PENNSYLVANIA Salesperson Exam Prep exam with complete questions and answers

PENNSYLVANIA Salesperson Exam Prep exam with complete questions and answers 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 - 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 - 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 B. early due mortgage C. mortgage of convenience CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM D. promissory note - 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 - 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 C. clear D. free - 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 - 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. CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM 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 - answer A. The adjustment date is the date the interest rate changes (adjusts). 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 - 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. CLASSROOM 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 - 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 CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM C. A development which is "substandard" CLASSROOM D. None of the above - answer B. A subdivision consists of individual lots created from a larger tract (subdivided) and are offered for sale or lease. When someone contributes to the construction or rehabilitation of a property with labor or services rather than cash, that contribution is called A. a personal contribution B. sweat equity C. a big help to the contractors D. toil and labor - answer B. Sweat equity is the contribution to the construction of or rehabilitation of a property in the form of labor or services rather than cash. A two-step mortgage is defined as A. an adjustable rate mortgage with one interest rate for the f irst five or seven years and a different rate for the remainder of the term. B. a mortgage which is both adjustable and fixed C. a mortgage which is named after a dance step D. all of the above - answer A. A two-step mortgage starts out with one rate for the first five or seven years and then changes to a different rate for the remainder of the term of the mortgage amortization. A legal document evidencing a person's right to or ownership of a property is called a : A. quitclaim deed B. title C. yearly lease D. accurate appraisal - answer B. A title is a legal document evidencing a person's right to or ownership of a property. If you were buying a house that included furnishings, you would receive a written document transferring title to the personal property. This document is called a/an A. title B. deed C. bill of sale D. evidence of payment - answer C. A bill of sale is a written document that transfers personal property from one owner to another. An oral or written agreement that is binding in a court of law is called a: A. gentlemen's agreement B. contract C. business deal D. promissory note - answer B. A contract can be oral or written and is binding in a court of law. CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM The part of the purchase price of a property that the buyer pays in cash and does not finance with the mortgage is called the A. deposit B. second mortgage C. down payment D. deed of trust - answer C. The down payment is the amount paid down in cash as the initial upfront portion of the total amount due. It is usually given in cash at the time of finalizing the transaction. A female named in a will to administer an estate is called an A. executor B. executrix C. individual representative D. able inheritor - answer B. The female executor named in a will to administer an estate is called an executrix. The greatest possible interest a person can have in real estate is called A. fee complex B. fee simple C. no additional fees D. ownership - answer B. The greatest possible interest a person can have in real estate is called fee simple. Required for properties located in federally designated flood areas, this type of insurance compensates for physical property damage resulting from flooding. It is called A. water damage insurance B. hurricane insurance C. there's no such thing D. flood insurance - answer D. Flood insurance is required in federally designated flood areas and does compensate for physical property damage resulting from flooding. The following is true of a government loan: A. It is guaranteed by the Department of Veterans Affairs (VA) B. It is guaranteed by the Rural Housing Service (RHS) C. It is insured by the Federal Housing Administration (FHA) D. All of the above - answer Answer: D. Government loans are either insured by FHA, guaranteed by VA or RHS. Mortgages that are not government loans are called conventional loans. The person conveying an interest in real property is called A. the buyer B. the grantee C. the grantor D. the mortgagor - answer C. The grantor is the person conveying an interest in real property to another part