State Exam Questions

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? $100,000 $150,000 $20,000 $30,000

$100,000 The maximum a single consumer who was victim to a licensee's fraud, misrepresentation, or deceit during a real estate transaction can recover is $20,000. There's a maximum payout of $100,000 per licensee as well.

Emma just signed a contract to purchase a timeshare in Pennsylvania. If she wants to cancel, within how many days must she act? 10 30 Five Three

5

Pennsylvania law states a seller must return the buyer's deposit within ______ days of canceling a timeshare purchase. 10 30 Five Three

10

Three days after signing a purchase contract, Emma has decided to cancel her purchase of a timeshare in Pennsylvania. How many days does the seller have to refund her deposit? 10 Five The seller doesn't have to refund Emma's deposit. Three

10 After a contract is cancelled, the seller has 10 days to refund any deposits and provide the buyer with written acknowledgment of the cancellation.

What is the highest amount you can be fined by the Pennsylvania Real Estate Commission for a serious violation? $1,000 $10,000 $100,000 $50,000

10,000

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? Five Four Two Zero

4

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? A copy of the notification that was sent to the commission serves as the licensee's temporary license.The licensee should hang on to the existing license until the new one is issued.The licensee should make a copy of the existing license to display before submitting it to the commission.The licensee should print a temporary license from the commission's website.

A copy of the notification that was sent to the commission serves as the licensee's temporary 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? A specific duration or termination date Permission giving the broker authority to bypass commission disciplinary proceedings to resolve a dispute Permission giving the broker the authority to execute a contract on the seller's behalf The requirement of a cancellation notice to terminate the agreement at the end of the listing period

A specific duration or termination date Listing contracts must include a specific duration or termination date which can't exceed one year or automatically renew. At the end of this period the contract terminates automatically, the seller doesn't have to provide notice.

Pennsylvania broker Boris supervises several salespersons and an unlicensed assistant. Which of them meets the experience requirements to obtain a broker's license? Abigail, who's been licensed as a salesperson for three years Brenda, who's worked as an unlicensed assistant at the office for five years Chris, who's been a licensed salesperson for two years Denny, who's 45 and has held his real estate license for two years

Abigail, who's been licensed as a salesperson for three years Broker license applicants must have at least three years' experience engaged as a real estate salesperson. The commission may accept equivalent prior experience or education, but this is at the commission's discretion.

Which option describes the broker's application process in Pennsylvania? -Apply in writing on an approved form after 3 years of experience running your own business. Apply in writing on an approved form after turning 18. Apply in writing on an approved form within 3 years of passing exam, include place of business for which license is desired. Apply in writing on an approved form within 3 years of passing exam, include sworn statement by broker that will supervise and train the applicant.

Apply in writing on an approved form within 3 years of passing exam, include place of business for which license is desired.

Which option describes the salesperson application process in Pennsylvania? Apply in writing on an approved form after you have three years of real estate experience. Apply in writing on an approved form after you turn 21. Apply in writing on an approved form within three years of passing exam, include place of business for which license is desired. 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.

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.

Which of the following license holders in Pennsylvania can legally sell timeshares? Arthur, a real estate salesperson Arthur, Bonnie, and Charlene can all sell timeshares. Bonnie, a real estate broker Charlene, a timeshare salesperson

Arthur, Bonnie, and Charlene can all sell timeshares.

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? At least five years At least one year At least six months At least three years

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.

Becca won a two-day Bahamas cruise, the only stipulation being that she attend a timeshare presentation beforehand. She decided to purchase a timeshare in Pennsylvania, but the next day had a change of heart and decided to cancel. Which of the following is true? Becca can go on the cruise and isn't required to pay back the cruise cost. Becca can go on the cruise but must reimburse the timeshare presenter if she does. Becca can't go on the cruise and must reimburse the timeshare presenter for the cost. Becca can't go on the cruise but she isn't required to pay back the cruise cost.

Becca can go on the cruise and isn't required to pay back the cruise cost. If the purchaser of a timeshare decides to cancel the contract, the buyer can keep any prize or promotional items received.

Kevin, a consumer, is selling his own property. Oscar, who is represented by a Pennsylvania licensee, is making an offer on Kevin's property. Who should expect to receive a statement of estimated expenses before the two parties enter into a sales agreement?

Both Kevin and Oscar as parties to the transaction

Which of the following Pennsylvania real estate licensees has NOT completed the continuing education requirements for license renewal? Benjamin, a reciprocal license holder, has completed a three-hour CE course on landlord-tenant laws. Carter, a broker, completed 10 hours of CE, including courses on ethics, agency, and laws affecting real estate. Leslie, a salesperson, completed 14 hours of CE, including three hours on real estate ethics. Thomas, a timeshare salesperson, hasn't completed any CE.

Carter, a broker, completed 10 hours of CE, including courses on ethics, agency, and laws affecting real estate. Licensees are required to complete 14 hours of continuing education during the two-year period leading up to the renewal deadline. Reciprocal and timeshare licensees are among those that are exempt from this requirement.

A/an ______ is an individual or entity who operates in a field limited to mausoleum spaces and burial sites in Pennsylvania. Broker Cemetery broker Cemetery salesperson Salesperson

Cemetery broker A cemetery broker is an individual or entity who engages in the business in the capacity of a broker, exclusively within the limited field of business that applies to cemetery lots, plots and mausoleum spaces. A cemetery associate broker and a cemetery salesperson are individuals that are supervised by a cemetery broker.

Danielle's Pennsylvania salesperson's license expired a year and a half ago. What does she need to do to reactivate the license? Apply for a new salesperson's license. Complete 14 hours of continuing education and pay a renewal fee. Complete 14 hours of continuing education, pay a renewal fee, and retake the real estate salesperson exam. Complete 75 hours of pre-licensing education, pass the real estate license exam, and re-apply for licensure.

Complete 14 hours of continuing education, pay a renewal fee, and retake the real estate salesperson exam.

In Pennsylvania, who or what entity receives complaints filed against a licensee? Department of State The affiliated broker The Bureau of Real Estate Professionalism The State Real Estate Commission

Department of State The Department of State receives complaints filed against licensees.

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? -Continue the conversation, then provide a written agency disclosure at the first in person meeting. 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. Provide an oral disclosure related to possible agency relationships, after which, written disclosure isn't required. Stop the phone conversation and set up an in-person meeting, during which written disclosure of possible agency relationships can be provided.

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.

Which of the following actions could lead to license suspension or revocation in Pennsylvania? Advising a client to review a contract with his attorney before signing it Encouraging a contract party to break that contract in order to sign on with you Performing a comparative market analysis for a client and telling them that it's not an appraisal Selling one's own property without the assistance of a real estate broker

Encouraging a contract party to break that contract in order to sign on with you

Which of the following do Pennsylvania licensees owe to all consumers, regardless of agency relationships? Engage in honest and good-faith dealings. Maintain confidentiality. Obey any and all lawful orders. Provide undivided loyalty.

Engage in honest and good-faith dealings. Pennsylvania real estate professionals owe all consumers, regardless of agency relationship, certain duties. This includes engaging in honest and good-faith dealings and providing services in a professional and competent manner.

Which of the following documents does a Pennsylvania broker need to retain for three years? Consumer Notice Expired listing agreement Sub-agent agreement Transaction licensee agreement

Expired listing agreement Most transaction documents and contracts must be retained for three years. Consumer Notices and sub-agent and transaction licensee agreements only need to be retained for six months.

Which of the following situations would MOST LIKELY be grounds for suspension or revocation of a real estate license in Pennsylvania? -Failure to determine the correct list price in a comparative market analysis -Failure to disclose personal interest in a property -Failure to find a buyer for a listed property -Failure to include a broker protection clause in a listing agreement

Failure to disclose personal interest in a property Disclosing personal interest in a property is required in Pennsylvania. Failure to do so can be deemed a violation of law and lead to license suspension or revocation.

If your Pennsylvania license has been expired for more than ______ year(s), you must retake the exam and reapply for licensure. 10 Five One Three

Five

Pennsylvania law allows timeshare purchasers ______ days from contract execution to cancel the purchase. 10 30 Five Three

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.

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 ______. Be an employee of a Pennsylvania-based brokerage firm Become a member of the Pennsylvania Association of Realtors® (PAR) Follow the standards of conduct Join the National Association of Realtors® (NAR)

Follow the standards of conduct -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 follow the standards of conduct.

What does Pennsylvania call it when you contact the public with unsolicited offers via a multitude of communication vehicles, and in high frequency, even with your buyer's permission? FraudHarassmentMisrepresentationPanic selling

Harrasssment

What must be done in order to qualify for a cemetery broker's license in Pennsylvania? -60 hours in approved prelicense education, including fair housing and ethics -At least 18 years of age -Have been engaged full time as a salesperson or cemetery salesperson for at least three years, or possess equivalent education or experience (to be determined by the Commission) -Pass the real estate broker's exam

Have been engaged full time as a salesperson or cemetery salesperson for at least three years, or possess equivalent education or experience (to be determined by the Commission)

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? He has at least three years' experience in real estate. He passed only the state portion of the PA licensing exam. He's completed at least 30 hours of pre-licensing education. He's submitted certification from the other state that his license is active and in good standing.

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

You just saw the latest reports, and your brokerage outsold everyone else in your Pennsylvania town. On your next round of advertising you decide to include "Top Selling Broker in Town!" What else must you also include on the advertisement? Identifying logo of your brokerage Identify the specific municipality where your market is Number to the SREC Sales numbers for both you and all of your competitors

Identify the specific municipality where your market is Any advertisement including a claim about a position in the market must include information identifying the specific municipality where your market is.

Irene is a Pennsylvania salesperson currently associated with Henry. She'd like to affiliate with Gina. Which statement is true? -Irene can be associated with both Henry and Gina at the same time. -Irene can change affiliation to Gina, but must notify the commission within 10 days of the change. -Irene can change affiliation to Gina, but must notify the commission within 30 days of the change. -Irene must stay affiliated with Henry

Irene can change affiliation to Gina, but must notify the commission within 10 days of the change. Licensees may only be associated with one broker at a time. If licensees choose to change affiliation, they must notify the commission within 10 days.

Which of the following actions would violate Pennsylvania's Human Relations Act? A college assigns only men to all the rooms in a dormitory. Damian owns a home and is renting out a bedroom that will share the home's kitchen and living room. He only shows the room to men. Jamie is a property manager of several buildings and doesn't show units on the first floor to women. Sally, a landlord and occupant in a property with a common entrance, only shows an available room to females.

Jamie is a property manager of several buildings and doesn't show units on the first floor to women.

Marjory is a Pennsylvania salesperson representing a seller on behalf of her broker, Leonard. Kenneth is a salesperson representing a buyer on behalf of his broker, Jason. Marjory's listing agreement provides for compensation to the buyer's agent in the transaction. From whom will Kenneth receive his compensation? Jason Leonard Marjory The seller

Jason

Samantha is a licensee in Pennsylvania. She owes all of the following duties to both consumers and clients EXCEPT which of the following options? -Advisement to seek professional advice when matters are outside the scope of her license -Disclosure of any conflicts of interest -Keeping information disclosed by the party confidential -Timely accounting of trust funds, escrow money, and personal property belonging to the party

Keeping information disclosed by the party confidential

Which of the following statements about reciprocity is true? It is illegal in all states It is illegal in Pennsylvania It is permitted nationwide Licensees must obtain their license from the state in which they do most of their business

Licensees must obtain their license from the state in which they do most of their business -Pennsylvania has reciprocity with several other states, but licensees must obtain their license from the state in which they do most of their business.

In Pennsylvania, a consumer must be notified of their right to negotiate ______. Advertising rules Fair housing laws Listing period durations MLS fees

Listing period durations Consumers must be notified that both listing period durations and commissions are negotiable.

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? June 1 May 1 May 11 May 15

May 11

A timeshare developer in Pennsylvania is offering prospective buyers $5,000 off their purchase price if the buyer waives the right to cancel upon signing a purchase agreement. Is this legal? No, developers can't tie this waiver to any sort of incentive. No, per Pennsylvania law, the buyer's right to cancel can't be waived. Yes, as long as the buyer agrees in writing to waive this right separate from and before signing a purchase agreement. Yes, as long as this waiver is documented in the purchase agreement and the buyer initials the waiver statement.

No, per Pennsylvania law, the buyer's right to cancel can't be waived.

Dwight is a licensee in Pennsylvania who has notified the commission he's changed affiliations and has returned his license. It's been over a month, and he still hasn't received his new license. What should he do? Nothing, the commission won't send a new license. Notify the commission. Stop practicing real estate until he receives his new license. Submit a new application to the commission.

Notify the commission. Dwight should keep a copy of the notification he sent to the commission, which will serve as a temporary license until the new license is received. Since it's been more than 30 days since he sent his notification, he must contact the commission.

To practice real estate in Pennsylvania, you must have a real estate license and ______. Be a native of Pennsylvania Become a member of the Pennsylvania Association of Realtors® (PAR) Pass a written exam Provide proof of membership with the National Association of Realtors® (NAR)

Pass a written exam

Rachel is a real estate salesperson in Pennsylvania. The commission recently revoked her license because of fraudulent conduct. Which of the following is true? Rachel also faces possible jail time due to her fraudulent conduct. Rachel can continue practicing real estate, but commission supervision is required for all her activities. Rachel can never practice real estate in Pennsylvania again. Rachel must stop practicing real estate for at least five years. After that, she can apply for a new license.

Rachel must stop practicing real estate for at least five years. After that, she can apply for a new license.

Patty is a bit of a matchmaker. She doesn't sell dream properties to individuals. Instead she sells lists of available properties in Pennsylvania to prospective tenants in hopes they can find a match made in heaven. Which of the following best describes Patty? Campground membership salesperson Rental listing referral agent Salesperson Time-share salesperson

Rental listing referral agent Not quite. A rental listing referral agent is an individual or entity who owns or manages a business that collects rental information for the purpose of referring prospective tenants to rental units and sells lists of available properties.

Roger is acting as a buyer's agent in Pennsylvania. Which of the following statements is true? -Roger can show a property a buyer client is interested in to other buyers if his buyer client provides written permission. -Roger can show a property a buyer client is interested in to other buyers without breaching any duties to the client. -Roger can show a property a buyer client is interested in to other buyers without breaching any duties to the client if all buyers agree to dual agency representation. -Roger can't show a property a buyer client is interested in to other buyers without breaching duties to his client.

Roger can show a property a buyer client is interested in to other buyers without breaching any duties to the client Buyer's agents may show a property a buyer client is interested in to other buyer clients without breaching any duties. They don't need permission from their client and representing multiple buyers wouldn't result in a dual agency situation.

Which of the following individuals is acting within Pennsylvania license law? -Leo convinces his neighbor Nelly to cancel the listing agreement she entered into with another licensee so that he can sell her house and earn the commission. He offers to kick back a portion of the commission to Nelly as a thank you. -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. -Thomas just received a commission check for a closed transaction. He sends a portion of that commission to his associated licensee who represented the seller, and a portion to the salesperson from another brokerage who represented the buyer. -Upset that his seller suddenly decided to take his property off the market after a couple weeks of activity, Noel gets his frustration out by shredding all the documents related to the transaction.

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

Tandy is a licensed timeshare salesperson in Pennsylvania. Which of the following statements best describes the renewal requirements for this license? She has the same renewal requirements as do real estate salespersons. She must complete 14 hours of continuing education every two years. She must renew her license every two years. She's not subject to any renewal requirements, but must notify the commission when she stops practicing real estate.

She must renew her license every two years. Timeshare salespersons are exempt from the 14-hour CE requirement that real estate salespersons are subject to, but timeshare license holders must still renew their license every two years

Lisa holds a reciprocal salesperson's license in Pennsylvania. Which of the following is true? She can only make referrals in Pennsylvania and cannot fully practice real estate. She can serve on the Pennsylvania real estate commission. She must pass the same licensing exams that standard license holders must take. She's exempt from continuing education requirements.

She's exempt from continuing education requirements.

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? -Completing Pennsylvania-specific pre-licensing education courses -Having at least one year of experience as a salesperson in another state -Passing the Pennsylvania portion of the licensing exam -Submitting a statement that she's familiar with Pennsylvania laws

Submitting a statement that she's familiar with Pennsylvania laws

Summer is a real estate salesperson in Pennsylvania who works for ABC Brokerage. The main office is in Philadelphia, but Summer works out of the King of Prussia branch office. Which of these statements is correct? -Summer's license will be displayed at the King of Prussia office. -Summer's license will be maintained at the Philadelphia office, and the King of Prussia office will include Summer's name on the list of licensees working out of that office. -Summer's original license will be maintained at the Philadelphia office, and a copy will be on display at the King of Prussia location. --The main office will maintain a list of all employees working out of branch offices.

Summer's license will be maintained at the Philadelphia office, and the King of Prussia office will include Summer's name on the list of licensees working out of that office. -The broker's current license and any affiliated licensees' licenses must be maintained at the main office. Brokers must keep a list of all licensees at the branch office where they work.

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?

Suspension or revocation

Which of the following actions may NOT be a violation of the Pennsylvania Human Relations Act? -Denying financing to mortgage applicants of Puerto Rican descent -Refusing to show a one-bedroom apartment to a pregnant woman -Showing a home in a neighborhood only to Presbyterians -Telling a gay prospective tenant that there aren't any units available when there are

Telling a gay prospective tenant that there aren't any units available when there are Familial status, religious creed, and ancestry are among the protected classes. Sexual orientation isn't a protected class, but complaints can be filed under the sex protected class and reviewed on a caseby-case basis for possible discrimination.

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? The commission is seeking to avoid budget cuts for the upcoming renewal period. The commission's revenues are projected to exceed its expenditures for the upcoming renewal period. The number of renewals for the next period are expected to decrease and increasing the fee will allow the commission to collect the same revenue. The Real Estate Recovery Fund will have less than $300,000 at the beginning of the license renewal period.

The Real Estate Recovery Fund will have less than $300,000 at the beginning of the license renewal period.

In Pennsylvania, what must be included conspicuously on the first page of every CMA(comparative marketing analysis)? The broker's name and contact information The fact that it is not an appraisal The license number of the person performing the appraisal The phone number of the Consumer Financial Protection Bureau

The fact that it is not an appraisal

Who selects the members of the Pennsylvania State Real Estate Commission? The Board of Trustees The governor The mayor of Harrisburg The Real Estate Broker's Association

The governor

Reba is a member of the Pennsylvania Real Estate Commission. She's choosing to resign her position. How is a replacement chosen? Pennsylvania residents will vote on Reba's replacement. Reba can choose her own replacement. The governor appoints a new member with similar qualifications as Reba. The remaining commission members choose Reba's replacement.

The governor appoints a new member with similar qualifications as Reba.

How is Pennsylvania's Real Estate Recovery Fund funded? Through a $10 fee at license issuance and renewal Through fines issued to licensees who violate license law Through money budgeted by the state senate Through taxes levied by the state

Through a $10 fee at license issuance and renewal

Timothy is applying for a timeshare salesperson's license in Pennsylvania. To apply, which of the following requirements must he meet? Timothy must be at least 21 years old. Timothy must complete at least 15 hours of approved coursework. Timothy must complete at least 30 days of on-site training at a timeshare facility. Timothy must pass the salesperson licensing exam

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.

What is the purpose of the Pennsylvania Consumer Notice? To inform consumers about their representation choices To make the relationship between licensee and consumer contractual To notify consumers that a lien has been placed on a property To set the terms of the relationship between a licensee and consumer

To inform consumers about their representation choices

What is the purpose of the Pennsylvania Consumer Notice? To inform consumers about their representation choices To make the relationship between licensee and consumer contractual To notify consumers that a lien has been placed on a property To set the terms of the relationship between a licensee and consumer

To inform consumers about their representation choices

Louis is a real estate broker in Pennsylvania. He's moving his office. What obligation does he have? To notify the commission at least 10 days before the move To notify the commission within 10 days after the move To notify the commission within 30 days after the move To provide any client he worked with in the last six months with a change of address notification

To notify the commission within 10 days after the move If an office is closing or licensees are moving to a new office, they must notify the commission no later than 10 days after the move so a new license can be issued with the new office address.

Michael is a salesperson in Pennsylvania who works for a broker named May. Michael is representing a buyer whose offer to purchase a property was accepted. Angela is the salesperson representing the seller in the transaction. Her broker, Tommy, is designated as the escrow agent for the transaction. Who should be named as the trustee on the account holding the buyer's earnest money check? May Michael The buyer Tommy

Tommy Brokers must be named as trustee on trust accounts and must keep accurate records related to all trust funds and accounts. Tommy is assuming escrow duties for this transaction, so he must be named as trustee on the account.

Toby is a Pennsylvania licensee meeting with a consumer who's interested in listing a property for sale. At what point does Toby need to provide the Consumer Notice to the prospective seller? Any time prior to the seller entering into a sales agreement with a buyer At first contact Upon entering into a listing agreement Upon first substantive contact

Upon first substantive contact

Which of the following individuals must complete 14 hours of continuing education in the two years leading up to their Pennsylvania license renewal? Izzy, who holds a rental listing referral agent's license Phillip, who holds a reciprocal broker's license Samuel, who holds a timeshare license Veronica, who holds a standard salesperson's license

Veronica, who holds a standard salesperson's license Reciprocal license holders, cemetery brokers/salespersons, rental listing referral agents, and builder owner, time-share, and campground membership salespersons are exempt from the 14-hour CE requirement.

Wally is a Pennsylvania licensee. He's planning to purchase a house with several acres of land from seller Seth. Based on Wally's expertise, he believes the property is being underutilized and plans to divide the land into several separate lots to sell off individually. What does Wally need to disclose to Seth? -Wally doesn't need to disclose anything to the seller. -Wally must disclose his true intention related to the property. -Wally needs to disclose his anticipated future profit. -Wally needs to disclose his license status.

Wally must disclose his true intention related to the property. -Licensees must disclose in writing their true intention regarding a property if they have an interest in the property, and any conflicts of interest they may have. Licensees must disclose their license status when selling their own property.

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? No, Nancy can only be compensated if the transaction closes. No, there's no written agreement in place entitling Nancy to receive payment. Yes, but payment must go through Nancy's broker Orville. Yes, Peter can compensate Nancy directly.

Yes, but payment must go through Nancy's broker Orville. Compensation for real estate services must be paid through the licensee's broker. Although the listing was cancelled, Peter decided to still compensate Nancy for the real estate services she provided. This compensation goes through Orville.

What happens to you if you are involved in a case and cannot pay the judgment amount, and the consumer is awarded money from Pennsylvania's Real Estate Recovery Fund? Nothing! That is what the fund is for! You can continue to practice real estate but must pay back the money to the fund at 10% interest You must pay back the money from the fund at 30% interest from your real estate commissions. You will be suspended and cannot be reinstated until you pay back the fund at 10% interest.

You will be suspended and cannot be reinstated until you pay back the fund at 10% interest.