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Pa Real Estate Exam Prep EXAM 300
QUESTIONS AND WELL EXPLAINED ANSWERS
LATEST UPDATE JUST RELEASED THIS YEAR
Question: 10. A buyer is interested in seeing a house listed with XYZ Realty but does not wish to
enter into an agency relationship. A salesperson from LMN Realty can show the buyer the house
if: 1. XYZ Realty has obtained the seller's written consent to offer subagency, and the buyer is
given a consumer notice and disclosure stating that LMN Realty represents the seller. 2. XYZ
Realty obtains LMN Realty's consent to subagency, and the buyer is given an Agency Disclosure
Notice, stating that XYZ Realty represents the\nseller. 3. the buyer verbally agrees to a buyer
relationship with LMN Realty. 4. a salesperson from XYZ Realty accompanies them during the
showing. - CORRECT ANSWER✔✔10. 1. The seller must consent in writing in order for the listing
broker to extend an offer of subagency (606.1 (c)). The cooperating broker acting as a subagent
must provide the consumer notice and appropriate documentation to the buyer prospect (606.1
(b)(4)). The buyer is not the one to agree to the offer of subagency.
Question: 11. A real estate broker has signed an agency agreement with a tenant, who is
looking for an apartment to rent. The broker does not charge a fee to prospective tenants;
rather, the broker receives compensation from landlords. The broker tells a landlord that the
prospective tenant could probably pay a somewhat higher rent than the landlord is asking. In
this situation, the licensee\n\n1. owes the fiduciary agency duties to the landlord who pays the
broker's fee.\n2. appropriately disclosed to the landlord under these circumstances.\n3.
violated the fiduciary duties owed to the tenant.\n4. has no duty of confidentiality because the
licensee is not charging a fee to prospective tenants. - CORRECT ANSWER✔✔11. 3. By entering
into an agency agreement with a prospective tenant, the broker assumes full fiduciary
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responsibilities without regard for the issue of compensation. The broker has not operated in a
manner consistent with the best interest of his client.
Question: 12. A licensed salesperson obtains a listing. Several days later, the salesperson meets
prospective buyers at the property and tells them, "I am the listing agent for this property, and
so I'm very familiar with it." He then proceeds to engage in substantive discussion about their
needs and motivations as he shows them the property. Under these circumstances, the
salesperson has\n\n1. failed to comply with state law regarding disclosure of agency
relationships.\n2. properly disclosed his or her agency relationship with the seller.\n3. made a
substantial misrepresentation, because the listing belongs to the broker.\n4. created a dual
agency, which is a violation of the Pennsylvania Real Estate License and Registration Act. -
CORRECT ANSWER✔✔12. 1. The salesperson has failed to comply with the state law. Prior to
engaging in a substantive discussion, the licensee is required to provide the consumer with a
consumer notice disclosing information required by law (608).
Question: 13. A real estate company has entered into agency agreements with both a seller and
a buyer, both of whom have signed a Dual Agency Consent Agreement. The salesperson with
the realty company who has been working with the buyer may\n\n1. provide comparable
market data about recent sales to the buyer.\n2. disclose the buyer's financial qualifications,
motivation, and urgency to the seller.\n3. disclose to the buyer that the seller will accept less
than the listing price.\n4. disclose to the seller that the buyer will pay more than the offering
price. - CORRECT ANSWER✔✔13. 1. In a dual agency situation, the licensee owes certain
fiduciary duties to both parties. Simply providing comparable market data about recent sales to
the buyer does not compromise the duties owed to the seller and would therefore not be a
violation of the agent's duty under the law of agency.
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Question: 14. While representing a seller under a listing contract, 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. The original broker now
represents a buyer client who is interested in making an offer on the property. At this time, the
broker\n\n1. as buyer's agent must disclose to the buyer any information the broker knows
about the seller's motivation and minimum acceptable price.\n2. must refer the buyer prospect
to the new listing broker to write the offer to purchase.\n3. must renounce his agency
relationship with the buyer and act as the subagent of the seller.\n4. may not reveal
confidential information of the seller or use it to the advantage of the buyer client. - CORRECT
ANSWER✔✔14. 4. The agent's duty of confidentiality continues after termination of the agency
relationship. Information gained during the original agency relationship may not be revealed or
used by the licensee for the benefit of the licensee or a third party (606.1 (g)).
Question: 15. While negotiating terms of a listing contract with a seller, the seller suggests a
listing price significantly below what the salesperson believes the property would sell for in the
open market. What is the best course of action for the licensee to follow?\n\n1. List the
property at the seller's price in anticipation of a fast sale and easy commission\n2. Disclose the
salesperson's professional opinion of value and recommend that the property be listed at
market value\n3. Recommend a net listing at the seller's suggested price\n4. Directly purchase
the property at the seller's price without entering into a listing contract - CORRECT
ANSWER✔✔15. 2. The licensee should disclose a professional opinion of value and recommend
that the property be listed at market value. A licensee is expected to exercise reasonable
professional skill and care when dealing with the public and to deal honestly and in good faith
(606.1 (a)).
Question;1. A listing broker procures a ready, willing, and able buyer for his or her seller-
principal. The seller first accepts the buyer's offer in writing, then experiences a change of heart
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and withdraws the original acceptance. In this situation, the broker: 1. may be entitled to collect
a commission. 2. has no recourse because the transaction was never completed. 3. may sue the
buyer. 4. may retain the deposit as compensation. - CORRECT ANSWER✔✔1. 1. The broker has
fulfilled his obligation under the terms of the listing contract with the seller by procuring a
ready, willing, and able buyer and is therefore entitled to recover his agreed-upon
compensation. He may not sue the buyer and cannot retain the deposit as compensation.
Question: 2. In Pennsylvania, brokerage fees are: 1. set by law. 2. set by the Pennsylvania Real
Estate Commission. 3. determined by local groups of brokers operating a multiple listing service.
4. negotiable between the consumer and the broker employed by the consumer. - CORRECT
ANSWER✔✔2. 4. Brokerage fees are established solely as a result of a negotiated agreement
between the broker and the consumer. The broker is required to disclose this to the consumer
at the initial interview (608 (8)). Fees are not determined by law, the real estate commission, or
local brokers.
Question: 3. Commissions earned by a broker in a real estate sales transaction: 1. are
determined by agreement of the broker and the consumer. 2. 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. 3. 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. 4. are
based on a schedule of commission rates set by the multiple listing service. - CORRECT
ANSWER✔✔3. 1. Brokerage fees are established by agreement between the broker and the
consumer to whom the broker provides service. The broker may not share these fees with an
unlicensed individual (604 (a)(12.1)). The broker must maintain the earnest money deposit until
the transaction is consummated or terminated.
Pa Real Estate Exam Prep EXAM 300
QUESTIONS AND WELL EXPLAINED ANSWERS
LATEST UPDATE JUST RELEASED THIS YEAR
Question: 10. A buyer is interested in seeing a house listed with XYZ Realty but does not wish to
enter into an agency relationship. A salesperson from LMN Realty can show the buyer the house
if: 1. XYZ Realty has obtained the seller's written consent to offer subagency, and the buyer is
given a consumer notice and disclosure stating that LMN Realty represents the seller. 2. XYZ
Realty obtains LMN Realty's consent to subagency, and the buyer is given an Agency Disclosure
Notice, stating that XYZ Realty represents the\nseller. 3. the buyer verbally agrees to a buyer
relationship with LMN Realty. 4. a salesperson from XYZ Realty accompanies them during the
showing. - CORRECT ANSWER✔✔10. 1. The seller must consent in writing in order for the listing
broker to extend an offer of subagency (606.1 (c)). The cooperating broker acting as a subagent
must provide the consumer notice and appropriate documentation to the buyer prospect (606.1
(b)(4)). The buyer is not the one to agree to the offer of subagency.
Question: 11. A real estate broker has signed an agency agreement with a tenant, who is
looking for an apartment to rent. The broker does not charge a fee to prospective tenants;
rather, the broker receives compensation from landlords. The broker tells a landlord that the
prospective tenant could probably pay a somewhat higher rent than the landlord is asking. In
this situation, the licensee\n\n1. owes the fiduciary agency duties to the landlord who pays the
broker's fee.\n2. appropriately disclosed to the landlord under these circumstances.\n3.
violated the fiduciary duties owed to the tenant.\n4. has no duty of confidentiality because the
licensee is not charging a fee to prospective tenants. - CORRECT ANSWER✔✔11. 3. By entering
into an agency agreement with a prospective tenant, the broker assumes full fiduciary
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responsibilities without regard for the issue of compensation. The broker has not operated in a
manner consistent with the best interest of his client.
Question: 12. A licensed salesperson obtains a listing. Several days later, the salesperson meets
prospective buyers at the property and tells them, "I am the listing agent for this property, and
so I'm very familiar with it." He then proceeds to engage in substantive discussion about their
needs and motivations as he shows them the property. Under these circumstances, the
salesperson has\n\n1. failed to comply with state law regarding disclosure of agency
relationships.\n2. properly disclosed his or her agency relationship with the seller.\n3. made a
substantial misrepresentation, because the listing belongs to the broker.\n4. created a dual
agency, which is a violation of the Pennsylvania Real Estate License and Registration Act. -
CORRECT ANSWER✔✔12. 1. The salesperson has failed to comply with the state law. Prior to
engaging in a substantive discussion, the licensee is required to provide the consumer with a
consumer notice disclosing information required by law (608).
Question: 13. A real estate company has entered into agency agreements with both a seller and
a buyer, both of whom have signed a Dual Agency Consent Agreement. The salesperson with
the realty company who has been working with the buyer may\n\n1. provide comparable
market data about recent sales to the buyer.\n2. disclose the buyer's financial qualifications,
motivation, and urgency to the seller.\n3. disclose to the buyer that the seller will accept less
than the listing price.\n4. disclose to the seller that the buyer will pay more than the offering
price. - CORRECT ANSWER✔✔13. 1. In a dual agency situation, the licensee owes certain
fiduciary duties to both parties. Simply providing comparable market data about recent sales to
the buyer does not compromise the duties owed to the seller and would therefore not be a
violation of the agent's duty under the law of agency.
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Question: 14. While representing a seller under a listing contract, 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. The original broker now
represents a buyer client who is interested in making an offer on the property. At this time, the
broker\n\n1. as buyer's agent must disclose to the buyer any information the broker knows
about the seller's motivation and minimum acceptable price.\n2. must refer the buyer prospect
to the new listing broker to write the offer to purchase.\n3. must renounce his agency
relationship with the buyer and act as the subagent of the seller.\n4. may not reveal
confidential information of the seller or use it to the advantage of the buyer client. - CORRECT
ANSWER✔✔14. 4. The agent's duty of confidentiality continues after termination of the agency
relationship. Information gained during the original agency relationship may not be revealed or
used by the licensee for the benefit of the licensee or a third party (606.1 (g)).
Question: 15. While negotiating terms of a listing contract with a seller, the seller suggests a
listing price significantly below what the salesperson believes the property would sell for in the
open market. What is the best course of action for the licensee to follow?\n\n1. List the
property at the seller's price in anticipation of a fast sale and easy commission\n2. Disclose the
salesperson's professional opinion of value and recommend that the property be listed at
market value\n3. Recommend a net listing at the seller's suggested price\n4. Directly purchase
the property at the seller's price without entering into a listing contract - CORRECT
ANSWER✔✔15. 2. The licensee should disclose a professional opinion of value and recommend
that the property be listed at market value. A licensee is expected to exercise reasonable
professional skill and care when dealing with the public and to deal honestly and in good faith
(606.1 (a)).
Question;1. A listing broker procures a ready, willing, and able buyer for his or her seller-
principal. The seller first accepts the buyer's offer in writing, then experiences a change of heart
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and withdraws the original acceptance. In this situation, the broker: 1. may be entitled to collect
a commission. 2. has no recourse because the transaction was never completed. 3. may sue the
buyer. 4. may retain the deposit as compensation. - CORRECT ANSWER✔✔1. 1. The broker has
fulfilled his obligation under the terms of the listing contract with the seller by procuring a
ready, willing, and able buyer and is therefore entitled to recover his agreed-upon
compensation. He may not sue the buyer and cannot retain the deposit as compensation.
Question: 2. In Pennsylvania, brokerage fees are: 1. set by law. 2. set by the Pennsylvania Real
Estate Commission. 3. determined by local groups of brokers operating a multiple listing service.
4. negotiable between the consumer and the broker employed by the consumer. - CORRECT
ANSWER✔✔2. 4. Brokerage fees are established solely as a result of a negotiated agreement
between the broker and the consumer. The broker is required to disclose this to the consumer
at the initial interview (608 (8)). Fees are not determined by law, the real estate commission, or
local brokers.
Question: 3. Commissions earned by a broker in a real estate sales transaction: 1. are
determined by agreement of the broker and the consumer. 2. 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. 3. 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. 4. are
based on a schedule of commission rates set by the multiple listing service. - CORRECT
ANSWER✔✔3. 1. Brokerage fees are established by agreement between the broker and the
consumer to whom the broker provides service. The broker may not share these fees with an
unlicensed individual (604 (a)(12.1)). The broker must maintain the earnest money deposit until
the transaction is consummated or terminated.
