PA Exam Recap Flashcards

PA Exam Recap 2/26 Flashcards Martha enters into a buyer's agency agreement with Dale.She tells him that she plans to operate a beauty shop from her home, Dale neglects to check with the city to determine if there are zoning ordinances that would allow or prohibit an in-home beauty salon. Which of Dale's duties to Martha did he violate?ObedienceAccountingDisclosureCare ^^ Glenna an Amanda just bought their first home. They will have a number of new expenses as a result of this purchase. Which of these expenses is not associated with owning a home?Real estate taxesinterest on the loanpersonal property taxhomeowner's insurance Jim and Jane are buying a home for $120,000, they have $20,000 for a down payment and assumed the seller's mortgage of $75,000. Jim and Jane financed the remaining $25,000 through the seller. What kinds of mortgage do they have?Buydown loanBaloon loanPurchase money mortgageWraparound loan While viewing a home, Buyer Brenda notices the early stages of new construction going on behind the home.Brenda asks the agent what is being built there. The agent knows that it's low-income housing. However, he tells Brenda that they are upscale town homes. What is this an example of?Intentional misrepresentationPuffingNegligenceExaggeration Buyer Kirk submits an offer to seller Larry. Later that day, Kirk finds a home he likes better; so he withdraws his offer to Larry. Which is a true statement?Kirk doesn't have the right to withdraw the offer so soon.Larry could Sue KirkIf Larry verbally accepted the offer, Kirk is bound by it.<

Seller patsy wants to net $150,000 from the sale of her home. She tells Broker Al that he can list the property for whatever price he wants, and anything he gets above the 950,000 he can keep as his commission. What is this agreement called?Exclusive agencyOpen listingExclusive-right-to-sell agreement<

$22,000$176,000$198,000$220,000

Jack bought an old garage in downtown Harrisburg and remodeled is into two wonderful, spacious residential units.Jack's new building is an example of what?A planned unit developmentModular homeConverted-use propertyPreservation of historic property When filling out the sales contract, agent Jim crossed out several words and inserted others. He needs to be sure there is no future controversy about whether those changes were made before or after the parties signed the contract.What should Jim do?Draft a letter to each party outlining the changes.Ask the seller to write a letter to the buyer explaining the changeRedo the entire contract<

$800$1,600$2,400$3,200

Buyer Ralph offers to purchase Gall's home if she will pay the points at closing. Gall agrees and her agent changes the purchase offer accordingly. At this point, the offer is A valid contractAn invalid offerStill an offerAn invalid contract A protection clause in a listing contract means what?<

buyer doesn't complete the offer Jean makes an offer to purchase one of Helen's listings.Helen cannot contact the seller. In the meantime, she gets another offer on the property from another buyer at a much lower price. What should Helen do?<

Paul and Lily have a loan for $205,000 at 6.5% interest. If their monthly payments are $1,295.74, how much of their second payments will go to interest?

$185.32$186.32$1,109.42$1,110.42

Pennsylvania has a serious problem with abandoned mines. Which of the following is not a true statement?Standard insurance does not cover this issue.Homeowners can obtain insurance from Mine Subsidence insurance FundThe Department of Environmental Protection administers the MSI Fund.^^^Homeowners must wait for 60 days after application for coverage to begin.According to ECOA, lenders cannot discriminate against potential borrowers on the basis of all but which of the following?Marital statusAgeIncomeReligion When talking about appraisals, what term best describes the loss of value in a property from any cause?DepreciationObsolescenceDeteriorationDecline Which of the following statements best describes what happens in a mortgage loan transaction?The lender gives a mortgage to the borrower and gets a note in exchangeThe borrower gives the lender a note and mortgage in exchange for the fundsThe lender gives the borrower a mortgage and fundsThe borrower gets a note in exchange for a mortgage Jack and Jill bought a home in 1990 and paid $220,000 for it. They just sold the home for $850,000. How much Of the profit on their home will be taxable this year?None<<$130,000 (couples are exempt from $500k)$220,000$850,000 At a community meeting, Broker Amanda tells a group of families in an established neighborhood that several Indian families are planning to buy homes in their neighborhood.She tells them that this action could decrease their property values. Which statement is true?Amanda is guilty of blockbustingThis action is legal but very unprofessionalAmanda is guilty of redliningThis action is deliberate misrepresentation Grace signs a buyer agency agreement with Broker Tom.She also signs other agency agreements with other brokers. Grace finds a home on her own and doesn't owe commission to anyone. What kind of agency agreement did Grace sign with Tom and the other brokers?Nonexclusive buyer agencyExclusive agencyExclusive buyer agencyExclusive agency buyer agency When should the meaning the importance of the agency relationship be disclosed to a person?Before the listing agreement is signedAt initial contact with the personWhen an offer is writtenWhen potential for a dual agency situation becomes apparent Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the

IRS would probably classify Patrick as:

An independent contractorA self-employed person<