Chapter 10 Fundamentals quiz

After a disciplinary hearing, a report must be submitted to the Commission after which time the Commission may do any of the following EXCEPT?

Arrest the licensee

A purchaser shall have the right to cancel the purchase of a time-share or a campground membership until midnight of the ............day following the date on which the purchaser executed the purchase contract?

5th

In order to take the real estate salesperson's exam, you must have completed ............ hours of study approved by the Commission?

60

An advertisement by a licensee for the solicitation, sale or offering for sale of real estate that employs lotteries or contests or that offers prizes, certificates, gifts or free lots shall contain all of the following EXCEPT?

A guarantee that playing means you will win something

An exclusive listing agreement may not contain...?

A listing period exceeding 1 year

A licensee who solicits, sells or offers for sale real estate by using the mails or by offering prizes, certificates, gifts or lots shall maintain records that contain all of the following EXCEPT?

The name and address of everyone you solicited but did not participate

A sales contract or agreement must contain all of the following EXCEPT?

The name of the lender being used by the buyer

You are a licensed Broker. Your clients own a large plot of land on which they plan to build houses in the near future. They decide to hold a lottery to generate interest in their project. You create ads for the lottery that indicate a plot of land will be awarded to the lucky winner. You also include the value of the land; however, that value is based on what the land will be worth after development of the surrounding area. What part of Section §35.306 of SREC, if any, have you violated?

The part that requires you to include the fair market value of each prize, certificate, gift or lot offered

Most violations of RELRA can be classified as ............ or ............?

Unlicensed activity, violations of the rules and regulations of RELRA

If a broker receives a security deposit belonging to another under a lease agreement, the broker's duty to pay over the deposit shall arise?

When the tenancy ends

You passed all your exams and are now a licensee. You went out one night a couple of months ago to celebrate the closing of a very lucrative deal and you had a few drinks, after which you made the mistake of driving home. On the way home, you were pulled over and arrested for driving under the influence. You just accepted a guilty plea agreement yesterday. Are you required to report your conviction to the Commission?

Yes. A licensee is required to report being convicted of a felony or misdemeanor within 30 days of the verdict or plea.

A claim was filed against you with the Real Estate Recovery Fund and a settlement was reached with the victim. As a result, all of the following may happen EXCEPT?

You are banned from ever being licensed again

You represent the seller in the sale of a property. You do not know for a fact that the property has material defects; however, you strongly suspect that it does. You just reached an agreement for the sale of the property with a buyer. What is your obligation with regard to disclosing the potential defects?

You are required to advise the seller of their duty to disclose any material defects and provide them with an appropriate property disclosure statement

You are a Broker and you have just spent several days negotiating a deal for your client. The deal is set to close next week. Your client asks you what expenses they will incur as part of the deal. What do the rules tell you to do?

You are required to submit a written estimate of reasonably foreseeable expenses associated with the sale

If you change your fixed place of business, all of the following are true EXCEPT?

You must retake the licensing exam.

If you hold a license in another state, the Commonwealth of Pennsylvania may issue you a license if you submit a verified statement stating all of the following EXCEPT?

You never actually used your license in the other state

An advertisement by a broker about ''sales volume'' or ''production'' shall refer only to closed transactions. For purpose of this subsection, a ''closed transaction'' is?

either a listing sold or a sale made after a fully executed deed is delivered

A licensee may not knowingly be a party to a material ............ or ............representation in a writing regarding a real estate transaction in which he is acting in a representative capacity?

false, inaccurate

As a licensee, you will often be asked to perform a comparative market analysis (CMA) for a prospective seller. When you perform a CMA, you are required to include the following statement on the first page of the report: "This analysis ............been performed in accordance with the Uniform Standards of Professional Appraisal Practice which require valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest. It ............to be construed as an appraisal and ............be used as such for any purpose." What words belong in the blanks?

has not, is not, may not

A broker's escrow duty ............be waived or altered by an agreement between the parties to the transaction, between the broker and the parties, or between the broker and other brokers who may be involved in the transaction?

may not

The Commission meets as needed; however, it is also required to conduct at least one public meeting a year in all of the following places EXCEPT?

york

You are a licensed Broker and you own several investment properties. You decide to sell one and list it for sale. A prospective buyer contacts you and you introduce yourself as the owner of the property; however, you fail to mention that you are also a licensed Broker. Subsequently, you negotiate the terms of a sales agreement. What did you do wrong?

Failed to disclose that you are a licensed Broker as required

Any prize, gift, award or bonus offered in relation to the offering of sale of real property must include a statement of ............of all prizes offered?

Fair market value

Which of the following is NOT a requirement for an escrow account?

Must be at the same bank as your operating account

An exclusive listing agreement must contain all of the following EXCEPT?

Open house schedule=no -Sale or lease price -Duration of the agreement -The commission, fees, or other compensation expected on the sale or lease price

The name of the act that governs much of the practice of real estate in Pennsylvania is the?

Real Estate Licensing and Registration Act

The ............ is used to compensate victims of fraud, misrepresentation, or deceit by a salesperson, broker, or anyone else holding a real estate related license?

Real Estate Recovery Fund

You are a licensed Broker. You have accepted escrow funds from a buyer as part of a deal that you thought was successfully negotiated and scheduled to close next week. You receive a call from your client that indicates there is a problem with the deal and your client demands the escrow funds back. Shortly thereafter, you receive a call from the seller's agent indicating that the seller is asserting a claim to the escrow funds. What are you required to do with the funds you are currently holding in escrow?

Retain the money in escrow until the dispute is resolved

If you change employers, you must notify the Commission no later than ............ days after your change of employment?

10

If you wish to change your employment and work for a different licensed Broker, you must notify the Commission in writing within ............days?

10

In order to renew your real estate salespersons license, you must take ............ hours of Commission approved continuing education classes every two years?

14

In order to take the real estate broker's exam, you must have completed ............hours of study approved by the commission?

240

The Commission could impose a fine, suspend, or revoke your license if you fail to keep real estate records for at least ............ years?

3

If a Broker has more than one office...?

A separate license must be obtained for each office and displayed at each office.

Agreements between Broker and Principal OR between Broker and Consumer, if the consumer is required to pay a fee and the agreement is required to be in writing, require all of the following statements EXCEPT?

A statement explaining any history of complaints filed against the Broker

You represent a buyer who falls in love with a house. Your buyer has already qualified for the mortgage; however, she has limited funds available for closing costs. You are aware of this issue so you approach the seller's agent and ask about the seller covering closing costs. The seller's agent is adamant that the seller will NOT cover closing costs under any circumstances. You encourage your buyer to submit an offer that requires the seller to cover closing costs anyway. What rule, if any, have you violated?

Section § 35.282 of SREC that governs misleading advice, assurances and representations

All of the following are examples of violations of the "Pennsylvania Human Relations Act" that could lead to imposition of a fine and/or the suspension or revocation of your license EXCEPT?

Selling or renting a house to a minority

In the Commonwealth of Pennsylvania, the State Real Estate Commission has the power to do all the following EXCEPT?

Sentence you to jail

The Real Estate Licensing and Regulation Act (RELRA) gives the ............the authority to enforce RELRA?

State Real Estate Commission

A Broker must prominently display ............ in the office?

The Broker's license along with the license of all salespeople working for the Broker

Which of the following is not a member of the Commission?

The Governor

A broker must keep records of all funds deposited in a custodial or trust fund account, which records indicate clearly all the following EXCEPT?

The date the account was opened

In addition to the penalties the Commission may impose under the authority found in Section 455.604 of RELRA, an additional civil penalty of up to $1,000 may also be ordered pursuant to the authority found in Section 455.305. That section allows the additional penalty to be imposed by a vote of any of the following EXCEPT?

The three oldest members of the Commission