Vermont Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Vermont exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Vermont requires a licensed attorney to conduct real estate closings — unlike escrow states — which shapes how these questions are framed on the VT exam. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Vermont practice.
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Vermont Escrow & Title — Practice Questions & Answers
109 questions on Escrow & Title from the Vermont real estate question bank. First 10 are free — sign up to unlock all 109.
Q1. Vermont's Property Transfer Tax is paid by the:
Explanation
Vermont's Property Transfer Tax is typically paid by the buyer when the deed is recorded. The tax is calculated based on the purchase price. First-time homebuyers purchasing a principal residence may qualify for a reduced rate.
Q2. In Vermont, real estate closings are most commonly conducted by:
Explanation
Vermont is an attorney state. Real estate closings are typically conducted by a licensed Vermont attorney who examines title, prepares closing documents, handles disbursements, and records the deed. This is a standard practice in Vermont.
Q3. A buyer discovers after closing that there is an existing easement on the property that was not disclosed. If the buyer has an owner's title insurance policy, the policy would cover:
Explanation
Owner's title insurance protects against title defects—including undisclosed recorded easements—that existed before the policy date. If a recorded easement was not listed as an exception in the policy and it causes a loss, the policy covers the claim.
Q4. In Vermont, to be valid for recording, a deed must be:
Explanation
In Vermont, a deed must be signed by the grantor and acknowledged (acknowledged before a notary public or justice of the peace) to be eligible for recording with the town clerk.
Q5. Vermont's Property Transfer Tax rate for a buyer purchasing a primary residence for the first time is:
Explanation
Vermont's Property Transfer Tax for first-time buyers of a primary residence is 0.5% on the first $100,000 of the purchase price and 1.25% on the amount above $100,000. Non-primary-residence purchases are taxed at 1.45%.
Q6. A title examination in Vermont involves reviewing:
Explanation
Title examination in Vermont requires searching the grantor-grantee index at the town clerk's office to trace the chain of title, typically for 40 years or back to a 'root of title,' to identify any defects, encumbrances, or gaps.
Q7. A Vermont quitclaim deed conveys:
Explanation
A quitclaim deed conveys only whatever interest the grantor has in the property, with no warranty. If the grantor has full title, the grantee receives full title. If the grantor has no title, the grantee receives nothing.
Q8. Which of the following is a general warranty covenant contained in a Vermont warranty deed?
Explanation
A general warranty deed contains multiple covenants including: seisin (grantor owns and has right to convey), quiet enjoyment, further assurance (grantor will execute additional documents if needed), warranty (defend title against all claims), and freedom from encumbrances.
Q9. In Vermont, a lis pendens (notice of pending litigation) affects a property by:
Explanation
A lis pendens is recorded to provide constructive notice that there is pending litigation affecting the property's title. Any buyer who purchases the property after the lis pendens is recorded takes subject to the outcome of that litigation.
Q10. At a Vermont closing, the HUD-1 (or Closing Disclosure) lists a commission debit of $18,000 on the seller's side. This means:
Explanation
A debit on the seller's closing statement reduces the seller's net proceeds. The broker's commission is a debit to the seller — it is deducted from the sale proceeds before the seller receives their net amount.
Q11. A Vermont title search reveals a federal tax lien against the property's owner. At closing, this lien will typically be:
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