PA
Your clients, the Jamesons, are selling their lakefront property. They receive an offer, and the buyer has included a pre-approval letter. The Jamesons balk, saying, "We want a pre-qualification letter, or we're not selling." What do you tell them?
"A pre-approval letter is better than a pre-qualification letter."
Which of the following is an example of a metes and bounds description? 123 Roanoke Street Any Town, ST 98765 "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." Lot 6 of Block 3 of the Meridian subdivision ... S ½ SE ¼ NW ¼ Section 2 ...
"Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..."
While reviewing her purchase contract, Jeanette's client asked, "What does this inspection contingency do?" How should Jeanette frame her response? "Like all contingencies, it means you'll get your earnest money deposit back if you back out of the contract because of the contingency." "That contingency means you can terminate the contract without penalty for any reason related to the home inspection results." "The inspection contingency gives you the legal right to terminate the contract if the seller refuses to fix the items you request." "The inspection contingency is designed to protect you in case the home inspector finds something wrong with the property that can't be fixed or that makes you uncomfortable."
"The inspection contingency is designed to protect you in case the home inspector finds something wrong with the property that can't be fixed or that makes you uncomfortable."
Bob and Mary are financing $80,500 for a new home. Their lender will approve an interest rate of 6.5% if Bob and Mary pay three-and-a-half discount points at closing. How much is this?
$2,817.50
The tax is $0.115 per $100 of mortgage debt or obligation secured. A property that sold for $500,000, of which $400,000 was financed, would have a mortgage recording tax amount of ______. $280 $320 $460 $570
$460
Carson is purchasing a $600,000 property by obtaining an 80/20 loan. How much is Carson financing?
$480,000
A local buyer is purchasing a property that has an appraised value of $100,000, and an assessed value of $25,000. If the tax rate is 3%, what will the buyer likely pay annually in taxes? $1,250 $3,000 $3,750 $750
$750
A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. If $1,145.83 is interest, how much is applied to principal?
$896.88
What is the purpose of a deed? -It offers proof of a lender's lien on real property. -It's a method of obtaining an abstract of title. -It's used to determine a property's assessed value for property taxes. -It's used to transfer real property from one party to another.
-It's used to transfer real property from one party to another.
Dwight is a licensee in Pennsylvania. He no longer wants Jim as his broker and is changing his affiliation to broker Michael. Within how many days must he notify the commission?
10 days
What's the typical useful life of an underground storage tank? 15 years 50 years One year Two years
15 years
What is a general lien?
A claim against a person and all of that person's property
Which of the following is a violation of federal fair housing law? A landlord refuses to rent to anyone under the age of 30. A private homeowner advertises a private house share using the phrase: "No minorities." A private homeowner lives in a duplex and won't rent the other half to a pregnant woman. A private homeowner lives in a triplex and won't rent one of the units to a family.
A private homeowner advertises a private house share using the phrase: "No minorities."
Per Pennsylvania license law, which of these items is required to be included in an agency agreement? A statement that the commission to be paid and agreement duration were negotiated between the broker and the consumer Closing and possession date(s) Sales price Zoning classification of the property
A statement that the commission to be paid and agreement duration were negotiated between the broker and the consumerWhat does procuring cause refer to?
The Knolls are purchasing a property and are concerned about the title. They want to have a title search performed. Who can perform a title search? A property inspector A title insurance company The Knolls The Knolls' real estate agent
A title insurance company
What is it called when a person who has possession of a property through a life estate abuses the property or allows it to deteriorate? Act of waste Escheat Estate at sufferance Reversionary interest
Act of Waste
What is a judicial foreclosure? -After borrower and public notice are provided, the property is sold at auction to the highest bidder without court action due to the power of sale clause in the security instrument. -After borrower default, the lender records paperwork with the court, the court sets a payment deadline for the borrower, and the lender is awarded title if the borrower doesn't pay. -After sufficient notice to the borrower and to the public, the court permits the property to be sold at auction to the highest bidder. -The property is sold at a foreclosure auction for less than the amount due by the borrower and the lender sues the borrower to collect the difference.
After sufficient notice to the borrower and to the public, the court permits the property to be sold at auction to the highest bidder.
Which of the following is the best definition of a covenant between a lessor and lessee? An addendum to a contract added after it's signed An agreement or promise made between the parties A provision for which neither party to a contract is willing to compromise A rent escalation
An agreement or promise made between the parties
Which of the following opinions can a real estate licensee provide? An opinion regarding the appraisal value of a property An opinion regarding the effect of breaking an existing agreement to accept a new offer An opinion regarding the listing price An opinion regarding whether a roof needs to be replaced
An opinion regarding the listing price
What does procuring cause refer to? A condition that must be met in order for a contract to be legally binding An uninterrupted series of events that results in a successful transaction Compensation for loss, damage, or injury caused Failure to perform an act agreed upon by all parties
An uninterrupted series of events that results in a successful transaction
Homeowners can take several actions related to pest infestations, but which of the following actions should be left to licensed pest management professionals? Applying pesticides Installing a vapor barrier Looking for signs of an infestation Removing moisture from the home
Applying pesticides
What's a certified opinion or estimate of value of a particular property as of a particular date?
Appraisal
Buyer Penelope adores the house at 212 Maple Street, but two weeks after making her offer, she's discovered it's got some issues that weren't identified on the state-required seller disclosure form. She still wants to buy the house. Since the seller appears to have lied on the disclosure form, what can Penelope do? Ask the seller to make the repairs needed, or ask for a credit to cover the cost of those repairs. Because the seller lied on the disclosure forms, the purchase contract is invalidated, so Penelope must make a new offer. Complete the transaction, then sue the seller for fraud. Reduce the amount of her offer.
Ask the seller to make the repairs needed, or ask for a credit to cover the cost of those repairs.
As a security precaution, when posting on social media, what should you do?
Assume that the information will be passed along.
Nina is a real estate salesperson. She placed an advertisement online that includes her name, the city and state where her brokerage is located, and the area where her brokerage is licensed. What element did she leave off that must be included? Brokerage name License number She included all required elements. The county where the brokerage is located
Brokerage name When advertising anywhere, including the Internet, the licensee name, brokerage name, city and state, and area where licensed (if different) are required.
A Pennsylvania licensee who acts in the buyer's best interest and makes a continuous good-faith effort to find a property until the buyer enters into a purchase contract is a ______. Buyer's agent Dual agent Seller's agent Transaction licensee
Buyer's agent
How can a seller correct inaccuracies in a property condition disclosure statement? -By covering up the issues with cheap work and not worrying about them -By drafting an addendum or amendment -By leaving a note in the home after the close of the sale -By phoning the buyer and the buyer's agent
By drafting an addendum or amendment
Which individuals in Pennsylvania may appraise residential property only, and only of one to four units, regardless of whether the transaction is federally related?
Certified residential real estate appraiser
What are PCBs? A chemical compound that occurs naturally in the environment A substance resulting from the decay of uranium A substance that grows due to moisture problems Chemical compounds used in cooling and insulating, mainly in electrical transformers
Chemical compounds used in cooling and insulating, mainly in electrical transformers
Which one of the following statements regarding depreciation schedules is true? -Both commercial and residential income-producing properties are depreciated according to the same schedule. -Commercial income-producing properties are depreciated longer (39 years) than residential income-producing properties (27.5 years) are. -Residential income-producing properties are depreciated longer (39 years) than commercial income-producing properties (27.5 years) are. -You cannot depreciate income-producing properties.
Commercial income-producing properties are depreciated longer (39 years) than residential income-producing properties (27.5 years) are.
The formula for net to seller is sales price x (100% - _______). Commission rate Loan amount Market value Sales price
Commission rate
Thanks to this act, sites containing hazardous substances are identified, and responsible parties must clean them up. Comprehensive Environmental Response Compensation and Liability Act Department of Housing and Urban Development National Environmental Policy Act State Department of Environmental Quality
Comprehensive Environmental Response Compensation and Liability Act
Buyer Josephine had just signed a contract on a house when she discovered that seller's agent Franklin knew that this house was 3500 square feet, but he listed it at 3900 square feet. Which essential contract element has been compromised? Consent Consideration Legal purpose Offer and acceptance
Consent
You are meeting with a prospective client for the first time. Which required document will you review with the customer that will explain the business relationship they are entering into with you?
Consumer Notice
What do buyers provide to the seller as an indication that they are serious and intend to go through with the purchase? A copy of the signed agency agreement A promissory note Earnest money Their word
Earnest money
Easements are a type of encumbrance that can affect a property. Which of the following is true about easements? An easement is a right one party acquired to use another party's land, usually for one day. An easement requires the property owner's express permission. Easements are always permanent. Easements are often established by a written agreement between the parties.
Easements are often established by a written agreement between the parties.
Which type of REIT receives most of its revenue from rental of its properties? Equity REIT Leasehold REIT Mortgage REIT Tax-deferred REIT
Equity REIT
Which agency enforces federal fair housing laws? FHA FHEO NFHA NHA
FHEO
Rhiannon met the Rays for the first time two months ago, at which time she provided them with the Consumer Notice. After reviewing the disclosure, both Rhiannon and the Rays signed the document. How long must Rhiannon keep the acknowledged Consumer Notice on file? For at least 12 months following acknowledgment For at least 18 months following acknowledgment For at least six months following acknowledgment For at least three months following acknowledgment
For at least six months following acknowledgment
Frank took out a mortgage from First National Bank in order to purchase a new home. In a lien theory state, who or what retains the title to the property? Fannie Mae, which buys the loan from First National Bank First National Bank, the lender Frank, the borrower The trustee to this transaction
Frank, the borrower but the lender has a lien on the property
The State Real Estate Commission holds regular meetings and at least one public meeting a year in Pittsburgh, Philadelphia, and ______.
Harrisburg
Broker Hal enters into a listing agreement with seller Jane. Jane insists that the agreement state that only native-born U.S. citizens be allowed to buy the home. For what reason will this agreement be considered void? It lacks a lawful objective. It needs to be oral rather than written. It represents a mutual mistake. It was made under duress.
It lacks a lawful objective.
Which document provides an estimate of the costs a buyer is likely to pay at settlement? Closing Disclosure HUD-1 statement Loan Estimate Mortgage Servicing Transfer Disclosure
Loan Estimate
Janie's got an open house scheduled for Sunday, but lets her friend in on Saturday to preview it. It's love at first sight! With the owner out of town, Janie decides to cancel the open house so there won't be any other offers. Her friend makes an offer and it's accepted on Monday. What fiduciary duty or duties has Janie breached?
Loyalty and disclosure
With which type of commercial lease does the tenant pay some or all of the expenses? Gross lease Net lease Percentage lease Sublease
Net lease
When preparing the sales contract, when is it acceptable for a licensee who is not an attorney to offer legal advice to the client? Never When covering the options for terms and contingencies When determining the amount of the purchase offer When discussing the amount of earnest money to place as a down payment
Never
The ______ provides administration and enforcement of federal fair housing laws. Federal Housing Administration Housing and Urban Development Department (HUD) Office of Fair Housing and Equal Opportunity (FHEO) The Federal Housing Finance Agency (FHFA)
Office of Fair Housing and Equal Opportunity (FHEO)
The components that make up a borrower's mortgage payment can best be remembered using which acronym?
PITI
What is a promotional land sale? -A land gift giveaway with purchase of a new home. -A tax free land offering. -Promotion for at least 1 lot of land to be developed. -Promotion for the sale of large tracts of land to be developed (at least 50 lots).
Promotion for the sale of large tracts of land to be developed (at least 50 lots).
Which of the following actions does the secondary mortgage market commonly take? Issues loans to consumers. Purchases loans from lending institutions. Regulates lending institutions. Sets interest rates.
Purchases loans from lending institutions.
What does REO stand for? Real estate office Real estate owned Rental equality ownership Rental equal opportunity
Real estate owned
Bart and Claire are under contract for Claire to buy Bart's house, but her financing fell through. They decide to cancel the contract just as if it never happened. Which termination method does this describe?
Recission
Based on the duty of reasonable skill and care, if clients ask agents for advice in areas outside of an agent's scope of expertise, what should agents do? Give the clients the best advice they can based on personal experience. Refer their clients to a competent professional in that field. Tell the clients they need to do a little research and that they will get back to them shortly. Wing it and then check later to make sure the answers are accurate.
Refer their clients to a competent professional in that field.
In addition to the federal protected classes, what classes did the Pennsylvania Human Relations Act add? Ancestry only Religion only Religious creed and ancestry Sexual orientation only
Religious creed and ancestry
Which of the following is a drawback to leasing commercial space? Credit ratings are not as crucial. Leasing is less affordable. Monthly rent is a tax deduction as a business expense. Rental rates can include annual increases based on market conditions.
Rental rates can include annual increases based on market conditions.
Marvin purchased the right to use a resort unit for two weeks every year, although he doesn't own the property itself. What kind of timeshare is this? Divided timeshare Right-to-use timeshare Timeshare estate Timeshare in perpetuity
Right-to-use timeshare
Which formula calculates net to seller? (Net amount + mortgage or other expenses) / (100% ‒ commission rate) Sales price ÷ (100% - commission rate) Sales price - (100% - commission rate) Sales price x (100% - commission rate)
Sales price x (100% - commission rate)
Tiana has held a Pennsylvania real estate license for two years and works under another individual's supervision. Which term best describes Tiana?
Salesperson
What's the definition of a land contract? Buyers purchase a piece of undeveloped land Land owners divide their land into parcels Property owners lease their land to someone else, who develops the property Sellers provide funds or credit to buyers in order to close the transaction
Sellers provide funds or credit to buyers in order to close the transaction
Marissa, a buyer, asks you what she can do to prepare to buy. What should you tell her?
She should get pre-qualified.
For a deed to be valid, which two elements are required? Habendum clause and habeus corpus clause Signature of the grantee and habendum clause Signature of the grantor and consideration Signatures of the grantee and grantor
Signature of the grantor and consideration
Why would a buyer want to know whether any additions or alterations were made to a property? So the buyer can decide whether a price reduction is in order So the buyer can determine if permits were pulled So the buyer can remove these items prior to closing So the buyer can use the same contractor for additional additions and alterations
So the buyer can determine if permits were pulled
What type of real estate market occurs when both supply and demand are low? Buyer's market Farmer's market Seller's market Stagnant market
Stagnant market
The primary sources of law in the U.S. include case law, administrative law, constitutional law, and __________.
Statutory law
Archie signed a contract to buy Pam's home. The deal eventually closed, but Pam failed to hand over the home's keys to Archie. A week passed, and Archie filed a lawsuit in an attempt to force Pam to give him the keys. This is an example of ______. Accepting liquidated damages Accepting partial performance Suing for damages Suing for specific performance
Suing for specific performance
Which of the following activities occurs before the closing meeting? The buyer and lender close on the mortgage loan commitment. The buyer obtains an insurance binder. The seller and buyer agents close on their cooperative brokerage agreement. The seller is paid the balance of the purchase price.
The buyer obtains an insurance binder.
Aside from price, which of the following is a legitimate reason to counter an offer? One party would prefer a different title company be used. The buyer reserves the right to inspect the property. The closing date is unacceptable to one party. The seller wants to keep the dining room light fixture.
The closing date is unacceptable to one party.
The cost approach to finding an appraised value measures _______.
The cost to acquire land and construct a reproduction
Disclosing which of the following facts would be considered a fair housing violation? The current owner has HIV. The kitchen was remodeled five years ago. The property has been treated for pests. The roof was replaced last year.
The current owner has HIV.
What's a foreclosure?
The forced sale of a property due to the borrower defaulting on the mortgage loan
Which of the following statements about restrictive covenants is true? They are permanent and follow the land forever. They are temporary and have a specific time limit. They may run with the land forever, or they may have a time limit. They must last at least 30 years.
They may run with the land forever, or they may have a time limit.
Can Jeremy, a licensee, receive a referral fee for sending his buyer client to Ajax Title? This is acceptable as long as the fee is less than $500 This is acceptable as long as the fee is paid to the sponsoring broker This is acceptable as long as the fee is reported on the HUD-1 This is a violation of RESPA
This is a violation of RESPA
What's the purpose of the Interstate Land Sales Full Disclosure Act? To limit price increases on subdivisions with more than 100 lots To prevent the fraudulent sale of property across state lines To prohibit out-of-state developers from advertising properties to buyers To require sellers to disclose all defects on all out-of-state properties
To prevent the fraudulent sale of property across state lines
What's the purpose of a suit to quiet title? To add a cloud to a title To have a lien placed on a property To have a title's ownership history deleted To remove or modify clouds on a title
To remove or modify clouds on a title
Which of the following is a reason that wetlands are protected? To be developed at a later date To grow commercial crops To open them to commercial fishing To stabilize soil and help control erosion
To stabilize soil and help control erosion
Carla creates a trust to convey her assets to her children. Her brother, Alvin, is placed in charge of making sure the terms of the trust are carried out. In this example, Carla is the ______. Beneficiary Broker Trustee Trustor
Trustor trustor is person who makes the trust
Increasing wetlands by a minimum of 400 non-tidal acres each year is the goal of what Pennsylvania strategy? +400 Strategy The National Wetland Replacement Strategy The Wetland Recapture Strategy Wetlands Net Gain Strategy
Wetlands Net Gain Strategy
Which of the following describes a deficiency judgment? After borrower and public notice is provided, the property is sold at auction to the highest bidder without court action due to the power of sale clause in the security instrument After borrower default, the lender prepares and records paperwork with the court, the court sets a payment deadline for the borrower, lender is awarded title if the borrower doesn't pay After sufficient notice to the borrower and to the public, the court permits the property be sold at auction to the highest bidder When a property is sold at a foreclosure auction for less than the amount due by the borrower and the lender seeks a judgment for the borrower to pay the difference
When a property is sold at a foreclosure auction for less than the amount due by the borrower and the lender seeks a judgment for the borrower to pay the difference
Which of the following best describes the concept of appreciation? When a property's value increases as a result of capital improvements. When losses are deducted from a property's value for tax purposes. When the value of a property decreases over time. When the value of a property increases over time.
When the value of a property increases over time.
Mary is preparing a purchase offer for her buyer client. It's a pretty standard offer: a little less than list price, with the seller paying a little toward the buyer's closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay? No, Mary is not an attorney and shouldn't prepare contracts. No, Mary should have her client prepare the offer. No, Mary should hire an attorney to prepare the purchase offer. Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney).
Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney).
When a prospective homebuyer isn't represented, what doesn't she have? -An agency agreement -A seller's agreement -Responsibility to pay the seller's commission -The legal right to purchase
an agency agreement
When may informed consent for dual agency be obtained?
before the fact, or as the situation arises
Appraiser Niles uses ______ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison. Bracketing Competition Correlation Substituting
bracketing
A set of guidelines for the ethical conduct of real estate licensees is called a ______.
code of ethics
Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed? Commingling and conversion Commingling only Conversion only Deceptive business practice
commingling and conversion
Which fiduciary duty goes beyond closing? Confidentiality Disclosure Loyalty Obedience
confidentiality
It's that time of year again in real estate where things are really slow and properties just aren't moving. In real estate, this period is referred to as a _______________. Cyclical certainty Downcycle Downturn Slump
downcycle
Assigning a lower-density use zone to an area that previously allowed higher density and that may reduce property values is known as ______. Bulk zoning Density-reduction zoning Downzoning Reduction zoning
downzoning
To determine the net operating income of a property, subtract the total operating expenses from the ______. Effective gross income Potential gross income Scheduled rent Vacancy and collection losses
effective gross income
A defect on a title that can be monetary or physical is called an ______. Agreement Appurtenance Encumbrance Eviction
encumbrance
Which of the following is a responsibility of the State Real Estate Commission in Pennsylvania? Appoint members to the planning board. Establish federal real estate laws. Grant and renew real estate licenses. Review and approve site plans.
grant and renew real estate licenses
The buildings associated with this type of real estate property are outfitted much differently than other types of office buildings because of their unique use. For example, plumbing and electrical are often much more substantial, and there is usually a need for reception areas and examination rooms.
health care
______ are artificial attachments to land that include items such as fencing, buildings, and walkways. Emblements Encroachments Improvements Levies
improvements
Which liens take priority over all other liens?
property tax
Which type of lien is a specific lien? Deceased person's debt lien Income tax lien Judgment lien Real property tax lien
real property tax lien
What type of tenant uses a percentage lease most often? Manufacturing Residential Retail Triple net
residential
The number of properties available describes this factor that influences value. -Demand -Scarcity -Transferability -Utility
scarcity
If Mega Corporation owns real property, chances are it owns it in ______. Common Joint tenancy Severalty Trust
severalty
Elisa and Simone signed an agreement to list Simone's house for sale. After the contract was signed, Simone lost her job, and her father, George, offered to help Simone out by paying Elisa's commission. The buyer's agent, Carl, also reduced his commission by a quarter of one percent to help Simone out. Who is Elisa's client? Carl Carrie George Simone
simone
What protects the buyer before the sale and can reimburse the buyer after the sale if a title issue arises? Homeowners insurance Lien proceeds Special deed Title insurance
title insurance