1. A salesperson is offered a $1,000 bonus directly by a builder for selling one of the builder's homes. Under Virginia regulations, the salesperson may accept it only if:
Answer & explanation
Answer: D. 18VAC135-20-280 bars a salesperson or associate broker from accepting compensation for licensed activity from anyone other than their principal or supervising broker without that broker's prior written consent.
2. A contract signed by a 17-year-old buyer is generally:
Answer & explanation
Answer: B. Contracts with minors are voidable at the minor's option; the adult party remains bound. A contract with someone adjudged insane is void.
3. Which is NOT an essential element of a valid contract?
Answer & explanation
Answer: C. The essential elements are offer and acceptance (mutual consent), consideration, competent parties and legal purpose. Notarization is not required for a contract to be valid.
4. A Virginia brokerage agreement does not state a termination date. When does it end?
Answer & explanation
Answer: A. Section 54.1-2137 requires a definite termination date; if none is specified, the agreement terminates 90 days after its date. The same 90-day default applies to residential property management agreements under § 54.1-2135.
5. A tenant fails to pay rent when due. Under the VRLTA, the landlord serves written notice. How long does the tenant have to pay before the landlord may terminate the rental agreement?
Answer & explanation
Answer: D. Section 55.1-1245 F gives the tenant 14 days after written notice to pay before the landlord may terminate for nonpayment.
6. A licensee representing the seller who learns the buyer will pay more than the offer must:
Answer & explanation
Answer: C. Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.
7. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):
Answer & explanation
Answer: D. In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.
8. A contract that is missing an essential element, such as consideration, is:
Answer & explanation
Answer: A. Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.
9. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)
10. A listing goes under contract, but a third-party website the licensee does not control still shows it as active. What must the licensee do?
Answer & explanation
Answer: C. 18VAC135-20-190 B requires timely updates after a material change in status and, when a third party controls the ad, a timely written request for changes.
11. Which must appear in a Virginia limited service agent agreement?
Answer & explanation
Answer: D. Section 54.1-2138.1 requires the agreement to state the licensee is acting as a limited service agent, list the services provided, and list the standard duties not provided, conspicuously. The sample language confirms the other party's licensee has no duty to perform excluded services.
12. After a listing agreement expires, which duty does the licensee still owe the former client?
Answer & explanation
Answer: B. Under § 54.1-2137, after termination the licensee owes no further duties except accounting for money and property and keeping confidential personal and financial information, unless otherwise agreed in writing or required by law.
13. Under § 54.1-2132 as amended in 2025, when must a buyer's agent enter into a brokerage agreement with a prospective buyer?
Answer & explanation
Answer: C. Section 54.1-2132 A 1 requires a licensee engaged by a buyer to enter into a brokerage agreement with the prospective buyer prior to showing property to the buyer.
14. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?
Answer & explanation
Answer: A. At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.
15. A seller is under contract, and a second written offer arrives. Under § 54.1-2131, the listing agent must:
Answer & explanation
Answer: C. Section 54.1-2131 requires the seller's agent to present all written offers and counteroffers in a timely manner, even when the property is already under contract. 18VAC135-20-300 also makes failure to deliver offers a violation.
16. A financing contingency in a purchase agreement protects the:
Answer & explanation
Answer: C. A financing (mortgage) contingency lets the buyer cancel without penalty if unable to secure the specified loan by the deadline.
17. Which is the most common and desirable way a real estate sales contract terminates?
Answer & explanation
Answer: C. Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.
18. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:
Answer & explanation
Answer: D. Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.
19. After the buyer and seller sign a sales contract but before closing, the contract is:
Answer & explanation
Answer: B. A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).
20. A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?
Answer & explanation
Answer: B. A counteroffer is a rejection and a new offer; the original offer cannot be revived by the buyer.
21. A contract that has all legal elements but where one party may cancel is:
Answer & explanation
Answer: D. A voidable contract is valid but one party may rescind it (e.g., a minor, or a party induced by misrepresentation or duress). A void contract lacks an essential element and has no legal effect.
22. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:
Answer & explanation
Answer: C. In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.
23. A sale falls through and the buyer and seller each claim the earnest money. The contract is not clear about who is entitled to it. Which action may the broker take?
Answer & explanation
Answer: B. Section 54.1-2108.2 lets a broker disburse only by written agreement of all principals, court order, interpleader, or the clear and explicit terms of the contract. The broker does not decide who is right, cannot split the money on its own, and gets no part of the deposit absent written agreement.
24. A purchase contract is ratified on Wednesday, July 1, 2026 and the listing firm holds the earnest money. There are no bank holidays that week other than Friday, July 3 (Independence Day observed). What is the latest day to deposit the funds?
Answer & explanation
Answer: D. Count business banking days after ratification: Thursday July 2 (1), Friday July 3 is a holiday, Monday July 6 (2), Tuesday July 7 (3), Wednesday July 8 (4), Thursday July 9 (5). July 8 is the answer only if the holiday is ignored.
25. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:
Answer & explanation
Answer: D. A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.
Sources
Source verification pending. Confirm current requirements with your state regulator.