VRES - Virginia Real Estate Salesperson Exam

Question 21: A seller in Henrico County reviews her settlement statement and finds a line for the additional tax paid by the grantor. Which of the following describes the rate at which Virginia imposes that tax on that settlement statement?

Twenty-five cents per one hundred dollars

Fifty cents per five hundred dollars

One percent of the sale price

Two dollars per one thousand dollars

Question 22: A Virginia deed presented for recording recites consideration that does not divide evenly into the statutory denominators used for the state recordation tax and for the grantor's tax. Which of the following describes how the clerk treats that remainder?

The remainder is disregarded entirely

The remainder prorates to the cent

The taxes are averaged across both denominators

Any fraction is taxed as a unit

Question 23: A parent sells a house in Albemarle County to an adult child for far less than the property is worth, and the clerk computes the recordation tax. Which of the following describes the base on which that tax is calculated?

The stated consideration in every case

The balance of an assumed loan

Consideration or actual value, whichever is greater

The average of consideration and assessed value

Question 24: A city in the Commonwealth of Virginia has adopted an ordinance imposing its own recordation tax alongside the state charge that the circuit court clerk already collects. Which of the following describes the amount that local tax may reach?

One-third of the state recordation tax

An amount equal to the state tax

One-half of the grantor's tax

A flat fee set locally

Question 25: A settlement in a county belonging to the Northern Virginia Transportation Authority carries an extra transfer charge that does not appear on closings elsewhere in the Commonwealth. Which of the following describes that charge on the settlement statement?

Ten cents per hundred, the grantee

Twenty-five cents per hundred, the grantee

Fifty cents per five hundred, the lender

Ten cents per hundred, the grantor

Question 26: A Virginia purchase contract for a house in Vienna provides that the buyer will pay the grantor's tax at settlement rather than the seller. Which of the following describes the enforceability of that term written into the contract?

Void, because the statute names the grantor

Enforceable, since the parties may agree otherwise

Enforceable only in commercial transactions

Void unless the clerk approves

Question 27: A deed conveying a house in Prince William County has been signed and acknowledged, and the settlement agent is preparing to record it. Which of the following identifies the office where Virginia instruments are recorded for that deed?

The county recorder of deeds

The register of deeds for the district

The clerk of the circuit court

The commissioner of the revenue

Question 28: A buyer in Roanoke County takes a deed and never records it, and the seller later conveys the same parcel to a second buyer who pays value and knows nothing of the first sale. Which of the following applies?

Void as to the second purchaser

The first buyer prevails on delivery

The second buyer must record first

They hold as tenants in common

Question 29: Two friends take title to a Chesapeake property as joint tenants, and the deed says nothing further about what happens when one of them dies. Which of the following describes the result under Virginia law on the first death?

The survivor takes the whole interest automatically

The estate takes the deceased owner's share

The property escheats to the Commonwealth

It converts to tenancy by entirety

Question 30: A buyer and a seller reach agreement on a Williamsburg property, and the buyer's attorney reviews the paperwork to see whether an enforceable contract has actually formed. Which of the following lists elements every valid real estate contract must contain?

Recording, notarization, and a survey

Earnest money, financing, and an inspection

Offer and acceptance, consideration, capacity, legal purpose

Escrow instructions and a title commitment

Question 31: A seller in Blacksburg orally agrees to sell a rental house and later refuses to go forward, arguing that nothing binds him. Which of the following doctrine controls whether the buyer can enforce that agreement against the seller?

The statute of frauds

The doctrine of laches

The parol evidence rule

The rule against perpetuities

Question 32: A seventeen-year-old with a part-time job signs a contract to purchase a condominium in Arlington and, two weeks later, decides she does not want to complete the purchase at all. Which of the following describes the status of that contract?

Void from the outset

Unenforceable by either party

Fully enforceable once she reaches majority

Voidable at the minor's option

Question 33: An investor pays a landowner in Augusta County a sum for the exclusive right to buy a parcel at a set price within the next year, with no obligation to buy. Which of the following describes that arrangement?

A bilateral purchase contract

A right of first refusal

A unilateral option contract

An installment land contract

Question 34: A seller in Alexandria responds to a written offer by changing the closing date and returning the document signed. The buyer then tries to accept the original terms instead. Which of the following describes the legal effect of the seller's response?

The counteroffer terminated the original offer

Both documents remain open for acceptance

The buyer may accept either version

The changes are a clerical amendment

Question 35: A retail tenant in a Richmond shopping center pays a base rent each month plus an additional amount tied to the store's gross sales above a stated threshold. Which of the following describes the lease that tenant signed?

A gross lease

A ground lease

A graduated lease

A percentage lease

Question 36: A borrower financing a purchase of a rancher in Suffolk pays an additional charge at closing in exchange for a lower interest rate over the whole life of the loan. Which of the following describes that charge at settlement?

An origination fee

Private mortgage insurance

Discount points

A prepayment penalty

Question 37: An underwriter reviewing a Virginia residential loan application file compares the amount being borrowed against the lesser of the sale price and the appraised value of the house. Which of the following measure is she computing in that file?

The loan-to-value ratio

The debt-to-income ratio

The capitalization rate

The equity dividend rate

Question 38: A first-time buyer in Manassas obtains a conventional loan with a small down payment, and the lender adds a monthly charge that protects the lender against loss if she defaults. Which of the following describes that monthly charge?

A funding fee on a government-backed loan

Private mortgage insurance

A hazard insurance premium

A title insurance premium

Question 39: A commercial borrower in Richmond takes a loan with level monthly payments calculated on a thirty-year schedule, but the term ends after seven years and leaves a large sum still owing. Which of the following best describes that loan structure?

A fully amortized loan

An interest-only loan

A partially amortized loan with balloon

A reverse mortgage

Question 40: A Virginia lender explains that the interest rate on an adjustable loan will be set at each adjustment by adding a fixed percentage to a published economic indicator. Which of the following names those two components of the calculation?

The margin and the index

The cap and the ceiling

The point and the yield

The discount and the spread

VRES Virginia Real Estate Salesperson Exam - Set 5 - Part 2