Pa Real Estate Exam Questions with Correct Answers 100% Verified By Experts| Latest Update
Guaranteed Success
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 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. 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.
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. 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.
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. 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.
4. Several weeks after a closing, an associate broker received a thank-you letter and a nice
bonus check from the seller of the house. The associate broker cashed the check because he
felt it was earned. In this situation, which of the following is true?: 1. The associate broker may
accept the bonus because he is licensed as an associate broker. 2. Accepting the money is
allowed if more than 30 days have elapsed since closing. 3. The associate broker may accept the
money if his broker permits him to do so. 4. Accepting the money is a violation of the License
and Registration Act. 4. 4. License law prohibits a salesperson or associate broker from
,accepting a commission or any valuable consideration for the performance of any act specified
in the law from any person except the licensed real estate broker with whom he is affiliated
(604 (a)(12)).
5. What determines the amount of compensation to be paid to a licensed real estate
salesperson by the employing broker?:1. Negotiation between the broker and property owner
at the time property is listed for sale. 2. The rules and regulations of the multiple listing service
to which the broker belongs 3. The code of ethics of the association or board of REALTORS® 4.
The contract between the employing broker and the licensed real estate salesperson 5. 4.
The licensed salesperson and employing broker agree to the terms of compensation to be paid
by the broker to the salesperson. Professional organizations, multiple listing services, and other
parties, such as sellers, do not dictate or control compensation arrangements.
6. A real estate company has entered into agency agreements with both a seller and a buyer.
The buyer is interested in making an offer on the seller's property. Can this occur?: 1. No,
because the real estate company would then be a dual agent. 2. Yes, as long as written agency
agreements have been entered into with both parties. 3. Yes, if the seller has agreed to pay the
commission. 4. Yes, if both the buyer and seller give their informed consent in writing after
receiving full disclosure regarding dual agency. 6. 4. In Pennsylvania, dual agency is
permitted if both parties give their fully informed consent in writing 606.4(A).
7. The listing agreement with a seller has expired, and the seller lists with a different brokerage
firm. The original listing salesperson now represents a buyer interested in the seller's property.
The original listing agent: 1. is a dual agent and must get permission from both parties. 2.
cannot disclose to the buyer information about terms acceptable to the seller that were
received during the listing period. 3. cannot disclose to the buyer information about the
physical condition of the property. 4. cannot represent the buyer. 7. 2. The original agent
may not disclose offers received during the first listing. The fiduciary duty of confidentiality
continues after the termination of the agency relationship (606.1 (g)). The agent is not a dual
agent, since the original agent no longer has an agency relationship with the seller.
8. A buyer contacts a real estate office and indicates an interest in purchasing a home in the
area. In the absence of a buyer agency relationship with the buyer, a salesperson from the real
estate office should do all of the following EXCEPT: 1. provide the buyer with information on
properties for sale in the area. 2. give the buyer information on mortgage interest rates and
terms. 3. discuss specific information regarding the buyer's motivation and urgency. 4. explain
,to the buyer about buyer agency, seller agency, and dual agency. 8. 3. The agent should not
gain information about motivation and urgency, which is generally of a confidential nature and
should not be discussed outside of an agency relationship. The agent may provide information
on properties for sale in the area, discuss mortgage interest rates and terms, and discuss
various levels of representation available to the buyer.
9. In a dual agency situation, a broker may collect compensation from both the seller and the
buyer if: 1. the broker is licensed as a dual agent. 2. the buyer and the seller are related by
blood or marriage. 3. both parties give their informed consent in writing to the dual
compensation. 4. both parties are represented by attorneys. 9. 3. Written consent to act as
a dual agent must include a statement of the terms of compensation (606.4). Both parties must
consent to the dual compensation. Neither must be represented by attorneys nor do they have
to be related.
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. 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.
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. 11. 3. By entering into an agency agreement with a
prospective tenant, the broker assumes full fiduciary responsibilities without regard for the
issue of compensation. The broker has not operated in a manner consistent with the best
interest of his client.
, 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. 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).
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.
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.
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. 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)).
Guaranteed Success
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 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. 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.
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. 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.
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. 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.
4. Several weeks after a closing, an associate broker received a thank-you letter and a nice
bonus check from the seller of the house. The associate broker cashed the check because he
felt it was earned. In this situation, which of the following is true?: 1. The associate broker may
accept the bonus because he is licensed as an associate broker. 2. Accepting the money is
allowed if more than 30 days have elapsed since closing. 3. The associate broker may accept the
money if his broker permits him to do so. 4. Accepting the money is a violation of the License
and Registration Act. 4. 4. License law prohibits a salesperson or associate broker from
,accepting a commission or any valuable consideration for the performance of any act specified
in the law from any person except the licensed real estate broker with whom he is affiliated
(604 (a)(12)).
5. What determines the amount of compensation to be paid to a licensed real estate
salesperson by the employing broker?:1. Negotiation between the broker and property owner
at the time property is listed for sale. 2. The rules and regulations of the multiple listing service
to which the broker belongs 3. The code of ethics of the association or board of REALTORS® 4.
The contract between the employing broker and the licensed real estate salesperson 5. 4.
The licensed salesperson and employing broker agree to the terms of compensation to be paid
by the broker to the salesperson. Professional organizations, multiple listing services, and other
parties, such as sellers, do not dictate or control compensation arrangements.
6. A real estate company has entered into agency agreements with both a seller and a buyer.
The buyer is interested in making an offer on the seller's property. Can this occur?: 1. No,
because the real estate company would then be a dual agent. 2. Yes, as long as written agency
agreements have been entered into with both parties. 3. Yes, if the seller has agreed to pay the
commission. 4. Yes, if both the buyer and seller give their informed consent in writing after
receiving full disclosure regarding dual agency. 6. 4. In Pennsylvania, dual agency is
permitted if both parties give their fully informed consent in writing 606.4(A).
7. The listing agreement with a seller has expired, and the seller lists with a different brokerage
firm. The original listing salesperson now represents a buyer interested in the seller's property.
The original listing agent: 1. is a dual agent and must get permission from both parties. 2.
cannot disclose to the buyer information about terms acceptable to the seller that were
received during the listing period. 3. cannot disclose to the buyer information about the
physical condition of the property. 4. cannot represent the buyer. 7. 2. The original agent
may not disclose offers received during the first listing. The fiduciary duty of confidentiality
continues after the termination of the agency relationship (606.1 (g)). The agent is not a dual
agent, since the original agent no longer has an agency relationship with the seller.
8. A buyer contacts a real estate office and indicates an interest in purchasing a home in the
area. In the absence of a buyer agency relationship with the buyer, a salesperson from the real
estate office should do all of the following EXCEPT: 1. provide the buyer with information on
properties for sale in the area. 2. give the buyer information on mortgage interest rates and
terms. 3. discuss specific information regarding the buyer's motivation and urgency. 4. explain
,to the buyer about buyer agency, seller agency, and dual agency. 8. 3. The agent should not
gain information about motivation and urgency, which is generally of a confidential nature and
should not be discussed outside of an agency relationship. The agent may provide information
on properties for sale in the area, discuss mortgage interest rates and terms, and discuss
various levels of representation available to the buyer.
9. In a dual agency situation, a broker may collect compensation from both the seller and the
buyer if: 1. the broker is licensed as a dual agent. 2. the buyer and the seller are related by
blood or marriage. 3. both parties give their informed consent in writing to the dual
compensation. 4. both parties are represented by attorneys. 9. 3. Written consent to act as
a dual agent must include a statement of the terms of compensation (606.4). Both parties must
consent to the dual compensation. Neither must be represented by attorneys nor do they have
to be related.
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. 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.
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. 11. 3. By entering into an agency agreement with a
prospective tenant, the broker assumes full fiduciary responsibilities without regard for the
issue of compensation. The broker has not operated in a manner consistent with the best
interest of his client.
, 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. 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).
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.
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.
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. 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)).
