PA real estate exam

Bilateral

What is a type of contract in which two parties are legally bound to act?

Functional Obsolescence

What is one kind of real property depreciation caused by poor design?

Grantee

What is the name of the party who acquires the title to real property in a deed?

Biennial

What is one word that indicates how often a Pennsylvania salesperson's license is required to be renewed?

Testate

What is the condition called when a person dies with a will?

Lis Pendens

What is the recorded legal notice that shows existing court action against real property?

Capitalization

What is the process of estimating the value of real property by using the rate of return and the annual net income?

.072

What is the decimal form of seventy two mills?

Open End Mortgage

What is the type of mortgage in which the mortgagor could receive future advances by increasing the the debt up to its original amount?

Redlining

What is the act called of denying mortgages to applicants from a certain area based on factors other than financial qualifications?

$2800

How much money would be charged as the result of a four point origination fee on a $95,000 property on which there is a $70,000 mortgage?

Statue of Fraud

What is the name of the state law that requires agreements of sale to be in writing?

Constructive Eviction

What is the name of the process by which a tenant is allowed to abandon a leased property without legal consequences if the landlord causes that leased property to become uninhabitable?

Usury

What is the practice of charging a rate of interest that is higher than is allowed by state law?

Title Theory

The lender is the owner of the mortgaged real estate according to what theory of mortgage law?

Suit or Action to Quiet Title

What is filed in court to settle a cloud on the title and determine the ownership of real property?

Satisfaction of Mortgage

What recorded document indicates that the mortgage has been paid in full?

Debt

What is any amount of money that is charged to someone on a closing statement and is required to be paid?

Easement in Gross

The right of way held by a railroad is an example of what type of easement?

Avulsion

The unexpected and dramatic loss of land as the result of an earthquake is represented by what real estate term?

43,560

How many square feet are within acre of land?

Ad Valorem

Because a tax on real property is based not on the value of the property it is known as what type of tax?

Blue Sky Laws

State and federal laws that regulate real estate when it is sold as a security are known by what general name?

Chattels, Personalty

List two term that mean personal property

Abstract of Title

What is the list of recorded documents on a particular real property called?

Eminent Domain

What is the ability of the government to acquire real property against the wish of the owner to benefit the general public?

Devise

When real property is conveyed to a party through a will, the real property is referred to by what term?

Fee Simple

What is the most complete estate in real property?

Puffing

What is an exaggerated comment called that is made by a real estate agent about real property that would not be considered to be factual?

Reconciliation

What is the process of arriving at a final market value conclusion from the estimates of the three appraisal approaches to value?

Estoppel Certificate

When an existing mortgage is assigned to the secondary mortgage market or when it is assumed, what document indicates the unpaid mortgage balance and the date that the last mortgage payment was made?

Blanket Mortgage

What type of mortgage is based on the collateral security pledge of two properties?

Adverse Possession

By what means can a person can make a claim of title by taking over the real estate of another through continuous, visible and hostile possession for the statutory period of time?

Time is of the Essence

What is the legal phrase used in contrast to bind the parties to complete a contract by the specified dates in the contract?

Leverage

The principle that allows an investor to purchase real estate by relying primary on borrowed money is known by what term?

Truth In Lending Act

What is another name for Regulation Z?

Exclusive Agency

What is the type of listing contract in which the owners employ one real estate broker but the owners pay no commission fee if they sell their real estate to someone who has not contacted the broker?

Holdover Tenant

What is the official name of a tenant who remains in a leased property after the lease expires?

Syndicate

What is the typical business arrangement called that is created when individual persons invest money collectively as a group through pooled shares in a real estate investment property?

Amortized Loan

What is the type of loan in which the principal as well as the interest is payable in periodic installments over the term of the loan?

11

How many members are on the Pennsylvania Real Estate Commission?

Capital Gain

What is the profit called that is earned from the sale of real property according to the U.S. Internal Revenue Service?

Consideration

The fact that value must be exchanged between the parties to a valid deed refers to what real estate term?

Deficiency Judgement

What legal action can be sought in court by a mortgage to recover lost money when the public sale of a foreclose property does not pay off the entire mortgage debt?

Ingress and Egress

What is the rights to enter and exit land?

Manager of Record

What is the title of the Pennsylvania real estate licensee who supervises an incorporated business that sells lists of available apartment units to prospective lessees?

Foreclosure

What is it called when a lender initiates a court process that will result in the public sale of the tee real property of a borrower in default?

Vendee

What is a legal term for a buyer?

Principal

What is the name of the party being represented in an agency relationship?

Wraparound Mortgage

What type of mortgage represents a junior lien in which the second lender is used to payoff the first lender?

Trade Fixture

What is the name of an item attached to a leased business property that can be removed by the tenant prior to the lease expiration?

Subordination Agreement

What is the contract that allows a junior lien to take priority over a first mortgage lien?

Severalty

When title to real property is held by a single person, it is referred to as what form of ownership?

Setback

What is the distance between boundary line of real property and the line indicating where a building could be built?

Net Lease

What type of lease required the lessee to pay the rent as well as other costs in maintaining the rented property?

Transaction licensee

Created in 1998 by Pennsylvania Act 112, known as "The Agency Act", what is the name of the Pennsylvania real estate licensee who is permitted to provide communication or document preparation services without being an agent or advocate for a consumer?

Coast Approach

What approach to value is used when an appriser determines the replacement amount of a building, minus depreciation, plus, the estimated land amount?

Equitable Title

After a buyer's offer to purchase is accepted but before the buyer acquires legal title, what type of interest is held?

Escheat

The conversion of title of real property is know by what term when an owner dies having no heirs or will?

Highest and Best Use

What land usage results in the maximum current value?

Joint Tenancy

What type of ownership exists when one of four owners of real estate dies and his interest reverts to the remaining three?

Equity

Assuming that the value of a property is more than the remaining mortgage balance, what is the difference between the value and the debt?

Package Mortgage

What kind of mortgage is secured by real property as well as appliances?

Open Listing

What is the type of listing contract by which a seller can employ sixteen real estate offices to simultaneously try to sell her real estate with only one commission be paid to the office that finds the buyer?

Estate for Years

What type of interest does a tenant have in real property if the lease expired by itself?

Pennsylvania Human Relations Act

What is the name of the Pennsylvania law on fair housing?

Deed Restriction

What is limitation that is placed on the use of real property that is generally initiated by a seller when the title is conveyed?

Servient Tenement

What is a particular parcel of land called over which an easement runs that benefits and adjacent property?

Voidable

If a victim of fraud or duress challenges the validity of a contract, classification would apply?

Steering

What is the act of directing prospective buyers toward particular areas of a community without regard to financial qualifications?

Annual Percentage Rate

What is the single number called that measures the combined loan interest rate and fianc� charges in relationship to the amount of the loan?

640

how many acres are in a square mile?

Suit for Specific Performance

What legal remedy allows one party in a contract to attempt to solicit the court to force another contract party in default to fulfill the agreed upon contract terms?

Executed

How would a contract be described if all the parties had met all their obligations?

Special Warranty Deed

With what type of deed does the seller guarantee good title to the buyer based upon the seller's ownership interest?

Ballon Payment

What occurs at the end of a mortgage when the loan amount is not fully amortized?

Earnest money Deposit

What is the amount of money called that could be lost to a seller if a buyer breaches the sales contract?

Encroachment

What is a building called that is situated over the boundary line of the real property owner?

Life Tenant

Who is the owner of a life estate?

RESPA (Real Estate Settlement Procedures Act)

What is the law that requires lending institutions to provide borrowers of federally related mortgages with a booklet explaining the settlement costs?

Tenancy in Common

What kind of interest does a condominium unit owner have in the common elements?

Cemetery Salesperson

What PA real estate licensee is neither required to pass a licensing examination nor take any hours of instruction in real estate?

Builder-Owner Salesperson

What PA real estate licensee is required to pass a salesperson licensing emanation but is not required to any hours of real state instruction?

Rental Listing Referral Agent and Builder-Owner Salesperson

What two different categories of PA real estate licensees require no affiliation with a real estate broker?

Special Assessment

If a municipality requires a particular area of the community to have sidewalks, what is the name of the fee charged to each owner for his proportionate share of this public improvement?

Waste

What legal concept identifies the destruction of a property by a life tenant?

Tenancy in Common

What type of ownership exists when two persons own an unequal, fractional interest in real property without the right of survivorship?

Trust Deed or Deed in Trust

What is the type of deed that is used to transfer ownership of real estate from a truster to a trustee?

Blockbusting

What is the attempt by real estate licensees to get listings by persuading owners to sell their homes as the result of a concern about potential buyers who are of a particular minority group?

Bundle of Rights

To what real estate concept do the following expressions refer: control within the law, exclusion, disposition, enjoyment and possession?

General Partner

What is the title of the person who has overall responsibility for the real estate transaction of a limited partnership?

5 years

How long can a Pennsylvania real estate licensee remain inactive after which that person would have to take and pass another licensing examination?

Parole Evidence Rule

What principle of law affecting real estate indicates that prior oral evidence cannot, in most cases, be used to alter the terms of a written contract?

Enhancement of Value Theory

The right of a tradesman or contractor to file a mechanics leon is based on what theory?

Real Estate Licensing Registration Act

What is the name of the law that controls all aspects of real estate in PA?

Improvements

What are man made additions to land called?

Fiduciary

What is the relationship of trust that a seller has with a real estate broker as the result of both parties entering into a listing contract?

Exclusive Right To Sell

According to the Rules and Regulations of the PA State Real Estate Commission, what type of listing contract requires certain words to be printed in bold face type?

Remainderman

What is the name of a third party who receives title to real property upon the death of a life tenant?

Antitrust Laws

What laws prevent real estate brokers from engaging in the discussion of setting fixed rates of compensation?

Lien

What is a claim that is made against a real property owner where the property is held as collateral security because of a debt?

Easement

What is the opportunity of one party to use the land of another for a special purpose?

Suit to Partition

What is the court suit that is filed to terminate the co-onwership interests in common or joint tenancy?

Declaration of Condominium

What is the document that a developer executes and records that creates a condominium?

Redemption

What is the basic right that permits a mortgagor in default to recover a property from a foreclosure sale by paying all owed costs on the property?

Novation

What is the name of a new contract that is used for the purpose of eliminating and replacing an existing contract?

Counteroffer

What is crated when sellers change the buyers' term in a written agreement of sale and then the sellers sign the document?

Delivery of Acceptance

In order for the transfer of the title of real property to take place between two parties in a deed, what must occur?

Quitclaim

What type of deed gives to the grantee the weakest form of title position?

Acknowledged

In order for a document to have the capacity to be recorded in PA it must meet what requirement in addition to being in writing and signed?

Regression

What principal of value indicates that the worth of expensive real estate is decreased by the proximity to inexpensive real estate?

Assignment of Mortgage

What is the transfer of interest in a mortgage from the holder of the mortgage in the primary mortgage market to a new owner for the mortgage in the secondary mortgage market?

Swing Loan or Bridge Loan

What is the name of the temporary loan that is used to help a borrower make a down payment on a new home by releasing the equity from an existing unsold home?

Alienation (Due on Sale)

What clause in a mortgage prevents a seller from allowing a buyer to assume the seller's existing mortgage?

Pur Autre Vie

What is the type of life estate that is based on the life of someone other than the life tenant?

Plottage

What principal of value indicates that uniting two adjoining parcels of land into one tract may result in a higher combined land value?

Sale and Leaseback

What is the type of real estate financing arrangement by which the seller becomes the lessee of the same property?

SEC (Securities Exchange Commission)

What is the name of the federal government agency with which real estate investment securities must be registered?

Constructive Notice

What is the public awareness that is given to everyone when a document is recorded?

Trustee's Deed

What type of deed is used to transfer ownership from the trustee to the beneficiary of a trust?

Riparian

What is the right of a real property owner that defines the property boundary line next to a stream?

Prior Appropriation

What is the real estate principle used in some states that indicates that the right to use water is controlled by the state?

Homeowners Protection Act

What is the name of the law that requires a lender to cancel private mortgage insurance when a borrow has 22% equity in her property based upon the original property value?

Reversionary Interest

What is the particular interest that is he'd when a life estate is ended and the ownership goes back to the original owner?

Common Elements

In what part of condominium unit does the owner have a tenancy in common?

Installment Contract (also known as Contract for Deed or Land Contract)

In what type of real estate contrast involving a transfer of title does the seller usually initially keep the title to the property?

Police Power

Under what government power does a municipality have the right to enforce building codes?

Non-Conforming Use

What is a property called that was in existence before the passage of the present zoning laws and is permitted to operate contrary to those same laws?

Dedication

What is the voluntary transfer of title of private land to a public governmental body?

Point of Beginning (POB)

What is the ending place in a metes and bounds legal description of real property?

Gross Lease

In what type of lease does the lessor pay for the property expenses?

Granting Clause

The actual words of conveyance of title are fond in what part of a deed?

Dual Agency

What concept expresses the simultaneous representation by a broker of two parties with conflicting interests to a real estate transaction?

Gross Rent Multiplier

What variable figure expressed as an appraisal term is used to multiply the estimated monthly rent of a property for the purpose of arriving at a market value of that property?

Fixture

What is an item of personal property called that becomes permanently attached to real property?

Void

What status does a contact have that fails to contain all the essential elements?

Trustee

What is the name of the party who holds the title to real estate in a trust?

Tenancy by the Entirety

What type of concurrent ownership of real property is held solely by a husband and wife?

Specific Lien

What type of lien affects the ownership of only one particular piece of real estate?

Purchase Money Mortgage

What type of mortgage would exist if the real property offered provides the financing for the offeror?

Variance

What is it called when land owner is given municipal approval to build a house higher than is currently allowed by the local ordinances?

Mechanics Lien

A lien filed by a tradesperson against a particular indebted property owner would most probably be an example of what type of lien?

Subagent

According to the law of agency, what kind of fiduciary representative is the selling real estate broker, in relationship to the property owner, as the result of a single agency listing agreement?

General Agency

A real estate property manager typically operates within what type of agency with the property owner?

$20,000

What is the maximum amount of money that can be claimed by an aggrieved person from the Pennsylvania Real Estate Recovery Fund?

Exclusive Right to Sell

What type of listing contract provides the greatest protection of compensation for a real estate broker?

Implied Contract

What type of contract is created neither by a written agreement nor by orally spoken words but only by the actions of the parties?

Tenancy at sufferance

What type of leasehold estate represents the illegal occupation of the leased premises by the lessee?

240

How many hours of real estate instruction are required of a Pennsylvania real estate broker candidate to be eligible for licensing?

1 year

What is the maximum length of time for a Pennsylvania exclusive listing contract?

Margin

What is the difference called between the rate of interest on an adjustable rate mortgage that is based on an economic indicator and the rate of interest on the same adjustable rate mortgage that is charged to borrowers?

Conformity

What principle of value refers to the fact that the highest value occur where real properties are similar to each other?

Buyer Agency Contract

What is the name of the contract that creates a fiduciary relationship between a selling broker and a buyer?

Until Midnight of the 5th day

How long does the purchaser of a time share or campground membership have to cancel following the date the purchaser executed the purchase contract?

Tax Credit

What is the amount of money called that can be subtracted directly from an income tax to reduce that tax?

Independent Contractor

What is the name of the IRS status of a real estate agent in which 90% or more of the income of the agent comes from sales production and through which the agent is individually responsible for paying income and social security taxes?

Deed in lieu of Foreclosure

What is the name of the type of mortgage default arrangement where the mortgagor gives title to the mortgage instead of the traditional legal procedure?

3 Years

From the time of completion of real estate transaction, how long must a Pennsylvania real estate broker keep records for that transaction?

Reciprocal

What type of Pennsylvania real estate license allows a real estate license from another state to sell real estate in Pennsylvania?

Severance

What is the name of the process for changing real property into personal property?

Emblement

What is a seasonal crop referred to that requires routine care and is considered to be personal property?

Easement of Necessity

What type of easement allows access to land-locked land?

Spot Zoning

What is the type of zoning change called when a municipal government allows one area of a community to be zoned differently than the remaining community when the exception is made after the zoning rules were enacted?

Laches

What is the loss of the right of a property owner to file for a court injunction to prevent the violation of a restrictive covenant because of delay or inaction by a property owner?

Intestate

What is the term for the legal status of a person who dies without a will?

Federal National Mortgage Association

What is the most common secondary mortgage warehouse
agency for mortgage service companies?

Offeree

What is the official name of the party in a contract who accepts an offer?

Defeasance

What provision, section or clause in a mortgage requires a satisfaction to be filed and recorded?

Default

What is the term that refers to the breach of a contract?

Affiliated, Employing Broker

From whom may a Pennsylvania real estate associate broker accept monetary compensation for renting a property?

Complete, Good Title

What is the type of title to real property for which a person has ownership, the right of possession and actual possession?

Negative Amortization

What occurs when the rate of interest increases on an adjustable rate mortgage and a payment cap prevents an increase in the monthly mortgage payment to go above the payment cap?

Right of Survivorship

What characteristic of tenancy by the entirety allows the widow of a decreased spouse to retain the property title?

Ground Lease

What type of lease typically allows for the constructive of improvements over a long period of time?

Bill of Sale

Through what means is the title to personal property transferred?

Chain of Title

What is the name of the list of previous owners of real property along with a record of their transfers of title?

Liquidated Damages

What is the name of the compensatory amount money that is typically available to be awarded to the non-defaulting party in a contract as the result of a breach of contract?

Right of First Refusal

What is the opportunity of a party to a contract to have the exclusive privilege to react to an offer prior to any other party?

Transit

What is the name of the instrument that a surveyor uses in conduction a survey?

1 Year

How much time does an aggrieved party have to file a claim for compensation from the Pennsylvania Real Estate Recovery Fund including any reviews an appeals to the court judgment?

Hypothecation

What is the process of pledging real property as collateral security to obtain a mortgage without giving up possession of the property?

Buydown

What is the financing arrangement in which a borrower pays an up-front free to reduce the payments on the loan for the first several years?

Percolation

What is the name of the soil absorption get to determine the type of sewage system to be used on real property?

CRV=certificate of reasonable value

On what form is the value from a VA appraisal reported?

Market Price

In the valuation of real property what is the sold price of real property called?

Private Mortgage Insurance

What protection is needed by a lending institution when a conventional mortgage is given to a borrower who makes a down payment of less than 20%?

10 years

Within what time period must required real estate courses be successfully completed by broker and salesperson candidates prior to passing the appropriate licensing examination?

Management Agreement

What is the name of the contract that is entered into between a property owner and a property manager?

Cooperative Ownership

What is the type of real property ownership in which the title to real property is held by a corporation and the occupants have title to share of stock?

Building Codes

What are the standard of construction called that are required by most municipalities for building houses?

4

How many routing inspections of real estate office are allowed to be conducted each year by the Pennsylvania Real Estate Commission?

Construction Loan

What type of financing is most typically provided by a lending institution when a house is built on unimproved land?

Net Listing

In what type of listing is the fee to real estate broker any amount of the sale price that exceeds a guaranteed amount to the seller?

3 years

After passing the Pennsylvania salesperson's licensing examination, how long does an applicant have to apply for a license before being required to retest?

Acceleration

What clause in a mortgage clause allows the lender to decrease the maturity of the debt and request an immediate full payoff of the mortgage debt when the borrower has breached the terms of the agreement?

Contingency

What is the name of the contract condition upon which the contract is dependent?

Certificate of Title

What is an attorney's written opinion of the status of title called?

3

What is the minimum number of public meetings that are required to be hod each year by the Pennsylvania Real Estate Commission?

Governor of Pennsylvania

Who appoints the members of the Pennsylvania Real Estate Commission?

Down Payment

For the purchase of real property, what is the result of subtraction the amount of financing from the sale price of the property?