Virginia Real Estate Salesperson Practice Exam

1. A lender offers a borrower a lower interest rate in exchange for paying two discount points at closing on a 300,000 dollar loan. What will the points cost?

• A. 6,000 dollars
• B. 600 dollars
• C. 3,000 dollars
• D. 60,000 dollars

2. A property sells for 320,000 dollars and the buyer obtains a loan of 272,000 dollars. What is the loan-to-value ratio?

• A. 85 percent
• B. 15 percent
• C. 80 percent
• D. 88 percent

3. A buyer finances a home purchase by signing two documents: a promissory note and a mortgage. What role does the mortgage play in this transaction?

• A. It is the buyer's personal promise to repay the borrowed money.
• B. It pledges the property as security for repayment of the promissory note.
• C. It conveys legal title of the property from the seller to the buyer.
• D. It insures the lender against loss if the buyer defaults.

4. A buyer is purchasing a 300,000 dollar home with a conventional loan and plans to make a 30,000 dollar down payment. What should the salesperson tell the buyer to expect regarding mortgage insurance?

• A. Private mortgage insurance will generally be required, because the down payment is only ten percent of the purchase price — below the twenty percent threshold.
• B. No mortgage insurance is needed, because private mortgage insurance applies only to government-backed loans.
• C. No mortgage insurance is needed, because conventional loans never carry mortgage insurance.
• D. Mortgage insurance is required, but only because the loan will automatically be insured by the Federal Housing Administration.

5. A buyer purchases a home for 300,000 dollars and finances 240,000 dollars of the price. To lower the note rate, the buyer agrees to pay two discount points at closing. How much will the points cost?

• A. 2,400 dollars
• B. 4,800 dollars
• C. 6,000 dollars
• D. 3,000 dollars

6. An eligible veteran wants a home loan backed by a federal guaranty, while a co-worker with no military service wants a loan with no federal backing at all. Which pairing correctly matches each buyer to a loan type?

• A. The veteran: a VA loan, guaranteed by the Department of Veterans Affairs; the co-worker: a conventional loan, which has no government insurance or guaranty.
• B. The veteran: an FHA loan, which is guaranteed by the Department of Veterans Affairs; the co-worker: a VA loan.
• C. Both buyers: FHA loans, because all low-down-payment loans must be federally insured.
• D. The veteran: a conventional loan, because conventional loans are guaranteed by the federal government for veterans.

7. A buyer borrows 250,000 dollars at 6 percent annual interest on an interest-only note. What is the interest portion of the first monthly payment?

• A. 1,250 dollars
• B. 1,500 dollars
• C. 15,000 dollars
• D. 625 dollars

8. A borrower assumes an existing mortgage. The lender releases the original borrower from all liability in writing and substitutes the new borrower. What has occurred?

• A. A novation, which extinguishes the original borrower's liability
• B. An assignment, which leaves the original borrower secondarily liable
• C. A subordination, which changes the lien's priority
• D. A satisfaction, which releases the lien from the property

9. A loan contains a clause allowing the lender to demand the full balance immediately if the borrower sells the property without the lender's consent. What is this clause called?

• A. A due-on-sale or alienation clause
• B. A defeasance clause
• C. A prepayment penalty clause
• D. An escalation clause

10. A borrower makes a down payment of less than 20 percent on a conventional loan. What does the lender typically require, and whom does it protect?

• A. Private mortgage insurance, which protects the lender against borrower default
• B. Private mortgage insurance, which protects the borrower against job loss
• C. A hazard insurance rider, which protects the borrower's equity
• D. A title insurance owner's policy, which protects the lender's lien position

11. Fannie Mae and Freddie Mac purchase closed mortgage loans from originating lenders and package them into securities. Which market are they operating in, and what is the effect on lenders?

• A. The primary market; it lets them lend directly to consumers at lower rates
• B. The primary market; it eliminates the need for underwriting standards
• C. The secondary market; it sets the interest rate every lender must charge
• D. The secondary market; it replenishes lenders' funds so they can originate more loans

12. Under the federal Truth in Lending Act, which figure expresses the total yearly cost of credit including certain fees and points, rather than only the note rate?

• A. The loan-to-value ratio
• B. The nominal interest rate
• C. The annual percentage rate
• D. The debt-to-income ratio

13. A buyer purchases a home for 340,000 dollars and obtains a loan of 272,000 dollars. What is the loan-to-value ratio the lender will use in underwriting?

• A. 80%
• B. 75%
• C. 85%
• D. 90%

14. A lender charges a borrower three discount points to buy down the interest rate on a 220,000 dollar loan. How much will the points cost the borrower at closing?

• A. 2,200 dollars
• B. 6,600 dollars
• C. 22,000 dollars
• D. 660 dollars

15. A buyer obtains a 30-year fixed-rate mortgage. Compared to a payment made in year one, how does the interest portion of a payment made in year twenty typically compare?

• A. The interest portion is exactly the same every month for the life of the loan
• B. The interest portion increases steadily every month
• C. The interest portion is much lower because more of the balance has been paid down
• D. The interest portion is much higher because the loan balance has grown

16. A borrower obtains an adjustable-rate mortgage. The note ties future rate changes to a published index plus a fixed spread set by the lender. What is that fixed spread called?

• A. The discount rate
• B. The cap
• C. The teaser rate
• D. The margin

17. A buyer is comparing an FHA-insured loan to a conventional loan for a modest-income purchase with a low down payment. What is a defining feature of the FHA program?

• A. The loan is insured by a federal agency, which allows more flexible qualifying guidelines
• B. The loan is guaranteed only for buyers with prior military service
• C. The loan requires no insurance or guarantee of any kind
• D. The loan can only be originated directly by the federal government

18. A borrower takes out an interest-only loan of 180,000 dollars at a 5 percent annual rate. What is the interest-only payment due for a single month?

• A. 900 dollars
• B. 750 dollars
• C. 1,500 dollars
• D. 625 dollars

19. A property owner already has a first mortgage on her home and wants to borrow additional money using the same property as collateral without disturbing the first loan. What type of financing does she need?

• A. A wraparound mortgage
• B. A blanket mortgage
• C. A second mortgage
• D. A package mortgage

20. A homebuyer puts down 10 percent on a conventional loan. The lender requires a policy that protects itself if the borrower defaults before enough equity has built up. What is this requirement generally called, and who does it protect?

• A. Title insurance, protecting the buyer's ownership interest
• B. Hazard insurance, protecting the physical structure
• C. A loan guaranty, protecting the borrower against foreclosure
• D. Private mortgage insurance, protecting the lender against loss on a low-down-payment loan

21. A buyer assumes a seller's existing mortgage. The lender requires the buyer to qualify and formally releases the seller from any further liability on the debt in writing. What best describes this transaction?

• A. A qualified assumption with release, so only the buyer remains liable on the note
• B. A purchase subject to the mortgage, so neither party remains personally liable
• C. A novation that extinguishes the original note entirely and creates a new loan
• D. An assumption without release, so both buyer and seller remain liable

22. A seller finances a buyer's purchase by taking a new note for more than the balance owed on her existing mortgage, keeping her original loan in place and collecting the spread between the two rates. What is this financing arrangement called?

• A. A package mortgage
• B. A wraparound mortgage
• C. A blanket mortgage
• D. A bridge loan

23. A lender's advertisement for a loan mentions the amount of a down payment, which is considered a triggering term under federal truth-in-lending advertising rules. What must the ad also disclose as a result?

• A. The name of the loan officer handling the file
• B. The appraised value of every property the lender has financed
• C. Additional credit terms such as the annual percentage rate, along with other required disclosures
• D. Nothing further, since down payment amounts are not a regulated term

24. A title search reveals that a prior owner's ex-spouse may still hold a vague, unresolved interest in a property that is about to be sold. The ex-spouse is willing to sign over whatever interest they might have but refuses to make any promises about the quality of that interest. Which instrument is most appropriate to resolve this cloud on title?

• A. A general warranty deed from the ex-spouse
• B. A special warranty deed from the ex-spouse
• C. A quitclaim deed from the ex-spouse
• D. A new title insurance policy for the buyer

25. An elderly owner signs a properly drafted deed naming her nephew as grantee. The deed identifies the parties, contains words of conveyance and an adequate legal description, and bears her signature. She locks it in her personal safe, planning to hand it over someday, and dies without ever telling the nephew it exists. Did title transfer to the nephew?

• A. Yes, because the deed contained words of conveyance and an adequate legal description
• B. Yes, because the deed was signed by a competent grantor
• C. No, because the deed was never delivered to and accepted by the nephew
• D. No, because the deed was never recorded in the county land records

26. A commercial tenant installs custom display shelving bolted to the walls to run her retail business. The lease is silent about removal. At lease end, may she remove the shelving?

• A. Yes, as trade fixtures, provided she repairs any damage caused by removal
• B. No, because anything bolted to the structure becomes a permanent fixture
• C. Only if the landlord consents in writing before removal
• D. Yes, and she has no obligation to repair damage from removal

27. A homeowner grants a neighbor the right to cross her driveway to reach a landlocked parcel. The right is recorded and runs with both parcels when either is sold. Which interest has been created, and which parcel is the dominant tenement?

• A. An easement appurtenant; the landlocked parcel is the dominant tenement
• B. An easement in gross; the driveway parcel is the dominant tenement
• C. A license; neither parcel is a tenement because the right is revocable
• D. A profit a prendre; the driveway parcel is the dominant tenement

28. Two people take title to a property. The deed states they hold as joint tenants with right of survivorship. One owner dies leaving a will that devises her entire estate to her son. What happens to the deceased owner's interest in the property?

• A. It escheats to the state until the probate court resolves the conflict
• B. It is split equally between the son and the surviving joint tenant
• C. It passes to the son, because a will controls the disposition of all property
• D. It passes to the surviving joint tenant, because survivorship defeats the will

29. A local zoning ordinance requires a 25-foot front setback. A house built lawfully in 1948 sits 12 feet from the front line. The owner now wants to add a rear deck that complies with all current setbacks. How is the existing house best characterized?

• A. A legal nonconforming use that may generally continue as it exists
• B. An illegal use that must be brought into compliance before any permit issues
• C. A variance that automatically expires when the property is improved
• D. A special exception that must be renewed with each building permit

30. A seller conveys property but reserves the right to occupy and use it for the remainder of his life, with title passing to his daughter at his death. What estate does the daughter hold while the seller is alive?

• A. A remainder interest, which is a present ownership interest with future possession
• B. A leasehold estate, because the seller retains possession
• C. No interest at all until the life tenant dies
• D. A reversionary interest, because the property returns to the grantor

31. A homeowners association's recorded declaration prohibits operating any business from a residence. A local zoning ordinance permits home occupations with a permit. An owner obtains the zoning permit and opens a small accounting practice at home. Which restriction controls?

• A. The private deed restriction, because the more restrictive limitation governs
• B. The zoning ordinance, because public law always preempts private agreements
• C. Neither, because the two conflict and cancel each other
• D. The zoning ordinance, because the owner obtained a permit in good faith

32. A tenant's written lease expires. The tenant remains in possession and the landlord continues to accept the monthly rent without signing a new lease. What tenancy has most likely arisen?

• A. A periodic tenancy, renewing month to month
• B. A tenancy at sufferance, which continues indefinitely
• C. An estate for years, automatically renewed for the original term
• D. A tenancy at will, terminable only by the tenant

33. A government agency takes a strip of private land to widen a public road, paying the owner its fair market value over the owner's objection. Which power is being exercised, and what constitutional requirement applies?

• A. Eminent domain, which requires public use and just compensation
• B. Police power, which requires no compensation for any taking
• C. Escheat, which requires the owner to have died intestate
• D. Taxation, which requires only that the levy be uniform

34. A landlocked parcel has no legal access to a public road except by crossing a neighboring lot. No express agreement was ever signed, but the law will still recognize an access right. What is this right called?

• A. An easement by necessity
• B. An easement in gross
• C. A license
• D. An easement by prescription

35. A deed conveys property 'to the county for so long as it is used as a public park, otherwise the estate automatically reverts to the grantor.' What kind of estate has been created?

• A. A fee simple absolute
• B. A life estate
• C. A leasehold estate
• D. A fee simple determinable

36. A homeowner's lot borders a navigable river. Under the law governing water-adjacent land, what right does the owner generally hold regarding the water?

• A. Exclusive ownership of the riverbed regardless of ownership limits set by law
• B. A riparian right to reasonable use of the water, subject to the rights of other riparian owners
• C. No rights at all, since flowing water cannot be subject to private rights
• D. The right to dam the river and prevent all downstream flow

37. A property owner wants to build a small detached garage that does not meet the district's minimum side-yard setback due to an unusually narrow lot. She applies to the zoning board for individualized relief based on this hardship. What is she requesting?

• A. A rezoning
• B. A conditional use permit
• C. A variance
• D. An amendment to the comprehensive plan

38. A commercial use has operated lawfully as a nonconforming use in a now-residential zone for many years. The owner then closes the business and leaves the building vacant for an extended period defined by local ordinance as constituting abandonment. What happens to the nonconforming use status?

• A. It remains permanently protected regardless of how long the use is discontinued
• B. It automatically converts into a conditional use requiring board approval
• C. It transfers to whatever new commercial tenant the owner selects next
• D. It is lost, and any future use of the property must conform to current zoning

39. A buyer purchases a condominium unit. In addition to owning the interior of the unit itself, what else does the buyer typically acquire?

• A. An undivided interest in the common elements shared with other unit owners
• B. Sole ownership of the entire building structure
• C. Shares in a corporation that owns the building
• D. A proprietary leasehold in the entire complex

40. A buyer purchases into a housing cooperative. What does the buyer actually acquire in that transaction?

• A. Fee simple title to a specific unit and a deed to that space
• B. Shares in the corporation that owns the building, plus a proprietary lease to occupy a unit
• C. An undivided fractional deed interest in every unit in the building
• D. A life estate in the building that ends upon the buyer's death

41. A survey performed before a sale reveals that a neighbor's fence sits three feet onto the subject property along the shared boundary. What has occurred, and what should the seller be advised to do?

• A. This is a normal party wall arrangement requiring no action
• B. This is an easement that was validly created by the fence's placement
• C. This is an encroachment that should be resolved, such as through an agreement or removal, before closing
• D. This automatically transfers that strip of land to the neighbor at closing

42. A person has openly farmed a strip of a neighbor's unfenced land for many years, treating it as her own without permission, while the true owner never objected or took action. She now claims ownership of that strip. What must she generally prove to succeed?

• A. That she paid the property taxes on the entire neighboring parcel for one year
• B. That she has a recorded deed describing the strip
• C. That the true owner gave verbal permission to use the land
• D. That her possession was open, continuous, hostile, and exclusive for the statutory period

43. A small office building generates a net operating income of 30,000 dollars per year. An investor evaluating the property applies a capitalization rate of 10 percent. What is the estimated value of the property under the income capitalization approach?

• A. 3,000 dollars
• B. 33,000 dollars
• C. 300,000 dollars
• D. 3,000,000 dollars

44. A property's annual tax bill is 3,600 dollars, payable in arrears at the end of the year. The sale closes on April 15, with the seller responsible for the day of closing. Using a 360-day banker's year with 30-day months, what proration entry appears on the closing statement?

• A. A 1,050 dollar credit to the buyer
• B. A 1,050 dollar credit to the seller
• C. A 1,036 dollar credit to the buyer
• D. A 2,550 dollar credit to the buyer

45. A buyer agrees to purchase a home for 200,000 dollars and applies for a loan of 152,000 dollars. The lender's appraisal comes in at 190,000 dollars. What loan-to-value ratio will the lender use for this loan?

• A. 76 percent
• B. 80 percent
• C. 95 percent
• D. 24 percent

46. A home sells for 250,000 dollars under a listing that provides for a 6 percent commission. Per the brokers' agreement, the total commission is split equally between the listing broker and the selling broker. How much does the selling broker's side receive?

• A. 3,750 dollars
• B. 7,500 dollars
• C. 12,500 dollars
• D. 15,000 dollars

47. An appraiser valuing a single-family home in an established subdivision selects three recently sold nearby homes and adjusts their prices for differences in square footage, garage capacity and lot size. Which approach is being used, and to which element are adjustments made?

• A. The income approach; adjustments are made to the subject's gross rent multiplier
• B. The sales comparison approach; adjustments are made to the comparables, never to the subject
• C. The sales comparison approach; adjustments are made to the subject property
• D. The cost approach; adjustments are made to the subject to match each comparable

48. A comparable sold for 400,000 dollars. It has a two-car garage worth 12,000 dollars more than the subject's one-car garage, and it lacks a finished basement worth 20,000 dollars that the subject has. What is the adjusted sale price of the comparable?

• A. 408,000 dollars
• B. 392,000 dollars
• C. 432,000 dollars
• D. 368,000 dollars

49. A four-unit building generates 4,000 dollars of monthly gross rent and recently sold for 480,000 dollars. Using the gross rent multiplier derived from that sale, what value is indicated for a comparable building renting for 4,500 dollars per month?

• A. 540,000 dollars
• B. 480,000 dollars
• C. 500,000 dollars
• D. 600,000 dollars

50. An older home has an outdated floor plan with a bedroom that can only be reached by walking through another bedroom. Correcting it would cost more than the value it would add. How is this loss in value classified?

• A. Curable functional obsolescence
• B. Curable physical deterioration
• C. Incurable functional obsolescence
• D. Incurable external obsolescence

51. A new landfill opens next to a residential subdivision and home values there drop by roughly eight percent. What type of depreciation does this represent for an appraiser valuing a home in the subdivision?

• A. External obsolescence, which is generally incurable by the owner
• B. Functional obsolescence, curable by renovating the home
• C. Physical deterioration, curable by routine maintenance
• D. Economic appreciation offset, which is not a form of depreciation

52. A licensee prepares a comparative market analysis for a seller and states an appropriate list-price range based on recent sales. How does this differ from an appraisal?

• A. A CMA is a pricing opinion for marketing; an appraisal is an independent opinion of value by a licensed appraiser
• B. A CMA is legally binding on the seller while an appraisal is advisory
• C. There is no difference; the terms are interchangeable in a residential transaction
• D. A CMA may be used to satisfy a lender's valuation requirement for a mortgage

53. In a neighborhood of homes valued between 300,000 and 350,000 dollars, one owner spends 200,000 dollars adding a third story and an indoor pool. The improved home appraises for 390,000 dollars. Which valuation principle explains the shortfall?

• A. Substitution, where a buyer will pay no more than the cost of an equally desirable substitute
• B. Anticipation, where value reflects expected future benefits
• C. Regression, where higher-value properties are pulled down by surrounding lower-value ones
• D. Progression, where lower-value properties are pulled up by surrounding higher-value ones

54. An appraiser values a five-year-old custom home for which there are almost no comparable sales in the area. She estimates the cost to construct a new replica, subtracts accrued depreciation, and adds the estimated land value. Which appraisal approach is she using?

• A. The income capitalization approach
• B. The sales comparison approach
• C. The gross rent multiplier approach
• D. The cost approach

55. An investment property sold for 500,000 dollars and generates a net operating income of 45,000 dollars per year. What capitalization rate is indicated by this sale?

• A. 9%
• B. 10%
• C. 8.5%
• D. 8%

56. An appraiser notes that a home's kitchen has a broken cabinet door and a section of missing baseboard trim that could be repaired at a cost less than the value the repair would add. How would this condition typically be classified?

• A. Functional obsolescence
• B. Curable physical deterioration
• C. External obsolescence
• D. Incurable physical deterioration

57. Two nearly identical homes sit on the same street. One is priced 15,000 dollars higher than the other with no meaningful difference in condition or features. According to a core appraisal principle, what will likely happen to demand for the higher-priced home?

• A. Buyers will substitute the cheaper, equally desirable home, pulling demand away from the pricier one
• B. Demand for the pricier home will increase because higher price signals higher quality
• C. The principle of contribution requires the price gap to be justified by cost alone
• D. The two homes will sell for the same price regardless of the difference

58. A parcel is currently improved with a small single-family home, but zoning and market conditions in the area now strongly favor a multi-story mixed-use building, which would be legally permitted, physically feasible, financially feasible, and maximally productive. What appraisal concept describes identifying that alternative use?

• A. Curable functional obsolescence
• B. Highest and best use
• C. The principle of conformity
• D. Plottage

59. An appraiser is adjusting a comparable sale that has a superior finished basement the subject property lacks. How should this adjustment be applied to the comparable's sale price?

• A. Add the value of the basement to the comparable's price
• B. Make no adjustment, since basements are never adjusted for
• C. Subtract the value of the basement from the comparable's price
• D. Multiply the comparable's price by the percentage the basement represents

60. An apartment building could theoretically collect 240,000 dollars per year if every unit were rented at full market rent with zero vacancy. This theoretical maximum figure is known as what?

• A. Potential gross income
• B. Operating expense total
• C. Net operating income
• D. Effective gross income

61. A buyer purchases a home believing the surrounding area will soon see a new transit station that will raise nearby property values within a few years. Which appraisal principle most directly reflects the influence of this expectation on the buyer's current willingness to pay?

• A. The principle of anticipation
• B. The principle of substitution
• C. The principle of conformity
• D. The principle of regression

62. An appraiser is asked to estimate the most probable price a property would bring in a competitive, open market between a willing buyer and a willing seller, neither under undue pressure, with reasonable market exposure. What is this estimate called?

• A. Assessed value
• B. Investment value
• C. Market value
• D. Insurable value

63. At an open house, a buyer who has signed no representation agreement asks the listing salesperson whether the roof leaks. The salesperson knows the roof has a documented leak. Which statement best describes the salesperson's obligation to this buyer?

• A. The salesperson must disclose the leak only after the buyer signs a representation agreement.
• B. The salesperson owes the buyer the full set of OLD CAR fiduciary duties because the buyer asked a direct question.
• C. None — the salesperson's duties run entirely to the seller, so the leak need not be mentioned.
• D. The salesperson must disclose the known material defect and deal with the buyer honestly, but owes the buyer no fiduciary duties.

64. A buyer submits a written offer on a house. The seller signs it but changes the closing date by one week and returns it. The buyer, unhappy with the new date, walks away. The seller then announces she now accepts the buyer's original offer exactly as written and insists a contract exists. Does one?

• A. Yes — the seller's signature with only a minor date change was an effective acceptance.
• B. Yes — the original offer revived the moment the seller agreed to its exact terms.
• C. No — changing the closing date made the seller's response a counteroffer, which rejected and terminated the original offer, leaving nothing for the seller to accept.
• D. Yes — provided the seller communicated acceptance before the buyer formally revoked the offer in writing.

65. The core fiduciary duties an agent owes a client are commonly summarized by the acronym OLD CAR. Which of the following is NOT one of those duties?

• A. Obedience
• B. Confidentiality
• C. Compensation
• D. Accounting

66. A buyer's written offer states it is open for acceptance until 5:00 p.m. Friday. On Thursday, before the seller responds, the buyer telephones and withdraws the offer. May the buyer do this?

• A. Yes, an offer may generally be revoked any time before the offeror receives notice of acceptance
• B. No, the stated deadline makes the offer irrevocable until 5:00 p.m. Friday
• C. No, an offer may only be revoked in writing signed by both parties
• D. Yes, but only if the buyer forfeits the earnest money deposit

67. A seller signs a listing agreement promising to pay a commission if the property sells during the term, no matter who procures the buyer, including the seller herself. Which listing type is this?

• A. An exclusive right to sell listing
• B. An exclusive agency listing
• C. An open listing
• D. A net listing

68. During a listing presentation a seller asks a salesperson to keep quiet about a chronic basement water problem because it only happens in heavy rain. How should the salesperson respond?

• A. Explain that a known material defect must be disclosed and decline to conceal it
• B. Agree, because the duty of confidentiality to the client outweighs disclosure
• C. Agree, but disclose it only if a buyer specifically asks about water intrusion
• D. Agree, provided the seller signs a statement accepting all liability

69. A brokerage represents both the buyer and the seller in the same transaction, with the written consent of both. One licensee in the firm is assigned to the seller and a different licensee to the buyer, each representing only their own client. What is this arrangement called?

• A. Designated agency
• B. Undisclosed dual agency
• C. Sub-agency
• D. Single agency

70. A buyer and seller sign a purchase contract. Before closing, the seller conveys the property to his brother instead. The buyer sues asking the court to force the sale of that specific property rather than award money. What remedy is the buyer seeking?

• A. Specific performance
• B. Liquidated damages
• C. Rescission
• D. Novation

71. A licensee tells a prospective buyer that the neighborhood is the finest in the county and that the home is a real gem. The buyer purchases and is later disappointed. Are these statements actionable misrepresentation?

• A. No, they are puffing — opinions a reasonable buyer would not rely on as fact
• B. Yes, any positive statement about a property is a warranty of condition
• C. Yes, because a licensee is held to a standard of absolute accuracy in all statements
• D. No, because a buyer waives all claims by completing the purchase

72. A seller accepts a buyer's offer but writes in a higher price and initials the change before signing and returning it. What is the legal effect of the seller's action?

• A. It is a counteroffer, which rejects the original offer and creates a new one
• B. It is an acceptance with a permitted modification, forming a binding contract
• C. It is an option, binding the buyer to hold the price open
• D. It is a valid contract at the buyer's original price, since the buyer offered first

73. A buyer's agent learns that the buyer client is willing to pay 20,000 dollars above the listed price if pressed, but the buyer instructs the agent to offer the list price. What may the agent tell the listing agent?

• A. Only the terms of the offer the client authorized; the client's maximum is confidential
• B. The client's maximum, because material facts must be disclosed to the other side
• C. The client's maximum, but only if the listing agent asks directly
• D. Nothing at all, including the terms of the offer, without a court order

74. A contract for the sale of real property is fully performed by the buyer, but the seller never signed the written agreement. The seller now denies any contract exists. Which doctrine most directly governs enforceability?

• A. The statute of frauds, which requires a signed writing for real property contracts
• B. The parol evidence rule, which bars all oral testimony about contracts
• C. The statute of limitations, which sets the deadline to file suit
• D. The doctrine of laches, which bars claims brought after unreasonable delay

75. A salesperson working under a broker receives a commission check directly from a closing attorney for a transaction she negotiated. What is the correct handling?

• A. The compensation must flow through her broker; a salesperson may not accept it directly
• B. She may keep it and report the amount to her broker at year end
• C. She may keep it if her independent contractor agreement permits it
• D. She must return it to the buyer as an unearned fee

76. An agency relationship between a seller and a listing broker ends when the property sells and closes. Which duty continues after the relationship terminates?

• A. Reasonable care in marketing the property
• B. Confidentiality regarding information learned during the representation
• C. Obedience to the former client's lawful instructions
• D. The duty to account for funds not yet received

77. A purchase contract contains a financing contingency requiring the buyer to obtain a loan at no more than 7 percent. The buyer applies diligently and is denied. What is the usual consequence?

• A. The buyer may terminate and recover the earnest money without breaching
• B. The buyer must close using cash or forfeit the earnest money
• C. The seller may sue for specific performance despite the contingency
• D. The contract automatically converts to a lease with option to purchase

78. A buyer and seller reach a verbal agreement on price and terms for the sale of a house, shake hands, and consider the deal done. Neither ever signs a written document. Is this oral agreement enforceable as a contract for the sale of real estate?

• A. Yes, oral agreements for real property are always fully enforceable
• B. Yes, but only if a court later ratifies it in writing
• C. No, the statute of frauds requires contracts for the sale of real property to be in writing to be enforceable
• D. No, because real estate contracts additionally require notarization to exist at all

79. For a real estate purchase contract to be legally valid, each party must give something of value in exchange for the other party's promise. What contract element does this describe?

• A. Offer and acceptance
• B. Capacity
• C. Consideration
• D. Legality of object

80. A 16-year-old signs a contract to purchase a car. Under general contract law principles, what is the legal status of that contract?

• A. Voidable at the minor's option, since minors generally lack full contractual capacity
• B. Automatically void and of no effect for any party
• C. Fully binding and enforceable exactly as written
• D. Valid only if a parent later ratifies it in person

81. A purchase contract includes a clause making the buyer's obligation to close contingent on a satisfactory professional appraisal supporting the agreed purchase price. What is the purpose of this clause?

• A. To guarantee the seller a minimum sale price regardless of appraised value
• B. To let the buyer exit or renegotiate the contract if the property fails to appraise at the agreed price
• C. To require the buyer to pay whatever the appraiser determines the home is worth
• D. To eliminate the lender's need to review the appraisal at all

82. A purchase contract states that closing must occur on or before June 1 and that time is of the essence. The buyer is not ready to close until June 5 due to a financing delay entirely of his own making. What is the likely consequence?

• A. The closing date is automatically extended by law regardless of the clause
• B. The clause has no legal effect and is routinely ignored by courts
• C. The seller may treat the buyer's failure to close by June 1 as a material breach of the contract
• D. The buyer may unilaterally choose any later date without consequence

83. A buyer under contract to purchase a home decides to transfer her rights and obligations under that contract to a third party before closing, and the contract does not prohibit this. What has the buyer done?

• A. Executed a novation of the contract
• B. Created an easement in favor of the third party
• C. Voided the original contract entirely
• D. Assigned the contract to the third party

84. A deed contains the covenant of quiet enjoyment, the covenant of seisin, the covenant against encumbrances and the covenant of further assurance. Which deed provides this fullest set of protections to the grantee?

• A. A general warranty deed
• B. A special warranty deed
• C. A quitclaim deed
• D. A bargain and sale deed without covenants

85. A property owner dies without a will and without any locatable heirs. What happens to the real property?

• A. It escheats to the state
• B. It passes to the county in fee simple determinable
• C. It becomes public domain open to adverse possession immediately
• D. It transfers to the last recorded mortgage holder

86. A buyer records her deed promptly after closing. What is the primary legal effect of recording?

• A. It gives constructive notice to the world of her interest in the property
• B. It transfers title, which does not pass until the deed is recorded
• C. It guarantees the title is free of all defects and encumbrances
• D. It satisfies the mortgage lien automatically at the time of filing

87. At closing, annual property taxes of 3,600 dollars have already been paid in full by the seller for the calendar year. Closing occurs on July 1 and the buyer owns the day of closing. Using a 360-day year with 30-day months, what is the proration?

• A. No proration is needed because the taxes are already paid
• B. The seller credits the buyer 1,800 dollars
• C. The buyer credits the seller 3,600 dollars
• D. The buyer credits the seller 1,800 dollars

88. A title search reveals an old mortgage that was paid off years ago but never released of record. What is this called, and what is the usual remedy?

• A. A cloud on title, typically cleared by a release or a suit to quiet title
• B. An encroachment, cleared by a boundary survey
• C. A lis pendens, cleared automatically after one year
• D. An appurtenance, which passes with the property and needs no action

89. Under the federal Real Estate Settlement Procedures Act, a title company offers a listing agent a cash payment for each buyer she refers to it for closing services. Is this permissible?

• A. No, unless the buyer signs a waiver acknowledging the arrangement
• B. No, RESPA prohibits kickbacks and unearned fees for the referral of settlement business
• C. Yes, because the agent is licensed and may accept compensation from any source
• D. Yes, provided the referral fee is disclosed on the closing statement

90. A buyer purchases an owner's title insurance policy at closing. Which type of loss does it typically cover?

• A. A forged deed in the chain of title discovered after closing
• B. Fire damage to the dwelling occurring after closing
• C. A decline in the property's market value
• D. The buyer's failure to make mortgage payments

91. The Virginia Real Estate Board is the licensing authority for real estate professionals in the Commonwealth. Within which state agency does the Board sit?

• A. The Department of Taxation
• B. The Department of Housing and Community Development
• C. The State Corporation Commission
• D. The Department of Professional and Occupational Regulation

92. A Virginia broker receives a ratified purchase contract together with the buyer's earnest money check. Absent contrary written instructions in the contract, by when must the funds be placed in the firm's escrow account?

• A. By the end of the fifth business banking day following ratification
• B. Within 24 hours of receiving the check
• C. Within 30 calendar days of ratification
• D. Any time before the scheduled closing date

93. A Virginia salesperson is approaching the end of her second licensing cycle. How long is a Virginia real estate license term, and how much continuing education must she complete for renewal?

• A. A two-year term with 16 hours of continuing education
• B. A one-year term with 8 hours of continuing education
• C. A four-year term with 30 hours of continuing education
• D. A two-year term with 30 hours of continuing education

94. A consumer obtains a court judgment against a Virginia licensee for misconduct in a real estate transaction, but the licensee has no assets and the judgment goes unpaid. What recourse does the Virginia Real Estate Transaction Recovery Fund provide?

• A. It may reimburse the consumer's unsatisfied judgment, and the licensee's license is suspended until the fund is repaid
• B. It pays the licensee's legal defense costs in the underlying lawsuit
• C. It insures brokerages against ordinary errors and omissions in the course of business
• D. It reimburses consumers for any decline in property value after purchase

95. A newly licensed Virginia salesperson wants to know what education is required after licensure but before the first renewal. Which requirement applies?

• A. A 30-hour post-license education course completed within the first year of licensure
• B. A 60-hour pre-license course repeated within the first year
• C. No additional education until the second renewal cycle
• D. A 16-hour continuing education course in place of any post-license requirement

96. Under the Virginia Residential Property Disclosure Act, what is the seller's general obligation regarding the condition of the property?

• A. To provide a warranty that all systems will function for one year after closing
• B. To deliver a disclosure statement notifying the buyer that the property is sold as is and that the buyer should exercise due diligence
• C. To repair every defect identified by the buyer's inspector before closing
• D. To obtain and deliver a professional home inspection report at the seller's expense

97. A Virginia salesperson receives an earnest money deposit from a buyer. What must the salesperson do with the funds?

• A. Deliver them promptly to the supervising broker for deposit into the firm's escrow account
• B. Deposit them into her personal account and issue a receipt to the buyer
• C. Hold them uncashed until the seller accepts the offer, then return them to the buyer
• D. Forward them directly to the seller as evidence of the buyer's good faith

98. A licensee places an advertisement for a listing on a social media page using only her own name and phone number, with no mention of the brokerage. Under Virginia advertising rules, what is the defect?

• A. The advertisement omits the licensed firm name, which every advertisement must disclose
• B. Social media may not be used to advertise listings under any circumstances
• C. Only the broker, never a salesperson, may place any advertisement
• D. There is no defect as long as the seller consented to the advertisement

99. A prospective buyer who uses a wheelchair asks a landlord for permission to install a ramp at the buyer's own expense at the entrance of a rental unit. Under the federal Fair Housing Act, how must the landlord respond?

• A. Permit the reasonable modification at the tenant's expense
• B. Deny it, because structural changes are never required of a landlord
• C. Permit it only if the landlord pays for the ramp
• D. Deny it unless the building has more than four units

100. A licensee tells a prospective buyer with young children that she would be much happier looking in a different neighborhood because it has more families her age. What violation has most likely occurred?

• A. Steering, which is prohibited under fair housing law
• B. Blockbusting, which requires inducing panic selling
• C. Redlining, which is committed by lenders refusing credit
• D. No violation, because the licensee was offering helpful advice