Free Vermont State Law Practice Test — LicenseIQ

Question 1

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

Question 2

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 3

A Vermont licensee changes her email address. Within how many days must she report the change?

Accepted Answer

Both 3 V.S.A. §129a(a)(14) and Rule 3.4 set 30 days for reporting changes of name, address or email. Ten days is the deadline for notifying the Commission of a new trust account, a different rule.

Question 4

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Question 5

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 6

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 7

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 8

Which statement about Vermont's smoke and CO alarm transfer statute is correct?

Accepted Answer

Section 2883 states that a violation does not create a title defect. The chapter's definition excludes condominiums and multiple-unit dwellings, and §2882 imposes no ongoing maintenance duty.

Question 9

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 10

Under 26 V.S.A. §2211(b), which person may receive compensation for the activity described without a Vermont real estate license?

Accepted Answer

Vermont's definition excludes persons who lease real estate or advertise leases, so leasing alone is not brokerage under chapter 41. Repeatedly listing and selling others' property for pay is a continuing course of conduct that requires a license.

Question 11

Under Rule 4.5(a), a licensee working for a seller must disclose known material facts to prospective buyers:

Accepted Answer

Rule 4.5(a) requires prompt, full disclosure of known material facts to prospective buyers, and the duty lasts until closing or cancellation. The seller's permission is not a condition; Rule 4.5(b) requires withdrawal if the seller refuses.

Question 12

What is the maximum administrative penalty per violation that may accompany discipline of a Vermont licensee for unprofessional conduct?

Accepted Answer

3 V.S.A. §129a(d)(1) authorizes an administrative penalty of up to $5,000 per violation. $10,000 is the criminal fine cap under the fair housing chapter, a different statute.

Question 13

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 14

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 15

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 16

A salesperson's license expired three years ago without inactive status being requested. Under the Commission rules, the license may be reinstated if the person:

Accepted Answer

Rule 3.2(a) allows reinstatement of an expired license within five years on payment of the renewal fee and late penalty with proof of education from the prior 24 months. Retesting is not required inside that five-year window.

Question 17

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 18

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 19

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 20

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 21

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 22

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 23

A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Accepted Answer

Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

Question 24

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 25

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Vermont real estate state law practice test

1. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

2. 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?

3. A Vermont licensee changes her email address. Within how many days must she report the change?

4. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

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

6. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

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

8. Which statement about Vermont's smoke and CO alarm transfer statute is correct?

9. When an owner dies with no will and no heirs, the property passes to the state through:

10. Under 26 V.S.A. §2211(b), which person may receive compensation for the activity described without a Vermont real estate license?

11. Under Rule 4.5(a), a licensee working for a seller must disclose known material facts to prospective buyers:

12. What is the maximum administrative penalty per violation that may accompany discipline of a Vermont licensee for unprofessional conduct?

13. Which action may a life tenant take WITHOUT the remainderman's consent?

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

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

16. A salesperson's license expired three years ago without inactive status being requested. Under the Commission rules, the license may be reinstated if the person:

17. 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:

18. A home sells for $400,000 with a 5% total commission. What is the total commission?

19. In a life estate, the person who receives the property when the life tenant dies is the:

20. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

21. A licensee may manage property for an owner for a fee only if there is:

22. Which is the most common and desirable way a real estate sales contract terminates?

23. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

24. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

25. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Sources