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Real Estate Licensing Virginia Real Estate Salesperson Exam Sample Questions (Q46-Q51):

NEW QUESTION # 46
The purpose of discount points is:

Answer: A

Explanation:
Discount points are prepaid interest paid at closing to the lender.
One point = 1% of the loan amount.
By paying points upfront, borrowers receive a lower interest rate over the life of the loan (commonly referred to as "buying down the rate").
Other options:
(B) Wrong - has nothing to do with property taxes.
(C) Wrong - that describes an interest rate lock, not discount points.
(D) Wrong - points increase closing costs.
Reference:
Virginia Real Estate Finance Principles - Discount Points
Fannie Mae Guidelines - Loan Costs


NEW QUESTION # 47
Norah just purchased a warehouse with dimensions of 25 ft. by 15 ft. She wants to carpet the floor. How many square YARDS of carpet does she need?

Answer: A

Explanation:

Reference (Virginia Real Estate):
Virginia Real Estate Math section
A490-02REGS.pdf - Math competency for licensure


NEW QUESTION # 48
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?

Answer: D

Explanation:
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.
Reference:
Virginia Real Estate Finance Principles - Loan underwriting & appraisal role Fannie Mae Selling Guide (Collateral requirements)


NEW QUESTION # 49
The four phases of an environmental site assessment are, in order:

Answer: C

Explanation:
An Environmental Site Assessment (ESA) is typically required in commercial real estate transactions to evaluate environmental risks. The four recognized phases are:
Management (Phase I - Due Diligence): Review of records, site inspection, and interviews to identify potential contamination.
Investigation (Phase II): Collection of soil, groundwater, and other samples if contamination is suspected.
Testing (Phase III): Laboratory analysis and risk assessment of environmental hazards.
Remediation (Phase IV): Cleanup or mitigation of contamination (removal, containment, or corrective measures).
This sequence ensures proper environmental due diligence and liability protection under CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act).
Reference (Virginia Real Estate):
CERCLA & ASTM Environmental Site Assessment Standards
Virginia Department of Environmental Quality (VDEQ) regulations
Virginia Real Estate Principles - Environmental Issues section


NEW QUESTION # 50
What is one way that a contract for deed differs from a standard real estate sales contract?

Answer: A

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 # 51
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