PSI Virginia Real Estate Practice Exam

Which two actions would constitute a license exemption in Virginia?

1. Renting property through a real estate agent and managing properties

2. Facilitating an auction and executing power of attorney without compensation

3. Engaging in property sales and operating rental businesses

4. Providing consultations and managing sales directly

The correct answer is: Facilitating an auction and executing power of attorney without compensation

The correct answer is rooted in understanding the specific exemptions that exist within Virginia's real estate licensing laws. In Virginia, certain activities are exempt from requiring a real estate license. The act of facilitating an auction and executing a power of attorney without compensation falls into this category because these activities do not involve typical real estate services that would require licensure. For example, individuals can facilitate an auction without needing a license if they are not representing anyone during those transactions. Similarly, executing a power of attorney typically does not involve any compensation for services rendered, which is another key factor that allows this action to bypass the licensing requirement. This understanding highlights how engagement in certain real estate-related activities without direct compensation can exempt individuals from needing a license, contrasting with options that involve real estate transactions for profit or structured management.