Exam (elaborations)

PA Real Estate Exam Prep Questions with Correct Answers

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Course
Real Estate

Institution
Real Estate

PA Real Estate Exam Prep Questions with Correct Answers Which of the following describes the term "appreciation"? A. Kind words expressed to someone about something they did B. An increase in the value of property C. An item of value owned by an individual D. None of the above - ANSWER-B. App...

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pa real estate exam prep questions with correct an

Institution Real Estate
Course Real Estate

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Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024

PA Real Estate Exam Prep Questions with

Correct Answers

Which of the following describes the term "appreciation"?

A. Kind words expressed to someone about something they did

B. An increase in the value of property

C. An item of value owned by an individual

D. None of the above - ANSWER✔✔-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

D. all of the above - ANSWER✔✔-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

A. balloon mortgage

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B. early due mortgage

C. mortgage of convenience

D. promissory note - ANSWER✔✔-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

D. Both A and B - ANSWER✔✔-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 __________

title.

A. good

B. cloudy

C. clear

D. free - ANSWER✔✔-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

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B. A person's good name

C. The amount of savings a person has

D. The current automobile the person owns - ANSWER✔✔-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

A. the date the interest rate changes

B. the date the stock market goes up

C. 30 days from the date the mortgage was taken out

D. all of the above - ANSWER✔✔-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

D. Down payment - ANSWER✔✔-B. The deposit made by a potential buyer to show they are in earnest

about purchasing a house is called an earnest money deposit.

A right-of-way which gives persons other than the owner access to or over a property is known as an

A. easement

B. ingress

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C. egress

D. none of the above - ANSWER✔✔-A. An easement is a right-of-way to persons other than the owner

and gives them legal access.

Which best describes a "subdivision"?

A. Houses in the same neighborhood similar in style and size

B. A housing development created by dividing a tract of land into individual lots

C. A development which is "substandard"

D. None of the above - ANSWER✔✔-B. A subdivision consists of individual lots created from a larger tract

(subdivided) and are offered for sale or lease.

When someone contributes to the construction or rehabilitation of a property with labor or services

rather than cash, that contribution is called A. a personal contribution B. sweat equity C. a big help to the

contractors D. toil and labor - ANSWER✔✔-B. Sweat equity is the contribution to the construction of or

rehabilitation of a property in the form of labor or services rather than cash.

A two-step mortgage is defined as A. an adjustable rate mortgage with one interest rate for the first five

or seven years and a different rate for the remainder of the term. B. a mortgage which is both adjustable

and fixed C. a mortgage which is named after a dance step D. all of the above - ANSWER✔✔-A. A two-

step mortgage starts out with one rate for the first five or seven years and then changes to a different

rate for the remainder of the term of the mortgage amortization.

A legal document evidencing a person's right to or ownership of a property is called a : A. quitclaim deed

B. title C. yearly lease D. accurate appraisal - ANSWER✔✔-B. A title is a legal document evidencing a

person's right to or ownership of a property.

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