Real Estate Licensing Virginia Real Estate Salesperson Exam Practice Test Instant Access

Question 1

What is the difference between assemblage and plottage?

AAssemblage involves combining parcels of land, and plottage involves splitting parcels of land.

BAssemblage is the first step in creating a new subdivision, and plottage is the second step.

CAssemblage is the act of building a new building, and plottage is the act of creating a new parcel of land.

DAssemblage is the act of combining parcels of land, and plottage is the resulting increase in value.

Answer : D

Assemblage: The process of combining two or more adjacent parcels of land into one larger parcel.

Plottage: The increase in value that results from assemblage due to the greater utility or economic use of the combined parcel.

Example: Two small lots may be worth $50,000 each separately, but if assembled into one larger parcel, the combined property may be worth $120,000 due to increased development potential.

Reference (Virginia Real Estate):

Virginia Real Estate Principles -- Land and Appraisal section

A490-02REGS.pdf -- Valuation curriculum

Question 2

A form of insurance that protects the policyholder by covering any losses they might incur as a result of theft or fraud by specified individuals is:

Aa risk management bond

Ba liability bond

Ca security bond

Da fidelity bond

Answer : D

A fidelity bond is a type of insurance that protects employers or organizations against losses caused by theft, fraud, or dishonesty of employees or other specified individuals.

Other options are distractors:

(A) Risk management bond -- not a recognized insurance product.

(B) Liability bond -- would cover liability for damages, not theft/fraud.

Virginia Real Estate Practice Text -- Risk management and insurance section

Real Estate Board CE Curriculum -- Brokerage risk & trust account protections

Question 3

What is a management proposal?

Aa plan a property manager creates for managing a property, including an analysis of the market, financial standing, and operating budget

Ba budget for variable expenses

Ca report prepared by the property manager that informs the property owner(s) of their property's expenses, income, and disbursements

Da subdivision plan that includes residential dwellings along with nonresidential real estate

Answer : A

A management proposal is created by a property manager for the property owner. It typically includes:

Market analysis.

Property's financial condition.

Operating budget and forecast.

Management strategy for maintaining and improving the property.

Other options:

(B) A budget for variable expenses = too narrow.

(D) A subdivision plan = unrelated.

Reference (Virginia Real Estate):

Virginia Real Estate Principles -- Property management section

A490-02REGS.pdf -- Property management curriculum

Question 4

Which of these is a naturally occurring radioactive gas that emanates from rocks, soil, and water and can cause lung cancer?

Achlordane

Bchlorofluorocarbons

Ccarbon monoxide

Dradon

US. EPA Radon Risk Guidelines
Virginia Real Estate Board CE Curriculum -- Environmental Hazards

Answer : D

Radon is a colorless, odorless, naturally occurring radioactive gas that comes from the decay of uranium in rocks, soil, and groundwater.

It can accumulate in homes and buildings and is a leading cause of lung cancer in non-smokers.

Other options:

(A) Chlordane = pesticide.

(B) Chlorofluorocarbons = refrigerants damaging ozone.

Question 5

Which of these describes a leasehold estate?

ATerrence occupies an apartment he doesn't own. He pays his landlord rent every month.

BJanet owns a property she inherited from her father. There's a stipulation on the deed that it is only to be used for a residence. Otherwise, it reverts to him.

CShannon lives in her uncle's apartment and has the right to occupy it for the remainder of her life. After that, the property reverts back to her uncte.

DJung owns a building. He lives upstairs and runs the store downstairs.

Answer : A

A leasehold estate grants the tenant the right to occupy/use property for a specified time, while ownership remains with the landlord.

Terrence paying rent for an apartment he does not own is a classic leasehold estate example.

Other options:

(B) Stipulation on deed = fee simple defeasible estate.

(D) Jung owning and occupying = fee simple ownership.

Virginia Real Estate Principles & Practices -- Types of Estates

Question 6

A type of (usually commercial) lease in which the tenant pays a base rent amount and a percentage of their business profits to the landlord is a:

Agross lease

Bpercentage lease

Cnet lease

Dground lease

Answer : B

A percentage lease is most commonly used in commercial real estate, especially retail.

The tenant pays a base rent plus a percentage of their business's gross sales/profits to the landlord.

Example: Shopping mall tenants, restaurants, or department stores.

Other options:

(A) Gross lease = tenant pays fixed rent; landlord pays expenses.

(D) Ground lease = long-term lease of land (tenant builds on leased land).

Reference (Virginia Real Estate):

Virginia Real Estate Principles -- Types of leases

A490-02REGS.pdf -- Leasing curriculum

Question 7

The subject property has a pool valued at $30,000 and two bathrooms valued at $10,000 each. Comp 1 does not have a pool and has one less bathroom than the subject property.

What adjustments should be made to Comp 1's value?

Asubtract $40,000 from Comp 1's value

Bsubtract $20,000 from Comp 1's value

Cadd $40,000 to Comp 1's value

Dadd $20,000 to Comp 1's value

Answer : C