AYOP REAL ESTATE PRACTICE EXAM QUESTIONS
1. Brokerage definition... - Answers-the business practice of bringing together the
parties in a practice.
2. What are two examples of special use property? - Answers-schools and cemetary
3. What is an example of functional obsolescence? - Answers-bathroom
4. Principal definition... - Answers-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... - Answers-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? -
Answers-Inform the buyer
8. All are examples of real estate except... - Answers-factories
9. What is homeowners insurance? - Answers-Insurance to protect owners from fires
and other etc.
10. Special agent definition... - Answers-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 - Answers-Gross Rent Multiplier Method
What is steering? - Answers-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. - Answers-Except
when listing broker does not disclose information
16. Can a salesperson give legal advice? - Answers-No, not unless they are an
attorney.
17. Who determines the commission in a listing contract? - Answers-An agreement
between the owner and broker
, 19. All are typical duties of a property manager with the exception of... - Answers-
Investing profits
20. Transfer tax is typically paid by for by whom? - Answers-Buyer and seller
31. Assemblage definition... - Answers-consolidating two separate lots into one.
32. What would not be a depreciation of value? - Answers-Unimproved land
33. What has the greatest effect on real estate value? - Answers-Demand of people and
location
34. What rules require fair housing laws to be in a listing contract? - Answers-PA Human
Relations Act
40. Typically who pays for title insurance? - Answers-Buyer
44. What is the transfer tax charged by the state of PA? - Answers-1% of the sales price
45. What should you do about material defect disclosures? - Answers-inform the buyer
and seller
48. What is private mortgage insurance? - Answers-It protects the lender if their is
default
49. What is the first step in the appraisal process? - Answers-Indicate objective of
appraisal
50. What is an example of external depreciation? - Answers-Nearby property that
suffers from lack of maintenance and is negatively affecting the sellers property.
52. Who does a selling salesperson represent under buyer agency? - Answers-Buyer
54. What is not an example of a real estate business violation of the antitrust laws? -
Answers-opening offices in new locations
56. Equity definition... - Answers-the value of real estate above any debt on that
property.
57. Who are the parties in a listing agreement? - Answers-owner and listing broker.
58. All are examples of fiduciary responsibilities under a single agency listing agreement
except.. . - Answers-negotiate lowest price.
1. Brokerage definition... - Answers-the business practice of bringing together the
parties in a practice.
2. What are two examples of special use property? - Answers-schools and cemetary
3. What is an example of functional obsolescence? - Answers-bathroom
4. Principal definition... - Answers-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... - Answers-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? -
Answers-Inform the buyer
8. All are examples of real estate except... - Answers-factories
9. What is homeowners insurance? - Answers-Insurance to protect owners from fires
and other etc.
10. Special agent definition... - Answers-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 - Answers-Gross Rent Multiplier Method
What is steering? - Answers-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. - Answers-Except
when listing broker does not disclose information
16. Can a salesperson give legal advice? - Answers-No, not unless they are an
attorney.
17. Who determines the commission in a listing contract? - Answers-An agreement
between the owner and broker
, 19. All are typical duties of a property manager with the exception of... - Answers-
Investing profits
20. Transfer tax is typically paid by for by whom? - Answers-Buyer and seller
31. Assemblage definition... - Answers-consolidating two separate lots into one.
32. What would not be a depreciation of value? - Answers-Unimproved land
33. What has the greatest effect on real estate value? - Answers-Demand of people and
location
34. What rules require fair housing laws to be in a listing contract? - Answers-PA Human
Relations Act
40. Typically who pays for title insurance? - Answers-Buyer
44. What is the transfer tax charged by the state of PA? - Answers-1% of the sales price
45. What should you do about material defect disclosures? - Answers-inform the buyer
and seller
48. What is private mortgage insurance? - Answers-It protects the lender if their is
default
49. What is the first step in the appraisal process? - Answers-Indicate objective of
appraisal
50. What is an example of external depreciation? - Answers-Nearby property that
suffers from lack of maintenance and is negatively affecting the sellers property.
52. Who does a selling salesperson represent under buyer agency? - Answers-Buyer
54. What is not an example of a real estate business violation of the antitrust laws? -
Answers-opening offices in new locations
56. Equity definition... - Answers-the value of real estate above any debt on that
property.
57. Who are the parties in a listing agreement? - Answers-owner and listing broker.
58. All are examples of fiduciary responsibilities under a single agency listing agreement
except.. . - Answers-negotiate lowest price.
