PA REAL ESTATE EXAM- PENNSYLVANIA

PA REAL ESTATE EXAM- PENNSYLVANIA QUESTIONS AND ANSWERS (100% PASS) “How many brokers can you be affiliated with as a Pennsylvania licensee? - CORRECT ANSWER 1" (After 90 days, the State Real Estate Commission may investigate the complaint. This delay gives the Pennsylvania Human Rights Commission time to conduct its own investigation and report any findings to the commission.)" "Pennsylvania licensees must disclose to consumers any personal financial interests they have in a property or services surrounding the transaction. When must this disclosure take place? - CORRECT ANSWER As soon as the licensee recommends the product, property, or service to the consumer." "Jack is a Pennsylvania licensee. He represents Carter in a transaction. Rachel is the other party to the transaction. Which of the following statements is true? - CORRECT ANSWER Jack can keep both parties informed about the transaction." "Which Pennsylvania entity administers and enforces campground and cemetery laws for activities that require a license? - CORRECT ANSWER State Real Estate Commission" "Ulysses is Pennsylvania broker who's a dual agent in a transaction. He's designated separate licensees to exclusively represent each party. Thomas will represent the seller and Renee will represent the buyer. Which of the following statements is true? - CORRECT ANSWER Thomas owes his seller and Renee owes her buyer the same duties owed by buyer's and seller's agents." "Larry, a Pennsylvania broker, provided a copy of the Consumer Notice to a prospective buyer prior to entering into an agency relationship and showing the buyer several properties. How long must he retain a copy of the notice? - CORRECT ANSWER He needs to retain a copy of the notice for at least six months. (Most transaction documents and contracts must be retained for three years. However, Consumer Notices and sub-agent and transaction licensee agreements only need to be retained for six months.)" "Which organization specifies in their Rules and Regulations the standards of conduct that each Pennsylvania licensee must follow? - CORRECT ANSWER State Real Estate Commission" "Tony has been a real estate salesperson in Pennsylvania for two years. He currently works for ABC Realty in Scranton. However, he is interested in associating with XYZ Brokerage in the Poconos, where he has a second home. Which of the following is the best option for Tony? - CORRECT ANSWER Tony should decide to work for either ABC Realty or XZY Brokerage, but can't work for both at the same time. (Salespersons can't act on behalf of more than one broker in the state at the same time, and as a salesperson, Tony can't open a branch office.)" "Danielle's Pennsylvania salesperson's license expired a year and a half ago. What does she need to do to reactivate the license? - CORRECT ANSWER Complete 14 hours of continuing education and pay a renewal fee." "If a Pennsylvania licensee turns in a current license when moving to a new employer, what enables the licensee to continue practicing real estate until the new license arrives? - CORRECT ANSWER A copy of the notification that was sent to the commission serves as the licensee's temporary license. (Licensees should submit their old licenses when there's a change of employment, but can use a copy of the commission notification as a temporary license until the new one is received.)" "Hope's Pennsylvania real estate license is about to expire and she's not going to be able to renew it on time. How long can she continue practicing real estate? - CORRECT ANSWER She can continue practicing until the renewal date, when the license will expire." "You let your Pennsylvania salesperson license expire a while back. Life keeps you busy, but eventually you decide you want to get back out there in the real estate world. When you check your records, you realize your license expired over five years ago! What do you have to do to get your licensed re-activated? - CORRECT ANSWER Retake the license exam, reapply for licensure, and re-affiliate with a broker." "In Pennsylvania, which one of these scenarios would require a real estate license? - CORRECT ANSWER Janice is searching for a new home for a friend moving into town. After the friend buys a property, Janice will receive 2% of the sales price for her time." "What states have reciprocal licensure agreements with Pennsylvania and allow you to practice real estate there? - CORRECT ANSWER Arkansas, Georgia, Louisiana, Maryland, Massachusetts, and New York" "Letty is a licensed real estate broker in another state where she does most of her business. She was recently able to obtain a license in Pennsylvania without completing any additional education or taking a licensing exam. Which type of license does she most likely hold in Pennsylvania? - CORRECT ANSWER Reciprocal broker's license" "Celia holds a cemetery salesperson's license in Pennsylvania. What can we reasonably assume about her? - CORRECT ANSWER She's at least 18" "Which statement about real estate business in Pennsylvania is true? - CORRECT ANSWER Every licensed broker must have a fixed place of business." "Abigail is a Pennsylvania broker who supervises several salespersons and associate brokers. Which of these forms outlines how much will be paid to her when she or any of her associated licensees engages in a transaction? - CORRECT ANSWER Listing agreement (Listing agreements must include commission or expected compensation. RELRA or the Sherman Act don't set these terms. The Consumer Notice simply informs consumers of the possible agency relationships.)" "Ted is a real estate licensee in Pennsylvania. He was found guilty of violating license law. The commission has the power to dole out various penalties, but which of these is beyond the scope of its powers? - CORRECT ANSWER Jail time" "Within how many days must a Pennsylvania licensee notify the commission when changing broker affiliation? - CORRECT ANSWER 10 days" "Which is a requirement for the Pennsylvania real estate broker's license? - CORRECT ANSWER 240 hours in approved real estate instruction, including fair housing and ethics" "Louis is a real estate broker in Pennsylvania. He's moving his office. What obligation does he have? - CORRECT ANSWER To notify the commission within 10 days after the move" (Generally, anyone performing real estate services for another and for compensation must hold a real estate license. There are exceptions for executors and trustees. Any person can sell his or her own property with or without a license.)" "Which of the following would require a real estate license in Pennsylvania? - CORRECT ANSWER A property manager who negotiates and enters into leases on the owner's behalf (Some property management employees may be exempt from licensure, but those who negotiate or enter into leases on the property owner's behalf must be licensed.)" "Alana has always been interested in real estate. She's helped a few friends determine the asking price for their properties and managed their advertising efforts, and now she's considering going into business doing this kind of work for a fee. Is Alana exempt from real estate licensing in Pennsylvania? - CORRECT ANSWER No, she isn't." "Which of the following statements about reciprocity is true? - CORRECT ANSWER Licensees must obtain their license from the state in which they do most of their business" "Per Pennsylvania license law, which of these items is required to be included in a sales contract? - CORRECT ANSWER Sales price and closing and possession date(s)" "Pennsylvania brokers who intend to conduct business at more than one location should apply for ______. - CORRECT ANSWER A license for each separate location (Branch offices each require their own licenses. These licenses are issued in the same name as the broker, but include the corresponding office address.)" "The Pennsylvania State Real Estate Commission has the power to perform many actions. Which of the following actions is beyond the scope of the commission's power? - CORRECT ANSWER Establishing a school to offer and conduct real estate courses (While the commission has the power to approve schools to offer real estate courses, establishing a school itself is beyond the scope of its powers.)" "When does your real estate license expire in Pennsylvania? - CORRECT ANSWER May 31 of every even numbered year (Real estate licenses expire on May 31 of every even numbered year.)" "Which of the following actions could lead to license suspension or revocation in Pennsylvania? - CORRECT ANSWER Encouraging a contract party to break that contract in order to sign on with you" (Team advertising has to be the name (or nickname registered with the commission) of a licensee on the team. Only licensed team members can be listed on the ad, which must include the brokerage name as well.)" "The Pennsylvania State Real Estate Commission has decided to assess an additional five-dollar fee to each licensee at the beginning of the next renewal period. Which of these is a likely cause of this additional fee? - CORRECT ANSWER The Real Estate Recovery Fund will have less than $300,000 at the beginning of the license renewal period. (If the fund has less than $300,000 at the beginning of a license renewal period, then the commission can assess additional fees (not to exceed $10 per licensee) that would bring the balance to $500,000.)" "To legally perform real estate activities in Pennsylvania, you must have a real estate license, pass the written exam, keep your license current by completing continuing education courses, and ______. - CORRECT ANSWER Follow the standards of conduct" "You just sold your first house in Pennsylvania! You decide to cash the commission check directly and then give the remainder to your affiliate broker. What type of violation have you just committed? - CORRECT ANSWER Receiving or paying undisclosed fees or receiving them other than through the appropriate licensed broker (By receiving the commission yourself, you are committing a violation of section 604 (a)(12) of the RELRA by accepting the commission directly rather than through your affiliated licensed broker.)" "A Pennsylvania broker with 30 years of real estate experience has worked with a real estate attorney for so long, that the broker could answer questions as the attorney would and provide the same advice to clients. Why might this lead to license revocation? - CORRECT ANSWER This is considered practicing law without a license to do so, which is a serious violation and probably illegal." "A Pennsylvania licensee was found guilty of defrauding several of his real estate clients. A court issued final judgments ranging from $1,000 to $30,000 dollars for each victim, for a total of $150,000. If the victims seek recovery from the Real Estate Recovery Fund, what's the most that will be paid out? - CORRECT ANSWER $100,000 (The maximum a single consumer can recover is $20,000. There's a maximum payout of $100,000 per licensee as well.)" "Lenny is a licensed broker in Pennsylvania with 15 years' experience in real estate. He's a member of the Pennsylvania State Real Estate Commission. How many other members of the commission have at least 10 years' real estate experience? - CORRECT ANSWER Four" "Mackenzie is a real estate licensee in Pennsylvania. She accepted a listing on the seller's condition that she not show the property to any families with teenagers, even though she doesn't intend to follow through with the condition. Did Mackenzie do anything wrong? - CORRECT ANSWER Yes, it's a violation to accept discriminatory listings." "Keirstyn, a Pennsylvania licensee, receives a call from a consumer looking to embark upon a house-hunting adventure. The conversation turns substantive when the consumer begins talking about budget and other confidential details. What should Keirstyn do? - CORRECT ANSWER During the phone call, provide oral disclosure of possible agency relationships to the consumer, then follow up with the written disclosure at the first in-person meeting. (Licensees must provide an oral disclosure related to possible agency relationships if first substantive contact with a consumer doesn't occur in person. The licensee must then follow up with the written Consumer Notice at the next in-person meeting.)" "John decided to switch affiliated brokers, and he'll be making the change on May 1. What is the date by which he must notify the Pennsylvania commission? - CORRECT ANSWER May 11 (John has 10 days to notify the commission after the change.)" "At a recent real estate commission meeting the following members were in attendance: the commissioner of the Bureau of Professional and Occupational Affairs, the director of the Bureau of Consumer Protection, five licensed real estate brokers with at least 10 years' experience, and a cemetery broker with at least 10 years' experience. Who was missing? - CORRECT ANSWER Three unlicensed members representing the public at large (Members include the commissioner of the Bureau of Professional and Occupational Affairs, director of the Bureau of Consumer Protection, five licensed real estate brokers, one cemetery broker with at least 10 years' experience, and three unlicensed members)" "Samantha affiliated with Pennsylvania broker Jenny as soon as she was licensed. Samantha just celebrated her two-year anniversary with the brokerage. How much longer must she be affiliated before she qualifies for a broker's license? - CORRECT ANSWER One more year" "It's a Tuesday afternoon and Pam, a Pennsylvania broker, just accepted an earnest money check from a buyer whose offer was accepted by Pam's seller. What does Pam need to do with this check? - CORRECT ANSWER Deposit the money in a trust account by the end of the day Wednesday. (If the trust funds are related to an offer to buy or lease property, the broker can hold onto the check until the offer is accepted or rejected. If accepted, the broker has until the end of the business day following acceptance to make the deposit.)" "Which of the following individuals may qualify for appointment to the Pennsylvania State Real Estate Commission? - CORRECT ANSWER Dennis, who has been a licensed real estate broker for five years and has sold cemetery lots for 10 years (Members include five licensed real estate brokers who have been licensed for at least 10 years, and one person who has been licensed as a real estate broker or cemetery broker for at least five years and has sold cemetery lots for at least 10 years.)" "Which of these pieces of information can be found in the Pennsylvania Consumer Notice? - CORRECT ANSWER List of duties an agent owes all consumers (whether represented or not)" "Pennsylvania broker Ben was told by his seller client that the basement on his new listing leaks. However, when reviewing the property condition disclosure the seller completed, there's no mention of this leak. What should Ben do? - CORRECT ANSWER Ask the seller if the leak has been fixed." "Sally is applying for a reciprocal salesperson's license in Pennsylvania. She actively holds a license in another state that has a reciprocal agreement in place with Pennsylvania. Which of these is a requirement for obtaining her Pennsylvania license? - CORRECT ANSWER Submitting a statement that she's familiar with Pennsylvania laws (Sally is licensed in a state that has an agreement with Pennsylvania and she's applying for a reciprocal license, so no additional education, experience, or examination requirements are needed. But Sally must be familiar with Pennsylvania laws.)" "Under Pennsylvania law, which of these items would a licensee need to disclose to any consumers? - CORRECT ANSWER The licensee has a personal or financial conflict of interest. (Pennsylvania real estate professionals must disclose any personal or financial conflicts of interest, not only to clients, but to consumers, as well.)" "In Pennsylvania, a consumer must be notified of their right to negotiate ______. - CORRECT ANSWER Listing period durations (Consumers must be notified that both listing period durations and commissions are negotiable.)" "Phoebe is acting as a dual agent in Pennsylvania. Which of the following statements is true? - CORRECT ANSWER Phoebe can show and list competing properties without breaching her duties to either client." "Joey is a licensee in Pennsylvania who's assisting with routine tasks for a transaction. He doesn't represent the buyer or the seller. Joey is a ______. - CORRECT ANSWER Transaction licensee" "Which of the following situations would MOST LIKELY be grounds for suspension or revocation of a real estate license in Pennsylvania? - CORRECT ANSWER Failure to disclose personal interest in a property" "What or who identifies specific language that must be used in real estate documents? - CORRECT ANSWER RELRA and real estate regulations (RELRA and real estate regulations identify the specific language that must be used in real estate documents.)" "Emma just signed a contract to purchase a timeshare in Pennsylvania. If she wants to cancel, within how many days must she act? - CORRECT ANSWER Five (The law allows timeshare and campground membership purchasers to cancel their contract within five days of contract execution. This right must be expressed within the contract, right above the signature line in at least 10-point type.)" "Carter is a real estate salesperson in Pennsylvania. He's got a new listing and is ready to advertise it for sale. What must he have first so he can do this? - CORRECT ANSWER Permission from the owner to advertise the property (Licensees must get owner permission before advertising a property for sale or soliciting prospective buyers. Most listing agreements obtain this permission, but it's not a required element of listing agreements in Pennsylvania.)" "Which of the following locations meets the requirements for a main real estate office in Pennsylvania? - CORRECT ANSWER A private office in a broker's home that has a separate entrance. The brokerage name is displayed on a sign outside and on the door." "In Pennsylvania, who practices real estate services under a licensed broker's supervision? - CORRECT ANSWER Salesperson" "You decide to take the earnest money deposit you've been given and place it in your personal account until it is needed at the final closing. What Pennsylvania violation have you committed? - CORRECT ANSWER Mishandling funds" "Barb, a Pennsylvania salesperson, provided Karl, a prospective buyer, with the Consumer Notice reviewing the different agency relationships available. Who signs the Consumer Notice to acknowledge that disclosure has been provided by the licensee and received by the consumer? - CORRECT ANSWER Barb and Karl (Both the consumer and the licensee must sign the Consumer Notice. The consumer signs to acknowledge receipt of the notice and the licensee signs to acknowledge the notice was provided. The signed notice is retained for six months.)" "Who selects the members of the Pennsylvania State Real Estate Commission? - CORRECT ANSWER The governor (The governor appoints members to the State Real Estate Commission to five-year terms.)" "Jimbo doesn't yet have a Pennsylvania real estate license. Which activity is he legally allowed to perform without one? - CORRECT ANSWER Give advice to a friend who is negotiating the purchase of a house. (Any activity performed for another and for a fee requires a license. Jimbo should be in the clear if he gives advice to his friend negotiating the purchase of a house as long as he's not compensated for it.)" "Shana's brother owns a local home inspection company, and Shana's buyers unknowingly selected this company for their inspection. According to Pennsylvania law, what must Shana do? - CORRECT ANSWER Disclose to the buyers her personal connection to the inspection company." "To practice real estate in Pennsylvania, you must have a real estate license and ______. - CORRECT ANSWER Pass a written exam" "What is the license period start date in Pennsylvania? - CORRECT ANSWER June 1st" "Pennsylvania law allows timeshare purchasers ______ days from contract execution to cancel the purchase. - CORRECT ANSWER Five" "Ivory is a Pennsylvania broker. Which of the following statements related to her associated licensees is true? - CORRECT ANSWER She must adequately supervise them." "Which of the following individuals does the Pennsylvania State Real Estate Commission NOT have the authority to discipline? - CORRECT ANSWER Todd, a homeowner renting out a room in his house" "Monica is a licensee in Pennsylvania. She's been disclosing to sellers all over town that she represents the buyer. What type of agent is she? - CORRECT ANSWER Buyer's agent" "Which of the following facts would disqualify Tina from obtaining a timeshare salesperson's license in Pennsylvania? - CORRECT ANSWER She's completed 15 days of on-site training. (Qualifications for a timeshare salesperson's license include: 18+ years of age, completion of 30 hours of approved coursework, and 30 days of on-site training.)" "Which Pennsylvania commission administers and enforces laws regarding licensed real estate activities? - CORRECT ANSWER State Real Estate Commission" "Which of the following individuals is acting within Pennsylvania license law? - CORRECT ANSWER Savannah didn't put a for sale sign in the yard of her new listing until she had a written contract in place permitting her to do so. (Licensees must obtain written permission before advertising a property, which includes placing for sale signs on the property. Placing a sign without permission is considered prohibited conduct.)" "Which of the following statements about renewing your Pennsylvania license and continuing education is true? - CORRECT ANSWER Pennsylvania requires licensees to complete a specified number of continuing education hours each license period to keep their licenses current. (To keep your license current in Pennsylvania, you must complete a specified number of continuing education hours each license period (every two years).)" "Norma has just entered into an agreement to act as a buyer's agent. How long must this agency agreement be retained, according to Pennsylvania law? - CORRECT ANSWER At least three years" "Which of the following individuals meets the experience requirement for a real estate broker's license in Pennsylvania? - CORRECT ANSWER George has been a licensed salesperson for three years." "In Pennsylvania, who must provide a disclosure form about the water source? - CORRECT ANSWER Sellers" "A broker wants to compensate an individual who assisted with the sale of a particular commercial property. What must be true in order for this compensation to be legal in Pennsylvania? - CORRECT ANSWER The individual must also be a licensed broker." "A/an ______ is a person or entity who owns or manages a business that collects rental information for the purpose of referring prospective tenants. - CORRECT ANSWER Rental listing referral agent" "Estelle acted as a Pennsylvania transaction licensee for a transaction. The relationship was established via written disclosure statement. How long must the broker retain a copy of this statement? - CORRECT ANSWER At least six months (Most transaction records must be retained for at least three years following the transaction's consummation, but a written disclosure statement establishing a sub-agent or transaction licensee relationship only needs to be retained for six months.)" "In Pennsylvania, who must be designated as trustee of escrow funds in custodial or trust accounts? - CORRECT ANSWER The broker" "Timothy is applying for a timeshare salesperson's license in Pennsylvania. To apply, which of the following requirements must he meet? - CORRECT ANSWER Timothy must complete at least 30 days of on-site training at a timeshare facility. (Qualifications for a timeshare salesperson's license include: 18+ years of age, completion of 30 hours of approved coursework, and 30 days of on-site training.)" "A/an ______ is an individual or entity who operates in a field limited to mausoleum spaces and burial sites in Pennsylvania. - CORRECT ANSWER Cemetery broker" "Parker is a licensee in Pennsylvania. Under license law, which of these duties does he owe to all consumers? - CORRECT ANSWER Reasonable skill and care (Pennsylvania real estate professionals owe all consumers, regardless of agency relationship, certain duties that cannot be waived. This includes exercising reasonable skill and care.)" "You've just earned your Pennsylvania salesperson license and are looking for some good marketing strategies. You know consumers are looking for an agent they feel they can trust, so you add some professional designations and associations to your name in your ads to show you're experienced and knowledgeable. What's true about your decision? - CORRECT ANSWER This is acceptable as long as you've legitimately earned the designations or are a member of any associations you include. (Licensees are prohibited from engaging in misleading or untruthful advertising, which includes using trade names or claiming membership in any associations when not a member.)" "In Pennsylvania, what must be included conspicuously on the first page of every CMA? - CORRECT ANSWER The fact that it is not an appraisal (Text must be used verbatim notifying the consumer that the CMA is not an appraisal.)" "Which option describes the salesperson application process in Pennsylvania? - CORRECT ANSWER Apply in writing on an approved form within three years of passing exam, include sworn statement by broker that will supervise and train the applicant." "A consumer filed a complaint against a licensee for possibly violating the Pennsylvania Human Relations Act. Can the State Real Estate Commission investigate this complaint? - CORRECT ANSWER Yes, but only once 90 days have passed from the time the complaint was filed. "Gunther is a new licensee in Pennsylvania, but he's moving to a different area of the state and wants to affiliate with a different broker. What must he do to make this happen? - CORRECT ANSWER Notify the commission within 10 days after the change, pay a fee, and return his license to the commission." "An interest that gives the buyer the right to periodically park a recreational vehicle or erect a tent or other similar structure on a piece of land in Pennsylvania, based on the agreement terms, is called a ______. - CORRECT ANSWER Campground membership" "Which of the following individuals would be in violation of Pennsylvania license law if performing the activity for a fee? - CORRECT ANSWER An unlicensed employee of the owner of a multi-family residential property who is collecting rent from tenants "You decide to help negotiate the sales price of a buddy's place even though you don't yet have a Pennsylvania real estate license. After the sale he pays you $50 in appreciation of your efforts. Why would this be considered an illegal activity? - CORRECT ANSWER Because you can't accept any amount of compensation for negotiating the sales price of a home that isn't your own if you don't have a license." "A seller in Pennsylvania is reviewing the exclusive listing agreement he's about to enter into with a broker. Which of the following elements should the seller expect to see in the agreement? - CORRECT ANSWER A specific duration or termination date" "Timothy is a Pennsylvania licensee representing a buyer. They're viewing a property when the buyer asks Timothy's opinion on the condition of the roof. What should Timothy do? - CORRECT ANSWER Suggest the buyer have a home or roof inspection done to determine its condition." "Andre was so happy that his non-licensed sister-in-law referred his last seller client to him that he paid her half a percent of his commission after the sale closed. What is a likely disciplinary action for this in Pennsylvania? - CORRECT ANSWER Suspension or revocation" "Natalie works for Darrell who owns Titanium Realty. Darrell supervises Natalie who meets the Pennsylvania broker license requirements. Which of the following best describes Darrell? - CORRECT ANSWER Broker of record" "Jamie Wilson and Ethan Smith are real estate licensees in Pennsylvania who work for the same firm. Caleb Jones is their unlicensed assistant. They're working on a new team advertisement. Which of the following is true? - CORRECT ANSWER Only Jamie and Ethan can be listed on the advertisement. "After having second thoughts, Peter decided to cancel his listing agreement with Orville, a Pennsylvania broker. Peter would still like to compensate Nancy, the associated licensee who was working closely with him, for the services she provided. Can he do this? - CORRECT ANSWER Yes, but payment must go through Nancy's broker Orville." "Ezra is applying for a standard salesperson's license in Pennsylvania. He actively holds a similar license in another state. What can we reasonably assume to be true? - CORRECT ANSWER He passed only the state portion of the PA licensing exam. (Ezra is applying for a standard license and only needs to pass the state portion of the exam since he holds an active license in another state. If he were applying for a reciprocal license other certifications would be required.)" "Phyllis is a salesperson in Pennsylvania. Her buyer client handed her an earnest money check for an offer and they're now awaiting the seller's decision. What's is Phyllis's responsibility related to the check? - CORRECT ANSWER Promptly hand the check over to her broker." "Samantha is a licensee in Pennsylvania. She owes all of the following duties to both consumers and clients EXCEPT which of the following options? - CORRECT ANSWER Keeping information disclosed by the party confidential" "Brennan is seeking a reciprocal broker's license in Pennsylvania. He holds an active broker license in another state. Along with his application, what else must Brennan submit? - CORRECT ANSWER Certification from the other state that his license is active and in good standing" "Janice is a Maryland real estate salesperson who holds a reciprocal license in Pennsylvania. Which state's license laws must she obey? - CORRECT ANSWER Both Maryland's and Pennsylvania's laws"