PA National Practice Exam - Colibri Real Estate Flashcards

PA National Practice Exam - Colibri Real Estate Flashcards Francis just signed the papers on a conventional 30-year, $210,000 loan. He was wondering what type of interest will he be paying on the loan. What is the correct answer?Complex interestSimple interestRevolving interestRepetitive interest Simple interest Which of these activities is appropriate to do within the first few days of obtaining a listing?Discuss modifying the listing price.Discuss the protected classes the sellers do not want to show the home to.Require the sellers to pay for a formal appraisal.Have the managing broker send a "thank you for listing" letter to the sellers.Have the managing broker send a "thank you for listing" letter to the sellers.The essential criteria for an acceptable legal description is that itonly contains the mailing address.accurately locates the parcel when using Google Maps.accurately locates the parcel in the opinion of a court.includes at least 2 landmarks.accurately locates the parcel in the opinion of a court.Which of the following wills may be considered invalid?A will written by someone who is only 23A will that is not signedA will that is indicated to be a "last will and testament"A will that has been completed voluntarily A will that is not signed Real estate licensees should know enough about building ordinances to be able toconduct a professional home inspection.provide solid legal advice.answer all client questions about a building's compliance.alert clients of potential problems in a home.alert clients of potential problems in a home.Which of the following statements is false regarding a tenancy in common?The co-owners must be married.The tenants share an indivisible interest.All tenants in common have distinct and separable ownership of their respective interests.Any number of people may be co-tenants in a single property.The co-owners must be married.An income producing property rents for $2,790 per month and the GRM is 97. What is the estimated market value of the property?$270,630$287,370$1,004,400$301,550

$270,630

Of the following liens: a $100,000 mortgage, a $2,500

property tax bill, and a $8,000 mechanic's lien, and a $25,000 judgment lien, which will be paid off first after a foreclosure sale?The $8,000 mechanic's lienThe $25,000 judgment lienThe $100,000 mortgageThe $2,500 property tax lien The $2,500 property tax lien

What type of clause allows a broker to collect a commission for some period of time after the listing expires?A return on investment clauseA recovery clauseA self-dealing clauseA carryover clause A carryover clause A written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms is a(n)bridge approval.delivered approval.conditional approval.permanent acceptance.conditional approval Bobbie decided to redeem her property after a tax sale.Bobbie exercised herlegal right of rescission.statutory right of redemption.optional right of disclosure.required right of recourse.statutory right of redemption.Alex's home has been on the market for eight months.What is the most likely reason Alex's home has not been sold yet?There has not been enough advertising done by the broker.The property is overpriced.The kitchen is ugly and outdated.The air conditioner is old.The property is overpriced.Which statement about a deed in lieu of foreclosure is false?It gives the borrower an opportunity to change the loan terms.The borrowers' credit is hurt less than in a formal foreclosure.It avoids public notice of the foreclosure.There is less risk to the lender that the borrower will damage the property in revenge for the loss of the property.It gives the borrower an opportunity to change the loan terms.Which of the following would be found in a management proposal?Tenant credit historiesThe desired demographic of the propertySchedule of maintenance requirementsA list of all pets residing in the complex Schedule of maintenance requirements Which is false regarding a promissory note?The property is collateral for the promissory note.A promissory note is a negotiable instrument, which means that the lender can sell the note to a third party.It is the primary evidence of a loan.It is the term used for a note that is guaranteed or insured by a governmental agency.It is the term used for a note that is guaranteed or insured by a governmental agency.On a $280,000 loan, the lender charges a 2 point service charge. How much does the borrower have to pay for just these two points?$28,000$560$2,800$5,600

$5,600

The system of land ownership in the United States is known as what?The allodial systemThe feudal systemThe aristocratic systemThe riparian system allodial Jordan has a month-to-month lease with landlord Greg.What type of lease did Jordan sign?Estate from period-to-periodEstate at sufferanceEstate at willEstate at easement Estate from period-to-period

What is a disadvantage of real estate investment?There is very low risk.It is not highly liquid.The cost of improvements may be depreciated or deducted over an arbitrary period of time.Real Estate has shown an above average rate of return.It is not highly liquid.Which clause protects a lender if he does not want the loan to be assumed by another party?AbandonmentSubordinationSatisfactionAlienation Alienation "This property has the best view in the entire county." This statement is an example offraud.unintentional misrepresentation.puffing.a fair housing violation.puffing Carla has been walking across a path on John's property for the past 22 years. John knows about this but has never given Carla permission. What might a court grant to Carla?An easement by necessityAn easement by prescriptionAn encroachment by necessityOwnership by prescription An easement by prescription Broker Austin represents a party in a transaction where there is a dispute regarding the deposited escrow money.What should Austin do?Hold the money until both parties (or their lawyers) provide a written release.Claim the escrow money for himself and move it into his personal account.Split the money evenly between the buyer and seller and let them fight it out.Immediately release the money to the party he represents.Hold the money until both parties (or their lawyers) provide a written release.A town is replacing a sidewalk that serves eight homes.The length of the sidewalk is 900 feet. Laura's property has 60 feet of the sidewalk. If the cost of the project to be paid by a special assessment is $18,000, what will Laura's assessment be?$775$900$1,200$2,400

$1,200

Should a licensee who represents both the buyer and seller tell the buyer about material defects on the seller's property?No, material defects cannot be shared with the buyer when dual agency exists.Yes, any defects known to the broker should have been disclosed to the buyer.No, the broker can only disclose material facts that the seller tells him to disclose.No, caveat emptor would apply in this case.Yes, any defects known to the broker should have been disclosed to the buyer.Which of the following types of property sales typically requires a property condition disclosure?A transfer of an interest that is less than fee simpleA foreclosure or deed-in-lieu of foreclosureA property transferred to the seller's parentA three unit, multi-family dwelling A three unit, multi-family dwelling Which of the following best describes the principle of conformity?The value of a home increases when the supply is short.A home maintains its highest value by being in a

neighborhood with similar-type housing.A property will decrease in value if there are rumors of a zoning change.Valuewise, it is best for a neighborhood to have little demographic diversity.A home maintains its highest value by being in a neighborhood with similar-type housing.