Real Estate Practice Exam Questions

Real Estate Practice Exam Questions / Strategies Review of Key Quizzes & Correct Answers.

• Brokerage definition... - Answer: the business practice of bringing together the parties in a

practice.

• What are two examples of special use property? - Answer: schools and cemetary

3. What is an example of functional obsolescence? - Answer: bathroom

• Principal definition... - Answer: a consumer of real estate services who has entered into an

agency relationship with a broker or another licensee employed by a broker.

• Capitalization definition... - Answer: the process of determining the present value of a

property from it's future income.

• What is the salespersons obligation to a buyer under single agency listing? - Answer: Inform

the buyer

8. All are examples of real estate except... - Answer: factories

• What is homeowners insurance? - Answer: Insurance to protect owners from fires and other

etc.

• Special agent definition... - Answer: the type of agency in which the principal authorizes the

agent to represent the agent in "one specific transaction or business activity" 1 / 3

• 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 - Answer: Gross Rent Multiplier Method

What is steering? - Answer: the unlawful act of keeping a buyer away from certain communities or guiding them to purchase in certain communities.

• Entitlement to commission when transaction is not consummated. - Answer: Except when

listing broker does not disclose information

• Can a salesperson give legal advice? - Answer: No, not unless they are an attorney.
• Who determines the commission in a listing contract? - Answer: An agreement between the

owner and broker

• All are typical duties of a property manager with the exception of... - Answer: Investing

profits

20. Transfer tax is typically paid by for by whom? - Answer: Buyer and seller

• Blockbusting definition... - Answer: 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.

• Special agency listing definition... - Answer: n/a 2 / 3

• Net listing definition... - Answer: 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.

• The main factor a property manager should use to evaluate a prospective tenant is -

Answer: can they make monthly rent payments on time.

• All are examples of single agency disclosures with the exception of - Answer: revealing the

owner will except less.

• What is the most reliable method of appraisal for residential real estate? - Answer: Sales

comparison approach

• Assemblage definition... - Answer: consolidating two separate lots into one.

32. What would not be a depreciation of value? - Answer: Unimproved land

• What has the greatest effect on real estate value? - Answer: Demand of people and location
• What rules require fair housing laws to be in a listing contract? - Answer: PA Human

Relations Act

40. Typically who pays for title insurance? - Answer: Buyer

• What is the transfer tax charged by the state of PA? - Answer: 1% of the sales price
• What should you do about material defect disclosures? - Answer: inform the buyer and

seller

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