1|Page | © copyright 2024/2025 | Grade A+
VA real estate psi notes Questions
and Answers (100% Pass)
If there is in effect at the date of the foreclosure sale a real estate purchase
contract to buy the property foreclosed upon and the real estate purchase
contract provides that the earnest money deposit held in escrow by a firm or
sole proprietorship shall be paid to a principal to the contract in the event of
a termination of the real 25 estate purchase contract, what shall happen>
✓ If there is in effect at the date of the foreclosure sale a real estate
purchase contract to buy the property foreclosed upon and the real
estate purchase contract provides that the earnest money deposit
held in escrow by a firm or sole proprietorship shall be paid to a
principal to the contract in the event of a termination of the real 25
estate purchase contract, the foreclosure shall be deemed a
termination of the real estate purchase contract, and the principal
broker or supervising broker may, absent any default on the part of the
purchaser, disburse the earnest money deposit to the purchaser
pursuant to such provisions of the real estate purchase contract
without further consent from or notice to the principals.
"Active"
Master01 | October, 2024/2025 | Latest update
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✓ any broker or salesperson who is under the supervision of a principal or
supervising broker of a firm or sole proprietor and who is performing
those activities defined
"Actively engaged"
✓ means active licensure with a licensed real estate firm or sole
proprietorship in performing those activities as defined in §§ 54.1-2100
and 54.1-2101 of the Code of Virginia for an average of at least 40
hours per week. This requirement may be waived at the discretion of
the board
"Actively engaged in the brokerage business"
✓ means anyone who holds an active real estate license.
"Associate broker"
✓ means any individual licensee of the board holding a broker's license
other than one who has been designated as the principal broker.
"Client"
✓ means a person who has entered into a brokerage relationship with a
licensee
Master01 | October, 2024/2025 | Latest update
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"Firm"
✓ means any sole proprietorship (non-broker owner), partnership,
association, limited liability company, or corporation, other than a sole
proprietorship (principal broker owner), which is required by 18VAC135-
20-20 B to obtain a separate brokerage firm license. The firm's licensed
name may be any assumed or fictitious name properly filed with the
board.
"Inactive status"
✓ means any broker or salesperson who is not under the supervision of a
principal broker or supervising broker, who is not active with a firm or
sole proprietorship, and who is not performing any of the activities
"Independent contractor"
✓ means a licensee who acts for or represents a client other than as a
standard agent and whose duties and obligations are governed by a
written contract between the licensee and the client.
"Licensee"
✓ means real estate brokers and salespersons
"Principal broker"
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ means the individual broker who shall be designated by each firm to
assure compliance with Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of
the Code of Virginia, and this chapter, and to receive communications
and notices from the board that may affect the firm or any licensee
active with the firm. In the case of a sole proprietorship, the licensed
broker who is the sole proprietor shall have the responsibilities of the
principal broker. The principal broker shall have responsibility for the
activities of the firm and all its licensees. The principal broker shall have
signatory authority on all escrow accounts maintained by the firm.
"Principal to a transaction"
✓ means a party to a real estate transaction including without limitation
a seller or buyer, landlord or tenant, optionor or optionee, licensor or
licensee. For the purposes of this chapter, the listing or selling broker, or
both, are not by virtue of their brokerage relationship, principals to the
transaction.
"Sole proprietor"
✓ means any individual, not a corporation, limited liability company,
partnership, or association, who is trading under the individual's name
or under an assumed or fictitious name
Master01 | October, 2024/2025 | Latest update
VA real estate psi notes Questions
and Answers (100% Pass)
If there is in effect at the date of the foreclosure sale a real estate purchase
contract to buy the property foreclosed upon and the real estate purchase
contract provides that the earnest money deposit held in escrow by a firm or
sole proprietorship shall be paid to a principal to the contract in the event of
a termination of the real 25 estate purchase contract, what shall happen>
✓ If there is in effect at the date of the foreclosure sale a real estate
purchase contract to buy the property foreclosed upon and the real
estate purchase contract provides that the earnest money deposit
held in escrow by a firm or sole proprietorship shall be paid to a
principal to the contract in the event of a termination of the real 25
estate purchase contract, the foreclosure shall be deemed a
termination of the real estate purchase contract, and the principal
broker or supervising broker may, absent any default on the part of the
purchaser, disburse the earnest money deposit to the purchaser
pursuant to such provisions of the real estate purchase contract
without further consent from or notice to the principals.
"Active"
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ any broker or salesperson who is under the supervision of a principal or
supervising broker of a firm or sole proprietor and who is performing
those activities defined
"Actively engaged"
✓ means active licensure with a licensed real estate firm or sole
proprietorship in performing those activities as defined in §§ 54.1-2100
and 54.1-2101 of the Code of Virginia for an average of at least 40
hours per week. This requirement may be waived at the discretion of
the board
"Actively engaged in the brokerage business"
✓ means anyone who holds an active real estate license.
"Associate broker"
✓ means any individual licensee of the board holding a broker's license
other than one who has been designated as the principal broker.
"Client"
✓ means a person who has entered into a brokerage relationship with a
licensee
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
"Firm"
✓ means any sole proprietorship (non-broker owner), partnership,
association, limited liability company, or corporation, other than a sole
proprietorship (principal broker owner), which is required by 18VAC135-
20-20 B to obtain a separate brokerage firm license. The firm's licensed
name may be any assumed or fictitious name properly filed with the
board.
"Inactive status"
✓ means any broker or salesperson who is not under the supervision of a
principal broker or supervising broker, who is not active with a firm or
sole proprietorship, and who is not performing any of the activities
"Independent contractor"
✓ means a licensee who acts for or represents a client other than as a
standard agent and whose duties and obligations are governed by a
written contract between the licensee and the client.
"Licensee"
✓ means real estate brokers and salespersons
"Principal broker"
Master01 | October, 2024/2025 | Latest update
, 1|Page | © copyright 2024/2025 | Grade A+
✓ means the individual broker who shall be designated by each firm to
assure compliance with Chapter 21 (§ 54.1-2100 et seq.) of Title 54.1 of
the Code of Virginia, and this chapter, and to receive communications
and notices from the board that may affect the firm or any licensee
active with the firm. In the case of a sole proprietorship, the licensed
broker who is the sole proprietor shall have the responsibilities of the
principal broker. The principal broker shall have responsibility for the
activities of the firm and all its licensees. The principal broker shall have
signatory authority on all escrow accounts maintained by the firm.
"Principal to a transaction"
✓ means a party to a real estate transaction including without limitation
a seller or buyer, landlord or tenant, optionor or optionee, licensor or
licensee. For the purposes of this chapter, the listing or selling broker, or
both, are not by virtue of their brokerage relationship, principals to the
transaction.
"Sole proprietor"
✓ means any individual, not a corporation, limited liability company,
partnership, or association, who is trading under the individual's name
or under an assumed or fictitious name
Master01 | October, 2024/2025 | Latest update
