Pa practice Exam questions and answers 100% guaranteed success.

Pa practice Exam questions and answers 100% guaranteed success. What are the consequences when a real estate salesperson is found guilty of violating any provision of the Pennsylvania Human Relations Act? The employing broker is liable for the conduct of the salesperson, so the employing broker will also be guilty of the violation. The Pennsylvania Human Relations Commission will notify the state real estate commission of findings of violations against licensees under the Pennsylvania Human Relations Act. The Pennsylvania Human Relations Commission can suspend or revoke the salesperson's license. The Pennsylvania Human Relations Commission must refer the case to HUD for prosecution under appropriate federal law. - correct answer. The Pennsylvania Human Relations Commission will notify the state real estate commission of findings of violations against licensees under the Pennsylvania Human Relations Act. Who is in charge of the perpetual care fund for cemeteries? The local government. The owner of the cemetery. The Federal government. The state government. - correct answer. The owner of the cemetery. In Pennsylvania, which of the following options is legal and will not result in a broker facing suspension or revocation of the broker's license? Selling the licensee's own home as "For Sale by Owner" without disclosing their license status in advertisements. Not depositing rents in escrow received as a property manager for a lessor. Displaying a "For Sale" sign on a property without the owner's written consent. Advising their seller that some known material defects do not need to be included on the property disclosure statement. - correct answer. Not depositing rents in escrow received as a property manager for a lessor. What is the Real Estate Recovery Fund? Fund to provide reimbursement to victims of fraud committed by real estate licensees. Fund to provide reimbursement to persons who lost their property due to natural causes All of the other options are correct Fund to provide reimbursement to victims of stolen property. - correct answer. Fund to provide reimbursement to victims of fraud committed by real estate licensees. Under the terms of a sales contract, the seller is required to pay for and provide a termite certificate. The seller requests that Nelson, the salesperson order one. Nelson does so, knowing he will receive a referral fee directly from the pest control company. The referral fee is not discussed with the seller. Is this a violation of the license law? No, if the fee is less than $25. No, if the fee is split with the broker. Yes, because Nelson did not disclose the compensation to the consumer. Yes, because fees may be paid to Nelson only by the seller. - correct answer. Yes, because Nelson did not disclose the compensation to the consumer. Every licensed broker is required to: keep transaction records for three years. become a member of the local Association of REALTORS®. employ at least one salesperson. maintain escrow account records for five years. - correct answer. keep transaction records for three years. While representing a seller under a listing contract, Jones, the broker learned confidential information about the seller's urgency to sell and minimum acceptable selling price. The listing expired, and the property was listed with a different broker. Jones now represents a buyer client who is interested in making an offer on the property. At this time, Jones: must refer the buyer prospect to the new listing broker to write the offer to purchase. as buyer's agent must disclose to the buyer any information the broker knows about the seller's motivation and minimum acceptable price. must renounce his agency relationship with the buyer and act as the subagent of the seller. may not reveal confidential information of the seller or use it to the advantage of the buyer client. - correct answer. may not reveal confidential information of the seller or use it to the advantage of the buyer client. Sarah, a broker is found guilty of fraud and ordered to pay monetary damages to a buyer. What is the time frame within which the injured party may file a claim for payment from the Real Estate Recovery Fund? Three years after the alleged violation occurred. One year after termination of the proceedings in connection with the judgment awarded to the consumer. One year after the alleged violation occurred. Three years after the date on which a professional relationship of trust and accountability commenced between the broker and the consumer. - correct answer. One year after termination of the proceedings in connection with the judgment awarded to the consumer. The maximum compensation that will be paid from the Real Estate Recovery Fund to satisfy claims against a licensee is: $20,000. $100,000. $200,000. $10,000. - correct answer. $100,000. With respect to real estate purchases, Regulation Z requires lending institutions to inform borrowers of the: appraised value of the property. total amount of closing costs. exact amount of monthly payments. true cost of obtaining credit. - correct answer. true cost of obtaining credit. The Consumer Notice, which advises consumers of the business relationships allowed by the Real Estate Licensing and Registration Act, must be presented: At any face-to-face meeting with a buyer or seller. To buyers only, at the first substantive contact. To any buyer or seller, prior to writing a sales contract. To any buyer or seller, at the first contact, where a substantive discussion about real estate occurs. - correct answer. To any buyer or seller, at the first contact, where a substantive discussion about real estate occurs. Immediately upon passing the salesperson licensing examination, which of the following activities may an individual legally engage in? Prepare and present a comparative market analysis to a prospective seller. Hold open houses for the public under the direct supervision of a broker. Negotiate a loan on real estate on behalf of a broker. Sale of business opportunities to the public. - correct answer. Sale of business opportunities to the public. A consumer contacts Bauer, a licensee to discuss the possibility of Bauer handling the sale of a property owned by the consumer. Bauers' responsibility is to: advise the consumer that after listing the property for sale, any cooperating broker who shows the property will be acting as a buyers agent. provide the consumer with a written guarantee concerning the amount and type of advertising the broker will provide. provide a Consumer Notice to the prospect before engaging in any substantive discussion about real estate needs with the consumer. advise the seller that all listing contracts must be in writing on forms approved by the commission. - correct answer. provide a Consumer Notice to the prospect before engaging in any substantive discussion about real estate needs with the consumer. Nelson, a broker is employed as a property manager. The building owner and Nelson agree that the building air conditioning system needs to be replaced, and Nelson is authorized to contract for the work to be done. Without the knowledge of the owner, Nelson and the contractor selected to do the work agree that as a condition of receiving the contract the contractor will install central air conditioning in the personal residence of Nelson at no charge to Nelson. Could this action result in disciplinary action against Nelson by the commission? Yes, because accepting any undisclosed compensation or profit for expenditures on behalf of an owner is a violation of the license law No, because Nelson has been authorized by the owner to contract to have the work done. Yes, because only the owner is authorized to contract for work to be done on the building he / she owns. No, because terms of the contract between Nelson and co - correct answer. Yes, because accepting any undisclosed compensation or profit for expenditures on behalf of an owner is a violation of the license law Which of the following statements is false in regards to the Real Estate Recovery Fund? A licensee on whose behalf money has been paid must reimburse the fund plus interest at 10% per year. A licensee on whose behalf money has been paid will have his or her license automatically suspended as of the date of payment. The maximum liability of the fund shall not exceed $20,000 for any one claim. The recovery fund does not apply to the sale of campground memberships. - correct answer. A licensee on whose behalf money has been paid must reimburse the fund plus interest at 10% per year. Commissions earned by a broker in a real estate sales transaction: may be deducted from the earnest money deposit and claimed by the broker as soon as the buyer and seller execute the purchase and sales agreement. are based on a schedule of commission rates set by the multiple listing service. may be shared with an unlicensed person who is employed by the broker, provided that such person aided the broker in bringing the buyer and seller together. are determined by agreement of the broker and the consumer. - correct answer. are determined by agreement of the broker and the consumer. A licensed salesperson may perform all of the following activities for or on behalf of his / her employing broker except: buy or offer to buy real estate. appraise single family property. lease commercial office space. negotiate a loan on real estate. - correct answer. appraise single family property. Which of the following could be construed as the unauthorized practice of law? Providing each party with a written estimate of reasonably foreseeable expenses associated with the sale before the agreement of sale is executed. Making sure that the written agreement of sale includes a statement as to whether the broker is the agent of the seller or the agent of the buyer. Keeping copies of all documents involved in the transaction in his / her files for 3 years after consummation of the transaction. Informing the buyer of the broker's personal opinion of the condition of the seller's title to the property. - correct answer. Informing the buyer of the broker's personal opinion of the condition of the seller's title to the property. A broker lists a commercial property for sale. The listing: is required to be an exclusive-right-to-sell contract. is exempt from requirements governing disclosures regarding the Real Estate Recovery Fund. must include a cancellation notice to terminate the contract after the original term. must state that payments of money received by the broker on account of a sale shall be held by the broker in escrow pending consummation or termination of the transaction. - correct answer. must state that payments of money received by the broker on account of a sale shall be held by the broker in escrow pending consummation or termination of the transaction. A commercial office building sold for $1,000,000. The buyer paid $400,000 as a down payment and secured a $600,000 first mortgage loan. How much is the Pennsylvania state transfer? $10,000 $6,000 $3,000 $16,000 - correct answer. On a $1,000,000 sale, the state transfer tax is $10,000 ($1,000,000 x 1%). The Pennsylvania Realty Transfer Tax is 1% of the full sale price. An airline pilot told Harrison, a broker about some friends who were looking for a new home. Harrison contacted the friends and eventually sold them a house. When may Harrison pay the airline pilot a referral fee? As soon as a valid sales contract is signed by the parties. As soon as Harrison begins working with the buyer prospect. Never, since a broker may not pay a referral fee to an unlicensed individual. Only after the sale closes. - correct answer. Never, since a broker may not pay a referral fee to an unlicensed individual. If an agreement of sale is conditioned on the ability of the buyer to obtain mortgage financing, all of the following must be included in the agreement except: type of mortgage. nature and extent of assistance that the broker will render to the buyer. a copy of the buyer's credit report. deadline for the buyer to obtain the mortgage loan. - correct answer. a copy of the buyer's credit report. Which of the following options is true regarding agency relationships between licensees and consumers? If a broker chooses to represent both buyers and sellers under agency relationships, the broker must adopt a policy appointing designated agents An open listing agreement creating an agency relationship between a seller and broker may be an oral agreement A broker may not represent both a buyer and seller as an agent in the same transaction All agency relationships must be expressly created by written agreements - correct answer. An open listing agreement creating an agency relationship between a seller and broker may be an oral agreement When discussing the possibility of listing a large parcel of vacant land with an owner, Jones, the broker determines that he would like to secure an option to purchase the property. How should Jones proceed? When discussing the possibility of listing a large parcel of vacant land with an owner, Jones, the broker determines that he would like to secure an option to purchase the property. How should Jones proceed? Arrange to have the owner enter into an option agreement with a straw party selected by Jones in order to avoid a conflict with the seller. Secure an exclusive-right-to-sell long-term listing but refuse to aggressively market the property until his option has expired. Include language in the listing contract granting the option to Jones for purchase of the listed property. - correct answer. When discussing the possibility of listing a large parcel of vacant land with an owner, Jones, the broker determines that he would like to secure an option to purchase the property. How should Jones proceed? When property is sold in a foreclosure proceeding, and the sale does not bring sufficient funds to cover the senior mortgages, the original mortgagor may be subject to a: deficiency judgment. foreclosure judgment.