Page 1 of 117
Pennsylvania Certified Evaluator (PAE) Exam Actual
EXAM Questions and Correct Answers with
EXPLANATIONS LATEST THIS YEAR
Pennsylvania Certified Evaluator (PAE) Exam
SUMMARIZED EXAM COVERAGE
The Pennsylvania Certified Evaluator certification is administered through the PA Department of State
and the State Board of Certified Real Estate Appraisers, with exams delivered by Pearson VUE .
Candidates must complete a minimum of 90 classroom hours of study covering the appraisal assessing
profession and pass a comprehensive examination covering all phases of the appraisal process and the
assessment function . Key domains include: basic appraisal principles and the legal distinction between
real and personal property; highest and best use analysis; estates and interests in real property (fee
simple, life estates, etc.); governmental powers (police power, eminent domain, taxation); economic
principles affecting value; land and improvement analysis; the three approaches to value (cost, sales
comparison, income capitalization); depreciation types (physical, functional, external); Pennsylvania-
specific laws (Act 28 of 1992, Uniformity Clause, Clean and Green program, STEB); USPAP Standards
(particularly Standard 6 for mass appraisal); ethics and the Scope of Work Rule; assessment
administration; ratio studies (COD, PRD); and property tax appeal procedures .
1. An assessor is valuing a property that includes a mobile home permanently affixed to a concrete
foundation with utilities connected. How should this be classified for assessment purposes?
A) As personal property because it was once movable
B) As real property because it is permanently attached to the land
C) As a chattel subject to sales tax
D) As exempt from property taxation
Answer: B
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Rationale: Once a mobile home is permanently affixed to land with utilities and foundation, it becomes
real property rather than personal property .
2. A property is conveyed with the deed language "To A and his heirs, so long as the property is used for
agricultural purposes." What type of estate has been created?
A) Fee simple absolute
B) Fee simple determinable
C) Life estate
D) Tenancy at will
Answer: B
Rationale: A fee simple determinable automatically reverts to the grantor upon the occurrence of a
specified condition .
3. A married couple owns their home together with full rights of survivorship. Under Pennsylvania law,
what is this form of ownership called?
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A) Tenancy in common
B) Joint tenancy
C) Tenancy by the entirety
D) Community property
Answer: C
Rationale: Tenancy by the entirety is available only to married couples and includes the right of
survivorship, meaning the surviving spouse automatically inherits the property .
4. A municipality enacts a zoning ordinance limiting building heights to 35 feet in a residential district.
This is an example of which governmental power?
A) Eminent domain
B) Police power
C) Taxation
D) Escheat
Answer: B
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Rationale: Police power allows government to regulate land use through zoning, building codes, and
other ordinances to protect public health, safety, and welfare .
5. Which of the following best describes the legal distinction between real property and personal
property?
A) Real property is movable, while personal property is permanently attached
B) Real property includes land and permanent attachments; personal property is movable and not
affixed
C) Real property is always residential; personal property is always commercial
D) Real property is taxed at a higher rate than personal property
Answer: B
Rationale: Real property consists of land and fixtures permanently attached; personal property is
movable and not permanently affixed .
6. The "highest and best use" of a property is defined as:
Pennsylvania Certified Evaluator (PAE) Exam Actual
EXAM Questions and Correct Answers with
EXPLANATIONS LATEST THIS YEAR
Pennsylvania Certified Evaluator (PAE) Exam
SUMMARIZED EXAM COVERAGE
The Pennsylvania Certified Evaluator certification is administered through the PA Department of State
and the State Board of Certified Real Estate Appraisers, with exams delivered by Pearson VUE .
Candidates must complete a minimum of 90 classroom hours of study covering the appraisal assessing
profession and pass a comprehensive examination covering all phases of the appraisal process and the
assessment function . Key domains include: basic appraisal principles and the legal distinction between
real and personal property; highest and best use analysis; estates and interests in real property (fee
simple, life estates, etc.); governmental powers (police power, eminent domain, taxation); economic
principles affecting value; land and improvement analysis; the three approaches to value (cost, sales
comparison, income capitalization); depreciation types (physical, functional, external); Pennsylvania-
specific laws (Act 28 of 1992, Uniformity Clause, Clean and Green program, STEB); USPAP Standards
(particularly Standard 6 for mass appraisal); ethics and the Scope of Work Rule; assessment
administration; ratio studies (COD, PRD); and property tax appeal procedures .
1. An assessor is valuing a property that includes a mobile home permanently affixed to a concrete
foundation with utilities connected. How should this be classified for assessment purposes?
A) As personal property because it was once movable
B) As real property because it is permanently attached to the land
C) As a chattel subject to sales tax
D) As exempt from property taxation
Answer: B
, Page 2 of 117
Rationale: Once a mobile home is permanently affixed to land with utilities and foundation, it becomes
real property rather than personal property .
2. A property is conveyed with the deed language "To A and his heirs, so long as the property is used for
agricultural purposes." What type of estate has been created?
A) Fee simple absolute
B) Fee simple determinable
C) Life estate
D) Tenancy at will
Answer: B
Rationale: A fee simple determinable automatically reverts to the grantor upon the occurrence of a
specified condition .
3. A married couple owns their home together with full rights of survivorship. Under Pennsylvania law,
what is this form of ownership called?
, Page 3 of 117
A) Tenancy in common
B) Joint tenancy
C) Tenancy by the entirety
D) Community property
Answer: C
Rationale: Tenancy by the entirety is available only to married couples and includes the right of
survivorship, meaning the surviving spouse automatically inherits the property .
4. A municipality enacts a zoning ordinance limiting building heights to 35 feet in a residential district.
This is an example of which governmental power?
A) Eminent domain
B) Police power
C) Taxation
D) Escheat
Answer: B
, Page 4 of 117
Rationale: Police power allows government to regulate land use through zoning, building codes, and
other ordinances to protect public health, safety, and welfare .
5. Which of the following best describes the legal distinction between real property and personal
property?
A) Real property is movable, while personal property is permanently attached
B) Real property includes land and permanent attachments; personal property is movable and not
affixed
C) Real property is always residential; personal property is always commercial
D) Real property is taxed at a higher rate than personal property
Answer: B
Rationale: Real property consists of land and fixtures permanently attached; personal property is
movable and not permanently affixed .
6. The "highest and best use" of a property is defined as:
