Real Estate Practice Exam Questions and Answers 2024

1. Brokerage definition... - the business practice of bringing together the parties in a practice. 2. What are two examples of special use property? - schools and cemetary 3. What is an example of functional obsolescence? - bathroom 4. Principal definition... - a consumer of real estate services who has entered into an agency relationship with a broker or another licensee employed by a broker. 5. Capitalization definition... - the process of determining the present value of a property from it's future income. 6. What is the salespersons obligation to a buyer under single agency listing? - Inform the buyer 8. All are examples of real estate except... - factories 9. What is homeowners insurance? - Insurance to protect owners from fires and other etc. 10. Special agent definition... - the type of agency in which the principal authorizes the agent to represent the agent in "one specific transaction or business activity" 11. Which is not used to determine cost approach to estimate value? -Quantity Survey Method -Unit-in-Place Method -Square Foot Method -Gross Rent Multiplier Method - Gross Rent Multiplier Method What is steering? - the unlawful act of keeping a buyer away from certain communities or guiding them to purchase in certain communities. 15. Entitlement to commission when transaction is not consummated. - Except when listing broker does not disclose information 16. Can a salesperson give legal advice? - No, not unless they are an attorney. 17. Who determines the commission in a listing contract? - An agreement between the owner and broker 19. All are typical duties of a property manager with the exception of... - Investing profits 20. Transfer tax is typically paid by for by whom? - Buyer and seller 21. Blockbusting definition... - An illegal real estate practice caused by inciting fear and panic selling by suggesting that persons of minority background are or may be moving into an area or that the majority of residents are moving out of an area. 23. Special agency listing definition... - n/a 25. Net listing definition... - a type of listing in which a seller desires to sell real property and receive a guaranteed amount of money for the sale, so that the broker's commission is any sale price amount of money over and above the guaranteed price to the seller. 26. The main factor a property manager should use to evaluate a prospective tenant is - can they make monthly rent payments on time. 27. All are examples of single agency disclosures with the exception of - revealing the owner will except less. 30. What is the most reliable method of appraisal for residential real estate? - Sales comparison approach 31. Assemblage definition... - consolidating two separate lots into one. 32. What would not be a depreciation of value? - Unimproved land 33. What has the greatest effect on real estate value? - Demand of people and location 34. What rules require fair housing laws to be in a listing contract? - PA Human Relations Act 40. Typically who pays for title insurance? - Buyer 44. What is the transfer tax charged by the state of PA? - 1% of the sales price 45. What should you do about material defect disclosures? - inform the buyer and seller 48. What is private mortgage insurance? - It protects the lender if their is default 49. What is the first step in the appraisal process? - Indicate objective of appraisal 50. What is an example of external depreciation? - Nearby property that suffers from lack of maintenance and is negatively affecting the sellers property.