PA NATIONAL PRACTICE EXAM -
COLIBRI REAL ESTATE QUESTIONS &
ANSWERS(GRADED A+)
Earl orally agreed to an 18-month lease with landlord Blake. Is this contract
enforceable?
Yes, all oral leases are enforceable.
No, all leases for longer than one year must be in writing to be enforceable.
Yes, all leases for longer than 6 months are enforceable.
No, it is not enforceable unless Earl is older than 50 years old. - ANSWERNo, all
leases for longer than one year must be in writing to be enforceable.
On a $280,000 loan, the lender charges a 2 point service charge. How much does
the borrower have to pay for just these two points?
$28,000
$560
$2,800
$5,600 - ANSWER$5,600
160 County Drive has 4 acres of open pasture and a 1,900 square foot home. The
home has 2 bedrooms and 4 bathrooms. Call 555-555-5555 now for information!
What is missing from this advertisement that makes it a blind ad?
The price
The broker's identification
The reason the property is for sale
How long the property has been on the market - ANSWERbrokers identification
A(n) ________ is one that conflicts with the ordinances that were enacted after the
use commenced.
illegal conforming use
enhanced nonconforming use
escheat use
legal nonconforming use - ANSWERlegal nonconforming use
Why is the condition of bearing walls more important than non-bearing walls?
Bearing walls protect the home from the outdoor elements and radon gas.
Bearing walls are part of the interior framework of the house.
Bearing walls support the ceiling and the roof.
Bearing walls are much weaker than non-bearing walls. - ANSWERBearing walls
support the ceiling and the roof.
The cost to replace an improvement with original materials is known as
replacement cost.
placebo cost.
cloning cost.
reproduction cost. - ANSWERreproduction cost
,Real estate licensees should know enough about building ordinances to be able to
conduct a professional home inspection.
provide solid legal advice.
answer all client questions about a building's compliance.
alert clients of potential problems in a home. - ANSWERalert clients of potential
problems in a home.
Which parties typically purchase title insurance once the transaction is complete?
The HUD and seller
The lender and buyer
The licensee and buyer
The broker and lender - ANSWERThe lender and buyer
Broker Austin represents a party in a transaction where there is a dispute regarding
the deposited escrow money. What should Austin do?
Hold the money until both parties (or their lawyers) provide a written release.
Claim the escrow money for himself and move it into his personal account.
Split the money evenly between the buyer and seller and let them fight it out.
Immediately release the money to the party he represents. - ANSWERHold the
money until both parties (or their lawyers) provide a written release.
What is a disadvantage of real estate investment?
There is very low risk.
It is not highly liquid.
The cost of improvements may be depreciated or deducted over an arbitrary period
of time.
Real Estate has shown an above average rate of return. - ANSWERIt is not highly
liquid.
A type of mortgage which allows the lender to increase the outstanding balance of a
loan up to the original amount of the loan in order to advance additional funds is
called an
wraparound mortgage.
take-out mortgage.
open-end mortgage.
spiral mortgage. - ANSWERopen-end mortgage.
If a cooperating broker accepts the offer of subagency from a listing broker, to whom
does the cooperating broker owe fiduciary duties?
Seller
Listing broker
Buyer
Nobody - ANSWERseller
Homeowner Louise has been lax in protecting her property rights. According to the
___________, Louise may lose those property rights.
Doctrine of De Jure
Doctrine of Laches
Stringent Theory
, Torrens Theory - ANSWERDoctrine of Laches
The Doctrine of Laches states that if a property owner is lax in protecting his or her
rights, the property owner may lose those rights.
The essential criteria for an acceptable legal description is that it
only contains the mailing address.
accurately locates the parcel when using Google Maps.
accurately locates the parcel in the opinion of a court.
includes at least 2 landmarks. - ANSWERaccurately locates the parcel in the opinion
of a court.
Which is false regarding a promissory note?
The property is collateral for the promissory note.
A promissory note is a negotiable instrument, which means that the lender can sell
the note to a third party.
It is the primary evidence of a loan.
It is the term used for a note that is guaranteed or insured by a governmental
agency. - ANSWERIt is the term used for a note that is guaranteed or insured by a
governmental agency.
Why is designated agency a good alternative to traditional dual agency?
Fair housing laws do not apply to transactions involving designated agency.
Even though the same broker represents each party, both the buyer and seller have
a licensee who exclusively acts as their agent in the transaction.
Designated agency is legal in all 50 states while dual agency is banned in every
state.
Only the broker is involved in the transaction and the parties do not have an
exclusive agent. - ANSWEREven though the same broker represents each party,
both the buyer and seller have a licensee who exclusively acts as their agent in the
transaction.
Justin defaulted on his home mortgage payments. The lender obtained a court order
to foreclose on the property. At the foreclosure sale, Justin's house sold for $339,000
and the unpaid balance of his loan is $400,000. What must the lender do to recover
the $61,000 Justin still owes?
Nothing, they cannot recover the $61,000.
Seek a deficiency judgment.
Contact their state's Recovery Fund for compensation.
Seek a quitclaim suit. - ANSWERSeek a deficiency judgment.
The Quarry Mountain Subdivision requires all properties to have fences that are at
least 8 feet tall surrounding each property. This is an example of
a zoning restriction.
an easement.
escheat.
a deed restriction. - ANSWERdeed restriction
In the appraisal process, looking at the number of recreational facilities, the
distances to schools and adequacy of public transportation is called
COLIBRI REAL ESTATE QUESTIONS &
ANSWERS(GRADED A+)
Earl orally agreed to an 18-month lease with landlord Blake. Is this contract
enforceable?
Yes, all oral leases are enforceable.
No, all leases for longer than one year must be in writing to be enforceable.
Yes, all leases for longer than 6 months are enforceable.
No, it is not enforceable unless Earl is older than 50 years old. - ANSWERNo, all
leases for longer than one year must be in writing to be enforceable.
On a $280,000 loan, the lender charges a 2 point service charge. How much does
the borrower have to pay for just these two points?
$28,000
$560
$2,800
$5,600 - ANSWER$5,600
160 County Drive has 4 acres of open pasture and a 1,900 square foot home. The
home has 2 bedrooms and 4 bathrooms. Call 555-555-5555 now for information!
What is missing from this advertisement that makes it a blind ad?
The price
The broker's identification
The reason the property is for sale
How long the property has been on the market - ANSWERbrokers identification
A(n) ________ is one that conflicts with the ordinances that were enacted after the
use commenced.
illegal conforming use
enhanced nonconforming use
escheat use
legal nonconforming use - ANSWERlegal nonconforming use
Why is the condition of bearing walls more important than non-bearing walls?
Bearing walls protect the home from the outdoor elements and radon gas.
Bearing walls are part of the interior framework of the house.
Bearing walls support the ceiling and the roof.
Bearing walls are much weaker than non-bearing walls. - ANSWERBearing walls
support the ceiling and the roof.
The cost to replace an improvement with original materials is known as
replacement cost.
placebo cost.
cloning cost.
reproduction cost. - ANSWERreproduction cost
,Real estate licensees should know enough about building ordinances to be able to
conduct a professional home inspection.
provide solid legal advice.
answer all client questions about a building's compliance.
alert clients of potential problems in a home. - ANSWERalert clients of potential
problems in a home.
Which parties typically purchase title insurance once the transaction is complete?
The HUD and seller
The lender and buyer
The licensee and buyer
The broker and lender - ANSWERThe lender and buyer
Broker Austin represents a party in a transaction where there is a dispute regarding
the deposited escrow money. What should Austin do?
Hold the money until both parties (or their lawyers) provide a written release.
Claim the escrow money for himself and move it into his personal account.
Split the money evenly between the buyer and seller and let them fight it out.
Immediately release the money to the party he represents. - ANSWERHold the
money until both parties (or their lawyers) provide a written release.
What is a disadvantage of real estate investment?
There is very low risk.
It is not highly liquid.
The cost of improvements may be depreciated or deducted over an arbitrary period
of time.
Real Estate has shown an above average rate of return. - ANSWERIt is not highly
liquid.
A type of mortgage which allows the lender to increase the outstanding balance of a
loan up to the original amount of the loan in order to advance additional funds is
called an
wraparound mortgage.
take-out mortgage.
open-end mortgage.
spiral mortgage. - ANSWERopen-end mortgage.
If a cooperating broker accepts the offer of subagency from a listing broker, to whom
does the cooperating broker owe fiduciary duties?
Seller
Listing broker
Buyer
Nobody - ANSWERseller
Homeowner Louise has been lax in protecting her property rights. According to the
___________, Louise may lose those property rights.
Doctrine of De Jure
Doctrine of Laches
Stringent Theory
, Torrens Theory - ANSWERDoctrine of Laches
The Doctrine of Laches states that if a property owner is lax in protecting his or her
rights, the property owner may lose those rights.
The essential criteria for an acceptable legal description is that it
only contains the mailing address.
accurately locates the parcel when using Google Maps.
accurately locates the parcel in the opinion of a court.
includes at least 2 landmarks. - ANSWERaccurately locates the parcel in the opinion
of a court.
Which is false regarding a promissory note?
The property is collateral for the promissory note.
A promissory note is a negotiable instrument, which means that the lender can sell
the note to a third party.
It is the primary evidence of a loan.
It is the term used for a note that is guaranteed or insured by a governmental
agency. - ANSWERIt is the term used for a note that is guaranteed or insured by a
governmental agency.
Why is designated agency a good alternative to traditional dual agency?
Fair housing laws do not apply to transactions involving designated agency.
Even though the same broker represents each party, both the buyer and seller have
a licensee who exclusively acts as their agent in the transaction.
Designated agency is legal in all 50 states while dual agency is banned in every
state.
Only the broker is involved in the transaction and the parties do not have an
exclusive agent. - ANSWEREven though the same broker represents each party,
both the buyer and seller have a licensee who exclusively acts as their agent in the
transaction.
Justin defaulted on his home mortgage payments. The lender obtained a court order
to foreclose on the property. At the foreclosure sale, Justin's house sold for $339,000
and the unpaid balance of his loan is $400,000. What must the lender do to recover
the $61,000 Justin still owes?
Nothing, they cannot recover the $61,000.
Seek a deficiency judgment.
Contact their state's Recovery Fund for compensation.
Seek a quitclaim suit. - ANSWERSeek a deficiency judgment.
The Quarry Mountain Subdivision requires all properties to have fences that are at
least 8 feet tall surrounding each property. This is an example of
a zoning restriction.
an easement.
escheat.
a deed restriction. - ANSWERdeed restriction
In the appraisal process, looking at the number of recreational facilities, the
distances to schools and adequacy of public transportation is called
