Free Vermont Real Estate Practice Exam

Q1.Under RESPA, which of the following closing costs may a lender require a borrower to pay in advance?

• A.Loan origination fee
• B.Real estate broker's commission
• C.Seller's attorney fees
• D.Home inspection fee paid to the seller's inspector

Q2.Under CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), what obligation does a state real estate licensing board have regarding environmental disclosure requirements?

• A.Mandate that all licensees become certified environmental assessors
• B.Establish continuing education requirements about environmental hazard disclosure obligations
• C.Require licensees to conduct soil contamination tests on all properties
• D.Directly enforce CERCLA cleanup requirements against property owners

Q3.Under federal fair housing law, which enforcement action can a state real estate licensing board take against a licensee who violates the Fair Housing Act?

• A.Impose criminal penalties including imprisonment
• B.Suspend or revoke the licensee's real estate license
• C.Order monetary damages to be paid to the complainant
• D.Issue federal civil rights injunctions

Q4.A managing broker is reviewing brokerage advertising and notices that all marketing materials for higher-priced listings feature images of people from one racial group exclusively, while lower-priced listings consistently feature images of people from a different racial group. Under the Fair Housing Act, this practice is BEST described as:

• A.Discriminatory advertising that violates 42 U.S.C. § 3604(c) because it expresses a racial preference or limitation and could indicate neighborhoods are racially exclusive.
• B.Permissible target marketing because brokers are allowed to tailor advertising to the most likely buyer demographic for each price point.
• C.A RESPA violation because it involves the improper use of settlement service provider referrals in advertising.
• D.Acceptable provided the brokerage includes an Equal Housing Opportunity logo on the advertisements.

Q5.Under the federal Fair Housing Act, which of the following classes is NOT among the seven originally protected classes as amended through the 1988 Fair Housing Amendments Act?

• A.Sexual orientation
• B.Familial status
• C.Handicap (disability)
• D.National origin

Q6.In an all-cash transaction, what is the most important verification the seller should require from the buyer?

• A.Confirmation that no financing is involved, in a signed addendum
• B.Verifiable proof of funds — such as a bank or investment account statement — by a specified deadline
• C.An independent appraisal, since cash buyers must still meet value requirements
• D.Only the earnest money amount — no other verification is needed in cash transactions

Q7.A broker operating as a disclosed dual agent in a residential transaction receives two competing offers for the seller's property on the same day — one from the broker's own buyer client and one from a buyer represented by an outside cooperating agent. The seller asks the broker which offer to accept. What is the broker's MOST appropriate response consistent with dual agency obligations?

• A.Present the material terms of both offers objectively to the seller without advocating for either buyer, and allow the seller to make an independent decision, since the broker's duty of loyalty to the buyer client is limited under the dual agency consent agreement.
• B.Advocate strongly for the broker's own buyer client's offer because that client is also paying a portion of the commission, creating a higher duty of loyalty.
• C.Withdraw both offers and require the seller to re-list the property so that no conflict of interest exists at the time offers are submitted.
• D.Recommend the outside buyer's offer to demonstrate impartiality and avoid any appearance of favoring the in-house buyer.

Q8.A Vermont salesperson disagrees with a final disciplinary order issued by the Real Estate Commission under 26 V.S.A. Chapter 41. What is the proper avenue for challenging that order?

• A.The salesperson must re-apply for a new license as if the prior license never existed; there is no appeal mechanism
• B.The salesperson may appeal the Commission's final order to the Vermont Superior Court under the Vermont Rules of Appellate Procedure for administrative decisions
• C.The salesperson may appeal only to the Director of OPR, whose decision is then final with no further judicial review available
• D.The salesperson must petition the Vermont Legislature to overturn the Commission's order

Q9.What type of estate does a tenant have under a standard residential lease agreement?

• A.Freehold estate
• B.Leasehold estate
• C.Fee simple estate
• D.Life estate

Q10.A broker's firm represents both the seller and the buyer in the same transaction under a disclosed dual agency arrangement. The buyer's affiliated salesperson discovers a latent structural defect that the seller's affiliated salesperson is unaware of. Under the broker's duties as a disclosed dual agent, what is the MOST appropriate course of action?

• A.Disclose the defect to the seller's salesperson and ultimately to the seller, because material facts affecting the property must be disclosed to all parties regardless of the dual agency relationship.
• B.Keep the information confidential from the seller because disclosing it would breach the fiduciary duty owed to the buyer client.
• C.Withdraw from representing the buyer immediately and continue representing only the seller to avoid any conflict.
• D.Disclose the defect only to the buyer's lender so that proper underwriting can occur without disrupting the transaction.

Q11.Which of the following best describes a requirement that must be met before Vermont will issue a real estate broker license to an applicant who currently holds a salesperson license, under 26 V.S.A. Chapter 41?

• A.The applicant must simply pass a broker examination with no prior experience requirement
• B.The applicant must accumulate a required period of active experience as a licensed salesperson before qualifying for a broker license
• C.The applicant needs only to submit a broker license application fee; no additional examination is required
• D.Vermont does not distinguish between salesperson and broker qualifications, so no additional steps are needed

Q12.Under 26 V.S.A. Chapter 41, who within the Office of Professional Regulation has the authority to investigate complaints against Vermont real estate licensees?

• A.The Governor's office, acting on behalf of the public
• B.The OPR Investigations Unit, under the direction of the Director of OPR
• C.The Vermont Attorney General's office exclusively
• D.The National Association of REALTORS® ethics panel

Q13.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

Q14.Which of the following sanctions may the Vermont Real Estate Commission impose on a licensee found guilty of a disciplinary violation under 26 V.S.A. Chapter 41?

• A.Criminal imprisonment of up to one year
• B.Revocation or suspension of the real estate license
• C.Seizure of the licensee's personal property
• D.Permanent ban from residing in Vermont

Q15.Which federal environmental law created the Superfund program to clean up contaminated sites?

• A.Clean Air Act
• B.Clean Water Act
• C.Safe Drinking Water Act
• D.CERCLA