RE PA REAL ESTATE – QUESTIONS AND ANSWERS | VERIFIED AND WELL
DETAILED ANSWERS | PLUS RATIONALES | GUARANTEED PASS | LATEST EXAM
UPDATE
Core Domains
Property Ownership and Estates
Land Use Controls and Regulations
Valuation and Market Analysis
Financing and Settlement Procedures
Agency Relationships and Contracts
Real Estate Practice and Special Disclosures
Ethics, Fair Housing, and Civil Rights
Real Estate Mathematics and Calculations
Introduction
This comprehensive assessment is designed to thoroughly evaluate a candidate's
readiness for professional real estate practice, measuring essential competencies required
for licensure and competent fieldwork. The exam assesses mastery of foundational
property theory, advanced agency principles, regulatory compliance, contractual
obligations, and ethical standards governing the industry. Featuring a rigorous combination
of direct multiple-choice inquiries and complex scenario-based problems, the curriculum
,emphasizes practical application, critical thinking, and sound professional decision-making.
Candidates are tested on their ability to navigate real-world transactions, interpret legal
documents, and protect consumer interests in diverse market environments.
Section One: Questions 1–100
Question 1
A parcel of real estate is sold, and the closing takes place on June 15. The annual property
taxes of $2,400 for the current calendar year have not yet been paid. Using a 360-day year
(30 days per month) and calculating through the day of closing, how will the taxes appear
on the closing statement?
A. Debit seller $1,100; Credit buyer $1,100
B. Debit buyer $1,100; Credit seller $1,100
C. Debit seller $1,300; Credit buyer $1,300
D. Debit buyer $1,300; Credit seller $1,300
🟢 A. Debit seller $1,100; Credit buyer $1,100
🔴 Explanation: The seller owns the property from January 1 through June 15, which
totals 5 months and 15 days (165 days). Daily tax is $2,400 divided by 360 days equals
$6.6667 per day. Multiplying $6.6667 by 165 days equals $1,100. Because the seller owes
this portion but the buyer will pay the full annual bill later, the seller must be debited and
the buyer credited for the seller's share.
Question 2
,Which of the following best describes an estate for years?
A. A tenancy that automatically renews on a month-to-month basis unless proper notice is
given
B. A leasehold estate with a specific starting and ending date
C. An estate held by a person whose rights to occupancy have expired
D. A life estate measured by the life of a person other than the life tenant
B. A leasehold estate with a specific starting and ending date
🔴 Explanation: An estate for years is a leasehold interest that continues for a definite,
specified period of time, whether that is years, months, weeks, or even days. It
automatically terminates upon the expiration date without requiring notice.
Question 3
A homeowner lists their property with a broker. The broker advertises the property and
brings in a ready, willing, and able buyer who makes a full-price offer that meets all terms
of the listing agreement. The seller abruptly decides not to sell. Under a standard
exclusive-right-to-sell listing agreement, what is the broker's legal position?
A. The broker is entitled to the full commission because they performed according to the
agreement
B. The broker is only entitled to reimbursement for direct marketing and advertising
expenses
C. The broker has no legal recourse because the transfer of real estate never actually
, closed
D. The broker must split the forfeited earnest money deposit equally with the seller
🟢 A. The broker is entitled to the full commission because they performed according to
the agreement
🔴 Explanation: Under an exclusive-right-to-sell listing agreement, a broker earns their
commission as soon as they produce a ready, willing, and able buyer on terms acceptable
to the seller. If the seller breaches the contract by refusing to complete the sale, the
broker's commission is still legally due and payable.
Question 4
An appraiser using the cost approach to value a twenty-year-old commercial building
would most likely determine accrued depreciation by which of the following methods?
A. Capitalization rate analysis of comparable rental properties
B. Breakdown method, economic age-life method, or market extraction method
C. Gross rent multiplier comparison against recently sold retail spaces
D. Historical cost indexing adjusted strictly for local consumer price indices
🟢 B. Breakdown method, economic age-life method, or market extraction method
🔴 Explanation: The cost approach measures the replacement or reproduction cost of
improvements and subtracts accrued depreciation, which is categorized into physical
deterioration, functional obsolescence, and external obsolescence. Appraisers calculate
this using methods such as the economic age-life method, breakdown method, or market
extraction.
DETAILED ANSWERS | PLUS RATIONALES | GUARANTEED PASS | LATEST EXAM
UPDATE
Core Domains
Property Ownership and Estates
Land Use Controls and Regulations
Valuation and Market Analysis
Financing and Settlement Procedures
Agency Relationships and Contracts
Real Estate Practice and Special Disclosures
Ethics, Fair Housing, and Civil Rights
Real Estate Mathematics and Calculations
Introduction
This comprehensive assessment is designed to thoroughly evaluate a candidate's
readiness for professional real estate practice, measuring essential competencies required
for licensure and competent fieldwork. The exam assesses mastery of foundational
property theory, advanced agency principles, regulatory compliance, contractual
obligations, and ethical standards governing the industry. Featuring a rigorous combination
of direct multiple-choice inquiries and complex scenario-based problems, the curriculum
,emphasizes practical application, critical thinking, and sound professional decision-making.
Candidates are tested on their ability to navigate real-world transactions, interpret legal
documents, and protect consumer interests in diverse market environments.
Section One: Questions 1–100
Question 1
A parcel of real estate is sold, and the closing takes place on June 15. The annual property
taxes of $2,400 for the current calendar year have not yet been paid. Using a 360-day year
(30 days per month) and calculating through the day of closing, how will the taxes appear
on the closing statement?
A. Debit seller $1,100; Credit buyer $1,100
B. Debit buyer $1,100; Credit seller $1,100
C. Debit seller $1,300; Credit buyer $1,300
D. Debit buyer $1,300; Credit seller $1,300
🟢 A. Debit seller $1,100; Credit buyer $1,100
🔴 Explanation: The seller owns the property from January 1 through June 15, which
totals 5 months and 15 days (165 days). Daily tax is $2,400 divided by 360 days equals
$6.6667 per day. Multiplying $6.6667 by 165 days equals $1,100. Because the seller owes
this portion but the buyer will pay the full annual bill later, the seller must be debited and
the buyer credited for the seller's share.
Question 2
,Which of the following best describes an estate for years?
A. A tenancy that automatically renews on a month-to-month basis unless proper notice is
given
B. A leasehold estate with a specific starting and ending date
C. An estate held by a person whose rights to occupancy have expired
D. A life estate measured by the life of a person other than the life tenant
B. A leasehold estate with a specific starting and ending date
🔴 Explanation: An estate for years is a leasehold interest that continues for a definite,
specified period of time, whether that is years, months, weeks, or even days. It
automatically terminates upon the expiration date without requiring notice.
Question 3
A homeowner lists their property with a broker. The broker advertises the property and
brings in a ready, willing, and able buyer who makes a full-price offer that meets all terms
of the listing agreement. The seller abruptly decides not to sell. Under a standard
exclusive-right-to-sell listing agreement, what is the broker's legal position?
A. The broker is entitled to the full commission because they performed according to the
agreement
B. The broker is only entitled to reimbursement for direct marketing and advertising
expenses
C. The broker has no legal recourse because the transfer of real estate never actually
, closed
D. The broker must split the forfeited earnest money deposit equally with the seller
🟢 A. The broker is entitled to the full commission because they performed according to
the agreement
🔴 Explanation: Under an exclusive-right-to-sell listing agreement, a broker earns their
commission as soon as they produce a ready, willing, and able buyer on terms acceptable
to the seller. If the seller breaches the contract by refusing to complete the sale, the
broker's commission is still legally due and payable.
Question 4
An appraiser using the cost approach to value a twenty-year-old commercial building
would most likely determine accrued depreciation by which of the following methods?
A. Capitalization rate analysis of comparable rental properties
B. Breakdown method, economic age-life method, or market extraction method
C. Gross rent multiplier comparison against recently sold retail spaces
D. Historical cost indexing adjusted strictly for local consumer price indices
🟢 B. Breakdown method, economic age-life method, or market extraction method
🔴 Explanation: The cost approach measures the replacement or reproduction cost of
improvements and subtracts accrued depreciation, which is categorized into physical
deterioration, functional obsolescence, and external obsolescence. Appraisers calculate
this using methods such as the economic age-life method, breakdown method, or market
extraction.
