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Download Real Estate Practice Exam Questions With 100% Correct Answers 2025/2026 and more Exams Business Management and Analysis in PDF only on Docsity!
1. Brokerage definition... - Correct Answer the business practice of bringing together the parties in a practice. 2. What are two examples of special use property? - Correct Answer schools and cemetary 3. What is an example of functional obsolescence? - Correct Answer bathroom 4, Principal definition... - Correct 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...- Correct 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? - Correct Answer Inform the buyer 8. All are examples of real estate except... - Correct Answer factories 9, What is homeowners insurance? - Correct Answer Insurance to protect owners from fires and other ete. 10. Special agent definition... - Correct 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 - Correct Answer Gross Rent Multiplier Method What is steering? - Correct 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. - Correct Answer Except when listing broker does not disclose information 16. Can a salesperson give legal advice? - Correct Answer No, not unless they are an attorney. 17. Who determines the commission in a listing contract? - Correct Answer An agreement between the owner and broker 19. All are typical duties of a property manager with the exception of... - Correct Answer Investing profits 20. Transfer tax is typically paid by for by whom? - Correct Answer Buyer and seller 21. Blockbusting definition... - Correct 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... - Correct Answer n/a 25. Net listing definition... - Correct 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 - Correct Answer can they make monthly rent payments on time. 54. What is not an example of a real estate business violation of the antitrust laws? - Correct Answer opening offices in new locations 56. Equity definition... - Correct Answer the value of real estate above any debt on that property. 57. Who are the parties in a listing agreement? - Correct Answer owner and listing broker. 58. All are examples of fiduciary responsibilities under a single agency listing agreement except.. . - Correct Answer negotiate lowest price. 60. Reconciliation definition... - Correct Answer the process of comparing the property values derived from different approaches to value, selecting the most suitable approach for the particular property being appraised and coming to a final conclusion of value. 62. The following are typical property management operation expenses except... - Correct Answer ceiling replacement 65. The following are examples of agricultural property except... - Correct Answer government owned rural land 66. Physical deterioration... - Correct Answer associated with normal wear and tear. 68. Proper listing price of the property... - Correct Answer based on seller 69. Exclusive Right to Sell Listing definition... - Correct Answer A type of listing to list and sell real estate property in which the seller employs one broker but that broker earns a commission "no matter who sells the property including the owner" 70. What type of property would be most appropriate to use the cost approach method? - Correct Answer 25 year old church 71. Definition of appraisal... - Correct Answer supportable estimate of value 73. What is the PA law that prohibits discrimination in housing? - Correct Answer PA Human Relations Act 75. Is special price setting allowed for certain categories of people? - Correct Answer No it's illegal 77. When is the consumer notice given? - Correct Answer At the first discussion of needs and motivation. 78. What are the conditions to when an agreement of sale becomes a binding contract? - Correct Answer When the buyer accepts the offer and the seller is notified. 80. What does the C stand for in the fiduciary dities - Correct Answer Care and confidentiality 81. Characteristics of sale and leaseback...- Correct Answer buyer becomes lessor 83. What is a broker's obligation to a buyer without buyer agency? - Correct Answer Give the agreement of sale 84. Redlining definition... - Correct Answer the unlawful practice of refusing real estate related business services based on location of a person's real property. ie: lending institutions or insurance companies 85. What is a way of termination a listing agreement? - Correct Answer Bankruptcy Court 92. What is a type of depreciation that is not curable? - Correct Answer external depreciation 94. Disclosure requirements to a seller under a listing agreement force brokers to disclose info except... - Correct Answer the buyer had AIDS 96. Sale and leaseback definition... - Correct Answer a combination real estate transaction where there is both a sale of real property by an owner and then an immediate lease on the same property giving the seller the right to remain in the same property that was just sold. 55. What is true about the contract rules regarding printed form sales agreement? - Correct Answer Handwritten words take precedent over printed words 59. What is a shares appreciation mortgage? - Correct Answer The lender receives a share of capital gain at time of sale. 61. Determine the value by the Income Approach formula - Correct Answer NET INCOME divided by RATE OF CAPITALIZATION 63. Fiduciary responsibility in a property management contract is to the - Correct Answer lessor 64. What is the formula for the Gross Rent Multiplier? - Correct Answer SALE PRICE divided by MONTHLY RENT 67. All are federal income tax deductions for a homeowner except... - Correct Answer property management 74. An example of an item that is prorated at settlement is... - Correct Answer Rental Income 76. Paid tax is a credit to whom? - Correct Answer Credit to the Seller 82. Selling agent represents who in a single agency listing agreement? (Scenario Question) - Correct Answer Dangerfield represents Crawford 85. What represents dual agency? - Correct Answer 1 broker with listing agreement and buying agreement 86. In a comparison between a land contract and a purchase money mortgage which is true? - Correct Answer Both represent forms of finacing 88. What is a characteristic of a VA Mortgage? - Correct Answer Must sign an affidavit saying that they intend to occupy the property. 89. What is a mortgage that includes both real and personal property? - Correct Answer Package Mortgage 90. What is a mortgage that will not fully amortize the loan? - Correct Answer Balloon Mortgage 91. Regulation Z requires lenders to... - Correct Answer inform borrowers of HOME MORTGAGE LOANS of closing cost 93. What is a mortgage that encumbers several parcels of land? - Correct Answer Blanket Mortgage 95. The mortgage amount relative to the property price is called... - Correct Answer Loan to Value 97. What is a characteristic of negative amortization? - Correct Answer They are commonly found on Adjustable Rate Mortgages (ARM) 98. What is the max profit a married couple can take on capital gain? - Correct Answer 500k 99. What is a fair housing exemption? (OLD PERSON COMMUNITY SCENERIO) - Correct Answer Familial Status 
