State Exam Questions

A partnership, association or corporation will only be granted a broker's license in Pennsylvania if every member and officer actively participating in the business has a broker's license. 1 officer or partner is designated the broker of record. the business has paid a one-time fee to the recovery fund. the business files the appropriate paperwork with the Secretary of State.

1 officer or partner is designated the broker of record.

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 salesperson or broker? 100% 80% 75% 50%

100%

Dawn wants to obtain a Pennsylvania campground membership salesperson's license and meets all the requirements except for the onsite training. Which of the following statements is TRUE? 100 days of onsite training must be completed during a 120-day period within the year prior to the submission of a license application. 30 days of onsite training must be completed during a 60-day period within 2 years prior to the submission of a license application. 30 days of onsite training must be completed during a 90-day period within 3 years prior to the submission of a license application. 60 days of onsite training must be completed during a 90-day period within 5 years prior to the submission of a license application.

30 days of onsite training must be completed during a 90-day period within 3 years prior to the submission of a license application.

Real estate education providers must retain attendance and other school records in regard to continuing education for how long, under the amended Pennsylvania Code?

4 years

How long must a licensee whose license has been revoked wait before reapplying for licensure?

5 years

Ordinarily brokers are required to keep records for a minimum of 3 years. How long is a broker required to keep the acknowledgement portion of the consumer notice applicable to timeshares?

6 months

A licensee's license has been suspended by the Commission after a payment was made from the recovery fund against him. How will the licensee regain his license? A licensee will remain on suspension until the recovery fund is repaid in full plus an additional 10% interest per year. A licensee will remain on suspension until the recovery fund is repaid in full. A licensee will remain on suspension until the recovery fund is repaid in full plus an additional 20% interest per year. A licensee will remain on suspension until the recovery fund is repaid in full and a period of 12 months has elapsed.

A licensee will remain on suspension until the recovery fund is repaid in full plus an additional 10% interest per year.

Under Pennsylvania license law, which of the following needs to have a real estate license? A partnership selling a building that it owns. A property management firm that employs fewer than three leasing agents. A licensed attorney that is acting under power of attorney to transfer real estate. A residential apartment manager that shows apartments to prospective tenants for the building owner.

A property management firm that employs fewer than three leasing agents.

Which of the following is NOT required on a current listing agreement? An expiration date A provision requiring the seller to notify the broker of intent to cancel the listing after the expiration date. The price A definite beginning date

A provision requiring the seller to notify the broker of intent to cancel the listing after the expiration date.

If a sole proprietor broker's license is suspended for 2 years, what is the effect on the associate brokers and salespeople affiliated with the broker? All affiliates' licenses are terminated. There is no affect on the affiliates. The affiliates' licenses are also suspended for 2 years. The affiliates licenses are revoked but may be reinstated after 1 year.

All affiliates' licenses are terminated. All associate brokers and salespeople are employed by and provide services on behalf of the employing broker. Therefore, if the employing broker's license is suspended or revoked, all affiliates' licenses are terminated. Associate brokers and salespeople can apply to have their licenses moved to another broker.

An individual applying for a broker's license in Pennsylvania must be a resident of Pennsylvania. Be at least 21 years old have been actively engaged in selling real estate for at least 2 years. post a performance bond of $10,000.

Be at least 21 years old Applicants for a broker's license must be at least 21, a high school graduate or equivalent; and have been an active, licensed salesperson for at least 3 years, or have educational or experience qualifications deemed equivalent.

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? Builder-owner salesperson Campground membership salesperson Cemetery salesperson Rental listing referral applicant

Builder-owner salesperson

How are the members of the Pennsylvania Real Estate Commission (PREC) selected?

By appointment by the Governor

When must a broker deposit funds received into a escrow or trust account? Within 5 business days By the end of the next business day Within 14 business days DWithin 3 business days

By the end of the next business day

An individual found guilty for the first time of engaging in business as a real estate agent without a license can be fined how much? Not more than $5,000 and imprisonment for as much as 2 years. Not more than $1,000 and 10 months in jail. Not more than $500, or imprisonment of not more than 3 months, or both. As much as $1,000.

Not more than $500, or imprisonment of not more than 3 months, or both.

Which of the following does NOT need education or training prior to licensure? Cemetery salespeople Timeshare salespeople Campground membership salespeople Rental listing referral agents

Cemetery salespeople

What type of activity are rental listing referral agents licensed to conduct? Collecting rental information in order to refer prospective tenants to rental units. Showing residential rental units in multifamily housing to potential tenants. Managing commercial property for more than one employing broker at the same time. Collecting rental application fees and security deposits on behalf of a rental property owner.

Collecting rental information in order to refer prospective tenants to rental units.

Which of the following can an employing broker NOT have a licensed salesperson perform, on their behalf? Negotiate a real estate loan Assist the broker in managing residential, multifamily real estate Negotiate the purchase, sale or exchange of commercial real estate Conduct the appraisal of a federally related mortgage loan

Conduct the appraisal of a federally related mortgage loan Real estate licensees are not authorized to appraise real estate.

Which of the following is NOT considered a breach of the Pennsylvania Human Relations Act? Discrimination against an individual who is a handler or trainer of support or guide animals. Discrimination against an individual who is deaf. Discrimination against an individual who is blind. Discrimination against an individual who is a convicted felon.

Discrimination against an individual who is a convicted felon.

Jasmine is a licensed salesperson employed by broker Eugene. Jasmine not only violates the Pennsylvania Human Relations Act 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 on Eugene's license when Jasmine's violations are brought to the Commissions attention? Eugene will have to pay any fines imposed on Jasmine out of his own funds. Eugene will only be held liable for the violations to the Pennsylvania Human Relations Act. Eugene might not have his license revoked because he did not have knowledge of Jasmine's actions. Jasmine's actions are legally Eugene's responsibility, and he will be subject to the same disciplinary action as Jasmine whether he knew about her activities or not.

Eugene might not have his license revoked because he did not have knowledge of Jasmine's actions.

When is the seller of a single-family residence is required to provide a property condition disclosure? At the time the seller agrees to an offer At the time of the property inspection At closing Prior to the buyer making a written offer

Prior to the buyer making a written offer

The broker-owner of a sole proprietorship dies leaving his estate in the care of his son, a non-licensee. The broker's employees and associated salespeople ask the son if he would like them to continue doing "business as usual" for now. Which of the following is the son required to do under Pennsylvania law? He must notify the Commission of his father's passing within 15 days and the office must be closed for business within that 15-day period, with any pending business forwarded on to the Commission. He must notify the Commission after he's appointed another broker to supervise the termination of the business and within 15 days of his father's passing. He must notify the Commission immediately and the Commission will immediately appoint another licensed broker to close the business. He must notify the Commission immediately and the Commission will immediately appoint one of the salesperson-employees a temporary broker license to close the business.

He must notify the Commission after he's appointed another broker to supervise the termination of the business and within 15 days of his father's passing.

What should a broker do when there is a dispute over the escrow? He should hold the money in escrow until the dispute is resolved. He should give the money to the Commission for disbursement. He should release the money to the buyer. He should release the money to the seller.

He should hold the money in escrow until the dispute is resolved.

Under what circumstance is the Pennsylvania Real Estate Commission REQUIRED to suspend a licensee's license? If the licensee commingles other's money with the licensee's money. If the licensee is found guilty in a civil trial of illegal discrimination. If a licensee fails to perform as promised in a guaranteed sales plan. If money is paid from the Real Estate Recovery Fund to settle a claim against the licensee.

If money is paid from the Real Estate Recovery Fund to settle a claim against the licensee.

When depositing money in an escrow account, should it be an interesting bearing account?

If under 6 months, no, if over 6 months, yes

Which of the following does the Pennsylvania Real Estate Commission's statutory authority NOT include? Issue licenses and registration certificates to people that meet the requirements established by license law. Waive all or part of continuing education requirements for a licensee due to emergency or hardship. Approve schools that offer real estate courses. Prescribe the subjects that are to be tested during the license exam.

Issue licenses and registration certificates to people that meet the requirements established by license law. The Department of State issues licenses and registration certificates, not the PREC. The other duties all fall under the authority of the Commission.

Jamie 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 is TRUE? Jamie must take the Commission-approved course BEFORE completing her onsite training. Jamie must take the Commission-approved course AFTER completing her onsite training. Jamie must take the Commission-approved course OR complete onsite training. Jamie need only take the Commission-approved course because there is no onsite training.

Jamie must take the Commission-approved course BEFORE completing her onsite training.

Jenna, an associate broker, has offered to supervise the brokerage activity at her office because her principal broker, Sam, will be away for an extended period. Which statement is TRUE? Jenna cannot supervise or manage a real estate office because these duties do not fall under those of an associate broker. Jenna may supervise and manage a real estate office because broker-associates are permitted to undertake these responsibilities. Jenna may only supervise the office during Sam's absence if he relinquishes his authority to her during his time away, and this is approved by the Commission. Jenna may only supervise the office if she has been a full-time Pennsylvania broker-associate for a minimum of 5 years.

Jenna may only supervise the office during Sam's absence if he relinquishes his authority to her during his time away, and this is approved by the Commission.

In Pennsylvania, when does a real estate salesperson's license expire?

May 31st of every even-numbered year

Which of the following is TRUE concerning listings based on a "net price?" Net listings are illegal in Pennsylvania. They are legal in Pennsylvania provided the net price is no greater than 17% of the property sale price. Net listings are legal in Pennsylvania, although discouraged. Net listings are permissible with approval of the Real Estate Commission.

Net listings are legal in Pennsylvania, although discouraged.

When broker Christine is facing a dual agency situation within her firm, she appoints designated agents. Ted becomes the designated agent for the sellers, while Dusty is named the designated agent for the buyers. If all parties act as appointed, has the dual agency been avoided? No, Christine is considered a dual agent in this situation. No, Christine's real estate firm is, in name, acting as a dual agent. Yes, because designated agents take the place of dual agents in this situation. Yes, provided Christine notifies the Commission of her actions and they agree in writing.

No, Christine is considered a dual agent in this situation.

George, a broker, is helping his lifelong friend, Nick, sell his home. Because they are friends, George tells Nick he will act as his broker for just 2% commission instead of his usual 6% and because they trust one another no contract is signed. Is this legal? No, all agreements between a broker and a client in which the broker receives a commission must be in writing. Yes, a broker and his client are free to decide the commission rate they feel is fair between themselves. Yes, an oral contract is just as binding as a written one. No, a broker must receive a minimum of 4% commission in Pennsylvania.

No, all agreements between a broker and a client in which the broker receives a commission must be in writing.

A licensee decides to take a 5-year break from selling real estate and does not renew her salesperson's license during that period. Before her license can be reissued what must she do? Successfully complete her employing broker's training program. Complete 14 hours of continuing education, with no exam required. Complete 60 hours of continuing education and pass the license exam. Submit to and pass the salesperson's license exam.

Submit to and pass the salesperson's license exam. A licensee that does not renew their license for 5 years must take and pass the appropriate license exam before the license will be reissued.

A seller has been awarded a final judgment against her dishonest former agent, and the order directing payment to her out of the real estate recovery fund has been given. The agent has no money or other assets, so which of the following damages can the seller expect to collect from the recovery fund? The actual damages Reasonable punitive damages, as determined by the court Attorney's fees and interest on the judgment The seller is not entitled to any money from the recovery fund and will have to sue the agent.

The actual damages Only ACTUAL damages can be paid from the real estate recovery fund. Punitive damages, attorney's fees, and interest on a judgment are not recoverable from the fund.

Unit 13E in a condominium community was the result of highly publicized murder several years ago. The unit was then sold to a man who subsequently died of AIDS. What are the disclosure responsibilities of the agent for the man's estate who is trying to sell the condominium unit? The agent must disclose the AIDS death but not the murder. Both the murder and the AIDS death must be disclosed. The agent is not required to disclose either event. The agent must disclose the murder death but not the AIDS death.

The agent is not required to disclose either event.

After a dispute over an escrow has gone unresolved for over 30 days, what should a broker do?

The broker may, following 30 days notice to the parties, petition the county court to make a decision as to who the money belongs.

When advertising an individual property for sale, a broker must include what? The business name of the broker as designated on the license. The name and business phone number of the listing licensee A statement or logo about the licensee's commitment to nondiscriminatory practices. The price of the property

The business name of the broker as designated on the license.

Which of the following descriptions best explains a "manager of record," as defined in the current Pennsylvania Act? A broker who has entered into a written agreement with a seller/landlord to market property as a seller's agent, dual agent or transaction licensee. BA licensee who, without entering into an agency relationship with the consumer, provides communication or document preparation services or performs other acts listed in the definition of ''broker'' or ''salesperson.'' 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. A licensee who enters into an agency agreement with the consumer for the purpose of selling real estate.

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.

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? The individual must prove they sold in excess of $750,000 of real estate within the previous 12 months. The person must move to Pennsylvania. The license issued by the other state must have been active within the 5 years prior to submitting the application for a Pennsylvania license. The individual must prove the license from the other state is on inactive status in that state.

The license issued by the other state must have been active within the 5 years prior to submitting the application for a Pennsylvania license.

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? The listing broker can only pay a bonus to a salesperson employed by that listing broker. The seller must directly pay the bonus to the salesperson. The seller must give written consent for a bonus to be offered. The listing broker can pay a bonus to any salesperson as long as the salesperson's broker gives consent.

The listing broker can only pay a bonus to a salesperson employed by that listing broker.

A broker representing the seller provides the buyer and buyer's agent with the necessary disclosures regarding the property, as reported to him by seller, who seemed truthful in his disclosures. Immediately after the buyer moves in, it is discovered that there are severe electrical wiring problems with the home. The buyer is understandably upset. Under the law, who should be held responsible? Under the law, no one will be held liable. The seller will be held liable. The seller's broker had no reason to doubt their statements and it was not his duty to verify their statements. The seller's broker will be held liable. Whether or not the sellers knew their disclosures were inaccurate, it is the sole responsibility of a clients' broker to independently verify the accuracy of their statements. It is the responsibility of the seller, the seller's broker AND his brokerage firm to make sure all disclosures are accurate and verified. Since the disclosures were not accurate in this case, all three parties will be held liable.

The seller will be held liable. The seller's broker had no reason to doubt their statements and it was not his duty to verify their statements.

When the broker of a sole proprietorship dies, the law states the business must be closed. Which of the following rules must the broker appointed by the estate to terminate the office follow? Unexpired listing agreements may not be promoted, nor may any other advertisements be made during the termination period. Unexpired listings will expire automatically 90 days after the broker dies and may not be renewed. New listing agreements may be entered into as long as the listing agreement is written to expire within 90 days of the former broker's death. Unexpired listings may be renewed and transferred to another brokerage with the client's consent.

Unexpired listings will expire automatically 90 days after the broker dies and may not be renewed.

Margie wishes to obtain a Pennsylvania cemetery salesperson's license, but she is only 19 years old. Is this permissible? No, because an applicant for a cemetery salesperson's license must be 21. No, because an applicant for a cemetery salesperson's license must be 25. Yes, because an applicant for a cemetery salesperson's license must be 18. No, because an applicant for a cemetery salesperson's license must be 30.

Yes, because an applicant for a cemetery salesperson's license must be 18.

A broker has been asked by his client to hold her money in escrow for 9 months. Is this legal? No, it is not legal under the Pennsylvania Code. Yes, it is, as long as he deposits the money in an interest-bearing account. Yes, it is, as long as he deposits the money in a non-interest bearing account. Yes, as long as the broker provides the Commission with written notice of this arrangement.

Yes, it is, as long as he deposits the money in an interest-bearing account. Although normally escrow accounts are NON-interest bearing, a broker who expects to hold money in an escrow account for more than 6 months must deposit the money in an interest-bearing account. The broker may not claim the interest on such an account.

A buyer bought a timeshare but after 3 days has had second thoughts and wishes to cancel the purchase. Can they do so? No, once the buyer has signed the contract it is binding and final. No, the buyer had until midnight of the following day of the purchase being executed to cancel the purchase, but this opportunity has now elapsed. Yes, the buyer has until midnight of the 5th day of the purchase being executed to cancel the purchase. Yes, the buyer may cancel the purchase at any time within the first 3 months.

Yes, the buyer has until midnight of the 5th day of the purchase being executed to cancel the purchase.

Which of the following persons may be disciplined by the Real Estate Commission? Anyone who pays a referral fee to an individual who is licensed in another state. Anyone who holds an inactive license. Anyone who advertises his or her services in a misleading manner. Anyone who sells real estate owned personally as "For Sale By Owner".

or her services in a misleading manner.