PENNSYLVANIA REAL ESTATE EXAM - PRACTICE QUESTIONS WITH CORRECT ANSWERS

PENNSYLVANIA REAL ESTATE EXAM - PRACTICE QUESTIONS WITH CORRECT ANSWERS "The Pennsylvania Real Estate Commission's statutory authority includes all of the following duties EXCEPT: - CORRECT ANSWER issuing licensees and registration certificates to people that meet the requirements established by license law." "In Pennsylvania, which of the following will not result in a broker facing license suspension or revocation? - CORRECT ANSWER Depositing an earnest money check in the firm's escrow account" "Real estate salespeople, when advertising property for sale, must: - CORRECT ANSWER Include the name of the employing broker in the ad." "A broker that operates as a sole proprietor wants to have his main office in his home. All of the following requirements apply EXCEPT: - CORRECT ANSWER The broker may not employ salespeople or associate brokers to work in his home." "Under Pennsylvania license law, which of the following needs to have a real estate license? - CORRECT ANSWER A property management firm that employs fewer than three leasing agents." "A partnership association or corporation will only be granted a broker's license in Pennsylvania if: - CORRECT ANSWER One officer or partner is designated the broker of record" "In Pennsylvania, an applicant for a salesperson's license must: - CORRECT ANSWER Show proof of passing the license exam within three years to the date of applying for the license." "An individual applying for a broker's license in Pennsylvania must: - CORRECT ANSWER be a high school graduate or have proof of an education equivalent" "A real estate license is required to - CORRECT ANSWER sell time share interests" "In Pennsylvania, a personal real estate assistant: - CORRECT ANSWER May host open houses for the public only if licensed." "The right to control one's property includes all of the following EXCEPT: - CORRECT ANSWER The right to exclude the utilities meter reader" "If the owner of the dominant tenement becomes the owner of the servant tenement and merges the two properties what happens? - CORRECT ANSWER The easement is terminated" "Tom leases store space to Kim for a restaurant, and Kim installs her ovens, booths, counters, and other equipment, when do these items become real property? - CORRECT ANSWER When the lease expires, if the items are not taken by the tenant" "A homeowner owned a house on a lot. The front ten feet of the lot were taken by eminent domain for a sidewalk. Would the homeowner be entitled to compensation? - CORRECT ANSWER Yes. the land was taken for public use by eminent domain." "A partition suit is used for which of the following? - CORRECT ANSWER to force a division of property without all the owners' consents" "An agent working as a subagent of the seller would suggest that the buyer hire an inspector from an outside service in all of the following cases EXCEPT: - CORRECT ANSWER When a hinge is off the door" "A broker is discussing a new listing with a prospective Mexican American buyer. The buyer wants to inspect the property immediately, but the owner of said property has instructed the broker, in writing, not to show the house during the owner's three-week absence. The buyer insists on viewing the property. The broker should: - CORRECT ANSWER Inform the buyer of the seller's instructions" "The buyer of an apartment complex is told that the refrigerator in one of the apartments goes with the sale. After taking title, he discovered that the refrigerator belonged to the tenant. Which is true about this situation? - CORRECT ANSWER The refrigerator is the personal property of the tenant. The seller had no right to offer it to he buyer." "If the buyer defaulted some time ago on a written contract to purchase a seller's real estate, the seller can still sue for damages, if he is not prohibited from doing so by the: - CORRECT ANSWER statute of limitations" "To assign a contract for the sale of real estate means to - CORRECT ANSWER transfer one's rights under the contract." "A real estate licensee has a buyer agency agreement. What is the seller in this situation? - CORRECT ANSWER a customer" "Springfield broker, Sam Hovis, has surprised his wife with a 2-week Alaskan cruise to celebrate their 25th wedding anniversary. They are leaving in less than a month and the time flies by. The week before their ship is due to depart, the only other broker in Sam's real estate office, Clyde Lester, breaks his back while attempting to ski a black run. Thankfully, Clyde is not paralyzed, but his injuries are extensive, and he will be out of work for several months. Jenna Bass, an associate broker in Sam's office, offers to take over managing the office in Sam's absence. Which of the following applies in this situation? - CORRECT ANSWER Jenna may supervise and manage a real estate office, because broker-associates are permitted to undertake these responsibilities, under the Pennsylvania Code." "Pittsburgh resident, Caroline Ray, is applying for licensure as a rental listing referral agent. What fee does the Commission charge for this? - CORRECT ANSWER $75" "Philadelphia resident Debbie Brouillard is submitting her application for licensure to the Commission. Which of the following items, in addition to the applicable fee, must she send with the application? - CORRECT ANSWER The written consent that valid service of process may be made on her by serving the Commission Chair, and Pennsylvania Secretary, if this service cannot, for any reason, be made on the applicant" "Richard Burrell, who is a broker, is working with license applicant Christian Flight to obtain his license. Richard, the broker is gathering everything he needs in order to submit Christian's application for licensure. Except for a sworn statement from Richard Burrell (The Broker), what does the sworn statement have to say about Christian? - CORRECT ANSWER The statement from Richard Burrell (The Broker) must attest to Christian's (Sales applicant) good reputation, for honesty, trustworthiness, integrity, and competence. The statement from Richard Burrell (The Broker) must certify that he will actively supervise and train Christian (Sales applicant) Richard Burrell (The Broker) must submit official transcripts evidencing the acquisition of degrees or course credits for Christian (Sales applicant)" "Margie Carson wishes to obtain a Pennsylvania cemetery salesperson's license, but she is only 19 years old. Is this permissible? - CORRECT ANSWER Yes, because the law only requires that an applicant for a cemetery salesperson's license be 18 years old." "Chris Moore holds a broker's license issued by another jurisdiction, but is now moving to Pennsylvania, so he wants to obtain a Pennsylvania broker's license. Does Chris have to go through the entire pre-licensing as a new Pennsylvania broker? - CORRECT ANSWER No, as long as Chris holds a broker's license issued by another jurisdiction, and that license has been active within 5 years before he's submitted his license application. No, as long as Chris has scored a passing grade on the Pennsylvania portion of the broker's examination within the past 3 years before he's submitted his application." "Erie resident, Jane Green, wishes to obtain her Pennsylvania time-share salesperson's license. Once she has successfully completed the two-credit, Commission-developed course, titled Time Share Sales, she will have taken how many hours of education or training in that subject? - CORRECT ANSWER 30 hours" "McKeesport broker, Bobby Printly, wants to obtain a Pennsylvania builder-owner salesperson's license. What must be submitted to the Commission, along with his completed license application and the fee? - CORRECT ANSWER A sworn statement from a builder-owner that attests to Bobby's good reputation for honesty, trustworthiness, integrity and competence. A sworn statement from a builder-owner, certifying that he is a builder-owner of a single or multifamily dwellings A sworn statement from a builder-owner, certifying that he employs the applicant." "Pennsylvania broker Joshua Stone wants to relocate his office from Franklin to Plum. What regulations have been set forth for a broker's office locations in this state? - CORRECT ANSWER Josh may relocate his office, as long as he notifies the Commission. He must maintain a fixed office in Pennsylvania, unless he maintains a fixed office in another jurisdiction where is licensed." "An association that wants to obtain a Pennsylvania broker's license must be sure that what percentage of that association's members (who intend to engage in the real estate business) are licensed by the Commission as a sales person or broker? - CORRECT ANSWER 100%" "Jamie Sanchez wants to obtain a Pennsylvania campground membership salesperson's license. She is 20, and has successfully completed the Commission-developed course, Campground Membership Sales. Regarding this course, which of the following conditions must have been met? - CORRECT ANSWER Jamie must have taken the course before her onsite training The course Jamie took must have been taught at an accredited college, university or institute of higher learning in the Commonwealth OR another Commission-approved real estate education provider" "When Norristown broker, Doug Lampert, dies from a particularly virulent strain of the flu, his estate appoints his closest friend and fellow broker, Ned Jackson to supervise the termination of Doug's office. Doug's business had been a sole proprietorship, and under the law must be closed. Which of the following rules must Ned follow during the termination of his friend's business? - CORRECT ANSWER unexpired listings will expire automatically 90 days after Doug's broker dies and may not be renewed." "When Hershey broker, Jack Downey, is killed suddenly in a car accident, his estate is left in the care of his only son, Brad. The day after the funeral, Jack's employees and associated salespeople begin calling Brad, asking if he would like them to continue on with "business as usual" for now. Brad knows his dad's real estate brokerage was a sole proprietorship, but beyond that he has no idea how to take care of the business. Which of the following is Brad required to do under Pennsylvania law? - CORRECT ANSWER He must notify the commission after he's appointed another broker to supervise the termination of Downey Real Estate. This notification must be done within 15 days of Jack's death." "In which of the following situations is a real estate agreement not required to be in writing? - CORRECT ANSWER In the case of a transaction licensee who is cooperating with a listing broker, a written agreement from the seller/landlord is not needed" "Harrisburg broker, Jim Daniels, is working with an elderly couple, Tom and Sylvia Harris, who wish to downsize from their current 4-bedroom home. After 7 weeks of showing them home after home, they finally decide on a lovely 2-bedroom home in suburban Harrisburg. Jim is relieved they've finally made a choice, but his relief is short-lived when Mrs. Harris calls him, worried that because there is a creek nearby, they will have to worry about flooding. Jim remembers the dried-up creek down the street and brushes off her worries. He tells Mrs. Harris, "I'm sure there's not flooding in that area. Remember how dried up that creek was when we drove past it? I'll ask a few neighbors if they've had any problems. But otherwise, you're fine flood-wise. There's nothing to worry about." Which of the following is true of this situation? - CORRECT ANSWER Jim should not have said what he did, because licensees may not offer false assurance about some aspect of a real estate transaction that he knows is probably inaccurate, if not completely false. He would know that floods are common in most parts of Pennsylvania." "Lancaster broker, Debra Angeline, wants to open a real estate office in her own home. Is this permissible under the updated Pennsylvania Code? - CORRECT ANSWER Yes, if Debra's office is devoted only to the transaction of real estate business, and is arranged to allow privacy for the business transacted therein. Yes, if the entrance to the office is separate from the entrance to the residence, and if her business name, as designated on her license, is displayed prominently and in a permanent fashion outside her office." "York cemetery broker, Jackie Calhoun, wishes to maintain three separate offices in Pennsylvania. Is this permitted? - CORRECT ANSWER Yes, as long as she obtains a branch office license for each individual office maintained." "New Pennsylvania salesperson, Jane Modbey, has only been licensed for one month. So far, it's been smooth sailing, but today, she's run into a bit of a problem. Her initial interview with a potential new client, Ed Peterson, was conducted over the phone, so even though she did make the required disclosures during this interview, she wasn't able to provide a written disclosure to Ed. Jane's broker assures her she can handle the written disclosure: - CORRECT ANSWER Either at the first meeting that Jane has in person with Ed (after the initial interview) or at the time Jane first shows a property to Ed" "Back Mountain broker, Charles Wilmer, is representing sellers, Jamie and Chris Taylor. He has provided the buyers and their agent with the necessary disclosures regarding the property, as reported to him by the Taylors. The Taylors seemed truthful in their disclosures, but immediately after the buyers move in, it is discovered that there are severe electrical wiring problems with the home. Neither Charles nor the buyers' broker suspected this ahead of time, or had reason to doubt the veracity of the Taylors' statements. However, the buyers are understandably upset, and want SOMEONE to be held liable -- either the Taylors or Charles. Under the law who should be held responsible for this? - CORRECT ANSWER The Taylors will be held liable. Charles had no reason to doubt their statements, and as their broker, it was not his duty to verify their statements." "Lexi Pfeiffer is a new real estate licensee and the owner of 8 rental homes in Coatsville. She just purchased and renovated a small duplex, and has listed this property, along with her others, in the care of Coatesville Rentals, a real estate firm that specializes in dealing with leased properties. Since she's only recently become a real estate salesperson, she decides to keep her own properties listed with Coatesville Rentals for another year or two. However, when she picks up the morning paper, she sees her new rental property advertisement, as placed by Coatesville Rentals. It does not include the necessary disclosure regarding the fact that she is in a licensee in her own right. Is this legal? - CORRECT ANSWER Yes, this is legal, because since the property is listed with a real estate company, the disclosure regarding her licensed status isn't necessary." "Lockhaven cemetery associate broker, Kayla Gould, is placing her first advertisement for her employing broker, Craig Gray. Which of the following is an accurate statement regarding this advertisement? - CORRECT ANSWER Craig's name as it appears on his license, and his business phone number, must be included in the ad. Both the name and number must be the same size." "New Wilkes-Barre broker, Ella Shay, is opening her first escrow account, designating herself as trustee of the account; where must the account be opened? - CORRECT ANSWER In either a federally-insured depository or bank, OR a state-insured depository or bank." "Which of the following would be considered an exclusive listing agreement - CORRECT ANSWER The exclusive agency of the broker and the exclusive right-to-lease agreement" "Reading broker Kelly Newsome has prepared an agreement of sale for her new client, Patricia McCarney, who has moved to Pennsylvania from New York. Kelly has included the sale price of $169,000 the property description, the names of Patricia as the buyer and Joe and Shirley Boegle as the sellers, the interest conveyed in the sale, and the payment date of September 24th, 2005. Which of the following additional information must be included on this agreement? - CORRECT ANSWER A statement about the Real Estate Recovery Fund A statement saying the access to a public road could require the issuance of a highway occupancy permit." "Norristown broker, Sara Stone, is looking for something in her files when she comes across a file from 2 years earlier. It contains the acknowledgement portion of a consumer notice applicable to leases, relating to disclosure summary for the lease of a suburban home. Sara had worked for the homeowners, Mr. and Mrs. Berwin, in leasing their home. Under the law, does Sara need to retain these records? - CORRECT ANSWER No, Sara does not need to retain these records, because they only needed to be retained for 6 months" "Under the amended Pennsylvania Code, a comparative market analysis must contain WHICH of the following statements printed conspicuously on the first page? - CORRECT ANSWER "This analysis has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice which requires valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest."" "Scranton broker Drake Moore has just agreed to an oral non-exclusive buyer agency agreement. His partner, broker Marie Carson, tells him that he has broken the law by agreeing to this verbal transaction, because oral real estate agreements are not legal in Pennsylvania. Which of the following statements is most accurate of this situation? - CORRECT ANSWER Drake was complying with the law, as long as the buyer was provided with a written memorandum stating the terms of the agreement, along with the oral agreement." "Kailyn Inman has been a broker in Warren for 5 years. Recently, a colleague has asked her to handle some document preparation services for a consumer, Jackie King. Jackie, who is selling her home of 10 years to buyer Trinity Wilson, needs someone to simply do the document preparation. Kailyn's job will be to handle the document prep, but not act as an agent, or even an advocate, for either Jackie or Trinity. In this situation, Kailyn will be acting as: - CORRECT ANSWER A transaction licensee" "Altoona broker, Suzanne Chaussee, is dismayed when she arrives at her firm to find that all of the computers have crashed. She calls the firm's IT guy, Jeff, who tells her the earliest he can be there is noon. Frazzled, she thinks of the closing she has scheduled for 10:00am on the purchase of a time share. The agreement of sale for this purchase is now trapped in Computer Never-Neverland, and she needs it immediately. Out of desperation, she pulls out the single old typewriter from the firm's pre-computer days, and calls a fellow broker, who dictates the wording of the agreement to her. There's only one problem--She knows that the statement regarding cancellation of the time share purchase must be set forth in a specific way, but she cannot remember how this is to be done. Which of the following describes the specifics of the cancellation statement's appearance on the agreement? - CORRECT ANSWER It must be set forth conspicuously in bold face type of at least 10 point size immediately above the signature line for the purchaser." "Which of the following is permitted during an inspection of a real estate education provider's main office in Pennsylvania? - CORRECT ANSWER In a special investigation, it is permissible to interview the director of the school of the school. In a regular inspection, it is permissible to interview the students at the education facility." "Washington broker, Albert Sparks, specializes in property management. Henry Jones, the owner of The Washington Heights, a luxury apartment complex, has recently had an additional building constructed next to the complex. Henry greatly appreciates the many hours Albert has put into helping with renovations, and doing "above and beyond" his normal maintenance duties. Under what circumstances would it be okay for Albert to accept a rebate on the expenditures he has made for Henry? - CORRECT ANSWER Only if he has the written permission of Henry to do so." "Warren salesperson Jessica Talbert has signed a written agreement to be a transaction licensee for Jake Anime, the buyer, and Alex Oliver, the seller, agreeing to act as a transaction licensee in their real estate transaction. As a transaction licensee, Jessica only owes Jake and Alex the duty of "limited confidentiality." Which of the following information must Jessica not share? - CORRECT ANSWER That Alex will accept a price less than the listing price That Jake will pay a price greater than the price submitted in a written offer That either Jake or Alex will agree to financing terms other than those offered." "Franklin subagent, Trixie Belderon, is currently working in cooperation with the listing broker of a property on the south side of Franklin. The listing broker, Jackson Snow, told Trixie she does not need an agreement with the seller of the home. Trixie thinks she does need something in writing. Who is correct? - CORRECT ANSWER Jackson is correct. Trixie does not need a written agreement, because this is one of the situations that is considered an exception to the regulation requiring real estate contracts to be in writing." "Lower Burrell broker, Anna Nichols, sits down with her client, Randy Candless, for a discussion of the terms (and disclosures) regarding the listing agreement for his home. Which of the following items she discusses with him is NOT negotiable issue? - CORRECT ANSWER None of the above. All items must be negotiated and discussed between the broker and her client." "When York broker, Christine Constant, is facing a dual agency situation within her firm, she appoints designated agents. Ted becomes the designated agent for the sellers, Mr. and Mrs. McGee, while Dusty is named the designated agent for the buyers, Ralph and Fran Marcee. If all parties act as appointed, has the dual agency been voided? - CORRECT ANSWER No, Christine is considered the dual agent in this situation." "April Raymore is thrilled to find out she's passed her licensing exam to be a certified builder-owner salesperson in New Castle. Now all she needs is a letter attesting to her good reputation for honesty, trustworthiness, integrity, and competence. Which of the following parties must write this letter? - CORRECT ANSWER A builder-owner of single and multifamily dwellings AND April's employer" "Harrisburg Homes is a corporation founded by longtime friends, Bill Berkeley and John Whitney - with Bill the CEO and company president, and John the vice-president of the company. Both Bill and John hold valid Pennsylvania broker's licenses, as do the other officers of this corporation, since they, too, will act in the capacity of real estate brokers. Which of these must be designated as the broker of record? - CORRECT ANSWER Any of the licensed brokers of the firm can be designated as the broker of record." "If a licensed salesperson neglects to deliver the Consumer Notice at the initial interview, without the knowledge of the employing broker, what are the consequences? - CORRECT ANSWER The salesperson's license can be revoked or suspended." "A seller is required to provide a property condition disclosure to a potential buyer in all of the following instances EXCEPT: - CORRECT ANSWER the sale of commercial property" "The seller of a single-family residence is required to provide a property condition disclosure: - CORRECT ANSWER Prior to the buyer making a written offer." "All of the following transactions are exempt from the Property Condition Disclosure Act EXCEPT: - CORRECT ANSWER A sale by a licensee of two-unit residential property that is sold "For Sale By Owner"" "A broker that has an agreement with the seller knows that the foundation of the property is cracked and that a previous owner committed suicide in the kitchen. The broker must provide to a potential buyer: - CORRECT ANSWER The cracked foundation but not the suicide" "Unit 13E in a condominium community was the result of highly publicized and brutal murder several years ago. The unit was then sold to a young man that contracted the AIDS virus through a blood transfusion and died in the unit. What are the disclosure responsibilities of the agent for the young man's estate who is trying to sell the condominium unit? - CORRECT ANSWER The agent is not required to disclose either event" "Members of the Pennsylvania Real Estate Commission are selected: - CORRECT ANSWER by appointment by the governor" "A candidate for membership of the commission must: - CORRECT ANSWER be appointed by the governor." "Of the commission membership, how many are required to be licensed real estate brokers at the time of their appointment? - CORRECT ANSWER Five" "Real estate license law in Pennsylvania is administered by the - CORRECT ANSWER Real estate commission" "The purpose of Pennsylvania license law is to - CORRECT ANSWER Ensure public interest is protected." "The commission has the authority to - CORRECT ANSWER Administer and enforce license law" "The commission can investigate a licensee based on any of the following EXCEPT: - CORRECT ANSWER a random selection of active licensees" "The commission during either a routine or special inspection, can do all of the following EXCEPT: - CORRECT ANSWER Interview clients that are currently conducting business with the licensee being inspected." "Of the following, who is subject to disciplinary action by the PREC? - CORRECT ANSWER A campground membership salesperson" "Jasmine is a licensed salesperson employed by broker Eugene. Jasmine not only violates the Pennsylvania Human Relations Act by blockbusting and discriminating against a disabled person, she also cashes a $15,000 earnest money check to buy herself a new car. Eugene is totally unaware of Jasmine's actions. What is the impact of Eugene's license when Jasmine's violations are brought to the commissions attention? - CORRECT ANSWER Eugene might not have his license revoked because of Jasmine's actions." "Broker Frank is convicted of felony possession and distribution of a controlled substance in Idaho. After a month Frank calls the PREC and leaves a message to let them know about the conviction. Which of the following is true? - CORRECT ANSWER The conviction and Frank's failure to properly notify the commission are both grounds for license suspension or revocation." "What action can the commission take after a hearing that alleges a violation of license law? - CORRECT ANSWER Suspend a license and impose a fine" "A licensee is found guilty of misrepresentation to the public. The commission may: - CORRECT ANSWER Revoke the licensee's license and/or impose a fine." "For a second time offense of engaging in the real estate business without a license, the maximum fine is: - CORRECT ANSWER $5000 and imprisonment for as much as two years." "All of the following are grounds in Pennsylvania for revoking a broker's license EXCEPT: - CORRECT ANSWER Agreeing with the seller to accept a commission hat is more than the standard rate." "Under what circumstance is the Pennsylvania Real Estate Commission required to suspend a licensee's license? - CORRECT ANSWER Money is paid from a Real Estate Recovery Fund to settle a claim against the licensee" "It is not a violation of license law to: - CORRECT ANSWER place a "For Sale" sign in the front yard of a house after receiving written permission from the owner." "If a sole proprietor broker's license is suspended for two years, what is the effect on the associate broker's and salespeople affiliated with the broker? - CORRECT ANSWER All affiliates' licenses are terminated." "In which case is the broker's license likely to be suspended or revoked due to the actions of a salesperson working for that broker? - CORRECT ANSWER The broker's license can be suspended or revoked if it is determined the broker knew of the violation committed by the salesperson." "How long, at a minimum, must a licensee whose license has been revokes wait before reapplying or licensure? - CORRECT ANSWER Five years" "In which case is a violation of license law on the part of a salesperson grounds for suspension or revocation of the employing broker's license? - CORRECT ANSWER If it can be shown the salesperson's conduct is a common course of dealing" "If the real estate sales person decides to sell their own property "For Sale By Owner," the salesperson - CORRECT ANSWER Must disclose licensure in the ad" "What must be included in an advertisement if a broker is going to advertise his or her production or market position? - CORRECT ANSWER The municipality that the market includes" "What advertising an individual property for sale, a broker must include: - CORRECT ANSWER The business name of the broker as designated on the license" "What does a broker need to include on a website advertising the broker's office? - CORRECT ANSWER The broker's name as it appears on the license" "Jason is a licensed salesperson working with Tom Freddly Realty. Jason wants to advertise on a web page that he created himself. What information is Jason required to include in his website advertisement? - CORRECT ANSWER The business name and telephone number of Tom Freddly Realty, the employing broker" "If Sue wants to sell her own home, she: - CORRECT ANSWER does not need a real estate license to sell her home herself." "Beula is not a licensed real estate agent, but she negotiates the sale of a home and the seller agrees to pay her compensation. Beula has trouble collecting the agreed upon fees after the transaction closes. In this case, Beula: - CORRECT ANSWER can do nothing to collect the compensation." "Jonas owns a six-unit residential building and is a broker. He hires Ashley, who is unlicensed, to manage and maintain the property. What activities can Ashley legally perform? - CORRECT ANSWER Show apartments to prospective tenants and provide leasing information." "Felicia decides to take a five-year break from selling real estate and does not renew her salesperson's license during that period. Before her license can be reissued, she must: - CORRECT ANSWER Submit to and pass the salesperson's license exam." "Who of the following is not exempt under the Pennsylvania Real Estate License Act and needs to have a real estate license? - CORRECT ANSWER Individual who receives compensation for finding prospective buyers or tenants for real estate" "It is a requirement under Pennsylvania license law that for an individual wanting to obtain a salesperson's license to: - CORRECT ANSWER Successfully complete 60 hours of instruction in courses prescribed by the Pennsylvania Real Estate Commission." "Education or training is required prior to licensure for all of the following EXCEPT: - CORRECT ANSWER Cemetery salespeople" "In Pennsylvania, when does a real estate salesperson's license expire? - CORRECT ANSWER Two years from the date of issuance" "To renew a broker or salesperson license, the individual must: - CORRECT ANSWER Complete 14 hours of continuing education and pay the renewal fee." "A broker's activities, by definition, include all of the following EXCEPT: - CORRECT ANSWER Appraising real estate" "What type of activity are rental listing referral agents licensed to conduct? - CORRECT ANSWER Collecting rental information in order to refer prospective tenants to rental units." "Fran is Miles' licensed assistant. She works late nights and weekends to help Miles with a difficult transaction, including making several phone calls to the buyers to encourage them to accept the seller's counteroffer. Because of her efforts, the sale goes through with no problems, and Miles wants to reward Fran with part of the commission. Under Pennsylvania law, salesperson Miles: - CORRECT ANSWER may not directly pay Fran a commission under these facts" "Which of the following requirements must be met if an individual with a salesperson's license in another state wants to obtain a Pennsylvania license? - CORRECT ANSWER The license issued by the other state must have been active within the five years prior to submitting the application for a Pennsylvania license" "Which of the following types of ownership CANNOT be created by operation of law, but must be created by the parties' expressed interest? - CORRECT ANSWER Tenancy by the entireties" "Which of the following is/are considered to be personal property? - CORRECT ANSWER Patio furniture" "The word "improvement" would refer to all of the following EXCEPT: - CORRECT ANSWER Trade fixtures" "All of the following are physical characteristics of land EXCEPT: - CORRECT ANSWER scarcity" "Certain items on the premises that are installed by the tenant and are related to the tenant's business are called - CORRECT ANSWER trade fixtures" "Personal property includes all of the following EXCEPT: - CORRECT ANSWER fixtures" "A person who has complete control over a parcel of real estate is said to own a - CORRECT ANSWER fee simple estate" "A portion of Wendell's building was inadvertently built on Ginny's land. This is called an: - CORRECT ANSWER Encroachment" "The purchase of a ticket for a professional sporting event gives the bearer what? - CORRECT ANSWER A license to enter and claim a seat for the duration of the game." "Homeowner Ginny acquired ownership of land that was deposited by a river running through her property by: - CORRECT ANSWER accretion" "The rights of the owner of property located along the banks of a river are called: - CORRECT ANSWER riparian rights." "The local utility company dug up Frank's garden to install a natural gas line. The company claimed it had a valid easement and proved it through the county records. Frank claimed the easement was not valid because he did not know about it. The easement: - CORRECT ANSWER was valid even though the owner did not know about it." "Jim and Sandy are next-door neighbors. Sandy tells Jim that he can store his camper in her yard for a few weeks until she needs the space. Sandy did not charge Jim rent for the use of her yard. Sandy has given Jim a(n) what? - CORRECT ANSWER license" "Your neighbors use your driveway to reach their garage on their property. Your attorney explains that the ownership of the neighbors' real estate includes an easement appurtenant giving them the driveway right. Your property is the: - CORRECT ANSWER Servient tenement" "Quintin owned two acres of land. He sold one acre to Frank and reserved for himself an appurtenant easement over Frank's land for ingress and egress. Frank's land - CORRECT ANSWER is the servient tenement" "Ginny owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective purchaser? - CORRECT ANSWER An appurtenant easement" "Sam and Nancy bought a store building and took title as joint tenants. Nancy died testate. Same now owns the store: - CORRECT ANSWER In severalty" "When real estate under and estate for years is sold, what happens to the lease? - CORRECT ANSWER It binds the new owner" "Evan lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, Evan owns stock in the corporation and has a lease on his apartment. This type of ownership is called a(n): - CORRECT ANSWER cooperative" "Jim Manny and Harry are joint tenants owning a parcel of land. Harry conveys his interest to his long-time friend Wendell. After the conveyance, Jim and Manny: - CORRECT ANSWER remain joint tenants owning a two-thirds interest" "In a gift of a parcel of real estate, one of the two owners was given an undivided 60% interest and the other received and undivided 40% interest. The two owners hold their interest as what? - CORRECT ANSWER Tenants in common" "To create a joint tenancy relationship in the ownership of real estate, there must be unities of: - CORRECT ANSWER Possession, time, interest, and title" "What is a Schedule of Exceptions on a title policy? - CORRECT ANSWER List of things not insured in the policy" "When a company furnishes materials for the construction of a house and is subsequently not paid, it may file a(n): - CORRECT ANSWER mechanic's lien" "Which of the following liens does not need to be recorded to be valid? - CORRECT ANSWER Real estate tax lien" "The system of ownership of real property in the United States is what? - CORRECT ANSWER allodial" "A mechanic's lien would be properly classified as a(n): - CORRECT ANSWER Statutory lien" "Under which of the following types of liens can both the real property and the personal property of the debtor be sold to pay the debt? - CORRECT ANSWER Judgment lien" "The covenant in a deed which states that the grantor is the owner and has the right to convey title is called: - CORRECT ANSWER covenant of seisin" "The recording of a deed: - CORRECT ANSWER Gives constructive notice of the ownership of real property." "Which of the following instruments proves a marketable title? - CORRECT ANSWER General warranty deed" "What do liens and easements have in common? - CORRECT ANSWER Both are encumbrances" "The title to real estate passes when a valid deed is - CORRECT ANSWER delivered and accepted" "The primary purpose of a deed is to - CORRECT ANSWER transfer title rights" "A special warranty deed differs from a general warranty deed in that the grantor's covenant in the special warranty deed: - CORRECT ANSWER Applies to only a definite limited time." "Which of the following deeds contains no expressed or implied warranties? - CORRECT ANSWER A quitclaim deed" "When the grantor does not wish to convey certain property rights, he or she: - CORRECT ANSWER may note the exceptions in the deed of conveyance" "The condemnation of private property for public use is exercised under which government right? - CORRECT ANSWER eminent domain" "When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as what? - CORRECT ANSWER subrogation" "Which of the following would be used to clear a defect from the title records? - CORRECT ANSWER a suit to quiet title" "A bill of sale is used to transfer the ownership of what? - CORRECT ANSWER personal property" "A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called a(n): - CORRECT ANSWER abstract of title" "When the preliminary title report reveals the existence of an easement on the property, it indicates that the easement is a(n): - CORRECT ANSWER encumbrance" "The list of previous owners of conveyance from whom the present real estate owner derives his or her title is known as the: - CORRECT ANSWER chain of title" "A person agrees to sell a property for $500,000. The buyer gives the seller $150 as valuable consideration for a six-month option. Which of the following statements is true? - CORRECT ANSWER The $150 is valuable consideration if the seller accepted it." "Which of the following activities is a violation of the Federal Fair Housing Act? - CORRECT ANSWER A nonprofit church that denies access to its retirement home to any person because of race" "A Savings & Loan institution would be violating the Federal Fair Housing act by denying a loan to Mr. and Mrs. Happy Borrower for which of the following reasons? - CORRECT ANSWER minority background" "The Civil Rights Act of 1866 prohibits discrimination in housing based on which of the following reasons - CORRECT ANSWER race" "The federal anti-discriminatory laws apply to which of the following? - CORRECT ANSWER a broker selling a single-family home" "A tenant complained to HUD about his landlord's discriminatory practices in his/her building. A week later the landlord gave the tenant an eviction notice. Under which of the following situations would the Federal Fair Housing Act be violated? - CORRECT ANSWER When the landlord evicts the tenant for reporting him to HUD" "The Federal Fair Housing Act states that a prima facie (at first view) case against a broker for discrimination be established after a complaint has been received because the broker has failed to do which of the following? - CORRECT ANSWER The broker has failed to display a HUD Equal Opportunity poster." "A three-story apartment complex built in 1965 does not meet with the handicapped access provisions for the 1988 Fair Housing Act. The owner must: - CORRECT ANSWER Make the ground floor handicapped accessible" "What type of a listing agreement allows the owner to appoint an exclusive agent to sell his property, but retains the right to sell the property himself? - CORRECT ANSWER exclusive agency" "Under an Exclusive Right to Sell Listing agreement, if the seller produces a ready, willing and able buyer he: - CORRECT ANSWER Owes the listing broker a full commission" "Which of the following would not terminate an agency relationship? - CORRECT ANSWER submission by the agent of two offers at the same time" "The illegal process of a banker refusing to approve loans for a neighborhood based on the composition of the area is: - CORRECT ANSWER redlining" "The illegal practice of directing minorities to areas populated by the same race or religion is called - CORRECT ANSWER steering" "Carl Chauvinist, the owner of an apartment complex, lives in one unit of a triplex and routinely refuses to rent either of the other two units to a female. Can he do this? - CORRECT ANSWER Yes. He may do this if he does not use a broker or discriminate in advertising" "An aggrieved party with a Fair Housing violation claim has how long to file a complaint with the Department of Housing and Urban Development? - CORRECT ANSWER 1 year" "Jim Jones, the landlord, rents a property to Tom Smith, a handicapped person. Mr. Smith, with Mr. Jones' permission, modifies the house to suit his needs. When the lease expires, which of the following requirements would not have to be met by Mr. Smith? - CORRECT ANSWER Mr. Smith must restore the wide doorways, that were installed to him, to the original size." "All of the following are duties of the property manager EXCEPT: - CORRECT ANSWER Securing tenants of a particular ethnic origin in accordance with the owner's wishes" "A mobility impaired person was renting a unit in an apartment complex. Half the units had been assigned parking spaces near the door; the other half had not. The owner: - CORRECT ANSWER must give a parking space near the door to the handicapped person, if one is available and a need is demonstrated." "A salesperson is involved in a transaction where an individual wishes a six-month lease with an option to buy. What is true about this situation? - CORRECT ANSWER A salesperson could use two standard forms, fill in the blanks and request that his or her broker review the forms before signing" "A void contract is one that is: - CORRECT ANSWER not legally enforceable" "The essential elements of a contract include all of the following EXCEPT: - CORRECT ANSWER notarized signatures" "If, upon the receipt of an offer to purchase his property under certain conditions, the seller makes a counteroffer, the prospective buyer is: - CORRECT ANSWER relieved of his original offer" "The amount of earnest money deposit is determined by: - CORRECT ANSWER an agreement between the parties" "A competent and disinterested person who is authorized by another person to act in his or her place and sign a contract of sale is called: - CORRECT ANSWER An attorney in fact" "An option: - CORRECT ANSWER requires the optionor to complete the transaction." "When a prospective buyer makes a written purchase offer that the seller accepts, then the: - CORRECT ANSWER buyer receives equitable title to the property." "H agrees to purchase V's real estate for $230,000 and deposits $6,900 earnest money with Broker L. However F is unable to clear the title to the property, and H demands the return of his earnest money as provided in the purchase contract. Broker L should: - CORRECT ANSWER return the entire amount to H." "A buyer makes an earnest money deposit of $1,500 on a $15,000 property and then withdraws her offer before the seller can accept it. The broker is responsible for disposing of the earnest money by: - CORRECT ANSWER Returning it to the buyer." "Broker K arrives to present a purchase offer to Mrs. D, an 80 year old invalid who is not always of sound mind, and finds her son and daughter-in-law present. In the presence of Broker K, both individuals persistently urge D to accept the offer, even though it is much lower than the price she has been asking for her home. If D accepts the offer, she may later claim that: - CORRECT ANSWER She was under undue duress from her son and daughter-in-law, and, therefore, the contract is voidable." "The law that requires real estate contracts to be in writing to be enforceable is the: - CORRECT ANSWER statute of frauds." "A(n) ___ is when an owner takes his property off the market for a definite period of time in exchange for some consideration, but he grants the right to purchase the property within that period for a stated price. - CORRECT ANSWER option" "A breach of contract is a refusal or a failure to comply with the terms of the contract. If the seller breaches the purchase contract, the buyer may do all of the following EXCEPT: - CORRECT ANSWER Sue the broker for non-performance" "The property manager suspects that the tenants in a property are engaging in illegal drug trafficking. What should the property manager do? - CORRECT ANSWER Notify the owner immediately of the suspicious activity" "A zoning change has been announced that will result in the loss of value of the property to a property owner. What should a property manager do? - CORRECT ANSWER Advise the owner immediately." "A broker and seller terminate the listing contract. An offer is received in the mail by the broker after the termination of the listing contract. The offer is for full price and includes all of the terms and conditions of the seller Why is this NOT a valid contract? - CORRECT ANSWER No acceptance has been given." "An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform? - CORRECT ANSWER He must exercise his option under the terms of the option contract." "When can a landlord evict a disabled blind or disabled tenant from the premises - CORRECT ANSWER If the tenant has loud parties and makes too much noise, and is constantly disturbing other tenants." "Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker? - CORRECT ANSWER There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer." “Harrisburg resident Joseph Bell has worked full-time for Larry Keen, who is the builder-owner of dozens of homes just outside of Harrisburg. Joseph is Larry's "right-hand man," and Larry has given him permission and the authority to take on many of Larry's tasks. Joseph routinely lists homes for sale, as well as actually selling the real estate on Larry's behalf, which of the following best describes Joseph? - CORRECT ANSWER He's a building-owner salesperson" "Which of the following is excluded from the provisions of the Real Estate Licensing and Registration Act? - CORRECT ANSWER A cemetery company or cemetery owned or controlled by a bona fide church or religious congregation or fraternal organization or by an association created by a bona fide church or religious organization or fraternal organization." "For the past five years, it's been the goal of Punxatawny resident Phil Z Groundhog to obtain a broker's license in Pennsylvania, but it seems that something has always gotten in his way. Now he is ready and striving toward his goal. He has everything ready to submit with his application and the fee. The problem is, the last time he took and passed the broker's exam, it was nearly three years ago. Which of the following is true of this situation? - CORRECT ANSWER Phil's exam results are still valid up to three years after the exam was taken, so he'll need to submit the application prior to that 3-year mark." "Allentown resident Katie Kollander, who wants to obtain a Pennsylvania campground membership salesperson's license, has recently completed a one-credit Commission-developed course in Campground Membership Sales. How many hours has she completed? - CORRECT ANSWER 15 hours" "What is the current regulation in regard to the number of offices a rental listing referral agent maintains in the Commonwealth? - CORRECT ANSWER He may maintain more than one office." "Chester resident, Dawn Meyer, who wants to obtain a Pennsylvania campground membership salesperson's license, has met all the requirements of licensure, except for the onsite training. Which of the following statements best describes this requirement? - CORRECT ANSWER 30 days of onsite training must be completed during a 90-day period within 3 years prior to submission of a license application." "Which of the following descriptions best explains a "manager of record," as defined in the current Pennsylvania Act? - CORRECT ANSWER The individual rental listing referral agent responsible for the rental listing transactions of a partnership, association or corporation that holds a rental listing referral agent's license." "During a routine inspection of Plum Real Estate, which of the following activities can be performed by the Commission inspectors? - CORRECT ANSWER A thorough inspection into all of the Plum Real Estate office records, including rental listing referrals Interviews with all licensed and unlicensed personnel employed by or associated with Plum Real Estate. Inspection of all areas of the entire office of Plum Real Estate." "Lebanon broker Danny Magnus is swamped by his property management responsibilities. He finally hires a salesperson, Art Bagley, to help him with some of these responsibilities. Which of the following duties may Art perform independently? - CORRECT ANSWER None of the above - a salesperson may ONLY assist in property management duties IF that salesperson's work is supervised and controlled by the employing broker. In other words, Art could not perform ANY property management duties independently." "Broker Marc Harris, in Lock Haven, has been asked by his client, Jill Rainey, to hold her money in escrow for 9 months. Is this legal? - CORRECT ANSWER Yes, it is, as long as he deposits the money in an interest-bearing account." "Which of the following must an exclusive listing agreement contain? - CORRECT ANSWER The duration of the agreement" "Real estate education providers must retain attendance and other schools records in regard to continuing education for how long, under the amended Pennsylvania Code? - CORRECT ANSWER 4 years" "A real estate education provider must prominently display which of the following at his main location? - CORRECT ANSWER The real estate education provider's certificate of approval An alphabetical list of the real estate education provider's satellite locations." "If a licensed real estate agent owns an apartment building for investment purposes, the salesperson must: - CORRECT ANSWER Must disclose licensure to prospective tenants before a lease is signed." "Broker Niles is discussing with the owner the possibility of listing a large piece of vacant property for sale. During the discussion Niles realizes he would like to secure and option to buy the property. How should Niles proceed? - CORRECT ANSWER He should disclose his interest and license status to the seller and discuss terms of the option agreement before and separate from the listing agreement." "Which of the following statements is true regarding completion of the property condition disclosure? - CORRECT ANSWER The agent should advise the seller that disclosure of known property conditions is required by law." "Ted decides to sell his house and hires Alice as his broker. Ted tells Alice the roof leaks, but they agree not to disclose that fact to potential buyers. Felix purchases the house, and six months later the roof leaks during a storm. Alice claims Felix never asked about the roof. In this case, Felix: - CORRECT ANSWER can sue Alice and Ted" "Which of the following actions by a broker is NOT a violation of license law? - CORRECT ANSWER Openly soliciting salespersons and associate brokers to change employing brokers" "The commission has the authority to take disciplinary action against a licensee that violates all of the following EXCEPT: - CORRECT ANSWER Sherman anti-trust act" "A broker with a listing on a property offers to pay a bonus of $350 to any salesperson that sells the property within 30 days. Which of the following statements is true? - CORRECT ANSWER The listing broker can only pay a bonus to a salesperson employed by that listing broker." "An individual found guilty for the first time of engaging in business as a real estate agent without a license can be fined: - CORRECT ANSWER Not more than $500, imprisonment of not more than three months, or both." "Two weeks before Martin begins his real estate pre-license class, he offers to help his neighbor Mabel sell her home. Mabel agrees to pay Martin a three percent commission. Martin finds someone interested in the house, and Mabel accepts an offer while Martin is still taking his class. The transaction closes on the day Martin passes the examination. Mabel refuses to pay Martin the commission. Can Martin sue to recover payment? - CORRECT ANSWER No. License law prohibits lawsuits to collect commissions unless the injured party was licensed at the time the agreement was reached." "A corporation appoints an officer of the company to sell a parcel of corporation-owned property. In relation to that officer, which of the following statements is true? - CORRECT ANSWER The corporation may designate as many as five of its officers to conduct business on its behalf without any license required." "A broker's license candidate must: - CORRECT ANSWER have passed the broker's license exam within three years of applying for the license." "Of the following candidates, which is required to take and pass the standard real estate salesperson's license exam but is not required to complete mandatory educational coursework prior to the exam? - CORRECT ANSWER Building-owner salesperson" "A sales license applicant can begin performing duties and activities that require a license: - CORRECT ANSWER Only after a license is issued by the state to the salesperson" "An employing broker can have a licensed salesperson perform, on the broker's behalf, all of the following duties EXCEPT: - CORRECT ANSWER conduct the appraisal of a federally related mortgage loan." "A builder-owner salesperson is employed by a building-owner of single and multifamily dwellings. Which of the following activities is the salesperson allowed to engage in? - CORRECT ANSWER Leasing a builder-owner home to a tenant" "Many states determine the order of water rights according to which users of the water hold a recorded beneficial use permit. This allocation of water rights is determined by - CORRECT ANSWER The doctrine of prior appropriation"