Virginia Real Estate Exam
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Question 1 of 5.
A licensee has had a few casual meetings with a potential client. The client has shared the type of home and areas they are interested in, and the licensee has suggested a few homes that might match the clients preferences. Although the licensee hasnt explicitly said they will continue searching for homes, the client believes they will do so. Which of the following statements about this situation is correct?
A. Because the licensee doesnt know if the potential client is working with another agent, they have unintentionally created a dual-agency situation.
B. Because the licensee has taken certain steps, such as repeatedly speaking to the potential client, they have expressed an agency agreement with the client.
C. The licensee and the potential client have no agency agreement, either formal or implied, until the licensee begins sharing the potential clients credit information.
D. The licensees actions may have created an implied agency with this potential client.
Explanation: The licensee’s conduct could create implied agency. Dual agency requires representation of both parties. Sharing credit information is not the trigger, and express agency requires an explicit agreement
Question 2 of 5.
What type of loan is a builder using if the builder is using two properties as collateral for the loan?
A. Blanket
B. Over secured
C. Package
D. Wrap-around
Explanation: Blanket mortgage is specifically designed to cover two or more properties under a single loan, often used by builders and developers. An oversecured loan isn’t a loan type but simply describes when collateral exceeds the loan amount. A package mortgage includes both real property and personal property (such as appliances) as collateral, not multiple properties. A wrap-around mortgage incorporates an existing loan into new financing but doesn’t allow multiple properties to serve as collateral. Thus, the only loan type fitting this situation is the blanket mortgage.
Question 3 of 5.
What instruments are commonly used to secure the purchase of real property?
A. Deed of trust and promissory note
B. Mortgage and deed of trust
C. Mortgage and lease
D. Mortgage and promissory note
Explanation: The instruments most commonly used to secure the purchase of real property are a promissory note and a mortgage. The promissory note is the borrower’s written promise to repay the loan, while the mortgage serves as the security instrument giving the lender rights to the property if repayment fails. A deed of trust and promissory note serve the same function in some states but are not used together with a mortgage. A mortgage and deed of trust are alternatives, not combined instruments, and a mortgage and lease have no connection in securing property financing.
Question 4 of 5.
How many single-family houses may an individual own in Virginia and still be exempt from fair housing laws?
A. Five
B. Four
C. Three
D. Two
Explanation: In Virginia, an individual may own up to four single-family houses and still be exempt from fair housing laws. Owning five exceeds the exemption limit, while two or three understate the actual threshold allowed. This exemption is narrow and comes with conditions, but four is the maximum number permitted.
Question 5 of 5.
A seller you're working with still owes $350,000 on their mortgage but wants to net $20,000 after the mortgage and a 7% commission are paid. What is the minimum price for which the house must sell?
A. $75,269
B. $79,645
C. $89,980
D. $96,450
Explanation: Need $370,000 net; divide by 0.93 ~ $397,849; closest choice is $396,450; others are far too low.