Vermont Agency
Practice Questions & Answers (2026)

Agency law is one of the most tested subjects on the Vermont real estate exam, and it's also one of the most misunderstood. The Vermont Real Estate Commission expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Vermont law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for VT-specific rules are among the most common failures on the state portion.

Practice Questions

Vermont Agency — Practice Questions & Answers

110 questions on Agency from the Vermont real estate question bank. First 10 are free — sign up to unlock all 110.

Q1. Vermont requires a licensee to provide agency disclosure to a consumer:

A.Only when a written agency agreement is signed
B.Before providing substantive assistance to that consumer
C.At the time of closing
D.Only if the consumer specifically asks about representation

Explanation

Vermont law requires agency disclosure before a licensee provides substantive assistance so the consumer understands who the licensee represents and what duties are owed to them.

Q2. Under Vermont law, a buyer's agent owes which duty to the seller?

A.Loyalty and confidentiality
B.Honest dealing and disclosure of material facts affecting the property
C.Full fiduciary duties including advocacy
D.No duties whatsoever

Explanation

While a buyer's agent owes full fiduciary duties to the buyer, they still owe the seller honest and fair dealing and must disclose material facts. A buyer's agent does not have to advocate for the seller's interests.

Q3. A Vermont broker who discloses a seller's confidential motivation for selling without authorization may be liable for:

A.Breach of fiduciary duty
B.Antitrust violations
C.Unauthorized practice of law
D.Violation of RESPA

Explanation

Disclosing a client's confidential information (such as the seller's motivation or willingness to accept less) without authorization is a breach of the fiduciary duty of confidentiality owed to the client.

Q4. In Vermont, a licensee acting as a disclosed dual agent represents:

A.Only the seller while assisting the buyer
B.Both buyer and seller simultaneously with the informed written consent of both parties
C.Neither party and acts only as a facilitator
D.The state of Vermont as a neutral party

Explanation

Disclosed dual agency in Vermont occurs when a broker represents both buyer and seller in the same transaction with the knowledge and written consent of both parties. The broker's duties to each party are limited.

Q5. Which of the following statements about sub-agency is TRUE in Vermont?

A.Sub-agency is mandatory in all Vermont real estate transactions
B.A sub-agent represents the buyer even when cooperating with the listing broker
C.A cooperating broker acting as sub-agent owes fiduciary duties to the seller, not the buyer
D.Sub-agents are paid directly by the buyer they assist

Explanation

A sub-agent is an agent of the listing broker who assists the buyer. Because the sub-agent's fiduciary duties run to the seller (through the listing broker), the buyer being helped by a sub-agent does not have agent representation.

Q6. An agency relationship terminates automatically when:

A.The agent goes on vacation
B.The principal dies
C.A new competing listing is taken by the same brokerage
D.The property is listed on MLS

Explanation

The death of either the principal or the agent automatically terminates the agency relationship. Other events that terminate agency include expiration, completion of the purpose, mutual consent, or revocation.

Q7. In Vermont, a seller's agent who learns that a buyer has been pre-approved for a higher loan amount than their offer reflects must:

A.Immediately disclose this information to the seller
B.Keep the information confidential as it is the buyer's personal financial information
C.Disclose it only if the seller specifically asks
D.Report it to the Vermont Real Estate Commission

Explanation

Financial information shared by the buyer is confidential and should not be disclosed to the seller. The buyer's agent (or a dual agent) has a duty to keep such information confidential. However, in this scenario, if the licensee is a seller's agent, the answer depends on who disclosed it to the agent—if the buyer volunteered it to a seller's agent, the seller's agent may have a duty to disclose it to the seller.

Q8. Which of the following is a fiduciary duty owed by a Vermont agent to their client?

A.Providing the client with a market analysis for free
B.Loyalty — putting the client's interests above all others, including the agent's own
C.Requiring all offers to be submitted in writing
D.Disclosing the agency relationship only at closing

Explanation

Loyalty is a core fiduciary duty requiring the agent to act in the client's best interest above all others, including the agent's own financial interests. Other fiduciary duties include obedience, disclosure, confidentiality, accounting, and reasonable care.

Q9. A Vermont buyer's agent arranges a showing of a property listed by another broker. At the showing, the buyer's agent notices the deck appears structurally unsound. The buyer's agent should:

A.Ignore it, as property condition is the listing broker's concern
B.Disclose the observation to their buyer client
C.Report it only to the listing broker
D.Cancel the showing immediately and leave the property

Explanation

A buyer's agent has a duty to disclose material facts affecting the property to their buyer client. Observing a potentially unsafe condition is a material fact the buyer should know before making a purchasing decision.

Q10. Vermont law requires that the agency disclosure form be:

A.Provided verbally at the first meeting
B.Provided in writing to the consumer before providing substantive assistance
C.Signed at the time a purchase contract is executed
D.Filed with the Vermont Real Estate Commission before the listing is taken

Explanation

Vermont requires written agency disclosure before providing substantive assistance to a consumer so they understand who the licensee represents and what duties are owed.

Q11. In a transaction where both the buyer and seller are represented by agents from the same brokerage, the brokerage is considered to be:

A.A sub-agent of both parties
B.A designated or disclosed dual agent
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