PSI Virginia Real Estate Practice Exam

What authority does the Virginia Real Estate Board have concerning real estate documentation?

1. To grant exclusive sales licenses

2. To inspect and audit all required real estate documentation

3. To settle disputes between buyers and sellers

4. To create new real estate laws

The correct answer is: To inspect and audit all required real estate documentation

The authority of the Virginia Real Estate Board to inspect and audit all required real estate documentation is rooted in its role as a regulatory body that oversees the practice of real estate within the state. This function is crucial for ensuring compliance with state laws and regulations, as it helps maintain ethical standards and protect consumers in real estate transactions. By auditing documentation, the Board can ensure that real estate agents and brokers are adhering to the legal requirements for licensing, disclosure, and transaction processes, thereby promoting transparency and accountability in the real estate market. Other options, such as granting exclusive sales licenses or settling disputes between buyers and sellers, do not accurately reflect the primary functions of the Virginia Real Estate Board. While the Board does manage licensing, its focus is not on granting exclusive rights, and it does not have the authority to act as a mediator in disputes. Similarly, the creation of new real estate laws is typically the responsibility of the legislative body rather than a regulatory board. Thus, inspecting and auditing documentation is a clear and distinct responsibility of the Virginia Real Estate Board, making it the correct choice.