Free Vermont Real Estate Practice Exam

Q1.A property owner grants a life estate to their nephew, with the remainder interest going to their daughter. What is the daughter's interest called?

• A.Remainder interest
• B.Reversionary interest
• C.Life estate pur autre vie
• D.Fee simple determinable

Q2.When must a covered agreement be reviewed under A.R.S. § 32-2151.01(G)?

• A.Before any party signs.
• B.Within 24 hours.
• C.Within 10 business days after execution.
• D.Only at closing.

Q3.A broker managing a residential rental portfolio in Vermont receives instructions from a property owner to avoid showing a vacant unit to applicants with school-age children because the owner believes families 'cause more wear and tear.' The broker's affiliated salesperson asks how to handle prospective tenant inquiries. As the supervising broker, what is the MOST legally and ethically appropriate response?

• A.Refuse the owner's instructions, explain that steering applicants away from families with children violates the Fair Housing Act's prohibition on familial status discrimination, and require the salesperson to show the unit to all qualified applicants regardless of family composition.
• B.Follow the owner's instructions because a property owner has the contractual right to set tenant selection criteria, and the broker's duty of loyalty to the client supersedes general fair housing principles in a private rental arrangement.
• C.Advise the salesperson to show the unit only to applicants who disclose they have no children, since this avoids discriminatory intent and limits the broker's direct liability under the Fair Housing Act.
• D.Permit the restriction only if the property qualifies as housing for older persons under the Housing for Older Persons Act (HOPA), deferring the investigation of that qualification to the salesperson.

Q4.Under RESPA, which of the following transactions is EXEMPT from its disclosure and anti-kickback requirements?

• A.A conventional loan used to purchase a single-family home
• B.An FHA-insured loan for a condominium unit
• C.A seller-financed transaction where no institutional lender is involved
• D.A VA-guaranteed loan for a primary residence

Q5.A Vermont salesperson's supervising broker terminates the salesperson's employment. Under 26 V.S.A. Chapter 41, what happens to the salesperson's license upon termination from the broker?

• A.The license automatically transfers to the next broker the salesperson chooses to work with
• B.The license is immediately and permanently revoked by the Vermont Real Estate Commission
• C.The license becomes inactive and the salesperson may not perform licensed activities until affiliated with a new supervising broker
• D.The salesperson may continue to perform licensed activities independently for up to 30 days

Q6.A Vermont real estate salesperson receives an earnest money deposit from a buyer. Under 26 V.S.A. Chapter 41 and Vermont Real Estate Commission rules, where must this deposit be held?

• A.In the salesperson's personal checking account until closing
• B.In the supervising broker's escrow or trust account
• C.In a joint account shared between the salesperson and the seller
• D.In any FDIC-insured account chosen by the salesperson

Q7.Under the Vermont Fair Housing and Public Accommodations Act, which of the following protected classes is recognized by Vermont law but is NOT listed as a protected class under the federal Fair Housing Act?

• A.Race
• B.Sexual orientation
• C.National origin
• D.Familial status

Q8.A broker receives a complaint that one of their salespersons told a Hispanic couple that a particular subdivision 'might not be a comfortable fit' for them and then directed them exclusively to listings in another part of town. This conduct is MOST accurately characterized under the Fair Housing Act as:

• A.Steering based on national origin, which is unlawful under 42 U.S.C. § 3604(a) and exposes both the salesperson and the supervising broker to liability.
• B.Lawful geographic specialization, because salespersons may recommend areas based on their professional knowledge of the market.
• C.A violation of RESPA's affiliated business arrangement disclosure rules, because the salesperson directed business to a specific area.
• D.Blockbusting, because the salesperson implied that the neighborhood's demographics would change to the couple's detriment.

Q9.Under 26 V.S.A. Chapter 41, which of the following individuals is EXEMPT from obtaining a Vermont real estate salesperson license when performing real estate activities?

• A.A property manager who negotiates residential leases on behalf of multiple unrelated owners for a fee
• B.An attorney-at-law who performs real estate services as part of practicing law
• C.A part-time assistant who lists properties on the MLS under the supervision of a licensed broker
• D.A salaried employee of a real estate company who shows properties to prospective buyers

Q10.The primary difference between quid pro quo harassment and hostile environment harassment in a housing context is:

• A.Quid pro quo conditions housing on submission to sexual demands; hostile environment creates an abusive living condition through pervasive conduct
• B.Quid pro quo involves a monetary demand; hostile environment involves physical contact only
• C.Hostile environment claims require a criminal conviction; quid pro quo does not
• D.Only quid pro quo harassment is covered by the Fair Housing Act — hostile environment is not

Q11.The safety clause in a listing agreement protects the broker's commission for a period after expiration. What must the broker typically have done to invoke it?

• A.Introduced or shown the property to the buyer who ultimately purchases it after the listing expired
• B.Submitted the listing to MLS within the required timeframe
• C.Obtained a written backup offer from another buyer
• D.Reduced the commission rate at the seller's request

Q12.A purchase contract includes an earnest money deposit of $5,000 that is designated as liquidated damages in the event of buyer default. If the buyer defaults, what is the seller's most appropriate remedy under this clause?

• A.Sue the buyer for the full purchase price of the property
• B.Retain the $5,000 earnest money as full compensation for the breach
• C.Demand specific performance to force the buyer to complete the purchase
• D.Rescind the contract and return the earnest money to the buyer

Q13.Under R4-28-1103, which statement about delegation is accurate?

• A.Delegation transfers the designated broker's responsibility to the employee
• B.A written supervision system and monitoring remain necessary
• C.Only trust-account tasks require supervision
• D.Small offices are categorically exempt from supervision duties

Q14.A rectangular lot measures 150 feet wide by 200 feet deep. What is the total square footage of the lot?

• A.$30,000 sq ft
• B.700 sq ft
• C.30,000 sq ft
• D.35,000 sq ft

Q15.Which type of deed provides the LEAST protection to the grantee?

• A.General warranty deed
• B.Special warranty deed
• C.Bargain and sale deed
• D.Quitclaim deed