Free Pennsylvania Property Practice Test — LicenseIQ

Question 1

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 2

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 3

An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

Accepted Answer

Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.

Question 4

Under RELRA, the broker members of the State Real Estate Commission must have been engaged in the real estate business in Pennsylvania for at least:

Accepted Answer

The five broker members must each have at least 10 years in the PA real estate business. Five years is the minimum licensure period for the cemetery-broker member, which is why it is a tempting distractor.

Question 5

An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

Accepted Answer

Profit = $36,000; $36,000 / $180,000 (cost) = 20%. Dividing by the sale price ($216,000) would give 16.7%.

Question 6

A timeshare that lets the owner use the property during a specific, set week each year is a:

Accepted Answer

Fixed-week timeshares assign the same week every year; floating weeks allow different weeks subject to availability.

Question 7

A buyer of a unit in a cooperative receives:

Accepted Answer

In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.

Question 8

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 9

A title search is performed primarily to:

Accepted Answer

A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)

Question 10

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 11

A deed that conveys only whatever interest the grantor has, with no warranties, is a:

Accepted Answer

A quitclaim deed conveys the grantor's interest, if any, with no warranties - often used to clear clouds on title.

Question 12

A Pennsylvania agreement of sale must state the property's zoning classification EXCEPT when the property is zoned:

Accepted Answer

RELRA §608.2 and the Consumer Notice require the zoning classification unless the property, or each subdividable parcel, is zoned solely or primarily for single-family dwellings.

Question 13

A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

Accepted Answer

Fair housing law requires reasonable accommodations for persons with disabilities, including service animals despite no-pet rules.

Question 14

The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

Accepted Answer

Substitution: a buyer will pay no more than the cost of an equally desirable alternative.

Question 15

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 16

Recording a deed in the county records primarily serves to:

Accepted Answer

Recording provides public (constructive) notice, protecting the owner's interest against later claims.

Question 17

The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

Accepted Answer

The income statement (P&L) summarizes income and expenses for the accounting period, typically monthly.

Question 18

After a hearing, the State Real Estate Commission may impose a civil penalty on an unlicensed person practicing real estate of up to:

Accepted Answer

RELRA §305 authorizes a civil penalty of up to $1,000 on a licensee who violates the Act or on anyone practicing without a license, in addition to any criminal penalty. $500 is the criminal first-offense fine cap.

Question 19

A seller complains that the 6% commission she negotiated and signed was too high. What can the State Real Estate Commission do about the rate itself?

Accepted Answer

Pennsylvania has no Commission-set commission rate. Fees are negotiated between the broker and consumer, and the agreement must say so. The Commission disciplines licensees for violations, but it does not award civil damages or set fee schedules.

Question 20

An agreement of sale for a property zoned 'C-2 Commercial' omits the zoning classification. The buyer:

Accepted Answer

Under §608.2, if a required zoning statement is missing, the buyer may declare the agreement void and any deposits must be returned without any court action.

Question 21

The Pennsylvania Real Estate Seller Disclosure Law applies to transfers of residential property containing:

Accepted Answer

68 Pa.C.S. §7103(a) applies the law to real property consisting of not less than one nor more than four residential dwelling units.

Question 22

Pennsylvania real estate licenses expire on:

Accepted Answer

The Commission states that licenses expire May 31 of every even-numbered year, so the current cycle ends May 31, 2026. There is no grace period.

Question 23

A broker managing rental property collects monthly rents for the owner. The rents must be deposited in:

Accepted Answer

Section 35.321(b) does not require rents to be escrowed, but they must go into a rental management account separate from both the escrow and general business accounts.

Question 24

When must the seller deliver the property disclosure statement to the buyer?

Accepted Answer

68 Pa.C.S. §7303 requires delivery of the signed and dated disclosure statement prior to the signing of an agreement of transfer.

Question 25

A person convicted a SECOND time of unlicensed real estate practice in Pennsylvania commits:

Accepted Answer

Under §303, a second or subsequent offense is a third-degree felony punishable by a $2,000 to $5,000 fine and/or 1 to 2 years' imprisonment.

Pennsylvania real estate property practice test

1. A life estate is measured by:

2. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

3. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

4. Under RELRA, the broker members of the State Real Estate Commission must have been engaged in the real estate business in Pennsylvania for at least:

5. An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

6. A timeshare that lets the owner use the property during a specific, set week each year is a:

7. A buyer of a unit in a cooperative receives:

8. Which action may a life tenant take WITHOUT the remainderman's consent?

9. A title search is performed primarily to:

10. In general, a 'stigmatized' property refers to one:

11. A deed that conveys only whatever interest the grantor has, with no warranties, is a:

12. A Pennsylvania agreement of sale must state the property's zoning classification EXCEPT when the property is zoned:

13. A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

14. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

15. Under a land contract (contract for deed), during the payment period the buyer holds:

16. Recording a deed in the county records primarily serves to:

17. The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

18. After a hearing, the State Real Estate Commission may impose a civil penalty on an unlicensed person practicing real estate of up to:

19. A seller complains that the 6% commission she negotiated and signed was too high. What can the State Real Estate Commission do about the rate itself?

20. An agreement of sale for a property zoned 'C-2 Commercial' omits the zoning classification. The buyer:

21. The Pennsylvania Real Estate Seller Disclosure Law applies to transfers of residential property containing:

22. Pennsylvania real estate licenses expire on:

23. A broker managing rental property collects monthly rents for the owner. The rents must be deposited in:

24. When must the seller deliver the property disclosure statement to the buyer?

25. A person convicted a SECOND time of unlicensed real estate practice in Pennsylvania commits:

Sources