Free Virginia Real Estate Practice Exam

Q1.RESPA requires lenders to provide the Loan Estimate form to borrowers within how many business days of receiving a completed loan application?

• A.1 business day
• B.3 business days
• C.5 business days
• D.7 business days

Q2.A Virginia salesperson places an online advertisement for a listed property. Under 18 VAC 135-20-190, which of the following pieces of information is REQUIRED to appear in the advertisement?

• A.The salesperson's individual license number
• B.The name of the brokerage firm with which the salesperson is affiliated
• C.The salesperson's direct cell phone number
• D.The listed price of the property

Q3.A Virginia salesperson is affiliated with Broker A. A licensee from another Virginia firm refers a buyer to the salesperson, and the transaction closes. Who may lawfully pay the referring licensee's compensation?

• A.The salesperson may pay the referring licensee directly from the commission the salesperson earned.
• B.The salesperson's broker (Broker A) may pay the referring licensee directly or through the referring licensee's broker.
• C.The title company may disburse referral compensation directly to the referring licensee at closing.
• D.Either broker involved may pay the referring licensee directly without involving that licensee's principal broker.

Q4.A Virginia home where a murder occurred five years ago is now being listed for sale. Under the Virginia Residential Property Disclosure Act, what is a seller's obligation regarding disclosure of this fact?

• A.The seller must disclose the murder because it is a material adverse fact that affects property value.
• B.The seller is not required to disclose that a murder occurred on the property, and this fact is not considered a material defect.
• C.The seller must disclose the murder only if the buyer asks directly about the property's history.
• D.The seller's agent is required to investigate and independently disclose all prior criminal activity on the property.

Q5.A property closes on September 15th. The annual property taxes of $3,600 have been paid by the seller for the entire year. Using a 365-day year and with the day of closing belonging to the buyer, what amount should be credited to the seller?

• A.$2,259
• B.$1,973
• C.$1,341
• D.$1,627

Q6.A Virginia real estate salesperson meets a prospective buyer for the first time at an open house. According to the Virginia Real Estate Board regulations, when must the salesperson provide the required agency disclosure?

• A.At the time of the first substantive discussion about a specific property.
• B.Only after the buyer signs a buyer representation agreement.
• C.Before the buyer makes any offer to purchase a property.
• D.At or before the time the purchase contract is executed.

Q7.A buyer's agent discovers that the property their client wants to purchase has environmental contamination issues that could trigger CERCLA liability. What is the agent's primary obligation regarding this information?

• A.Investigate the contamination personally before informing the client
• B.Keep the information confidential to avoid affecting the transaction
• C.Only disclose if the contamination poses immediate health risks
• D.Immediately disclose the information to the buyer and recommend appropriate professional evaluation

Q8.During a license renewal audit, a state investigator discovers that a broker's trust account records show a $3,200 shortage on the three-way reconciliation for the past quarter. The broker claims the shortage resulted from a clerical data-entry error that has since been corrected. Which broker obligation is most directly implicated by this finding?

• A.The broker's duty to maintain errors-and-omissions insurance sufficient to cover the shortage amount.
• B.The broker's duty to perform and document periodic three-way reconciliations that balance the client ledger, the journal, and the bank statement, and to correct and report discrepancies promptly.
• C.The broker's duty to obtain written consent from all clients before commingling their funds in a single trust account.
• D.The broker's duty to maintain a separate operating account funded with a minimum broker contribution to cover potential shortages.

Q9.Under most Arizona listing agreements, when is the real estate commission considered 'earned'?

• A.When the listing agreement is signed by both parties
• B.When the seller accepts a ready, willing, and able buyer by executing the purchase contract
• C.When the transaction closes and the deed is recorded
• D.When the buyer submits an offer at full list price

Q10.Under Virginia Real Estate Board regulations, a broker who holds earnest money in an escrow account may NOT do which of the following?

• A.Deposit earnest money into a federally insured financial institution
• B.Keep the earnest money in escrow until closing
• C.Commingle escrow funds with the broker's personal or operating funds
• D.Disburse escrow funds in accordance with the terms of the purchase contract

Q11.A broker supervising a team of salespersons learns that one team member has been quoting higher mortgage interest rates to applicants of one national origin than to similarly qualified applicants of another national origin, without any creditor directive. Under the Fair Housing Act and ECOA, which statement BEST describes the broker's exposure and obligation?

• A.The broker faces potential liability under both the Fair Housing Act and ECOA because brokers can be held vicariously liable for discriminatory acts of affiliated salespersons, and the broker must immediately investigate, correct the conduct, and implement supervisory controls.
• B.The broker has no liability because mortgage rate quoting is regulated exclusively by the lender, and the salesperson's conduct is outside the broker's scope of supervision.
• C.Only the salesperson is liable under ECOA because the statute applies solely to creditors, and the broker's liability is limited to Fair Housing Act violations arising from property sales.
• D.The broker is insulated from liability as long as a written anti-discrimination policy exists in the brokerage's policy manual.

Q12.A buyer's title insurance policy does NOT protect against:

• A.Forged signatures on prior deeds in the chain of title
• B.Undisclosed liens on the property that existed before closing
• C.Defects in the title that existed before the policy's effective date
• D.Future encumbrances created by the owner after the policy is issued

Q13.Under the Fair Housing Act, which federal agency has primary enforcement authority for investigating housing discrimination complaints?

• A.Federal Trade Commission (FTC)
• B.Consumer Financial Protection Bureau (CFPB)
• C.Department of Housing and Urban Development (HUD)
• D.Environmental Protection Agency (EPA)

Q14.A broker's affiliated salesperson is found to have repeatedly steered minority buyers away from listings in predominantly white neighborhoods. Under the Fair Housing Act, which of the following best describes the broker's potential liability?

• A.The broker bears no liability because the salesperson acted independently without the broker's knowledge or direction.
• B.The broker may be held vicariously liable under a respondeat superior theory if the salesperson was acting within the scope of employment, and HUD may impose civil penalties against the broker directly.
• C.The broker's liability is limited to returning any commissions earned on the discriminatory transactions.
• D.Only the salesperson can be sanctioned; federal law does not extend Fair Housing Act liability to supervising brokers.

Q15.A Virginia salesperson is interested in purchasing a property listed by her own brokerage. Under Virginia Real Estate Board regulations, what must she do before entering into the transaction?

• A.She must resign from the brokerage before making an offer to avoid any conflict of interest.
• B.She must disclose her licensed status and her interest in the transaction in writing to the seller.
• C.She must obtain written permission from the Virginia Real Estate Board before purchasing the property.
• D.She must have a separate, unaffiliated brokerage represent her in the transaction.