VA Real Estate Exam Pt. 1 Correct 100%

Sole Proprietor: Principal Broker Owner - Answer An individual broker, not a firm, trading under his or her bame or a ficticious name registered with the board. NO business entity firm license required Sole Proprietor: Non-Broker Owner - Answer A brokerage firm owned by an unlicensed individual. The firm must get a business entity firm license before transacting RE business. The firm still must have a licensed principal broker Inactive Status - Answer Any broker or salesperson not under supervision of a broker, not active in a firm or sole Proprietorship, and not performing and RE acts Valuable Consideration - Answer Anything of value given as commission, referral fee, finder's fee, etc. Active - Answer Any broker or Salesperson who is under the supervision of a principal broker Actively Engaged - Answer Active licensure with a licensed firm performing RE activities for an average of 40 hours a week Associate Broker - Answer A licensed broker that is required to meet the same education requirements as the principal broker but has the same restrictions as salespeople The Virginia General Assembly (is responsible for...) - Answer Who is responsible for creating and amending the Code of Virginia? Chapter 21 of Title 54.1, Professions and Occupations of the Code of Virginia (addresses what?) - Answer What doctrine addresses real estate professionals in VA? Police Power (allows what?) - Answer What power allows the commonwealth of Virginia to establish the VA real estate license law? Seven members who have been licensed for at least 5 consecutive years and two citizen members (make up...) - Answer The Real Estate Board (consists of...) The Governor (appoints...); one 4 year term and can be reappointed for another 4 years - Answer Who appoints RE Board Members and how long are their terms? 1. Proclaim necessary regulations to maintain chapter 21 2. Establish requirements for licenses 3. Enforce license law 4. Suspend, revoke, not renew licenses 5. Levy fines for violation of laws and regulations 6. Determine license fees 7. Issue and renew licenses 8. Approve RE schools and courses 9. Waive education requirements when licensed has equivalent education - Answer Things the real estate Board does 1. The VA Fair Housing Law 2. The VA Condominium Act 3. The VA Time Share Act 4. The VA Transaction Recovery Fund - Answer The 4 doctrines the Board is in charge of administering are: 1. Arbitrate disputes between salespersons and brokers 2. Arbitrate disputes between brokers 3. Establish commission rates or splits 4. Standardize any forms used in the industry (such as listing agreements) - Answer The Real Estate Board does NOT: b) the courts - Answer Who settles disputes between brokers regarding commission? a) DPOR b) the courts c) the real estate board Firm - Answer Any non broker owner, partnership, association, LLC, or corporation required to get a business entity firm license to engage in real estate 1. You must enter into a brokerage relationship based upon a brokerage agreement stating you are not their agent 2. The IC is obligated to the things in the brokerage agreement 3. The IC is NOT obligated by the standard agency obligations - Answer The requirements for an independent contractor relationship are... Transaction Broker - Answer Another name for an independent contractor is... Limited Service Representative - Answer A licensee who represents a client with respect to real property of 1-4 residential units, but the brokerage agreement specifically excludes 1 or more of the standard agency obligations Principal to a Transaction - Answer A party to a real estate transaction. Ex: buyer, seller, landlord, tenant, optioner, optionee, licensor, licensee. (Excluding real estate agent involved if hey are only performing brokerage services) Regulant - Answer Any person, partnership, association, corporation, agency, firm, or other entity licensed as a RE broker or salesperson Respondent - Answer The defendant in an action for possible violations of license law, fair housing law, or claims for payment from the Transaction Recovery Fund Standard Agent - Answer A licensee who acts for/represents a client in an agency relationship. Obligated by standard obligations provided for in VA RE law + any additional obligations in brokerage agreement Supervising Broker - Answer The broker that supervises all licensees or a designated agent in a branch office. Must be assigned by the principal broker or be the principal broker 1. The rights + obligations of a client under the VA residential property disclosure act 2. The obligation of client to deliver or receive the Condominium Resale Certificate (if applicable) 3. The obligation of client to deliver or receive the Property Owner Association Disclosure Packet (if applicable) - Answer A Limited Service Representative must disclose _______ to their client in writing Artificial Person - Answer Any legal entity such as a corporation, partnership, or association Yes, they are - Answer Is an artificial person still a "person"? Principal Broker - Answer The individual broker responsible for the activities of the firm and all its licensees. He receive all communication from the Board and assure compliance with VA RE law The Real Estate Board (is responsible for...) - Answer Who is responsible for VA RE licensure law and related rules and regulations? Client - Answer A person that has entered into a brokerage agreement with a licensee DPOR - Answer The Department of Professional and Occupational Regulation Dwelling - Answer Any building, structure, or portion thereof intended for occupancy as a residence for one or more families. Or vacant land with the intention to build such a structure No they are not. The VAR can only deny membership - Answer Are the Standards of Ethics developed by the VA Association of Realtors enforceable by law? Any person who 1. Sells or offers to sell 2. Buys or offers to buy 3. Negotiates an exchange 4. Rents, leases, or negotiates a lease ...of RE for valuable consideration (is required to have...) - Answer Who is required to have a real estate license?