Free Vermont Real Estate Practice Test (2026) — LicenseIQ

Question 1

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 2

Which loan is insured by the federal government and allows a low down payment?

Accepted Answer

FHA loans are insured by the Federal Housing Administration and permit down payments as low as 3.5%. Conventional loans are not government-backed.

Question 3

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 4

A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

Accepted Answer

Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).

Question 5

A tenant with a disability asks to install grab bars at his own expense. Under Vermont law, the landlord:

Accepted Answer

Section 4503(a)(9) requires owners to permit reasonable modifications at the tenant's expense. The owner may require restoration but may not demand an additional security deposit for it.

Question 6

Under Commission rules, a 'for sale' sign, or multiple signs taken together, may not exceed:

Accepted Answer

Rule 4.12(c) caps for-sale signs at 6 square feet in total, requires that they be on the premises, and bars 'sold' and 'sale pending' signs. The other sizes are not in the rule.

Question 7

For the sale or lease of a pre-1978 residence, the seller or landlord must give the buyer or tenant:

Accepted Answer

Federal law requires the EPA pamphlet, the lead warning statement and disclosure of known lead-based paint and hazards, including for renovated pre-1978 homes.

Question 8

Of the required continuing education hours, how many must be the Commission's mandatory course on legislation and assigned topics?

Accepted Answer

Section 2293 directs that four hours address legislation and other topics the Commission specifies, delivered as the mandatory course (outline 2024–2026). Eight hours is the post-licensure figure, not the mandatory CE core.

Question 9

A contract clause stating that 'time is of the essence' means:

Accepted Answer

'Time is of the essence' makes performance by the stated dates essential; missing a deadline can be a breach.

Question 10

A buyer signs an agreement to use only one firm but keeps the right to buy a property found on her own without owing a fee. This is:

Accepted Answer

Rule 1.8(k) describes the exclusive buyer agency agreement: one firm only, but no fee if the buyer buys on her own. Under the exclusive right to represent buyer agreement, the fee is owed even if the buyer finds the property herself.

Question 11

A borrower facing default voluntarily conveys the property to the lender in exchange for release of the debt. This is a:

Accepted Answer

In a deed in lieu, the borrower voluntarily deeds the property to the lender, which avoids the foreclosure process; the lender must agree, and the borrower should get a written release of any remaining debt. In a short sale, the property is sold to a third party for less than owed with lender approval. Credit-reporting effects vary by lender and situation, so licensees should not promise a borrower any particular credit outcome.

Question 12

An easement that benefits an adjoining parcel of land is called:

Accepted Answer

An easement appurtenant runs with the land and benefits a dominant tenement (the adjoining parcel). An easement in gross benefits a person or company, not land.

Question 13

How much actual notice must a Vermont landlord give before a rent increase takes effect?

Accepted Answer

Section 4455 requires at least 60 days' actual notice, and the increase takes effect on the first day of the next rental period after that notice. 30 days is common elsewhere but wrong in Vermont.

Question 14

A major limitation of an automated valuation model (AVM) is that it:

Accepted Answer

AVMs are fast and inexpensive but assume average condition and struggle with unique homes and thin data.

Question 15

An offer or counteroffer becomes a binding contract when:

Accepted Answer

Acceptance must be unconditional and communicated back to the offeror; any change creates a counteroffer instead.

Question 16

May a Vermont broker serve as principal broker of two separate firms at the same time?

Accepted Answer

Rule 4.1(d) bars a principal broker or broker in charge from serving more than one office or firm at a time, with an exception for §2299 temporary licensees. Geography and firm size are irrelevant.

Question 17

A licensee advertises her own rental house for sale. The ad must:

Accepted Answer

Rule 4.12(b) requires ads for licensee-owned property to disclose the owner's licensee status. Rule 4.5(d) separately requires disclosure of license status and personal interest at first contact.

Question 18

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 19

A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

Accepted Answer

EGI = $240,000 - 8% = $220,800; value = $220,800 x 6 = $1,324,800.

Question 20

On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

Accepted Answer

Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.

Question 21

A legal description reading 'Lot 5, Block 9 of the Lincoln subdivision' uses which method?

Accepted Answer

The lot and block method references a recorded plat map of a subdivision.

Question 22

At the very first contact with a member of the public interested in buying or selling, what must the licensee state?

Accepted Answer

Rule 4.6(a) requires an oral or written statement at first contact that there is no confidentiality unless and until a service agreement is signed. A required commission-rate statement is not part of the rule.

Question 23

A Vermont agent offers to serve as a neutral 'transaction facilitator' for both buyer and seller. Under Commission rules this is:

Accepted Answer

Rules 4.3(d)(3) and 4.4(e)(3) bar offering intermediary, transaction broker, facilitator or other non-fiduciary forms of representation; referrals remain allowed. Disclosure does not cure a prohibited relationship.

Question 24

May a Vermont firm practice designated agency for some clients and non-designated agency for others?

Accepted Answer

Each agency rule forbids practicing the other model (Rule 4.3(d)(2); Rule 4.4(e)(2)), and the firm must disclose its model in its service agreements. Letting clients choose is not an option under the rules.

Question 25

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Vermont real estate practice test

1. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

2. Which loan is insured by the federal government and allows a low down payment?

3. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

4. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

5. A tenant with a disability asks to install grab bars at his own expense. Under Vermont law, the landlord:

6. Under Commission rules, a 'for sale' sign, or multiple signs taken together, may not exceed:

7. For the sale or lease of a pre-1978 residence, the seller or landlord must give the buyer or tenant:

8. Of the required continuing education hours, how many must be the Commission's mandatory course on legislation and assigned topics?

9. A contract clause stating that 'time is of the essence' means:

10. A buyer signs an agreement to use only one firm but keeps the right to buy a property found on her own without owing a fee. This is:

11. A borrower facing default voluntarily conveys the property to the lender in exchange for release of the debt. This is a:

12. An easement that benefits an adjoining parcel of land is called:

13. How much actual notice must a Vermont landlord give before a rent increase takes effect?

14. A major limitation of an automated valuation model (AVM) is that it:

15. An offer or counteroffer becomes a binding contract when:

16. May a Vermont broker serve as principal broker of two separate firms at the same time?

17. A licensee advertises her own rental house for sale. The ad must:

18. A real estate licensee who is not an attorney may:

19. A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

20. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

21. A legal description reading 'Lot 5, Block 9 of the Lincoln subdivision' uses which method?

22. At the very first contact with a member of the public interested in buying or selling, what must the licensee state?

23. A Vermont agent offers to serve as a neutral 'transaction facilitator' for both buyer and seller. Under Commission rules this is:

24. May a Vermont firm practice designated agency for some clients and non-designated agency for others?

25. An agency relationship can be terminated by all of the following EXCEPT:

Sources