PA

In the case of the sale of an existing single-family home, property condition disclosures must be delivered to the buyer...

prior to the buyer's making a written offer. - Pennsylvania law requires the seller to provide the buyer with the property condition disclosure statement prior to the buyer's entering into an agreement of sale with the seller.

What are the procedures that salespersons must follow when they decide to terminate the affiliation with an employing broker and affiliate with a different broker?

return their license with the properly completed change of employer form and payment of the required fee. - License law stipulates that when a licensed salesperson desires to change employing brokers, the salesperson must notify the commission in writing, pay the required fee, and return his or her current license.

If the real estate commission receives a copy of a complaint filed with the Pennsylvania Human Relations Commission alleging that a licensee has violated a provision of the Pennsylvania Human Relations Act, what is the waiting period before the real estate commission may proceed with its own disciplinary action against the licensee?

90 days if it is an initial complaint against the licensee. - In the event the Pennsylvania Human Relations Commission does not act on a discrimination complaint within 90 days after it is filed with the Pennsylvania 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.

Several weeks after a closing, an associate broker received a thank-you letter and a nice bonus check from the seller of the house. The associate broker cashed the check because he felt it was earned. In this situation, which of the following is TRUE?

accepting the money is a violation of the License and Regulation Act. - License law prohibits salespersons or associate brokers from accepting a commission or any valuable consideration for the performance of any act specified in the law from any person except the licensed real estate broker with whom they are affiliated.

A buyer is interested in seeing a house listed with XYZ Realty but does not wish to enter into an agency relationship. A salesperson from LMN 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 LMN 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 the offer of subagency.

All of the following must appear in a written exclusive listing agreement EXCEPT...

a complete legal description of the property being sold. - A listing contract is not required to specify the complete legal description of the property being sold. - Mandatory provisions of exclusive listing contracts are established by Pennsylvania Real Estate Commission Regulation. - Exclusive listing contracts are required to contain the sales price, the commission expected, and the duration of the agreement.

All of the following provisions are included in the Pennsylvania Real Estate Commission's rules regarding exclusive listing agreements EXCEPT...

a listing agreement must be accompanied by a qualified expert's report of the property's condition. - A qualified expert's report covering property condition is not required when a seller lists property for sale with a broker. - In most transactions, state law requires the seller to complete a property condition disclosure form prior to entering into an agreement of sale. - The listing must state the broker's fees, be in writing, and be signed by the seller, who must receive a copy of the listing after signing it.

A foreign corporation that owns a building in Pennsylvania decides to sell without listing it for sale. Who may legally handle the transaction on behalf of the corporation?

an attorney-at-law who renders services to the corporation within the scope of an attorney-client relationship may handle the transaction for the corporation. - An attorney-at-law who receives a fee for rendering services within the scope of an attorney-client relationship is exempt from licensure and so may handle the transaction. - As an owner, the corporation may designate no more than five of the corporation's officers to act on behalf of the corporation as the owner.

In reference to license laws and rules and regulations of the commission, what does the term broker of record refer to?

an individual broker responsible for the real estate transactions of a partnership, association, or corporation who holds a broker's license. - The broker of record is the individual broker responsible for the real estate transactions of a licensed partnership, association, or corporation.

Following the death of a broker with a sole proprietorship, the deceased broker's estate should...

appoint another broker to supervise the termination of the deceased broker's business. - Within 15 days after the death of a broker with a sole proprietorship, the deceased broker's estate will notify the Commission that the estate has appointed another licensed broker to supervise the termination of the deceased broker's business. - The deceased broker's business does not have to close (provided another broker has been assigned) and can continue to service pending agreements. - During the termination period, the appointed broker may not take new listing agreements or hire new licensees.

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. - Rules of the commission require that the estimates of costs required to be provided to the parties be as accurate as may reasonably be expected of a person having knowledge of and experience in real estate.

In order to qualify for examination as a broker, the candidate must...

be a high school graduate or have passed a high school general equivalency examination. - An individual who wants to take the broker's examination must be a high school graduate or have passed a high school general equivalency exam. - There is no residency requirement. - The applicant must have been engaged as a licensed real estate salesperson for at least three years or possess educational or experience qualifications that the commission deems to be the equivalent. - Recommendations are required for licensure as a broker rather than as a condition of taking the examination.

When must a licensee provide statements of estimated costs to parties involved in the purchase of real estate?

before an agreement of sale is executed. - A real estate licensee is required to provide each party with a written estimate of reasonably foreseeable expenses associated with the sale before an agreement of sale is executed.

A broker is convicted of felony possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. After 30 days, the broker 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?

both the conviction and the broker's failure to properly notify the commission within 30 days of the conviction are grounds for suspension or revocation of the broker's license. - A licensee is required to notify the commission of being convicted, pleading guilty, or nolo contendere to a felony or misdemeanor within 30 days of the verdict or fee. - Being convicted in a court of competent jurisdiction in Pennsylvania or any other state could result in suspension or revocation of the broker's license.

When advertising property for sale, what must the broker include in the advertisement?

broker's business name designated on the license. - A broker is required to advertise under the business name designated on the license. - The listing price or name of the listing salesperson is not required in advertising. - A disclosure notice must be provided at the initial interview with a consumer.

Under what circumstances may brokers deposit personal or business funds into their escrow account?

brokers 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. - Commission rules prohibit a broker from commingling money required to be held in escrow with business, personal, or other funds. - However, a broker is permitted to deposit business or personal funds to cover service charges or maintain minimum balance requirements of the institution.

Which candidate for licensure is required to take the standard real estate salesperson's license examination and score a passing grade but is NOT required to complete any mandatory education requirement prior to taking the exam?

builder-owner salesperson applicant. - A builder-owner salesperson applicant must take and pass the salesperson's examination but has no mandatory education requirement. - Campground membership and cemetery salesperson applicants have no examination requirement. - Rental listing referral applicants have both an education and an examination requirement.

Which applicant for licensure is NOT required to pass a written exam for licensure?

cemetery salesperson. - There is no examination or coursework required for a cemetery salesperson. - Builder-owner salespeople, rental listing referral agents, and cemetery brokers are all required to pass a written exam prior to licensure.

To renew a license in Pennsylvania, a salesperson or broker must...

complete 14 hours of continuing education and pay the appropriate renewal fee. - Commission rules require a broker or salesperson to complete 14 hours of commission-approved continuing education as a condition precedent to renewal of a current license. - Renewal fees established by the commission must also be paid. - There is no requirement to be actively participating in the real estate business, nor must the licensee be a Pennsylvania resident.

Which of the following is a mandatory provision in an agreement of sale negotiated by a broker between a buyer and seller?

dates for payment and conveyance. - Date for payments and conveyance must be addressed in the contract. - Earnest money deposits are not required as part of an agreement of sale. - The broker's commission is not an issue in an agreement of sale between a buyer and seller. - Zoning classification must be provided in the case of properties other than those zoned for residential use.

In Pennsylvania, which of the following is legal and will NOT result in a broker's facing suspension or revocation of the broker's license?

depositing earnest money received into the firm's escrow account. - The broker is required to deposit earnest money into an escrow account. - Erecting a For Sale sign without written consent is a violation, and the issue of honesty and competency is addressed in the law.

When discussing the possibility of listing a large parcel of vacant land with an owner, the broker determines that he would like to secure an option to purchase the property. How should the broker proceed?

disclose his interest and license status to the owner and discuss terms of the option agreement prior to and distinct from the listing agreement. - The broker must disclose his license status prior to entering into an agreement with an owner. - A broker may not incorporate an option to purchase property in a listing agreement for the property, and the broker may not conduct business through a straw party.

During a showing to a prospective buyer, the listing agent noticed a small, damp water stain on the ceiling that was still dripping after last night's rainstorm. The stain was not there the day the listing agreement was obtained. The property disclosure form makes no mention of any defects that would cause the stain. If a licensee notices material defects not disclosed in the property disclosure statement, which of the following actions must the licensee take?

disclose to the buyer, in writing, all material defects that are not disclosed in the property disclosure statement and which the licensee has actual knowledge of. - Verbal disclosure alone does not satisfy the disclosure requirement of known material defects discovered by a licensee. - Notifying the buyer that there is no need for concern would constitute a licensing violation for failure to disclose known material defects. - Licensees are not required to conduct an independent investigation to confirm that the seller's disclosures on the property disclosure statement are accurate.

All of the following are purposes and goals of mandatory continuing education programs required for license renewal EXCEPT...

ensuring a revenue stream to the real estate commission that enables it to conduct educational and regulatory activities. - The purpose and goals of continuing education are to provide education through which licensees can maintain and increase competency; keep abreast of changes in laws, regulations, practices, and procedures; and ensure that the public is protected. - Generation of revenue to the commission is not a goal of mandatory continuing education.

An unlicensed individual who engages in activities for which a real estate license is required is subject to which penalty upon conviction for a first offense?

fine not to exceed $500. - Upon conviction for a first offense for practicing real estate without a license, the maximum penalty is a fine not exceeding $500, imprisonment not exceeding three months, or both.

A candidate for a broker's license in Pennsylvania must...

have passed the broker's license exam within three years prior to license application. - The application must be received by the commission within three years of the date of passing the license exam. - Neither citizenship nor a college degree is required of broker candidates. - Qualifying experience is not limited to the field of real estate sales; a candidate could qualify for licensure with other experience.

A licensed salesperson receives an earnest money deposit check from a buyer at the time the buyer makes an offer to purchase property listed by another broker. The seller is unavailable, so the offer will not be presented for four days. What procedure should be followed regarding the earnest money deposit check?

if written permission of both buyer and seller has been obtained, the broker may refrain from depositing the check pending the seller's acceptance of the offer. - Rules of the commission provide that the broker is responsible for depositing money into an escrow account by the end of the next business day following its receipt in the office where the escrow records are maintained. - However, if the money is in the form of a check under an offer to purchase, the broker may, with the written consent of both buyer and seller, refrain from depositing the check pending the sellers' acceptance of the offer.

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. - If, at the beginning of any biennial renewal period, the balance in the fund is less than $300,000, the commission may assess an additional fee against each licensee, up to a maximum of $10, in order to bring the balance in the fund up to $500,000.

Per Pennsylvania's licensing law, a licensee who forms a qualified association for offering real estate services is...

in violation of the law. A qualified association may not hold itself out to the public as providing real estate services. - There is no such license as a qualified association license. Per licensing laws, a licensee must report to the Commission within 30 days of forming or joining a qualified association.

Some people and situations are exempt from the provisions of the Pennsylvania Real Estate License Act. What people are NOT exempt and must hold a real estate license?

individuals who receive compensation from sellers or landlords for procuring prospective buyers or renters of real estate. - Individuals who undertakes to promote the sale, exchange, purchase, or rental of real estate or who represents themself to be a real estate consultant, counselor, agent, or finder are required to hold a broker's license. - A for sale by owner or for rent by owner is exempt, as are a resident manager and a licensed auctioneer at a bona fide auction.

Who has authority to withdraw funds from the broker's escrow account for payments that are properly chargeable to the account?

licensed employee who have been given written authority by the employing broker. - The employing broker may give a licensed employee written authority to withdraw funds from the escrow account and may give an unlicensed employee written authority to deposit money into an escrow account.

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. - The associate broker may manage a branch office on behalf of the broker. - When an associate broker changes employment from one broker to another, the associate may, in the interim when the new license is being processed, maintain a copy of the notification sent to the commission as a temporary license pending receipt of the new license.

In Pennsylvania, representation agreements that obligate the buyer to pay a fee...

must be in writing. - The Real Estate Licensing and Registration Act establishes that any agreement between a broker and a principal, whereby the consumer is obligated to pay a fee, must be in writing and signed by the consumer. - This includes brokerage agreements: seller listing and buyer representation.

How many times per year may the Commission conduct a routine inspection of the main or branch office of a broker?

no more than four times a year. - The Commission, or its authorized representatives, may conduct a routine inspection of the main or branch office of a broker no more than four times a year—during regular business hours—in order to determine whether an office is being operated in compliance with the Pennsylvania Code.

If a seller provides inaccurate or incomplete information on a property condition disclosure statement, is the licensee liable for the action of the seller?

no, because the licensee has no duty to conduct an independent inspection or verify the accuracy of statements reasonably believed to be accurate and reliable. - Unless otherwise agreed, a licensee owes no duty to conduct an independent inspection of the property and owes no duty to independently verify the accuracy or completeness of any representation made by a consumer to a transaction reasonably believed by the licensee to be accurate and reliable.

What type of listing agreement would require the broker to provide the seller with a written memorandum stating the terms of the agreement?

oral open listing. - A licensee who enters into an oral open listing agreement must give the seller a written memorandum stating the terms of the agreement.

Under Pennsylvania licensing law, a partnership, association, or corporation will be granted a broker's license only if...

one officer or partner is designated as the broker of record. - Corporations, partnerships, and associations can be issued a broker's license if the individual designated as the broker of record meets the individual requirements to be issued a broker's license. - The real estate commission processes license applications. - Employees engaging in the real estate business may hold a salesperson's, rather than broker's, license. Each individual is required to pay a fee to the recovery fund.

A broker is found guilty of fraud or misrepresentation and ordered to pay monetary damages to a consumer. What is the time frame within which the injured party may file a claim for payment from the real estate recovery fund?

one year after termination of the proceedings in connection with the judgment awarded to the consumer. - A claim for payment from the recovery fund must be made no more than one year after the termination of the proceedings, including reviews and appeals in connection with the judgment.

Real estate licensing is required in order to engage in the...

sale of time-share interest. - A time-share salesperson's license is required to sell time-shares. - Employees of a public utility, trustees in bankruptcy, and licensed auctioneers are all exempt from licensing requirements. NOT NEEDED: - to negotiate leases of employees of a public entity - sale of real estate by bonafide auction - sale of property by an individual acting as trustee in a bankruptcy proceeding

An individual directly employed by the owner of residential multifamily buildings is exempt from licensing requirements when...

showing apartments to prospective tenants and explaining building rules and regulations. - Unlicensed individuals directly employed by an owner of residential multifamily buildings for the purpose of managing or maintaining the property are not required to be licensed, but the scope of activities they may perform is limited. - They may show apartments, provide information on rental amounts, and explain building rules and regulations. - Unlicensed individuals may not prepare and enter into leases, negotiate terms or conditions, or hold money belonging to tenants.

When a salesperson applies for a real estate license, the employing broker is responsible for...

submission of a sworn statement certify that she will actively train and supervise the applicant. - Rules of the commission require that the salesperson's license application include a sworn statement from the employing broker certifying that the broker will actively train and supervise the applicant. - Education providers issue transcripts, not employing brokers. Citizenship is not a requirement for licensure. - Fees paid to the recovery fund are the responsibility of the applicant rather than of the employing broker.

A salesperson remains inactive without renewing her license for over five years. Before the license will be reissued, the applicant must...

submit to and pass the salesperson's license examination. - Any persons who remain inactive for a period of five years without renewing their license must, prior to having a license reissued, take and pass the examination pertinent to the license for which the person is reapplying. - There is no education or training requirement as a condition to reactivating a license on inactive status for more than five years.

A landlord has a "no pets" policy in her apartment building. A trainer or handler of guide dogs for persons with disabilities wants to rent an apartment from the landlord and requests that guide dogs be permitted in the apartment. Does the landlord have to let the dog in?

the Pennsylvania Human Relations Act specifically prohibits the landlord from refusing to rent to the handler or trainer of guide or support animals on the basis of the owner's "no pets" policy. - The Pennsylvania Human Relations Act specifically prohibits discrimination against handlers or trainers of guide or support animals as well as persons with disabilities who use guide or support animals. - Any violation of the Pennsylvania Human Relations Act also constitutes a violation of the license law.

What are the consequences when a real estate salesperson is found guilty of violating any provision of the Pennsylvania Human Relations Act?

the Pennsylvania Human Relations Commission will notify the state real estate commission of findings of violations against licensees under the Pennsylvania Human Relations Act. - Actions of the human relations commission finding licensees guilty require notification to the state real estate commission. - The Pennsylvania Human Relations Commission does not have the power to suspend or revoke licenses. - Although the salesperson may be guilty, the employing broker is not always liable.

The Pennsylvania 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 Pennsylvania 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.

Which of the following is a requirement of the commission regarding an escrow account maintained by a licensed Pennsylvania real estate broker?

the account must provide for withdrawal of funds without prior notice. - Rental payments may not be deposited in the broker's escrow account. - The escrow account must be maintained in a federally or state-insured bank or recognized depository, must designate the broker as trustee, and must provide for withdrawal of funds without prior notice.

According to License Law, who is responsible in any office for the activities of the licensees?

the broker licensee must supervise the activities of all licensed salespersons and associate brokers. - It is a Prohibited Act for brokers to not supervise all of their licensees.

If a broker receives money belonging to another under an installment land purchase agreement, the transaction is considered consummated when...

the buyer has been afforded the opportunity to record the agreement, unless the agreement specifies otherwise. - Commission rules provide that if the broker receives money belonging to another under an installment land purchase agreement, the transaction will be considered consummated when the buyer has been afforded the opportunity to record the agreement, unless the contract provides otherwise.

A couple visited a time-share property and received a gift of a portable color television for signing a purchase agreement for a time-share interest that day. Four days later, the couple decided not to go through with the transaction. Under what circumstances may they void the contract?

the couple may cancel the purchase agreement until midnight of the fifth day following the purchase, and they may keep the portable color television. - A purchaser has the right to cancel a time-share purchase until midnight of the fifth day following the date on which the purchaser executed the purchase contract. - Any promotional prizes or gifts issued to the purchaser remain the property of the purchaser.

Which of the following statement is TRUE regarding the laws that regulate advertisements by an employing broker and associate broker, salesperson, cemetery associate broker, or cemetery salesperson?

the name of the employing broker and associate broker, salesperson, cemetery associate broker, or cemetery salesperson must be of equal size in all advertisements. - Advertisement laws and requirements apply to all employing brokers and associate brokers, salespersons, cemetery associate brokers, or cemetery salespersons. - There are no special advertising provisions for any of these licensees.

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. - An agreement between a rental listing referral agent and a prospective tenant must contain the rental specifications desired by the 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.

A licensed real estate salesperson owns a three-unit apartment building for investment purposes. Under what conditions may the salesperson sell the property?

the salesperson may be for sale by owner, but the salesperson must disclose his license status in advertisements for the property. - Licensees who sell or lease their own real estate must disclose this licensure in advertisements for the property. - This requirement does not apply if the property is listed for sale with a real estate company.

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 violation of the license law. - Licensees are subject to disciplinary action by the commission, including possible suspension or license revocation.

An individual who holds a salesperson's license issued by another jurisdiction wants to obtain a Pennsylvania salesperson's license. Which requirement must be met?

the salesperson's license issued by another jurisdiction must have been active within five years prior to the submission of a properly completed application. - An individual holding a salesperson's license issued by another jurisdiction must prove that this license has been active within five years prior to submission of the application. - The applicant is required to pass only the Pennsylvania portion of the license exam. - It is possible to hold active licenses in more than one state simultaneously, and residency is not a requirement for licensure.

In Pennsylvania, when a broker is listing a home and asks the seller to complete a property condition disclosure, which of the following statements is TRUE?

the seller should be advised that disclosure of known property conditions is required by Pennsylvania statute called the Real Estate Seller Disclosure Act. - The property condition disclosure requirements pertain to most residential transactions and cover a broad range of issues affecting the property. - The licensee should advise the seller of the disclosure requirements and the seller's obligation to comply with requirements of the statute.

May a licensed real estate salesperson collect a referral fee for construction, repair, or inspection services utilized by a consumer as a result of the licensee's referral?

yes, if the licensee provides the consumer with a written disclosure of the referral fee or commission at the time the licensee first advises the consumer that the service is available or when the licensee first learns the consumer will be using the service. - A licensee who provides insurance, construction, repair, or inspection services that are utilized by the consumer must provide the consumer a written disclosure of the financial interest (including a referral fee or commission) that the licensee has in the service. - The disclosure must be made when the licensee first advises the consumer that the service is available or when the licensee first learns that the consumer will be utilizing the service. - In certain circumstances, a licensee may accept fees paid directly to the licensee.