VA Salesperson Practice Exam.
Free practice test — 13 verified questions, instant feedback.

Answer: C
A quitclaim deed conveys only whatever interest the grantor may have, with no warranties, and is commonly used exactly for this purpose — clearing clouds on title. Both warranty deed options fail because they would require the ex-spouse to warrant title, and this ex-spouse refuses to make any promises: a general warranty deed warrants against defects arising at any time and a special warranty deed warrants against defects from the grantor's ownership period. The tempting answer is title insurance, but a policy protects against losses from covered defects that were unknown when it issued; this interest is already known, and insurance would not remove it from the record the way a quitclaim release does.

Answer: C
Even a deed that satisfies every formal requirement — competent parties, words of conveyance, an adequate legal description, and the grantor's signature — must also be delivered to and accepted by the grantee to transfer title. Here the deed never left the safe and the nephew never knew of it, so no delivery or acceptance occurred and title did not pass. The tempting wrong answer is the recording choice: recording provides constructive notice and establishes priority against competing claims, but it is not what makes the transfer itself effective, so the absence of recording is not the reason this transfer failed.

Answer: C
Under the income capitalization approach, net operating income divided by the capitalization rate yields the estimated value: 30,000 dollars divided by 0.10 equals 300,000 dollars. Choice A is the tempting error of multiplying NOI by the cap rate instead of dividing. Choice B merely adds 10 percent to the income, and Choice D results from a misplaced decimal when converting the percentage.

Answer: A
With a 360-day banker's year, the daily rate is the annual amount divided by 360: 3,600 dollars divided by 360 is 10 dollars per day. The seller's period of ownership runs from January 1 through April 15, which under 30-day months is 90 days for January through March plus 15 days in April, or 105 days — 105 times 10 dollars is 1,050 dollars. Because the taxes are paid in arrears, the seller credits the buyer for the seller's share, since the buyer will pay the full bill later. Choice B is the tempting reversal of the credit direction, which applies only to prepaid expenses. Choice C comes from using a 365-day calendar year instead of the banker's year the question specifies, and Choice D charges the seller for the buyer's 255 remaining days instead of the seller's own 105.

Answer: B
This buyer is a customer, not a client. Customers are owed honesty, fair dealing, and disclosure of known material defects — a known roof leak qualifies — but not fiduciary duties. Choice A is the tempting trap: loyalty to the seller-client never permits concealing a known material defect from a customer. Choice C overstates the relationship; fiduciary duties belong to clients, and a question alone does not create agency.

Answer: B
A mortgage (or deed of trust in some states) pledges the property as collateral securing repayment of the promissory note. The tempting answer A actually describes the promissory note itself — the note is the promise to pay, while the mortgage is the security instrument. C describes a deed, and D describes mortgage insurance, not the mortgage document.

Answer: A
Private mortgage insurance is generally required on conventional loans when the down payment is less than twenty percent of the purchase price. Here, 30,000 dollars is ten percent of 300,000 dollars, well below the threshold, so PMI should be expected. B and C have it backwards — PMI is specifically a feature of conventional lending. D confuses PMI with FHA insurance: FHA insurance applies to FHA loans, not conventional loans.

Answer: B
Discount points are prepaid interest paid at closing to lower the note rate, and one point equals one percent of the loan amount — not the purchase price. One percent of the 240,000 dollar loan is 2,400 dollars, so two points cost 4,800 dollars. The tempting answer C applies two percent to the 300,000 dollar purchase price, which is the classic trap; A prices only one point, and D is one percent of the purchase price.

Answer: B
LTV is the loan amount divided by the lesser of the appraised value or the purchase price. Because the appraisal of 190,000 dollars is lower than the 200,000 dollar purchase price, the calculation is 152,000 divided by 190,000, which equals 80 percent. Choice A is the tempting error of dividing by the higher purchase price, which understates the lender's true exposure. Choice C compares the appraisal to the price rather than the loan, and Choice D reflects a down-payment percentage, not the LTV.

Answer: C
Any change to the terms of an offer — even a seemingly minor one like the closing date — is a counteroffer that rejects and terminates the original offer. Once terminated, the original offer cannot be accepted later. Choices B and D reflect the common misconception that an offer stays open until it is expressly revoked; here the seller's own counteroffer killed it before any revocation was needed.

Answer: C
OLD CAR stands for Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care and diligence. Compensation is not a fiduciary duty — it is tempting because it starts with C, but the C in OLD CAR is Confidentiality. Obedience and Accounting (choices A and D) are both genuine OLD CAR duties.

Answer: A
VA loans are guaranteed by the Department of Veterans Affairs for eligible veterans, and a conventional loan is one that is not insured or guaranteed by the federal government — exactly matching the two buyers' goals. B is tempting because it mixes the programs' mechanics: FHA loans are insured by the Federal Housing Administration, not guaranteed by the VA. D reverses the definition of a conventional loan, and C wrongly assumes every loan carries federal insurance.

Answer: B
Commission equals the sale price multiplied by the commission rate: 250,000 dollars times 6 percent is 15,000 dollars, which is then split between the listing and selling brokers per their agreement — an equal split leaves 7,500 dollars for the selling broker's side. Choice D is the tempting answer because it is the correct total commission, but it ignores the required split. Choice A splits the amount one time too many, and Choice C applies an incorrect 5 percent rate.