Free Virginia Real Estate Exam Flashcards

The licensing and disciplinary authority for Virginia real estate licensees. Operates within the Department of Professional and Occupational Regulation (DPOR), sets education and renewal requirements, and enforces Title 54.1, Chapter 21 of the Code of Virginia.

The umbrella state agency that houses the Virginia Real Estate Board, processes license applications, and handles complaints and investigations. DPOR is the regulator; the Real Estate Board is the policy-making body within it.

60 hours of Board-approved Principles of Real Estate, typically split as 30 hours national real estate principles + 30 hours Virginia practices. Must be completed before scheduling the PSI exam.

An additional 180 hours of Board-approved broker education plus at least 3 years of active salesperson experience within the previous 4 years. Brokers may operate independently and supervise salespersons.

Applicants must be at least 18, hold a high school diploma or equivalent, be of good reputation for honesty and integrity, complete pre-license education, and submit fingerprints for a Virginia and FBI criminal records check.

Biennial — every 2 years. Active salespersons must complete 16 hours of continuing education each renewal period. Renewal fee is $65; late renewal is permitted within 12 months with reinstatement fee, after which a new application is required.

New Virginia salespersons must complete 30 hours of Board-approved post-license education within their first license term (before first renewal). This is separate from and in addition to ongoing CE.

For licenses expiring before 6/30/2026: 16 hours = 8 mandatory (fair housing, legal updates, ethics, agency, contracts, escrow, federal/state law, current issues) + 8 elective. For licenses expiring on/after 7/1/2026: 11 mandatory + 5 elective.

120 total multiple-choice questions: 80 national (105 minutes) + 40 Virginia state (45 minutes). 75% required on each section independently. PSI is the sole exam administrator in Virginia.

Compensates consumers with uncollectible court judgments against licensees for fraud or improper conduct. Capped at $20,000 per single claim and $100,000 per licensee per biennial period (prorated if exceeded). Funded by per-licensee assessments collected at licensure and renewal.

Earnest money and other client funds held by a Virginia broker must be deposited into an escrow account by the end of the 5th business banking day following ratification of the purchase contract, unless the contract specifies otherwise in writing.

Brokers must maintain escrow funds in a separately identified non-interest-bearing account at a federally insured Virginia financial institution. Commingling escrow funds with the broker's operating funds is a license law violation.

Sellers of residential property must deliver a Disclosure Statement on the Board-approved form before contract ratification. Virginia follows a 'buyer beware' (caveat emptor) framework — the seller generally makes no representations and the buyer assumes the duty to inspect.

If the seller fails to deliver the required Residential Property Disclosure Statement before ratification, the buyer may terminate the contract by written notice within 3 days of actually receiving the statement (or until settlement, whichever is earlier).

The Act does not apply to new construction with a 1-year warranty, transfers by foreclosure, transfers between co-owners or to family, court-ordered transfers (divorce, estate), or transfers to/from a government entity.

Governs single-family HOAs in Virginia. Requires sellers to deliver an Association Disclosure Packet. Buyer has a 3-day right to cancel after receipt of the packet (or until settlement, whichever is earlier). Administered by the Common Interest Community Board.

Governs Virginia condominiums. Sellers must deliver a Resale Certificate. Buyer has a 3-day cancellation right after receiving the certificate (or until settlement, whichever is earlier). Also administered by the Common Interest Community Board.

A separate Virginia board within DPOR that regulates HOAs, condo associations, time-share projects, and CIC managers. Distinct from the Real Estate Board but tested because licensees handle CIC-governed properties.

Virginia licensees must disclose their brokerage relationship in writing at the first substantive discussion with an unrepresented party (not just at contract). Required for buyers, sellers, tenants, and landlords using a Board-approved disclosure form.

A Virginia licensee owing full statutory fiduciary duties — performance, loyalty, disclosure, confidentiality, accounting, and reasonable care — to the represented client. The default agency type when a written brokerage agreement does not limit services.

A Virginia licensee who, by written agreement, performs only specified services (e.g., MLS entry only). The brokerage agreement must list which standard agent duties are excluded. Common in flat-fee listings.

Two licensees within the same firm represent the buyer and seller in one transaction as separate designated agents. Each owes full fiduciary duties to their client; the supervising broker becomes a dual agent with limited duties and must obtain written consent from both clients.

One licensee represents both buyer and seller (or landlord and tenant) in the same transaction. Permitted only with written, informed consent from both clients before the dual representation begins. Required disclosures are set by Board regulation.

Effective July 1, 2024, a Virginia licensee must have a signed written brokerage agreement with a buyer or tenant before showing any property. The agreement must state services provided and how the licensee is compensated.

State tax on deed transfers, paid by the seller (grantor) at $0.50 per $500 of consideration ($1.00 per $1,000). Calculated on sale price or value, whichever is greater.

Tax on recording the deed, typically paid by the buyer (grantee) at $0.25 per $100 of consideration (state portion). Localities add their own recordation tax of up to one-third of the state amount.

An extra grantor's tax in designated Northern Virginia localities to fund transportation. Adds $0.15 per $100 of consideration on top of the state grantor's tax — paid by the seller at closing.

Under the Virginia Consumer Real Estate Settlement Protection Act (CRESPA), only licensed attorneys, title insurance agents, real estate brokers (with proper registration), and financial institutions may handle residential settlements in Virginia.

Virginia Fair Housing Law mirrors the federal seven (race, color, religion, national origin, sex, familial status, disability) and adds: elderliness (age 55+), source of funds, sexual orientation, gender identity, military status, and pregnancy.

Federal law prohibiting housing discrimination based on race, color, religion, national origin, sex, familial status, and disability. Enforced by HUD. Virginia law adds additional protected classes beyond federal minimums.

The highest and most complete form of ownership in real property — unlimited duration, freely transferable by deed or will, and inheritable. The default form of ownership in Virginia residential transactions.

A co-ownership form available only to legally married couples in Virginia, with right of survivorship. Neither spouse may convey or encumber the property alone, and the property is generally protected from one spouse's individual creditors.

Co-ownership where surviving owners automatically inherit a deceased co-owner's share. In Virginia the right of survivorship must be expressly stated in the deed; otherwise co-owners are presumed to be tenants in common.

An ownership interest measured by the life of a named person (the life tenant). Upon that person's death, the estate passes to a remainderman named in the deed or reverts to the grantor.

Contracts for the sale or transfer of real property, and most leases longer than one year, must be in writing and signed by the party to be charged to be enforceable.

Once a written contract is fully integrated, prior or contemporaneous oral statements cannot be used to contradict, vary, or add to its terms. Protects the integrity of the signed real estate contract.

The three core elements of contract formation. An offer is a definite promise; acceptance must mirror the offer; consideration is the bargained-for exchange of value. Missing any element makes the contract void or unenforceable.

A mortgage loan not insured or guaranteed by a government agency. Requires private mortgage insurance (PMI) when the borrower's down payment is less than 20% (LTV above 80%).

A residential loan insured by the Federal Housing Administration (HUD). Allows down payments as low as 3.5% with a 580+ credit score. Borrowers pay an upfront and annual Mortgage Insurance Premium (MIP) for most of the loan's life.

A mortgage loan guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, and qualifying spouses. Common features: zero down payment, no PMI, and a one-time funding fee.

Prepaid interest paid at closing to lower the loan's interest rate. One point equals 1% of the loan amount. Each point typically reduces the rate by about 0.25%, though the exact buydown varies by lender.

Loan amount divided by the lesser of appraised value or sale price. Conventional loans with LTV above 80% require PMI; LTV above 95% is rare. Lower LTV means lower lender risk and usually better pricing.

Federal law governing residential settlement of federally related mortgage loans. Prohibits kickbacks for referrals (Section 8), requires the Loan Estimate and Closing Disclosure, and regulates escrow accounts for taxes/insurance.

Combines TILA and RESPA forms into the Loan Estimate (delivered within 3 business days of application) and the Closing Disclosure (delivered at least 3 business days before consummation). Enforced by the CFPB.

Equal Credit Opportunity Act prohibits lenders from discriminating in any credit transaction based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or exercising rights under consumer credit laws.

An appraisal method that estimates value by adjusting recent sales of comparable properties for differences in features, location, and conditions of sale. The primary approach for owner-occupied residential property.

An appraisal method that estimates value as land value plus the depreciated reproduction or replacement cost of improvements. Best used for new construction, unique properties, or special-use buildings with few comparables.

Values income-producing property by dividing Net Operating Income by the capitalization rate (V = NOI / R). The primary approach for commercial and rental properties. Higher cap rate signals higher risk or lower price.

Federal law requiring sellers and landlords of housing built before 1978 to disclose known lead-based paint hazards, provide the EPA pamphlet 'Protect Your Family from Lead in Your Home,' and give buyers a 10-day inspection opportunity.

Virginia environmental law requiring local governments in Tidewater Virginia to establish Resource Protection Areas with 100-foot buffers from tidal waters and wetlands where development is restricted. Often triggers disclosure and site-design requirements.