Free Pennsylvania Real Estate Practice Exam Questions (April 2024) 30+

The Pennsylvania Real Estate Commission administers and enforces the laws of the Commonwealth relating to real estate activities. The real estate commission conducts its business in order to protect the public interest. Think of the commission like the executive branch of the federal government. The commission is in charge of enforcing Pennsylvania real estate law, while different parts of the government do other aspects like writing and creating laws.

Trick question! Jacob is unlicensed, so never, since a broker may not pay a referral fee to an unlicensed person. In Pennsylvania, it is forbidden to pay anyone unlicensed referral fees.

Both Pennsylvania state and National law must be followed by all Pennsylvania real estate agents

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. It's important to highlight that because after a year any issues cannot be filed.

The real estate recovery fund is a special fund established by the Real Estate Licensing and Registration Act to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. The Recovery Fund is designed to protect consumers and the consumers are entitled to collect.

Ethically speaking the most significant responsibilities agents have is their duty to disclose honest and accurate information.

The Commission administers and enforces the laws of the Commonwealth relating to real estate activities. The Commission is also in charge of suspending and revoking licenses when violations occur and in-charge of all licensee related things.

Some agents may put their licenses in escrow for numerous reasons. To do that they may submit a form to the Pennsylvania Real Estate Commission, and enclose their real estate license.

The real estate recovery fund is a special fund established by the Real Estate Licensing and Registration Act to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required.

Commingling is when a licensee mixes funds held in care for a client with their own funds.

Pennsylvania's first real estate license law was adopted way back in May 1st, 1929, and was amended numerous times to reflect changes in the state and industry. With most states, real estate law changes throughout time. On February 19th, 1980, the current law, known as the Real Estate Licensing and Registration Act (RELRA), was adopted.

Whenever you pay your agency fees a portion of those fees go towards the recovery fund, it's $10 normally, and the only time it may be more is if the recovery fund is lower then $300,000. The Commission then asks for an additional $10 from every licensee until the fund increases above $500,000.

Cemetery brokers need to have a real estate license in certain U.S. states; Pennsylvania is one of them. They ALSO require an additional education requirement.

Here are the Pennsylvania brokers license requirements. An applicant must be 21 years or older, pass a background check, and must be recommended by an accredited broker in the state of Pennsylvania additionally two references who own property in their county must be added to the application as well. Almost like references for when job interview. They must have completed 16 credits or 240 hours of real estate instruction within ten years before the date of successful completion of the licensing examination and of course, have the appropriate fees and pass the exam.

Failing to preserve for three years following its consummation records relating to any real estate transaction is a violation! But two years is not. All the other acts are prohibited.

The real estate recovery fund is a special fund established by the Real Estate Licensing and Registration Act to provide reimbursement to persons who are victims of fraud. The fund is addressed when agents or brokers give their soon to be principals their consumer notice.

Here is a full list of what Pennsylvania assistants can and cannot do. First off they cannot: Host an open house to be attended by the general public. Explain or interpret information on the listing sheets to licensees to the general public. Provide information on the style, location of the home, lifestyle or amenities available. Tour or show a home to the general public, discuss prices, price ranges or mortgage rates. They can, however: Host an open house to be attended by only real estate licensees. Show a rental property to potential tenants. Prepare and distribute brochures about listed properties to other real estate offices. Erect “for sale” signs. Maintain lockboxes. Perform general clerical duties.

The Commission can and WILL suspend a salespersons license if they advertise a property without the consent of the owner. That is a clear violation from the Real Estate Licensing and Registration Act. Damages is normally distributed through the real estate recovery fund but is in the form of cash.

In Pennsylvania, it is required that in the process of a real estate transaction is it required for the licensee to disclose if they hold any ownership interest. This is pretty straightforward. If you hold any form of ownership in a transaction, you must disclose it to the appropriate parties.

Section 35.305(c) of the Commission’s Regulations, 49 Pa. Code §35.305(c), requires that all advertisements by associate brokers, salespersons, cemetery associate brokers, or cemetery salespersons contain the employing broker’s business name and telephone number on the advertisement, of equal size.

If a licensee represents more than one party in a transaction(an example of dual agency), all parties must give written consent to the multiple representation. Pretty straightforward, this promotes transparency and makes sure everyone understands the circumstances.

Applicants for salespersons do NOT need 2 real estate agent references. Brokers need references. They must be recommended by an accredited broker in the state of Pennsylvania additionally two references who own property in their county must be added to the application as well.

The seller pretty much always gets the earnest money. Earnest money is a deposit the buyer pays into escrow. If he or she fails to close the deal for any reason other than those listed in their contingencies, the seller gets to keep it to compensate for lost time/money/marketing ability. So the correct answer was the seller.

Pennsylvania real estate laws protect agents, buyers, sellers, landlords, tenants and more specifically transparency.

The real estate recovery fund is a special fund established by the Real Estate Licensing and Registration Act to provide reimbursement to persons who are victims of fraud, misrepresentation or deceit committed by real estate licensees during the course of any transaction for which a license is required. The Recovery Fund is designed to protect consumers.

A real estate broker must hold a brokers license in the state of Pennsylvania - simple as that.

In Pennsylvania, the Real Estate Licensing and Registration Act clearly states giving a consumer notice is required. Here is the direct quote: “In an effort to enable consumers of real estate services to make informed decisions about the business relationships they may have with real estate brokers and salespersons (licensees), the Real Estate Licensing and Registration Act (RELRA) requires that consumers be provided with this Notice at the initial interview.” The big thing to remember is the papers must be presented to any buyer or seller (or landlord or tenant) at first contact where real estate is discussed.

Consumer notices are CLEARLY defined in the Real Estate Licensing and Registration Act. Here is the direct quote: “In an effort to enable consumers of real estate services to make informed decisions about the business relationships they may have with real estate brokers and salespersons (licensees), the Real Estate Licensing and Registration Act (RELRA) requires that consumers be provided with this Notice at the initial interview.” - This notice referring to consumer notices.

His or her’s license is automatically suspended as of the effective date of payment when payment is made from the recovery fund. For the licensee to have the license reinstated, the licensee must repay the full amount plus interest at the rate of 10% per year.

Licenses expire May 31 of every even-numbered year. There is no tenure or any special conditions that would allow Bridget an extended active license. As of June 1st her license would be inactive and would have to cease practice until she gets it renewed.