Pa practice Exam
The maximum compensation that will be paid from the Real Estate Recovery Fund to satisfy claims against a licensee is: $20,000. $100,000. $200,000. $10,000.
$100,000.
How many members of the Pennsylvania Real Estate Commission are required to be licensed real estate brokers at the time of their appointment?
5
An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following penalties upon conviction for a first offense? A fine not to exceed $5,000 and a mandatory prison term not to exceed 5 years A fine not to exceed $500 A fine not to exceed $1,000 and one year imprisonment A civil penalty of $5,000 in addition to other penalties provided by law
A fine not to exceed $500
Which of the following statements is false in regards to the Real Estate Recovery Fund? A licensee on whose behalf money has been paid must reimburse the fund plus interest at 10% per year. A licensee on whose behalf money has been paid will have his or her license automatically suspended as of the date of payment. The maximum liability of the fund shall not exceed $20,000 for any one claim. The recovery fund does not apply to the sale of campground memberships.
A licensee on whose behalf money has been paid must reimburse the fund plus interest at 10% per year.
Which of the following options is NOT exempt from providing a Property Disclosure Statement in Pennsylvania? A conveyance of a primary residence from one former spouse to another under a divorce settlement agreement. A foreclosure sale. A new construction sale covered by a builder's warranty. A sale by a real estate licensee of a two-unit residential property being sold by the owner.
A sale by a real estate licensee of a two-unit residential property being sold by the owner.
One month after closing, Nelson, an associate broker received a thank-you letter and a nice bonus check from Mr. Lamb, the seller of the house. Nelson cashed the check. In this situation, which of the following is true Nelson may accept the money if his broker is aware and permits him to do so. Accepting the money is a violation of the License and Registration Act. Accepting the money is allowed if more than 30 days have elapsed since closing.
Accepting the money is a violation of the License and Registration Act.
Which of the following is against the Pennsylvania Real Estate Commission's policy on use and advertising? Advertising using a pseudonym. Advertising using your full name. Advertising using your brokers name. Advertising using a nickname.
Advertising using a pseudonym.
All of the following are persons who may be exempt from the license law except: An Auctioneer. An employee of a public utility. An attorney-in-fact. An attorney-at-will.
An attorney-at-will.
Which of the following options is true regarding agency relationships between licensees and consumers? If a broker chooses to represent both buyers and sellers under agency relationships, the broker must adopt a policy appointing designated agents An open listing agreement creating an agency relationship between a seller and broker may be an oral agreement A broker may not represent both a buyer and seller as an agent in the same transaction All agency relationships must be expressly created by written agreements
An open listing agreement creating an agency relationship between a seller and broker may be an oral agreement
Who is exempt from the provisions of the Pennsylvania Real Estate Licensing and Registration Act? An associate broker who sells cemetery property. An individual who sells timeshare property. An associate broker who leases residential property. An owner who leases his/her own property.
An owner who leases his/her own property.
How accurate are statements of estimated cost and return provided by licensees required to be? As accurate as may be reasonably expected of a person having knowledge of and experience in real estate sales. Since they are only estimates, there is no specific requirement regarding accuracy of the information provided. The statements provided must be within $500 of the actual cost or return in order to avoid liability. Within 10% of the actual figures determined at settlement.
As accurate as may be reasonably expected of a person having knowledge of and experience in real estate sales.
When are statements of estimated cost and return provided to the parties to a transaction by the broker involved in the transaction? Within three days of the buyer's loan application. When all contingencies addressed in the contract have been satisfied. One business day prior to settlement of the transaction. Before an agreement of sale is executed by the parties.
Before an agreement of sale is executed by the parties.
When must a licensee provide statements of estimated costs to parties involved in a purchase of real estate? One business day prior to closing the transaction. Before an agreement of sale is executed. At the closing when title is passed from the seller to the buyer. When the buyer makes formal application for a mortgage loan.
Before an agreement of sale is executed.
Nelson, a broker is convicted of felony possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. Two months later, Nelson calls the Pennsylvania Real Estate Commission and leaves a message informing the commission of the conviction. Based on these facts, which of the following is true? Nelson has properly informed the Pennsylvania Real Estate Commission after the conviction, and his license will not be affected. The conviction is evidence of both improper dealing and fraud. Both the conviction and Nelson's failure to properly notify the commission within 30 days of the conviction are grounds for suspension or revocation of Nelson's license. Because the conviction did not occur in state, it is not grounds for suspending or revoking Nelson's license.
Both the conviction and Nelson's failure to properly notify the commission within 30 days of the conviction are grounds for suspension or revocation of Nelson's license.
Rental listing referral agents are licensed to engage in which of the following activities? Engage in commercial property management activities on behalf of more than one employing broker at the same time. Collect rental application fees and security deposits on behalf of an owner of rental property. Collect rental information for the purpose of referring prospective tenants to rental units or locations of rental units. Show residential rental units in multifamily housing to prospective tenants.
Collect rental information for the purpose of referring prospective tenants to rental units or locations of rental units.
What is the purpose of the Real Estate Recovery Fund? Compensate real estate salespersons if the salesperson's employing broker declares bankruptcy. Provide a source of funds to settle disputes between buyers and sellers arising from agreements of sale. Enable the public to secure payment of uncollected judgments against licensees. Provide a direct source of compensation to sellers if the broker mishandles escrow deposits.
Enable the public to secure payment of uncollected judgments against licensees.
A consumer hires Nelson, a broker to serve as a buyer's agent. Nelson currently has a property exclusively listed for sale that fully meets the buyer prospect's needs. Which of the following best describes the responsibility of Nelson in this situation? Following disclosures required at the initial interview, Nelson must secure the written consent of both parties in order to act as a dual agent. Nelson must refer the buyer to a cooperating broker on a referral basis if the buyer wants representation. Since Nelson already represents the seller, Nelson cannot enter into a buyer agency contract with regard to the listed property. Nelson is required to designate one salesperson to represent the buyer prospect and a different salesperson to represent the seller whose property is listed with the broker.
Following disclosures required at the initial interview, Nelson must secure the written consent of both parties in order to act as a dual agent.
What is the Real Estate Recovery Fund? Fund to provide reimbursement to victims of fraud committed by real estate licensees. Fund to provide reimbursement to persons who lost their property due to natural causes All of the other options are correct Fund to provide reimbursement to victims of stolen property.
Fund to provide reimbursement to victims of fraud committed by real estate licensees.
When is a violation of the license law on the part of a salesperson grounds for revocation or suspension of the license of the employing broker? Only if the salesperson was an employee, rather than an independent contractor. Only if the employing broker and the licensed salesperson worked from the same office of the broker. If it can be shown that the conduct that resulted in the disciplinary action was a common course of dealing for that salesperson. Only if the offense involved monetary damage to a consumer.
If it can be shown that the conduct that resulted in the disciplinary action was a common course of dealing for that salesperson.
When a selling broker negotiates a sale of property listed by a cooperating broker, who is responsible for assuming the duties regarding escrow of the buyer's deposit check? If the buyer gives the sales deposit to the listing broker, rather than to the selling broker, the listing broker assumes the escrow duty. The rules of the local multiple listing service dictate which broker will hold the escrow deposit. The selling broker is required to hold the buyer's deposit in escrow if acting as the buyer's agent.
If the buyer gives the sales deposit to the listing broker, rather than to the selling broker, the listing broker assumes the escrow duty.
Under which circumstance may a licensed individual not place a table with an ad banner at a builders show or mall expo? If the table is of a temporary nature. If the table is to be left for long periods of time with only an unlicensed assistant answering questions. If the table placement does not occur over an extended period of time. If the table is to be manned by a licensed salesperson or broker
If the table is to be left for long periods of time with only an unlicensed assistant answering questions.
At what point may the commission assess an additional fee against each licensee in order to add to the amount of money in the recovery fund? If, at the beginning of a biennial renewal period, the balance in the fund is less than $300,000. the commission's annual general meeting. At any point when the amount available in the fund is below $500,000. When the commission is directed to do so by executive order of the governor.
If, at the beginning of a biennial renewal period, the balance in the fund is less than $300,000.
In reference to license laws and rules and regulations of the commission, what does the term "broker of record" refer to? Individual broker responsible for the real estate transactions of a partnership, association, or corporation that holds a broker's license Associate broker authorized to directly control and supervise activities at a licensed branch offic Employing broker who employs other associate brokers to work on his or her behalf Sole proprietor who maintains multiple branch offices and hires associate brokers to manage those offices
Individual broker responsible for the real estate transactions of a partnership, association, or corporation that holds a broker's license
Which of the following could be construed as the unauthorized practice of law? Providing each party with a written estimate of reasonably foreseeable expenses associated with the sale before the agreement of sale is executed. Making sure that the written agreement of sale includes a statement as to whether the broker is the agent of the seller or the agent of the buyer. Keeping copies of all documents involved in the transaction in his / her files for 3 years after consummation of the transaction. Informing the buyer of the broker's personal opinion of the condition of the seller's title to the property.
Informing the buyer of the broker's personal opinion of the condition of the seller's title to the property.
When advertising an individual property for sale, Jones, a broker must also include: a statement or logo affirming Jones' commitment to nondiscriminatory business practices. Jones' business name as designated on the license. the price of the property being advertised. the name and business telephone number of the listing salesperson or associate broker.
Jones' business name as designated on the license.
Arthur, a broker advertises his production or position in the market. What must be included in the advertisement? Municipality that the market comprises. Dollar volume of sales transactions written in the market. Number of cooperating brokers that engage in business in the market. Number of licensed branch offices that the broker maintains in the market.
Municipality that the market comprises.
An airline pilot told Harrison, a broker about some friends who were looking for a new home. Harrison contacted the friends and eventually sold them a house. When may Harrison pay the airline pilot a referral fee? As soon as a valid sales contract is signed by the parties. As soon as Harrison begins working with the buyer prospect. Never, since a broker may not pay a referral fee to an unlicensed individual. Only after the sale closes.
Never, since a broker may not pay a referral fee to an unlicensed individual.
Taylor, a broker who maintains multiple branch offices, wants to give Tyson, an associate broker managing a branch office, authority to directly hire salespersons or other associate brokers. Is this permitted? Yes, provided that a list of all licensees employed by the branch office manager is maintained at the main office of the employing broker No, a broker of record may only supervise and direct activities in one branch office Yes, if the associate broker managing the office is a partner or corporate officer of the broker No, only Taylor is authorized to hire or employ salespersons or associate brokers
No, only Taylor is authorized to hire or employ salespersons or associate brokers
In Pennsylvania, which of the following options is legal and will not result in a broker facing suspension or revocation of the broker's license? Selling the licensee's own home as "For Sale by Owner" without disclosing their license status in advertisements. Not depositing rents in escrow received as a property manager for a lessor. Displaying a "For Sale" sign on a property without the owner's written consent. Advising their seller that some known material defects do not need to be included on the property disclosure statement.
Not depositing rents in escrow received as a property manager for a lessor.
A commercial office building sold for $1,000,000. The buyer paid $400,000 as a down payment and secured a $600,000 first mortgage loan. How much is the Pennsylvania state transfer? $10,000 $6,000 $3,000 $16,000
On a $1,000,000 sale, the state transfer tax is $10,000 ($1,000,000 x 1%). The Pennsylvania Realty Transfer Tax is 1% of the full sale price.
Sarah, a broker is found guilty of fraud and ordered to pay monetary damages to a buyer. What is the time frame within which the injured party may file a claim for payment from the Real Estate Recovery Fund? Three years after the alleged violation occurred. One year after termination of the proceedings in connection with the judgment awarded to the consumer. One year after the alleged violation occurred. Three years after the date on which a professional relationship of trust and accountability commenced between the broker and the consumer.
One year after termination of the proceedings in connection with the judgment awarded to the consumer.
Protected groups under the Pennsylvania Human Relations Act include: Race, religion, age, color, handicap, sex, and familial status. Race, color, religion, national origin, sexual orientation and marital and familial status.
Race, religion, age, color, handicap, sex, and familial status.
What are the procedures that Jones, a salesperson, must follow when he decides to terminate his affiliation with an employing broker and affiliate with a different broker? Return all transaction records and prospect leads to the employing broker Return his license with the properly completed change of employer form and payment of the required fee Give the broker an official letter of termination that the broker can send to the Pennsylvania Real Estate Commission None, the employing broker is responsible for notifying the Pennsylvania Real Estate Commission of the change
Return his license with the properly completed change of employer form and payment of the required fee
Immediately upon passing the salesperson licensing examination, which of the following activities may an individual legally engage in? Prepare and present a comparative market analysis to a prospective seller. Hold open houses for the public under the direct supervision of a broker. Negotiate a loan on real estate on behalf of a broker. Sale of business opportunities to the public.
Sale of business opportunities to the public.
The Pennsylvania Real Estate Commission may take disciplinary action against a licensee when the licensee violates all of the following except: Sherman Anti-Trust Act. rules and regulations adopted by the Pennsylvania Real Estate Commission. Real Estate Licensing and Registration Act. Pennsylvania Human Relations Act.
Sherman Anti-Trust Act.
Randolph, a broker personally owns a 10-unit residential, multifamily property. Randolph hires Kyle, an unlicensed individual for the purpose of managing and maintaining the property. Kyle may legally perform which of the following activities? Supervise and direct a branch office of the broker located at the property. Enter into leases on behalf of the owner. Negotiate terms or conditions of occupancy with current or prospective tenants. Show apartments to prospective tenants and provide information on rental amounts and leasing determination.
Show apartments to prospective tenants and provide information on rental amounts and leasing determination.
What are the consequences when a real estate salesperson is found guilty of violating any provision of the Pennsylvania Human Relations Act? The employing broker is liable for the conduct of the salesperson, so the employing broker will also be guilty of the violation. The Pennsylvania Human Relations Commission will notify the state real estate commission of findings of violations against licensees under the Pennsylvania Human Relations Act. The Pennsylvania Human Relations Commission can suspend or revoke the salesperson's license. The Pennsylvania Human Relations Commission must refer the case to HUD for prosecution under appropriate federal law.
The Pennsylvania Human Relations Commission will notify the state real estate commission of findings of violations against licensees under the Pennsylvania Human Relations Act.
Imran is an agent representing the seller and working with a buyer. While reviewing terms of an agreement of sale with the buyer, how should Imran respond to the buyer's concerns about certain provisions in the agreement? The agent should address the concerns raised by the buyer directly and advise them regarding the provisions that are of concern. The agent should recommend that the buyer contract with a buyer's agent. Since the agent represents the seller, the agent has no obligation to respond to the buyer's concerns. The agent should advise the buyer to seek expert advice from an attorney at law regarding his concerns.
The agent should advise the buyer to seek expert advice from an attorney at law regarding his concerns.
Under what circumstances may a broker deposit personal or business funds into their escrow account? The broker may deposit such funds if the broker maintains one account that serves as both the personal or business account and an escrow account simultaneously. Never, commingling personal or business funds with escrow funds is prohibited. The broker may deposit personal or business funds in an escrow account to cover service charges assessed to the account or to maintain a minimum balance as required by the bank.
The broker may deposit personal or business funds in an escrow account to cover service charges assessed to the account or to maintain a minimum balance as required by the bank.
A couple visited a time-share property and received a gift of a DVD player for signing a purchase agreement for a time-share interest the day of the visit. Four days later, they decide they do not want to go through with the transaction. Under what circumstances may they void the contract? Although the couple may cancel the purchase agreement, they must return the DVD player. The couple may cancel the purchase agreement until midnight of the fifth day following the purchase, and they may keep the DVD player. Because it is illegal to offer promotional prizes and gifts as an inducement, the purchase agreement is void. The couple is bound to the terms of the purchase agreement and does not have the right to cancel the purchase.
The couple may cancel the purchase agreement until midnight of the fifth day following the purchase, and they may keep the DVD player.
When the court orders a payment to be made from the recovery fund owing to the improper activities of a licensee, what happens to the licensee? The licensee is subject to a fine of up to $1,000 but maintains an active license. The license is automatically suspended as of the date of payment The Pennsylvania Real Estate Commission takes no further action against the licensee. The licensee's license is automatically revoked..
The license is automatically suspended as of the date of payment.
Which of the following statements is not true in regards to agreements of sale? The agreement must contain a statement that access to a public road may require issuance of a highway occupancy permit. The licensee must retain copies in their files for five years following consummation or termination of the transaction. The licensee must furnish a copy of the sales contract to all signatories at the time of execution. The agreement must contain a statement identifying the capacity in which the broker is engaged.
The licensee must retain copies in their files for five years following consummation or termination of the transaction.
Who is in charge of the perpetual care fund for cemeteries? The local government. The owner of the cemetery. The Federal government. The state government.
The owner of the cemetery.
The Consumer Notice, which advises consumers of the business relationships allowed by the Real Estate Licensing and Registration Act, must be presented: At any face-to-face meeting with a buyer or seller. To buyers only, at the first substantive contact. To any buyer or seller, prior to writing a sales contract. To any buyer or seller, at the first contact, where a substantive discussion about real estate occurs.
To any buyer or seller, at the first contact, where a substantive discussion about real estate occurs.
When discussing the possibility of listing a large parcel of vacant land with an owner, Jones, the broker determines that he would like to secure an option to purchase the property. How should Jones proceed? When discussing the possibility of listing a large parcel of vacant land with an owner, Jones, the broker determines that he would like to secure an option to purchase the property. How should Jones proceed? Arrange to have the owner enter into an option agreement with a straw party selected by Jones in order to avoid a conflict with the seller. Secure an exclusive-right-to-sell long-term listing but refuse to aggressively market the property until his option has expired. Include language in the listing contract granting the option to Jones for purchase of the listed property.
When discussing the possibility of listing a large parcel of vacant land with an owner, Jones, the broker determines that he would like to secure an option to purchase the property. How should Jones proceed?
Nelson earned a commission on a sale of a property; however, he has since placed his license in escrow. May Nelson still receive the commission on this sale? Yes, as long as Nelson plans to take his license out of escrow within one week of earning the commission. No, Nelson may not receive the commission. Yes, as long as Nelson was licensed at the time the commission was earned. Yes, as long as Nelson has held a license at any point in the last 10 years, escrow or not.
Yes, as long as Nelson was licensed at the time the commission was earned.
Under the terms of a sales contract, the seller is required to pay for and provide a termite certificate. The seller requests that Nelson, the salesperson order one. Nelson does so, knowing he will receive a referral fee directly from the pest control company. The referral fee is not discussed with the seller. Is this a violation of the license law? No, if the fee is less than $25. No, if the fee is split with the broker. Yes, because Nelson did not disclose the compensation to the consumer. Yes, because fees may be paid to Nelson only by the seller.
Yes, because Nelson did not disclose the compensation to the consumer.
Nelson, a broker is employed as a property manager. The building owner and Nelson agree that the building air conditioning system needs to be replaced, and Nelson is authorized to contract for the work to be done. Without the knowledge of the owner, Nelson and the contractor selected to do the work agree that as a condition of receiving the contract the contractor will install central air conditioning in the personal residence of Nelson at no charge to Nelson. Could this action result in disciplinary action against Nelson by the commission? Yes, because accepting any undisclosed compensation or profit for expenditures on behalf of an owner is a violation of the license law No, because Nelson has been authorized by the owner to contract to have the work done. Yes, because only the owner is authorized to contract for work to be done on the building he / she owns. No, because terms of the contract between Nelson and contractor are not an issue of concern to the Pennsylvania Real Estate Commission.
Yes, because accepting any undisclosed compensation or profit for expenditures on behalf of an owner is a violation of the license law
Prompton Realty has entered into agencyagreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur? Yes, as long as written agency agreements have been entered into with both parties. No, because the Prompton Realty would then be a dual agent. Yes, if both the buyer and seller give their informed consent in writing after receiving full disclosure regarding dual agency. Yes, if the seller has agreed to pay the commission.
Yes, if both the buyer and seller give their informed consent in writing after receiving full disclosure regarding dual agency.
May a licensee offer a rebate on his/her commission to a buyer or seller? Yes, provided that a full disclosure of such rebate is made to all parties of the transaction. Yes, provided that a full disclosure of such rebate is made to the buyer. Yes, provided that a full disclosure of such rebate is made to the seller. No.
Yes, provided that a full disclosure of such rebate is made to all parties of the transaction.
Failure to include which of the following in an agreement of sale would give a buyer the option to void the agreement without a requirement of court action? Specific date for possession and closing. Complete and accurate legal description of the property. Mortgage contingency if the buyer is securing financing. Zoning classification of the property if the agreement is for a commercial building.
Zoning classification of the property if the agreement is for a commercial building.
If an agreement of sale is conditioned on the ability of the buyer to obtain mortgage financing, all of the following must be included in the agreement except: type of mortgage. nature and extent of assistance that the broker will render to the buyer. a copy of the buyer's credit report. deadline for the buyer to obtain the mortgage loan.
a copy of the buyer's credit report.
A licensed salesperson may perform all of the following activities for or on behalf of his / her employing broker except: buy or offer to buy real estate. appraise single family property. lease commercial office space. negotiate a loan on real estate.
appraise single family property.
The term "broker" includes in its definition all of the following activities except: managing real estate. appraising real estate. representing oneself as a real estate consultant or counselor. performing a comparative market analysis.
appraising real estate.
Commissions earned by a broker in a real estate sales transaction: may be deducted from the earnest money deposit and claimed by the broker as soon as the buyer and seller execute the purchase and sales agreement. are based on a schedule of commission rates set by the multiple listing service. may be shared with an unlicensed person who is employed by the broker, provided that such person aided the broker in bringing the buyer and seller together. are determined by agreement of the broker and the consumer.
are determined by agreement of the broker and the consumer.
The Pennsylvania Real Estate Commission may assess an additional fee against licensees in order to increase the balance in the Real Estate Recovery Fund if: the Department of State determines that available funds appear insufficient to satisfy outstanding claims. at the beginning of a biennial renewal period the balance in the fund is less that $300,000. during any one year, the amount paid from the fund exceeds $500,000.
at the beginning of a biennial renewal period the balance in the fund is less that $300,000.
In order to become a member of the Pennsylvania Real Estate Commission, a candidate must:
be appointed by the governor.
Douglas, an unlicensed salesperson, negotiated the sale of real estate in return for the promise of compensation. After the transaction closes, Douglas encounters difficulty collecting the agreed upon fee. In this situation, Douglas: can file a claim for compensation from the Real Estate Recovery Fund. may record a lien against the property for the amount owed. can file a civil lawsuit against the seller in the court of common pleas in the county where the property is located. can do nothing to recover the agreed upon compensation.
can do nothing to recover the agreed upon compensation.
All of the following must complete education or training requirements prior to licensure except: cemetery salespersons. rental listing referral agents. time-share salespersons. campground membership salespersons.
cemetery salespersons.
When property is sold in a foreclosure proceeding, and the sale does not bring sufficient funds to cover the senior mortgages, the original mortgagor may be subject to a: deficiency judgment. foreclosure judgment. default. lien.
deficiency judgment.
The period during which site improvements contribute to the value of the property is called: asset investment life. accrued depreciation period. economic life.
economic life.
The maximum amount that landlords can require a residential tenant to pay as a security deposit in the first year of the lease is an amount: agreed to by the landlord and tenant. one half of one month's rent. equivalent to two months' rent.
equivalent to two months' rent.
In Pennsylvania, brokers and salespeople may: bind the principal they represent to contracts. fill in blanks on preprinted contract forms customarily used in their community. write additional language for the purpose of modifying a sales contract between a buyer or seller after advising them of the legal consequences of the new language. give advice concerning the legal significance of specific preprinted contract clauses to a buyer or seller.
fill in blanks on preprinted contract forms customarily used in their community.
Upon obtaining an exclusive listing, a broker or licensed salesperson is obligated to: cooperate with every real estate office wishing to participate in the marketing of the listed property. set up a listing file and issue it a number in compliance with Pennsylvania Real Estate Commission Rules and Regulations. give the person or persons signing the listing a legible, signed, true, and correct copy. place advertisements in the local newspapers.
give the person or persons signing the listing a legible, signed, true, and correct copy.
All of the following are mandatory provisions of a sales contract except: identifying the capacity in which the broker is engaged in the transaction. identifying the rate or amount of commission to be paid to the broker. describing the purpose of the Real Estate Recovery Fund.
identifying the rate or amount of commission to be paid to the broker.
In regards to interest paid on an escrow account maintained by the broker, interest earned on an escrow account: belongs to the broker as compensation for managing and maintaining the account on behalf of buyers and sellers. does not begin to accrue on the deposit until it has been held in the broker's escrow account for at least six months. may not be earned on escrow accounts because of the difficulty in allocating the interest to the appropriate parties is disbursed in the same manner as the principal amount unless the parties to the transactions agree otherwise.
is disbursed in the same manner as the principal amount unless the parties to the transactions agree otherwise.
Oscar, a licensed salesperson negotiates an offer to purchase on a property listed for sale with a different company. The buyer gives Oscar an earnest money deposit check. Oscar: must deposit the check in an escrow account maintained in Oscar's own name at a bank or recognized depository. is required to deliver the earnest money deposit to the listing broker for deposit. retains the check in his file until the offer is accepted by the seller. is required to pay over the deposit to Oscar's employing broker promptly upon receipt.
is required to pay over the deposit to Oscar's employing broker promptly upon receipt.
Every licensed broker is required to: keep transaction records for three years. become a member of the local Association of REALTORS®. employ at least one salesperson. maintain escrow account records for five years.
keep transaction records for three years.
The Pennsylvania Real Estate Commission has the authority to: make and enforce the rules by which all real estate licensees must abide. compose the examination questions on the state exam. administer the exams given at the testing sites. enact the laws which govern real estate licensees.
make and enforce the rules by which all real estate licensees must abide.
Jones is an associate broker who is moving to a new employing broker. While the change of employment forms are being processed by the commission, Jones may: represent both employing brokers until the new license is received. continue to list properties for sale in the name of the former employing broker. act as a transaction licensee without representing either broker until the new license is processed. manage a branch office on behalf of the new employing broker.
manage a branch office on behalf of the new employing broker.
While representing a seller under a listing contract, Jones, the broker learned confidential information about the seller's urgency to sell and minimum acceptable selling price. The listing expired, and the property was listed with a different broker. Jones now represents a buyer client who is interested in making an offer on the property. At this time, Jones: must refer the buyer prospect to the new listing broker to write the offer to purchase. as buyer's agent must disclose to the buyer any information the broker knows about the seller's motivation and minimum acceptable price. must renounce his agency relationship with the buyer and act as the subagent of the seller. may not reveal confidential information of the seller or use it to the advantage of the buyer client.
may not reveal confidential information of the seller or use it to the advantage of the buyer client.
All of the following statements regarding the Pennsylvania Real Estate Commission are true except: the commission must submit annual reports to legislative committees in the state senate and house of representatives. the commission makes and enforces the rules by which real estate licensees must abide. members of the commission are selected by the state Association of REALTORS®.
members of the commission are selected by the state Association of REALTORS®.
Under the Pennsylvania mechanic's lien law, the claim: can only be filed by the general contractor hired by the property owner. can be filed only with permission from the property owner. must be filed by the contractor or subcontractor within six months after the work is completed. becomes a general, involuntary lien against the property.
must be filed by the contractor or subcontractor within six months after the work is completed.
When a licensee provides a statement of estimated cost and return to parties involved in a transaction, the statements: must be provided on standard forms developed by the Pennsylvania Real Estate Commission. may be provided orally to the parties. are not required if a lender agrees to provide the statement at the loan application .must be provided in writing before an agreement of sale is executed between the parties.
must be provided in writing before an agreement of sale is executed between the parties.
If Jones, a licensed salesperson owns a multifamily residential property for investment purposes, Jones: must hire the employing broker as the property manager and conduct all leasing activity through the broker. must disclose his license status to prospective tenants before the tenant enters into a lease agreement. must deposit collected rents into an escrow account. may pay a referral fee to another salesperson employed by the same broker if the referred prospect leases a unit in the building.
must disclose his license status to prospective tenants before the tenant enters into a lease agreement.
A broker lists a commercial property for sale. The listing: is required to be an exclusive-right-to-sell contract. is exempt from requirements governing disclosures regarding the Real Estate Recovery Fund. must include a cancellation notice to terminate the contract after the original term. 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.
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.
Bauer, a salesperson's licensed assistant worked late nights and weekends to help ensure the successful completion of a difficult transaction. Bauer's extra work included making several phone calls to the prospective buyers, encouraging them to accept the seller's counteroffer. Largely because of Bauer's efforts, the sale went through with no problem. The salesperson wants to pay Bauer a percentage of the commission, "because Bauer has really earned it." Under Pennsylvania law, the salesperson may: directly pay a commission to the assistant only if the assistant is an independent contractor. not directly pay a commission to the assistant under the facts presented here because it would be a violation of the license law. directly compensate the assistant in the form of a commission under the circumstances described here. not pay the assistant a cash commission but is permitted to make a gift of tangible personal property.
not directly pay a commission to the assistant under the facts presented here because it would be a violation of the license law.
A consumer contacts Bauer, a licensee to discuss the possibility of Bauer handling the sale of a property owned by the consumer. Bauers' responsibility is to: advise the consumer that after listing the property for sale, any cooperating broker who shows the property will be acting as a buyers agent. provide the consumer with a written guarantee concerning the amount and type of advertising the broker will provide. provide a Consumer Notice to the prospect before engaging in any substantive discussion about real estate needs with the consumer. advise the seller that all listing contracts must be in writing on forms approved by the commission.
provide a Consumer Notice to the prospect before engaging in any substantive discussion about real estate needs with the consumer.
A licensed salesperson may prepare a comparative market analysis when the: property owner requests the analysis for purposes of appealing a property tax assessment. mortgage lender contracts with the salesperson to perform the analysis for a mortgage loan application. salesperson is attempting to secure a listing agreement from an unrepresented seller. salesperson has completed a required course on the Uniform Standards of Professional Appraisal Practice.
salesperson is attempting to secure a listing agreement from an unrepresented seller.
Jones, a salesperson remains inactive without renewing his license for over five years. Before the license will be reissued, Jones must: complete 60 hours of coursework and pass the salesperson's license exam. successfully complete the employing broker's training program. submit to and pass the salesperson's license examination. complete 20 hours of mandatory continuing education with no exam requirement.
submit to and pass the salesperson's license examination.
Certain topics must be included in exclusive listingagreements or the licensee may face disciplinary action. All of the following must be included in the listing agreement except: the specific termination date. the asking price. the specified commission rate or amount. the broker protection clause.
the broker protection clause.
If a broker receives money belonging to another under an installment land purchase agreement, the transaction is considered consummated when: the parties sign the installment land purchase agreement. the buyer has been afforded the opportunity to record the agreement, unless the agreement specifies otherwise. all terms of the installment agreement have been satisfied.
the buyer has been afforded the opportunity to record the agreement, unless the agreement specifies otherwise.
With respect to real estate purchases, Regulation Z requires lending institutions to inform borrowers of the: appraised value of the property. total amount of closing costs. exact amount of monthly payments. true cost of obtaining credit.
true cost of obtaining credit.
All of the following will provide protection against the possibility of mechanic's liens being filed against property by subcontractors except: stipulation against liens filed at the prothonotary's office. waiver of liens in a construction contract. release of liens document. mechanic's lien insurance.
waiver of liens in a construction contract.
How long can a licensee keep a license in escrow? 10 years. 6 years. 5 years 2 years.
year 5
