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PA REAL ESTATE EXAM
QUESTIONS WITH CORRECT ANSWERS
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"What happens to you if you are involved in a case and cannot pay the judgment amount, and the
consumer is awarded money from Pennsylvania's Real Estate Recovery Fund? - CORRECT
ANSWER You will be suspended and cannot be reinstated until you pay back the fund at 10%
interest." "Mackenzie is a real estate licensee in Pennsylvania. She accepted a listing on the seller's condition that she not show the property to any families with teenagers, even though she doesn't
intend to follow through with the condition. Did Mackenzie do anything wrong? - CORRECT
ANSWER Yes, it's a violation to accept discriminatory listings."
"Gunther is a new licensee in Pennsylvania, but he's moving to a different area of the state and
wants to affiliate with a different broker. What must he do to make this happen? - CORRECT
ANSWER Notify the commission within 10 days after the change, pay a fee, and return his
license to the commission." "If the Pennsylvania State Real Estate Commission revokes a license, how long does the
revocation usually last? - CORRECT ANSWER At least five years"
"Jack is a Pennsylvania licensee. He represents Carter in a transaction. Rachel is the other party to
the transaction. Which of the following statements is true? - CORRECT ANSWER Jack can keep
both parties informed about the transaction" "A broker wants to compensate an individual who assisted with the sale of a particular commercial property. What must be true in order for this compensation to be legal in
Pennsylvania? - CORRECT ANSWER The individual must also be a licensed broker."
"In Pennsylvania, who or what entity receives complaints filed against a licensee? - CORRECT
ANSWER Department of State"
"Tony has been a real estate salesperson in Pennsylvania for two years. He currently works for ABC Realty in Scranton. However, he is interested in associating with XYZ Brokerage in the
Poconos, where he has a second home. Which of the following is the best option for To -
CORRECT ANSWER Tony should decide to work for either ABC Realty or XZY Brokerage, but
can't work for both at the same time." "Katherine is a buyer in Pennsylvania. She made an offer on a property and provided earnest money payment on Tuesday. The seller accepted the offer on Wednesday. What happens to
Katherine's earnest money? - CORRECT ANSWER It must be deposited by end of day
Thursday." "It's a Tuesday afternoon and Pam, a Pennsylvania broker, just accepted an earnest money check from a buyer whose offer was accepted by Pam's seller. What does Pam need to do with this
check? - CORRECT ANSWER Deposit the money in a trust account by the end of the day
Wednesday." "You let your Pennsylvania salesperson license expire a while back. Life keeps you busy, but eventually you decide you want to get back out there in the real estate world. When you check your records, you realize your license expired over five years ago! What do you have to do to get
your licensed re-activated? - CORRECT ANSWER Retake the license exam, reapply for
licensure, and re-affiliate with a broker." "Which of the following individuals may qualify for appointment to the Pennsylvania State Real
Estate Commission? - CORRECT ANSWER Dennis, who has been a licensed real estate broker
for five years and has sold cemetery lots for 10 years"
"Roger is acting as a buyer's agent in Pennsylvania. Which of the following statements is true? -
CORRECT ANSWER Roger can show a property a buyer client is interested in to other buyers
without breaching any duties to the client." "Becca won a two-day Bahamas cruise, the only stipulation being that she attend a timeshare presentation beforehand. She decided to purchase a timeshare in Pennsylvania, but the next day
had a change of heart and decided to cancel. Which of the following is true? - CORRECT
ANSWER Becca can go on the cruise and isn't required to pay back the cruise cost."
"What is a requirement to qualify for a campground membership salesperson license? -
CORRECT ANSWER Successful completion of 15 hours in: Basic contract law; sales practices
and procedures; sales ethics and basic theory of campground memberships" "Marjory is a Pennsylvania salesperson representing a seller on behalf of her broker, Leonard. Kenneth is a salesperson representing a buyer on behalf of his broker, Jason. Marjory's listing
"How many brokers can you be affiliated with as a Pennsylvania licensee? - CORRECT ANSWER
One" "Which Pennsylvania licensee owns or manages a business that collects rental information in
order to refer tenants to rental units? - CORRECT ANSWER Rental listing referral agent"
"A/an ______ is a person or entity who owns or manages a business that collects rental
information for the purpose of referring prospective tenants. - CORRECT ANSWER Rental
listing referral agent" "Which organization specifies in their Rules and Regulations the standards of conduct that each
Pennsylvania licensee must follow? - CORRECT ANSWER State Real Estate Commission"
"When does your real estate license expire in Pennsylvania? - CORRECT ANSWER May 31 of
every even numbered year" "Jim and Tammy own a family farm in Pennsylvania. They have decided to retire to Florida. Ten years ago, water testing revealed that the well was contaminated from agricultural runoff and
pesticides. Now that they are ready to sell the farm, what should they do? - CORRECT
ANSWER Identify the past issues and what, if any action they took"
"Which of the following actions would violate Pennsylvania's Human Relations Act? - CORRECT
ANSWER Jamie is a property manager of several buildings and doesn't show units on the first
floor to women." "According to Pennsylvania law, in which of these situations would it be illegal for the licensee to
disclose a client's confidential information? - CORRECT ANSWER The licensee represents both
parties to the transaction." "Natalie works for Darrell who owns Titanium Realty. Darrell supervises Natalie who meets the
Pennsylvania broker license requirements. Which of the following types of licensees is Natalie? -
CORRECT ANSWER Associate broker"
"What is the maximum outcome if you're convicted of having committed a serious violation in
Pennsylvania and your broker is found to have knowledge of it? - CORRECT ANSWER You and
the broker may both be fined, and you may both have your licenses suspended or revoked."
"Janine holds an active license in another state and is applying for a standard broker's license in Pennsylvania. Which statement best describes what she needs to do related to the licensing
exam? - CORRECT ANSWER She must pass the state portion of the licensing exam."
"Which of the following documents does a Pennsylvania broker need to retain for three years? -
CORRECT ANSWER Expired listing agreement"
"Larry, a Pennsylvania broker, provided a copy of the Consumer Notice to a prospective buyer prior to entering into an agency relationship and showing the buyer several properties. How long
must he retain a copy of the notice? - CORRECT ANSWER He needs to retain a copy of the
notice for at least six months." "Matthew, a Pennsylvania licensee, represents a buyer who's interested in purchasing a property
from Matthew's seller client. Matthew is a ______. - CORRECT ANSWER Dual agent"
"Keirstyn, a Pennsylvania licensee, receives a call from a consumer looking to embark upon a house-hunting adventure. The conversation turns substantive when the consumer begins talking
about budget and other confidential details. What should Keirstyn do? - CORRECT ANSWER
During the phone call, provide oral disclosure of possible agency relationships to the consumer, then follow up with the written disclosure at the first in-person meeting." "If your Pennsylvania license has been expired for more than ______ year(s), you must retake the
exam and reapply for licensure. - CORRECT ANSWER Five"
"Pennsylvania broker Ben was told by his seller client that the basement on his new listing leaks. However, when reviewing the property condition disclosure the seller completed, there's no
mention of this leak. What should Ben do? - CORRECT ANSWER Ask the seller if the leak has
been fixed." "Monica is a licensee in Pennsylvania. She's been disclosing to sellers all over town that she
represents the buyer. What type of agent is she? - CORRECT ANSWER Buyer's agent"
"A/an ______ is a person who is a full-time employee of someone who is the developer and
owner of residential dwellings in Pennsylvania.. - CORRECT ANSWER Builder-owner
salesperson"
"You notice someone that appears to be very young saying they passed their exam and just got
their Pennsylvania broker's license. What can you assume about their age? - CORRECT
ANSWER They are at least 21."
"Ivory is a Pennsylvania broker. Which of the following statements related to her associated
licensees is true? - CORRECT ANSWER She must adequately supervise them."
"Which statement about real estate business in Pennsylvania is true? - CORRECT ANSWER
Every licensed broker must have a fixed place of business." "Emma just signed a contract to purchase a timeshare in Pennsylvania. If she wants to cancel,
within how many days must she act? - CORRECT ANSWER Five"
"Which of the following locations meets the requirements for a main real estate office in
Pennsylvania? - CORRECT ANSWER A private office in a broker's home that has a separate
entrance. The brokerage name is displayed on a sign outside and on the door."
"Which option describes the broker's application process in Pennsylvania? - CORRECT
ANSWER Apply in writing on an approved form within 3 years of passing exam, include place of
business for which license is desired." "Pennsylvania law allows timeshare purchasers ______ days from contract execution to cancel
the purchase - CORRECT ANSWER Five"
"What can you do with an expired Pennsylvania real estate license? - CORRECT ANSWER List
your own house for sale"
"Which is a requirement for the Pennsylvania real estate broker's license? - CORRECT
ANSWER 240 hours in approved real estate instruction, including fair housing and ethics"
"Carter is a real estate salesperson in Pennsylvania. He's got a new listing and is ready to advertise
it for sale. What must he have first so he can do this? - CORRECT ANSWER Permission from the
owner to advertise the property" "According to Pennsylvania law, which of the following statements related to designated agency
is true? - CORRECT ANSWER Brokers may designate licensees at any time, as long as they get
the client's permission." "To legally perform real estate activities in Pennsylvania, you must have a real estate license, pass the written exam, keep your license current by completing continuing education courses, and
______. - CORRECT ANSWER Follow the standards of conduct"
"What states have reciprocal licensure agreements with Pennsylvania and allow you to practice
real estate there? - CORRECT ANSWER Arkansas, Georgia, Louisiana, Maryland,
Massachusetts, and New York" "Which of the following do Pennsylvania licensees owe to all consumers, regardless of agency
relationships? - CORRECT ANSWER Engage in honest and good-faith dealings."
"Parker is a licensee in Pennsylvania. Under license law, which of these duties does he owe to all
consumers? - CORRECT ANSWER Reasonable skill and care"
"Courteney is acting as a transaction licensee. According to Pennsylvania law, which of the
following pieces of information can Courteney disclose? - CORRECT ANSWER The buyer's
financing has hit a snag and will delay closing for two weeks." "Celia holds a cemetery salesperson's license in Pennsylvania. What can we reasonably assume
about her? - CORRECT ANSWER She's at least 18"
"Three days after signing a purchase contract, Emma has decided to cancel her purchase of a
timeshare in Pennsylvania. How many days does the seller have to refund her deposit? -
CORRECT ANSWER 10"
"Which of the following would require a real estate license in Pennsylvania? - CORRECT
ANSWER A property manager who negotiates and enters into leases on the owner's behalf"
"A Pennsylvania broker with 30 years of real estate experience has worked with a real estate attorney for so long, that the broker could answer questions as the attorney would and provide
the same advice to clients. Why might this lead to license revocation? - CORRECT ANSWER
This is considered practicing law without a license to do so, which is a serious violation and probably illegal." "ake continued performing real estate activities in Pennsylvania even though he failed to keep his
license current. Which of the following actions could the commission take? - CORRECT
ANSWER Impose civil penalties of as much as $1,000."
"You just saw the latest reports, and your brokerage outsold everyone else in your Pennsylvania town. On your next round of advertising you decide to include "Top Selling Broker in Town!" What
else must you also include on the advertisement? - CORRECT ANSWER Identify the specific
municipality where your market is" "Which of the following actions would be appropriate for a Pennsylvania licensee to engage in
with a consumer the licensee does not represent? - CORRECT ANSWER Suggesting the
consumer seek professional legal advice when matters are outside the scope of the licensee's expertise"
"According to Pennsylvania law, which statement is true regarding licensees and inspections? -
CORRECT ANSWER Licensees aren't required to conduct an independent inspection of the
property."
"Which of the following individuals is acting within Pennsylvania license law? - CORRECT
ANSWER Savannah didn't put a for sale sign in the yard of her new listing until she had a written
contract in place permitting her to do so."
"How long must Pennsylvania brokers retain deposits and other escrow funds? - CORRECT
ANSWER Until either transaction closing or a termination prior to the transaction closing"
"A/an ______ is an individual or entity who operates in a field limited to mausoleum spaces and
burial sites in Pennsylvania. - CORRECT ANSWER Cemetery broker"
"Ryan is a newly licensed salesperson in Pennsylvania who's landed his first listing. Which of the
following actions should he take relative to the listing agreement? - CORRECT ANSWER Use a
pre-printed form provided by his broker." "Steven is Pennsylvania salesperson. A buyer has given him an earnest money check. When must
Steven turn that check over to his broker? - CORRECT ANSWER Promptly"
"Vanna is a Pennsylvania broker. She's represented her seller client, Samuel, for a few weeks and the duration of their listing agreement is six months. Bonnie, a buyer who's interested in Samuel's property, recently approached Vanna and requested that Vanna represent her. From whom does
Vanna need to get written consent to represent both parties in this transaction? - CORRECT
ANSWER Vanna needs both Samuel and Bonnie's written consent."
"Which of the following individuals must complete 14 hours of continuing education in the two
years leading up to their Pennsylvania license renewal? - CORRECT ANSWER Veronica, who
holds a standard salesperson's license" "Per Pennsylvania license law, which of these items is required to be included in a sales contract?
- CORRECT ANSWER Sales price and closing and possession date(s)" "Sarina filed a complaint against a Pennsylvania real estate licensee that was related to a possible violation of the Human Relations Act. This is the first time the licensee has faced a complaint.
What role does the Pennsylvania State Real Estate Commission serve in this investigation? -
CORRECT ANSWER The Pennsylvania State Real Estate Commission must wait at least 90 days
before initiating its own investigation related to the complaint." "Taylor is a real estate licensee in Pennsylvania. To try to solicit more sales, she's advertising a small gift to prospective buyers and sellers who close on a transaction within the next three
months. Can she do this? - CORRECT ANSWER Yes, provided the advertisements includes a
description of the gift, requirements for receipt, limitations, and fair market value." "Wally is a Pennsylvania licensee. He's planning to purchase a house with several acres of land from seller Seth. Based on Wally's expertise, he believes the property is being underutilized and plans to divide the land into several separate lots to sell off individually. What does Wally need to
disclose to Seth? - CORRECT ANSWER Wally must disclose his true intention related to the
property." "In Pennsylvania, who must be designated as trustee of escrow funds in custodial or trust
accounts? - CORRECT ANSWER The broker"
