Pennsylvania Real Estate Practice Final Exam A Flashcards

Pennsylvania Real Estate Practice Final Exam A Flashcards From whom may a licensed real estate sales- person properly receive compensation or commissions ?Employing broker only What should a broker who is the agent of the buyer do ?Advise the buyer if the listing price of the seller's house is unrealistic The salesperson received $ 2,800 commission on her 35 % share of the total commission on the sale of a property that sold for $ 160,000 . What was the commission rate ?

• %

When demand for a commodity decreases and supply remains the same , price tends to fall .In addition to accepting 20 % of the purchase price in cash , the seller also agreed to take a note and mortgage for the balance of the purchase price . What kind of mortgage is this ?Purchase money If a seller refuses to disclose a known material defect , thenthe broker and all associates must disclose that defect .What is NOT a critical indication that property managers must analyze about the rental market ?The capitalization rates Borrowers whose LTV ( loan - to - value ) ratio is less than 20 % must usually also pay private mortgage insurance ( PMI ) . Lenders must cease charging PMI when the equity reaches 22 % How often must telemarketers and sellers search the registry of the Do Not Call List ?Every 31 days What is one of the most important factors that influence the interest rate charged to the buyer ?Credit score In Pennsylvania , who is most likely to prepare and present a comparative market analysis ?Real estate licensees A licensed real estate professional acting as a point of contact between two or more people in negotiating the sale , rental , or purchase of a property is known as a broker .The sales comparison approach to value would be MOST important when estimating the value of an existing residence .A listing agreement must includea beginning and ending date for broker services .

• One of the MOST effective methods of preserving the

value of an investment property is to Schedule preventive activities such as servicing appliances and systems .Who would most likely not at the closing table along with the buyer and seller ?Property insurance agent A real estate broker's responsibility to keep the principal informed of all of the facts that might affect a transaction is the duty of disclosure The Pennsylvania Human Relations Com- mission and the Pennsylvania Association of REALTORS® have jointly

authored the Fair Housing Guidelines . What is the effect of these guidelines ?Resource for developing nondiscriminatory policies and procedures

Accrued interest on an assumed mortgage loan is entered on the closing statement as a debit to the seller and a credit to the buyer .What are NOT agency agreements ?Instruments of real estate transfer A family overimproved their home in comparison to the rest of their neighborhood . What principal would an appraiser use to value the family's home ?Regression Which statement is TRUE about state and federal fair housing laws ?Pennsylvania laws are more restrictive .the same Homeowners have different expenses from renters . Which is the largest one ?Principal , interest , taxes , insurance ( PITI ) The agency responsible for the enforcement of the Fair Housing Act is the Department of Housing and Urban Development .At what time should the licensee present the Consumer Notice to the prospective seller ?At the first meeting Pennsylvania requires that sellers of certain properties make certain disclosures about the property . To which properties does this property disclosure apply ?One - to - four family residential properties Which statement is TRUE ?A different disclosure is required when working with leases .43 . What percent of gross income before recurring expenses does a person have to have to qualify with at least 10 % down ?28 % The broker told her agents that they must charge a certain percentage when they take a listing. The broker's practice is legal A rumor is out that Disney is going to build a theme park in the Poconos . What appraisal principal will valuers apply to upstate land ?Anticipation The amount of earnest money deposit is determined byagreement between the parties .39 . The buyers have at least 20 % to use as their down payment . These buyers are most likely to consider a conventional loan .Before closing , about what are sellers MOST concerned ?Buyer's loan approval What is required of Pennsylvania real estate licensees under Megan's law ?Real estate licensees are not required to discover or disclose . buyers in a search for The Closing Disclosure ( CD ) must conform to the Loan Estimate ( LE ) .A buyer wants to purchase a property but wants to be sure that the zoning can be changed . To protect his interests , the buyer is likely to enter into an option agreement .Why are condominium insurance policies going to be priced lower than regular homeowner's policies ?HOAs carry insurance on common areas .The practice of placing families with children only on the first floor is called blockbusting .Pennsylvania recognizes age as a protected class . What is that age ?40

An installment contract MOST resembles which leases ?Net lease and land lease Networks of interrelated companies that offer real estate services are called affiliated business arrangements .In Pennsylvania , from 1929 until 1989 , who did the appraisals ?Brokers 51 . A broker is permitted to represent both the seller and the buyer in the same transaction when both parties have been informed and agree to the dual representation .A government regulated appraisal form would reconcile residential duplex properties using what three approaches ?Sales comparison approach , cost approach , GRM income approach Tenants would NOT include which of the following in their rental payment part of their residential lease agreement ?The disbursement of funds with the land- lord for paying bills In the 1950s , real estate firms were not characterized bymultiple listing systems .What is required to create a legal , express agreement in Pennsylvania ? Specific percentage for the compensation In writing During the listing negotiations , the sellers tell the broker that they want $ 138,000 for the property , and anything above that amount the broker can keep as a commission .A listing with this type of provision is known as a net listing .By executing a listing agreement with a seller , a real estate broker becomes the agent of the seller .In determining rental amounts , a property manager considers the economic principle of supply and demand .Which would typically not be a duty of a property manager ?Counselling the owner on how to invest his profits What does FACTA ( the Fair and Accurate Credit Transactions Act ) NOT provide the consumer ?Removal of all damaging credit information Why would a manager purchase a software package that would assist in tenant selection ?To be consistent in evaluating the debt , credit and income of all applicants A brokerage firm specializes in estimating property values using detailed established methods . Its specialty is appraisal All of the following must be required on a broker's website

EXCEPT

photos of individual salespeople .