CE- FINAL #2
Dual agent Barbara Park can only disclose Seller Carrie's reason for moving if: A. Buyer Blake directly asks for it. B. Carrie gives her written permission to do so. C. Carrie tells her it's okay to do so. D. She thinks it'll help Carrie's bargaining position.
B. Carrie gives her written permission to do so.
In the conveyance of real property after death, what trumps any terms specified in the deceased person's will? A. Heirs' wishes B. Intestate C. Nothing D. Operation of law
D. Operation of law
Homeowners can take several actions related to pest infestations, but which of the following actions should be left to licensed pest management professionals? A. Applying pesticides B. Installing a vapor barrier C. Looking for signs of an infestation D. Removing moisture from the home
A. Applying pesticides Applying pesticides is an action best left to professionals.
What's a certified opinion or estimate of value of a particular property as of a particular date? A. Appraisal B. Assessment C. Evaluation D. Inspection
A. Appraisal
A period of stagnation in real estate when no one is buying and no one is selling is known as _____________________. A. A downcycle B. A market slump C. An economic downturn D. A real bummer
A. A downcycle
Which stage of the property ownership life cycle can be affected by income tax issues? A. Acquisition, ownership, and reversion can all be affected by income tax issues. B. Only acquisition C. Only ownership D. Only reversion
A. Acquisition, ownership, and reversion can all be affected by income tax issues.
Which of these items should real estate professionals help first-time buyers and buyers who have experienced recent credit issues to understand? A. Appropriate financing B. High-risk loan products C. Rental options D. Rental options and high-risk loan products
A. Appropriate financing First-time home buyers and buyers who've experienced recent credit issues may need help understanding appropriate financing options, as well as the underwriting process.
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? A. Ask the seller to make the repairs needed, or ask for a credit to cover the cost of those repairs. B. Because the seller lied on the disclosure forms, the purchase contract is invalidated, so Penelope must make a new offer. C. Complete the transaction, then sue the seller for fraud. D. Reduce the amount of her offer.
A. Ask the seller to make the repairs needed, or ask for a credit to cover the cost of those repairs.
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 ______. A. Buyer's agent B. Dual agent C. Seller's agent D. Transaction licensee
A. Buyer's agent
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? A. Commingling and conversion B. Commingling only C. Conversion only D. Deceptive business practice
A. Commingling and conversion
Thanks to this act, sites containing hazardous substances are identified, and responsible parties must clean them up. A. Comprehensive Environmental Response Compensation and Liability Act B. Department of Housing and Urban Development C. National Environmental Policy Act D. State Department of Environmental Quality
A. Comprehensive Environmental Response Compensation and Liability Act
Jamie enters an agreement to buy Yolanda's home. Per the agreement, Jamie promises to provide a $5,000 earnest money deposit, whereas Yolanda promises to sell her home to Jamie. These promises represent forms of ________, which are required to make the contract valid. A. Consideration B. Legal competency C. Mutual mistake D. Undue influence
A. Consideration
Switches that are warm to the touch, damaged panels, and lights that dim or flicker when other appliances are in use can be signs of what sort of problem? A. Electrical B. Foundation C. Heating/cooling D. Plumbing
A. Electrical
Lenders require that borrowers purchase and maintain adequate _____, which is usually bundled into their monthly PITI payment. A. Hazard and flood insurance B. Legal counsel C. Personal property insurance D. Pest and hazard inspections
A. Hazard and flood insurance Lenders require that borrowers purchase and maintain adequate hazard (homeowners) insurance and flood insurance (if the property is in a floodplain).
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? A. It lacks a lawful objective. B. It needs to be oral rather than written. C. It represents a mutual mistake. D. It was made under duress.
A. It lacks a lawful objective.
In real estate contracts, which are required: legal descriptions or street addresses? A. Legal descriptions are required, because they provide less ambiguous and more complete descriptions of properties than street addresses provide. B. Legal descriptions are required, because they're more ambiguous than street addresses. C. Street addresses are required, because they provide clearer, more unambiguous information than legal descriptions provide. D. Street addresses are required, because they're easier to find on a map and can be easily identified by anyone.
A. Legal descriptions are required, because they provide less ambiguous and more complete descriptions of properties than street addresses provide.
The lender will require flood insurance if the home is ______. A. Located in a flood plain B. Located in a valley C. More than 100 years old D. New construction
A. Located in a flood plain
Which law requires the EPA to establish air quality standards? A. The Clean Air Act of 1970 B. The Clean Air Act of 2010 C. The Environmental Quality Act of 1970 D. The EPA Air Quality Standards Act
A. The Clean Air Act of 1970
You represent a buyer of a $1 million property. The seller's agent, through the seller, offers a 2.5% cooperative agent commission. Who's your client? A. The buyer B. The seller C. The seller's agent D. The seller's agent's broker
A. The buyer
Disclosing which of the following facts would be considered a fair housing violation? A. The current owner has HIV. B. The kitchen was remodeled five years ago. C. The property has been treated for pests. D. The roof was replaced last year.
A. The current owner has HIV.
What's a covenant between a lessor and lessee? A. An addendum to a contract added after it's signed B. An agreement or promise made between the parties C. A provision for which neither party to a contract is willing to compromise D. A rent escalation
B. An agreement or promise made between the parties
Which of the following provides everything a lender needs to know in order to value the property used as collateral for a loan? A. Apportionment B. Appraisal C. Comparative market analysis D. Competitive market analysis
B. Appraisal
Which of the following is a prohibited activity under Pennsylvania law? A. Disclosing your client's confidential information with the client's permission B. Engaging in undisclosed dual agency C. Extending a representation agreement with the client's written permission D. Refusing to perform an independent inspection of a property
B. Engaging in undisclosed dual agency
Which agency enforces federal fair housing laws? A. FHA B. FHEO C. NFHA D. NHA
B. FHEO
Bob wants an open listing agreement. Why might this not be in Bob's best interest? A. He'll have to pay multiple real estate commissions. B. He won't get full representation from any one licensee. C. It presents an inherent conflict of interest. D. It prevents him from selling the property himself and not paying a commission.
B. He won't get full representation from any one licensee.
Lacey is preparing an offer for her buyer clients, and it's time to enter the amount of earnest money they're going to offer. Which of the following statements is true regarding what earnest money the buyers should offer? A. Lacey knows the amount that will be acceptable to the seller, so she should determine the amount of the earnest money. B. Lacey should allow her clients to determine the amount of the earnest money offered. C. The earnest money amount is predetermined based on the sales price. D. The sellers will determine the amount of earnest money they consider indicative of a serious offer.
B. Lacey should allow her clients to determine the amount of the earnest money offered.
What instruments are commonly used to secure the purchase of real property? A. Deed of trust and promissory note B. Mortgage and deed of trust C. Mortgage and lease D. Mortgage and promissory note
B. Mortgage and deed of trust Mortgages are most commonly used in the U.S. Some areas use a deed of trust as a security instrument. The promissory note is a promise to repay, but isn't a security instrument.
You are licensed in a state other than PA. One of your clients has decided on a home in PA, can you still practice real estate in PA? A. No, but you can still claim to do business there as long as you keep it a secret. B. No. You need a PA real estate license to practice in PA. C. Yes of course! Once licensed you can practice real estate in any state. D. Yes, provided your state of licensure has a reciprocal agreement with PA.
B. No. You need a PA real estate license to practice in PA. Even if the state has a reciprocal license agreement with PA you must still apply for and be granted the PA license.
Why is it important for a buyer to know if an underground storage tank is present on a property? A. Buyers don't need to know. B. Older tanks may leak and contaminate the ground. C. The buyer may want to use the tank. D. The buyer will need to check if the tank is correctly sized.
B. Older tanks may leak and contaminate the ground.
_______ can be defined as everything that's not real property. A. Land property B. Personal property C. Private property D. Real estate
B. Personal property
Which of the following activities occurs before the closing meeting? A. The buyer and lender close on the mortgage loan commitment. B. The buyer obtains an insurance binder. C. The seller and buyer agents close on their cooperative brokerage agreement. D. The seller is paid the balance of the purchase price.
B. The buyer obtains an insurance binder.
Lizzy rents an apartment in a building that's being converted to condominiums. By law, the owner of the building must give Lizzy ________. A. 10 days' notice before evicting her B. The option to buy her unit or continue as a tenant for a specified period of time C. The option to buy the unit at a reduced price D. The option to continue renting the unit at a reduced rate
B. The option to buy her unit or continue as a tenant for a specified period of time The option to continue renting the unit at a reduced rate Pennsylvania law requires that current tenants be given the option to buy their units or to continue as tenants for a specified period of time.
What's the purpose of the Interstate Land Sales Full Disclosure Act? A. To limit price increases on subdivisions with more than 100 lots B. To prevent the fraudulent sale of property across state lines C. To prohibit out-of-state developers from advertising properties to buyers D. To require sellers to disclose all defects on all out-of-state properties
B. To prevent the fraudulent sale of property across state lines
When does express agency exist? A. When agency is implied B. When a written or spoken agreement is in place C. When the parties act as if they are in an agency relationship D. When the parties are in a hurry
B. When a written or spoken agreement is in place
When you refuse to screen prospective buyers based on their ethnicity, your client, Matt, "fires" you as his agent, and you agree to his decision to part ways. Do you still owe this guy any fiduciary duties? A. No, thank goodness! And good riddance to him! B. Yes, you still owe him the duty of confidentiality. C. Yes, you still owe him the duty of reasonable skill and care for another two months. D. Yes. You still technically owe him all the fiduciary duties for another 10 business days.
B. Yes, you still owe him the duty of confidentiality.
Which of these is an example of illegal market allocation? A. Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes. B. Christopher's brokerage firm decides to focus on listings in the $350,000 to $475,000 price range. C. Lamborn Realty Group and Your Choice Real Estate each discuss with their licensees where the most lucrative deals can be found. D. Three agents in Jonathan's firm agree to focus on the specific neighborhoods in which they live so they're more knowledgeable about listings in those areas.
Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes. Illegal market allocation involves an implied, oral, or written agreement between competing firms to allocate markets or customers.
A home sells for $225,000. Per the listing agreement, the total commission is 7% of the sales price. After half of that goes to the buyer's agent's managing broker Devin, the other half of it goes to Sheila, the buyer's agent. But the seller's agent, Kiko, also has an agreement with her brokerage for a 70/30 split, with the "70" going to her. How much is Kiko's commission? A. $15,750 B. $2,362.50 C. $5,512.50 D. $7,875
C. $5,512.50
How large is an acre? A. 10,000 square meters B. 43,560 feet C. 43,560 square feet D. 5,480 square feet
C. 43,560 square feet
What is a company checklist? A. A list of all the employees in a company B. A list of all the positions within a company C. A list of how procedures are completed within a company D. A list of software programs a company is allowed to use
C. A list of how procedures are completed within a company
You're obligated to preserve all the confidential information you receive from a seller client. This obligation ________. A. Can be ignored if you're sharing confidential information with someone other than the buyer B. Ceases once the seller's property is sold C. Continues even after your fiduciary relationship with the client ends. D. Ends 30 days after you've received the confidential information
C. Continues even after your fiduciary relationship with the client ends.
Which of the following occurs when a property owner dies without having a will in place, and no heirs or creditors can be found? A. Eminent domain B. Encroachment C. Escheat D. Estoppel
C. Escheat
The State Real Estate Commission holds regular meetings and at least one public meeting a year in Pittsburgh, Philadelphia, and ______. A. Erie B. Gettysburg C. Harrisburg D. Scranton
C. Harrisburg
Which scam, as described by the FBI, involves an appraiser working secretly with a borrower and providing a fraudulent appraisal report to the lender? A. Equity skimming B. Identity theft C. Inflated appraisal D. Straw buyer
C. Inflated appraisal
How do you decide which party you represent in a transaction? A. It's based on compensation. If the seller is paying you, you work for the seller. B. It's based on priority. Seller's duties come before buyer's duties. C. It's based on the express agreement between you and the party whom you represent. D. It's based on the implied agreement between you and the party whom you represent.
C. It's based on the express agreement between you and the party whom you represent.
Which of these is an example of a lot and block description? A. 123 Roanoke Street Any Town, ST 98765 B. "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." C. Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds D. S ½ SE ¼ NW ¼ Section 2 ...
C. Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds
Personal interest most often conflicts with what fiduciary duty? A. Accounting B. Confidentiality C. Loyalty D. Reasonable skill and care
C. Loyalty
An appraiser is most likely to use the cost approach for which of the following properties? A. Condominium built in the 1990s B. Cooperative C. Movie theater D. Single-family residence built in the 1950s
C. Movie theater The cost approach is not used in condo or coops and is not used as often with older properties, because there is difficulty in accurately estimating depreciation. Out of the options, the movie theater appraisal would most likely use the cost approach.
When people are treated differently because they were born in another country or are from a specific part of the world, this is discrimination based on _______. A. Color B. Familial status C. National origin D. Race
C. National origin
A Pennsylvania salesperson is changing his broker affiliation. When does he need to notify the commission? A. At least 10 days prior to the change B. At least 30 days prior to the change C. No later than 10 days after the change D. No later than 30 days after the change
C. No later than 10 days after the change
Which of the following is one of your duties as a listing agent? A. Disclose material facts to the seller only. B. Hold confidential all facts from the buyer, even material facts. C. Promote your client's interests throughout the entire transaction. D. Secure a profit for your client.
C. Promote your client's interests throughout the entire transaction. You must always put the client's interests ahead of your own, whether you represent the seller or the buyer.
What's the acronym for the legislation that eliminates illegal referral fees among settlement service providers? A. ARRA B. ECOA C. RESPA D. TILA
C. RESPA
Land, plus all things permanently attached to it naturally or artificially, is ______. A. Interest B. Private property C. Real estate D. Real property
C. Real estate
Per the Real Estate Settlement Procedures Act (RESPA), licensees may not receive or give referral fees or finder fees (or anything of value) from/to whom? A. Licensees in other states B. Other licensees C. Settlement service providers D. Their brokers
C. Settlement service providers Per the Real Estate Settlement Procedures Act (RESPA), licensees may not receive or give referral fees or finder fees (or anything of value) from/to mortgage brokers, title reps, or any other settlement service provider.
If Mega Corporation owns real property, chances are it owns it in ______. A. Common B. Joint tenancy C. Severalty D. Trust
C. Severalty
Susan is a broker in Pennsylvania. Kareem is an associated licensee representing Paula as a buyer's agent. Paula has provided an earnest money check, which Susan is depositing into a trust account. Who must be listed as trustee on this account? A. Kareem B. Paula C. Susan D. Susan and Paula
C. Susan The broker must be named as trustee of the account and have the ability to withdraw funds from it immediately.
The ease with which the property can be conveyed to another describes which factor that influences value? A. Demand B. Scarcity C. Transferability D. Utility
C. Transferability
What type of agency exists because of the actions and behavior of the parties? A. Action agency B. Behavioral agency C. Express agency D. Implied agency
D. Implied agency Implied agency is created as a result of the actions and behaviors of the parties. For instance, a buyer may come to rely on your advice when shopping for a new home. Over time, implied agency exists.
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? A. Accounting B. Accounting and disclosure C. Disclosure D. Loyalty and disclosure
D. Loyalty and disclosure
Carolyn represents John in the sale of his home. Which listing agreement clause would authorize and obligate her to distribute the listing to other brokers? A. Broadcast clause B. Broker extension clause C. Marketability clause D. Multiple listing clause
D. Multiple listing clause
In terms of encumbrances, what's a license? A. Giving another interest or ownership in land that is not theirs B. Permission to do something on another's land while also possessing an interest or ownership in the land C. Permission to do something on one's own land D. Permission without possession, interest, or ownership
D. Permission without possession, interest, or ownership
Which choice correctly identifies the seven protected classes according to the Fair Housing Act? A. Military service, color, national origin, religion, sex, familial status, and disability B. Race, color, age, religion, sex, military service, and disability C. Race, color, national origin, religion, sex, familial status, and criminal history D. Race, color, national origin, religion, sex, familial status, and disability
D. Race, color, national origin, religion, sex, familial status, and disability
Which of the following license holders in Pennsylvania is exempt from fulfilling the continuing education requirements as part of the license renewal process? A. Real estate associate broker B. Real estate broker C. Real estate salesperson D. Reciprocal license holder
D. Reciprocal license holder
When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle of value is this? A. Anticipation B. Contribution C. Progression D. Regression
D. Regression
When an appraiser relies on comparable properties to estimate the adjusted market price of a property, the appraiser is using the _______ approach. A. Cost B. Income C. Market value D. Sales comparison
D. Sales comparison
Agatha helped her client Rufus complete the form that documents Rufus's purchase offer to the seller for the property he'd like to buy. What is this form? A. Buyer representation agreement B. Listing agreement C. Promissory note D. Sales contract
D. Sales contract
What piece of regulation or regulatory authority requires all levels of government to perform an environmental assessment any time any action is taken that may impact the environment? A. CERCLA B. Environmental Conservation Law C. Environmental Protection Agency D. State Environmental Quality Review Act of 1976
D. State Environmental Quality Review Act of 1976 This act requires multi-level assessment, including by local planning boards.
With which type of government power can a lien be placed on a property, giving the government a claim to the property? A. Eminent domain B. Escheat C. Police power D. Taxation
D. Taxation Taxation is a government power that, if unpaid, allows the government to place a lien on the property.
Which of these trusts is created according to the terms of the will of a deceased person? A. Juvenile B. Living C. Tertiary D. Testamentary
D. Testamentary
Which of the following best describes the concept of appreciation? A. When a property's value increases as a result of capital improvements. B. When losses are deducted from a property's value for tax purposes. C. When the value of a property decreases over time. D. When the value of a property increases over time.
D. When the value of a property increases over time.
Which of these may be covered by a builder-backed home warranty? A. Custom exterior paint B. Owner-installed landscaping C. Ugly carpeting D. Workmanship
D. Workmanship Warranties backed by builders typically cover workmanship and materials related to specific components of the home.
