Real Estate
Practice Exam
Questions &
ANSWERS(RAT
ED A)
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.
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
Practice Exam
Questions &
ANSWERS(RAT
ED A)
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.
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
