Virginia Practice TestEscrow & Title

Virginia Escrow & Title
Practice Questions & Answers (2026)

Escrow, title, and closing questions on the Virginia exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Virginia uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Virginia law. 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 Virginia practice.

Practice Questions

Virginia Escrow & Title — Practice Questions & Answers

116 questions on Escrow & Title from the Virginia real estate question bank. First 10 are free — sign up to unlock all 116.

Q1. In Virginia, who typically holds the earnest money deposit during the period between contract ratification and closing?

A.The seller
B.The buyer's attorney
C.The escrow agent (usually a title company or broker's escrow account)
D.The Virginia Real Estate Board

Explanation

In Virginia, earnest money is typically held in escrow by a neutral third party such as a title company or the broker's escrow account until closing or other resolution.

Q2. A title search in Virginia reveals an unsatisfied judgment lien against the seller. This lien:

A.Automatically expires after 30 days
B.Must be paid off or released before the seller can convey clear title
C.Does not affect the buyer since it is the seller's debt
D.Transfers to the buyer after closing

Explanation

A judgment lien attaches to all real property owned by the judgment debtor in the county where it is recorded. It must be satisfied before or at closing to allow conveyance of clear title.

Q3. An owner's title insurance policy in Virginia protects:

A.The lender against loss from title defects
B.The buyer/owner against title defects that existed prior to closing
C.The seller against post-closing claims
D.The escrow agent against claims of negligence

Explanation

An owner's title insurance policy protects the buyer/owner from financial loss due to title defects, liens, or other encumbrances that existed prior to the policy date but were not discovered during the title search.

Q4. In Virginia, recording a deed serves primarily to:

A.Transfer legal title from grantor to grantee
B.Provide constructive notice to the world of the buyer's ownership
C.Create a valid sales contract
D.Satisfy the lender's escrow requirements

Explanation

Recording a deed provides constructive notice to the public of the grantee's ownership. It does not create the transfer (delivery and acceptance of the deed do that), but it protects the grantee against subsequent claims.

Q5. In Virginia, a deed of trust has how many parties?

A.Two
B.Three
C.Four
D.Five

Explanation

A Virginia deed of trust involves three parties: the borrower (trustor/grantor), the lender (beneficiary), and a neutral third-party trustee who holds bare legal title as security for the loan.

Q6. In Virginia, a 'wet settlement' means:

A.The closing occurs during rainy weather
B.The seller receives sale proceeds and the buyer receives the deed at the same closing table
C.Funds are disbursed before the deed is recorded
D.The closing is conducted by a licensed attorney

Explanation

Virginia is a 'wet settlement' state, meaning the buyer receives the keys and the seller receives the proceeds at the same closing, with simultaneous exchange of deed and funds.

Q7. In Virginia, who customarily performs the closing/settlement?

A.A title company representative only
B.The listing broker
C.An attorney or title company agent
D.A VREB-certified settlement officer

Explanation

In Virginia, closings are customarily handled by attorneys or title company agents. While not legally required to be conducted by an attorney (unlike some states), attorneys commonly perform closings.

Q8. A chain of title in Virginia refers to:

A.The chronological list of all recorded documents affecting title to a property
B.The physical boundaries of a property
C.The mortgage lien priority order
D.The sequence of property inspections

Explanation

A chain of title is the complete chronological history of all recorded ownership transfers and encumbrances affecting a property, from original conveyance to the present owner.

Q9. A mechanic's lien in Virginia is filed by:

A.A lender whose borrower has defaulted
B.A contractor or supplier who has not been paid for labor or materials
C.The locality for unpaid property taxes
D.VREB for license violation fines

Explanation

A mechanic's lien (materialman's lien) is a claim against real property by contractors, subcontractors, or material suppliers who have not been paid for work or materials provided to improve the property.

Q10. In Virginia, a judgment lien attaches to real property when:

A.The plaintiff files a lawsuit
B.The court issues a judgment and it is recorded in the jurisdiction where the property is located
C.The defendant misses a mortgage payment
D.The property is listed for sale

Explanation

In Virginia, a judgment becomes a lien on real property in a jurisdiction when the judgment is docketed (recorded) in the general district or circuit court of that jurisdiction.

Q11. The Grantee's Tax in Virginia is:

A.A state tax paid at the same rate statewide
B.A local tax that varies by locality and is paid by the buyer
🔒

106 more Escrow & Title questions

Create a free account to unlock all 116 Virginia Escrow & Title questions with full explanations.

Free account · No credit card · Instant access to 25 questions

Ready to take the full exam? Start free.

25 free questions · No signup · Instant access to all Virginia topics