PA Real Estate Exam Prep with Complete
Solutions
Which of the following describes the term "appreciation"?
A. Kind words expressed to someone about something they did
B. An increase in the value of property
C. An item of value owned by an individual
D. None of the above Correct Answer-B. Appreciation is the increase in the
value of a property due to changes in market conditions, inflation, or other
causes.
When ownership of a mortgage is transferred from one company or individual to
another, it is called
A. an assumption
B. an assignment
C. an assessment
D. all of the above Correct Answer-B. When ownership of a mortgage is
transferred (assigned) from one company or individual to another, it is called an
assignment.
A mortgage loan which requires the remaining balance be paid at a specific
point in time is called a/an
A. balloon mortgage
, PA Real Estate Exam Prep with Complete
Solutions
B. early due mortgage
C. mortgage of convenience
D. promissory note Correct Answer-A. A mortgage loan that requires the
remaining principal balance be paid at a specific point in time is a balloon
mortgage.
The following reason accounts for why bridge loans are not used much anymore:
A. More second mortgage lenders now will lend at a high loan to value
B. Sellers would rather accept offers from Buyers who have already sold their
property
C. Neither A or B
D. Both A and B Correct Answer-D. Bridge loans are not used much anymore
because more second mortgage lenders now will lend at a high loan to value
and sellers often prefer to accept offers from buyers who have already sold their
property.
A title which is free of liens or legal questions as to ownership of the property is
called a __________ title.
A. good
B. cloudy
, PA Real Estate Exam Prep with Complete
Solutions
C. clear
D. free Correct Answer-Answer: C. A title free of liens or legal questions as to
ownership of the property is called a clear title. It is clear because there can be
no challenges made to its legality.
What is the collateral in a home loan?
A. The property itself
B. A person's good name
C. The amount of savings a person has
D. The current automobile the person owns Correct Answer-Answer: A. The
property itself is the collateral, and the borrower risks losing it if he does not
repay according to the terms of the mortgage or deed of trust.
The adjustment date on an adjustable-rate mortgage is
A. the date the interest rate changes
B. the date the stock market goes up
C. 30 days from the date the mortgage was taken out
D. all of the above Correct Answer-A. The adjustment date is the date the
interest rate changes (adjusts).
, PA Real Estate Exam Prep with Complete
Solutions
What is the deposit made by a potential buyer to show he is serious about
buying a house called?
A. Serious money deposit
B. Earnest money deposit
C. "Nothing ventured, nothing gained" deposit
D. Down payment Correct Answer-B. The deposit made by a potential buyer
to show they are in earnest about purchasing a house is called an earnest
money deposit.
A right-of-way which gives persons other than the owner access to or over a
property is known as an
A. easement
B. ingress
C. egress
D. none of the above Correct Answer-A. An easement is a right-of-way to
persons other than the owner and gives them legal access.
Which best describes a "subdivision"?
A. Houses in the same neighborhood similar in style and size
B. A housing development created by dividing a tract of land into individual lots
Solutions
Which of the following describes the term "appreciation"?
A. Kind words expressed to someone about something they did
B. An increase in the value of property
C. An item of value owned by an individual
D. None of the above Correct Answer-B. Appreciation is the increase in the
value of a property due to changes in market conditions, inflation, or other
causes.
When ownership of a mortgage is transferred from one company or individual to
another, it is called
A. an assumption
B. an assignment
C. an assessment
D. all of the above Correct Answer-B. When ownership of a mortgage is
transferred (assigned) from one company or individual to another, it is called an
assignment.
A mortgage loan which requires the remaining balance be paid at a specific
point in time is called a/an
A. balloon mortgage
, PA Real Estate Exam Prep with Complete
Solutions
B. early due mortgage
C. mortgage of convenience
D. promissory note Correct Answer-A. A mortgage loan that requires the
remaining principal balance be paid at a specific point in time is a balloon
mortgage.
The following reason accounts for why bridge loans are not used much anymore:
A. More second mortgage lenders now will lend at a high loan to value
B. Sellers would rather accept offers from Buyers who have already sold their
property
C. Neither A or B
D. Both A and B Correct Answer-D. Bridge loans are not used much anymore
because more second mortgage lenders now will lend at a high loan to value
and sellers often prefer to accept offers from buyers who have already sold their
property.
A title which is free of liens or legal questions as to ownership of the property is
called a __________ title.
A. good
B. cloudy
, PA Real Estate Exam Prep with Complete
Solutions
C. clear
D. free Correct Answer-Answer: C. A title free of liens or legal questions as to
ownership of the property is called a clear title. It is clear because there can be
no challenges made to its legality.
What is the collateral in a home loan?
A. The property itself
B. A person's good name
C. The amount of savings a person has
D. The current automobile the person owns Correct Answer-Answer: A. The
property itself is the collateral, and the borrower risks losing it if he does not
repay according to the terms of the mortgage or deed of trust.
The adjustment date on an adjustable-rate mortgage is
A. the date the interest rate changes
B. the date the stock market goes up
C. 30 days from the date the mortgage was taken out
D. all of the above Correct Answer-A. The adjustment date is the date the
interest rate changes (adjusts).
, PA Real Estate Exam Prep with Complete
Solutions
What is the deposit made by a potential buyer to show he is serious about
buying a house called?
A. Serious money deposit
B. Earnest money deposit
C. "Nothing ventured, nothing gained" deposit
D. Down payment Correct Answer-B. The deposit made by a potential buyer
to show they are in earnest about purchasing a house is called an earnest
money deposit.
A right-of-way which gives persons other than the owner access to or over a
property is known as an
A. easement
B. ingress
C. egress
D. none of the above Correct Answer-A. An easement is a right-of-way to
persons other than the owner and gives them legal access.
Which best describes a "subdivision"?
A. Houses in the same neighborhood similar in style and size
B. A housing development created by dividing a tract of land into individual lots
