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Real Estate Licensing Virginia Real Estate Salesperson Exam Sample Questions (Q63-Q68):
NEW QUESTION # 63
Bobby took out a commercial mortgage to pay for his new podcast studio. It is an interest-only loan of $800,000 with an interest rate of 4.5%. How much will Bobby pay in interest over the year?
Answer: A
Explanation:
Reference (Virginia Real Estate Finance):
Real Estate Math section in Virginia Pre-License Education requirements (interest-only loan calculations) A490-02REGS.pdf sections on finance and math competency for licensure
NEW QUESTION # 64
What is one way that a contract for deed differs from a standard real estate sales contract?
Answer: C
Explanation:
A contract for deed (also called a land contract or installment sale contract) differs from a standard purchase agreement because:
Buyer makes installment payments directly to the seller.
Seller retains legal title until all payments are made.
Buyer holds equitable title during the payment period.
In contrast, a standard sales contract usually involves financing through a lender, and title transfers at closing.
Thus, the key difference is that a contract for deed spells out the buyer's payment plan to the seller, not just the purchase price.
Reference:
Code of Virginia §55.1 (Property & Conveyances)
Virginia Real Estate Board CE Outline - Contracts Section
NEW QUESTION # 65
Which of these is likely to be the lien with the highest priority?
Answer: B
Explanation:
Real estate tax liens (property taxes and special assessments) take highest priority over all other liens, regardless of recording date.
Priority order:
Property tax liens
Special assessments
Mortgages (by recording date)
Mechanic's liens (priority may vary but generally after taxes/mortgages) Other options:
(A) Mortgage - common lien but lower than tax lien.
(C) Attachment lien - granted by court, lower priority.
(D) Mechanic's lien - priority can date back to start of work, but still after tax liens.
Reference:
Code of Virginia §58.1-3340 et seq. (Real estate tax liens)
Virginia Real Estate Principles & Practices - Liens and Priority
NEW QUESTION # 66
Which of the following is correct about implied and express contracts?
Answer: C
Explanation:
Express contract: Terms are explicitly stated in words, either orally or in writing (e.g., a signed listing agreement).
Implied contract: Formed through the conduct or actions of the parties (e.g., ordering food at a restaurant implies a promise to pay).
Both types can be legally binding. The key difference is how the agreement is established.
Reference (Virginia Real Estate):
Code of Virginia Title 11 - Contracts
Virginia Real Estate Board education requirements - Contracts
NEW QUESTION # 67
Ernest is a third-party trustee who is holding a title for the lender of a home loan that is secured by a trust deed. The title gives Ernest limited rights sufficient to carry out the terms of the trust. What kind of title does Ernest hold?
Answer: A
Explanation:
In Virginia (a deed of trust state), when property is financed, a third-party trustee (like Ernest) holds naked title (also called bare legal title) on behalf of the lender.
The borrower retains equitable title (the right to live in and enjoy the property).
The trustee's limited rights exist only to enforce the terms of the trust deed (e.g., initiating foreclosure if borrower defaults).
This differs from "clean title" or "dirty title," which are not legal terms, and "skinny title," which is not recognized in real estate law.
Reference (Virginia Real Estate):
Code of Virginia § 55.1-3200 et seq. (Deeds of Trust)
Virginia Real Estate Principles - Financing & Title theory vs. lien theory section A490-02REGS.pdf - Mortgage/Trust Deed curriculum
NEW QUESTION # 68
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