Licensees must still disclose known material adverse facts about the property's physical condition.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which records relating to escrow funds is a Virginia principal broker generally required to maintain?
Answer: B. Virginia brokers must keep complete and accurate records of all funds held for others, including bank statements, deposit and disbursement records, and a periodic reconciliation showing that the escrow balance equals the sum of the amounts held for each transaction. These records must be available for the Board's inspection.
Question 2 of 5
Virginia continuing education for renewal must include a portion of hours dedicated to certain mandatory topics. Which set of subjects is MOST consistent with Virginia's required CE focus areas?
Answer: B. Virginia's required CE concentrates on legally significant practice areas such as ethics/standards of conduct, fair housing, legal updates and emerging trends, real estate agency, and contract/escrow handling. Marketing and software topics may be elective but are not the mandated core.
Question 3 of 5
How must a Virginia broker handle earnest money and other client funds received in a transaction?
Answer: B. Virginia requires that escrow and client funds be held in a separate escrow/trust account and not commingled with the broker's own money.
Question 4 of 5
In Virginia, when a salesperson receives an earnest money deposit in connection with a purchase contract, to whom must the deposit be delivered?
Answer: B. A Virginia salesperson works under and is accountable to the principal broker. Funds belonging to others, such as earnest money deposits, must be turned over to the principal broker, who is responsible for depositing them into the firm's separate escrow/trust account. The salesperson may not hold client funds in a personal account.
Question 5 of 5
Under Virginia rules, a real estate firm's escrow account holding earnest money and other clients' funds must be:
Answer: B. Virginia requires that money held on behalf of others be maintained in a separate escrow or trust account that is distinct from the broker's operating and personal accounts. This separation is the core safeguard against commingling and conversion.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Virginia follows caveat emptor (buyer-beware); sellers are not generally required to disclose property condition.
- Sellers deliver a Residential Property Disclosure Statement directing buyers to exercise due diligence.
- Licensees must still disclose known material adverse facts about the property's physical condition.
- Earnest money and other client funds must be held in a separate escrow/trust account, not commingled.
- Deposits are placed into escrow promptly per Board rules and the terms of the purchase contract.
- Brokers maintain records of escrow deposits and disbursements available for Board inspection.
- Disputed deposits are not released until parties agree, a court orders it, or Board procedures allow it.
Virginia Required Disclosures & Escrow/Trust Timeframes: FAQs
Is Virginia Required Disclosures & Escrow/Trust Timeframes on the real estate exam?
Yes. State License Law is a scored domain on the Virginia real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Virginia test this differently?
Virginia applies its own license law on top of the national portion. This page covers the Virginia rules specifically, which is what the state section of your exam tests.
