Free Virginia Real Estate Practice Exam

Q1.Under Virginia law, which of the following activities would require a real estate license issued by the Virginia Real Estate Board (VREB)?

• A.An attorney negotiating the sale of a client's property as part of legal representation in an estate matter.
• B.A property manager employed directly by a single owner to manage that owner's apartment complex for a salary.
• C.A person who, for compensation, lists several neighbors' homes for sale on behalf of those owners.
• D.A trustee selling real property under the express authority granted in a deed of trust.

Q2.In an attorney state where attorneys must conduct closings, which party typically has the legal obligation to ensure that all federal disclosure requirements under RESPA are met during the settlement process?

• A.The closing attorney representing both parties
• B.The real estate agents involved in the transaction
• C.The title insurance company issuing the policy
• D.The lender or mortgage broker originating the loan

Q3.Under CERCLA, which defense would most likely protect a current property owner from Superfund liability for pre-existing contamination?

• A.Proving they conducted a Phase I Environmental Assessment before purchase
• B.Demonstrating they meet all requirements of the innocent landowner defense including appropriate inquiry
• C.Showing the contamination occurred more than 10 years before they purchased
• D.Establishing that cleanup costs exceed the property's current market value

Q4.A broker manages 50 residential rental properties for various owners. Rents collected from tenants are deposited into a single property management trust account. One owner demands that the broker immediately wire that owner's monthly net proceeds to an overseas account before the broker has reconciled the account for the month. The broker suspects the account may have a shortage due to a bank error. What is the broker's most appropriate course of action?

• A.Delay the disbursement until the monthly reconciliation is completed and the suspected shortage is resolved, notify the owner promptly of the delay and its reason, and document all communications to demonstrate good-faith compliance with fiduciary and recordkeeping duties.
• B.Wire the funds immediately because the owner, as principal, has the absolute right to demand disbursement at any time and the broker has no authority to withhold earned proceeds.
• C.Transfer funds from the broker's operating account into the trust account to cover the suspected shortage, then wire the owner's proceeds.
• D.Close the existing trust account and open a new one to isolate the potential error before disbursing any funds.

Q5.Under the Virginia Residential Property Disclosure Act, which of the following transactions is EXEMPT from the requirement to provide a Residential Property Disclosure Statement?

• A.The sale of a single-family home by an owner who has lived there for less than one year
• B.The sale of a newly constructed home being sold for the first time by the builder
• C.A court-ordered sale, such as a sale by a trustee in bankruptcy or a fiduciary who has never occupied the property
• D.The sale of a condominium unit in a building with fewer than four units

Q6.A Virginia real estate salesperson is purchasing a property that is listed with another agent in the same brokerage. The salesperson intends to use the property as a personal investment. What disclosure obligation does Virginia law impose on this salesperson?

• A.No disclosure is required because the salesperson is not representing either party in the transaction.
• B.The salesperson must disclose in writing, before the contract is signed, that they hold a real estate license and that they have a personal interest in the transaction.
• C.The salesperson must disclose their licensee status only to the listing broker, not to the seller.
• D.The salesperson must obtain written permission from the Virginia Real Estate Board before purchasing the property.

Q7.Which federal law prohibits lenders from discriminating against loan applicants based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance?

• A.Equal Credit Opportunity Act (ECOA)
• B.Fair Housing Act
• C.Truth-in-Lending Act
• D.Real Estate Settlement Procedures Act (RESPA)

Q8.A broker recruits a salesperson from a competing brokerage by promising to pay her a 'sign-on bonus' funded by splitting a referral fee the broker received from a mortgage lender for steering the salesperson's future clients to that lender. The referral arrangement is undisclosed to clients. Which federal law is MOST directly violated, and who bears primary liability?

• A.The Equal Credit Opportunity Act (ECOA); the lender bears primary liability for discriminatory credit terms offered through the referral arrangement.
• B.RESPA Section 8 (12 U.S.C. § 2607); both the broker and the lender bear liability because the arrangement constitutes a prohibited kickback — a thing of value exchanged for the referral of settlement service business — and the broker's use of the kickback to fund the salesperson's bonus does not insulate either party.
• C.The Truth-in-Lending Act (TILA); the broker is primarily liable for failing to disclose the Annual Percentage Rate impact of the referral arrangement to borrowers.
• D.The Sherman Antitrust Act; the exclusive referral agreement between the broker and lender constitutes a per se illegal tying arrangement that restricts consumer choice.

Q9.A real estate agent represents the seller in a transaction but also shows properties to potential buyers. What type of agency situation does this create?

• A.Single agency
• B.Dual agency
• C.Designated agency
• D.No agency relationship exists with buyers

Q10.A residential mortgage lender sends a broker's office a weekly supply of branded notepads as a 'thank you' for loan referrals. The managing broker is aware of the arrangement. Under RESPA Section 8, which analysis is MOST accurate?

• A.The notepads likely constitute a prohibited kickback because they are a thing of value given in exchange for the referral of settlement service business, and the managing broker may share liability for knowingly permitting the arrangement.
• B.The notepads are permissible because marketing materials of nominal value are expressly exempted from RESPA's prohibition on kickbacks.
• C.The arrangement is lawful provided the broker discloses the receipt of the notepads on each transaction's Closing Disclosure.
• D.Only the lender is liable under RESPA Section 8; the broker who receives the items has no exposure.

Q11.After an agent terminates employment at a brokerage following a harassment complaint, the brokerage's fair housing liability:

• A.Ends automatically when the agent is terminated
• B.Transfers entirely to the former agent
• C.Is resolved as long as the broker cooperates with HUD's investigation
• D.Continues — the brokerage remains the respondent in any pending complaint

Q12.A salesperson working for ABC Realty meets a prospective buyer at an open house for the first time. The buyer begins sharing personal financial information and motivation for purchasing. According to Virginia Real Estate Board rules (18 VAC 135-20), when must the salesperson provide the required agency disclosure?

• A.Before the end of the first substantive discussion about the buyer's specific needs, financial situation, or motivation.
• B.At the time a written purchase contract is presented.
• C.Only when the buyer formally signs a buyer-brokerage agreement.
• D.Within three business days of the first meeting between the licensee and the prospective buyer.

Q13.A lender denies a mortgage application from a married couple, citing the income of only one spouse even though both spouses applied jointly. Under which federal law would this practice most likely constitute a violation?

• A.Real Estate Settlement Procedures Act (RESPA)
• B.Equal Credit Opportunity Act (ECOA)
• C.Home Mortgage Disclosure Act (HMDA)
• D.Truth in Lending Act (TILA)

Q14.A Virginia salesperson is showing a buyer a home listed by another firm. At what point is the salesperson required by Virginia law to provide the buyer with a written disclosure of the brokerage relationship?

• A.Only at the time an offer is written and presented to the listing agent.
• B.No later than the time of the first substantive discussion about a specific property.
• C.Before the salesperson schedules any property showings.
• D.At settlement, as part of the closing disclosure package.

Q15.Which federal agency is responsible for enforcing lead-based paint disclosure requirements in residential real estate transactions?

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