Question 1

What deed provides the grantee with the least protection of any deed, while putting the least liability on the grantor?

Ageneral warranty deed

Bspecial warranty deed

Cquitclaim deed

Dbargain and sale deed

Answer : C

Deed types vary by the level of protection given to the grantee and liability for the grantor:

General Warranty Deed (A): Highest protection; grantor warrants title against all defects, even before their ownership.

Special Warranty Deed (B): Warrants only against defects during the grantor's ownership.

Quitclaim Deed (C): Provides no warranties at all --- it only conveys whatever interest (if any) the grantor may have. Offers the least protection for the grantee and least liability for the grantor.

Bargain and Sale Deed (D): Conveys ownership but with limited or no warranties; still greater than quitclaim in most contexts.

Thus, the quitclaim deed gives the grantee the least protection.

Code of Virginia 55.1-300 et seq. (Conveyances and deeds)

Virginia Real Estate Principles & Practices -- Deeds section

Question 2

When the CFPB introduced the new TRID rules integrating RESPA and TILA rules, what two disclosure forms did they mandate lenders provide to borrowers?

Athe Good Faith Estimate and the HUD-1

Bthe TILA disclosure and the RESPA disclosure

Cthe Settlement Statement and the Loan Disclosure

Dthe Loan Estimate and the Closing Disclosure

Answer : D

Comprehensive Detailed Explanation

When the Consumer Financial Protection Bureau (CFPB) implemented the TRID Rule (TILA-RESPA Integrated Disclosure) in 2015:

The Good Faith Estimate (GFE) and initial TILA disclosure were replaced by the Loan Estimate (LE).

The HUD-1 Settlement Statement and final TILA disclosure were replaced by the Closing Disclosure (CD).

Purpose: Simplify borrower understanding, increase transparency, and reduce last-minute surprises.

Reference (Virginia Real Estate & Federal):

TRID Rule (12 CFR Part 1026 -- Regulation Z)

Virginia Real Estate Principles -- Financing & Closing section

A490-02REGS.pdf -- Loan disclosure requirements

Question 3

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?

ANo, but it depends solely on her credit score.

BYes, PMI is required until she reaches 50% equity.

CYes, her down payment does not meet the requirements to eliminate PMI.

DNo, her down payment is large enough to avoid PMI.

Answer : D

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.

Fannie Mae/Freddie Mac Conventional Loan Guidelines

Virginia Real Estate Exam Outline -- Financing Section

Question 4

Which of the following is NOT an option that a seller has after receiving a counteroffer?

Adischarge the contract

Ballow the offer to expire

Caccept the offer

Dreject the offer in writing

Answer : A

When a seller receives a counteroffer, the original offer is terminated, and the seller has limited options:

Accept the counteroffer.

Reject it in writing.

Allow it to expire without response.

They cannot 'discharge the contract' because no binding contract exists until there is mutual acceptance of an offer. 'Discharge' applies only to an already valid and executed contract (e.g., by performance, mutual rescission, or operation of law).

Reference (Virginia Real Estate):

Code of Virginia Title 11 (Contracts)

Virginia Real Estate Principles -- Offers & Counteroffers section

A490-02REGS.pdf -- Contract law curriculum

Question 5

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?

Anothing, since it is for the public good

Bwhatever Ken asks for

Cjust compensation

Dwhatever they decide is reasonable

US. Constitution, 5th Amendment
Code of Virginia Title 25.1 (Eminent Domain)
A490-02REGS.pdf -- Government rights in land

Answer : C

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.