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