30 HOUR PA FUNDAMENTALS COURSE EXAM PREP ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS RECENT VERSION

30 HOUR PA FUNDAMENTALS COURSE EXAM PREP ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS RECENT VERSION 1. The legal essence of a valid lease is that it conveys __________ a property for a limited period of time in exchange for rent and the return of the property after the lease term is over. - ANSWER an exclusive right to use and occupy 2. In a lease arrangement, the owner is the __________, and the renter is the __________. - ANSWER landlord or lessor tenant or lessee 3. The covenants (agreements or promises) in the lease are very important. The following eight covenants are essential: - ANSWER Capacity to contract Demising clause Description of the premises Clear statement of term Specification of rent and how it is to be paid In writing Signatures Delivery 4. A __________ is the transfer by a tenant of a portion of the leasehold interest to another party. - ANSWER sublease 5. An __________ of the lease is a transfer of the entire leasehold interest by a tenant to a third party. - ANSWER assignment 6. A leasemay terminate for any of the following causes. (7 things) - ANSWER Term expiration Notice Voluntary agreement Property destruction Condemnation Foreclosure Breach of contract 7. A __________ lease requires the landlord to pay the property's operating expenses, including utilities, repairs, and maintenance, while the tenant pays only rent. - ANSWER gross 8. In a __________ lease, the tenant pays not only the rent for occupancy, but also pays maintenance and operating expenses such as taxes, insurance, utilities, and repairs. - ANSWER net 9. In a __________ lease, the rent payments start at a fixed amount but increase as the lease term matures. - ANSWER graduated 10. A __________ lease concerns the land portion of a real property. The owner grants the tenant a leasehold interest in the land only, in exchange for rent. - ANSWER ground (or land) 11. A __________ lease is a lease whose rental is based on a percentage of the monthly or annual gross sales made on the site. - ANSWER percentage 12. A __________ lease conveys a leasehold interest to an owner of a cooperative. - ANSWER proprietary 13. An __________ lease provides for the adjustment of rent according to changes in a price index. - ANSWER index 14. In which provision would a landlord describe what activities can take place on the property? - ANSWER use of the premises 15. What does a rescission contract do? - ANSWER releases all parties from any present and future liability 16. What is a good example of a unilateral contract? - ANSWER an option to buy 17. What kind of lease contains a recapture clause? - ANSWER a percentage lease 18. ___________ is a legally-binding contract that creates an agency relationship authorizing a broker to serve as the agent for a principal in a real estate transaction. - ANSWER the listing agreement 19. Listing agreements must be ___________ to be enforceable. - ANSWER in writing 20. The three most common types of listings are: - ANSWER Open Listing Exclusive Right to Sell Listing Exclusive Agency Listing 21. The most widely used agreement is the __________. - ANSWER exclusive right to sell listing agreement 22. Similar to listing agreements, there are three common types of buyer agency agreements: - ANSWER Exclusive buyer agency agreement Exclusive-agency buyer agency agreement Open buyer agency agreement 23. Since the listing agreement is a valid contract, it can only be modified with the written consent of all the parties. A __________ form is the best way to make those changes. - ANSWER special listing agreement amendment 24. The two most common changes to listing agreements are __________ and listing ___________. All other terms and conditions of the original listing agreement remain unchanged. - ANSWER price changes period extensions 25. A listing agreement can terminate when one of the following occurs: (3 things) - ANSWER Performance Expiration of the agreement term Termination 26. Formula for Return on Investment - ANSWER ROI = NOI / price 27. Formula for Return on Equity - ANSWER ROE = cash flow / equity 28. Formula for Monthly % Rent - ANSWER Monthly percentage rent = Sales times % Sales charged 29. Formula for Rent Escalation - ANSWER New rent = current rent x (100% + escalation rate) 30. Formula for Converting Mill Rates - ANSWER tax = taxable value / 1000 * mill rate 31. Formula for calculating Tax Base - ANSWER tax base = assessed valuations - exemptions 32. Formula for calculating Tax Rate - ANSWER tax rate = tax requirement / tax base Formulas for Commission Splits: Total Commission Co-brokerage Split Agent Split 33. Broker Split - ANSWER Total commission = Sale price x Commission rate Co-brokerage split = Total commission x Co-brokerage percent Agent split = Co-brokerage split x Agent percent Broker split = Co-brokerage split - Agent split 34. Formula for Seller's Net - ANSWER Sale Price - (sale price x commission) - Other closing costs - Loan balance = Seller's Net 35. Formula for Minimum Contract Price - ANSWER (Desired Seller's net profit + Loan payoff + closing cost = Seller's gross profit) ÷ Seller's % = Minimum Contract Price 36. Formula for Percentage of Listing Price - ANSWER % of listing price = offer / listing price 37. Formula for Earnest Money Deposit - ANSWER deposit = offering price * required or market accepted % 38. Formula for Closing Costs Prorations (30-Day, Statutory Year, or 360-Day Method) - ANSWER monthly amount = annual amount / 12 daily amount = monthly amount / 30 prorations = (monthly amount * # months) + (daily amount * # days) 39. Formula for Closing Costs Prorations (365-Day Method or Calendar Year) - ANSWER monthly amount = length of month daily amount = 365 prorations = daily amount * # days 40. Formula for Recovery with Co-Insurance Clauses - ANSWER recovery = damage claim * % replacement cost covered / minimum coverage requirement 41. Define real property based on the definition in the Pennsylvania Real Estate Licensing and Registration Act. - ANSWER Real Estate is any interest in land, whether corporeal, incorporeal, freehold or nonfreehold, whether the land is situated in this Commonwealth or elsewhere including leasehold interests and time share and similarly designated interests. A sale of a mobile home shall be deemed to be a transfer of an interest in real estate if accompanied by the assignment of the lease or sale of the land on which the mobile home is situated. 42. Define & list appurtenances. - ANSWER rights, privileges, and improvements that belong to and pass with the transfer of the property - man-made, natural, air rights, & water rights 43. List and explain estates in land. - ANSWER 44. Describe the bundle of rights associated with real property ownership. - ANSWER the beneficial interests associated with real property interests 45. List and explain the economic characteristics of real estate. - ANSWER D.U.S.T.S 46. Demand, Utility or Usefulness, Scarcity, Transferability, Situs 47. List and explain the physical characteristics of real estate. - ANSWER I.N.I. - Immobility, Non-homogeneous, Indestructible 48. List and explain the physical components of real property. - ANSWER subsurface rights, surface rights, water rights, natural rights 49. List and explain air rights. - ANSWER scenic easement - another building cannot be built to block view 50. light and air easement - to stop a building from blocking the light of another (esp. when solar powered) 51. What is fructus naturales? - ANSWER trees, perennial bushes and grasses that do not require annual cultivation 52. What are emblements called? Give examples. - ANSWER fructus industriales - annual crops such as wheat, corn and vegetables 53. List and explain annexation and severance. - ANSWER Annexation: changes personal property to real property. Severance: changes the real property to personal property. 54. Explain the four tests courts use to determine if an item is a fixture. - ANSWER M.A.I.D. Method of Annexation: How is the item attached? Adaptability: How does the item fit in its environment? Intent of the Parties: What do the buyer and seller agree upon in the written contract? Damage: How much damage will the removal of this item cause? 55. Explain trade fixtures. - ANSWER the property of a commercial tenant that is installed but is necessary for business 56. Corporeal - ANSWER actual possession of the property. 57. Which method is used to describe properties in residential, commercial, and industrial subdivisions? - ANSWER Recorded Plat Method 58. What are standard elevation reference points that have been established throughout the country? - ANSWER datums 59. Surveyors have identified what local elevation markers to provide reference elevations for nearby properties? - ANSWER benchmarks 60. What five economic characteristics affect the value of land in the marketplace - ANSWER Improvements Location Supply and demand Scarcity Permanence of investment 61. What are the three physical characteristics of land? - ANSWER Immobile or permanent Indestructible Non-homogeneous or unique 62. Explain the differences between the legal concepts of land and real estate. - ANSWER Land encompasses the surface of the earth, whatever is below the surface, whatever is above extending into space, and every natural thing that is permanently attached to the earth. 63. Real estate includes all this plus all man-made things permanently attached to the earth. 64. Define special purpose real estate and give an example. - ANSWER Property that has a unique use to the persons who own and use it, such as churches, hospitals, schools and government buildings. 65. Name the five major rights included in the bundle of rights to real estate. - ANSWER possess use transfer encumber exclude 66. Define the "right to use" and describe its limitations. - ANSWER The right to use a property refers to the right to use it in certain ways, such as mining, cultivating, landscaping and building on the property. The right is subject to the limitations of local zoning and the legality of the use. One's right to use may not infringe on the rights of others to use and enjoy their property. 67. What is the difference between littoral rights and riparian rights? - ANSWER Littoral rights concern properties that border bodies of water that are not moving. 68. Riparian rights concern properties that border moving water such as streams and rivers