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PA REAL ESTATE STATE PORTION
QUESTIONS AND ANSWERS (100% PASS)
"If you wish to change employers, you must: - CORRECT ANSWER notify the Commission no
later than 10 days after the change of employment, pay fee, surrender current license and wait for new one"
"Real Estate Recovery Fund - CORRECT ANSWER fund used to compensate victims of fraud,
misrepresentation by salesperson or broker. Max comp of 20k per claim, 100k per licensee" "After a disciplinary hearing, a report must be submitted to the Commission after which time the
Commission may do any of the following, except? - CORRECT ANSWER Arrest the licensee"
"In addition to the penalties the Commission may impose under the authority found in Section 455.604 of RELRA, an additional civil penalty of up to $1,000 may also be ordered pursuant to the authority found in Section 455.305. That section allows the additional penalty to be imposed by a
vote of any of the following, except? - CORRECT ANSWER The three oldest members of the
Commission"
"A broker who wishes to open a branch office must ____ - CORRECT ANSWER obtain a branch
office license" "If the broker decides to delegate mgmt of a branch office, the person who assumes the duties
must be a(n) - CORRECT ANSWER associate broker"
"When a broker changes his/her business address, a change of address must be submitted to the
Commission by - CORRECT ANSWER the broker and ALL licensees working in the office"
"The offering statement given to prospective purchasers under a promotional land sale plan must
include information about - CORRECT ANSWER - nearby recreational facilities- public
transportation and utilities- a detailed description, price and terms of the offer."
"A person who holds a real estate salesperson license who wishes to sell timeshares - CORRECT
ANSWER is NOT required to obtain a timeshare salesperson license."
"A person who is licensed as a broker or salesperson in another state may obtain a PA license by
submitting an application and ___ - CORRECT ANSWER passing the PA portion of the license
exam."
"Real Estate advertising on the Internet must include - CORRECT ANSWER *the name of the
company as it appears on the licensethe jurisdiction where the licensee's license is held.the city and state where the licensee's office is located." "Unless otherwise agreed, a licensee owes no duty to conduct an independent ___________ of the property and owes no duty to verify the accuracy or completeness of any representation
made by a consumer so long as it is considered to accurate and reliable. - CORRECT ANSWER
inspection"
"Who is included in protected class "familial status"? - CORRECT ANSWER The FHA prohibits
discrimination on this basis including: children under the age of 18 living with parents/guardians, pregnant women, and people seeking custody of children under 18"
"How long does one have to apply for the RE recovery fund after final judgement? - CORRECT
ANSWER making said application no more than one year after the termination of the
proceedings"
"Convincing owners to sell because a specific group of people coming in: - CORRECT ANSWER
Blockbusting, aka PANIC SELLING"
"Broker submitting sworn in process will promise: - CORRECT ANSWER Attesting to the
applicant's good reputation for honesty, trustworthiness, integrity and competence. Certifying that he will actively supervise and train the applicant."
"Corporeal - CORRECT ANSWER right of ownership in material things, something tangible
such as a building"
"Incorporeal - CORRECT ANSWER rights to property having no physical existence. something
intangible such as mortgage"
"freehold - CORRECT ANSWER estate, or ownership interest that has indefinite duration but
that lasts at least as long as the lifetime of present title holder"
"Rental Listing Referral Agent - CORRECT ANSWER person who owns or manages a business
which collects rental info for purpose of reffering tenants to rental units"
"escrow account shall: - CORRECT ANSWER maintained in a insured bank, designate broker as
trustee, provide for the withdrawal of funds without prior notice, only be used for escrow purposes" "an ad by a licensee for the solicitation, sale or offering for the sale of real estate that employs
lotteries or contests that offer prizes or gifts: - CORRECT ANSWER must have description of
each prize, prerequisites for receiving each prize, limitation on the number of prizes, market value of each, and odds of winning each"
"an ad by a broker about "sales volume" or "production" shall only refer to: - CORRECT
ANSWER closed transactions. also identify what market the transactions are comprised of"
"an ad by a broker about the number of offices they operate: - CORRECT ANSWER shall refer
to only the ones that have been issued branch office licenses by the commission"
"RELRA also governs: - CORRECT ANSWER promotional land sales and requires any person to
register with the commission for approval, and comply with such restrictions and commission. application must give detail and sales must give propspective purchaser an offering statement" "A broker shall not ............deposits or other escrows or property of another person with the
broker's own funds or property. - CORRECT ANSWER Commingle"
"You must have worked as a licensed salesperson for ............years, or have the equivalent
education and/or experience as determined by the Commission, to take the Broker's exam. -
CORRECT ANSWER 3"
"If a broker receives a security deposit belonging to another under a lease agreement, the
broker's duty to pay over the deposit shall arise? - CORRECT ANSWER When the tenancy
ends" "In order to renew your real estate salespersons license, you must take ............ hours of
Commission approved continuing education classes every two years. - CORRECT ANSWER 14"
"If you change employers, you must notify the Commission no later than ............ days after your
change of employment. - CORRECT ANSWER 10"
"Each member of the commission other than the Commissioner of Professional and Occupational Affairs shall receive reimbursement for reasonable expenses in accordance with Commonwealth regulations and per diem compensation at the rate of $_______ per day for the time actually
devoted to the business of the commission. - CORRECT ANSWER $60"
"A real estate broker may represent both the buyer and the seller in the same transaction if the
dual agency is _____ - CORRECT ANSWER disclosed IN WRITING to both parties"
"A licensee must give notice of his/her ownership interest in a real estate transaction _ -
CORRECT ANSWER at the outset of the transaction"
"The Commission may inspect a real estate office no more than - CORRECT ANSWER 4 times a
year"
"The Commission or its representative may conduct office inspections - CORRECT ANSWER
during regular business hours"
"When conducting an office inspection, the Commission or its representative may NOT inspect -
CORRECT ANSWER the employees' personnel records"
"According to RELRA, a licensee may delegate agency to a subagent - CORRECT ANSWER with
the principal's written consent"
"Under RELRA, a seller's agent is NOT required to - CORRECT ANSWER seek additional offers
after a sales agreement is in place"
"A licensee who does not have an agency relationship with either party is known as a - CORRECT
ANSWER transaction licensee"
"A broker may delegate authority to make withdrawals from an escrow account to - CORRECT
ANSWER a licensed employee only"
"One difference between the PA Human Rights Act and federal law is that PHRA prohibits
discrimination on the basis of - CORRECT ANSWER age"
"When a salesperson is found guilty of violation of the license law, the Commission may take
disciplinary action against ____. - CORRECT ANSWER both the salesperson and the broker"
"If a licensee's license is revoked, he/she may petition for a new license _____. - CORRECT
ANSWER after 5 years."
"Any advertising placed by a licensee must include the employing broker's _____. - CORRECT
ANSWER business name and phone number"
"A licensee selling his/her own property must include his/her status in an ad _____. - CORRECT
ANSWER unless the property is listed with a real estate company."
"A licensee may receive compensation from a broker other than the employer - CORRECT
ANSWER Under NO circumstances"
"In a cooperative transaction, a broker may pay compensation to - CORRECT ANSWER the
cooperating broker"
"A licensee may pay a referral fee to an unlicensed person _____ - CORRECT ANSWER under
NO circumstances" "In order to place a "For Sale" or "For Rent" sign on an owner's property, a licensee must have
_____ - CORRECT ANSWER the owner's written permission."
"Under RELRA, a listing agreement must include - CORRECT ANSWER a definite termination
date" a transaction. Rachel is the other party to the transaction. Can Jack keep both parties informed
about the transaction? - CORRECT ANSWER Yes, he can keep both parties informed about the
transaction." "Which of the following documents does a PA Broker need to retain for three years? Consumer
Notice, Expired Listing Agreement, Sub-Agent Agreement, Transaction Licensee Agreement -
CORRECT ANSWER Expired Listing Agreement"
"The best time for a seller's agent to disclose his/her agency relationship to a potential buyer is
when ____ - CORRECT ANSWER the buyer shows serious interest in a property. (At the latest,
it must be disclosed when a written offer is submitted)" "In order to be regulated under laws and rules related to promotional land sales, a property must
consist of at least ___ - CORRECT ANSWER 50 lots or shares or 25 acres"
"Possible penalties for fair housing violations - CORRECT ANSWER $16,000 for first offense-
$37,500 for second offense within five years- $65,000 for third violation within seven years"
"All of the following must satisfy an education requirement prior to licensure EXCEPT - CORRECT
ANSWER CEMETERY SALESPERSONS. A cemetery salesperson is employed by a broker or a
cemetery broker for the exclusive purpose of the cemetery lot sales. No education or examination is required for this license." "Amount of notice that the Commission will provide licensees when time comes to renew their
licenses. - CORRECT ANSWER 2-3 months before"
"You must submit a sworn statement by the broker with whom you will be affilliated certifying
that the broker will actively: - CORRECT ANSWER supervise and train you"
"After a commission hearing has taken place, a licensee's license status: - CORRECT ANSWER
Revocation or suspended status"
"You must provide a copy of any real estate contract to all signatories: - CORRECT ANSWER at
the time of execution"
"Who owns the common areas in a condo building? - CORRECT ANSWER The corporation.
Which unit owners own share of the corporation"
"Must PA property management companies have a real estate brokers license? - CORRECT
ANSWER YES. Key components of PM are considered RE activities under RE licensing laws"
"If a broker lists their property, what must be on the ad? - CORRECT ANSWER advertise or
market on Internet must make it known who the firm is, where it is located and the jurisdiction where the firm is located."
“RELRA - CORRECT ANSWER Real estate licensing and registration act - the commission is
responsible for administrating and enforcing rules found in RELRA as well as supervising all activities"
"RELRA comission members: - CORRECT ANSWER appointed by the Governor for 5 year
terms. meet on regular basis as needed, but conduct at least one public meeting in 3 cities"
"To become a broker, you must: - CORRECT ANSWER have worked as a licensed salesperson
for at least 3 years"
"After passing salesperson/broker exam, you have _ years to apply for license: - CORRECT
ANSWER 3 years"
"To renew your license, you must take __ hours of continuing education classes every two years,
ALL education should be approved by commission - CORRECT ANSWER 14 hours"
"cannot take any disciplinary action against you without first giving you the: - CORRECT
ANSWER opportunity to be heard, a hearing set by the commission"
"Escrow - CORRECT ANSWER most RE transactions involve the use of escrow. escrow involves
the deposit of funds, a deed, or other legal instrument with a third party until completion. escrow officer is usually an attorney, closing agent or title agent" "brokers must deposit moneys and property belonging to others, in a separate fund account by:
CORRECT ANSWER end of the business day following their receipt. must be must by the
broker until completion"
"if money is expected to be held in escrow for more than 6 months: - CORRECT ANSWER the
broker is encouraged to deposit money into an interest bearing account. the interest earned in account shall be held and disbursed pro rata, in the same manner as the principal amount, unless the parties direct otherwise by agreement. Broker may not claim interest earned unless broker is a lessor"
"a broker or salesperson who is selling or leasing his own real estate: - CORRECT ANSWER shall
disclose his licensed status to a prospective buyer or lessee before enter into an agreement of sale or lease"
"A broker must prominently display ... in the office? - CORRECT ANSWER Broker's license
along with the license of all salespeople working for the broker" "the commission could impose a fine, suspend, or revoke your license if you fail to keep real
estate records for at least ... years - CORRECT ANSWER 3 years"
"The only disclosure that must be presented to consumers in a specific form required by the
Commission is the _____ - CORRECT ANSWER Consumer Notice. the purpose is to inform the
permitted business relationships. must be signed by consumer"
"Before the buyer signs the agreement of sale, he/she must - CORRECT ANSWER acknowledge
receipt of the property disclosure statement"
"A broker's written records of escrow accounts must include - CORRECT ANSWER - the name
of the party to whom the money belongs to- the dates money is received, deposited, and withdrawn- the name of the party from whom the money is received" "Buyer Brit asks his broker to hold his earnest money check until his offer is accepted. This may be
done ____ - CORRECT ANSWER with the written permission of both the buyer and the seller"
"The Real Estate Recovery Fund is funded by - CORRECT ANSWER fees paid by licensees at
initial licensure and at renewal" "An individual who has won a judgment against a licensee may petition the court for payment
from the Real Estate Recovery Fund - CORRECT ANSWER after exhausting all attempts to get
payment from the licensee"
"Licensees who are buying or selling property on their own behalf _____ - CORRECT ANSWER
must disclose their license status" "in the event that a licensee cannot give a consumer the written Consumer Notice in an initial
face-to-face meeting, - CORRECT ANSWER the licensee must provide an oral disclosure and
proceed under the rule." "Jack is a PA licensee. He represents Carter in "Wally is a PA 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
