PENNSYLVANIA Salesperson Exam
Prep exam with complete
questions and answers 2024-2025
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
B.early due mortgage
C.mortgage of convenience
PENNSYLVANIA Salesperson
,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
B.A person's good name
C.The amount of savings a person has
PENNSYLVANIA Salesperson
,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
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.
PENNSYLVANIA Salesperson
, 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.
If you were buying a house that included furnishings, you would receive a
written document transferring title to the personal property. This document is
called a/an A. title B. deed C. bill of sale D. evidence of payment - answer C.
PENNSYLVANIA Salesperson
Prep exam with complete
questions and answers 2024-2025
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
B.early due mortgage
C.mortgage of convenience
PENNSYLVANIA Salesperson
,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
B.A person's good name
C.The amount of savings a person has
PENNSYLVANIA Salesperson
,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
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.
PENNSYLVANIA Salesperson
, 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.
If you were buying a house that included furnishings, you would receive a
written document transferring title to the personal property. This document is
called a/an A. title B. deed C. bill of sale D. evidence of payment - answer C.
PENNSYLVANIA Salesperson
