1
PA Real Estate Exam Prep Questions
and Answers (100% Correct Answers)
Already Graded A+
Which of the following describes the term
"appreciation"?
A. Kind words expressed to someone about
© 2025 Assignment
something they did
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B. An increase in the value of property
Expert
C. An item of value owned by an individual
D. None of the above Ans: 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
, 2
D. all of the above Ans: 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
© 2025 Assignment
A. balloon mortgage
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B. early due mortgage
Expert
C. mortgage of convenience
D. promissory note Ans: 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
, 3
D. Both A and B Ans: 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
© 2025 Assignment
__________ title.
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A. good
Expert
B. cloudy
C. clear
D. free Ans: 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
, 4
D. The current automobile the person owns Ans:
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.
The adjustment date on an adjustable-rate
mortgage is
© 2025 Assignment
A. the date the interest rate changes
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B. the date the stock market goes up
Expert
C. 30 days from the date the mortgage was taken
out
D. all of the above Ans: 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
PA Real Estate Exam Prep Questions
and Answers (100% Correct Answers)
Already Graded A+
Which of the following describes the term
"appreciation"?
A. Kind words expressed to someone about
© 2025 Assignment
something they did
Guru01 - Stuvia
B. An increase in the value of property
Expert
C. An item of value owned by an individual
D. None of the above Ans: 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
, 2
D. all of the above Ans: 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
© 2025 Assignment
A. balloon mortgage
Guru01 - Stuvia
B. early due mortgage
Expert
C. mortgage of convenience
D. promissory note Ans: 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
, 3
D. Both A and B Ans: 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
© 2025 Assignment
__________ title.
Guru01 - Stuvia
A. good
Expert
B. cloudy
C. clear
D. free Ans: 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
, 4
D. The current automobile the person owns Ans:
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.
The adjustment date on an adjustable-rate
mortgage is
© 2025 Assignment
A. the date the interest rate changes
Guru01 - Stuvia
B. the date the stock market goes up
Expert
C. 30 days from the date the mortgage was taken
out
D. all of the above Ans: 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
