PA REAL ESTATE EXAM

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1. A listing broker procures a ready, willing, and able buyer for his or her seller-principal. The seller first accepts the buyer's offer in writing, then experiences a change of heart and withdraws the original acceptance. In this situation, the broker<: 1. 1. The broker has fulfilled his obligation under the terms of the listing contract with the seller by procuring a ready, willing, and able buyer and is therefore entitled to recover his agreed-upon compensation. He may not sue the buyer and cannot retain the deposit as compensation.
2. In Pennsylvania, brokerage fees are 1. set by law. 2. set by the Pennsylvania Real Estate Commission. 3. determined by local groups of brokers operating a multiple listing service. 4. negotiable between the consumer and the b: 2. 4. Brokerage fees are established solely as a result of a negotiated agreement between the broker and the consumer. The broker is required to disclose this to the consumer at the initial interview (608 (8)). Fees are not determined by law, the real estate commission, or local brokers.
3. Commissions earned by a broker in a real estate sales transaction 1. are determined by agreement of the broker and the consumer. 2. may be shared with an unlicensed person who is employed by the broker, provided that such person aided: 3. 1. Brokerage fees are established by agreement between the broker and the consumer to whom the broker provides service. The broker may not share these fees with an unlicensed individual (604 (a)(12.1)). The broker must maintain the earnest money deposit until the transaction is consummated or terminated.
4. 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?: 4. 4. License law prohibits a salesperson or associate broker 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 he is affiliated (604 (a)(12)).
5. What determines the amount of compensation to be paid to a licensed real estate salesperson by the employing broker? 1. Negotiation between the broker and property owner at the time property is listed for sale. 2. The rules and regulat: 5. 4. The licensed salesperson and employing broker agree to the terms of compensation to be paid by the broker to the salesperson. Professional organizations, multiple listing services, and other parties, such as sellers, do not dictate or control compensation arrangements.
6. A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur? 1. No, because the real estate company would then be a dual agent.: 6. 4. In Pennsylvania, dual agency is permitted if both parties give their fully informed consent in writing 606.4(A).
7. The listing agreement with a seller has expired, and the seller lists with a different brokerage firm. The original listing salesperson now represents a buyer interested in the seller's property. The original listing agent 1. is a dual agen: 7. 2. The original agent may not disclose offers received during the first listing. The fiduciary duty of confidentiality continues after the termination of the agency relationship (606.1 (g)). The agent is not a dual agent, since the original agent no longer has an agency relationship with the seller.
8. A buyer contacts a real estate office and indicates an interest in purchasing a home in the area. In the absence of a buyer agency relationship with the buyer, a salesperson from the real estate office should do all of the following EXCEPT: 8. 3. The agent should not gain information about motivation and urgency, which is generally of a confidential nature and should not be discussed outside of an agency relationship. The agent may provide information on properties for sale in the area, discuss mortgage interest rates and terms, and discuss various levels of representation available to the buyer.
9. In a dual agency situation, a broker may collect compensation from both the seller and the buyer if 1. the broker is licensed as a dual agent. 2. the buyer and the seller are related by blood or marriage. 3. both parties give thei: 9. 3. Written consent to act as a dual agent must include a statement of the terms of compensation (606.4). Both parties must consent to the dual compensation. Neither must be represented by attorneys nor do they have to be related.
10. 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 1. XYZ Realty has obtained the seller's written consent to: 10. 1. The seller must consent in writing in order for the listing broker to extend an offer of subagency (606.1 (c)). The cooperating broker acting as a subagent must provide the consumer notice and appropriate documentation to the buyer prospect (606.1 (b)(4)). The buyer is not the one to agree to the offer of subagency.
11. A real estate broker has signed an agency agreement with a tenant, who is looking for an apartment to rent. The broker does not charge a fee to prospective tenants; rather, the broker receives compensation from landlords. The broker tells a landlord: 11. 3. By entering into an agency agreement with a prospective tenant, the broker assumes full fiduciary responsibilities without regard for the issue of compensation. The broker has not operated in a manner consistent with the best interest of his client.
12. A licensed salesperson obtains a listing. Several days later, the salesperson meets prospective buyers at the property and tells them, "I am the listing agent for this property, and so I'm very familiar with it." He then proceeds to engage: 12. 1. The salesperson has failed to comply with the state law. Prior to engaging in a substantive discussion, the licensee is required to provide the consumer with a consumer notice disclosing information required by law (608).
13. A real estate company has entered into agency agreements with both a seller and a buyer, both of whom have signed a Dual Agency Consent Agreement. The salesperson with the realty company who has been working with the buyer may 1. provide c: 13. 1. In a dual agency situation, the licensee owes certain fiduciary duties to both parties. Simply providing comparable market data about recent sales to the buyer does not compromise the duties owed to the seller and would therefore not be a violation of the agent's duty under the law of agency.
14. While representing a seller under a listing contract, 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. The o: 14. 4. The agent's duty of confidentiality continues after termination of the agency relationship. Information gained during the original agency relationship may not be revealed or used by the licensee for the benefit of the licensee or a third party (606.1 (g)).
15. While negotiating terms of a listing contract with a seller, the seller suggests a listing price significantly below what the salesperson believes the property would sell for in the open market. What is the best course of action for the licensee to f: 15. 2. The licensee should disclose a professional opinion of value and recommend that the property be listed at market value. A licensee is expected to exercise reasonable professional skill and care when dealing with the public and to deal honestly and in good faith (606.1 (a)).
16. Which of the following is true regarding agency relationships between licensees and consumers? 1. All agency relationships must be expressly created by written agreements. 2. An open listing agreement creating an agency relationship b: 16. 2. Agency relationships may be created either orally or in writing. A written agreement is necessary when the broker is providing a service for a fee. Brokers may represent buyers and sellers in the same transaction with the consent, in writing, from both parties (606. l(b)).
18. A salesperson receives an offer on a property currently listed exclusively with another broker. The salesperson approaches the seller with the offer and a new listing contract, recommending that the seller terminate the current listing and list: 18. 3. The salesperson has violated license law and ethical business practices that prohibit inducing a party to break a contract for the purpose of substituting a new one when such substitution is motivated by the personal gain of the licensee (604 (a)(l 1)).
19. A broker who operated a sole proprietorship dies. Another licensed broker is now supervising the termination of the business of the deceased broker. The second broker may 1. take new listing agreements not to exceed a term of 90 days.: 19. 2. A licensed broker supervising the termination of a deceased broker's business can continue to promote existing listings unless otherwise directed by the seller but may not enter into new listing agreements nor hire new licensees. Pending contracts can continue to consummation (35.252(b)).
20. The salesperson represents the seller in a transaction. When prospective buyers ask to look at the property, the salesperson must 1. tell them that they must first enter into a buyer representation agreement with another licensee. 2.: 20. 3. The consumer must be provided with the Consumer Notice at the initial interview. The best evidence is the buyer's signature on the form, but a licensee may provide a service without the buyer actually signing the document. The licensee, however, must retain appropriate documentation that the consumer notice was provided.
23. A consumer hires a broker to serve as a buyer's agent. The broker 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 the broker in this situati: 23. 4. A broker is permitted to act as a dual agent provided the broker secures the written consent of both parties to the transaction. The requirement is informed consent after full disclosure as provided at the initial interview (606.4(a)).
24. A licensed real estate salesperson owns a three-unit apartment building for investment purposes. Under what conditions may the salesperson sell the property? 1. The salesperson may be a "for sale by owner," but the salesperson mu: 24. 1. A licensee who sells or leases his or her 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 (35.304).
25. A consumer contacts a licensee to discuss the possibility of the licensee handling the sale of a property owned by the consumer. The licensee's responsibility is to 1. provide the consumer with a written guarantee concerning the amount and: 25. 3. During the initial interview the licensee must provide a Consumer Notice containing disclosures required by the rules of the commission (608). An initial interview is considered to be the first contact between a licensee and a consumer where a substantive discussion of real estate needs occurs.
26. If a licensed salesperson owns multifamily residential property for investment purposes, the salesperson 1. must deposit collected rents into an escrow account. 2. must disclose his or her license status to prospective tenants before: 26. 2. A salesperson who is selling or leasing his or her own real estate is required to disclose his or her licensed status to a prospective buyer or lessee before an agreement is entered into. Rents are not deposited into an escrow account. Only the employing broker may compensate a licensed salesperson employed by that broker (35.288).
28. 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? 1. The broker will have his or her lice: 28. 2. The salesperson's failure to provide the Consumer Notice at the initial interview is a violation of the license law (604(a)(15.1)). Licensees are subject to disciplinary action by the commission including possible suspension or revocation of their licenses.
29. A seller is required to give a buyer a Property Condition Disclosure in all of the following transactions EXCEPT 1. when the seller is not assisted by a real estate licensee. 2. if the seller was the owner/occupant but has not resided: 29. 3. A property condition disclosure form is not required in the sale of commercial property. A disclosure is required even if a licensee is not involved (for-sale-by-owner) by an absentee owner and if the buyer was a tenant in the property.
30. In the case of the sale of an existing single-family home, property condition disclosures must be delivered to the buyer 1. prior to the buyer's making a written offer. 2. at the time that the seller agrees to the offer. 3. at th: 30. 1. Pennsylvania law requires the seller to provide the buyer with the property condition disclosure statement prior to the buyer entering into an agreement of sale with the seller.
31. 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? 1. The disclosures are optional, and the seller may avoid liability by refusing to: 31. 4. 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.
32. Six months after the buyer bought a house, the roof leaked during a rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they agreed not to disclose the fact to prospective buyers. The broker claims that the buye: 32. 1. The buyer can sue both the seller and broker who both have legal liability for disclosing a material defect that was known to them and not made known to the buyer prospect.
33. All of the following are exempt from the Property Condition Disclosure Act EXCEPT a 1. foreclosure sale. 2. new construction sale covered by a builder's warranty. 3. conveyance of a primary residence from one former spouse to ano: 33. 4. Sale of a two-unit property owned by a licensee and sold "For Sale by Owner" is not one of the exempt transactions; so the seller must make appropriate disclosures. The Real Estate Seller Disclosure Act provides for nine instances in which disclosure requirements do not apply: new construction covered by a builder's warranty, foreclosure sale, and conveyance between one spouse and another.
34. A real estate broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. By law, which must the broker disclose to a prospective buyer? 1. Both facts 2.: 34. 3. The Real Estate Seller Disclosure Act requires property condition and defects to be disclosed to the prospective buyer. The current statute does not require disclosure of situations such as suicide of the former seller.
35. Five years ago, Unit 5B in a condominium community was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and died in the unit last year. As the agent for the: 35. 3. There is currently no statutory requirement addressing the disclosure of the murder. Federal fair housing laws prohibit any discussion of AIDS or HIV. Licensees must be aware of potential legal liability that could arise in this situation and should seek guidance from legal counsel.
36. How are members of the Pennsylvania Real Estate Commission selected? 1. Appointed by the governor 2. Public election 3. By a committee of the State Association of REALTORS® 4. Elected by real estate licensees: 36. 1. Each member of the Pennsylvania Real Estate Commission is appointed by the governor (202 (a)). The members are not selected by REALTORS® or elected by the public or real estate licensees.
37. In order to become a member of the Pennsylvania Real Estate Commission, a candidate must 1. be endorsed by the state and local association of REALTORS®. 2. be appointed by the governor. 3. be a licensed broker or salesperson act: 37. 2. The governor appoints members to the State Real Estate Commission (202 (a)). No endorsement from any professional organization is required nor is there any requirement regarding posting a surety bond. Salesperson licensees are not qualified to serve on the commission.
38. How many members of the Pennsylvania Real Estate Commission are required to be licensed real estate brokers at the time of their appointment? 1. 11 2. 9 3. 6 4. 5: 38. 4. The State Real Estate Commission must include five members who shall at the time of appointment be a licensed and qualified broker under the existing law (202).
39. All of the following statements regarding the Pennsylvania Real Estate Commission are true EXCEPT 1. members of the commission are selected by the state Association of REALTORS®. 2. the commission makes and enforces the rules by whic: 39. 1. Members of the real estate commission are appointed by the governor (202 (a)), not the state Association of REALTORS®. The commission prescribes subjects for testing, but the department contracts with a professional testing service to write and administer exams (403). The commission also promulgates rules and regulations (404) and reports to legislative committee's (408).
40. In Pennsylvania, the real estate license law is administered by the 1. Department of State. 2. real estate commission. 3. State Association of REALTORS®. 4. Department of Housing and Urban Development.: 40. 2. The Pennsylvania Real Estate Commission has the power and authority to administer and enforce the license law (406). The Pennsylvania Association of REALTORS® is a trade association whose members are licensees. The Department of Housing and Urban Development generally handles fair housing, not licensing issues.
41. The purpose of the license law is to 1. prevent convicted criminals from engaging in the real estate business. 2. generate license and renewal fees for the state treasury. 3. authorize the Pennsylvania Real Estate Commission to p: 41. 4. The purpose of laws, including licensing laws, is to provide for the good, safety, and welfare of the public. The rationale supporting the validity of the law is the government's responsibility to ensure that the public is protected.
42. The Pennsylvania Real Estate Commission has the authority to 1. make and enforce the rules by which all real estate licensees must abide. 2. compose the examination questions on the state exam. 3. administer the exams given at th: 42. 1. The Pennsylvania Real Estate Commission administers and enforces laws governing the conduct of licensees (404). The state legislature enacts laws that govern licensees. The department of state arranges for the services of a professional testing service to write and administer examinations (403).
43. The Pennsylvania Real Estate Commission may undertake an investigation of a licensee based on all the following grounds EXCEPT 1. its own initiative. 2. a random selection of licensees currently active. 3. a motion from the membe: 43. 2. The commission may not investigate a random selection of licensees. The Pennsylvania Real Estate Commission may commence an investigation of a licensee's conduct upon its own motion as well as upon receipt of a verified complaint in writing from a consumer (604).
44. During the course of a routine or special inspection, the commission or its authorized representative will be permitted to do all of the following EXCEPT 1. interview consumers who are presently conducting business during the inspection.: 44. 1. There is no provision in the commission rules for interviewing consumers or members of the public (35.246 (d)). The commission or its authorized representative may interview the broker as well as other licensed or unlicensed employees who work in the office.
45. The Pennsylvania Real Estate Commission has statutory authority to perform all of the following duties EXCEPT 1. prescribe the subjects to be tested on license examinations. 2. approve schools offering or conducting courses of study i: 45. 4. The Pennsylvania Real Estate Commission does not have statutory authority to issue licenses. Licenses are issued by the Department of State (401). The commission prescribes subjects to be tested (403), approves schools (402), and may waive continuing education requirements (404.1).
46. Who of the following is subject to disciplinary action by the Pennsylvania Real Estate Commission? 1. Employees of a real estate appraisal firm 2. Elected officers of a banking institution handling real estate transactions for the ban: 46. 4. Campground membership salespersons are required to be licensed and are subject to disciplinary action on the part of the commission (581). Appraisal firms are regulated by the State Board of Certified Appraisers, rather than the Pennsylvania Real Estate Commission. Officers of banking institutions and attorneys in fact are excluded from the license law (304).
47. A salesperson engaged in activities that constitute violations of the Pennsylvania Human Relations Act, including blockbusting and discrimination on the basis of disability. The salesperson also cashed a $25,000 earnest money check from a prospective: 47. 1. License law provides that the employing broker might not be liable for a violation committed by a licensee employed by the broker. If the broker had actual knowledge, or if the licensee engaged in a course of dealing that the broker should have been aware of, liability could accrue to the employing broker (702(a)(c)).
48. Which of the following actions on the part of the broker are legal and not a violation of the license law? 1. Openly soliciting salespersons or associate brokers employed by competitors to change employing brokers 2. Placing a "F: 48. 1. It is legal for a broker to recruit salespeople or associate brokers employed by competitors. Violations of the license law include placing a "For Sale" sign without written consent of the seller, failing to specify a definite termination date, and failing to exercise adequate supervision of a licensee's activities (604(a)(8)).
49. The Pennsylvania Real Estate Commission may take disciplinary action against a licensee when the licensee violates all of the following EXCEPT 1. Pennsylvania Human Relations Act. 2. rules and regulations adopted by the Pennsylvania R: 49. 4. Anti-trust 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.
50. A listing broker offers a $500 bonus to any salesperson that sells a particular listing within the next 30 days. Which of the following is true? 1. The seller must give his or her consent in writing to the broker allowing him or her to off: 50. 2. License law prohibits a licensed broker from paying compensation to anyone other than his or her licensed employees or another broker, and it prohibits a salesperson from accepting compensation from anyone other than his or her employing broker (604 (a)(12)).
51. Which of the following activities would most likely result in disciplinary action against a broker? 1. Allowing a newly licensed salesperson to hold open houses for the public before completing the company's training program 2. Paying: 51. 2. License law specifically prohibits a broker from paying a commission or other valuable consideration to anyone other than his or her licensed employees or another real estate broker (604(a)(12.1)).
52. 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 t: 52. 2. 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 (35.290 (a)). 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 (604 (a)(14)).
53. As a result of a hearing alleging a violation of the license law, what action may the real estate commission take? 1. Suspend or revoke any license issued by it 2. Levy a fine not to exceed $500 3. Suspend a license and impose a: 53. 3. As a result of a hearing, the commission may decide to suspend or revoke a license as well as impose fines not exceeding $1,000 (604 (a)). The commission has no authority to imprison a licensee. The Department of State, not the Pennsylvania Real Estate Commission, issues real estate licenses (401).
54. If a licensee is found guilty of making substantial misrepresentation when dealing with the public, the commission may 1. levy a fine of up to $5,000. 2. impose a jail sentence of up to three months. 3. revoke the licensee's lice: 54. 3. The commission may suspend or revoke a license or impose a fine of up to $1,000 or do both if a licensee is found guilty of making any substantial misrepresentation. The commission does not have authority to impose a jail sentence (604(a)).
55. An individual is found guilty of engaging in business as a broker or salesperson without being properly licensed. The penalty for the first offense includes a fine 1. of not more than $5,000 and imprisonment for a period not exceeding two: 55. 2. License law provides that any person who engages in business without being licensed is subject to criminal prosecution. The first offense is a summary offense punishable by a fine not exceeding $500, imprisonment not exceeding three months, or both (303).
56. What is the maximum penalty that could be imposed on an individual found guilty for the second time of engaging in the real estate business without a license? 1. Fine of $5,000 and imprisonment for a period of two years 2. Imprisonmen: 56. 1. The maximum penalty would be a fine of $5,000 and imprisonment for a period of two years. Specifically, the penalty for conviction for a second or subsequent offense is a fine of not less than $2,000 but not more than $5,000, imprisonment for not less than one year but not more than two years, or both (303).
57. In Pennsylvania all of the following would be grounds for revoking a broker's license EXCEPT 1. being convicted of a felony. 2. advertising in a newspaper that he or she is a member of the Pennsylvania Association of Real Estate Profe: 57. 4. A broker's compensation is negotiable between the parties. Misleading advertising is prohibited under 604 (a)(5) and being convicted of a felony could result in revocation of the broker's license under 604 (a)(14).
58. In Pennsylvania, which of the following is legal and will not result in a broker facing suspension or revocation of the broker's license? 1. Being legally declared mentally incompetent 2. Depositing earnest money received into the fir: 58. 2. The broker is required to deposit earnest money into an escrow account. Erecting a "For Sale" sign without written consent is a violation of 604 (a)(8), and the issue of honesty and competency are addressed under 604 (a)(20).
59. When is the Pennsylvania Real Estate Commission required to suspend a licensee's license? 1. If the licensee fails to perform as promised in a guaranteed sales plan 2. If the licensee is found liable in a civil trial for illegal discr: 59. 4. While the conduct addressed in each choice could cause a license to be suspended, the only issue that requires an automatic suspension of the license is when the commission pays money from the recovery fund to settle a claim against a licensee (803(f)).
60. Which of the following actions is legal and not a violation of license law? 1. Encouraging a seller to reject an offer because the prospective buyer is of a specific religion 2. Placing a "For Sale" sign in front of a house: 60. 2. A broker may place a "For Sale" sign on a property after receiving permission to do so. Brokers may not engage in discriminatory conduct (604(a)(22)). Only the broker has authority and responsibility to escrow funds in connection with real estate transactions (35.325 (a)). Advertisements regarding prizes must state the pre-requisites for receiving the prize or gift (35.306 (a)(2)).
61. When a sole proprietor broker has his or her license suspended for two years, what effect does this have on the associate brokers and salespeople affiliated with the broker? 1. Affiliates' licenses will be revoked, subject to reinstatement: 61. 4. Salespersons and associate brokers are employed by and provide services on behalf of their employing broker. If the broker's license is suspended or revoked, licenses of the associate brokers and salespersons are terminated. To remain in active practice, the affiliates are required to find new employing brokers.
62. In what circumstance may a violation of the license law on the part of a salesperson be grounds for the suspension or revocation of the employing broker's license? 1. The broker's license is only subject to suspension or revocation if the: 62. 2. License law provides that the broker may have his or her license suspended or revoked only if the broker had actual knowledge of the violation (702 (b)) or if the conduct of the salesperson demonstrated a course of dealing that could serve as prima facia evidence of knowledge on the part of the broker (702 (c)).
63. What is the minimum period of time a licensee who has had his or her license revoked must wait before reapplying for licensure? 1. 3 years 2. 5 years 3. 7 years 4. 10 years: 63. 2. Any person whose license has been revoked may reapply at the end of a five-year period from the date of revocation. They must meet all of the licensing qualifications of the act, including the examination requirement (501(c)).
64. 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? 1. If it can be shown that the conduct that resulted in the disciplinary action was a common c: 64. 1. A common course of dealing followed by an employee constitutes prima facia evidence of knowledge upon the part of the employing broker and could result in suspension or revocation of the brokers license (702 (c)).
65. A broker who wishes to place a "For Sale" sign on a listed property must first 1. obtain the written consent of the owner of the property. 2. sell the property. 3. secure an exclusive listing contract from the seller.: 65. 1. The broker must obtain the written consent of the owner before erecting a "For Sale" or "For Rent" sign on property (35.301 (a); 604 (a)(8)). The broker does not have to gain permission from the neighbors, local governing body, or sell the property. It is permissible to have signs on open listings as well as exclusives. Written consent, however, is always required.
66. When advertising real property for sale, real estate salespeople 1. need only to include the salesperson's personal phone number. 2. may simply give a telephone number to call for more information. 3. must include the name of the: 66. 3. An advertisement by a salesperson must contain the business name and telephone number of the employing broker (3 5.3 05 (b)). Real estate salespersons may not advertise under their own names.
67. A real estate salesperson decides to sell his or her own property "For Sale by Owner." When advertising the property, the salesperson 1. must disclose the name, address, and phone number of his or her employing broker.: 67. 2. All licensees are required to disclose their license status in advertisements for property if the property is not listed for sale with a real estate company (35.304).
68. When a broker advertises his or her production or position in the market, what must be included in the advertisement? 1. Number of licensed branch offices that the broker maintains in the market 2. Municipality that the market compris: 68. 2. Advertisements by a broker about production or position in the market must identify the municipality that the market comprises (35.307 (b)).
69. When advertising an individual property for sale, the broker must also include 1. the price of the property being advertised. 2. a statement or logo affirming the brokers commitment to nondiscriminatory business practices. 3. the: 69. 3. The business name as designated on the license must be included in all advertising (35.305). The telephone number of the broker must be included if the advertisement includes the name and telephone number of a salesperson or associate broker.
70. When advertising property for sale, what must the broker include in the advertisement? 1. Listing price of the property 2. Name of the salesperson who secured the listing 3. Broker's business name designated on the license 4: 70. 3. A broker is required to advertise under the business name designated on the license (35.305). 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.
71. The broker has developed a Web site advertising the broker's office. What, if anything, does the broker need to include? 1. Name as it appears on the license 2. License number of brokerage and list of all current active licensees: 71. 1. The real estate commission policy regarding internet advertising requires that the broker' s name as it appears on the license must be included on each page of the site on which the firm's advertisement occurs. The broker does not have to include license numbers, lists of licensees, or their addresses and phone numbers.
72. A licensed salesperson secures a listing and wants to advertise it on the salesperson's own internet Web site. Which of the following is a requirement that the salesperson must comply with when advertising on the internet? 1. A complete de: 72. 2. Any advertisement, including internet Web site advertising, must include the business name of the broker as it appears on the license. Recently adopted commission policies require that the broker's name and telephone number be included on each page of internet Web site advertising.
73. Three weeks before N begins his real estate prelicense class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5 percent commission. The seller accepts an offer while N is taking the class and closes the day N passes the: 73. 4. License law prohibits the filing of any suit or action claiming compensation for any act for which a license is required if the person filing suit was not duly licensed at the time of offering to perform such act or service (302).
74. 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? 1. Fine not to exceed $500. 2. Fine not to exceed $ 1,0: 74. 1. 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 (303).
75. An individual wants to sell her own house. In this situation, the individual 1. does not need a real estate license to sell her house herself. 2. must first obtain a real estate license issued by the Pennsylvania Real Estate Commissio: 75. 1. Owners of real estate conducting business with respect to their own property are not required to be licensed. They are excluded from licensure (304 (1)).
76. An unlicensed salesperson negotiated the sale of real estate in return for the promise of compensation. After the transaction closes, the salesperson encounters difficulty collecting the agreed upon fee. In this situation, the salesperson: 76. 4. The unlicensed person may do nothing. An unlicensed salesperson is involved in illegal activity and has no recourse to recover compensation (302).
77. An officer of a corporation is designated by the corporation to handle the sale of a parcel of real estate owned by the corporation. Which of the following statements is true regarding the corporate officer handling the sale of real estate owned by t: 77. 3. In the case of a corporation or partnership, this exclusion shall not extend to more than five of its partners or officers (304 (1)). The provisions of the license law do not apply to owners conducting business with regard to their own property.
78. A broker personally owns a 10-unit residential, multifamily property. The broker hires an unlicensed individual for the purpose of managing and maintaining the property. The unlicensed individual may legally perform which of the following activities?: 78. 1. An individual directly employed by the owner of multifamily residential property for the purpose of managing or maintaining the property is exempt from provisions of the license law. So long as the owner retains the authority to make decisions, the employee may show apartments and provide information on rentals. Unlicensed employees may not negotiate terms or conditions nor may they enter into leases on behalf of the owner (304 (10)).
79. 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? 1. Only a licensed Pennsylvania broker may handle the sale of prop: 79. 4. An attorney at law who receives a fee for rendering services within the scope of an attorney client relationship is exempt from licensure (35.302(5)) so can handle the transaction. As an owner, the corporation can designate no more than five of the corporation's officers to act on behalf of the corporation as the owner.
80. An unlicensed individual acting as a real estate consultant negotiated a sale of property and was unable to collect the agreed upon fee from the seller. The unlicensed individual 1. may file a lawsuit for breach of contract in the court of: 80. 3. This person has no recourse. License law prohibits the filing of suits seeking recovery for conduct engaged in violation of the license law. The term consultant, counselor, agent, or finder are all directly included in the definition of "broker" (201).
81. A salesperson remains inactive without renewing his license for over five years. Before the license will be reissued, the applicant must 1. complete 60 hours of coursework and pass the salesperson's license exam. 2. complete 14 hours: 81. 3. Any person who remains inactive for a period of five years without renewing his or her license must, prior to having a license reissued, take and pass the examination pertinent to the license for which the person is reapplying (501 (b)). There is no education or training requirement as a condition to reactivating a license on inactive status over five years.
82. A broker operating as a sole proprietor wants to locate the main office of his business at his personal residence. In this case all of the following requirements would apply EXCEPT the 1. office shall be devoted to the transaction of real: 82. 4. Rules governing offices do not prohibit a licensed broker from employing salespersons or associate brokers when the brokers office is located in a private residence. The rules do provide that the office must have a separate entrance, that the business name be displayed, and that the office allow for business to be conducted privately (35.342).
83. In Pennsylvania, who of the following would need to be a licensed real estate broker or salesperson? 1. Property management company that employs fewer than three leasing agents 2. Licensed attorney acting under a power of attorney to: 83. 1. Managing real estate is an activity included in the definition of a real estate broker provided in the license law, so a company will need a license (201). Licensed attorneys, partnerships acting as owners of property, and resident managers employed by owners of multifamily residential properties are excluded from the license law (304).
84. Under Pennsylvania licensing law, a partnership, association, or corporation will be granted a broker's license only if 1. one officer or partner is designated as the broker of record. 2. every member and officer actively participati: 84. 1. 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 (513 and 802).
85. An applicant for a real estate salesperson's license in Pennsylvania must 1. have completed at least two years of college. 2. be at least 21 years old. 3. not have been convicted of a felony within five years before applying.: 85. 4. Sections 521 and 522 establish requirements, which include that the application shall be received by the commission within three years of the date upon which the applicant passed the examination. Qualifications for licensure as a salesperson do not include college education nor a minimum age of 21. Conviction for a felony offense does not preclude the applicant from being issued a license.
86. Some people and situations are exempt from the provisions of the Pennsylvania Real Estate License Act. Who of the following is not exempt and must hold a real estate license? 1. Property owner who sells or leases his or her own property: 86. 2. An individual who undertakes to promote the sale, exchange, purchase, or rental of real estate or who represents himself to be a real estate consultant, counselor, agent, or finder is required to hold a broker's license (201(1)). A for-sale or for-rent by owner is exempt as is a resident manager and a licensed auctioneer at a bona fide auction.
87. Which of the following is a requirement to obtain a real estate salesperson's license in Pennsylvania? 1. Successful completion of 14 credit hours of real estate law, finance, and appraisal 2. An associate degree in real estate from a: 87. 4. The education requirement for a salesperson is completion of 60 hours of real estate instruction in areas of study prescribed by the commission (521). Citizenship is not a requirement for licensure nor is a degree from a college or university.
88. An individual directly employed by the owner of residential multifamily buildings is EXEMPT from licensing requirements when 1. showing apartments to prospective tenants and explaining building rules and regulations. 2. preparing and: 88. 1. 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 (304 (10)). Unlicensed individuals may not prepare and enter into leases, negotiate terms or conditions, or hold money belonging to tenants.
89. An applicant for a broker's license must 1. post a performance bond in an amount of $10,000. 2. be a resident of the Commonwealth of Pennsylvania. 3. have been actively engaged in selling real estate for at least three years.: 89. 4. The applicant for licensure as a broker in Pennsylvania is required to have been engaged as a licensed real estate salesperson or possess educational or experience qualifications which the commission deems to be the equivalent thereof (511 (4)). Residency or posting of a performance bond are not required of a broker candidate. The applicant must be a high school graduate or provide proof of an education equivalent thereto (511(2)).
90. A candidate for a broker's license in Pennsylvania must 1. be a college graduate. 2. be a citizen of the United States. 3. have experience in real estate sales. 4. have passed the broker's license exam within three years pri: 90. 4. The application must be received by the commission within three years of the date of passing the license exam (512 (c)). Neither citizenship nor a college degree are 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.
91. Which of the following candidates 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?: 91. 1. A builder owner salesperson applicant must take and pass the salesperson's examination but has no mandatory education requirement (551). Campground membership salesperson and cemetery salesperson applicants have no examination requirement. Rental listing referral applicants have both an education and an examination requirement.
92. Which of the following applicants for licensure is not required to pass a written exam for licensure? 1. Builder-owner salesperson 2. Rental listing referral agent 3. Cemetery salesperson 4. Cemetery broker: 92. 3. There is no examination or coursework required for a cemetery salesperson. Builder-owner salespersons (551), rental listing referral agents (561), and cemetery brokers (531) are all required to pass a written exam prior to licensure.
93. All of the following must complete education or training requirements prior to licensure EXCEPT 1. campground membership salespersons. 2. time-share salespersons. 3. cemetery salespersons. 4. rental listing referral agents.: 93. 3. There is no education requirement or exam required for a cemetery salesperson (541). Campground membership salespersons (581), time-share salespersons (591), and rental listing referral agents (561) are all required to complete education or training requirements as a condition of licensure.
94. In order to qualify for examination as a broker, the candidate must 1. be a high school graduate or have passed a high school general equivalency examination. 2. have been actively employed as a licensed salesperson for at least three: 94. 1. 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 (35.271 (a)). There is no residency requirement, and candidates may possess education or experience that the commission considers equivalent to three years experience as a licensed salesperson. Recommendations are required for licensure as a broker, rather than a condition of taking the examination.
95. Of the following licensed individuals, who must complete 14 hours of mandatory continuing education as a condition of license renewal? 1. Licensed time-share or campground membership salesperson 2. Licensed builder-owner salesperson: 95. 3. The requirements for mandatory continuing education requirements apply to real estate brokers and real estate salespersons only. They do not apply to other activities for which licenses are required, i.e., time-shares, cemetery brokers, or licensed builder owners (404.1 (a)).
96. When do real estate salespersons' licenses expire in Pennsylvania? 1. Biennially, in the month issued 2. May 31 of every even-numbered year 3. December 31 of the third year of licensure 4. Two years from the date the license: 96. 2. All licenses expire at the end of the license period established by the commission. Salesperson and broker licenses all expire the last day of May in even-numbered years and must be renewed on or before June 1.
97. To renew a license in Pennsylvania, a salesperson or broker must 1. prove that he or she is a Pennsylvania resident. 2. be actively participating in the real estate business. 3. have completed six hours of continuing education in: 97. 4. Commission rules (35.382) 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. (407 (a)) There is no requirement to be actively participating in the real estate business nor must the licensee be a Pennsylvania resident.
98. The term "broker" includes in its definition all of the following activities EXCEPT 1. managing real estate. 2. appraising real estate. 3. representing oneself as a real estate consultant or counselor. 4. performin: 98. 2. Appraisal activities are regulated by the State Board of Certified Real Estate Appraisers, rather than the Pennsylvania Real Estate Commission. A broker can manage real estate, do a comparative market analysis, and be a real estate consultant or counselor.
99. Who of the following persons must have a real estate broker's license in order to transact real estate business? 1. Person who owns a six-unit building and personally manages the building, collects rents, and shows the apartments to prospe: 99. 2. Negotiating the sale of real estate for another in return for a fee is a license-required activity. Residential multi-family property managers who are employed directly by the owner, persons holding power of attorney, and owners conducting real estate business with regard to their own property are excluded from the license law (304).
100. The on-site property manager employed directly by the owner of Acme Apartments is responsible for collecting rents for the apartments. In this position, the on-site manager 1. must have a salesperson's license. 2. must have a broker': 100. 3. Any person employed by an owner for the purpose of managing or maintaining multi-family residential property is excluded under the license law with regard to certain activities they may perform (304 (10)). Collecting rents in this situation would not be an activity requiring licensure.
101. At what point may a sales license candidate begin to engage in activities for which a license is required? 1. Immediately upon passing the license examination 2. Upon completion of the pre-license education requirement if the activit: 101.4. It is illegal to engage in any activity for which a license is required until the license has actually been issued by the state. Completing the requirements for licensure and processing paperwork to the state does not mean that a candidate is "licensed".
102. A licensed real estate salesperson may engage in all of the following activities on behalf of his or her employing broker EXCEPT 1. perform an appraisal for a federally related mortgage loan. 2. negotiate the purchase, sale, or excha: 102. 1. Real estate licensees are not authorized to engage in appraisal activities. Appraisal activities are regulated by the State Board of Certified Appraisers. The other activities are permitted under the definition of "salesperson" in the license law (201) and rules of the commission (35.201).
103. Immediately upon passing the salesperson licensing examination, which of the following activities may an individual legally engage in? 1. Sale of business opportunities to the public 2. Hold open houses for the public under the: 103. 1. A real estate license is not required for the sale of business opportunities. Upon passing the license exam a candidate is qualified to apply for a license. Until the license is issued by the state, an individual may not engage in any activity for which a license is required. Such activities include holding open houses for the public, preparing comparative market analyses, and negotiating loans on real estate.
104. Rental listing referral agents are licensed to engage in which of the following activities? 1. Show residential rental units in multifamily housing to prospective tenants 2. Collect rental information for the purpose of referring pro: 104. 2. A rental listing referral agent is defined as an individual or entity that owns or manages a business which collects rental information for the purpose of referring prospective tenants to rental units or locations of rental units (201 and 35.201). They are not authorized to show rental units, collect fees or security deposits, or engage in property management activities.
105. Which of the following activities may a builder-owner salesperson employed by a builder-owner of single and multifamily dwellings legally engage in? 1. Leasing a newly constructed home owned by his employer to a prospective tenant 2.: 105. 1. A builder-owner salesperson is a full-time employee of a builder-owner of single and multifamily dwellings who is authorized to list for sale, sell, lease, or rent any real estate owned by his builder-owner employer (201).
106. Real estate licensing is required in order to engage in the 1. sale of time-share interests. 2. negotiation of leases by employees of a public utility. 3. sale of property by an individual acting as a trustee in a bankruptcy pro: 106. 1. A time-share salespersons license is required to sell time-shares (201). Employees of a public utility, trustees in bankruptcy, and licensed auctioneers are all exempt from licensing requirements (304).
107. In reference to license laws and rules and regulations of the commission, what does the term "broker of record" refer to? 1. Employing broker who employs other associate brokers to work on his or her behalf 2. Individual br: 107. 2. The broker of record is the individual broker responsible for the real estate transactions of a licensed partnership, association, or corporation (35.201).
108. Regarding licensing and employment of personal real estate assistants in Pennsylvania, the personal assistant 1. must always be licensed. 2. may deposit and withdraw funds from the broker's escrow account without being licensed.: 108. 3. Only licensed employees of the broker may hold open houses for the public and withdraw funds from the brokers escrow account. Personal assistants may be employed by either the broker or salesperson to perform secretarial and clerical duties without being licensed.
109. A salesperson's licensed assistant worked late nights and weekends to help ensure the successful completion of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers, encouraging them to acc: 109. 3. License law prohibits a licensee from accepting a commission or any valuable consideration for the performance of any act specified in the Act from anyone except the licensed real estate broker with whom he or she is affiliated (604 (a)(12)).
110. An individual who holds a salesperson's license issued by another jurisdiction wants to obtain a Pennsylvania salesperson's license. Which of the following requirements must be met? 1. The salesperson's license issued by another jurisdict: 110. 1. 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 (35.223(b)).
111. A real estate salesperson has been working with buyer clients and helps them negotiate for their dream home. The buyer then asks the salesperson if she can help them secure a mortgage loan. The salesperson knows a lender that pays a fee for referrin: 111. 1. License law prohibits a licensee from accepting compensation from anyone other than his or her employing broker (604 (a)(12)).
112. Under the terms of a sales contract, the seller is required to pay for and provide a termite certificate. The seller requests that the salesperson order one. The salesperson does so, knowing she will receive a referral fee directly from the pest con: 112. 3. The non-disclosure is a violation of the law. License law (606.1 (a)(13)) requires licensees to disclose to the consumer any financial interest, including referral fees, derived from services to be provided to the consumer by any other person, including inspection services.
113. An airline pilot told a broker about some friends who were looking for a new home. The broker contacted the friends and eventually sold them a house. When may the broker pay the airline pilot a referral fee? 1. As soon as a valid sales co: 113. 4. The broker may thank the airline pilot. Brokers are prohibited from sharing fees with or paying compensation to an unlicensed person (604(a)(12.1)).
115. 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 the day of the visit. Four days later, they decide they do not want to go through with the transacti: 115. 3. 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 (609(a)). Any promotional prizes or gifts issued to the purchaser remain the property of the purchaser (609 (d)).
116. In Pennsylvania, brokers and salespeople may 1. bind the principal they represent to contracts. 2. fill in blanks on preprinted contract forms customarily used in their community. 3. write additional language for the purpose of: 116. 2. Brokers and salespeople may fill in the blanks of preprinted contract forms but may not engage in the practice of law. Advising parties on the significance or consequence of contract terms is engaging in the practice of law and should be avoided. The broker is a special agent hired with limited authority that ordinarily does not extend to binding principals to a contract.
117. Which of the following could be construed as the unauthorized practice of law? 1. Informing the buyer of the broker's personal opinion of the condition of the seller's title to the property 2. Making sure that the written agreement o: 117. 1. Opinions regarding condition of title to the property being sold could constitute the practice of law and should be avoided. Mandatory requirements and disclosures are addressed in the law (608.2 (1)), requirements regarding estimates of cost and return are addressed in (35.334), and records must be maintained for 3 years (604 (a)(6)).
118. Unless the parties to the agreement of sale agree otherwise, earnest money deposits received by a broker on behalf of his or her principal must be deposited in an escrow account 1. three days after receiving the offer. 2. three days: 118.4. A broker is responsible for depositing money into the escrow account by the end of the next business day following its receipt unless both the buyer and the seller have given written permission for the broker to refrain from depositing the money pending the seller's acceptance of the offer (35.324 (a) and (b)).
119. A broker received an earnest money deposit from a buyer. Under Pennsylvania law, the broker should 1. open a special, separate escrow account that will contain funds for this transaction only, separate from funds received in any other tra: 119. 2. Brokers are required to maintain a separate custodial or escrow account separate from any business or personal account. The broker is required to keep records of all funds deposited into the account. There is no requirement to maintain a separate account for each deposit (35.325); (604 (a)(5)).
120. The broker received a buyer's earnest money check for $5,000 and immediately cashed it. At closing, the broker handed the seller a personal check for $5,300, representing the original earnest money plus 6 percent interest. The broker 1. s: 120. 1. License law requires the broker to immediately deposit earnest money deposits in a separate custodial or trust fund account maintained by a bank or recognized depository until the transaction is consummated or terminated (604 (a)(5)(iv)).
122. Every licensed broker is required to 1. maintain escrow account records for five years. 2. keep transaction records for three years. 3. become a member of the local Association of REALTORS®. 4. employ at least one salesper: 122. 2. Brokers must maintain records of transactions for three years following consummation of the transaction. There is neither a requirement addressing number of employees nor a requirement that a licensee affiliate with any professional organization.
123. How long must a real estate broker keep records relating to real estate transactions? 1. One year from the date the property was listed with the broker 2. Three years following consummation of the transaction 3. Indefinitely: 123. 2. License law requires the broker to keep records relating to a real estate transaction for three years following consummation of the transaction (604 (a)(6)).
124. A broker is employed as a property manager. The building owner and the broker agree that the building air conditioning system needs to be replaced, and the broker is authorized to contract for the work to be done. Without the knowledge of the owner,: 124. 2. License law requires disclosure to the consumer of any interest a licensee has in any services to be provided to the consumer by any other person, including construction or repair services. (606.1 (a)(13)). Failure to make the disclosure could result in disciplinary action against the licensee (604 (a)(19)).
125. Under what circumstances may a broker deposit personal or business funds into their escrow account? 1. Never, commingling personal or business funds with escrow funds is prohibited. 2. The broker may deposit personal or business fund: 125. 2. 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 (35.326 (b)).
126. A licensed broker is employed by the owner of a residential multifamily housing complex to serve as the property manager. One of the broker's duties is to collect rent due from the tenants. When the rents are collected, the broker should: 126. 1. License law provides that a broker involved in property management activities on behalf of a lessor is required to maintain a separate rental management account for such deposits (604(a)(5)). The broker should not deposit rents in either an escrow account or the broker's general business account.
127. Who has authority to withdraw funds from the broker's escrow account for payments that are properly chargeable to the account? 1. Licensed employee who has been given written authority by the employing broker 2. Unlicensed accountant: 127. 1. The employing broker may give a licensed employee written authority to withdraw funds from the escrow account (35.325 (b)) and may give an unlicensed employee written authority to deposit money into an escrow account.
128. 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? 1. The listing broker representing the seller is required to hol: 128. 3. In cooperating broker transactions, the duty to escrow funds can be the responsibility of either broker. Rules of the commission provide that if the buyer gives the deposit to the listing broker, rather than the selling broker, the listing broker assumes the escrow duty (35.323 (a)). All parties must have a full disclosure as to which broker is holding the deposit in escrow.
129. Which of the following statements is true regarding the broker's escrow account? 1. The escrow account may designate the broker's company attorney as trustee of the account. 2. The escrow account must be an interest bearing account.<: 129. 3. Commission rules require the broker to provide a letter authorizing release of records pertaining to the escrow account (35.325 (d)). A broker's escrow account is required to designate the broker as trustee. "If money is expected to be held in escrow for more than 6 months, the broker is encouraged to deposit the money into an interest bearing escrow account. The general, recognized practice is that escrow accounts do not bear interest. Rents must be deposited in a rental management account maintained by the broker, not in the broker's escrow account.
130. Regarding a broker's escrow account, 1. as long as all parties to the transaction agree in writing, the broker's escrow duty may be waived. 2. if a dispute arises between the parties over entitlement to the money that is held in escr: 130. 2. If a dispute arises, the broker retains the escrow until the dispute is resolved (35.327). A broker's duty to escrow may not be waived or altered by agreement between the parties to the transaction, between the broker and the parties, or between the broker and other brokers involved in the transaction (35.322). If the money is expected to be held in escrow for more than 6 months, the broker is encouraged to deposit the money into an interest bearing account. However, most escrow accounts do not bear interest.
132. Regarding interest paid on an escrow account maintained by the broker, interest earned on an escrow account 1. is disbursed in the same manner as the principal amount unless the parties to the transactions agree otherwise. 2. does no: 132. 1. Any interest earned is held and disbursed pro-rata in the same manner as the principal unless the parties agree otherwise (35.325(c)). Brokers may deposit funds in escrow accounts earning interest, and they are encouraged to do so if money is expected to be held in escrow for more than six months.
134. A licensed broker receives an earnest money deposit from a buyer and promptly deposits it in an interest bearing account opened at a local bank in the name of the seller. The buyer is provided with the account number, verification of the deposi: 134. 3. The broker must maintain an escrow account at a bank or recognized depository designating the broker as trustee. The broker is responsible for holding the escrow deposit pending consummation or termination of the transaction (35.321) (35.325).
135. Under what circumstance may a broker deposit his or her own money into his or her escrow account? 1. Never, the broker may not commingle funds 2. After securing written permission from the Pennsylvania Real Estate Commission 3.: 135. 3. Rules of the commission permit a licensed broker to deposit personal funds into an escrow account to cover service charges assessed by the bank or to maintain a minimum balance as required by the bank (35.326 (b)).
136. During a listing presentation, the prospective seller informs the salesperson of his intent to refuse to sell the property to persons of a specific national origin group. What is the best course of action for the salesperson in this situation?: 136. 3. Both license law and fair housing law make it illegal for a broker to accept any listing on the understanding that illegal discrimination in the sale or rental of housing will be practiced. Accepting a listing on such conditions subjects the licensee to possible disciplinary action by both the Pennsylvania Real Estate Commission and the Pennsylvania Human Relations Commission (604 (a)(22)).
137. A professional businessperson that is a member of a minority group wants to rent space in a commercial office building managed by a broker. The broker quotes the prospect a higher rental rate than is quoted to non-minority prospects considering the: 137. 2. A broker who discriminates against a prospect in either commercial or residential property transactions is in violation of both the Pennsylvania Human Relations Act and the license law. The Pennsylvania Human Relations Act differs from federal fair housing law in that it covers both residential and commercial properties.
138. What are the consequences when a real estate salesperson is found guilty of violating any provision of the Pennsylvania Human Relations Act? 1. The Pennsylvania Human Relations Commission can suspend or revoke the salesperson's license.: 138. 3. Actions of the Human Relations Commission finding licensees guilty require notification to the State Real Estate Commission (604(a)(22)). 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.
139. A 55-year-old individual inquires about renting a three-bedroom single-family home that a broker has listed for rent. In response to this inquiry, which of the following actions by the broker are legal? 1. Refusing to show the property to: 139. 4. Verification of income and credit checks to determine the applicant's ability to meet financial obligations are legal and do not constitute discriminatory conduct. The broker may not refuse to rent based on the prospect's age. Anyone over the age of 40 constitutes a protected class in Pennsylvania. The landlord may not discriminate based on age by different rental terms, such as security deposits or rental amounts.
140. A housing discrimination charge must be filed with the Pennsylvania Human Relations Commission within 1. 6 months. 2. 1 year. 3. 2 years. 4. 30 days.: 140. 2. The Pennsylvania Human Relations Commission applies the same standards provided for in federal law, i.e., complaints must be filed within one year of the alleged violation.
141. A landlord has a "no pets" policy in his or 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. D: 141. 2. 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 (604 (a)(22)).
142. A Pennsylvania real estate salesperson may lawfully collect compensation for engaging in real estate activities from 1. either a buyer or a seller. 2. her or his employing broker only. 3. any party to the transaction or the part: 142. 2. License law prohibits a salesperson or associate broker from accepting compensation from anyone other than his or her employing broker (604 (a)(12)).
143. A licensed salesperson may hold an active license with more than one Pennsylvania broker under which of the following circumstances? 1. Under no circumstances 2. With the permission of his or her sales manager 3. With the writte: 143. 1. Under no circumstances may a licensed salesperson act on behalf of two employing brokers at the same time. No licensed salesperson shall be employed by any other broker than is designated upon the current license issued to the salesperson.
144. When a sole proprietor broker has his or her license suspended for two years, what effect does this have on the associate brokers and salespersons affiliated with the broker? 1. Affiliates' licenses will be revoked, subject to reinstateme: 144. 4. Salespersons and associate brokers are employed by and provide services on behalf of their employing broker. If the broker's license is suspended or revoked, licenses of the associate brokers and salespersons are terminated. To remain in active practice, the affiliates are required to find new employing brokers.
145. Once issued, a salesperson's license must be 1. carried by the salesperson at all times. 2. prominently displayed at the main office of the employing broker. 3. displayed in a conspicuous place at the office out of which the lic: 145. 3. Commission rules require that the current license of an associate broker, salesperson, associate cemetery broker, or cemetery salesperson be displayed in a conspicuous place at the office from which the licensee works (35.245(b)). A broker operating branch offices must maintain a list of all licensees at the main office with references to which branch office the license is displayed at.
146. When a salesperson applies for a real estate license, the employing broker is responsible for 1. issuing an official transcript verifying completion of the educational requirement. 2. submission of a sworn statement certifying that h: 146. 2. Rules of the commission require that the salesperson license application include a sworn statement from the employing broker certifying that the broker will actively train and supervise the applicant (35.223 (2) (i)). 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 the employing broker.
148. If an employing broker refuses to pay one of his or her licensees compensation according to the terms of an employment contract, the licensee may 1. immediately file an application for compensation from the Real Estate Recovery Fund.: 148. 4. Disputes between an employing broker and salesperson employed by the broker are contract issues to be settled in a court of law. The commission does not arbitrate such disputes. Listings are not the property of the salesperson and cannot be unilaterally transferred to a new broker, and the recovery fund is not available until all court action has been concluded.
149. Regarding a real estate salesperson's license, it 1. must be displayed in a conspicuous place at the office out of which the licensee works. 2. is issued in the name of the salesperson exclusively and may be used to represent more th: 149. 1. Current licenses of salespersons and associate brokers must be displayed in a conspicuous place at the office out of which the licensee works (35.245(b)). A licensee may work for only one broker at a time and the license is valid as soon as it is received.
150. When the employing broker submits a salesperson's license application to the Pennsylvania Real Estate Commission, the broker is certifying that the 1. salesperson is a citizen of the United States. 2. salesperson has not been convict: 150. 3. In order to be licensed as a salesperson, the candidate must submit a license application with a sworn statement from the broker certifying that the broker will actively supervise and train the applicant (35.223 (a)).
151. A broker intends to open a branch office in a neighboring town. The broker applies for a branch office license under the same name as the main office. The broker names a licensed real estate salesperson as the branch office manager. In this situatio: 151. 4. License law requires that each branch office shall be under the direction and supervision of a manager who is either the broker or an associate broker (601 (b)). A salesperson may not manage a licensed branch office.
152. A broker who maintains multiple branch offices wants to give an associate broker managing a branch office authority to directly hire salespersons or other associate brokers. Is this permitted? 1. Yes, provided that a list of all licensees: 152. 2. Only the broker has the authority by the license law to hire or employ salespersons or associate brokers. Although a branch office may be under the direction and supervision of a manager who is an associate broker, the associate broker does not have authority to directly hire or employ other licensees (603(a)).
153. What are the procedures that a salesperson must follow when the salesperson decides to terminate his or her affiliation with an employing broker and affiliate with a different broker? 1. Give the broker an official letter of termination t: 153. 4. License law stipulates that when a licensed salesperson desires to change employing brokers, the salesperson notifies the commission in writing, pays the required fee, and returns his or her current license (603 (a)).
154. An associate broker is not satisfied with her present real estate company and has decided to change employing brokers. Before the associate broker can begin actively selling for the new company, 1. the first broker must transfer the assoc: 154. 4. When licensees change employing brokers, they are required to notify the commission in writing no later than 10 days after the intended date of change, pay the required fee, and return their current license. The associate broker maintains a copy of the notification sent to the commission as a temporary license pending receipt of the new current license (603(a)).
155. When a licensed broker changes his or her place of business, all of the following are true EXCEPT 1. the commission will issue a new license immediately since the broker is already licensed. 2. the broker's license may be suspended o: 155. 1. The broker is required to maintain a fixed office, which is required to meet standards prescribed by the commission (35.242). Should the broker decide to move the location of a licensed office, license law requires the new location to be approved and licensed, and all licensees registered at the former location must make application for a new license at the new location (601 (a)).
156. An associate broker is changing employing brokers. While the change of employment forms are being processed by the commission, the associate broker may 1. represent both employing brokers until the new license is received. 2. manage: 156. 2. The associate broker may manage a branch office on behalf of the broker. When an associate broker changes employment from one broker to another, he or she 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 (603(a)).
157. In Pennsylvania, an exclusive-right-to-buy contract 1. is illegal. 2. can run for an indefinite period of time. 3. must be indicated as such in the buyer agency agreement. 4. requires the signature of the principal only.: 157. 3. 606.1 (b)(l) requires the nature of the service to be provided must be set forth in a written agreement between the consumer and the licensee. Section 608.1 establishes requirements for the written agreement. An exclusive-right-to-buy contract must be in writing and contain a specific termination date.
158. In Pennsylvania, representation agreements that obligate the buyer to pay a fee 1. must be in writing. 2. must be on specific forms approved by the real estate commission. 3. are not regulated under the license laws. 4. are: 158. 1. 608.1 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.
159. All of the following provisions are included in the Pennsylvania Real Estate Commission's rules regarding exclusive listing agreements EXCEPT 1. listing agreement must state the fee the broker expects to earn. 2. listing agreement mu: 159. 2. 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 signed by the seller who must receive a copy of the listing after signing it.
160. All of the following must appear in a written exclusive listing agreement EXCEPT 1. commission or fee to be received by the broker. 2. complete legal description of the property being sold. 3. time duration of the listing.: 160. 2. 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 real estate commission regulation (35.332). Exclusive listing contracts are required to contain the sale price, the commission expected, and the duration of the agreement.
161. A broker signs a 3-month listing agreement with a seller. The agreement contains the following clause: "If the Property has not been sold after three months from the date of this signing, this agreement will automatically continue for additiona: 161. 2. This clause is illegal in Pennsylvania, since commission rules and regulations prohibit the use of automatic renewal clauses in exclusive listing agreements (35.332 (c)(2)).
162. Certain topics must be included in exclusive listing agreements or the licensee may face disciplinary action. All of the following must be included in the listing agreement EXCEPT 1. the specified commission rate or amount. 2. the sp: 162. 3. A broker may or may not include a broker protection clause; that issue is not addressed by license law. The law requires that a definite termination date be included in an exclusive listing (604 (a)(10)). Rules of the commission require that the asking price and a specified commission rate or amount be included in an exclusive listing agreement.
163. Upon obtaining an exclusive listing, a broker or licensed salesperson is obligated to 1. set up a listing file and issue it a number in compliance with Pennsylvania Real Estate Commission Rules and Regulations. 2. place advertisement: 163. 4. License law requires the licensee to furnish a copy of the listing to all signatories at the time of execution (604 (a)(9)). Although brokers normally set up a listing file, advertise properties, and cooperate with other brokers, none of these activities are required by rule or statute.
164. Which type of listing agreement would be required to contain a statement in bold face type stating that the broker earns a commission on the sale of property during the listing period even if the owner sees the property without the aid of the broker: 164. 1. Commission rules require that an exclusive-right-to-sell listing must include specific language in bold face type that the owner will be obligated to pay the brokerage fee even if the owner sells the property without the aid of the broker (35.332 (a)(4)).
165. A broker lists a commercial property for sale. The listing 1. is required to be an exclusive-right-to-sell contract. 2. must include a cancellation notice to terminate the contract after the original term. 3. is exempt from requ: 165. 4. A commercial listing must state that money received by the broker will be held by the broker in escrow pending consummation or termination of the transaction (35.331). All listings must contain information about the existence of the recovery fund. There is no requirement that a commercial listing must be an exclusive-right-to-sell contract. The broker may not require notification to terminate the listing. Requirements governing inclusions and exclusions in listing agreements cover both residential and commercial property listings without distinction.
166. A property owner will be leaving the state for at least a year. She lists the property with a broker on an exclusive-right-to-sell basis for a term of six months. Which of the following should be included in the listing contract? 1. Autom: 166. 4. Exclusive-right-to-sell listing contracts are required to contain a statement in bold type that the broker earns a commission on the sale of the property during the listing period no matter who made the sale, including the owner (35.332 (b)). An exclusive listing may not contain an automatic renewal clause or language giving the broker authority to execute an agreement of sale. The broker may not require a cancellation notice to terminate the listing at the end of the six-month period (35.332 (c)).
167. An agreement between a rental listing referral agent and a prospective tenant must include 1. an itemized list of charges payable to the rental listing referral agent. 2. a guarantee that the purchaser will find a satisfactory rental: 167. 3. 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 (35.335). The only function of the rental listing referral agent is to furnish the prospective tenant with lists of available rental units.
168. A licensed salesperson may prepare a comparative market analysis when the 1. mortgage lender contracts with the salesperson to perform the analysis for a mortgage loan application. 2. property owner requests the analysis for purposes: 168. 3. A comparative market analysis may be performed for the purpose of determining the offering price for property when a salesperson is securing a listing agreement with the seller (201) (608.3).
169. A salesperson is discussing the possibility of listing a seller's home for sale. Before the agreement is signed, the salesperson should provide the seller information 1. about the broker's policies regarding cooperation with other brokers: 169. 1. When an initial interview takes place prior to entering into a listing, the broker must provide information about the broker's policy regarding cooperation with other brokers (608(6)). Commission rates are not determined by local custom. Automatic renewal clauses are prohibited (35.332(c)).
170. Under certain circumstances, which of the following agreements may be oral? 1. Exclusive agency listing 2. Open listing 3. Exclusive-right-to-sell 4. Exclusive buyer agency: 170. 2. A licensee may enter into an oral open listing agreement if he or she provides the seller or lessor with a written memorandum stating the terms of the agreement (35.281 (b)).
171. A property owner wants to list his property for sale with a broker but does not want to sign an exclusive listing contract. May the broker accept an oral open listing? 1. Yes, as long as the licensee provides the seller a written memorand: 171. 1. Commission rules provide for oral open listings with sellers provided certain conditions are met (35.281 (b)). Oral open listings may be used to create an agency relationship. The Statute of Frauds does not apply to listing contracts.
172. What type of listing agreement would require the broker to provide the seller with a written memorandum stating the terms of the agreement? 1. Multiple listing shared among several brokers 2. Exclusive agency listing 3. Exclusiv: 172. 4. A licensee who enters into an oral open listing agreement must give the seller a written memorandum stating the terms of the agreement.
173. When must a licensee provide statements of estimated costs to parties involved in a purchase of real estate? 1. One business day prior to closing the transaction 2. When the buyer makes formal application for a mortgage loan 3.: 173. 3. 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 (35.334 (a)).
174. How accurate are statements of estimated cost and return provided by licensees required to be? 1. As accurate as may be reasonably expected of a person having knowledge of and experience in real estate sales 2. Within 10% of the actu: 174. 1. Rules of the commission require that the estimates of costs required to be provided to the parties shall be as accurate as may reasonably be expected of a person having knowledge of and experience in real estate (35.334 (b)).
175. When a licensee provides a statement of estimated cost and return to parties involved in a transaction, the statements 1. may be provided orally to the parties. 2. must be provided on standard forms developed by the Pennsylvania Real: 175. 4. Rules of the commission require the licensee to provide written estimates of reasonably foreseeable expenses before an agreement of sale is executed (35.334 (a)). The disclosure must be made in writing on forms developed for such purpose. The commission does not mandate a standard form. Lenders provide statements to prospective borrowers, rather than both parties involved in the transaction.
176. 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? 1. Zoning classification of the property if the agreement is for a commercial bui: 176. 1. Although all four options may be important issues to address in an agreement of sale, commission rules specifically address the issue of the zoning classification. The zoning classification, unless the property is zoned for single family housing, must be included or the buyer has the option of voiding the agreement with no requirement of court action (35.333 (a)(6)).
178. Regarding agreements of sale, all of the following statements are true EXCEPT 1. licensee must furnish a copy of the sales contract to all signatories at the time of execution. 2. licensee must retain copies in their files for three: 178. 2. The broker is required to keep records relating to real estate transactions for three years following consummation or termination of the transaction. Mandatory inclusions in agreements of sale include the following: copy of sales contract given to signatories, statement regarding broker's services, and that access to a public road may require obtaining a highway occupancy permit: statute (608.2) and commission rules (35.333).
179. When are statements of estimated cost and return provided to the parties to a transaction by the broker involved in the transaction? 1. Before an agreement of sale is executed by the parties 2. One business day prior to settlement of: 179. 1. The broker must provide each party with a written estimate of reasonably foreseeable expenses associated with the sale that the party may be expected to pay before an agreement of sale is executed (35.334 (a)).
180. Statements of estimated costs and returns must 1. be signed by the seller and buyer upon receipt. 2. be an exact representation of all costs to be incurred by the party for whom they were prepared. 3. be presented to the parties: 180. 3. Statements of cost and return must be presented prior to entering into an agreement of sale. They are expected to be as accurate as may be reasonably expected of a person having knowledge of real estate sales. There is no requirement for signatures or disclosures of agency representation (35.334).
181. When a broker negotiates an agreement of sale between a buyer and seller, the broker is responsible for all of the following EXCEPT 1. furnishing a copy of the agreement of sale to both parties at the time of execution. 2. furnishing: 181. 2. There is no requirement for the broker to deliver copies to a mortgage lender. Licensees are responsible for ensuring that contracts are in writing (3 5.281 (a)), that copies are preserved for a period of three years (604(a)(6)), and that a copy of the agreement is presented to all signatories (604 (a)(9)).
182. When included as a provision in an agreement of sale, a mortgage contingency must include all of the following EXCEPT 1. type of mortgage. 2. maximum interest rate of the mortgage. 3. amount of the mortgage payment. 4. dead: 182. 3. The amount of the mortgage payment is not included in mortgage contingency clauses (35.333 (b)). If an agreement of sale is conditioned upon the ability of the buyer to obtain a mortgage, the agreement must contain the type of mortgage, the maximum interest rate, and the deadline for obtaining the mortgage.
183. All of the following are mandatory provisions of a sales contract EXCEPT 1. identifying the rate or amount of commission to be paid to the broker. 2. identifying the capacity in which the broker is engaged in the transaction. 3.: 183. 1. There is no statutory or regulatory requirement for the rate or amount of the broker's compensation to be disclosed in an agreement of sale. Mandatory provisions of an agreement of sale include disclosure to the parties regarding the role of the broker, the existence of the Real Estate Recovery Fund, and the zoning classification of property (608.2).
184. Which of the following provisions must be included in an agreement of sale? 1. Dates for payment and conveyance 2. Language relieving the seller of responsibility for defects discovered after settlement 3. Zoning classification: 184. 1. Rules of the commission provide that an agreement of sale must contain the dates for payment and conveyance, in addition to other specified items. Language addressing the seller's responsibility for defects, zoning classification of single family property, and mortgage financing language are not mandatory inclusions (35.333).
185. Which of the following is a mandatory provision in an agreement of sale negotiated by a broker between a buyer and seller? 1. Earnest money deposit to be held by the listing broker 2. Payment of the brokerage commission 3. Dates: 185. 3. Date for payments and conveyance must be addressed in the contract (35.333(a)). 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.
186. If a broker receives money belonging to another under an installment land purchase agreement, the transaction is considered consummated when 1. the buyer has been afforded the opportunity to record the agreement, unless the agreement spec: 186. 1. 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.
187. An aggrieved person is awarded a judgment against a real estate licensee for violation of the Real Estate License and Registration Act. Regarding the recovery fund, the aggrieved party 1. may immediately apply to the commission for paymen: 187. 2. When an aggrieved person obtains a final judgment against a licensee, the aggrieved party may file an application for payment from the Real Estate Recovery Fund. The maximum payment from the fund is $20,000 for any one claim (803 (d)).
188. 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? 1. One year a: 188.2. 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 (803(b)(4)).
189. The maximum compensation that will be paid from the Real Estate Recovery Fund to satisfy claims against a licensee is 1. $5,000. 2. $10,000. 3. $25,000. 4. $100,000.: 189. 4. The liability of the recovery fund shall not exceed $20,000 for any one claim and shall not exceed $100,000 per licensee (803 (d)).
190. Whenever the commission is required to satisfy a claim against a licensee with money from the Real Estate Recovery Fund the licensee 1. may continue engaging in real estate activities under the commission's direct supervision. 2. mus: 190. 2. If the commission pays an amount in settlement of a claim against a licensee, the license of that person is automatically suspended upon the effective date of payment and will not be reinstated until the licensee has repaid the amount in full plus interest at the rate of 10% per year (803 (f)).
191. 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? 1. If, at the beginning of a biennial renewal period, the balance in the fund is less than $300,0: 191. 1. 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 (802).
192. 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? 1. License is automatically suspended as of the date of payment 2. The Pennsylvania Real: 192. 1. The license is automatically suspended as of the effective date of payment when payment is made from the recovery fund. In order for the licensee to have the license reinstated, the licensee must repay the full amount plus interest at the rate of 10% per year (803 (f)).
193. Which of the following statements about the Real Estate Recovery Fund is true? 1. A buyer may apply directly to the fund to cover the cost of repairs to the property necessary because the licensee failed to disclose a defect. 2. An a: 193. 2. Commission rules provide that every agreement of sale shall contain specific language regarding the existence of the recovery fund (35.333 (a)(9)). The recovery fund is available to consumers only after they have secured a final judgment against a licensee. Licensees do not pay fees at each renewal; they are assessed an amount to be paid at the time of original license application.
194. When a person obtains a final judgment against a licensee and seeks payment from the Real Estate Recovery Fund, what is the time frame for making application for payment from the fund? 1. Within six months of the date of the violatio: 194. 2. License law provides that an aggrieved person who has been awarded a judgment by a court of competent jurisdiction must make application to the recovery fund no more than one year after the termination of the proceedings, including reviews and appeals (803 (b)(4)).
195. All of the following are true regarding the Real Estate Recovery Fund EXCEPT 1. The recovery fund does not apply to the sale of campground memberships. 2. A licensee on whose behalf money has been paid must reimburse the fund plus in: 195. 2. There is no requirement that the money MUST be repaid, it must be repaid in order to reinstate a license. If money is paid from the recovery fund on behalf of a licensee, the license of that person shall automatically be suspended as of the effective date of payment. No such license will be reinstated until the licensee has repaid the money in full plus interest at the rate of 10% per year (803(f)).
198. The purpose of the Real Estate Recovery Fund is to 1. provide a direct source of compensation to sellers if the broker mishandles escrow deposits. 2. enable the public to secure payment of uncollected judgments against licensees.: 196. 2. Every licensee is required to pay $10 into the Real Estate Recovery Fund at the time of his or her initial license application (802).
196. Any person receiving his or her initial license shall, in addition to all other fees, pay how much money into the Real Estate Recovery Fund? 1. $5 2. $10 3. $25 4. $64: 197. 4. The commission may reassess each licensee an amount not to exceed $10 if at the commencement of a biennial renewal period the balance in the recovery fund is less than $300,000 (802).
197. 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 1. during any one year, the amount paid from the fund exceeds $500,000. 2. th: 198. 2. The Real Estate Recovery Fund was created to provide a vehicle by which consumers who have obtained a final judgment against a licensee may recover compensation from the commission. Application to the fund may be made only after all reasonable remedies available have been exhausted (803).
199. A residential borrower whose loan is in default but whose property has not yet been sold at a foreclosure sale has certain rights. Under the equitable right of redemption in Pennsylvania, the borrower 1. must always pay the full outstandi: 199. 3. In Pennsylvania, a borrower may cure default in a residential mortgage loan with an outstanding balance of $50,000 or less by merely bringing the payments up to date, rather than paying the entire outstanding debt. This may be done after default but before the foreclosure sale.
200. 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? 1. $4,000 2. $6,000 3. $10,000 4. $20,000: 200. 3. 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. In addition, Pennsylvania law permits the local taxing districts to impose an additional transfer tax.
201. In Pennsylvania, certain deed transfers are exempt from the transfer tax. However, a tax will have to be paid on a transfer 1. between parent and child. 2. between government bodies. 3. between educational institutions. 4.: 201. 4. A transfer of unimproved land is subject to transfer taxes. The state tax is 1% of the full consideration paid for the property, and the local taxing bodies can levy an additional tax on the transfer. Transfers between parents and children or among siblings, between government bodies, or between charitable, religious, or educational institutions are exempt from transfer taxes.
202. Under the Pennsylvania mechanic's lien law, the claim 1. must be filed by the contractor or subcontractor within four months after the work is completed. 2. becomes a general, involuntary lien against the property. 3. can only b: 202. 1. Generally, the mechanics lien law requires the contractor or subcontractor to file a claim with the court of common pleas in the county in which the property is located within four months after the work is completed. If successful, the line is a specific, involuntary line, which may be claimed without the consent of the property owner.
203. All of the following will provide protection against the possibility of mechanic's liens being filed against property by subcontractors EXCEPT 1. mechanic' s lien insurance. 2. waiver of liens in a construction contract. 3. stip: 203. 2. A waiver of liens in a construction contract protects the title from liens being filed by the general contractor, not subcontractors. A recorded stipulation against liens, a release of liens document, and mechanic's lien insurance can all be used as a means of protecting the property against claims of subcontractors of suppliers.
204. A nonlicensed owner of a multifamily investment property collects a security deposit of $500 from each tenant entering into a one-year lease. The security deposit funds 1. must be held in an escrow account in a federally or state regulate: 204. 1. Pennsylvania law requires landlords to hold security deposits in an escrow account which must be in a federally or state regulated banking or savings institution. The tenant must be notified of the name and address of the institution where the deposits are held. Interest bearing accounts are not required until the second anniversary of the lease.
205. 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 1. not to exceed one months' rent. 2. equivalent to two months' rent. 3. one half of one: 205. 2. Pennsylvania law limits the amount landlords can charge as a security deposit. During the first year of tenancy, the maximum is an amount equal to two months' rent. At the beginning of the second year, the landlord must return to the tenant any amount that exceeds the amount of one month's rent.
206. According to the Pennsylvania Statute of Frauds, which of the following agreements must be in writing in order to be enforceable? 1. Two year lease for an apartment in a multifamily building 2. Commercial lease for a five year term: 206. 2. A lease for a term of more than three years must be written in order to be enforceable. In Pennsylvania, leases may be written, oral, or implied. The Statute of Frauds in Pennsylvania applies to leases for more than three years' duration. An oral lease for three years or less is usually enforceable.

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Number of cards 196