# VA REAL ESTATE SALESPERSON CRAM SHEET

**120 questions: 80 national + 40 VA-specific · 75% to PASS each portion**
**PSI exam · ~225 minutes total**

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## AGENCY & FIDUCIARY DUTIES

1. **OLDCAR (acronym):** Obedience, Loyalty, Disclosure (of material facts to PRINCIPAL), Confidentiality, Accountability, Reasonable care
2. **Duties to CUSTOMER (non-client):** Honesty, fair dealing, disclosure of MATERIAL facts about property
3. **Duties to CLIENT (principal):** Full fiduciary OLDCAR
4. **Dual agency / designated agency:** Requires WRITTEN consent from both parties (VA Code §54.1-2139)
5. **Subagency:** Salesperson works for another broker who works for the seller; subagent owes seller duties
6. **Buyer's agent:** Owes fiduciary duties to BUYER

## VA REB REGULATIONS

7. **Salesperson MUST be supervised** by a Principal/Managing Broker (VA Code §54.1-2106; 18VAC135-20-160)
8. **Earnest money escrow:** Place by END of 5th BUSINESS BANKING DAY after ratification (18VAC135-20-180)
9. **Disputed earnest money:** Hold in escrow until written authorization from BOTH parties OR court order
10. **Continuing education:** 16 HOURS / 2 YEARS for active salesperson (18VAC135-20-101)
11. **First-time post-licensing:** 30 hours within first year of licensure
12. **License renewal:** Active vs. inactive status options

## FAIR HOUSING

13. **Federal protected classes (7):** Race, Color, Religion, Sex (incl. sexual orientation/gender identity per HUD 2021), National origin, Familial status, Disability
14. **VA Fair Housing adds:** Marital status, Age, Source of funds, Elderliness (varies)
15. **MARITAL STATUS:** Federal NO; Virginia + ECOA YES
16. **Steering, blockbusting, redlining:** All PROHIBITED
17. **Advertising:** must NOT show preference, limitation, or discrimination
18. **Reasonable accommodations:** required for individuals with disabilities

## CONTRACTS

19. **Statute of Frauds:** real estate contracts must be IN WRITING + signed
20. **Mutual assent:** offer + acceptance + meeting of minds
21. **Earnest money:** consideration showing buyer's commitment, not required for contract validity
22. **Specific performance:** court orders contract carried out (RE is unique)
23. **Liquidated damages:** pre-agreed amount for breach (typical: earnest money forfeit)
24. **Time is of the essence:** strict compliance with deadlines required
25. **Contingencies:** financing, inspection, appraisal — buyer's outs

## DISCLOSURES (VA + Federal)

26. **VA Residential Property Disclosure (§55.1-708):** Sellers disclose KNOWN material adverse facts
27. **Lead-based paint:** Federal disclosure for pre-1978 homes
28. **Radon, asbestos, mold:** state-specific
29. **Megan's Law:** sex offender registry — buyer can check independently
30. **Stigmatized property:** death, suicide, paranormal — generally NOT required disclosure (with exceptions)

## TITLE & DEEDS

31. **General warranty deed:** MAXIMUM protection (warrants ALL claims, even pre-grantor)
32. **Special warranty deed:** Warrants only grantor's time
33. **Quitclaim deed:** NO warranty (just transfers whatever interest, if any)
34. **Bargain and sale deed:** Some warranties (varies by state)
35. **Deed requirements:** Grantor + grantee, granting clause, legal description, consideration recital, grantor signature, acknowledgment
36. **Recording:** gives constructive notice to the world

## ESTATES IN LAND

37. **Fee simple absolute:** Highest form, perpetual, no conditions
38. **Fee simple defeasible:** Subject to conditions (determinable, condition subsequent)
39. **Life estate:** Measured by life of holder (or "pur autre vie" — another's life)
40. **Estate for years:** Lease for fixed term
41. **Periodic tenancy:** Renews automatically (month-to-month)
42. **Tenancy at will / sufferance:** Less protection

## OWNERSHIP TYPES (VA)

43. **Tenancy in common:** Default for unmarried co-owners; no survivorship
44. **Joint tenancy with right of survivorship:** Requires explicit language; survivor gets all
45. **Tenancy by the entirety:** Married couples only (VA recognized); creditor protection
46. **VA homestead exemption:** Statutory (§34-4); amounts vary (current ~$25-35K depending on category)

## EASEMENTS

47. **Easement appurtenant:** Runs with the land (dominant + servient tenement)
48. **Easement in gross:** Personal (utility companies)
49. **Express:** Created by deed
50. **Implied:** From prior use or necessity
51. **Prescriptive:** Adverse use for statutory period (VA: 15 years)
52. **License:** Permission, REVOCABLE (NOT an interest in land)

## FINANCING

53. **Conventional loan:** No government backing; 5-20% typical down
54. **FHA loan:** Government insured; lower down (3.5%); MIP required
55. **VA loan:** Veterans only; 0% down possible; funding fee
56. **Conforming vs. non-conforming:** Fannie/Freddie limits
57. **PMI:** Required when LTV > 80% on conventional
58. **Mortgage vs. deed of trust:** VA uses deeds of trust (3-party: borrower + trustee + lender)
59. **Foreclosure:** VA primarily NON-judicial via trustee's sale
60. **Acceleration clause:** Default → entire balance due
61. **Due-on-sale (alienation):** Sale/transfer → entire balance due
62. **Subordination clause:** Allows new loan to take priority
63. **Defeasance:** Loan paid → discharge of mortgage

## VALUATION

64. **GRM (Gross Rent Multiplier):** Sale Price ÷ Annual Gross Income
65. **Cap Rate:** NOI ÷ Property Value
66. **NOI:** Effective Gross Income − Operating Expenses (excl. debt service)
67. **Comparative Market Analysis (CMA):** Comparable sales-based pricing
68. **Appraisal approaches:** Sales Comparison, Cost, Income
69. **Highest and best use:** legally permissible + financially feasible + maximally productive

## SETTLEMENT / RESPA

70. **RESPA Section 8:** Prohibits kickbacks for settlement service referrals
71. **Closing Disclosure:** 3 business days before consummation
72. **Loan Estimate (LE):** within 3 business days of application
73. **TILA (Reg Z) right of rescission:** 3 BUSINESS DAYS for refinances/HELOCs of primary residence; PURCHASE LOANS EXCLUDED
74. **Affiliated business disclosure:** Required when steering to affiliates

## VA-SPECIFIC ITEMS

75. **VA REB jurisdiction:** §54.1-2105 + Title 18 Admin Code Ch 135-20
76. **Brokerage relationship disclosure:** Required at first substantive discussion (§54.1-2138)
77. **VA recovery fund:** consumer protection assessment per license
78. **Property management licensure:** separate considerations under VA REB
79. **Settlement agents:** governed under VA Real Estate Settlement Agent Act (CRESPA)
80. **Title insurance:** owner's vs. lender's; one-time premium

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## TEST-DAY PROTOCOL

- **National portion:** ~150 min for 80 Q (~110 sec each); 75% to pass
- **VA portion:** ~75 min for 40 Q (~110 sec each); 75% separately required
- **Calculator:** allowed (NOT graphing); know GRM + cap rate + commission math by heart
- **Strategy:** Answer the easy questions first; flag hard ones; return at end
- **For agency questions:** Identify WHO the agent represents (seller/buyer/dual). The fiduciary duty answer almost always follows from this.
- **For math questions:** Set up the equation BEFORE calculating. Common: commission %, net proceeds, GRM, cap rate, prorations, mortgage qualifying ratios

## COMMON GOTCHAS

- "**MARITAL STATUS**" — FEDERAL NO, VA YES, ECOA YES (for credit decisions). Test will trick you.
- "**License vs. Easement**" — license = revocable permission; easement = property interest
- "**General vs. Special vs. Quitclaim deed**" — protection levels DIFFERENT
- "**Cap rate vs. GRM**" — cap uses NOI, GRM uses GROSS rent
- "**Recission**" applies to REFINANCE/HELOC, NOT purchase loans
- **VA salespersons CANNOT operate independently** — must be under Principal Broker
- **Earnest money escrow timeline (5th business banking day)** is VA-specific — federal default is "promptly"

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## VETTED:

Content cross-referenced against:
- VA Code Title 54.1 Chapter 21 (https://law.lis.virginia.gov/vacode/title54.1/chapter21/)
- VA Admin Code 18VAC135-20 (https://law.lis.virginia.gov/admincode/title18/agency135/chapter20/)
- VA Property Disclosure §55.1-708 (https://law.lis.virginia.gov)
- Federal Fair Housing Act 42 USC §3601 et seq. (HUD)
- RESPA 12 USC §2601 / Reg X 12 CFR 1024 (CFPB)
- TILA / Reg Z 12 CFR 1026 (CFPB)

**Note:** Pull current VA REB Candidate Handbook from https://candidate.psiexams.com/ for exact content outline weights. Acquire a current edition of "Modern Real Estate Practice" (Galaty/Allaway/Kyle) for full national content. State-specific Virginia textbook (Dearborn or Kaplan) covers the 40-question state portion.