Pennsylvania Real Estate Fundamentals Final Exam Questions And Answers
If you are looking to become a licensed real estate agent in the state of Pennsylvania, you will need to pass the Pennsylvania Real Estate Fundamentals final exam. This exam covers a wide range of topics related to real estate, including property ownership, contracts, and real estate finance. In this article, we will provide you with some of the most commonly asked questions and answers from the Pennsylvania Real Estate Fundamentals final exam.
What is the difference between real property and personal property?
Real property is defined as land and anything permanently attached to it, such as buildings and trees. Personal property, on the other hand, is defined as any property that is not real property, such as cars and furniture.
What is a lease?
A lease is a contract between a landlord and a tenant that specifies the terms and conditions of the rental agreement, including the amount of rent, the length of the lease, and any restrictions or limitations on the use of the property.
What is a deed?
A deed is a legal document that transfers ownership of real property from one party to another. It contains a description of the property, the names of the parties involved, and any conditions or restrictions on the transfer of ownership.
What is a mortgage?
A mortgage is a loan that is used to purchase real property. The property serves as collateral for the loan, which means that if the borrower fails to make payments, the lender has the right to foreclose on the property and sell it to recover their losses.
What is the difference between a mortgage and a deed of trust?
A mortgage is a loan that is secured by a property, while a deed of trust is a legal document that transfers the title of the property to a trustee until the loan is paid off. In Pennsylvania, deeds of trust are more commonly used than mortgages.
What is title insurance?
Title insurance is a type of insurance that protects the owner of a property against any title defects or claims that may arise after the property has been purchased. It is typically purchased at the time of closing and is required by most lenders.
What is a home inspection?
A home inspection is an examination of a property by a licensed home inspector to assess its condition and identify any potential problems or safety hazards. It is typically performed before the sale of a property is finalized.
What is an appraisal?
An appraisal is an assessment of the value of a property, typically performed by a licensed appraiser. It is often required by lenders to ensure that the property is worth the amount of the loan.
What is a contingency?
A contingency is a clause in a contract that specifies certain conditions that must be met before the contract can be finalized. For example, a buyer may include a contingency that the sale is contingent upon the property passing a home inspection.
What is earnest money?
Earnest money is a deposit made by a buyer to show that they are serious about purchasing a property. It is typically a percentage of the purchase price and is held in escrow until the sale is finalized.
What is a closing?
A closing is the final step in the sale of a property, where all of the necessary documents are signed and the funds are transferred from the buyer to the seller.
What is a real estate broker?
A real estate broker is a licensed professional who assists buyers and sellers in the purchase and sale of real property. They can also supervise other agents and brokers.
What is a real estate agent?
A real estate agent is a licensed professional who assists buyers and sellers in the purchase and sale of real property. They work under the supervision of a broker.
What is a dual agency?
A dual agency is when a real estate agent represents both the buyer and the seller in a transaction. This can create a conflict of interest and is not allowed in all states.
What is a fiduciary?
A fiduciary is a person who is legally responsible for acting in the best interests of another person or entity. In real estate, brokers and agents have a fiduciary obligation to their clients.
What is a commission?
A commission is a fee paid to a real estate broker or agent for their services in helping to buy or sell a property. The commission is typically a percentage of the sale price.
What is an exclusive listing?
An exclusive listing is when a seller gives one real estate agent the exclusive right to sell their property. This means that no other agents can list the property for sale during the term of the agreement.
What is a net listing?
A net listing is when a seller sets a minimum price for their property and any amount above that price is considered the commission paid to the real estate agent. This type of listing is illegal in some states.
What is a comparative market analysis?
A comparative market analysis is an assessment of the value of a property based on recent sales of similar properties in the area. It is often used by real estate agents to help determine the appropriate price for a property.
What is a real estate investment trust?
A real estate investment trust (REIT) is a company that owns and manages income-producing real estate properties. Investors can purchase shares in the REIT, which provides them with a share of the income generated by the properties.
Conclusion
The Pennsylvania Real Estate Fundamentals final exam covers a wide range of topics related to real estate. By studying the common questions and answers outlined in this article, you can increase your chances of passing the exam and becoming a licensed real estate agent in the state of Pennsylvania.