Vermont Contracts
Practice Questions & Answers (2026)
Contract law questions on the Vermont real estate exam test both general contract principles and Vermont-specific transaction requirements. The Vermont Real Estate Commission tests how Vermont contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Vermont law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong VT-specific timeframe or rule.
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Vermont Contracts — Practice Questions & Answers
146 questions on Contracts from the Vermont real estate question bank. First 10 are free — sign up to unlock all 146.
Q1. For a real estate contract to satisfy Vermont's Statute of Frauds, it must be:
Explanation
Vermont's Statute of Frauds requires that contracts for the sale of real estate be in writing and signed by the party against whom enforcement is sought. Oral real estate contracts are generally unenforceable.
Q2. If a buyer makes an offer and the seller changes the price and accepts, the buyer's original offer has been:
Explanation
A counteroffer terminates the original offer. The seller's response (changing the price) is a new offer that the buyer may accept, reject, or counter. The original offer no longer exists.
Q3. In Vermont, a real estate purchase and sale agreement is considered 'executory' until:
Explanation
An executory contract is one that has been signed but whose terms have not yet been fully performed. A real estate contract remains executory until all obligations are fulfilled—typically at the closing when deed is delivered and payment is made.
Q4. A Vermont seller signs a listing agreement with Broker A. Before any offer is received, the seller signs a second listing agreement with Broker B for the same property. Regarding the first agreement:
Explanation
If the first listing agreement is an exclusive-right-to-sell, the seller owes Broker A a commission if the property sells during the listing period, regardless of who produces the buyer. Entering a second listing agreement may create liability to both brokers.
Q5. A Vermont residential purchase contract includes an inspection contingency. The buyer's inspector discovers that the roof needs replacement. The buyer may:
Explanation
An inspection contingency typically gives the buyer the right to cancel the contract (and recover earnest money) if inspection results are not satisfactory, or to attempt to negotiate repairs or a price reduction with the seller.
Q6. Under Vermont law, which doctrine holds that the seller retains bare legal title while the buyer acquires equitable title upon signing a purchase contract?
Explanation
The doctrine of equitable conversion holds that once a valid purchase contract is executed, the buyer acquires equitable title (and the risk of loss in many states), while the seller retains legal title as security until closing.
Q7. Which of the following is an essential element of a valid Vermont real estate contract?
Explanation
Consideration (something of value exchanged) is an essential element of a valid contract. In real estate contracts, consideration typically consists of the purchase price and the promise to convey the property.
Q8. A Vermont seller accepts an offer contingent on the buyer obtaining financing within 30 days. On day 28, the buyer is denied financing. The contract is:
Explanation
When a financing contingency is not satisfied within the specified time, the contract is terminated, and the buyer is typically entitled to a refund of their earnest money deposit, provided they acted in good faith to obtain financing.
Q9. In Vermont, an option contract gives the optionee (buyer) the:
Explanation
An option contract gives the optionee the right, but not the obligation, to purchase property within a specified time period at an agreed price. The optionor (seller) is bound to sell if the optionee exercises the option.
Q10. A Vermont purchase contract contains an 'as-is' clause. This means:
Explanation
An 'as-is' clause means the buyer accepts the property in its current condition. However, even with an as-is clause, the seller is still obligated to disclose known material defects. The clause does not excuse the seller from fraud or misrepresentation.
Q11. A buyer and seller in Vermont reach a verbal agreement on the sale of a home but do not reduce it to writing. This agreement is:
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