45-Hour PA Practice Final Exam Flashcards

45-Hour PA Practice Final Exam Flashcards When a home is listed, typically demand and interest fade

after:1. 3-4 weeks2. 5-6 weeks3. 2 months4. 3 months

CORRECT ANSWER:3-4 weeks

The Fair Housing Act protects which of these persons?1. A person recovering from substance abuse2. Illegal drug users3. Juvenile offenders4. Sexual offenders

CORRECT ANSWER:A person recovering from substance

abuse What is an area of commercial law that deals with a set of contractual, quasi-contractual and non-contractual fiduciary relationships involving an agent and a principal to create legal relations with a 3rd party?1. License law2. The law of agency3. The law of business formation4. Intellectual property law

CORRECT ANSWER:The law of agency

In what type of residential building does each owner have a percentage of ownership of the entire property?1. An apartment building2. A condominium3. A modular home4.A time-share

CORRECT ANSWER:A condominium

When must cooperating brokers determine their compensation terms?1. They must determine compensation before beginning efforts to accept the offer of cooperation2. They must determine compensation within one week of closing3. Compensation must be determined after beginning efforts to accept the offer of cooperation4.Compensation must be determined soon after an offer has been accepted by the seller

CORRECT ANSWER:They must determine compensation

before beginning efforts to accept the offer of cooperation The final step a licensee will take when preparing a CMA

is:1. Choosing comparables2. Estimating a reasonable

selling price range3. Making adjustments to comparables4.Collecting and analyzing information

CORRECT ANSWER:Estimating a reasonable selling price

range What do you call an individual broker who is employed by another broker?1. A salesperson2. An associate broker3. A subagent4. A principal

CORRECT ANSWER:An associate broker

What the market recognizes as "the change in value an improvement makes to a property" is called what?1.Competition2. Contribution3. Change4. Conformity

CORRECT ANSWER:Contribution

When a buyer makes payments on a mortgage the amount going to interest decreases and the amount going to the

principal:1. Stays the same2. Increases3. Fluctuates4.

Decreases

CORRECT ANSWER:Increases

What are two types of breach of contract damages?1.Punitive damages and non-punitive damages2.Conveyance damages and actual damages3. Damages by design and fraud damages4. Loss of bargain damages and

special damages

CORRECT ANSWER:Loss of bargain damages and

special damages When does possession transfer in most transactions?1.Two days after closing2. Before closing3. After

inspections4. The day of closing

CORRECT ANSWER:The day of closing

What is a good faith gesture that shows the seller that the buyer is serious about the offer and intends to carry out the terms of the contract?1. A certificate of deposit2. A down payment3. The earnest money deposit4. A demand deposit

CORRECT ANSWER:Earnest money deposit

Silence often conveys a sense of:1. Loss and defeat2.

Agreement and acceptance3. Control and power4.Disrespect and contempt

CORRECT ANSWER:Control and power

What is the payment schedule for most mortgage loans?1.Mortgage loans are paid in advance2. Mortgage loans are paid in arrears3. Mortgage loans are paid on the 10th of each month4. Mortgage loans are based on 365 days in the year

CORRECT ANSWER:Mortgage loans are paid in arrears

What happens when the agent intentionally fails to reveal a material fact?1. Fraud2. Silent Misrepresentation3.Negligence4. Puffing

CORRECT ANSWER:Silent misrepresentation

What function does the Federal Housing Administration (FHA) play in the mortgage loan process?1. FHA builds homes2. FHA insures loans3. FHA lends money4. FHA establishes national interest rates on mortgage loans

CORRECT ANSWER:FHA insures loans

Loan novation is a form of:1. Payment in advance2. A

seller's leaseback3. Blanket loan4. Assumption and assignment

CORRECT ANSWER:Assumption and assignment

Where does most predatory lending occur?1. The primary market2. The middle market3. The subprime market4. The standard market

CORRECT ANSWER:The subprime market

One example of discrimination in lending is:1. Advertising a

property as restricted in some way2. Refusing membership to an MLS service3. Discriminating in a property appraisal4. Refusing to rent to a person who is a member of a protected class

CORRECT ANSWER:Discriminating in a property appraisal

What type of survey gives the estimated location of a home and improvements on the lot, with the accuracy of plus or minus one foot?1. Rods and yards2. Spot3. Stake4.Boundary

CORRECT ANSWER:Spot

If product price increases, demand is increasing in relation

to:1. Deficiency2. Price3. Supply4. Debt

CORRECT ANSWER:Supply

If an agent is found guilty of false advertising, what may the FTC issue?1. A summons2. A cease-and-desist order to stop running the ad3. A suit for defamation4. A continuation

CORRECT ANSWER:A cease-and-desist order to stop

running the ad Who is responsible for the actions of real estate agents?1.The broker2. The commission3. The agents4. NAR

CORRECT ANSWER:The broker

Individuals and business organizations whose sole enterprise is performing a real estate-related service or

function are called:1. Investment specialists2. Property

experts3. Real estate professionals4. Mortgage brokers

CORRECT ANSWER:Real estate professionals