ nor more than ______ dwelling units, whenever the property is to be sold or leased with an option to buy, furnish to the purchaser a ______________.

1
4
Residential Property Disclosure Statement

14

The Virginia Residential Property Disclosure Statement provides that the seller makes no warranties or representations regarding certain things, however, what are some things that a seller DOES represent?

1) There are no pending building code enforcement actions involving the property
2) Location in which there is a military air installation
3) Availability of septic system operating permits

15

The English law passed in ____ known as the ______________ requires that the transfer of real estate be in writing.

1667
Statute of Frauds

16

T/F. Contracts for the sale of real estate or for a lease on real property for more than one year must be in writing to be enforceable?

True

17

In regards to contract procedure, use of a standard form excuses the licensee from pointing out to both parties that the contract is a legally binding document and that legal advice should be sought if either party has legal questions?

False

The parties may make the agreement contingent on review and approval by an attorney.

18

In regards to VA contract procedure, sometimes, a party cannot be present at the closing and must be represented by an ___________ acting under a power of attorney

attorney-in-fact

19

T/F. In VA, a general power of attorney will suffice?

False. The power of attorney must specify the transaction and the parties involved. Must also be notarized and recorded with the deed.

20

T/F. In regards to contract procedures for spousal consent, if property is owned in severalty and the owner is married, if one or the other spouse does not sign, the courts will not order specific performance on the contract unless the buyer is willing to accept a deed that remains subject to the spousal interest?

True

21

In regarding titles in VA, The buyer under a real estate sales contract expects to receive _____________ to the property from the seller?

marketable title

22

T/F. Marketable Title = Insurable Title?

False. Because a title insurance policy may list exceptions against which it does not insure.

23

Regarding contract procedures, when the buyer and seller have ratified, that is, signed, the sales contract, the buyer's interest is called ___________, which gives the buyer an insurable interest in the property.

equitable title

24

T/F. Once the buyer receives equitable title, Virginia law places the risk of damage to the property during this period on the buyer, though most sales contracts in Virginia provide that the seller bears the risk of loss?

True

25

Regarding warranties in VA, this principle of "let the buyer beware" is still the law in Virginia regarding previously owned homes?

Caveat Emptor