Real Estate Practice Exam Questions
1. Brokerage definition... - ANSthe business practice of bringing together the parties in a
practice.
2. What are two examples of special use property? - ANSschools and cemetary
3. What is an example of functional obsolescence? - ANSbathroom
4. Principal definition... - ANSa 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... - ANSthe 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? - ANSInform
the buyer
8. All are examples of real estate except... - ANSfactories
9. What is homeowners insurance? - ANSInsurance to protect owners from fires and other
etc.
10. Special agent definition... - ANSthe 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 - ANSGross Rent Multiplier Method
What is steering? - ANSthe 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. - ANSExcept when
listing broker does not disclose information
16. Can a salesperson give legal advice? - ANSNo, not unless they are an attorney.
17. Who determines the commission in a listing contract? - ANSAn agreement between the
owner and broker
19. All are typical duties of a property manager with the exception of... - ANSInvesting profits
, 20. Transfer tax is typically paid by for by whom? - ANSBuyer and seller
21. Blockbusting definition... - ANSAn 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... - ANSn/a
25. Net listing definition... - ANSa 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 -
ANScan they make monthly rent payments on time.
27. All are examples of single agency disclosures with the exception of - ANSrevealing the
owner will except less.
30. What is the most reliable method of appraisal for residential real estate? - ANSSales
comparison approach
31. Assemblage definition... - ANSconsolidating two separate lots into one.
32. What would not be a depreciation of value? - ANSUnimproved land
33. What has the greatest effect on real estate value? - ANSDemand of people and location
34. What rules require fair housing laws to be in a listing contract? - ANSPA Human
Relations Act
40. Typically who pays for title insurance? - ANSBuyer
44. What is the transfer tax charged by the state of PA? - ANS1% of the sales price
45. What should you do about material defect disclosures? - ANSinform the buyer and seller
48. What is private mortgage insurance? - ANSIt protects the lender if their is default
49. What is the first step in the appraisal process? - ANSIndicate objective of appraisal
50. What is an example of external depreciation? - ANSNearby property that suffers from
lack of maintenance and is negatively affecting the sellers property.
52. Who does a selling salesperson represent under buyer agency? - ANSBuyer
54. What is not an example of a real estate business violation of the antitrust laws? -
ANSopening offices in new locations
1. Brokerage definition... - ANSthe business practice of bringing together the parties in a
practice.
2. What are two examples of special use property? - ANSschools and cemetary
3. What is an example of functional obsolescence? - ANSbathroom
4. Principal definition... - ANSa 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... - ANSthe 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? - ANSInform
the buyer
8. All are examples of real estate except... - ANSfactories
9. What is homeowners insurance? - ANSInsurance to protect owners from fires and other
etc.
10. Special agent definition... - ANSthe 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 - ANSGross Rent Multiplier Method
What is steering? - ANSthe 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. - ANSExcept when
listing broker does not disclose information
16. Can a salesperson give legal advice? - ANSNo, not unless they are an attorney.
17. Who determines the commission in a listing contract? - ANSAn agreement between the
owner and broker
19. All are typical duties of a property manager with the exception of... - ANSInvesting profits
, 20. Transfer tax is typically paid by for by whom? - ANSBuyer and seller
21. Blockbusting definition... - ANSAn 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... - ANSn/a
25. Net listing definition... - ANSa 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 -
ANScan they make monthly rent payments on time.
27. All are examples of single agency disclosures with the exception of - ANSrevealing the
owner will except less.
30. What is the most reliable method of appraisal for residential real estate? - ANSSales
comparison approach
31. Assemblage definition... - ANSconsolidating two separate lots into one.
32. What would not be a depreciation of value? - ANSUnimproved land
33. What has the greatest effect on real estate value? - ANSDemand of people and location
34. What rules require fair housing laws to be in a listing contract? - ANSPA Human
Relations Act
40. Typically who pays for title insurance? - ANSBuyer
44. What is the transfer tax charged by the state of PA? - ANS1% of the sales price
45. What should you do about material defect disclosures? - ANSinform the buyer and seller
48. What is private mortgage insurance? - ANSIt protects the lender if their is default
49. What is the first step in the appraisal process? - ANSIndicate objective of appraisal
50. What is an example of external depreciation? - ANSNearby property that suffers from
lack of maintenance and is negatively affecting the sellers property.
52. Who does a selling salesperson represent under buyer agency? - ANSBuyer
54. What is not an example of a real estate business violation of the antitrust laws? -
ANSopening offices in new locations
