Free Virginia Real Estate Practice Test (2026) — LicenseIQ

Question 1

An excavator who cannot describe the exact location of planned digging should, where practical, mark the proposed work area before notifying the center using:

Accepted Answer

Section 56-265.17 directs the excavator to mark the route or boundaries of the excavation site with white paint, where practical, when a specific location cannot be described.

Question 2

How much notice must either party give to terminate a month-to-month tenancy under the VRLTA, absent a different lease provision?

Accepted Answer

Section 55.1-1253 A requires written notice at least 30 days before the next rent due date for month-to-month tenancies; 7 days is for week-to-week.

Question 3

In the cost approach, the appraiser estimates value by:

Accepted Answer

Cost approach: replacement (or reproduction) cost new - depreciation + land value. Land is valued separately because it does not depreciate.

Question 4

Which event terminates a listing agreement by operation (force) of law?

Accepted Answer

Agency ends by performance, expiration, mutual agreement, or situationally by force of law (bankruptcy, condemnation), death or incapacity, destruction of the property, or breach.

Question 5

On an adjustable-rate mortgage, the interest rate after the initial period is determined by:

Accepted Answer

ARM rate = index + margin, subject to periodic and lifetime caps. In a 5/1 ARM the rate is fixed 5 years, then adjusts every year.

Question 6

An owner bought a home for $250,000 and sold it for $310,000. What was the percentage increase in value?

Accepted Answer

Increase = $60,000; $60,000 / $250,000 (the ORIGINAL value) = 0.24 = 24%. Dividing by the sale price gives 19.4% (wrong base).

Question 7

Which federal law requires disclosure of the true cost of credit, including APR?

Accepted Answer

The Truth in Lending Act (Regulation Z) requires disclosure of finance charges and the APR. RESPA covers settlement costs.

Question 8

A court finds that a Virginia salesperson violated the federal Fair Housing Act. With no appeal pending, how does this affect the salesperson's Virginia license?

Accepted Answer

18VAC135-20-260 lists being found by a court or administrative body to have violated Virginia, federal or other fair housing laws, with no appeal pending, as a prohibited act subject to discipline.

Question 9

A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

Accepted Answer

Down payment = $60,000; 1 point = $240,000 x 0.01 = $2,400; total = $60,000 + $2,400 + $450 + $1,800 = $64,650; minus $10,000 earnest money = $54,650.

Question 10

A salesperson active with Firm A wants to help a friend's company, Firm B, with a few listings on weekends. Under Virginia regulations, this is:

Accepted Answer

18VAC135-20-270 makes it a conflict of interest to be active with a broker other than one's principal broker unless the principal broker consents in writing. Licensed work outside one's firm is also a prohibited act under 18VAC135-20-260.

Question 11

A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

Accepted Answer

Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.

Question 12

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 13

In an option to purchase, the seller who grants the option is the ____ and the option holder is the ____.

Accepted Answer

The seller (optionor) gives the option; the buyer (optionee) holds it. Only the optionor is bound during the option period, making it unilateral.

Question 14

Under Virginia law, a dual agency disclosure is NOT valid if it is:

Accepted Answer

Section 54.1-2139 D provides that a disclosure is not valid if unsigned by the client or if it appears in a purchase agreement, lease or other transaction document. It must be a separate signed disclosure given before the dual relationship begins.

Question 15

A buyer notices a fill pipe in the yard of a 1960s home that now uses natural gas heat. The most likely concern is:

Accepted Answer

A fill pipe or vent pipe can signal an underground oil tank; older bare-steel tanks corrode and leak, contaminating soil and groundwater.

Question 16

Which statement about a Virginia firm's escrow account is correct?

Accepted Answer

18VAC135-20-181 requires federally insured accounts in the firm's licensed name, labeled escrow on the account, checks and statements and designated as escrow with the bank. The principal broker must have signatory authority, and failing to have it is a prohibited act.

Question 17

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 18

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 19

Within what period after a judgment becomes final must a claimant file a verified claim with the Recovery Fund?

Accepted Answer

Section 54.1-2114 requires the verified claim to be filed with the Director within 12 months after the judgment becomes final.

Question 20

RESPA primarily governs:

Accepted Answer

RESPA requires disclosure of settlement (closing) costs on 1-4 family residential loans and prohibits kickbacks. Rate advertising falls under TILA.

Question 21

Under the Code of Ethics, a REALTOR may NOT:

Accepted Answer

Article 15 prohibits knowingly or recklessly making false or misleading statements about other real estate professionals.

Question 22

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.

Question 23

Which person may file a claim against the Virginia Real Estate Transaction Recovery Fund?

Accepted Answer

Section 54.1-2114 A bars claims by the licensee, the licensee's spouse or child, lending or financial institutions, and persons in the business of construction or development of real property.

Question 24

Which is a protected class under the Virginia Fair Housing Law but NOT under the federal Fair Housing Act?

Accepted Answer

Section 36-96.3 lists military status among the protected bases, along with elderliness, source of funds, sexual orientation and gender identity, which are Virginia additions. The other choices are federal classes.

Question 25

A settlement agent needs only an update of the financial information on a resale certificate shortly before closing. How quickly must the association provide a financial update after written request?

Accepted Answer

Section 55.1-2311 C requires a financial update within 3 business days after written request. A full updated certificate is due within 10 days.

Virginia real estate practice test

1. An excavator who cannot describe the exact location of planned digging should, where practical, mark the proposed work area before notifying the center using:

2. How much notice must either party give to terminate a month-to-month tenancy under the VRLTA, absent a different lease provision?

3. In the cost approach, the appraiser estimates value by:

4. Which event terminates a listing agreement by operation (force) of law?

5. On an adjustable-rate mortgage, the interest rate after the initial period is determined by:

6. An owner bought a home for $250,000 and sold it for $310,000. What was the percentage increase in value?

7. Which federal law requires disclosure of the true cost of credit, including APR?

8. A court finds that a Virginia salesperson violated the federal Fair Housing Act. With no appeal pending, how does this affect the salesperson's Virginia license?

9. A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

10. A salesperson active with Firm A wants to help a friend's company, Firm B, with a few listings on weekends. Under Virginia regulations, this is:

11. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

12. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

13. In an option to purchase, the seller who grants the option is the and the option holder is the .

14. Under Virginia law, a dual agency disclosure is NOT valid if it is:

15. A buyer notices a fill pipe in the yard of a 1960s home that now uses natural gas heat. The most likely concern is:

16. Which statement about a Virginia firm's escrow account is correct?

17. An owner's title insurance policy protects against:

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

19. Within what period after a judgment becomes final must a claimant file a verified claim with the Recovery Fund?

20. RESPA primarily governs:

21. Under the Code of Ethics, a REALTOR may NOT:

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

23. Which person may file a claim against the Virginia Real Estate Transaction Recovery Fund?

24. Which is a protected class under the Virginia Fair Housing Law but NOT under the federal Fair Housing Act?

25. A settlement agent needs only an update of the financial information on a resale certificate shortly before closing. How quickly must the association provide a financial update after written request?

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