Free Virginia Property Practice Test — LicenseIQ

Question 1

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 2

When a tenant in common dies, that owner's share:

Accepted Answer

Tenancy in common has NO right of survivorship, so a deceased co-owner's interest passes by will or to heirs. Automatic passage to co-owners describes joint tenancy.

Question 3

What is the maximum one claimant may recover from the Virginia Real Estate Transaction Recovery Fund for a single transaction?

Accepted Answer

Section 54.1-2116 caps each claimant at $20,000 per transaction. $50,000 is the cap for all claimants in one transaction, and $100,000 is the per-licensee cap per biennial period.

Question 4

The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

Accepted Answer

Value requires Demand, Utility, Scarcity and Transferability.

Question 5

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 6

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 7

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 8

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 9

The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

Accepted Answer

Substitution: a buyer will pay no more than the cost of an equally desirable alternative.

Question 10

Under § 55.1-709, when must the seller deliver the required residential property disclosures?

Accepted Answer

Section 55.1-709 A requires delivery before ratification. If delivery comes after ratification, the buyer gets a termination right.

Question 11

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 12

A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

Accepted Answer

Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.

Question 13

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 14

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 15

Which disclosure must a Virginia owner make even when the sale is otherwise exempt from the Residential Property Disclosure Act?

Accepted Answer

Section 55.1-708 requires the meth-lab disclosure notwithstanding the exemptions in § 55.1-702. Roof age, radon and utility history are not mandatory owner disclosures.

Question 16

A quitclaim deed is most often used to:

Accepted Answer

Quitclaim deeds convey whatever interest the grantor may have, without warranties, making them useful for removing clouds or releasing claims.

Question 17

Adverse possession allows someone to acquire title by:

Accepted Answer

Adverse possession requires open, notorious, exclusive, continuous and hostile use for the statutory period. A tenant's possession is permissive, not hostile. (Reclassified to section 1 / CORE.)

Question 18

The Virginia disclosure statement directs buyers to check the local ordinance and map to learn whether a property contains a Resource Protection Area. This relates to which law?

Accepted Answer

Section 55.1-703 lists Resource Protection Areas under the Chesapeake Bay Preservation Act among the matters on which the owner makes no representation and the buyer should do due diligence.

Question 19

A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

Accepted Answer

When no bid meets the lender's minimum, the lender takes title and the property becomes REO inventory.

Question 20

Under the Virginia Residential Property Disclosure Act, the owner of a home for sale must provide the buyer with:

Accepted Answer

Section 55.1-703 requires the owner to furnish the Board's statement in which the owner makes no representations about listed matters and directs the buyer to exercise due diligence.

Question 21

A purchase contract names a title company as escrow agent. The buyer hands the $5,000 deposit check to the buyer's agent. What must the broker do?

Accepted Answer

When the deposit is not held in the firm's escrow account, § 54.1-2108.2 requires delivery to the escrow agent named in the contract within five business banking days after receipt, unless the principals agree otherwise in writing.

Question 22

A property management firm wants to place tenant security deposits in an interest-bearing escrow account. What does the regulation require?

Accepted Answer

18VAC135-20-181 B allows interest-bearing escrow accounts if the contract or lease discloses in writing, when it is written, how the interest will be disbursed.

Question 23

What happens if a Virginia real estate license is not reinstated within one year after it expires?

Accepted Answer

18VAC135-20-140 allows reinstatement for up to one year after expiration. After one year, the license cannot be reinstated under any circumstances, and the person must apply as a new applicant.

Question 24

Which community is governed by the Virginia Property Owners' Association Act rather than another common interest statute?

Accepted Answer

Section 55.1-1800 defines a declaration as a recorded instrument giving the association common-area duties or power to impose mandatory payments, but excludes condominium, cooperative, time-share and campground instruments.

Question 25

A salesperson wants to pay $250 to a neighbor who has never held a real estate license for referring a buyer who later closed. Under Virginia rules this is:

Accepted Answer

18VAC135-20-280 prohibits giving valuable consideration to anyone not licensed in this or any jurisdiction for services that require a license, which includes referral fees. Disclosure or the source of the money does not cure it.

Virginia real estate property practice test

1. Which document is recorded in the county records and makes the property collateral for a loan?

2. When a tenant in common dies, that owner's share:

3. What is the maximum one claimant may recover from the Virginia Real Estate Transaction Recovery Fund for a single transaction?

4. The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

5. 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:

6. 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?

7. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

8. 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?

9. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

10. Under § 55.1-709, when must the seller deliver the required residential property disclosures?

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

12. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

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

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

15. Which disclosure must a Virginia owner make even when the sale is otherwise exempt from the Residential Property Disclosure Act?

16. A quitclaim deed is most often used to:

17. Adverse possession allows someone to acquire title by:

18. The Virginia disclosure statement directs buyers to check the local ordinance and map to learn whether a property contains a Resource Protection Area. This relates to which law?

19. A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

20. Under the Virginia Residential Property Disclosure Act, the owner of a home for sale must provide the buyer with:

21. A purchase contract names a title company as escrow agent. The buyer hands the $5,000 deposit check to the buyer's agent. What must the broker do?

22. A property management firm wants to place tenant security deposits in an interest-bearing escrow account. What does the regulation require?

23. What happens if a Virginia real estate license is not reinstated within one year after it expires?

24. Which community is governed by the Virginia Property Owners' Association Act rather than another common interest statute?

25. A salesperson wants to pay $250 to a neighbor who has never held a real estate license for referring a buyer who later closed. Under Virginia rules this is:

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