Pennsylvania Real Estate Salesperson National Licensing Exam Version 3
Practice exam for Salesperson and Broker License Exam under Real Estate Exams (Licensing Exams). 5 sample questions.
Sample Questions
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Question 1
A principal MAY terminate an agency agreement when the:
Correct Answer: B
Rationale: A principal can terminate an agency agreement at any time by mutual written consent with the broker, as agency is based on agreement. Option A is incorrect—presenting a low offer is the broker’s duty; it does not allow unilateral termination without breach. Option C is wrong—disliking a salesperson does not void the contract with the brokerage. Option D is false—an agency coupled with an interest (e.g., power of attorney for broker’s own benefit) is irrevocable, so termination is not allowed.
Rationale: A principal can terminate an agency agreement at any time by mutual written consent with the broker, as agency is based on agreement. Option A is incorrect—presenting a low offer is the broker’s duty; it does not allow unilateral termination without breach. Option C is wrong—disliking a salesperson does not void the contract with the brokerage. Option D is false—an agency coupled with an interest (e.g., power of attorney for broker’s own benefit) is irrevocable, so termination is not allowed.
Question 2
In appraising most residential properties, a real estate appraiser relies primarily on the:
Correct Answer: D
Rationale: The **market data (sales comparison) approach** is the primary method for valuing single-family homes, using recent sales of comparable properties adjusted for differences. Option A (reproduction) estimates exact replica cost—rarely used. Option B (replacement) is cost approach variant but secondary for homes. Option C (income) applies to income-producing properties.
Rationale: The **market data (sales comparison) approach** is the primary method for valuing single-family homes, using recent sales of comparable properties adjusted for differences. Option A (reproduction) estimates exact replica cost—rarely used. Option B (replacement) is cost approach variant but secondary for homes. Option C (income) applies to income-producing properties.
Question 3
Which of the following SHOULD be considered when establishing a listing price for a home?
Correct Answer: A
Rationale: Listing price should reflect **current market conditions**—supply, demand, and recent sales of comparable homes in the same neighborhood. Option B (original cost) is irrelevant to current value. Option C (needed proceeds) is a personal financial goal, not market-based. Option D (nearby community) may differ in desirability, schools, etc.
Rationale: Listing price should reflect **current market conditions**—supply, demand, and recent sales of comparable homes in the same neighborhood. Option B (original cost) is irrelevant to current value. Option C (needed proceeds) is a personal financial goal, not market-based. Option D (nearby community) may differ in desirability, schools, etc.
Question 4
The gross income multiplier (GIM) is BEST used to value:
Correct Answer: C
Rationale: The **GIM** (Price ÷ Gross Income) is a quick valuation tool for **income-producing investment properties** like apartments or commercial buildings. Options A, B, and D are not typically valued using income multipliers—REO and foreclosures use market or cost approaches.
Rationale: The **GIM** (Price ÷ Gross Income) is a quick valuation tool for **income-producing investment properties** like apartments or commercial buildings. Options A, B, and D are not typically valued using income multipliers—REO and foreclosures use market or cost approaches.
Question 5
When mortgages are sold after they have been funded, they are considered part of the:
Correct Answer: C
Rationale: The **secondary mortgage market** involves the buying and selling of existing mortgages (e.g., by Fannie Mae, Freddie Mac). Option A (primary) is origination. Option B and D are unrelated to mortgage trading.
Rationale: The **secondary mortgage market** involves the buying and selling of existing mortgages (e.g., by Fannie Mae, Freddie Mac). Option A (primary) is origination. Option B and D are unrelated to mortgage trading.