PA Real Estate State Portion

RELRA

Real estate licensing and registration act - the commission is responsible for administrating and enforcing rules found in RELRA as well as supervising all activities

RELRA comission members:

appointed by the Governor for 5 year terms. meet on regular basis as needed, but conduct at least one public meeting in 3 cities

Corporeal

right of ownership in material things, something tangible such as a building

Incorporeal

rights to property having no physical existence. something intangible such as mortgage

freehold

estate, or ownership interest that has indefinite duration but that lasts at least as long as the lifetime of present title holder

Rental Listing Referral Agent

person who owns or manages a business which collects rental info for purpose of reffering tenants to rental units

To become a broker, you must:

have worked as a licensed salesperson for at least 3 years

After passing salesperson/broker exam, you have _ years to apply for license:

3 years

To renew your license, you must take __ hours of continuing education classes every two years, ALL education should be approved by commission

14 hours

Your license can stay inactive status for hour many years until you will need to retake the exam?

5 years

If you wish to change employers, you must:

notify the Commission no later than 10 days after the change of employment, pay fee, surrender current license and wait for new one

what must be prominently displayed at a brokers' office?

Brokers license, along with license of all salespeople

Each office must be under the supervision of a?

manager who is either a broker or associate broker

Can a salesperson work for more than one broker?

NO - cannot work for anyone other than the broker on your license

if you do not receive your new license within 30 days,

it is your responsibility to notify the commission

how long do you have to preserve real estate transactions for?

3 years

cannot take any disciplinary action against you without first giving you the:

opportunity to be heard, a hearing set by the commission

some penalties from the commission:

suspension of license, revocation of license, impose fine not to exceed $1,000

Real Estate Recovery Fund

fund used to compensate victims of fraud, misrepresentation by salesperson or broker. Max comp of 20k per claim, 100k per licensee

Payments of money to a broker must be held in?

escrow until the sale done

an exclusive listing agreement may not exceed:

1 year

when should you provide the consumer with the consumer notice?

at the initial interview. shall also retain copy of signed acknowledgement for 6 months and provide consumer copy of disclosure summary.

Escrow

most RE transactions involve the use of escrow. escrow involves the deposit of funds, a deed, or other legal instrument with a third party until completion. escrow officer is usually an attorney, closing agent or title agent

brokers must deposit moneys and property belonging to others, in a separate fund account by:

end of the business day following their receipt. must be must by the broker until completion

broker's escrow duty may:

NOT be waived or altered by any agreement between ~anyone~

escrow account shall:

maintained in a insured bank, designate broker as trustee, provide for the withdrawal of funds without prior notice, only be used for escrow purposes

if money is expected to be held in escrow for more than 6 months:

the broker is encouraged to deposit money into an interest bearing account. the interest earned in account shall be held and disbursed pro rata, in the same manner as the principal amount, unless the parties direct otherwise by agreement. Broker may not claim interest earned unless broker is a lessor

a broker or salesperson who is selling or leasing his own real estate:

shall disclose his licensed status to a prospective buyer or lessee before enter into an agreement of sale or lease

an ad by a licensee for the solicitation, sale or offering for the sale of real estate that employs lotteries or contests that offer prizes or gifts:

must have description of each prize, prerequisites for receiving each prize, limitation on the number of prizes, market value of each, and odds of winning each

an ad by a broker about "sales volume" or "production" shall only refer to:

closed transactions. also identify what market the transactions are comprised of

an ad by a broker about the number of offices they operate:

shall refer to only the ones that have been issued branch office licenses by the commission

RELRA also governs:

promotional land sales and requires any person to register with the commission for approval, and comply with such restrictions and commission. application must give detail and sales must give propspective purchaser an offering statement

A broker must prominently display ... in the office?

Broker's license along with the license of all salespeople working for the broker

the commission could impose a fine, suspend, or revoke your license if you fail to keep real estate records for at least ... years

3 years

After a disciplinary hearing, a report must be submitted to the Commission after which time the Commission may do any of the following, except?

Arrest the licensee

In addition to the penalties the Commission may impose under the authority found in Section 455.604 of RELRA, an additional civil penalty of up to $1,000 may also be ordered pursuant to the authority found in Section 455.305. That section allows the additional penalty to be imposed by a vote of any of the following, except?

The three oldest members of the Commission

A broker shall not ............deposits or other escrows or property of another person with the broker's own funds or property.

Commingle

You must have worked as a licensed salesperson for ............years, or have the equivalent education and/or experience as determined by the Commission, to take the Broker's exam.

3

If a broker receives a security deposit belonging to another under a lease agreement, the broker's duty to pay over the deposit shall arise?

When the tenancy ends

In order to renew your real estate salespersons license, you must take ............ hours of Commission approved continuing education classes every two years.

14

If you change employers, you must notify the Commission no later than ............ days after your change of employment.

10

Each member of the commission other than the Commissioner of Professional and Occupational Affairs shall receive reimbursement for reasonable expenses in accordance with Commonwealth regulations and per diem compensation at the rate of $_______ per day for the time actually devoted to the business of the commission.

$60

A real estate broker may represent both the buyer and the seller in the same transaction if the dual agency is _____

disclosed IN WRITING to both parties

The only disclosure that must be presented to consumers in a specific form required by the Commission is the _____

Consumer Notice. the purpose is to inform the permitted business relationships. must be signed by consumer

Before the buyer signs the agreement of sale, he/she must

acknowledge receipt of the property disclosure statement

A licensee must give notice of his/her ownership interest in a real estate transaction _

at the outset of the transaction

The Commission may inspect a real estate office no more than

4 times a year

The Commission or its representative may conduct office inspections

during regular business hours

When conducting an office inspection, the Commission or its representative may NOT inspect

the employees' personnel records

A broker who wishes to open a branch office must ____

obtain a branch office license

If the broker decides to delegate mgmt of a branch office, the person who assumes the duties must be a(n)

associate broker

When a broker changes his/her business address, a change of address must be submitted to the Commission by

the broker and ALL licensees working in the office

According to RELRA, a licensee may delegate agency to a subagent

with the principal's written consent

Under RELRA, a seller's agent is NOT required to

seek additional offers after a sales agreement is in place

A licensee who does not have an agency relationship with either party is known as a

transaction licensee

A broker's written records of escrow accounts must include

- the name of the party to whom the money belongs to- the dates money is received, deposited, and withdrawn- the name of the party from whom the money is received

Buyer Brit asks his broker to hold his earnest money check until his offer is accepted. This may be done ____

with the written permission of both the buyer and the seller

A broker may delegate authority to make withdrawals from an escrow account to

a licensed employee only

One difference between the PA Human Rights Act and federal law is that PHRA prohibits discrimination on the basis of

age

Under the PA Human Rights Act, a person belongs to a protected class if he/she

uses a support or assistance animal

The offering statement given to prospective purchasers under a promotional land sale plan must include information about

- nearby recreational facilities- public transportation and utilities- a detailed description, price and terms of the offer.

The offering statement given to prospective purchasers under a promotional land sale plan is NOT required to include information about

zoning restrictions

The duties of the Real Estate Commission include

*holding hearings regarding complaints against licensees*holding public business meetings*producing an annual report on complaints and their resolutions

Powers of the Real Estate Commission

*passing rules and regulations to implement the license law*issuing licenses*setting fees

An individual may bring a complaint against a licensee by filing the appropriate form with the

Dept of State's Legal Office

If a licensee's conduct is investigated and disciplinary charges are filed, the licensee must respond to the allegations within

30 days

The purpose of the Real Estate Recovery Fund is to provide compensation to

persons who win a judgment against a licensee.

The Real Estate Recovery Fund is funded by

fees paid by licensees at initial licensure and at renewal

An individual who has won a judgment against a licensee may petition the court for payment from the Real Estate Recovery Fund

after exhausting all attempts to get payment from the licensee

A person who holds a real estate salesperson license who wishes to sell timeshares

is NOT required to obtain a timeshare salesperson license.

A person who is licensed as a broker or salesperson in another state may obtain a PA license by submitting an application and ___

passing the PA portion of the license exam.

In PA, a brokers license may be issued to a(n) ____

individual, corporation, partnership, or association.

A real estate broker or salesperson license is issued for a period of ___ years.

2

A licensee whose license has been on inactive status for LESS than five years may reactivate the license by ____.

completing 14 hours of edu and paying fees.

When a licensee transfers from one broker to another, the licensee must ____.

send his/her license back to the Commission

When a salesperson is found guilty of violation of the license law, the Commission may take disciplinary action against ____.

both the salesperson and the broker

If a licensee's license is revoked, he/she may petition for a new license _____.

after 5 years.

Any advertising placed by a licensee must include the employing broker's _____.

business name and phone number

A licensee selling his/her own property must include his/her status in an ad _____.

unless the property is listed with a real estate company.

Real Estate advertising on the Internet must include

*the name of the company as it appears on the license*the jurisdiction where the licensee's license is held.*the city and state where the licensee's office is located.

A licensee may receive compensation from a broker other than the employer

Under NO circumstances

In a cooperative transaction, a broker may pay compensation to

the cooperating broker

A licensee may pay a referral fee to an unlicensed person _____

under NO circumstances

In order to place a "For Sale" or "For Rent" sign on an owner's property, a licensee must have _____

the owner's written permission.

Under RELRA, a listing agreement must include

a definite termination date

Licensees who are buying or selling property on their own behalf _____

must disclose their license status

in the event that a licensee cannot give a consumer the written Consumer Notice in an initial face-to-face meeting,

the licensee must provide an oral disclosure and proceed under the rule.

Jack is a PA licensee. He represents Carter in a transaction. Rachel is the other party to the transaction. Can Jack keep both parties informed about the transaction?

Yes, he can keep both parties informed about the transaction.

Wally is a PA licensee. He's planning to purchase a house with several acres of land from seller Seth. Based on Wally's expertise, he believes the property is being underutilized and plans to divide the land into several separate lots to sell off individually. What does Wally need to disclose to Seth?

Wally must disclose his true intention related to the property.

Timothy is applying for a timeshare salesperson's license in PA. To apply, which of the following requirements must he meet?

Timothy must complete at least 30 days of on-site training at a timeshare facility. (Qualifications: 18+ yo, 30 hours of coursework, and 30 days of on-site training

Which of the following documents does a PA Broker need to retain for three years? Consumer Notice, Expired Listing Agreement, Sub-Agent Agreement, Transaction Licensee Agreement

Expired Listing Agreement

The best time for a seller's agent to disclose his/her agency relationship to a potential buyer is when ____

the buyer shows serious interest in a property. (At the latest, it must be disclosed when a written offer is submitted)

In order to be regulated under laws and rules related to promotional land sales, a property must consist of at least ___

50 lots or shares or 25 acres

Possible penalties for fair housing violations

$16,000 for first offense- $37,500 for second offense within five years- $65,000 for third violation within seven years

All of the following must satisfy an education requirement prior to licensure EXCEPT

CEMETERY SALESPERSONS. A cemetery salesperson is employed by a broker or a cemetery broker for the exclusive purpose of the cemetery lot sales. No education or examination is required for this license.

Amount of notice that the Commission will provide licensees when time comes to renew their licenses.

2-3 months before

You must submit a sworn statement by the broker with whom you will be affilliated certifying that the broker will actively:

supervise and train you

Unless otherwise agreed, a licensee owes no duty to conduct an independent ___________ of the property and owes no duty to verify the accuracy or completeness of any representation made by a consumer so long as it is considered to accurate and reliable.

inspection

After a commission hearing has taken place, a licensee's license status:

Revocation or suspended status

You must provide a copy of any real estate contract to all signatories:

at the time of execution