PA State Laws
In Pennsylvania, what must be included conspicuously on the first page of every CMA?
the fact that it is not an Appraisal
Who selects the members of the Pennsylvania State Real Estate Commission?
the governor
According to Pennsylvania law, which statement is true regarding licensees and inspections?
Licensees aren't required to conduct an independent inspection of the property.
What is the highest amount you can be fined by the Pennsylvania Real Estate Commission for a serious violation?
$1,000
A Pennsylvania licensee was found guilty of defrauding several of his real estate clients. A court issued final judgments ranging from $1,000 to $30,000 dollars for each victim, for a total of $150,000. If the victims seek recovery from the Real Estate Recovery Fund, what's the most that will be paid out?
$100,000
Jack was the victim of a Pennsylvania licensee's misrepresentation. He submitted an application seeking recovery from the Real Estate Recovery Fund six months after a court awarded him a final judgment of $120,000. What's the maximum Jack can recover
$20,000
Estelle acted as a Pennsylvania transaction licensee for a transaction. The relationship was established via written disclosure statement. How long must the broker retain a copy of this statement?
6 months
Pennsylvania law states a seller must return the buyer's deposit within ______ days of canceling a timeshare purchase.
10
Three days after signing a purchase contract, Emma has decided to cancel her purchase of a timeshare in Pennsylvania. How many days does the seller have to refund her deposit?
10
Emma just signed a contract to purchase a timeshare in Pennsylvania. If she wants to cancel, within how many days must she act?
5
If a Pennsylvania licensee turns in a current license when moving to a new employer, what enables the licensee to continue practicing real estate until the new license arrives? A)A copy of the notification that was sent to the commission serves as the licensee's temporary license. B)The licensee should hang on to the existing license until the new one is issued. C)The licensee should make a copy of the existing license to display before submitting it to the commission. D)The licensee should print a temporary license from the commission's website.
A-A copy of the notification that was sent to the commission serves as the licensee's temporary license.
Natalie works for Darrell who owns Titanium Realty. Darrell supervises Natalie who meets the Pennsylvania broker license requirements. Which of the following types of licensees is Natalie? A)Associate broker B)Broker C)Broker of record D)Salesperson
A-Associate broker An associate broker is an individual who has met the broker license requirements but is employed by a broker of record.
Jack is a Pennsylvania licensee. He represents Carter in a transaction. Rachel is the other party to the transaction. Which of the following statements is true? A)Jack can keep both parties informed about the transaction. B)Jack can keep neither Carter nor Rachel informed about the transaction. C)Jack can only keep Carter informed about the transaction, not Rachel. D)Jack can only keep Rachel informed about the transaction, not Carter.
A-jack can keep both parties informed
Which of the following individuals would be in violation of Pennsylvania license law if performing the activity for a fee?
An unlicensed employee of the owner of a multi-family residential property who is collecting rent from tenants
Ezra is applying for a standard salesperson's license in Pennsylvania. He actively holds a similar license in another state. What can we reasonably assume to be true? A)He has at least three years' experience in real estate. B)He passed only the state portion of the PA licensing exam. C)He's completed at least 30 hours of pre-licensing education. D)He's submitted certification from the other state that his license is active and in good standing.
B-He passed only the state portion of the PA licensing exam.
Gary works as a full-time employee for Charles who developed and owns Falcon Heights Condominiums, a multi-family dwelling in Pennsylvania. As part of his duties, Gary lists, sells and offers units for sale within the complex. Which of the following best describes Gary? A)Associate broker B)Builder-owner salesperson C)Salesperson D)Timeshare salesperson
B-builder owner salesperson A builder-owner salesperson is an individual who is a full-time employee of a builder-owner of single-family and multi-family dwellings and performs real estate activities such as selling and leasing.
Patty is a bit of a matchmaker. She doesn't sell dream properties to individuals. Instead she sells lists of available properties in Pennsylvania to prospective tenants in hopes they can find a match made in heaven. Which of the following best describes Patty? A)Campground membership salesperson B)Rental listing referral agent C)Salesperson D)Time-share salesperson
B-rental listing referral agent A rental listing referral agent is an individual or entity who owns or manages a business that collects rental information for the purpose of referring prospective tenants to rental units and sells lists of available properties.
Barb, a Pennsylvania salesperson, provided Karl, a prospective buyer, with the Consumer Notice reviewing the different agency relationships available. Who signs the Consumer Notice to acknowledge that disclosure has been provided by the licensee and received by the consumer?
Barb and Karl.Both the consumer and the licensee must sign the Consumer Notice. The consumer signs to acknowledge receipt of the notice and the licensee signs to acknowledge the notice was provided. The signed notice is retained for six months.
Becca won a two-day Bahamas cruise, the only stipulation being that she attend a timeshare presentation beforehand. She decided to purchase a timeshare in Pennsylvania, but the next day had a change of heart and decided to cancel. Which of the following is true?
Becca can go on the cruise and isn't required to pay back the cruise cost. If the purchaser of a timeshare decides to cancel the contract, the buyer can keep any prize or promotional items received.
Natalie works for Darrell who owns Titanium Realty. Darrell supervises Natalie who meets the Pennsylvania broker license requirements. Which of the following best describes Darrell?
Broker of record An individual who is responsible for the actions of affiliated licensees as well as firm employees is a broker of record.
Pennsylvania brokers who intend to conduct business at more than one location should apply for ______. A)A corporate license B)A franchise license C)A license for each separate location D)Special dispensation from the commission
C- a license for each separate location
Under Pennsylvania law, which of these items would a licensee need to disclose to any consumers? A)A buyer is willing to offer more than list price. B)A seller is willing to accept lower than list price. C)The licensee has a personal or financial conflict of interest. D)The property has material defects.
C- the licensee has a personal or financial conflict of interest
Darryl is a broker in Pennsylvania acting as a buyer's agent. A buyer made an offer on a property and handed Darryl an earnest money check. The offer hasn't yet been accepted by the seller. What is Darryl's responsibility related to this money? A)Darryl has no responsibility to hold the check until an offer is accepted. B)Darryl should deposit the check by the end of the next business day. C)Darryl should hold the check until the offer is accepted, then deposit the check by the end of the next business day. If rejected, Darryl must promptly return the check to the buyer. D)Darryl should return the check to the buyer until an offer is accepted.
C-Darryl should hold the check until the offer is accepted, then deposit the check by the end of the next business day. If rejected, Darryl must promptly return the check to the buyer.
To legally perform real estate activities in Pennsylvania, you must have a real estate license, pass the written exam, keep your license current by completing continuing education courses, and ______. A)Be an employee of a Pennsylvania-based brokerage firm B)Become a member of the Pennsylvania Association of Realtors® (PAR) C)Follow the standards of conduct D)Join the National Association of Realtors® (NAR)
C-Follow the standards of conduct.To legally perform real estate activities in Pennsylvania, you must have a real estate license, pass the written exam, keep your license current by completing continuing education courses, and follow the standards of conduct.
Which of the following individuals is acting appropriately according to Pennsylvania license law? A)An Ohio real estate licensee who also holds a reciprocal license in Pennsylvania is fined by the Ohio Real Estate Commission for failing to properly handle trust funds. B)Barry enters into a listing agreement with salesperson Alan. He's in no rush to move, so they leave the agreement open ended. C)Heidi provides a prospective buyer with a lead-based paint disclosure and pamphlet against her seller's wishes. D)To win a listing, Jeanette tells a consumer she can sell his house well above the property's assessed value, even though she finds this claim unlikely.
C-Heidi provides a prospective buyer with a lead-based paint disclosure and pamphlet against her seller's wishes.Licensees must provide required state or federal disclosures, even if this goes against a client's wishes.
In Pennsylvania, a consumer must be notified of their right to negotiate ______. A)Advertising rules B)Fair housing laws C)Listing period durations D)MLS fees
C-listing period durations
Latoya is a real estate licensee in Pennsylvania who's working with a seller. Which statement best describes Latoya's responsibilities related to the Real Estate Seller Disclosure Act? A)Latoya doesn't have any responsibilities related to this act. B)Latoya must complete a seller disclosure form on behalf of her client, in accordance with the act. C)Latoya must ensure her client is aware of the act. D)Latoya must obey the act and ensure that her client does as well.
D- she must obey the act and make sure her client does too
Lisa holds a reciprocal salesperson's license in Pennsylvania. Which of the following is true? A)She can only obtain a reciprocal license if her state has an agreement with Pennsylvania. B)She can serve on the Pennsylvania real estate commission. C)She must pass the same licensing exams that standard license holders must take. D)She's exempt from continuing education requirements.
D- she's exempt from continuing education requirements
Toby is a Pennsylvania licensee meeting with a consumer who's interested in listing a property for sale. At what point does Toby need to provide the Consumer Notice to the prospective seller? A)Any time prior to the seller entering into a sales agreement with a buyer B)At first contact C)Upon entering into a listing agreement D)Upon first substantive contact
D- upon first substantive contact State regulations require the notice be provided upon initial interview, which may also be called first substantive contact. This may not necessarily be first contac
At a recent real estate commission meeting the following members were in attendance: the commissioner of the Bureau of Professional and Occupational Affairs, the director of the Bureau of Consumer Protection, five licensed real estate brokers with at least 10 years' experience, and a cemetery broker with at least 10 years' experience. Who was missing? A)The commission chairman B)The governor of Pennsylvania C)Three licensed real estate salespersons with less than 10 years' experience D)Three unlicensed members representing the public at large
D-3 unlicensed members
Which option describes the salesperson application process in Pennsylvania? A)Apply in writing on an approved form after you have three years of real estate experience. B)Apply in writing on an approved form after you turn 21. C)Apply in writing on an approved form within three years of passing exam, include place of business for which license is desired. D)Apply in writing on an approved form within three years of passing exam, include sworn statement by broker that will supervise and train the applicant.
D-Apply in writing on an approved form within three years of passing exam, include sworn statement by broker that will supervise and train the applicant.
Rachel is a real estate salesperson in Pennsylvania. The commission recently revoked her license because of fraudulent conduct. Which of the following is true? A)Rachel also faces possible jail time due to her fraudulent conduct. B)Rachel can continue practicing real estate, but commission supervision is required for all her activities. C)Rachel can never practice real estate in Pennsylvania again. D)Rachel must stop practicing real estate for at least five years. After that, she can apply for a new license.
D-Rachel must stop practicing real estate for at least five years. After that, she can apply for a new license.
Which of the following actions would be appropriate for a Pennsylvania licensee to engage in with a consumer the licensee does not represent? A)Advertisement of property for sale B)Providing legal advice. C)Suggesting terms for an offer or counter-offer D)Suggesting the consumer seek professional legal advice when matters are outside the scope of the licensee's expertise
D-Suggesting the consumer seek professional legal advice when matters are outside the scope of the licensee's expertise
In Pennsylvania, who or what entity receives complaints filed against a licensee?
Department of State
Margaret is pursuing her Pennsylvania real estate salesperson license, but only her grandmother calls her Margaret. She'd instead like to advertise and be licensed under her nickname, Peggy. Which statement best describes how she can do this?
She must include her nickname on her salesperson license application to advertise using her nickname.
Which of the following documents does a Pennsylvania broker need to retain for three years?
Expired listing agreement
Ezra is applying for a standard salesperson's license in Pennsylvania. He actively holds a similar license in another state. What can we reasonably assume to be true?
He passed only the state portion of the PA licensing exam.
You just saw the latest reports, and your brokerage outsold everyone else in your Pennsylvania town. On your next round of advertising you decide to include "Top Selling Broker in Town!" What else must you also include on the advertisement?
Identify the specific municipality where your market is
Samantha is a licensee in Pennsylvania. She owes all of the following duties to both consumers and clients EXCEPT which of the following options?
Keeping information disclosed by the party confidential
Maddox is a Pennsylvania licensee who violated license law by commingling trust and personal funds. He claims that his broker, Heather, didn't adequately train him. Heather claims that Maddox had access to Pennsylvania license law statutes and she was available to answer any questions, but says that she didn't know violations were made. Who is at fault?
Maddox is at fault for violating license law, but Heather may also be at fault for failure to supervise.
When does your real estate license expire in Pennsylvania?
May 31 of every even numbered year
A timeshare developer in Pennsylvania is offering prospective buyers $5,000 off their purchase price if the buyer waives the right to cancel upon signing a purchase agreement. Is this legal?
No, per Pennsylvania law, the buyer's right to cancel can't be waived.
Stella wants to obtain a real estate license in Pennsylvania. Which one of these aspects of the licensing process does the Pennsylvania Real Estate Commission have the authority to perform?
Promulgate the rules and regulations that set licensing requirements.
Abigail is a Pennsylvania broker who supervises several salespersons and associate brokers. Which of these forms outlines how much will be paid to her when she or any of her associated licensees engages in a transaction?
Real Estate Licensing and Registration Act (RELRA)
Janine holds an active license in another state and is applying for a standard broker's license in Pennsylvania. Which statement best describes what she needs to do related to the licensing exam?
She must pass the state portion of the licensing exam.Standard broker license applicants who have an active broker license in another state only need to pass the state portion of the exam. If Janine were seeking a reciprocal license, she may not need to take the exam at all.
Hope's Pennsylvania real estate license is about to expire and she's not going to be able to renew it on time. How long can she continue practicing real estate?
She can continue practicing until the renewal date, when the license will expire. A license becomes inactive if not renewed on time. Real estate services can't be performed when a license is inactive.
Connie is an unlicensed individual who serves as a member on the Pennsylvania State Real Estate Commission. What compensation does she earn for serving in this role?
She receives a per diem of $60 when spending time on commission business and is reimbursed for reasonable expenses.
Celia holds a cemetery salesperson's license in Pennsylvania. What can we reasonably assume about her?
She's at least 18
Which of the following facts would disqualify Tina from obtaining a timeshare salesperson's license in Pennsylvania?
She's completed 15 days of on-site training.Qualifications for a timeshare salesperson's license include: 18+ years of age, completion of 30 hours of approved coursework, and 30 days of on-site training.
Sally is applying for a reciprocal salesperson's license in Pennsylvania. She actively holds a license in another state that has a reciprocal agreement in place with Pennsylvania. Which of these is a requirement for obtaining her Pennsylvania license?
Submitting a statement that she's familiar with Pennsylvania laws Sally is licensed in a state that has an agreement with Pennsylvania and she's applying for a reciprocal license, so no additional education, experience, or examination requirements are needed. But Sally must be familiar with Pennsylvania laws.
What is a requirement to qualify for a campground membership salesperson license?
Successful completion of 15 hours in: Basic contract law; sales practices and procedures; sales ethics and basic theory of campground memberships
Summer is a real estate salesperson in Pennsylvania who works for ABC Brokerage. The main office is in Philadelphia, but Summer works out of the King of Prussia branch office. Which of these statements is correct?
Summer's license will be maintained at the Philadelphia office, and the King of Prussia office will include Summer's name on the list of licensees working out of that office.The broker's current license and any affiliated licensees' licenses must be maintained at the main office. Brokers must keep a list of all licensees at the branch office where they work.
Where does the money in Pennsylvania's Real Estate Recovery Fund reside?
The State Treasury
How is Pennsylvania's Real Estate Recovery Fund funded?
Through a $10 fee at license issuance and renewal
What is the purpose of the Pennsylvania Consumer Notice?
To inform consumers about their representation choices
Louis is a real estate broker in Pennsylvania. He's moving his office. What obligation does he have?
To notify the commission within 10 days AFTER the move
How long must Pennsylvania brokers retain deposits and other escrow funds?
Until either transaction closing or a termination prior to the transaction closing
Wally is a Pennsylvania licensee. He's planning to purchase a house with several acres of land from seller Seth. Based on Wally's expertise, he believes the property is being underutilized and plans to divide the land into several separate lots to sell off individually. What does Wally need to disclose to Seth?
Wally must disclose his true intention related to the property.Licensees must disclose in writing their true intention regarding a property if they have an interest in the property, and any conflicts of interest they may have. Licensees must disclose their license status when selling their own property.
Norma has just entered into an agreement to act as a buyer's agent. How long must this agency agreement be retained, according to Pennsylvania law?
at least 3 years
Larry, a Pennsylvania broker, provided a copy of the Consumer Notice to a prospective buyer prior to entering into an agency relationship and showing the buyer several properties. How long must he retain a copy of the notice?
at least 6 months
Edward, a Pennsylvania broker, is going through transaction files from one year ago. Which of the following items can be disposed of?
consumer notice
what documents only need to be held for 6 months
consumer notice, sub agent and transaction licensee agreement
What does Pennsylvania call it when you contact the public with unsolicited offers via a multitude of communication vehicles, and in high frequency, even with your buyer's permission?
harrasment
Keir's Pennsylvania real estate license expired five days ago. What does this mean?
he needs to stop practicing real estate
In Pennsylvania, who must provide a disclosure form about the water source?
sellers
A seller in Pennsylvania is reviewing the exclusive listing agreement he's about to enter into with a broker. Which of the following elements should the seller expect to see in the agreement?
specific duration or termination date
Which organization specifies in their Rules and Regulations the standards of conduct that each Pennsylvania licensee must follow?
state real estate commission
Michael is a salesperson in Pennsylvania who works for a broker named May. Michael is representing a buyer whose offer to purchase a property was accepted. Angela is the salesperson representing the seller in the transaction. Her broker, Tommy, is designated as the escrow agent for the transaction. Who should be named as the trustee on the account holding the buyer's earnest money check?
tommy
Alec, a Pennsylvania broker, received an earnest money check from an associated licensee. By when must Alec deposit the check?
with in 1 business day
