PSI PA REAL ESTATE EXAM Flashcards

PSI PA REAL ESTATE EXAM Flashcards An exception to title insurance coverage is? defects that clearly appear in the title search Salesperson Susan was at the local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. Susan should?advise her friends this could constitute a violation of Sherman Antitrust Act.Without checking the facts, a broker who is the seller's agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on the broker's statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area.The buyer could seek to rescind the contract on the basis of misrepresentation Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE?both contracts are valid Federal Truth-in-lending laws are also known as? regulation z.A competitive market analysis is MOST often used for?setting a listing price A licensee has an agency representation agreement with a buyer. When showing another company's listing, what obligation does the licensee have to the seller and the listing broker at the other company?Disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offer The department of housing and urban development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some federal agencies, such as FHA?require the buyer to acknowledge disclosure of the presence of any known lead paint Which of these Federal laws regulates the advertisement of a lender's credit terms (rates, payment, etc.)?Regulation Z A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up $22,000 on or before December 31st. This is called?an option contract During the listing presentation, the seller questions the amount of commission to be paid and is told?the amount of commission is negotiable A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent should?tell the seller to disclose the termite treatment on the property disclosure

To be valid, every deed must?be executed by the grantor.In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers?One For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income?Mortgage loan interest, local property taxes, mortgage loan origination fees A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely?an exclusive agency listing An escheat occurs when?a property owner dies without heirs or a valid will If all other factors are equal, in which location is a parking lot likely to bring the highest sales price?Business district zoned for a six-story office building State laws differ on whether a buyer is entitled to know about?a suicide that occurred in the house last year Redliningrefusal to provide R.E. services to a geographic area Alex, 14, and Kent, 17, inherited a piece of property. The next year, Kent deeded the whole property to Alex, who immediately put it on the market. An adult buyer made a written offer which was accepted by Alex. Which of the following is TRUE?The buyer cannot legally compel Alex to sell Although states make specific laws governing water rights and the rights in land that borders water, most states generally follow one of two basic doctrines regarding water rights. Either riparian and littoral rights are automatically conveyed with property, or all water rights are controlled by the state under the doctrine of?prior appropriation Earnest money should be deposited into a trust account?in a timely manner, according to state laws Legal description using the government survey system are not generally used in?the original 13 states A property management plan may serve different purposes for different owners, and generally has to strike a balance between preservation of the property's value and generation of income. Which of the following owners would MOST likely prefer a property manager who emphasizes cash flow or income over the maintenance of value?an individual entrepreneur who ones serval apartment buildings According to the principle of progression, a three-bedroom, one-story home is MOST likely to bring the highest sales price if located in a neighborhood in which?most homes are larger than the sale home Davis, Hernandez, and Moore are vested as tenants in common on a parcel of land. Each received a pro-rata undivided interest in the parcel. The total price was $120,000. Davis put up 40% and Hernandez put up $22,500. What percentage does Moore own (to the nearest tenth of a percent)?

41.2%

Depreciation is calculated based on the? cost of the building only A salesperson in a branch office is sued for damages by a buyer after the salesperson misrepresents a property. Who has the ultimate responsibility for the salesperson's actions?the supervising broker When preparing a market data estimate of value, what category of adjustment is NOT essential?the original cost of the building An agency relationship between a property owner and a property manager is usually created by a management agreement Which rule-of-thumb formula for estimating property value is being offered to an investor who is told that a house renting for $900 a month should sell for about $90,000?Gross Net Multiplier (GRM) Which restrictive covenant would be considered illegal?a convenant that restricts selected parcels within a defined subdivision A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of anticipation According to the Truth-in-lending act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the prepayment penalties and rebates Three identical homes in a neighborhood were listed at the same time in a market where demand was constant.According to the law of supply and demand, which would have sold for the lowest price?The first sold A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds?The second mortgagee receives nothing unless he forced the foreclosure auction Under the common law of agency, licensees owe the broker with whom they are associated all of the following duties EXCEPT?indemnification In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT?more variety loan programs available A major difference between freehold and nonfreehold estates is that all freehold estates?are of indeterminable duration Antitrust laws prohibit competing brokers from all of the following EXCEPT?receiving compensation from both the buyer and the seller

A commercial property lost value because a recently constructed highway moved traffic away from the property.This is an example of?economic or external obsolescence Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?"catholics preferred" Severancethe performance of turning real property into personal property A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for taxes, rounded?

$225.00

A tenant rented an apartment signing a 15 month lease.After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does this tenant have?Tenancy at will A land owner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. What would most likely be used to obtain permission for this store?Conditional use permit or zoning variance Even after an offer has accepted and is binding, the buyer and seller may still choose to sign mutual release papers rather then proceed to closing. Which of the following circumstances would NOT give either party a justifiable reason to insist on a mutual release?the buyer finds a better property for better terms A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns down the offer. When presenting the offer, the broker should?tell the seller that the buyer will pay more Failure of a real estate agent to comply with Fair Housing practices is punishable by?license revocation and criminal prosecution Building codes are?ordinances that specify construction standards To what party or parties does the broker owe the fiduciary duty of care?the party or parties employing the broker A deed restriction is applicable to the activities of?all owners present and future An example of a contract terminated due to inability to perform would be what?seller had contracted for sale of the entire property without the knowledge or consent of the other joint tenant If leased premises become unusable for the purpose state in the lease, the tenant may have the right not abandon the premises. This action is called?constructive eviction In MOST states, foreclosed property is sold throughpublic auction The FHA functions MOST like?an insurance company An environmental impact statement typically describes the effects of a proposed project on factors such as public health and safety