Virginia Real Estate Salesperson License, Practice Exams

A seller lists at $400,000 with no other terms left open. Two days later the broker, having done almost no work, produces a buyer ready, willing and able to pay $400,000 on the listed terms. The seller changes her mind and refuses to sell. Has the broker earned a commission?

1. Yes; producing that buyer on the listing terms earned it ✓
2. No, because the broker put in so little time and effort
3. No, because no sale closed and nothing passed at closing
4. Only a part, in proportion to the work that was done

Why: Reference Book chapter 10 states that the broker earns a commission by producing a buyer ready, willing and able to purchase on the terms and at the price the seller stipulated; the right is in no way dependent on the amount of work done. A principal is not relieved by a capricious refusal to go through with the sale.

According to the Reference Book, on what are property management fees most often based?

1. A percentage of the property's market value
2. The owner's net profit after all expenses
3. An hourly rate for the manager's time spent
4. A percentage of the gross rents collected ✓

Why: Reference Book chapter 22 says management fees may be a flat monthly amount, a percentage of gross rents collected, or a combination, and that property managers usually base their fees on a percentage of the gross rents collected. Additional compensation is often paid for lease renewals and supervising major repairs.

Within what time must a complaint under the Virginia Fair Housing Law be filed with the Board?

1. 180 days after the practice occurred or ended.
2. 1 year after the practice occurred or ended. ✓
3. 2 years after the practice occurred or ended.
4. 3 years after the practice occurred or ended.

Why: Code of Virginia 36-96.9 A: A COMPLAINT ... SHALL BE FILED WITH THE BOARD IN WRITING WITHIN ONE YEAR AFTER THE ALLEGED DISCRIMINATORY HOUSING PRACTICE OCCURRED OR TERMINATED.

A home bought for $240,000 sells three years later for $282,000. What is the total appreciation over the three years, as a percentage of the purchase price?

1. 5.8%
2. 14.9%
3. 17.5% ✓
4. 117.5%

Why: Reference Book chapter 26: Rate = Part / Base, with the purchase price as the base. The gain is $282,000 - $240,000 = $42,000, and $42,000 / $240,000 = 17.5%. Dividing by the sale price gives 14.9%, and 5.8% is the average for one year, not the total.

A town has special flood hazard areas mapped by FEMA but has declined to join the national flood insurance program. A buyer seeks a federally insured loan to buy a house in one of those areas. What is the effect?

1. The loan may be made if the buyer buys private flood cover
2. No federal agency may approve that financial assistance ✓
3. The loan is allowed, but the lender must charge a higher rate
4. Only the town council's approval is needed to make the loan

Why: 42 U.S.C. 4106(a) bars any federal officer or agency from approving financial assistance for acquisition or construction purposes for use in an identified special flood hazard area unless the community is participating in the national flood insurance program, and 42 U.S.C. 4003(a)(3) defines financial assistance to include loans, guaranties and insurance. Private coverage does not cure the community's nonparticipation.

After a sale closes through a settlement agent that shows the licensee's receipts and disbursements on the settlement statement, must the licensee also give the parties a separate statement of them?

1. Yes; a separate broker-certified statement is always required.
2. Yes, but only to the party the licensee represented.
3. No, and the licensee need keep no record of the funds.
4. No; its disclosure on the settlement statement is enough on its own. ✓

Why: 18VAC135-20-310 2: a licensee must deliver a signed and certified statement of receipts and disbursements, PROVIDED, HOWEVER, IF THE TRANSACTION IS CLOSED BY A SETTLEMENT AGENT OTHER THAN THE LICENSEE ... AND IF THE DISBURSEMENT OF MONEYS RECEIVED BY THE LICENSEE IS DISCLOSED ON THE APPLICABLE SETTLEMENT STATEMENT, THE LICENSEE WILL NOT BE REQUIRED TO PROVIDE THE SEPARATE STATEMENT.

An agent tells homeowners that military families are moving into the area and values will fall, to get listings. What does this violate?

1. Nothing, since military status is not a protected class.
2. The ban on inducing sales by talk of newcomers. ✓
3. Only federal law; Virginia has no such provision.
4. Only the Board's advertising rules on solicitation.

Why: Code of Virginia 36-96.3 A 7: it is unlawful to INDUCE OR ATTEMPT TO INDUCE TO SELL OR RENT ANY DWELLING BY REPRESENTATIONS REGARDING THE ENTRY OR PROSPECTIVE ENTRY INTO THE NEIGHBORHOOD OF A PERSON OR PERSONS OF A PARTICULAR ... MILITARY STATUS; military status is a protected class in Virginia.

A landlord refuses an applicant who was convicted of illegally manufacturing a controlled substance. Does the Fair Housing Act protect the applicant?

1. No; the Act permits action based on that conviction. ✓
2. Yes; a past conviction is treated as a handicap.
3. Yes, if the conviction is more than five years old.
4. No, but only in buildings with four or fewer units.

Why: 42 U.S.C. 3607(b)(4): NOTHING IN THIS SUBCHAPTER PROHIBITS CONDUCT AGAINST A PERSON BECAUSE SUCH PERSON HAS BEEN CONVICTED BY ANY COURT OF COMPETENT JURISDICTION OF THE ILLEGAL MANUFACTURE OR DISTRIBUTION OF A CONTROLLED SUBSTANCE.

Which class is protected by the Virginia Fair Housing Law but NOT by the federal Fair Housing Act?

1. Source of funds. ✓
2. National origin.
3. Familial status or pregnancy.
4. Religion.

Why: Code of Virginia 36-96.1 B: Virginia's policy is fair housing REGARDLESS OF RACE, COLOR, RELIGION, NATIONAL ORIGIN, SEX, ELDERLINESS, FAMILIAL STATUS, SOURCE OF FUNDS, SEXUAL ORIENTATION, GENDER IDENTITY, MILITARY STATUS, OR DISABILITY; source of funds, elderliness and military status are among the classes the federal Act does not list.

Which is a right the Virginia Property Owners' Association Act gives every lot owner in good standing?

1. To skip assessments if the lot owner disagrees with them.
2. To veto any rule the board of directors adopts.
3. To use the common area for private commercial events.
4. To record board meetings by audio or visual means. ✓

Why: Code of Virginia 55.1-1807: lot owner rights include access to the association's books and records, a vote, THE RIGHT TO HAVE NOTICE OF ANY MEETING OF THE BOARD OF DIRECTORS, TO MAKE A RECORD OF ANY SUCH MEETING BY AUDIO OR VISUAL MEANS, AND TO PARTICIPATE, notice and a hearing in enforcement proceedings, and to serve on the board.

A listing describes a property only by its street address. What is true of that description?

1. It is void and cannot be used in any sale document
2. It is the preferred method for deeds and mortgages
3. Legal, though title insurers seldom insure on it ✓
4. It is valid only when the lot is under one acre

Why: Reference Book chapter 4 says informal references such as a street number or a name are legal, but title companies will not ordinarily insure title involving such a description. A good legal description describes no other property but the one involved.

Which charge may a Virginia landlord NOT take from the security deposit?

1. Accrued rent the tenant left unpaid.
2. Damage the tenant caused beyond wear.
3. Reasonable wear and tear on the unit. ✓
4. Late charges set by the rental agreement.

Why: Code of Virginia 55.1-1226 A: the deposit may be applied solely to accrued rent including reasonable late charges, DAMAGES THAT THE LANDLORD HAS SUFFERED BY REASON OF THE TENANT'S NONCOMPLIANCE WITH § 55.1-1227, LESS REASONABLE WEAR AND TEAR, other charges in the agreement, and actual damages for breach.

In 2024 a developer buys a closed factory site it knows is contaminated, after making all appropriate inquiries. All dumping happened before the purchase, and the developer gives the required notices, takes reasonable care and cooperates with the cleanup. What is its status?

1. It may qualify as a bona fide prospective purchaser ✓
2. It is liable, as it bought knowing of contamination
3. It is an innocent landowner, having made inquiries
4. It is excluded as a contiguous property owner

Why: 42 U.S.C. 9601(40) defines a bona fide prospective purchaser as one who acquires after January 11, 2002 and proves the listed criteria, including disposal before acquisition, all appropriate inquiries, notices, appropriate care, cooperation and no affiliation with a liable party, and 9607(r)(1) limits its liability as owner. Knowledge is no bar: 9607(q)(1)(C) says a person who knew may still qualify, whereas the innocent landowner route requires no reason to know.

A buyer pays $410,000 with a $369,000 loan, a $10,000 earnest deposit and $8,700 of closing costs. The seller credits $1,560 of unpaid taxes and a $4,000 concession. What is the buyer's cash to close?

1. $34,140 ✓
2. $37,260
3. $44,140
4. $403,140

Why: 12 CFR 1026.38(j) adds the price and closing costs as due from the borrower and deducts the deposit, loan, seller credit and unpaid-tax proration as paid already on the borrower's behalf: $418,700 - $384,560 = $34,140. Forgetting the deposit gives $44,140, and leaving out the loan gives $403,140.

By when must a dual agent obtain the buyer's written consent to the dual agency?

1. When the buyer signs the loan application after ratification.
2. At the final walk-through before settlement.
3. When the offer reaches the licensee presenting it. ✓
4. Within three days after the contract is ratified.

Why: 18VAC135-20-220 A 3: dual or designated agency disclosure MUST BE GIVEN TO, AND CONSENT OBTAINED FROM, (I) THE BUYER NOT LATER THAN THE TIME AN OFFER TO PURCHASE IS PRESENTED TO THE LICENSEE WHO WILL PRESENT THE OFFER TO THE LISTING AGENT OR SELLER, AND (II) THE SELLER NOT LATER THAN THE TIME THE OFFER TO PURCHASE IS PRESENTED TO THE SELLER.

Of an active salesperson's required continuing education hours in Virginia, how many must be in ethics and standards of conduct?

1. 2 hours.
2. 3 hours. ✓
3. 5 hours.
4. 8 hours.

Why: 18VAC135-20-101 A 1: 11 OF THE REQUIRED 16 HOURS MUST INCLUDE: TWO HOURS IN FAIR HOUSING LAWS; THREE HOURS IN ETHICS AND STANDARDS OF CONDUCT; TWO HOURS IN REAL ESTATE AGENCY; TWO HOURS IN REAL ESTATE CONTRACTS ...; AND TWO HOURS IN LEGAL UPDATES AND EMERGING TRENDS.

What is assessed value?

1. A lender appraiser's valuation of the property securing its loan.
2. The listing broker's estimate of value, used to set the list price.
3. The price agreed between the buyer and the seller at closing.
4. A public authority's valuation of property as the basis for taxes. ✓

Why: Reference Book chapter 27 defines assessed valuation as "a valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property," and the assessor as the official responsible for it. Chapter 16 adds that property taxes are ad valorem, levied according to value.

Two months into a six-month exclusive right-to-sell listing, a seller revokes it without cause. Which statement is accurate under general agency law?

1. The revocation is void until the listing term runs out
2. The revocation ends the agency, but she may owe damages ✓
3. The revocation is valid and frees her of all liability
4. The agency survives because the broker has a commission interest

Why: Reference Book chapter 10 states that the principal has an absolute power to revoke an agency at any time unless it is coupled with an interest, but not necessarily the right, and may be liable for breach of contract. A broker's right to earn a commission is not an interest that prevents revocation.

Which does the Reference Book say a written property management agreement should set out?

1. The term, the policies, the fees, and the manager's powers ✓
2. Only the fee, since agency law supplies all other terms
3. The tenants' names and the rent each tenant has to pay
4. The owner's income tax position and plans for the property

Why: Reference Book chapter 22 says it is good business practice to have a written contract with the owner that clearly sets forth the responsibilities of both parties, including the terms and period of the contract, the policies for managing the premises, management fees, and the authority and powers given by the owner to the agent.

In a lien theory state, an owner borrows against her home and signs a mortgage. What does the lender acquire?

1. Legal title, which it holds until the debt is paid
2. A lien, while she keeps title, possession and use ✓
3. The right to occupy the home until the loan is repaid
4. Equitable title, which ripens into legal title at payoff

Why: Reference Book chapter 5 explains that under lien theory the loan is secured by a lien that does not impair the owner's rights to use, sell or further encumber the property, and chapter 12 adds that the borrower keeps the rights of possession and use. Chapter 27 contrasts title theory, under which title to the mortgaged property vests in the lender.

In a residential sale, what must a buyer's licensee disclose to the seller about the buyer?

1. The buyer's income and the amount of the buyer's savings.
2. The highest price the buyer is prepared to pay for it.
3. Whether the buyer has been turned down for loans before.
4. Whether the buyer will live in it as a principal home. ✓

Why: Code of Virginia 54.1-2132 B: IN THE CASE OF A RESIDENTIAL TRANSACTION, A LICENSEE ENGAGED BY A BUYER SHALL DISCLOSE TO A SELLER WHETHER OR NOT THE BUYER INTENDS TO OCCUPY THE PROPERTY AS A PRINCIPAL RESIDENCE; the buyer's statement in the contract satisfies it. The buyer's financial information is confidential under A 4.

When may a court admit outside evidence despite the parol evidence rule?

1. To add a term both parties forgot to discuss.
2. To show the contract was induced by fraud. ✓
3. To show one party later regretted the deal.
4. To prove a better offer arrived after signing.

Why: DRE Reference Book ch. 6: courts WILL PERMIT SUCH OUTSIDE EVIDENCE TO BE INTRODUCED WHEN THE WRITTEN CONTRACT IS INCOMPLETE OR AMBIGUOUS, OR WHEN NECESSARY TO SHOW THAT THE CONTRACT IS NOT ENFORCEABLE BECAUSE OF MISTAKE, FRAUD, DURESS, ILLEGALITY, insufficiency or failure of consideration, or incapacity.

A fair housing tester, who has no intention of renting, is falsely told because of her race that no units are available. Has the agent violated the federal rules?

1. No; only people actually seeking housing are protected.
2. Yes; false availability information to testers is unlawful too. ✓
3. No, as long as a unit is offered to her later that day.
4. Yes, but only if the tester files a written application.

Why: 24 CFR 100.80(b)(5): prohibited actions include PROVIDING FALSE OR INACCURATE INFORMATION REGARDING THE AVAILABILITY OF A DWELLING FOR SALE OR RENTAL TO ANY PERSON, INCLUDING TESTERS, REGARDLESS OF WHETHER SUCH PERSON IS ACTUALLY SEEKING HOUSING, because of a protected class.

A supervising broker lives 70 miles from a branch office he supervises, where licensees regularly work. What extra duty does he have?

1. Visit the branch office in person at least once every week.
2. Appoint a salesperson at the branch to act as supervisor.
3. Close the branch until a broker who lives nearby is found.
4. Certify in writing each quarter that he is complying. ✓

Why: Code of Virginia 54.1-2110.1 C: ANY SUPERVISING BROKER WHO RESIDES MORE THAN 50 MILES FROM A BRANCH OFFICE UNDER HIS SUPERVISION ... SHALL CERTIFY IN WRITING QUARTERLY ON A FORM PROVIDED BY THE BOARD THAT THE SUPERVISING BROKER HAS COMPLIED WITH THE REQUIREMENTS OF THIS SECTION.

A tenant commits a material breach affecting health and safety that can be fixed. What notice may the landlord serve?

1. Remedy within 5 days, or the lease ends at once without further notice.
2. Remedy within 60 days, or the lease ends at the end of its term.
3. No notice is needed; the landlord may change the locks.
4. Cure in 21 days, or the lease ends at least 30 days after notice. ✓

Why: Code of Virginia 55.1-1245: for a remediable material noncompliance, the landlord may serve a written notice STATING THAT THE RENTAL AGREEMENT WILL TERMINATE UPON A DATE NOT LESS THAN 30 DAYS AFTER RECEIPT OF THE NOTICE IF THE BREACH IS NOT REMEDIED IN 21 DAYS.

A buyer is quoted a 3-hectare parcel. About how many acres is that?

1. 1.21 acres
2. 3.00 acres
3. 7.41 acres ✓
4. 30.00 acres

Why: DRE Reference Book ch. 26, metric equivalents: ONE HECTARE = 2.47 ACRES OR 10,000 SQ. METERS. 3 x 2.47 = 7.41 acres.

A property's assessed value is $180,000 and the tax rate is 2.4% of assessed value. What is the annual property tax?

1. $432
2. $4,320 ✓
3. $7,500
4. $43,200

Why: Reference Book chapter 26 gives the property tax formula Tax = Assessed Value x Rate (T = A x R). $180,000 times 0.024 is $4,320. Actual rates are set locally and vary by jurisdiction; the figures here test the arithmetic only.

An owner who has two houses on the same block signs a contract to sell "my house on Elm Street." What is the problem with the description?

1. It does not identify which house is being sold ✓
2. It must be a metes and bounds legal description
3. A street address is never an adequate description
4. Nothing, as oral evidence can supply the missing lot

Why: Reference Book chapter 6 requires an offer to be definite and certain, including a description from which the property can be exactly ascertained. A street description is usually sufficient, but not where the seller owns more than one building that fits it. Oral evidence may help identify a description, not supply one that is too uncertain.

A rancher buys the S 1/2 of the SE 1/4 of a standard section. How many acres does she acquire?

1. 40 acres
2. 80 acres ✓
3. 160 acres
4. 320 acres

Why: Reference Book chapter 4 gives a quarter section as 160 acres. Half of the SE 1/4 is 160 / 2 = 80 acres. Answering 160 takes the whole quarter section, and 320 is a half section.

Which of these is classified as real property?

1. A right-of-way over the next lot serving it ✓
2. A promissory note secured by a mortgage on the parcel
3. A car kept in the garage on the parcel
4. Money received from the sale of the parcel

Why: Reference Book chapter 4 lists as real property land, things affixed to it, that which is incidental or appurtenant to the land, and that which is immovable by law; easements over adjoining land are given as appurtenant examples. Money, movable goods and evidences of debt such as a note are personal property.

A buyer wants to drop out of a purchase. A friend agrees to buy on the same terms, and the seller agrees to take the friend and release the first buyer completely. What is this?

1. A novation. ✓
2. An assignment.
3. A rescission.
4. An option.

Why: DRE Reference Book ch. 6: NOVATION IS THE SUBSTITUTION BY AGREEMENT OF A NEW OBLIGATION FOR AN EXISTING ONE, WITH INTENT TO EXTINGUISH THE LATTER, and may bring in a new party. By contrast an assignor who merely assigns stays liable unless the other party releases him.

A document names a grantor and grantee, describes the land and is signed, but contains no words stating that the grantor conveys anything. Which essential of a valid deed is missing?

1. A granting clause with words of conveyance. ✓
2. A habendum clause beginning to have and to hold.
3. A recital of the price paid for the land.
4. The signatures of two attesting witnesses.

Why: DRE Reference Book ch. 7 lists the essentials of a valid deed, including THERE MUST BE A GRANTING CLAUSE, OPERATIVE WORDS OF CONVEYANCE (E.G., 'I HEREBY GRANT'). Consideration need not be recited, and the Reference Book notes that in its state neither the habendum clause nor witnesses are required.

A buyer later learns that a suicide occurred in the house. Neither the owner nor the agent mentioned it. Does the buyer have a claim for nondisclosure under Virginia law?

1. Yes; a death on the property is always a material fact.
2. Yes, if the suicide happened within the last three years.
3. No; the statute bars a nondisclosure claim for a suicide. ✓
4. No, unless the buyer asked about it in writing.

Why: Code of Virginia 55.1-713 A: NO CAUSE OF ACTION SHALL ARISE AGAINST AN OWNER OR A REAL ESTATE LICENSEE FOR FAILURE TO DISCLOSE THAT THE REAL PROPERTY WAS THE SITE OF ... A HOMICIDE, FELONY, OR SUICIDE, or of an act that had no effect on the physical structure or environment.

A listing agent also shows buyers other homes that compete with her seller's listing. Has she breached a duty to her seller?

1. Yes; she must show only her seller's property.
2. Yes, unless the seller consented in writing first.
3. No; showing other homes is no breach. ✓
4. No, but only if the other homes cost more.

Why: Code of Virginia 54.1-2131 D: A LICENSEE ENGAGED BY A SELLER DOES NOT BREACH ANY DUTY OR OBLIGATION OWED TO THE SELLER BY SHOWING ALTERNATIVE PROPERTIES TO PROSPECTIVE BUYERS, WHETHER AS CLIENTS OR CUSTOMERS, OR BY REPRESENTING OTHER SELLERS.

A seller prepaid the year's homeowners' association dues. At a mid-year closing, how is the buyer's share of those dues entered?

1. Debit buyer, credit seller. ✓
2. Credit buyer, debit seller.
3. Debit the seller only, for the full year.
4. Credit the buyer only, for the full year.

Why: 12 CFR 1026.38(j)(1)(ix) and (k)(1)(viii) list prepaid assessments due from the consumer to reimburse the seller under adjustments for items paid by seller in advance: due from the buyer and due to the seller. A credit to the buyer and debit to the seller is the treatment for items the seller left unpaid.

An applicant's subsidy program has not approved his request for tenancy after 20 days. May the landlord, who owns many units, now turn him down on that ground?

1. Yes; the source was not approved within 15 days. ✓
2. No; the landlord must wait until the program decides.
3. No; source of funds may never be a ground for denial.
4. Yes, but only if another applicant pays more rent.

Why: Code of Virginia 36-96.2 J: IT SHALL NOT BE UNLAWFUL ... TO DENY OR LIMIT A PERSON'S RENTAL ... BASED ON THE PERSON'S SOURCE OF FUNDS FOR THAT UNIT IF SUCH SOURCE IS NOT APPROVED WITHIN 15 DAYS OF THE PERSON'S SUBMISSION OF THE REQUEST FOR TENANCY APPROVAL.

In the disclosure cases, what is a latent defect?

1. A hidden defect a buyer's diligent inspection would not reveal ✓
2. Any defect the seller has repaired before listing the property
3. A visible defect the buyer noted during the walk-through
4. A defect arising after closing from normal wear and tear

Why: Reference Book chapter 10 explains that disclosure cases usually involve the seller's concealment of latent defects, and that the duty covers facts materially affecting value or desirability that are not within the buyer's diligent attention, including inspection of the property. A defect in plain view is patent, not latent, and a later wear-and-tear problem did not exist at the sale.

A landlord who owns three rental units in Virginia declines applicants who pay with a housing subsidy. Does the Virginia Fair Housing Law forbid this?

1. Yes; source of funds is protected in every rental.
2. Yes, unless the subsidy covers less than half the rent.
3. No, but only if the landlord lives in one of the units.
4. No; owners of four or fewer units may do so. ✓

Why: Code of Virginia 36-96.2 I: NOTHING IN THIS CHAPTER SHALL PROHIBIT AN OWNER ... FROM DENYING OR LIMITING THE RENTAL ... TO A PERSON BECAUSE OF SUCH PERSON'S SOURCE OF FUNDS, PROVIDED THAT SUCH OWNER DOES NOT OWN MORE THAN FOUR RENTAL DWELLING UNITS IN THE COMMONWEALTH, nor more than a 10 percent interest in more than four.

A licensee will represent a prospective tenant. When must they enter into a brokerage agreement?

1. Before the tenant signs a lease.
2. Before showing any property. ✓
3. Before the tenant pays a deposit.
4. Within 3 days after the first meeting.

Why: Code of Virginia 54.1-2134 A 1: A LICENSEE ENGAGED BY A TENANT SHALL ENTER INTO A BROKERAGE AGREEMENT WITH THE PROSPECTIVE TENANT PRIOR TO SHOWING PROPERTY TO SUCH PROSPECTIVE TENANT.

A home's market value is $420,000. It is assessed at 35% of market value, and the tax rate is $25 per $1,000 of assessed value. What is the annual tax?

1. $1,286.25
2. $3,675 ✓
3. $10,500
4. $36,750

Why: Reference Book chapter 26 gives Tax = Assessed Value x Rate. Assessed value is $420,000 x 0.35 = $147,000; $147,000 / 1,000 x $25 = $3,675. Applying the rate to market value gives $10,500, and reading the rate as per $100 gives $36,750.

Which of these would an appraiser NOT deduct as an operating expense in estimating net income?

1. Reserves for replacing carpets and stoves.
2. Premiums for the property's fire insurance.
3. Depreciation claimed for income taxes. ✓
4. The resident manager's salary.

Why: Reference Book chapter 15: items on an owner's statement such as mortgage payments and the "depreciation allowance for income tax purposes, must be disregarded by the appraiser as not being allowable expense items." Insurance is a fixed expense, management and payroll are variable expenses, and reserves cover stoves, carpets and roof covering.

A rectangular parcel measures 396 feet by 550 feet. How many acres does it contain?

1. 0.5 acres
2. 4.5 acres
3. 5 acres ✓
4. 45 acres

Why: Reference Book chapter 26 gives Area = Length x Width and one acre = 43,560 square feet. 396 x 550 = 217,800 square feet, and 217,800 / 43,560 = 5 acres. Dividing by 4,840 (the square YARDS in an acre) gives 45, and misremembering the constant as 48,400 gives 4.5.

The locality has served the owner with written notice of an unremedied zoning violation on the property. What must the owner disclose to a buyer?

1. Nothing, since zoning is public record for the buyer.
2. Only violations that a court has already confirmed.
3. Only violations older than one year at the time of sale.
4. The pending violation, in writing on the Board's form. ✓

Why: Code of Virginia 55.1-706: if the owner has actual knowledge of pending building code enforcement actions or ANY PENDING VIOLATION OF THE LOCAL ZONING ORDINANCE THAT THE VIOLATOR HAS NOT ABATED OR REMEDIED ..., THE OWNER SHALL PROVIDE TO A PROSPECTIVE PURCHASER A WRITTEN DISCLOSURE THAT SO STATES.

A licensee engaged by a landlord knows of a material adverse fact about the physical condition of the unit. What must she do?

1. Disclose it only if a tenant asks directly.
2. Keep it confidential, as her client's secret.
3. Disclose it in writing to prospective tenants. ✓
4. Report it to the Real Estate Board first.

Why: Code of Virginia 54.1-2133 B: A LICENSEE ENGAGED BY A LANDLORD SHALL DISCLOSE TO PROSPECTIVE TENANTS ALL MATERIAL ADVERSE FACTS PERTAINING TO THE PHYSICAL CONDITION OF THE PROPERTY THAT ARE ACTUALLY KNOWN BY THE LICENSEE ... SUCH DISCLOSURE SHALL BE MADE IN WRITING.

A seller's listing broker, who works alone, dies halfway through the listing term. What is the effect on the agency?

1. It ends, as death of the agent terminates an agency. ✓
2. It passes to the broker's heirs for the rest of the term.
3. It continues until the listing's stated end date.
4. It becomes an open listing with any broker in the area.

Why: DRE Reference Book ch. 10: an agency may be terminated by THE EXPIRATION OF ITS TERM, THE EXTINCTION OF ITS SUBJECT, THE DEATH OF THE AGENT, THE AGENT'S RENUNCIATION OF THE AGENCY, and THE INCAPACITY OF THE AGENT TO ACT AS SUCH.

Which instrument is NOT a declaration under the Virginia Property Owners' Association Act?

1. A recorded covenant funding upkeep.
2. An amendment to a POA declaration.
3. A condominium declaration. ✓
4. A supplement to a POA declaration.

Why: Code of Virginia 55.1-1800: 'DECLARATION' INCLUDES ANY AMENDMENT OR SUPPLEMENT but DOES NOT INCLUDE A DECLARATION OF A CONDOMINIUM, REAL ESTATE COOPERATIVE, TIME-SHARE PROJECT, OR CAMPGROUND; those are governed by their own acts.

The resale certificate the seller passed on understated an unpaid special assessment, through the association's error. Is the seller liable to the purchaser for that error?

1. No; the seller is not liable for it. ✓
2. Yes, for the full amount understated.
3. Yes, but only up to $1,000.
4. Yes, jointly with the listing agent.

Why: Code of Virginia 55.1-2313 A: A SELLER PROVIDING A RESALE CERTIFICATE ... SHALL NOT BE LIABLE TO THE PURCHASER FOR ANY ERRONEOUS INFORMATION PROVIDED BY THE ASSOCIATION AND INCLUDED IN THE CERTIFICATE; (B) the purchaser is not liable for any unpaid assessment greater than the certificate shows.

A property manager deposits tenants' rents and security deposits into her own business operating account, planning to sort them out at month's end. What has she done?

1. Nothing wrong, if the records balance
2. Commingled client funds with her own ✓
3. Earned the funds as a management fee
4. Created a proper trust fund account

Why: Reference Book chapter 27 defines commingling as the illegal mixing of personal funds with money held in trust on behalf of a client, and chapter 22 lists separate accounts for the firm's and clients' funds, with no commingling, among the first professional standards of property management. Keeping good records does not cure the mixing.

A manager asks families with children for a larger security deposit than other tenants pay. Is this lawful under the federal fair housing rules?

1. Yes, if the larger deposit is refunded when the family moves out.
2. Yes, since children may cause more wear than adult tenants.
3. No, but only if the building has four or more rental units.
4. No; different deposit terms because of familial status are barred. ✓

Why: 24 CFR 100.65(b)(1): prohibited actions include USING DIFFERENT PROVISIONS IN LEASES ... SUCH AS THOSE RELATING TO RENTAL CHARGES, SECURITY DEPOSITS AND THE TERMS OF A LEASE ... BECAUSE OF ... FAMILIAL STATUS.

Of what two parts does a zoning ordinance consist?

1. A master plan and a list of recorded deed restrictions.
2. A tax roll and a schedule of special assessments.
3. A building code and a list of approved contractors.
4. A zoning map and a text setting each zone's rules. ✓

Why: DRE Reference Book ch. 18: A ZONING ORDINANCE CONSISTS OF A MAP AND A TEXT. The map shows the boundaries of the zones; the text sets out procedures and each zone's permitted uses, conditional uses, lot sizes, height limits, setbacks and densities.

A borrower in default gives the lender a deed to the house, and the lender accepts it so that no foreclosure is needed. What is this deed called?

1. A sheriff's deed.
2. A reconveyance deed.
3. A deed in lieu of foreclosure. ✓
4. A gift deed.

Why: DRE Reference Book ch. 27: a DEED IN LIEU OF FORECLOSURE is A DEED TO REAL PROPERTY ACCEPTED BY A LENDER FROM A DEFAULTING BORROWER TO AVOID THE NECESSITY OF FORECLOSURE PROCEEDINGS BY THE LENDER. A reconveyance returns title from a trustee when the loan is paid.

A buyer asks whether any registered sex offenders live near the house. What does the disclosure statement say on this?

1. The owner must list every offender living within one mile of the house.
2. The owner makes no representation; the buyer should check for himself. ✓
3. The listing agent must search the registry and give the buyer a report.
4. The owner must disclose only offenders living on the same street.

Why: Code of Virginia 55.1-703 B 6: THE OWNER MAKES NO REPRESENTATIONS WITH RESPECT TO INFORMATION ON ANY SEXUAL OFFENDERS REGISTERED under Chapter 23 of Title 19.2, AND PURCHASERS ARE ADVISED TO EXERCISE WHATEVER DUE DILIGENCE THEY DEEM NECESSARY.

There are no vacant land sales nearby. An improved property sold for $385,000; its improvements have a cost new of $300,000 and accrued depreciation of $75,000. What land value does abstraction indicate?

1. $85,000
2. $160,000 ✓
3. $225,000
4. $310,000

Why: Reference Book chapter 15 describes abstraction for use "where there are no vacant land sales": deduct depreciation from cost new, deduct the depreciated cost of the improvements from the sale price, and "the difference represents an approximation of land value." $300,000 less $75,000 is $225,000, and $385,000 less $225,000 is $160,000.

A manager is paid 6.5% of gross rents collected plus $175 a month. The building has 24 units at $1,250, and 2 units stood vacant all year. What is the annual fee?

1. $1,962.50
2. $21,450
3. $23,550 ✓
4. $25,500

Why: Reference Book chapter 22: fees may be a percentage of gross rents collected, a flat amount, or both. Collected rent is 22 x $1,250 x 12 = $330,000; 6.5% is $21,450, plus $175 x 12 = $2,100, total $23,550. Charging the percentage on all 24 units' rent gives $25,500, and $1,962.50 is one month's fee.

At closing the buyer is ready with the funds, but the seller will not deliver the deed. What step puts the seller in default?

1. A letter asking the seller to reconsider the sale
2. Recording the purchase contract in the county records
3. Waiting a reasonable time for the seller to act
4. A tender of the funds with a demand for the deed ✓

Why: Reference Book chapter 6 defines a tender as an offer by one party to carry out that party's part of the contract; for a ready buyer, an offer of the money required and a demand for the deed. A proper tender places the other party in default if refused, and the party tendering may then rescind or sue for breach or specific performance.

A buyer's offer is "contingent upon obtaining a loan," with no amount, rate or promise to apply. What is the risk in that wording?

1. The offer is void, as it has no lawful object to perform
2. The offer is illusory, as the buyer controls whether it binds ✓
3. The offer is barred by the statute of limitations at once
4. The offer is voidable at the seller's option, as for fraud

Why: Reference Book chapter 6 warns that an offer must be nonillusory, and gives as its example an offer contingent upon obtaining a loan with no more specificity: the buyer might not even apply. The clause should state the loan amount, rate, payments and type, and include the buyer's promise of best efforts.

An owner signs a deed, hands it to his niece, and tells her not to record it until he dies. Both believe it has no effect until then. Has title passed?

1. No; he did not intend to pass title at once ✓
2. Yes; handing over the deed was delivery
3. Yes, but only once the niece records it
4. Yes, subject to a life estate for the owner

Why: Reference Book chapter 7 explains that delivery means the grantor must intend to pass title immediately, and gives this very case, a deed handed over with instructions not to record until the grantor's death, as one where that intention is absent. A deed meant to operate only at death is an ineffective attempt at a will.

A buyer signs an installment land contract and moves in; the seller keeps legal title until the price is paid. What interest does the buyer hold meanwhile?

1. Equitable title, and the seller holds legal title ✓
2. Legal title, while the seller keeps only a lien
3. A mere license to occupy, which the seller may end
4. No interest at all until the final payment is made

Why: Reference Book chapter 13 describes insuring the equitable title of the vendee and the legal title of the vendor under a sales contract, and chapter 12 notes that an occupant under a land contract or an executory purchase agreement holds an equitable interest that gives notice to later lenders. Legal title passes only on the deed.

A buyer's attorney reviews the abstract of title for a farm. What does the attorney then give the buyer?

1. A policy paying the buyer for losses from defects
2. A decree settling any claims against the title
3. An opinion on the documents in the chain of title ✓
4. A deed from the attorney warranting the title

Why: Reference Book chapter 5 explains that the abstract of title and a lawyer's opinion of the documents in the abstract's chain of title were the basis of the earliest efforts to establish marketable title, a method that still exists. An opinion is not insurance: it pays nothing if the lawyer's reading turns out to be wrong.

In setting interim standards for all appropriate inquiries, CERCLA names an ASTM standard practice. What process does that standard describe?

1. Phase II soil sampling and laboratory analysis
2. A Phase I environmental site assessment ✓
3. An environmental impact statement for a project
4. A lead-based paint risk assessment of a dwelling

Why: 42 U.S.C. 9601(35)(B)(iv)(II) provides that for property purchased on or after May 31, 1997, until EPA's regulations took effect, the procedures of ASTM Standard E1527-97, "Standard Practice for Environmental Site Assessment: Phase 1 Environmental Site Assessment Process," satisfy the all appropriate inquiries requirement. The inquiries the statute describes are records reviews, interviews and visual inspections (9601(35)(B)(iii)), not sampling or an impact statement.

A borrower makes the last payment on her mortgage loan. Which clause in the mortgage entitles her to have the lender's lien removed?

1. Alienation
2. Defeasance ✓
3. Acceleration
4. Subordination

Why: Reference Book chapter 27 defines the defeasance clause as the clause in a mortgage that gives the mortgagor the right to redeem the property on payment of the obligations to the mortgagee. Alienation and acceleration clauses give the lender rights, and subordination changes lien priority.

An owner offers to sell a lot to a neighbor. Before the neighbor accepts, he learns from a reliable source that the owner has already sold the lot to someone else. Can the neighbor still accept?

1. Yes; only a notice from the owner can revoke an offer.
2. No; learning reliably of the sale revokes the offer. ✓
3. Yes, if he accepts in writing within a reasonable time.
4. No, unless he paid the owner to keep the offer open.

Why: DRE Reference Book ch. 6: SOMETIMES AN OFFER IS MADE TO SELL PROPERTY AND THE PERSON TO WHOM THE OFFER IS MADE LATER ACQUIRES RELIABLE INFORMATION THAT THE PROPERTY HAS BEEN SOLD TO ANOTHER PARTY. THIS, TOO, CONSTITUTES A REVOCATION.

A seller collected $2,400 rent for a 30-day month. Closing is on the 18th, and the buyer owns the day of closing. Prorating by the day, what rent credit does the buyer receive?

1. $1,006.45
2. $1,040 ✓
3. $1,360
4. $2,400

Why: Rent is $2,400 / 30 = $80 a day (Reference Book chapter 26). The buyer owns the 18th through the 30th, 13 days, so the credit is 13 x $80 = $1,040. $1,360 is the seller's 17 days, and dividing by 31 days instead of the stated 30 gives $1,006.45.

For which rentals does Virginia NOT require the landlord's licensee to disclose the brokerage relationship to an unrepresented tenant?

1. Leases of single-family houses.
2. Lease terms of less than two months. ✓
3. Leases of units in a building of 4 units.
4. Leases signed through a property manager.

Why: Code of Virginia 54.1-2138 B and 18VAC135-20-220 B 2: SUCH DISCLOSURE REQUIREMENT SHALL NOT APPLY TO LESSORS OR LESSEES IN SINGLE OR MULTIFAMILY RESIDENTIAL UNITS FOR LEASE TERMS OF LESS THAN TWO MONTHS.

A listing broker represents only the seller. The buyer, who has no broker, is a customer rather than a client. Which duty does the listing broker owe the buyer?

1. Undivided loyalty, including negotiating the lowest price
2. Honest, fair dealing and disclosure of known material facts ✓
3. Full fiduciary duties, the same as those owed to the seller
4. No duties, since no agency exists between them

Why: Reference Book chapter 10 states that a broker who is the agent of one principal owes the other party a duty of fair and honest dealing, including disclosure of material facts known or that should be known, even though the broker is not that party's fiduciary. Loyalty and the other fiduciary duties run only to the client.

An oddly shaped lot cannot meet the zone's side-yard setback, so the owner cannot build as neighbors can. What relief may the owner seek?

1. A variance granting more than the neighbors have
2. A variance with the same privileges as neighbors ✓
3. A nonconforming use certificate for the new house
4. An easement by necessity over the neighbor's yard

Why: Reference Book chapter 18 describes a zoning variance as a waiver of the strict application of a standard, such as a side-yard setback, where size, shape or topography prevents compliance, and says it gives the owner the same, but not additional, privileges as neighboring parcels.

An owner has a parcel rezoned for commercial use in an area where there is no demand for commercial sites. What effect does the rezoning alone have on value?

1. It raises value to that of the best commercial site
2. It doubles value, since commercial land sells higher
3. It creates no value without demand for that use ✓
4. It lowers value to the residential figure

Why: Reference Book chapter 15 states that zoning by itself does not create value unless there is a demand for the land so zoned. Demand, backed by purchasing power, is one of the four essential elements of value.

A buyer holds an unpaid judgment against a salesperson for dishonest conduct in one sale. What is the most one claimant can recover from the Virginia Real Estate Transaction Recovery Fund for that transaction?

1. $10,000.
2. $20,000. ✓
3. $50,000.
4. $100,000.

Why: Code of Virginia 54.1-2116: THE MAXIMUM CLAIM OF ONE CLAIMANT AGAINST THE FUND BASED UPON AN UNPAID JUDGMENT ARISING OUT OF THE IMPROPER OR DISHONEST CONDUCT OF ONE REGULANT IN CONNECTION WITH A SINGLE TRANSACTION ... SHALL BE LIMITED TO $20,000; all claims from one transaction are capped at $50,000.

A broker completes a standardized purchase agreement in a sale she is handling, filling in terms the parties gave her. Which added fact would most undermine the traditional view that this is proper?

1. The form is a standard one used widely in the local market
2. The drafting is incidental to her work on this one transaction
3. She charges a separate drafting fee on top of her commission ✓
4. She fills in only the information the buyer and seller supplied

Why: Reference Book chapter 11 sets out the traditional view that such drafting is generally proper where the instrument is simple or standardized, the licensee charges no fee for it beyond the regular commission, and the drafting is incidental to her other activities in the transaction. A separate fee removes one of those conditions; the other three facts describe the conditions themselves.

An agent exceeded his authority in a contract that gives the principal a favorable price but also obliges the principal to make repairs. The principal wishes to ratify. What must she do?

1. Ratify the price term alone and reject the repairs
2. Have the third party consent to a partial ratification
3. Ratify the whole act, burdens and benefits alike ✓
4. Ratify within ten days or lose the right to do so

Why: Reference Book chapter 10 lists among the conditions of ratification that the principal must ratify the entire act of the agent, accepting the burdens with the benefits. The time limit the chapter states is not a number of days: ratification must come before the third party withdraws.

In the sales comparison approach, which of these is an element of comparison rather than a unit of comparison?

1. Conditions of sale. ✓
2. Square footage of living area.
3. The number of rooms.
4. The number of dwelling units.

Why: Reference Book chapter 15: units of comparison are property components readily used for comparison, namely site size, square footage, number of rooms and number of units. Elements of comparison are characteristics of the property or the transaction that cause prices to vary: financing terms, time, sale conditions, location, physical characteristics and income.

A rental applicant uses a wheelchair. The manager asks about the nature and severity of her condition before deciding. What may the manager lawfully ask every applicant instead?

1. Whether the applicant has any medical condition at all.
2. Whether the applicant can meet tenancy requirements. ✓
3. Whether the applicant's condition is likely to worsen.
4. Whether the applicant's doctor approves of the unit.

Why: 24 CFR 100.202(c): it is unlawful to INQUIRE AS TO THE NATURE OR SEVERITY OF A HANDICAP, but the rule does not bar INQUIRY INTO AN APPLICANT'S ABILITY TO MEET THE REQUIREMENTS OF OWNERSHIP OR TENANCY, if such inquiries are made of all applicants.

A maintenance supervisor puts off repair requests from tenants of one national origin while promptly fixing others' units. What does this violate?

1. The bar on discriminatory terms, conditions and services. ✓
2. Nothing, as long as every repair request is done eventually.
3. Only the lease, which the tenants must sue to enforce.
4. Only local building codes on the timing of repairs.

Why: 24 CFR 100.65(b)(2): prohibited actions include FAILING OR DELAYING MAINTENANCE OR REPAIRS OF SALE OR RENTAL DWELLINGS BECAUSE OF RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN.

A landlord refuses to rent to a woman who is pregnant, saying the building is meant for adults. Which protection does this engage?

1. None, because no child is yet living with the applicant
2. Sex only, as familial status needs a child under 18 in the home
3. Familial status, which covers a person who is pregnant ✓
4. Handicap, because pregnancy is a physical impairment

Why: 42 U.S.C. 3602(k) defines familial status as one or more individuals under 18 domiciled with a parent or custodian, and provides that the protections against familial status discrimination apply to any person who is pregnant or is securing legal custody of a minor. The refusal is therefore discrimination because of familial status.

What is the habendum clause of a deed?

1. The clause naming the price paid.
2. The to have and to hold clause. ✓
3. The notary's certificate of signing.
4. The legal description of the land.

Why: DRE Reference Book ch. 27: the HABENDUM CLAUSE is THE 'TO HAVE AND TO HOLD' CLAUSE WHICH MAY BE FOUND IN A DEED.

A lender plans to approve a closed-end loan secured by an owner's home mainly because she has large equity, without looking at her income. What does Regulation Z require?

1. A good-faith finding that she can repay, based on more than the home ✓
2. Nothing further, provided the loan-to-value ratio is low enough
3. Only a credit report, as the equity already covers the lender
4. A second appraisal to confirm the equity before consummation

Why: 12 CFR 1026.43(c)(1) bars a covered loan unless the creditor makes a reasonable, good-faith determination that the consumer can repay, and 1026.43(c)(2)(i) requires it to consider income or assets other than the value of the dwelling securing the loan. Lending on equity alone is the practice the rule targets.

A seller's broker tells an eager offeror the seller will take no less than $410,000, then buys the property himself for $390,000 through a friend and resells it to the offeror at $410,000. What may the seller recover?

1. Nothing, as the offeror was willing to pay $410,000
2. Nothing, if $410,000 was fair market value
3. The $20,000 secret profit the broker made ✓
4. Only the unpaid commission on the $390,000 sale

Why: Reference Book chapter 10 states that an agent who falsely represents the price at which property may be bought and then buys for himself at a lower amount, pocketing the difference, will be compelled to disgorge the secret profit, here $20,000, and that the offeror's willingness to pay more, or the property's worth, is immaterial.