Key details for this exam, checked against the published exam outline
Each question shows the correct answer and an explanation of why it is right
Lillian is buying a home for $355,000. She is going to put down $75,000 as her down payment on her conventional loan. Will Lillian be required to pay private mortgage insurance?
Private Mortgage Insurance (PMI) is generally required when a borrower puts down less than 20% on a conventional loan.
Lillian's home price = $355,000
Down payment = $75,000
Loan amount = $280,000
Down payment % = $75,000 $355,000 21.1%
Since Lillian's down payment exceeds 20%, PMI is not required.
Other options:
(A) Wrong --- PMI is based on equity, not just credit score.
(B) Wrong --- PMI never requires 50% equity.
(C) Wrong --- She meets the equity threshold.
Fannie Mae/Freddie Mac Conventional Loan Guidelines
Virginia Real Estate Exam Outline -- Financing Section
The government sends Ken a notice stating that his house and neighborhood will be demolished to build a much- needed water treatment plant. What is the government required to offer Ken in exchange for taking his property?
The government has the power of eminent domain, allowing it to take private property for public use (e.g., building a water treatment plant).
Under the Fifth Amendment of the U.S. Constitution, the government must provide ''just compensation'' to the property owner.
This typically means fair market value of the property.
Other options:
(A) Nothing = unconstitutional.
(B) Whatever Ken asks = not guaranteed.
(D) Whatever they decide = incorrect; compensation must be fair and just.
Reference (Virginia Real Estate):
When must a lender provide borrowers with a Closing Disclosure?
The TILA-RESPA Integrated Disclosure Rule (TRID) requires that the lender provide the Closing Disclosure (CD) at least three business days prior to loan consummation. This ensures that borrowers have adequate time to review the final loan terms, costs, and obligations.
If significant changes occur (such as APR change beyond tolerance, loan product change, or addition of a prepayment penalty), a new three-day waiting period is triggered.
This rule is enforced by the Consumer Financial Protection Bureau (CFPB) but is an important part of Virginia real estate education since agents must be aware of closing timelines.
Reference (Virginia Real Estate & Federal):
TRID Rule under Regulation Z (12 CFR 1026.19(f))
What is the purpose of the Do Not Call Registry?
The National Do Not Call Registry, enforced by the Federal Trade Commission (FTC), regulates telemarketing practices:
Prohibits commercial telemarketers from calling registered phone numbers.
Exceptions: political calls, charitable organizations, debt collectors, and businesses with an established relationship.
Real estate agents must comply and check the registry before making solicitation calls, unless the call falls under an exemption.
Other options confuse it with advertising regulations (truth-in-advertising, CAN-SPAM Act, etc.), which are separate.
Reference (Virginia Real Estate):
Telephone Consumer Protection Act (TCPA)
FTC Do Not Call Registry Rules
Virginia Real Estate Board continuing education on Advertising & Ethics
What is the legal doctrine by which the decedent's property will pass to the state without their consent if that individual dies without a will, a surviving spouse, lineal descendants, or other known heirs?
The doctrine of escheat applies when a person dies intestate (without a will) and has no surviving spouse, descendants, or heirs. In such cases, ownership of the property passes to the state.
Other doctrines:
(A) Police power = government authority to regulate land use.
(B) Eminent domain = taking private property for public use with just compensation.
(D) Variance = zoning exception.
Reference (Virginia Real Estate):
Virginia Code 55.1-2400 et seq. (Escheats)
A490-02REGS.pdf -- Government powers in real estate
Rosa is trying to get approved for a loan so she can purchase a new home. What type of value will the lender use to determine whether or not to approve Rosa's loan?
When approving a loan, the lender relies on the appraised value, which is the value determined by a licensed appraiser.
This ensures that the property is sufficient collateral for the loan.
Other options:
(A) Market value -- what a buyer is willing to pay, but lenders require a professional appraisal.
(B) Insurable value -- amount insurance would cover, not relevant for loan approval.
(D) Assessed value -- used by tax authorities for property taxes, not lending.
Virginia Real Estate Finance Principles -- Loan underwriting & appraisal role
Fannie Mae Selling Guide (Collateral requirements)
13 domains from the Real Estate Licensing Virginia-Real-Estate-Salesperson exam outline, with approximate weightings. Every sample question above is tagged with the domain it comes from
Understand real and personal property, conveyances, legal descriptions including metes and bounds, lot and block, and government survey methods. Study encumbrances such as liens and easements, and various forms of property ownership from sole ownership to trusts and business entities.
Sample question from this domain above: Q5
Understand real and personal property, conveyances, legal descriptions including metes and bounds, lot and block, and government survey methods. Study encumbrances such as liens and easements, and various forms of property ownership from sole ownership to trusts and business entities.
Learn government rights including taxation and eminent domain, controls on land use, and private controls through deed restrictions and covenants. Understand how CC&Rs and condominium regulations affect property use.
Sample question from this domain above: Q2
Master appraisals, the three valuation approaches (sales comparison, cost, and income), and comparative market analysis. Understand which situations require licensed appraisers and the steps in the appraisal process.
Sample question from this domain above: Q6
Study loan types including conventional, FHA, VA, USDA, owner financing, reverse mortgages, construction, and bridge loans. Learn RESPA, Truth-in-Lending, TRID disclosures, and the lending process from application to closing.
Learn contract law principles, elements of valid contracts, and the Statute of Frauds. Study purchase agreements, lease contracts, contingencies, and handling multiple offers and counteroffers.
Agency and non-agency relationships; 1. Agency relationships and how they are established; 2. Types of listing contracts; 3. Buyer brokerage/tenant representation contracts; 4. Other brokerage relationships, including transaction; brokers and facilitators; 5. Powers of attorney and other assignments of authority; 6. Conditions for termination of agency or brokerage; service agreements; B. Agent Duties; 1. Fiduciary duties of agents; 2. Agent's duties to customers/non-clients, including; honesty and good faith; C. Agency Disclosures; 1. Disclosure of agency/representation; 2. Disclosure of possible conflict of interest or self-interest
Master seller's property condition disclosure requirements and conditions warranting inspections. Understand environmental issues and federal, state, and local disclosure requirements.
Learn tenant procurement and fair housing compliance in property management. Understand market analysis for setting rents, maintenance responsibilities, and trust account handling for brokers.
Study types of deeds, title insurance policies, and title searches. Learn the closing process, recordation importance, settlement procedures, and special processes for foreclosed and short sale properties.
Understand the Federal Fair Housing Act, protected classes, and prohibited conduct. Learn antidiscrimination laws, antitrust compliance, confidentiality duties, and broker supervisory responsibilities.
Sample question from this domain above: Q4
Calculate seller's net proceeds, buyer funds at closing, prorations, transfer fees, and PITI payments. Understand equity, capitalization rate, and loan-to-value ratios.
Calculate seller's net proceeds, buyer funds at closing, prorations, transfer fees, and PITI payments. Understand equity, capitalization rate, and loan-to-value ratios.
Common questions about the exam itself
