PA State Salesperson Test
The maximum compensation that will be paid from the real estate recovery fund to satisfy claims against a licensee is
$100,000
The maximum compensation that will be paid from the real estate recovery fund to satisfy claims against a licensee is
$100,000.
An individual is found guilty of engaging in business as a broker or salesperson without being properly licensed. The penalty for the 1st offense includes a fine of up to
$500, imprisonment for a maximum of 3 months, or both.
What is the maximum penalty that may be imposed on an individual found guilty for the second time of engaging in the real estate business without a license?
A fine of $5,000 and imprisonment for a period of 2 years.
The PA real estate commission may undertake an investigation of a licensee based on all of the following EXCEPT
A random selection of licensees currently active.
A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called
ABSTRACT OF TITLE.
A tax levied according to value; generally used to refer to real estate tax. Also called the general tax.
Ad valorem tax.
What statement is TRUE regarding the real estate recovery fund?
An agreement of sale must contain disclosure language advising parties of the existence of the real estate recovery fund with a phone number to call for complete details.
A licensee has an agency representation agreement with a buyer. When showing another company's listing, what obligation does the licensee have to the seller and the agent at the other company?
Disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offer.
While negotiating terms of a listing contract with a seller, the seller suggests a listing price significantly below what the salesperson believes the property would sell for in the open market. What is the best course of action for the licensee to follow?
Disclose the salesperson's professional opinion of value and recommend that the property be listed at market value.
A real estate salesperson is representing only a buyer in a transaction. Which is a violation of salesperson's duties to the client.
Disclosing the highest price the buyer is willing to pay.
Under the terms of their listing contract, the owners may sell the house themselves and pay no commission. If their agent sells it, a commission will be due. What kind of listing contract do the owners have?
Exclusive agency listing.
The figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property's value.
GRM Gross Rent Multiplier
A purchaser tenders an earnest money deposit check with an offer to purchase and instructs the salesperson not to deposit the check until the seller accepts the offer. What should the salesperson do?
If both the buyer and seller have given written permission, the deposit check may be held pending the seller's acceptance of the offer.
A broker is found guilty and ordered to pay monetary damages to a consumer. What timeframe must the injured party file a claim for payment from the real estate recovery fund?
Injured parties must file claim to real estate recovery fund one year after termination of proceedings in connection to judgement awarded consumer.
A buyer is interested in seeing a house listed with XYZ realty but does not want to enter into an agency relationship. A salesperson from LM realty can show the buyer the house if
XYZ realty has obtained the seller's written consent to offer subagency, and the buyer is given a consumer notice and disclosure stating that LM realty represents the seller. THE SELLER MUST CONSENT IN WRITING IN ORDER FOR THE LISTING BROKER TO EXTEND AN OFFER OF SUBAGENCY. THE COOPERATING BROKER ACTING AS A SUBAGENT MUST PROVIDE THE CONSUMER NOTICE AND APPROPRIATE DOCUMENTATION TO THE BUYER PROSPECT. THE BUYER IS NOT THE ONE TO AGREE TO SUBAGENCY.
A buyer is interested in seeing a house listed with XYZ realty but does not wish to enter in to an agency relationship. A salesperson from LM realty can show the buyer the house if
XYZ realty has obtained the seller's written consent to offer subagency, and the buyer is given a consumer notice and disclosure stating that LM realty represents the seller. WHY? THE SELLER MUST CONSENT IN WRITING IN ORDER FOR THE LSITING BROKER TO EXTEND AN OFFER OF SUBAGENCY. THE COOPERTAING BROKER ACTING AS A SUBAGENT MUST PROVIDE THE CONSUMER NOTICE AND APPROPRIATE DOCUMENTATION TO THE BUYER PROSPECT. THE BUYER IS NOT THE ONE TO AGREE TO THE OFFER OF SUBAGENCY.
A property owner wants to list his property for sale with a broker but does not want to sign an exclusive listing contract. May the broker accept an open oral agreement?
Yes, as long as the licensee provides the seller a written memorandum stating the terms of the agreement. COMMISSION RULES PROVIDE FOR ORAL OPEN LISTINGS WITH SELLERS, PROVIDED CERTAIN CONDITIONS ARE MET. OPEN ORAL LISTINGS MAY BE USED TO CREATE AGENCY RELATIONSHIP. THE STATUTE OF FRAUDS DOES NOT APPLY TO LISTING CONTRACTS.
The PA Real Estate Commission may undertake an investigation of a licensee based on all of the following EXCEPT
a random selection of licensees currently still active. The commission may not investigate a random selection of licensees. The real estate commission may commence/begin an investigation of a licensees conduct upon its own motion as well as upon receipt of a verified complaint in writing from a consumer.
An agreement between a broker and a consumer in which the consumer is committed to pay a fee must be in writing, signed by the consumer, and contain all of the following information EXCEPT
a statement authorizing the broker to designate a licensee employed by the broker to act as sole and exclusive agent of the consumer. WRITTEN AGREEMENTS BETWEEN BROKERS AND CONSUMERS THAT OBLIGATE A CONSUMER TO PAY A FEE, COMMISSION OR OTHER VALUABLE CONSIDERATION MUST CONTAIN INFORMATION AS REQUIRED BY THE THE REAL ESTATE LICENSING AND REGISTRATION ACT. A BROKER, WITH WRITTEN CONSENT OF THE PRINCIPAL, MAY DESIGNATE A LICENSEE TO ACT EXCLUSIVELY AS AN AGENT OF THE SELLER-LANDLORD AND ANOTHER LICENSEE TO ACT EXCLUSIVELY AS AN AGENT OF THE BUYER-TENANT IN THE CASE WHERE A BEROKER SERVES AS DUAL AGENT.
State laws differ on whether a buyer is entitled to know about
a suicide on the property.
How many members of the PA real estate commission are required to be licensed real estate brokers at the time of their appointment?
5 members pf the PA real estate commission must be licensed brokers.
If the real estate commission receives a copy of a complaint filed with the PA Human Relations Commission alleging that a licensee has violated a provision of the PA Human Relations Act, what is the waiting period before the real estate commission may proceed with itsown disciplinary action against the licensee?
90 days if it is an initial complaint against the licensee. IN THE EVENT THE PA HUMAN REALTIONS COMMISSION DOES NOT ACT ON A DISCRIMINATION COMPLAINT WITHIN 90 DAYS AFTER IT IS FILED WITH THE PA HUMAN RELATIONS COMMISSION, THE STATE REAL ESTATE COMMISSION MAY PROCEED WITH ACTION AGAINST THE LICENSEE. THE 90-DAY WAITING PERIOD APPLIES ONLY IN INITIAL COMPLAINTS AGAINST THE LICENSEE.
Upon obtaining an exclusive listing, a broker or licensed salesperson is obligated to
give the person or persons signing the listing a legible, signed, true, and correct copy. ALTHOUGH BROKERS NORMALLY SET UP A LISTING FILE, ADVERTISE PROPERTIES AND COOPERATE WITH OTHER BROKERS, NONE OF THESE ACTIVITIES ARE REQUIRED BY RULE OR STATUTE.
The salesperson represents the seller in a transaction. When prospective buyers ask to look at the property, the salesperson must
inform them that the salesperson represents the seller's interest and maintain appropriate documentation of the Disclosure. THE CONSUMER MUST BE PROVIDED WITH THE CONSUMER NOTICE AT THE INITIAL INTERVIEW. THE BEST EVIDENCE IS THE BUYER'S SIGNATURE ON THE FORM, BUT A LICENSEE MAY PROVIDE A SERVICE WITHOUT THE BUYER'S ACTUALLY SIGNING THE DOCUMENT. THE LICENSEE MUST RETAIN APPROPRIATE DOCUMENTATION THAT THE CONSUMER NOTICE WAS PROVIDED.
The PA real estate commission has statutory authority to perform all of the following duties except
issue licenses and registration certificates to persons who comply with provisions established by the license law. The PA does not have authority to issue licenses. Licenses are issued by the Department of State.
In interest in real or personal property that is limited in duration to the lifetime of its owner or some other designated person or persons is a
life estate.
The PA real estate commission has the authority to
make and enforce rules by which all real estate licensees must abide. THE PA REAL ESTATE COMMISSION ADMINISTERS AND ENFORCES LAWS GOVERNING THE CONDUCT OF LICENSEES. THE STAT6E LEGISLATURE ENACTS LAWS THAT GOVERN LICENSEES. THE DEPARTMENT OF STATE ARRANGES FOR THE SERVICES OF A PROFESSIONAL TESTING SERVICE TO WRITE AND ADMINISTER EXAMS.
The PA Real Estate Commission has the authority to
make and enforce the rules by which all real estate licensees must abide.
An associate broker is changing employing brokers. While the change of employment forms are being processed by the commission, the associate broker may
manage a branch office on behalf of the new employing broker. WHEN AN ASSOCIATE BROKER CHANGES EMPLOYMENT FROM ONE BROKER TO ANOTHER, THE ASSOCIATE MAY, IN THE INTERIM WHEN THE LICENSE IS BEING PROCESSED, MAINTAIN A COPY OF THE NOTIFICATION SENT TO THE COMMISSION AS A TEMPORARY LICENSE PENDING RECEIPT OF A NEW LICENSE.
The unintentional misstatement or omission; does not have to be interntional to result in broker liability is
misrepresentation.
A broker lists a commercial property for sale. The listing
must state that payments of money received by the broker on account of a sale shall be held by the broker in escrow pending consummation or termination of the transaction. ALL LISTINGS MUST CONTAIN INFORMATION ABOUT THE EXISTENCE OF THE REAL ESTATE RECOVERY FUND. THERE IS NO REQUIREMENT THAT COMMERCIAL LISTINGS BE AN EXCLUSIVE RIGHT-TO-SELL CONTRACT. THE BROKER MAY NOT REQUIRE NOTIFICATION TO TERMINATE THE LISTING. REQUIREMENTS GOVERNING INCLUSIONS AND EXCLUSIONS IN LISTING AGREEMENTS COVER BOTH RESIDENTIAL AND COMMERCIAL PROPERTY LISTINGS WITHOUT DISTINCTION.
A listing contract under which the broker commission is contingent upon the broker producing a ready, willing, and able buyer before the property is sold by the seller or another broker is
open listing.
A rental listing referral agent is an individual or agency that
owns or manages a business which collects rental information for the purpose of referring prospective tenants to rental units or locations of rental units. This does not include employee of public housing authority.
According to the Truth in Lending Act, If any "trigger terms" are used in an ad, all of the following disclosures must appears in the ad EXCEPT
prepayment penalties and rebates.
Water rights are controlled under the state in
prior appropriation.
Exaggerated or superlative comments of opinions is known as
puffing.
In PA, the real estate license law is administered by the
real estate commission. THE REAL ESTATE COMMISSION HAS THE POWER AND AUTHORITY TO ADMINISTER AND ENFORCE THE LICENSE LAW. THE PA ASSOCIATION OF REALTORS IS A TRADE ASSOCIATION WHOSE MEMBERS ARE LICENSEES. THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT GENERALLY HANDLES FAIR HOUSING, NOT LICENSING ISSUES.
The primary purpose public meetings held by the real estate commission is to
solicit from members of the public their suggestions, comments, and objections about real estate practice in PA.
The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant is
subrogation. Subrogation is used by title insurers to acquire title from the injured party rights to sue in order to recover any claims they have paid.
The PA Real Estate Commission may take disciplinary action against a licensee when the licensee violates all of the following EXCEPT
the Sherman Antitrust Act. ANTITRUST LAWS ARE ENFORCED BY FEDERAL AND STATE AGENCIES OTHER THAN THE PA REAL ESTATE COMMISSION, BUT THE LICENSE LAW, RULES OF THE COMMISSION , AND STATE FAIR HOUSING LAWS ARE ALL TOPICS ADDRESSED BY LICENSE LAW AS GROUNDS FOR DISCIPLINARY ACTION AGAINST LICENSEES BY THE COMMISSION.
An associate broker is not satisfied with her present real estate company and has decided to change employing brokers. Before the associate broker may begin actively selling for the new company
the associate broker must notify the commission no later than 10 days after the intended date of change, pay the required fee, and return her current license to the commission. WHEN LICENSEES CHANGE EMPLOYING BROKERS, THEY ARE REQUIRED TO NOTIFY THE COMMISSION IN WRITING NO LATER THAN 10 DAYS AFTER THE INTENDED DATE OF CHANGE, PAY THE REQUIRED FEE, AND RETURN THEIR CURRENT LICENSE. THE ASSOCIATE BROKER MAINTAINS A COPY OF THE NOTIFICATION SENT TO THE COMMISSION AS A TEMPORARY LICENSE PENDING RECEIPT OF THE NEW CURRENT LICENSE.
The Department of housing and urban development estimate that most houses built before 1978 have some dangerous levels of lead. Because of this some agencies, such as FHA require
the buyer to acknowledge disclosure of the presence of any known lead paint.
An agreement between a rental listing referral agent and a prospective tenant must include
the rental specifications desired by the prospective tenant, such as location and rent. THE ONLY FUNCTION OF THE RENTAL LISTING REFERRAL AGENT IS TO FURNISH THE PROSPECTIVE TENANT WITH LISTS OF AVAILABLE RENTAL UNITS.
Real estate licensing is required in order to engage in
the sale of time-share intersts.
A broker has brought a ready, willing and able buyer buyer to a seller. In most listing contracts, the broker has earned his commission when
the seller accepts the offer.
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 but, rather, receives compensation from the landlords. The broker tells a landlord that the prospective tenant could probably pay a higher rent than the landlord is asking. In this situation, the licensee
violated fiduciary duties owed to the tenant. BY ENTERING INTO AN AGENCY AGREEMENT WITH A PROSPECTIVE TENANT, THE BROKER ASSUMES FULL FIDUCIARY RESPONSIBILITIES WITHOUT REGARD FOR THE ISSUE OF COMPENSATION.
A builder-owner salesperson is an individual holding a standard or reciprocal license, who is a full-time employee of builder-owner, and authorized on behalf of builder owner to do one or more of the following
1-list for sale, sell, or offer for sale real estate of the builder-owner, 2-negotiate the sale or exchange of real estate of the builder-owner 3-lease or rent, or offer to lease, rent or place for rent, real estate of the builder-owner, 4-collect or offer, or attempt to collect, rent for real estate of the builder-owner.
How accurate are statements of estimated cost and return provided by licensee required to be?
As accurate as may be reasonably expected of a person having knowledge of and experience in real estate sales. RULES OF THE COMMISSION REQUIRE THAT THE ESTIMATE OF COSTS REQUIRED TO BE PROVIDED TO THE PARTIES BE AS ACCURATE AS REASONABLY BE EXPECTED OF A PERSON HAVING KNOWLEDGE OF AND EXPERIENCE IN REAL ESTATE.
Who of the following is subject to disciplinary action by the PA real estate commission?
Campground membership salesperson
How are members of the PA real estate commission selected?
Members of the PA real estate commission are appointed by the Governor.
When a person obtains a final judgement against a licensee and seeks payment from the real estate recovery fund, what is the timeframe for making application for payment from the fund?
No more than 1 year after termination of the proceedings, including reviews and appeals, in connection with the judgement.
Which Federal law regulates the advertisement of a lender's credit terms (rates, payments, etc)?
Reg Z
Federal Truth in Lending laws are also known as
Reg Z.
Implements the Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit is
Regulation Z
Implements the Truth In Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit is
Regulation Z.
Taxes levied on a property owner to pay to install sidewalks or sewers are called
SPECIAL ASSESSMENTS.
A property owner will be leaving the state for at least a year. She lists the property with a broker on an exclusive right-to-sell basis for a term of 6 months. Which of the following should be included in the listing contract?
STATEMENT IN BOLDFACED TYPE THAT THE BROKER EARNS A COMMISSION ON THE SALE OF THE PROPERTY DURING THE LISTING PERIOD NO MATTER WHO MADE THE SALE, INCLUDING THE OWNER. Exclusive right-to-sell listing contracts are required to contain a statement in boldfaced type that the broker earns a commission on the sale of the property during the listing period no matter who made the sale, including the owner. An exclusive listing may not contain an automatic renewal clause or language giving the broker authority to execute an agreement of sale. The broker may not require a cancellation notice to terminate the listing at the end of a 6-month period.
When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person that is responsible for the loss. This is known as
SUBROGATION.
A couple signed a purchase agreement for a timeshare. Under what circumstances may they void the contract?
The couple may cancel the purchase agreement until midnight of the fifth day following the purchase of timeshare, and they may keep gifts received from looking at timeshare.
If a licensed salesperson, without the knowledge or consent of the employing broker, violates requirements regarding delivery of a Consumer Notice at the initial interview, what are the consequences?
The salesperson may have her license suspended or revoked. THE SALESPERSON'S FAILURE TO PROVIDE THE CONSUMER NOTICE AT THE INITIAL INTERVIEW IS A VIOLA;TION OF THE LICENSE LAW. LICENSEES ARE SUBJECT TO DISCIPLINARY ACTION BY THE COMMISSION, INCLUDING POSSIBLE SUSPENSION OR LICENSE REVOCATION.
If a licensed salesperson or associate broker desires to change employment from one licensed broker to another, what is required in order for the licensee to conduct activities on behalf of the new employing broker?
The salesperson or associate broker must notify the commission in writing no later than 10 days after the intended date of change, pay the required fee, and return the current license.
How long must a real estate broker keep records relating to real estate transactions?
Three years following consummation of the transaction.
The actual, visible, hostile, notorious, exclusive, and continuous possession of another's land under a claim of title. Possession for a statutory period may be means of acquiring title.
adverse possession.
In PA, all of the following would be grounds for revoking a broker's license EXCEPT
agreeing with the seller to accept a listing for more than the company's normal commission rate. A BROKER'S COMPENSATION IS NEGOTIATED BETWEEN THE PARTIES. MISLEADING ADVERTISING IS PROHIBITED AND BEING CONVICTED OF A FELONY COULD RESULT IN REVOCATION OF THE BROKER'S LICENSE.
A major difference between freehold estates and non freehold estates is that
all freehold estates are of indeterminable duration.
The term broker includes in its definition all of the following activities except
appraising real estate. A broker may manage real estate, do a CMA, and be a real estate consultant or counselor but appraisal activities are regulated by the State Board of certified real estate appraisers.
In order to qualify for examination as a broker, the candidate must
be a high school graduate or have passed a high school GED equivalency.
In order to qualify for examination as a broker, a candidate must
be a high school graduate or passed the high school equivalency exam. THERE IS NO RESIDENCY REQUIREMENT, AND CANDIDATES MAY POSSESS EDUCATION OR ECPERIENCE THAT THE COMMISSION CONSIDERS EQUIVALENT TO 3 YEARS EXPERIENCE AS A LICENSED SALESPERSON.
In order to become a member of the PA Real Estate Commission, a candidate must
be appointed by the Governor.
Brokers must supervise all licensees EXCEPT
building-owner salespersons. BUILDING-OWNER SALESPERSONS ARE LICENSED UNDER REGISTERED BUILDERS. THE OTHER CHOICES, SALESPERSONS, CAMPGROUND MEMBERSHIP SALESPERSONS, AND TIME-SHARE SALESPERSONS MUST BE LICENSED WITH AND SUPERVISED BY A BROKER.
An exception to title insurance coverage is
defects that clearly appear in the title search.
A broker received an earnest money deposit from a buyer. Under PA law, the broker should
deposit the money in an existing escrow account in which all earnest money received from buyers may be held at the same time. BROKERS ARE REQUIRED TO MAINTAIN A SEPERATE CUSTODIAL OR ESCROW ACCOUNT SEPERATE FROM ANY BUSINESS OR PERSONAL ACCOUNT. THE BROKER IS REQUIRED TO KEEPO RECORD OF ALL FUNDS DEPOSITED INTO THE ACCOUNT. THERE IS NO REQUIREMENT TO MAINTAIN A SEPERATE ACCOUNT FOR EACH DEPOSIT.
An unlicensed salesperson negotiated the sale of real estate in return for compensation. After the transaction closes, the salesperson encounters difficulty collecting the agreed fee. In this situation, the salesperson may
do nothing to recover the agreed compensation.
The primary intent of a zoning ordinance is to
ensure the health, safety, and welfare of the community.
A listing contract under which the owner appoints a real estate broker as her exclusive agent for a designated period of time to sell the property , on the owner's stated terms, for a commission is
exclusive agency listing. The owner reserves the right to sell without paying anyone a commission if the sale is to a prospect who has not been introduced or claimed by the broker.
A listing contract under which owners appoint a real estate broker as their exclusive agent for a designated period, to sell the property on the owners' stated terms, and agree to pay the broker a commission when the property is sold, whether by the broker, the owners, or another broker is
exclusive right to sell listing.
Which ty pe of listing agreement would be required to contain a statement in boldfaced type stating that the broker earns a commission on the sale of property during the listing period even if the owner sells the property without the aid of the broker?
exclusive right-to-sell. COMMISSION RULES REQUIRE THAT AN EXCLUSIVE RIGHT-TO-SELL LISTING MUST INCLUDE SPECIFIC LANGUAGE IN BOLDFACED TYPE THAT THE OWNER WILL BE OBLIGATED TO PAY THE BROKERAGE FEE EVEN IF THE OWNER SELLS THE PROPERTY WITHOUT THE AID OF THE BROKER. Remember by exclusive (owner) right to sell, owner stills pays commission.
