Free Vermont Property Practice Test — LicenseIQ

Question 1

A special warranty deed warrants title only against defects that:

Accepted Answer

Special (limited) warranty deeds protect only against problems created during the grantor's ownership; general warranty deeds cover the entire history.

Question 2

In every Vermont real estate advertisement, which identifier must be the most prominent and largest?

Accepted Answer

Rule 4.12(a) requires the firm's registered name to be the most prominent and largest identifier, larger than the agent's name, phone, team name or web address. Team branding is the common violation.

Question 3

A lender's title insurance policy protects:

Accepted Answer

A lender's (mortgagee's) policy protects the lender's interest up to the loan amount and declines as the loan is paid. An owner's (fee) policy protects the owner.

Question 4

Marketable title means title that is:

Accepted Answer

Marketable title is reasonably free from defects and insurable - not necessarily perfect.

Question 5

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 6

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 7

A licensee wants to buy a property her firm has listed. What must the firm do first?

Accepted Answer

Rules 4.3(f) and 4.4(k) treat this as an automatic conflict that requires termination, an opportunity for outside representation and written disclosure. The seller may continue only as an unrepresented customer with informed written consent. Dual agency consent does not exist in Vermont.

Question 8

A title search is performed primarily to:

Accepted Answer

A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)

Question 9

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 10

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 11

The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

Accepted Answer

The income statement (P&L) summarizes income and expenses for the accounting period, typically monthly.

Question 12

A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

Accepted Answer

A variance grants relief from a specific zoning requirement; a setback deviation is an area variance. A building permit only authorizes construction that complies with the rules.

Question 13

The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Accepted Answer

Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Question 14

Which consequence can follow from practicing real estate brokerage in Vermont without a license?

Accepted Answer

3 V.S.A. §127 provides civil penalties up to $5,000, criminal penalties up to $5,000 and one year, and bars an unlicensed person from bringing proceedings to enforce rights created by the unauthorized practice. A $500 penalty with a collectible fee understates every part of the statute.

Question 15

Which person is excluded from the license requirement when selling real estate?

Accepted Answer

Fiduciaries acting under a court order, deed, trust or will are excluded under §2211(b). The unlicensed assistant who negotiates price is performing broker acts and needs a license.

Question 16

How many members serve on the Vermont Real Estate Commission?

Accepted Answer

Section 2251 creates a seven-member Commission: one attorney, two public members, three brokers and one salesperson. Five is tempting if you forget the attorney and salesperson seats.

Question 17

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 18

Which of the following describes the licensed seats on the Vermont Real Estate Commission?

Accepted Answer

Section 2251 seats three brokers (each with at least four years as a broker, at least one not in a professional association) plus one salesperson, along with one attorney and two public members. The four-broker, five-year option is a different state's model.

Question 19

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 20

Under current law, a homestead declaration identifies the property as the owner's homestead as of what date in the filing year?

Accepted Answer

Section 5410 currently uses April 1 of the filing year; the shift to January 1 does not take effect until 2031. October 15 is the cutoff after which late filings get no refund.

Question 21

In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

Accepted Answer

Seisin = ownership and right to convey. Quiet enjoyment protects against superior title claims; further assurance obligates the grantor to cure defects; warranty forever defends title against all claims.

Question 22

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 23

Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

Accepted Answer

REALTORS must disclose in writing their licensed status and any interest when buying or selling property for themselves or family.

Question 24

Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

Accepted Answer

Survivorship operates outside the will; the deceased's interest goes to the surviving joint tenants.

Question 25

A house and septic system substantially completed in 1995 have had no changes since. Under 10 V.S.A. §1974, the property is:

Accepted Answer

Buildings and systems substantially completed before January 1, 2007 are exempt until a permit-requiring action, such as increased design flow, occurs. Lot size no longer creates exemptions under universal jurisdiction.

Vermont real estate property practice test

1. A special warranty deed warrants title only against defects that:

2. In every Vermont real estate advertisement, which identifier must be the most prominent and largest?

3. A lender's title insurance policy protects:

4. Marketable title means title that is:

5. 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?

6. Under a land contract (contract for deed), during the payment period the buyer holds:

7. A licensee wants to buy a property her firm has listed. What must the firm do first?

8. A title search is performed primarily to:

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

10. 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?

11. The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

12. A property owner who wants to deviate from a zoning requirement (e.g., a setback) would seek a:

13. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

14. Which consequence can follow from practicing real estate brokerage in Vermont without a license?

15. Which person is excluded from the license requirement when selling real estate?

16. How many members serve on the Vermont Real Estate Commission?

17. 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:

18. Which of the following describes the licensed seats on the Vermont Real Estate Commission?

19. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

20. Under current law, a homestead declaration identifies the property as the owner's homestead as of what date in the filing year?

21. In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

22. Under the statute of frauds, a real estate sales contract must be:

23. Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

24. Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

25. A house and septic system substantially completed in 1995 have had no changes since. Under 10 V.S.A. §1974, the property is:

Sources