VERMONT REAL ESTATE CE SHOP
COURSE FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS
Danica is purchasing a $1,000,000 property. She made an earnest money deposit of
$100,000, is financing $750,000, and making a $250,000 down payment. She has
$40,000 in closing costs. How much does Danica need to bring to closing? - Answer-
250,000+40,000= 290,000
290,000-100,000= 190,000
So, it will be 190,000
The power of the state to claim property when the owner dies without a will and without
locatable heirs or creditors is also known as ______. - Answer-Escheat
Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of
Harriet's listing. The property sold for $425,000. The total commission paid from the sale
is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement
with his broker that he earns 80% of the commission received. How much will Benji be
paid from this sale? - Answer-425,000*.06=25,500
25,500*0.80=20,400
20,400/2= 10,200
So, Benji will be paid 10,200.
A seller you're working with still owes $50,000 on his mortgage but wants to net $20,000
after the mortgage and 7% commission are paid. What is the minimum for which the
house must sell? - Answer-75,269
Which one of these scenarios depicts redlining? - Answer-Mortgage broker Barry
refused to underwrite mortgage applications from applicants who want to buy in specific
neighborhoods.
Seller Randy signed a listing agreement with Barbara, who worked very hard to find him
a buyer. Randy's cousin decided to purchase the house during the listing period. Is
Barbara owed a commission according to Vermont regulations? - Answer-Yes, if she
has an exclusive right-to-market agreement
When a lender charges a borrower more than the highest allowable interest rate, it is
called ______. - Answer-Usury
Mixing escrow funds with personal funds is illegal and called ______. - Answer-
Commingling
, Homeowners can take several actions related to pest infestations, but which of the
following actions should be left to licensed pest management professionals? - Answer-
Applying pesticides
Which of the following is a right included with real property? - Answer-Exclusion
What's a vendee's lien? - Answer-A lien against real property for the earnest money
deposit paid on a contract of purchase
Stanley is having second thoughts about taking his neighbor to court over a written
agreement they have concerning who pays the rent on a storage unit that they share,
because it's used to store stolen merchandise. Stanley doesn't think the contract will
stand up in court. What type of contract does Stanley have? - Answer-Void
Vermont resident Walter is selling his condo. How are the monthly condo fees usually
paid? If the property being sold is a condo, the monthly condo dues are usually prorated
as of the buyer's possession date (usually the closing date). - Answer-They're prorated
as of the buyer's possession date
What, when signed by all parties to a sales contract, changes the original terms of the
contract ? - Answer-Amendment
In which type of contract does only one of the parties offer consideration? - Answer-
Unilateral
Which of the following properties meets the definition of a homestead in Vermont? -
Answer-The principal dwelling and its surrounding parcel of land owned and occupied
by Jackie, a resident individual, as her domicile.
What is a primary factor a lender reviews when determining if a borrower is a good
credit risk? - Answer-Buyer's income
Which of the following is an example of a deed restriction? - Answer-Fence height
In real estate contracts, which are required: legal descriptions or street addresses? -
Answer-Legal descriptions are required, because they provide less ambiguous and
more complete descriptions of properties than street addresses provide.
What must you disclose to be in full compliance with an agent's fiduciary duty to
disclose? - Answer-Conflicts of interest, material facts, and adverse material facts
A defect on a title that can be monetary or physical is called an ______. - Answer-
Encumbrance
Which one of the following examples creates vicarious liability for the principal broker? -
Answer-The broker's licensee neglects to provide required disclosures to a client.
COURSE FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS
Danica is purchasing a $1,000,000 property. She made an earnest money deposit of
$100,000, is financing $750,000, and making a $250,000 down payment. She has
$40,000 in closing costs. How much does Danica need to bring to closing? - Answer-
250,000+40,000= 290,000
290,000-100,000= 190,000
So, it will be 190,000
The power of the state to claim property when the owner dies without a will and without
locatable heirs or creditors is also known as ______. - Answer-Escheat
Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of
Harriet's listing. The property sold for $425,000. The total commission paid from the sale
is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement
with his broker that he earns 80% of the commission received. How much will Benji be
paid from this sale? - Answer-425,000*.06=25,500
25,500*0.80=20,400
20,400/2= 10,200
So, Benji will be paid 10,200.
A seller you're working with still owes $50,000 on his mortgage but wants to net $20,000
after the mortgage and 7% commission are paid. What is the minimum for which the
house must sell? - Answer-75,269
Which one of these scenarios depicts redlining? - Answer-Mortgage broker Barry
refused to underwrite mortgage applications from applicants who want to buy in specific
neighborhoods.
Seller Randy signed a listing agreement with Barbara, who worked very hard to find him
a buyer. Randy's cousin decided to purchase the house during the listing period. Is
Barbara owed a commission according to Vermont regulations? - Answer-Yes, if she
has an exclusive right-to-market agreement
When a lender charges a borrower more than the highest allowable interest rate, it is
called ______. - Answer-Usury
Mixing escrow funds with personal funds is illegal and called ______. - Answer-
Commingling
, Homeowners can take several actions related to pest infestations, but which of the
following actions should be left to licensed pest management professionals? - Answer-
Applying pesticides
Which of the following is a right included with real property? - Answer-Exclusion
What's a vendee's lien? - Answer-A lien against real property for the earnest money
deposit paid on a contract of purchase
Stanley is having second thoughts about taking his neighbor to court over a written
agreement they have concerning who pays the rent on a storage unit that they share,
because it's used to store stolen merchandise. Stanley doesn't think the contract will
stand up in court. What type of contract does Stanley have? - Answer-Void
Vermont resident Walter is selling his condo. How are the monthly condo fees usually
paid? If the property being sold is a condo, the monthly condo dues are usually prorated
as of the buyer's possession date (usually the closing date). - Answer-They're prorated
as of the buyer's possession date
What, when signed by all parties to a sales contract, changes the original terms of the
contract ? - Answer-Amendment
In which type of contract does only one of the parties offer consideration? - Answer-
Unilateral
Which of the following properties meets the definition of a homestead in Vermont? -
Answer-The principal dwelling and its surrounding parcel of land owned and occupied
by Jackie, a resident individual, as her domicile.
What is a primary factor a lender reviews when determining if a borrower is a good
credit risk? - Answer-Buyer's income
Which of the following is an example of a deed restriction? - Answer-Fence height
In real estate contracts, which are required: legal descriptions or street addresses? -
Answer-Legal descriptions are required, because they provide less ambiguous and
more complete descriptions of properties than street addresses provide.
What must you disclose to be in full compliance with an agent's fiduciary duty to
disclose? - Answer-Conflicts of interest, material facts, and adverse material facts
A defect on a title that can be monetary or physical is called an ______. - Answer-
Encumbrance
Which one of the following examples creates vicarious liability for the principal broker? -
Answer-The broker's licensee neglects to provide required disclosures to a client.
