Pennsylvania Real Estate Exam Review Questions with 100% Verified Answers

multiperil policies - Answer-Insurance policies that offer protection from a range of potential perils, such as those of a fire, hazard, public liability, and casualty risk management - Answer-Evaluation and selection of appropriate courses of action to minimize legal liability; also the selection of appropriate insurance coverage tenant improvements - Answer-Alterations to the interior of a building to meet the functional demands of the tenant. life-cycle costing - Answer-In property management, comparing one type of equipment with another based on both purchase cost and operating cost over its expected useful lifetime management agreement - Answer-A contract between the owner of income property and a management firm or individual property manager that outlines the scope of the manager's authority property manager - Answer-Someone who manages real estate for another person for compensation. Duties include collecting rents, maintaining the property, and keeping up all accounting prepaid items - Answer-On a closing statement, items that have been paid in advance by the seller, such as insurance premiums and some real estate taxes, for which he or she must be reimbursed by the buyer accrued items - Answer-On a closing statement, expense items that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property. proration - Answer-Expenses, either prepaid or paid in arrears, that are divided or distributed between buyer and seller at the closing. escrow - Answer-The closing of a transaction through a third party called an escrow agent, or escrowee, who receives certain funds and documents to be delivered upon the performance of certain conditions outlined in the escrow instructions credit - Answer-On a closing statement, an amount entered in a person's favor—an amount the party has paid or an amount for which the party must be reimbursed. debit - Answer-On a closing statement, an amount charged, that is, an amount that the debited party must pay.