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Real Estate Practice Exam Questions & Answers
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Real Estate Practice Exam Questions & Answers1. Brokerage definition... Correct Ans - the business practice of bringing together
the parties in a practice.
2. What are two examples of special use property? Correct Ans - schools and
cemetary
3. What is an example of functional obsolescence? Correct Ans - bathroom
4. Principal definition... Correct Ans - 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... Correct Ans - 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? Correct
Ans - Inform the buyer
8. All are examples of real estate except... Correct Ans - factories
9. What is homeowners insurance? Correct Ans - Insurance to protect owners from
fires and other etc.
10. Special agent definition... Correct Ans - 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 Correct Ans - Gross Rent Multiplier Method
What is steering? Correct Ans - 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. Correct Ans -
Except when listing broker does not disclose information
16. Can a salesperson give legal advice? Correct Ans - No, not unless they are an
attorney.
, 17. Who determines the commission in a listing contract? Correct Ans - An
agreement between the owner and broker
19. All are typical duties of a property manager with the exception of... Correct Ans -
Investing profits
20. Transfer tax is typically paid by for by whom? Correct Ans - Buyer and seller
21. Blockbusting definition... Correct Ans - 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.
23. Special agency listing definition... Correct Ans - n/a
25. Net listing definition... Correct Ans - 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.
26. The main factor a property manager should use to evaluate a prospective tenant is
Correct Ans - can they make monthly rent payments on time.
27. All are examples of single agency disclosures with the exception of Correct Ans -
revealing the owner will except less.
30. What is the most reliable method of appraisal for residential real estate? Correct
Ans - Sales comparison approach
31. Assemblage definition... Correct Ans - consolidating two separate lots into one.
32. What would not be a depreciation of value? Correct Ans - Unimproved land
33. What has the greatest effect on real estate value? Correct Ans - Demand of
people and location
34. What rules require fair housing laws to be in a listing contract? Correct Ans - PA
Human Relations Act
40. Typically who pays for title insurance? Correct Ans - Buyer
44. What is the transfer tax charged by the state of PA? Correct Ans - 1% of the sales
price
45. What should you do about material defect disclosures? Correct Ans - inform the
buyer and seller
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