Free Vermont Real Estate Practice Exam

Q1.What does the principle of substitution state in real estate appraisal?

• A.A property's value decreases when better properties are available nearby
• B.A rational buyer will not pay more for a property than the cost of acquiring an equally desirable substitute
• C.Properties can be substituted for tax assessment purposes
• D.Appraisers can substitute one valuation method for another

Q2.What is Vermont's transfer tax rate on real estate transactions?

• A.0.5% of the purchase price
• B.1% of the purchase price
• C.1.25% of the purchase price
• D.1.5% of the purchase price

Q3.Which type of depreciation occurs when a property becomes less desirable due to changes in the surrounding neighborhood?

• A.Physical deterioration
• B.Functional obsolescence
• C.External obsolescence
• D.Economic deterioration

Q4.A Vermont buyer's financing contingency expires on Friday, but the buyer's lender needs until the following Monday to provide final loan approval. The buyer wants to waive the contingency to prevent contract termination. What are the legal implications?

• A.Contingency waiver must be in writing and buyer assumes financing risk
• B.Contingency automatically extends over weekends
• C.Seller must agree to extend the contingency
• D.Contract automatically terminates on Friday

Q5.The fiduciary duty of loyalty requires an agent to:

• A.Always agree with the client's decisions
• B.Put the client's interests above the agent's own
• C.Disclose confidential information when beneficial
• D.Represent multiple clients in the same transaction

Q6.Under Vermont's Fair Housing Act, which of the following is a protected class that extends beyond federal fair housing protections?

• A.Age (40 and over)
• B.Sexual orientation
• C.Military status
• D.Marital status

Q7.Under the Fair Housing Act, which action by a real estate agent would constitute illegal steering?

• A.Showing all available properties in the MLS that meet a client's stated criteria
• B.Directing minority clients away from certain neighborhoods to maintain racial composition
• C.Providing demographic information about schools when specifically requested by a client
• D.Offering to show properties in multiple neighborhoods based on price range

Q8.A Vermont broker is audited by the Real Estate Commission and found to have inadequate supervision documentation for their salespersons. Which of the following actions is the Commission most likely to take first?

• A.Immediate license revocation
• B.Criminal prosecution referral
• C.Written warning with requirement for corrective action
• D.Monetary penalty only

Q9.Under the Truth in Lending Act, borrowers have the right to cancel certain transactions within how many business days?

• A.1 business day
• B.2 business days
• C.3 business days
• D.5 business days

Q10.A Vermont broker discovers that an affiliated agent has been operating under an expired license for two months. What immediate action must the broker take to comply with Vermont regulations?

• A.Allow the agent to complete current transactions only
• B.Immediately cease all real estate activities by the agent
• C.Give the agent 30 days to renew their license
• D.Transfer the agent's listings to another licensed agent

Q11.Under Vermont Fair Housing Law, which of the following characteristics is NOT protected from discrimination in housing?

• A.Sexual orientation
• B.Gender identity
• C.Employment status
• D.Marital status

Q12.A Vermont broker has an exclusive right to sell listing that expires on June 30th. On July 15th, the property sells to a buyer who first viewed the property during the listing period. What are the broker's commission rights?

• A.No commission rights after expiration
• B.Full commission if buyer was procured during listing period
• C.Partial commission based on services rendered
• D.Commission only if protection period was included in listing agreement

Q13.A Vermont broker enters into a buyer agency agreement that includes an automatic renewal clause. What must the broker do to comply with state regulations?

• A.Nothing additional is required
• B.Provide 30-day written notice before renewal
• C.Obtain written consent from the buyer before each renewal
• D.Limit the initial term to 3 months

Q14.A property is discovered to have underground storage tanks that leaked petroleum products into the soil. Under CERCLA (Superfund), who would be potentially liable for cleanup costs?

• A.Only the current property owner
• B.Only the party that originally installed the tanks
• C.The current owner, previous owners, and anyone who transported waste to the site
• D.Only the federal government through the Superfund

Q15.In Vermont, when must a licensee provide the Consumer Notice to a prospective buyer or seller?

• A.At the time of listing or showing property
• B.Before any substantive discussion about real estate needs
• C.Within 24 hours of first contact
• D.Only when an agency relationship is established