State: Pennsylvania | Category: Real Estate | All tests in this Category:
Practice Test 1 Practice Test 21. An offer to purchase real estate is met with a seller's response that changes the price and terms. This is:
A counteroffer modifies the terms and effectively terminates the original offer; it creates a new offer.
2. Which adjustment is made when a comparable has fewer bathrooms than the subject?
Since the comparable is inferior (fewer bathrooms), value is added to it to equate it to the subject property's features.
3. If a buyer representation agreement does not expressly grant negotiating price, a licensee may still negotiate price because of:
Implied authority arises from the duties needed to carry out the agency relationship and customary practice, even if not written.
4. Which documents are typically delivered to the escrow at opening in a PA transaction?
At opening, the escrow file typically includes the contract, earnest money receipt, title commitment, and required disclosures.
5. A subordination clause most benefits which party?
The trustor benefits because a new loan can take priority over an existing loan, allowing for additional financing options.
6. A junior mortgage is usually:
A junior mortgage is secondary to the primary mortgage and is repaid after the first lien in case of default.
7. Which phrase best indicates a fee simple determinable in a deed?
Words like 'so long as,' 'while,' or 'during' signal a fee simple determinable. The condition can end the estate automatically.
8. A property’s highest and best use is defined as:
Highest and best use refers to the use that is legally permissible, physically possible, financially feasible, and most productive, producing the maximum value for the property.
9. In Pennsylvania contract law, mutual assent is established by?
Mutual assent, or a 'meeting of the minds,' is created when a valid offer is accepted and communicated.
10. Under Pennsylvania law, can a landlord unreasonably withhold consent to an assignment or subletting?
Pennsylvania law generally prohibits unreasonably withholding consent to assignment or subletting; consent can be conditioned but cannot be unreasonably withheld.
11. A ceiling fan permanently installed in a home is classified as:
A permanently installed ceiling fan is considered a fixture, thus part of real property.
12. What is the required number of hours of approved pre-licensing education for a PA real estate salesperson license?
PA requires 75 hours of approved pre-licensing education for real estate salespersons.
13. Which term refers to property rights that are transferred separately from the land itself?
Appurtenances are rights or interests that are attached to the land but can be transferred with it.
14. Which of the following is considered a physical component of real property?
Soil is a tangible part of the land, whereas rights like water or minerals are interests, not physical components.
15. The cost approach is most appropriate for valuing:
The cost approach works best for new or unique properties where comparable sales are limited. Older homes may have significant depreciation, making other approaches more reliable.
16. Which adjustment is made when a comparable property is smaller than the subject?
If a comparable is smaller than the subject, its price is increased to make it comparable to the subject property.
17. Which Pennsylvania body has authority to grant variances and hear appeals of zoning decisions?
In PA, the Zoning Hearing Board (ZHB) has the authority to grant variances and interpret zoning ordinances and decisions, as well as hear appeals.
18. In Pennsylvania, can a contractor's lien be subordinated to a mortgage through a subordination agreement?
Subordination agreements can change lien priorities to accommodate financing or refinances.
19. What is the purpose of setbacks in zoning?
Setbacks provide space between structures and property lines to ensure safety, light, air, and privacy.
20. Under Pennsylvania law, a lease for 13 months must be in writing to be enforceable.
The Statute of Frauds requires leases longer than one year to be in writing; a 13-month term exceeds one year.