Virginia Real Estate Broker Exam - State Portion

Under an exclusive right-to-sell the broker earns the full agreed commission no matter who sells the property (including the seller personally), while under an exclusive agency the seller retains the right to sell it himself without owing the broker a commission.

A void contract (e.g., one made by a person legally adjudicated mentally incompetent, a forged signature, an illegal purpose, or one missing all essential elements) has no legal effect from the beginning, whereas a voidable contract (e.g., one entered into under duress, or by a minor or intoxicated person) is valid and enforceable unless the party entitled to disaffirm does so within a period of time.

An unenforceable contract, such as an oral agreement to sell real property, may have all valid elements but cannot be enforced in court because it fails the Statute of Frauds writing requirement, unlike void contracts (illegal purpose) or voidable ones (minors, intoxicated persons).

A latent defect is a structural defect that is hidden and would not be visible or discoverable by ordinary inspection (and known latent defects must be disclosed), while a patent defect is visible and observable on a routine walkthrough.

Joint tenancy requires the four unities of time, title, interest, and possession and carries the right of survivorship, while a tenancy in common has no right of survivorship — a deceased co-tenant's interest passes to heirs or devisees through probate.

GRM is based on monthly gross rent and is used for one- to four-unit residential properties with no other income, while GIM is based on annual gross income and is used for properties with five or more units and commercial properties (e.g., a 12-unit building).

With a purchase money mortgage the buyer receives the deed and legal title at closing and grants the seller a security interest, while under a land contract the seller retains legal title (buyer takes equitable title) until all installment payments are made.

A sublease transfers possession for only part of the remaining lease term with the tenant retaining a reversionary interest; an assignment transfers the entire remaining interest with nothing retained.

A properly classified independent contractor pays his own income and Social Security taxes, while for employees the employer withholds Social Security and income taxes and must also pay unemployment compensation tax on wages.

A deed in lieu does not eliminate junior liens and the lender typically loses FHA, VA, or private mortgage insurance rights, while a formal foreclosure of the senior lien sells the property free of the foreclosing mortgage and extinguishes all junior liens.

Under 18VAC135-20-185 C 1, each dual agency/dual representation disclosure and consent and each brokerage agreement is kept three years from the date of execution, while under C 2 transaction documents run three years from closing, or from ratification if the transaction fails to close.

Absent written agreement of the principals to the contrary, an earnest money deposit must be placed in escrow by the end of the fifth business banking day following ratification, while an application deposit must be placed in escrow by the end of the fifth business banking day following the landlord's approval of the rental application (rent and security deposits run five business banking days after receipt).