Free Pennsylvania Real Estate Practice Exam

Q1.Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers so they can compare the true cost of credit?

• A.RESPA
• B.ECOA
• C.Truth in Lending Act (TILA)
• D.Fair Housing Act

Q2.CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) primarily addresses which environmental concern in real estate?

• A.Noise pollution from airports
• B.Energy efficiency standards
• C.Hazardous waste contamination and cleanup
• D.Water conservation requirements

Q3.A real estate contract contains a clause stating that if the buyer fails to obtain financing by a specified date, the contract will automatically terminate. This type of clause is known as a:

• A.Condition subsequent
• B.Condition precedent
• C.Covenant
• D.Warranty

Q4.Under RESPA (12 U.S.C. § 2601 et seq.), a lender collects escrow funds for property taxes and homeowner's insurance. The annual property tax bill is $4,800 and the annual insurance premium is $1,440. What is the maximum escrow cushion the lender may legally maintain in the escrow account, and what is the maximum initial escrow deposit at closing (including the cushion)?

• A.Cushion: $520; Maximum initial deposit: $1,040
• B.Cushion: $530; Maximum initial deposit: $1,060
• C.Cushion: $520; Maximum initial deposit: $1,560
• D.Cushion: $1,040; Maximum initial deposit: $2,080

Q5.Which federal law prohibits lenders from discriminating against loan applicants based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance?

• A.Equal Credit Opportunity Act (ECOA)
• B.Fair Housing Act
• C.Truth-in-Lending Act
• D.Real Estate Settlement Procedures Act (RESPA)

Q6.According to EPA guidelines, which action regarding underground storage tanks (USTs) is required for real estate professionals when representing clients in commercial property transactions?

• A.Advising clients to investigate potential environmental liabilities associated with USTs
• B.Conducting soil contamination testing on all properties with current or former USTs
• C.Obtaining EPA permits for any existing USTs on the property
• D.Removing all USTs before completing the transaction

Q7.Under Pennsylvania's Real Estate Licensing and Registration Act (RELRA), which of the following actions would constitute 'commingling' and subject a broker to disciplinary action by the State Real Estate Commission?

• A.Depositing client escrow funds into an interest-bearing account
• B.Depositing client escrow funds and personal funds into the same bank account
• C.Maintaining a separate escrow account at a federally insured institution
• D.Transferring escrow funds to the closing agent three days before settlement

Q8.In Pennsylvania, a broker supervises two salespersons in the same firm: one represents the seller and the other represents the buyer in the same transaction. Under RELRA, this arrangement is best described as:

• A.Dual agency, requiring written consent only from the seller
• B.Designated agency, requiring informed written consent from both the buyer and the seller
• C.A transaction licensee relationship for both salespersons automatically by operation of law
• D.An undisclosed dual agency, which is permissible when both agents are supervised by the same broker

Q9.A Pennsylvania buyer's agent is working with a client who makes an offer on a listed property. The buyer's agent discovers that the seller is in financial distress and is highly motivated to accept a below-list-price offer. Under RELRA, what is the buyer's agent's duty regarding this information?

• A.Disclose the seller's financial distress to the seller's agent as a professional courtesy
• B.Keep the information confidential from the seller and seller's agent, and use it to promote the buyer's best interests
• C.Disclose the information to both parties because all material facts must be shared with all parties under RELRA
• D.Disclose the information to the Pennsylvania Real Estate Commission as a material fact affecting the transaction

Q10.A broker manages a 40-unit residential complex on behalf of an owner. A prospective tenant who uses a wheelchair requests a first-floor unit, but all first-floor units are occupied. The prospect asks the broker to add a grab bar in a second-floor unit's bathroom at the prospect's expense. The owner instructs the broker to refuse because 'modifications complicate future re-leasing.' Which of the following best describes the broker's legal obligation under the Fair Housing Act?

• A.The broker must allow the reasonable modification at the tenant's expense and may require the tenant to restore the unit to original condition upon vacating.
• B.The broker may lawfully follow the owner's instruction because the owner bears ultimate liability for Fair Housing compliance, not the broker.
• C.The broker must allow the modification only if the building was constructed after 1991 and therefore subject to design-and-construction accessibility requirements.
• D.The broker must allow the modification and must absorb the cost because disability is a protected class under the Fair Housing Act Amendments of 1988.

Q11.Under the Equal Credit Opportunity Act (ECOA), a lender must notify an applicant of a credit decision within how many days of receiving a completed loan application?

• A.10 business days
• B.30 calendar days
• C.45 calendar days
• D.60 calendar days

Q12.A Pennsylvania broker has two salespersons in the same office — one representing the seller and one representing the buyer in the same transaction. The broker designates each salesperson to represent their respective client exclusively. Under RELRA, how is this business relationship properly classified?

• A.Dual agency, because both salespersons work for the same broker
• B.Designated agency, with the broker acting as a dual agent
• C.Transaction licensee status for both salespersons, since they share a broker
• D.Seller agency only, because the listing salesperson's role takes precedence

Q13.A Pennsylvania salesperson meets a prospective buyer for the first time at an open house. According to RELRA and the Pennsylvania Consumer Notice requirements, when must the salesperson provide the Consumer Notice to this prospective buyer?

• A.Before the buyer signs any offer to purchase
• B.At the first substantive contact with the prospective buyer
• C.Within three business days of the first meeting
• D.Only if the buyer requests information about agency representation

Q14.Which government program allows qualified veterans to obtain home loans with no down payment requirement?

• A.VA loans
• B.FHA loans
• C.USDA Rural Development loans
• D.Conventional loans

Q15.A licensee refuses to show a property to a buyer because the seller said "I don't want my home shown to families with young children." Which of the FHA's "six things you cannot do" has the licensee violated?

• A.Steering only
• B.Blockbusting
• C.Nothing — the licensee was following the seller's lawful instruction
• D.42 U.S.C. § 3604(a) — refusal to sell or rent based on familial status, AND § 3604(d) — making housing unavailable