PA ReAl estAte FundAmentAls FinAl
exAm Questions with ComPlete
solutions | lAtest uPdAte 2025 |
AlReAdy GRAded A+ | GuARAnteed
PAss!!
1. When demand for a commodity decreases and supply remains the
same,
A. Price tends to rise
B. Price tends to fall
C. Price isn't affected
D. Market becomes stagnant - ANSWER ✔ B. Price tends to
fall
2. Homeowners have different expenses from renters. Which is the
largest one?
A. Mortgage insurance
B. Private mortgage insurance
C. Purchase money mortgage
D. Principal interest taxes insurance - ANSWER ✔ D. Principal
interest taxes insurance
,3. The broker told her agents that they must charge a certain percentage
when they take a listing. The broker's practice is
A. An illegal practice called price fixing
B. Legal
C. Example of trying to control the marketplace
D. Unethical but not illegal - ANSWER ✔ B. Legal
4. A real estate brokers responsibility to keep the principal informed of
all the facts that might affect a transaction is the duty of...
A. Care
B. Disclosure
C. Obedience
D. Accounting - ANSWER ✔ B. Disclosure
5. What is required to create a legal, express agreement in PA?
Specific percentage for compensation
In writing
Specific number of hours devoted to transaction
Defined dollar amount as compensation - ANSWER ✔ In writing
6. One of the most effective methods of preserving the value of an
investment property is...
, Buy insurance to cover maintenance and repairs
Modernize and renovate the property
Schedule preventative maintenance
Buy flood insurance - ANSWER ✔ Schedule preventative
maintenance
7. At what time should the licensee present the consumer notice to the
prospective seller?
Before presenting the comparative market analysis
After getting the listing agreement signed
Anytime after the listing and before the seller accepts an offer
At the first meeting - ANSWER ✔ At the first meeting
8. Define pur autre vie - ANSWER ✔ For the life of another. Often
created for people mentally incapacitated in hope for providing
incentive for someone to care for them
9. Define encumbrance - ANSWER ✔ A right or interest in property by
someone other than the owner - ex. liens, easements, taxes,
assessments
10. Define encroachment - ANSWER ✔ Affects the physical condition
of the property
, 11. Define easement - ANSWER ✔ Right to use land of another party
for a specific purpose and passes with title
12. Describe riparian rights - ANSWER ✔ refers to those whose
property borders on river or stream
13. Describe littoral rights - ANSWER ✔ Rights of owner whose land
borders commercially navigable lakes seas and oceans
14. Explain accretion - ANSWER ✔ Increase in the land resulting
from deposit of soil by waters actions
15. Describe doctrine of prior appropriation - ANSWER ✔ The right to
use any water with the exception of domestic use which is trolled by
the state
16. Define leasehold - ANSWER ✔ Tenants right to possess real estate
for the term of a lease
17. Estate for years (tenancy for years) - ANSWER ✔ A leasehold with
a specific starting and ending date - it survives death or the sale of the
property
exAm Questions with ComPlete
solutions | lAtest uPdAte 2025 |
AlReAdy GRAded A+ | GuARAnteed
PAss!!
1. When demand for a commodity decreases and supply remains the
same,
A. Price tends to rise
B. Price tends to fall
C. Price isn't affected
D. Market becomes stagnant - ANSWER ✔ B. Price tends to
fall
2. Homeowners have different expenses from renters. Which is the
largest one?
A. Mortgage insurance
B. Private mortgage insurance
C. Purchase money mortgage
D. Principal interest taxes insurance - ANSWER ✔ D. Principal
interest taxes insurance
,3. The broker told her agents that they must charge a certain percentage
when they take a listing. The broker's practice is
A. An illegal practice called price fixing
B. Legal
C. Example of trying to control the marketplace
D. Unethical but not illegal - ANSWER ✔ B. Legal
4. A real estate brokers responsibility to keep the principal informed of
all the facts that might affect a transaction is the duty of...
A. Care
B. Disclosure
C. Obedience
D. Accounting - ANSWER ✔ B. Disclosure
5. What is required to create a legal, express agreement in PA?
Specific percentage for compensation
In writing
Specific number of hours devoted to transaction
Defined dollar amount as compensation - ANSWER ✔ In writing
6. One of the most effective methods of preserving the value of an
investment property is...
, Buy insurance to cover maintenance and repairs
Modernize and renovate the property
Schedule preventative maintenance
Buy flood insurance - ANSWER ✔ Schedule preventative
maintenance
7. At what time should the licensee present the consumer notice to the
prospective seller?
Before presenting the comparative market analysis
After getting the listing agreement signed
Anytime after the listing and before the seller accepts an offer
At the first meeting - ANSWER ✔ At the first meeting
8. Define pur autre vie - ANSWER ✔ For the life of another. Often
created for people mentally incapacitated in hope for providing
incentive for someone to care for them
9. Define encumbrance - ANSWER ✔ A right or interest in property by
someone other than the owner - ex. liens, easements, taxes,
assessments
10. Define encroachment - ANSWER ✔ Affects the physical condition
of the property
, 11. Define easement - ANSWER ✔ Right to use land of another party
for a specific purpose and passes with title
12. Describe riparian rights - ANSWER ✔ refers to those whose
property borders on river or stream
13. Describe littoral rights - ANSWER ✔ Rights of owner whose land
borders commercially navigable lakes seas and oceans
14. Explain accretion - ANSWER ✔ Increase in the land resulting
from deposit of soil by waters actions
15. Describe doctrine of prior appropriation - ANSWER ✔ The right to
use any water with the exception of domestic use which is trolled by
the state
16. Define leasehold - ANSWER ✔ Tenants right to possess real estate
for the term of a lease
17. Estate for years (tenancy for years) - ANSWER ✔ A leasehold with
a specific starting and ending date - it survives death or the sale of the
property
