Free Vermont Agency Practice Test — LicenseIQ

Question 1

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 2

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 3

After closing, an agent wants to place a 'SOLD' rider on the yard sign. Under Rule 4.12(c), this is:

Accepted Answer

Rule 4.12(c) does not permit signs stating 'sold,' 'sale pending' or similar. Staying under the size cap does not change that.

Question 4

Even without an agency relationship, Vermont licensees owe customers which duty?

Accepted Answer

The Mandatory Consumer Disclosure lists duties owed to non-clients: disclosing known material facts, dealing honestly, accounting for money and following the law. Confidentiality and advocacy are fiduciary duties reserved for clients.

Question 5

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 6

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 7

Under a cooperation agreement between a listing firm and another firm, the cooperating firm is the agent of:

Accepted Answer

Rule 4.11(b) states that the cooperating firm is the agent of the principal firm, not of the buyer or seller, which is called broker agency. MLS participation agreements count as cooperation agreements (Rule 4.11(e)).

Question 8

A Vermont buyer service agreement from a designated agency firm must:

Accepted Answer

Rule 4.8(c) requires seller and buyer agreements to state the firm's agency model and, if designated, name the designated agents, with client approval of changes. Commission amounts are negotiable and not fixed by rule.

Question 9

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 10

In a designated agency firm, the principal broker is the designated agent for a seller, and another firm licensee is designated for a buyer of that property. What must the firm provide?

Accepted Answer

Rules 4.2(c) and 4.4(c) require a qualified supervising licensee when the principal broker or broker in charge is a designated agent in an in-house transaction, and that supervisor cannot represent either party (Rule 1.8(y)). Dual agency consent is not available in Vermont.

Question 11

Which firms may elect designated agency in Vermont?

Accepted Answer

Rule 4.4(a) allows a firm with more than two licensees to elect designated agency. A one-person office cannot designate separate agents for opposing parties.

Question 12

In a designated agency firm, the seller's designated agent learns the seller will accept $20,000 less than list. Is that knowledge imputed to the buyer's designated agent in the same firm?

Accepted Answer

Rule 4.4(i) provides that information known to a designated agent is not imputed to the firm or other licensees, which is what makes in-house designated agency workable. Automatic imputation is the non-designated model's logic.

Question 13

How does a Vermont consumer become a client of a real estate firm?

Accepted Answer

Rule 4.8(a) requires a written service agreement before brokerage services, and the disclosure form tells consumers that a written agreement is what creates a client relationship. Signing the disclosure only acknowledges receipt.

Question 14

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 15

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.

Question 16

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 17

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 18

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 19

In a Vermont firm practicing non-designated agency, who represents the firm's clients?

Accepted Answer

Under Rule 4.3(b), in non-designated agency all affiliated licensees represent all clients of the firm and owe them fiduciary duties. 'Only the signing licensee' describes designated agency.

Question 20

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 21

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 22

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 23

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 24

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 25

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Vermont real estate agency practice test

1. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

2. A property manager owes fiduciary duties primarily to the:

3. After closing, an agent wants to place a 'SOLD' rider on the yard sign. Under Rule 4.12(c), this is:

4. Even without an agency relationship, Vermont licensees owe customers which duty?

5. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

6. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

7. Under a cooperation agreement between a listing firm and another firm, the cooperating firm is the agent of:

8. A Vermont buyer service agreement from a designated agency firm must:

9. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

10. In a designated agency firm, the principal broker is the designated agent for a seller, and another firm licensee is designated for a buyer of that property. What must the firm provide?

11. Which firms may elect designated agency in Vermont?

12. In a designated agency firm, the seller's designated agent learns the seller will accept $20,000 less than list. Is that knowledge imputed to the buyer's designated agent in the same firm?

13. How does a Vermont consumer become a client of a real estate firm?

14. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

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

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

17. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

18. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

19. In a Vermont firm practicing non-designated agency, who represents the firm's clients?

20. Which fiduciary duty continues even after the agency relationship has ended?

21. A material defect that a seller/agent must disclose is one that:

22. Which statement about dual agency is correct?

23. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

24. Which of the following is a fiduciary duty an agent owes the principal?

25. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

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