Chapter 1 (1-6 learn the basics!)

Erosion

land eroding or worn away by water or ice.

Each member of the partnership or association or an officer of the corporation who intends to engage in the real estate business must be licensed by?

licensed by the Commission as either a broker or salesperson.

Order to Show Cause sets for the charges and directs the ( ) to file a written answer within 30 days.

licensee (respondent)

- A licensee who provides financial services, title services, and insurance, construction, repair or inspection services

may not require a consumer to use any of these services. If a licensee provides financial services such as title services, insurance, or construction in addition to real estate broker services, he or she may not require the consumer to use any of these services.

Nolo contendere

this plea does not indicate guilt or innocence on the part of the defendant.

The Commission shall have how many meetings per year? And also where will they have it?

three public meetings in each of the cities of Pittsburgh, Philadelphia and Harrisburg each year.

Time share salesperson

Although there is no minimum educational requirement (such as high school graduate) for a cemetery salesperson, the applicant must be 18 years old and complete 30 hours of instruction titled "Time Share Sales ".

It is the responsibility of the broker to directly supervise all of his licensees who work for him

An employee of a broker may only receive compensation from that employing broker.

A cemetery Broker

An individual or entity licensed to engage exclusively in the sale of cemetery lots, plots, and mausoleum spaces or openings. Last member of PREC.

A licensed employee of a broker may only receive compensation from _______________________ but no other party, including the seller.

the employing broker An employee of a broker can only receive compensation from that employing broker.

Courses required for a campground membership salesperson include which of the following?

Basic contract law The Campground Membership Sales course contains areas of study in basic contract law, sales practices and procedures, sales ethics, and basic theory of campground memberships.

Not required to submit Continuing Education credits when renewing their licenses:

Cemetery Association Broker/Salesperson Rental Listing Referral Agent Campground Membership/Builder-owner/Timeshare Salesperson

To be approved as a real estate education provider, the individual or company must post a surety bond to the Commonwealth for

$10,000 The Commission approves all real estate education providers. As part of the approval process these providers must post a surety bond of $10,000 to the Commonwealth.

Personal property

(chattels) is portable, readily movable from one location to another.

Alluvion

- an increase of land on a river bank or shoreline by the act of water.

Accretion

- increase of land through natural causes.

Reliction

- the recession of water gradually leaving land.

Avulsion

- the sudden tearing away of land by a river or flood.

When do all real estate licenses Expire?

All real estate licenses expire May 31 of every even-numbered year.

Leasehold

: a possession of real estate such as leasing rather than ownership; an estate.

No license

= No commission or compensation for real estate acts.

Personal Property should always be transferred by?

A Bill of Sale!

Real estate brokers and salespersons must complete?

14 hours of Commission-approved continuing education during each two year license period.

A campground membership salesperson must be at least how old? And also what education requirements?

18 years old and under the direct supervision of a broker. Must have completed a 15 hour course titled "Campground Membership Sales".

If a person or entity is found guilty of acting as a licensee.

1st offense is a fine not to exceed $500 or suffer imprisonment for not more than three months; 2nd or subsequent offense, is guilty of a felony of the third degree. The Commission, with a minimum of five member votes, can assess an additional civil penalty of up to $1000 per offense: On any current licensee who violates provisions of the Act On any person practicing real estate without being properly licensed to do so under the Act.

If an applicant has filed a Statement of Record under the Promotional Land Sales rule and it is rejected by the Commission upon review, how long does the applicant have to request a hearing before the Commission?

20 days If the Commission rejects a Statement of Record, the applicant has 20 days to request a hearing before the Commission.

If an application under the Promotional Land Sales rule is rejected by the Commission, the applicant has _______ after such notice to request a hearing before the Commission.

20 days If the Commission rejects a Statement of Record, the applicant has 20 days to request a hearing before the Commission.

When a licensee has been convicted of or pled guilty or nolo contendere to any felony or misdemeanor how long does he have to report the verdict or plea?

30 days of the verdict or plea to the Commission.

When a salesperson wishes to change employment, the new broker sends a receipt of acknowledgement to the Commission. While awaiting the new license, the salesperson/licensee keeps a copy of this notification as a temporary license. The licensee must inform the Commission if the new license is not received within

30 days. Once a broker has sent a receipt of acknowledgement to the Commission, the licensee must inform the Commission if his or her new license is not received within 30 days.

The rental list prepared by the rental listing referral agent for prospective tenants must be verified by the agent no more than ___________ prior to the date the agent collects a fee from the prospective tenant.

4 days Pennsylvania law requires rental listing referral agent's lists must meet the desired specifications sought by the prospective tenant, and must be verified by the agent no more than 4 days prior to the date the agent collects a fee from the prospective tenant.

What will happen to those who have been convicted of a pled guilty or nolo contendere to any felony or misdemeanor?

A broker or cemetery broker who has been suspended must return his license to the Commission. The broker must post a notice which will be provided by the Commission and must be displayed prominently on or near the front of every office or branch office of the broker.

Promotional Land Sales

A broker who plans to engage in sales of a promotional nature to PA residents for property located outside of PA is required to register with the Commission. This rule does not apply to any property within or outside the Commonwealth if the property is subject to the Federal Interstate Land Sales Full Disclosure Act.

Disclosure 1

A licensee must provide a DISCLOSURE SUMMARY to consumers seeking to purchase or sell at the initial interview if that occurs in person. Disclosure must be made to tenants seeking to lease real estate and to consumers seeking to sell time share.

Disclosure 2

A licensee must provide a copy of the signed disclosure summary to the consumer and the licensee must retain a signed copy for his records. Every licensee must provide to the Commission information regarding a franchisor, network or other parent real estate company which the licensee is affiliated.

attorney-in-fact,

A person given the authority to act on behalf of another under a power of attorney.

Comparative Market Analysis:

A property evaluation that determines property value by comparing similar properties sold within the last year.

What is the rental listing referral agent's primary job?

A rental listing referral agent's job is to own or manage a business that collects rental information for the purpose of referring prospective tenants to rental units.

When can a salesperson negotiate for the terms of the lease?

A salesperson may not independently negotiate the terms of a lease nor execute a lease on behalf of the lessor.

If the disciplinary matter by the Commission is scheduled for hearing, the case is heard and a decision, known as a(an)______________________________, is rendered.

Adjudication and Order If a disciplinary matter is scheduled for hearing, the case is heard and a decision, known as an Adjudication and Order, is rendered. The respondent may appeal the decision to the Commonwealth Court.

Licensees are prohibited from 2

Advertising property without the written consent of the owner; Failing to voluntarily furnish a copy of any contract relevant to all signatories at the TIME OF EXECUTION

To obtain a Broker's license, the applicant must be at least 21 years of age and:

Be a high school graduate or its equivalency; Have completed 240 hours in real estate instruction; Have been engaged as a licensed real estate salesperson for at least three years or its equivalency; have an office; Submit a completed license application with recommendations attesting to the applicant's good reputation for honesty, trustworthiness, integrity and competence.

In a complaint proceeding, either party may approach the other about a possible settlement. If they do this and in fact negotiate a penalty that they believe is acceptable to the Commission, they complete a document known as which of the following?

Consent Agreement and Order An Consent Agreement and Order enables a complaint to be settled without a public hearing. To do this the partiers negotiate an agreed-upon penalty that will be acceptable to the Commission.

Broker of Record or Sole Proprietor Broker

Death - a corporate officer must file an application notifying the Commission of a change within 15 days. Illness or injury - a corporate officer must file with the Commission designating a new broker of record within 15 days of the appointment.

The Five Economic characteristics of land:

Demand - I want it! Utility - Pool? Lake? Etc. Scarcity - Not as available Transferability - moving, derp derp Situs - location

Water rights -

Doctrine of Prior Appropriation requires that property owners obtain permits for use of water.

Licensees are prohibited from 1

Failing to maintain proper escrow accounts, records of accounts, COMMINGLING money; AND Failing to preserve for THREE YEARS following its consummation records relating to any real estate transaction;

Who are the last 5 members of the PREC?

Five members, licensed real estate brokers of PA, engaged in the real estate business for a period of not less than 10 years.

An individual who wants to obtain a cemetery broker's license shall be at least 21 years of age and:

Have completed 75 hours* in real estate instruction; Have enough experience that the Commission considers adequate or possess at least 3 years of other equivalent experience and education; Must have an business office; Submit a completed license application with recommendations attesting to the applicant's good reputation for honesty, trustworthiness, integrity and competence.

To qualify for the Salesperson's examination, the applicant must be 18 years old and meet one of the following:

Have completed 75 hours* of real estate instruction. Have 4 credit hours of real estate instruction in a university; Possess a Letter of Certification from another jurisdiction showing an active license for the past 5 years; Possess a Juris Doctor degree from an accredited law school or a Certificate of Good Standing from the Supreme Court of the state where practicing.

The Pennsylvania Licensing and Registration Act provides for penalties if a person:

Holds himself out as a licensed salesperson, etc., within the Commonwealth without a current real estate license; Employs a person who is acting as a salesperson but does not have a license; Advertises as a licensee.

Physical characteristics of land:

Immobility, Indestructibility and Heterogeneity or nonhomogeneous

Real Estate Education Provider offers real estate education regardless of whether the learning is instructor-led or independent, excluding colleges and universities.

In advertising its classes, the real estate education provider may not hold itself out as being recommended or endorsed by the Commission.

The Commissioner of Professional and Occupational Affairs.

Its purpose is to provide administrative, logistical and legal support services to the Pennsylvania Real Estate Commission in its function as a licensing board.

Real Estate includes:

Land plus appurtenances (rights, privileges, and improvements that belong to and pass with the transfer of the property). Man-made appurtenances like houses, fences, barns, swimming pools, (man-made items that are added to the property). Natural appurtenances (made by nature) such as trees, creeks and streams. Air rights, gas rights, solar rights, light and sound rights, mineral rights, and surface rights. Each of these can be sold separately. Water rights (littoral, riparian and prior appropriation.) All property in the United States is under the allodial system.

MAID

Method of Annexation Adaptability Intent of the Parties Damage

Criminal background checks

Must be done in 90 days

Jane teaches a one-hour continuing education course approved by the Commission. She teaches the course ten times in two weeks and she applies for a continuing education waiver for 10 hours, leaving only four for her to receive in another course. Is this an appropriate solution?

No. The credit of continuing education can only be applied once for each course taught. A licensee qualified as a continuing education instructor, is eligible for a waiver of one hour of continuing education credit for each hour of actual classroom instruction. However, a course cannot be duplicated for identical credit.

Retention and Production of Records

Records should be maintained for three years after the consummation of a transaction. Exceptions:

Developers who plan to engage in sales of a promotional nature in Pennsylvania provide the Commission with the proper information by filing which of the following?

Statement of Record

Under Pennsylvania law, a land promoter must submit to the Commission all the specifics of the property by filing a

Statement of Record. A promoter engaging in sales of a promotional nature to Pennsylvania residents for property located outside of Pennsylvania must submit to the Commission all the specifics of the property and resubmit the statement of record each year to be renewed in a statement of record.

Under the Promotional Land Sales rule, a land developer informs the Commission of the condition of the title to the property, including all encumbrances, mortgages, judgments, liens or unpaid taxes, deed restrictions and covenants in the

Statement of Record. When engaging in sales of a promotional nature, the broker, developer or sub divider must submit all the specifics of the property to the Commission in a statement of record.

If there has been a violation of the Federal Interstate Land Sales Act, the Commission may:

Suspend or revoke any registration; Refer the complaint to the Consumer Protection Bureau of the Office the Attorney General; Seek an injunction or temporary restraining order to prohibit the complained activity in the Commonwealth.

A salesperson is showing a home and the buyer asks, " I heard termites are a problem here. Is this home free from termites?" What should the salesperson do?

Tell the buyer that a termite inspection by a qualified professional is a good idea A licensee is must act honestly and in good faith at all times, but is not required to conduct an independent inspection of a property, such as a termite inspection.

That licensee remains on suspension until the Fund is repaid plus 10% interest per year.

That licensee remains on suspension until the Fund is repaid plus 10% interest per year.

Exceptions for not keeping a record for 3 years

The ACKNOWLEDGEMENT portion of the consumer notice must be kept for 6 months when there is no a real estate transaction; The ACKNOWLEDGEMENT portion of the consumer notice applicable to timeshares must be kept for 6 months; The ACKNOWLEDGEMENT portion of the consumer notice applicable to leases when the licensee is working on behalf of the owner must be kept for 6 months; The written disclosure statement establishing a subagency or transaction licensee relationship must be kept for 6 months.

And the members of the Pennsylvania Real Estate Commission is?

The Commissioner of Professional and Occupational Affairs. The Director of the Bureau of Consumer Protection. Three members of the public at large shall be appointed by the governor. Five members, licensed real estate brokers of PA, engaged in the real estate business for a period of not less than 10 years. A cemetery broker.

PREC

Through the assistance of the Department of State, the Pennsylvania Real Estate Commission promulgates rules or regulations in order to administer and make effective the purposes of the Real Estate Act.

XYZ Realty has two branch offices and a main office. The brokerage company's broker's license was revoked for untruthful business practices. Susan and Jane work as salespersons in one of the branch offices. What will happen to their branch office?

The branch office license terminates automatically with the revocation of the license of the broker. A broker may have more than one office, but if his or her license is suspended, revoked, or discontinued, the licenses of all branch offices issued to that broker will terminate automatically.

The Broker's Business Office

The current license of the broker, cemetery broker or rental referral must be prominently displayed in the main office. If the office changes location, all licensees must make application to the Commission before relocating or within TEN DAYS after, designating the address of the new office and paying the appropriate fees.

The Director of the Bureau of Consumer Protection.

The law enforcer of PREC

Change of Employing Broker

The salesperson notifies the Commission in writing not later than ten days after the intended date of change, pays the fee and returns his current license. The new broker sends a receipt of acknowledgement and the Commission, upon receiving the receipt, issues a new license.

What are the minimum education requirements for a cemetery salesperson?

There are no minimum educational requirements to obtain a cemetery salesperson's license.

In addition to being 18 years of age or older and scoring a passing grade on the salesperson exam, a builder/owner salesperson applicant must meet which of the following educational requirements?

There are no minimum educational requirements. A builder/owner salesperson applicant must be 18 years of age, must pass the salesperson exam, and must apply for licensure within three years of passing the exam. There are no minimum educational requirements to obtain a builder/owner salesperson's license.

The Department of State is the administrative wing to the Commission.

They allow the licensees to become licensees.

How many members of the public at large shall be appointed by the governor?

Three members

A motel desk-clerk places a sign on the counter at work that says "If you are looking to buy a home, I can help." When he is asked by a motel patron about finding a home, the motel clerk says he is a real estate consultant and that he will give a licensed agent the patron's name after he (the clerk) determines the housing needs of the patron. When the sale is made, the motel clerk will share the commission with the licensed person. Does the clerk need a real estate license?

Yes, because he is holding himself out as a real estate consultant, working for others and collecting a fee Any person who negotiates with or aids a person in locating, or obtaining for purchase or lease, real estate must hold a valid real estate license.

Licensees who are on inactive status may only remain inactive for how long?

a five year period from the date that the licenses was placed in escrow or expired, whichever is sooner. No real estate business can be done by an inactive salesperson.

Corporeal

actual possession of the property.

The Real Estate Recovery Act provides relief and compensation for any

aggrieved person who has been the victim in a real estate transaction. The grounds for receiving this judgment are:

Freehold

an ownership in real property, an estate.

It is the duty of the Department to

arrange for the services of professional testing services to write and administer examinations on behalf of the Commission. The Department is the administrative wing to the Pennsylvania Real Estate Commission. It's duty is to; arrange for the services of professional testing services to write and administer examinations on behalf of the Commission; and issue licenses to any person who complied with the Real Estate Act.

A broker or salesperson who is selling his own real estate must disclose his licensed status to a prospective buyer _________ the buyer enters into an agreement of sale.

before Real estate brokers and salespersons can sell property they own provided they comply with the requirements of the Act, and they disclose their licensed status to a prospective buyer or lessee before the buyer or lessee enters into an agreement of sale or lease.

Air rights

can be sold separately from the land. A scenic easement may be sold so another building cannot be built to block the view. A light and air easement stops a building from blocking the light of another.

Special inspections

can only be done in certain conditions. The Commission is permitted to examine records, inspect all areas of the office and interview employees.

Annexation:

changes personal property to real property.

Littoral rights

concern properties that border bodies of water that are not moving.

Riparian rights

concern properties that border moving water such as streams and rivers.

The Pennsylvania State Real Estate Commission requires each applicant to have a

criminal background check completed within 90 days of submission to the Commission. The whole and complete truth on any form because the information will be investigated and confirmed.

A Rental Listing Referral Agent Salesperson licensee

does not need to be affiliated with a broker.

Officers of the Real Estate Commission are

elected among the commissioners themselves to serve as officers. The Real Estate Commission elects its own chairman, vice-chairman and secretary from its own members.

The Pennsylvania Real Estate Commission is composed of?

eleven members

The term of each commissioner (Of PREC) shall be?

five years or until a successor has been appointed, not to exceed six months beyond the five year appointment.

When the court orders the judgment to be paid, the liability of the fund shall not exceed $20,000

for any one claim and shall not exceed $100,000 per licensee.

Quorum

for the Real Estate Commission is a majority of its members.

Routine inspections of an office may be made no more than?

four times a year by the Commission.

A builder/owner salesperson works as a?

full time employee of a builder/owner of single and multi-family dwellings, located in Pennsylvania.

The Commission may waive the continuing education requirements in the event of?

hardships such as illness, emergencies, military service, etc.

Only those persons with a good reputation for

honesty, trustworthiness, integrity and competence shall receive real estate licenses.

Interest

is a right, a claim, title or legal share in a property.

. An appurtenance

is a right, privilege, or improvement that belongs to and passes with the transfer of property. Legal test to see if an item has become a fixture:

The commission

is empowered to oversee unlicensed individuals practicing real estate on the general public and licensed persons practicing real estate, conduct investigations, and seek criminal and civil remedies for illegal activities.

The Real Estate Commission will not become involved in disputes over monetary disputes unless?

it involves an allegation that services were billed for, but were not rendered or that the person billing is not a licensed real estate professional.

reciprocal license

means that if the other state recognizes the PA real estate license without further requirements, PA will recognize that state's licensees who wish to have a license in PA. The applicant must: Agree to a service of process in the state where he would be receiving the license Furnish a Certificate or Record of Good Standing; Verify that he has received, read and agreed to comply with all laws of the state of Pennsylvania; Pay a fee for the Recovery Fee as all Pennsylvania licensees are required.

Any licensee may request a waiver of continuing education by filing with the Commission

on or before March 31 of the renewal year unless the applicant proves satisfactorily to the Commission that it was impracticable to do so.

Inactive licensees who do not activate their licensees during the five year period of being inactive may?

only activate their licenses after that time by taking both sections of the salesperson's course and receiving a passing grade on both.

Written documents covered under the Statute of Frauds include all of the following, except

open listings. The Statute of Frauds requires every agreement for a certain cost or term to be put into writing, thus removing the possibility of false statements of testimonies. Open listings or nonexclusive buyer agency agreements are an exception, and may be oral if the seller/buyer is provided with a written memo stating the terms of the agreement.

Emblements

or fructus industriales and are considered personal property.

A broker may pay his salespeople and associate brokers organized as a

qualified association. These may not possess any real estate licenses nor hold itself out to the public as providing real estate services.

Distance education

real estate instruction delivered in an independent or instructor-led format during which the student and the instruction are separated by distance and sometimes time.

A licensee who performs services before a written agreement is signed is not entitled to recover a fee, commission or other valuable consideration in the absence of a(an)

signed agreement. A licensee can perform services before a written agreement is signed, however the licensee will not be not entitled to a fee or commission unless there is a signed agreement in place.

The responsibilities of the Pennsylvania Real Estate Commission include all of the following

the Commission has the power to conduct periodic inspections of brokers. the Commission has the right to administer the licensure program for prospective licensees. the Commission is empowered to prescribe the subjects to be tested.

Final Adjudications, Orders and Commission-approved Orders

usually represent disciplinary actions of some sort against a licensee or an unlicensed person. The commission, upon the proper hearings and due process may issue: Reprimand Suspension Revocation Fine

If the initial interview with a consumer does not occur in person, a licensee must provide the consumer with a written disclosure no later than the earlier of the first meeting in person or

when the licensee first shows a property to the consumer. A licensee must provide a written disclosure to consumers at the initial meeting when the meeting occurs in person, or at the earliest of; the first meeting in person with the consumer, or when the licensee first shows a property to the consumer.

Land promotion sales companies who advertise out-of-state land to Pennsylvania residents must be registered with the Commission

yearly. A broker, developer or sub divider planning to engage in sales of a promotional nature to Pennsylvania residents for property located outside of Pennsylvania is required to register with the Commission. The promoter must submit to the Commission all the specifics of the property and resubmit the statement of record each year to be renewed.