Vermont Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. A Vermont client refuses a disclosure after the licensee explains that it is necessary. What does rule 4.5(b) require of the licensee?

   • ACharge an extra fee to conceal the fact
   • BWithdraw from the agency relationshipcorrect
   • CWait until the buyer closes before considering the issue
   • DFollow the instruction and continue representing the client silently

   Why: The rule requires withdrawal when the informed client refuses necessary disclosure. A client instruction does not authorize the licensee to continue an agency relationship on that concealment basis.

   Property disclosures

2. 2. A court-appointed receiver sells Vermont real estate while carrying out the receivership. Which exemption addresses that capacity?

   • AThe exemption for acting as receiver or under court ordercorrect
   • BAn exemption for every paid real estate referral
   • CAn exemption for any person who buys online advertising
   • DAn exemption for every independent contractor of a brokerage

   Why: 26 VSA 2211(b)(6) exempts specified fiduciary and court-authorized capacities, including a receiver. The exemption depends on the capacity in which the person acts.

   Practice of real estate

3. 3. A Vermont landlord's agent charges a fee simply to apply for a residential dwelling. What does the statute provide?

   • AApplication fees are allowed whenever labeled processing charges.
   • BOnly rejected applicants must pay application fees.
   • CResidential rental application fees are prohibited.correct
   • DEvery applicant must pay a fee equal to one month rent.

   Why: 9 VSA 4456a(a) prohibits a landlord or agent from charging a fee to apply for a residential rental agreement. Renaming that application charge does not change its purpose.

   Property management

4. 4. A Vermont licensee is about to show property to an unrepresented person with whom substantial contact has occurred. Can the mandatory consumer disclosure form wait until after the tour?

   • AYes, every showing automatically waives the form
   • BNo, it must be provided at the first reasonable opportunity and before showingcorrect
   • CNo, because a consumer can never view property without becoming a client
   • DYes, the form is required only after closing

   Why: The form must be provided at the first reasonable opportunity and before showing property or entering a service agreement. Disclosure timing does not itself require the consumer to become a client.

   Agency

5. 5. A Vermont licensee changes name or address. Within what period must notice reach the Commission?

   • AOnly when the next sale closes
   • BOnly after the next biennial renewal
   • CWithin 1 year after the change
   • DWithin 30 days after the change becomes effectivecorrect

   Why: 26 VSA 2294(a) requires notice within 30 days after the change takes effect. The licensee cannot postpone notice until a later transaction or renewal.

   Practice of real estate

6. 6. A Vermont seller omits required flood information. Until what point may the statutory termination remedy be exercised?

   • AOnly after both title transfer and occupancy
   • BAt any time during the next 10 years
   • COnly after the seller files an insurance claim
   • DBefore title transfer or occupancy, whichever occurs earliercorrect

   Why: 27 VSA 380(b) permits termination before title transfer or occupancy, whichever is earlier. Waiting until both events have occurred misses that statutory remedy window.

   Contracts

7. 7. Which Vermont auction activity falls within the express auctioneer exemption?

   • AA sale advertised as a bona fide public auctioncorrect
   • BAny private negotiation labeled an auction afterward
   • CAny private offer collected by an unlicensed team
   • DEvery real estate sale performed by an advertising company

   Why: 26 VSA 2211(b)(3) exempts an auctioneer selling at an advertised bona fide public auction. Merely renaming a private negotiation does not meet those conditions.

   Practice of real estate

8. 8. A Vermont licensee knows the seller's fee-simple conveyance is significantly limited by an outstanding option. When must the limitation be disclosed?

   • AOnly after the buyer records the deed
   • BOnly at the first annual tax assessment
   • COnly if the seller later chooses to discuss it
   • DBefore showing the propertycorrect

   Why: Known significant limitations on the seller's ability to convey fee simple must be disclosed before showing. The rule is not limited to physical defects or post-contract disclosure.

   Property disclosures

9. 9. A Vermont buyer increases an existing earnest-money deposit. When must the additional amount enter the firm's trust account under the augmented-deposit rule?

   • AWithin 5 years after the original offer
   • BOnly when the buyer asks for a bank statement
   • CWithin 5 banking days after receiptcorrect
   • DOnly at closing with the final purchase price

   Why: The augmented-deposit rule uses 5 banking days after receipt of the increase. The existence of an earlier deposited amount does not excuse timely handling of the added money.

   Practice of real estate

10. 10. A Vermont seller offers the broker all sale proceeds above a fixed seller's amount. What does the net-listing rule provide?

    • ANet listings are allowed whenever the seller requests one.
    • BNet listings and their variations are prohibited.correct
    • CNet listings are required when no appraisal exists.
    • DNet listings are allowed if the property sells quickly.

    Why: Rule 4.8(e) prohibits net listings and variations. A seller request does not make that compensation structure permissible.

    Contracts