STATE EXAM - Pennsylvania

The Real Estate Commission conducts activities to

protect the public interest

The Commission has the authority to

promulgate Rules and Regulations

The Commission has the authority to take disciplinary action against

campground membership salespersons

The Commission can take what kind of action if the salesperson advertises a property w/o owner's permission

Suspend the salesperson license

salesperson applied for a license. Now they can

Attend the broker's sales training program

Builder-Owner Salesperson license

Does not need education requirements

Broker is responsible for

business that is conducted in branch offices

Eligible for a broker license you'll need

240 hours of education

21 years of age

pass the exam

When a salesperson owns the house they're selling

The salesperson must disclose to a prospective purchaser that the salesperson is licensed

If the salesperson is unable to collect from the employing broker a commission the salesperson earned..

the salesperson can sue the broker

A seller offers a $500 bonus to a salesperson who sells the house within 30 days,,,

The salesperson who produces a buyer cannot accept this bonus directly from the seller

Estimated statements of closing costs must

Be presented to a buyer and seller prior to their signing an agreement of sale.

When a buyer gives the salesperson a check for escrow

The check must be deposited in the brokers escrow account by the end of the next business day

When a property is advertised for sale by a salesperson, what information must be included on the ad?

Business name of the broker

The mortgage contingency must include the following

loan amount

interest rate

min. number of years on the loan

A listing in which the seller owes a commission even if the seller finds a buyer is

exclusive - right to sell (they have 5 days to cancel)

Under which circumstances can a broker deposit personal money in the escrow account?

To cover any fees for the account charged by the bank

The owner of the house does not want it to be rented with anyone who has a pet. However, the salesperson has a client who's legally blind, that uses a guide dog. What should they do?

Rent the house the client with the guide dog. Covered under the AOA- American Disability Act

A buyer was concerned about a clause(lawyer) in the agreement of sale. The salesperson, who represents the seller, told the buyer that it was not something for the buyer to worry about.

salesperson should have referred the buyer to a lawyer.

An exclusive right-to-lease agreement must include

Lease price

Duration of agreement

Commission expected on the lease

The purpose of the real estate license law is to

ensure that the public interest is protected

You've passed the salesperson exam and selected a broker to work, however your license has not yet been issued. But, your neighbor wants to list and sell his home ASAP. What should you do?

Suggest your neighbor contact the broker you've selected to work for to list his property

The broker's license will expire at the end of May. As of June 1.

The license will be inactive and the broker must cease practice on June 1 if the broker fails to renew it

To obtain a salesperson license, a person must

pass the examination

The purpose of the Recovery Fund is to enable

people to get payment of uncollected judgments against the licenses

On Thursday evening a buyer makes a offer and gives a check for $3,000.00. The offer is presented to the seller and they counteroffer. The buyer accepts the offer. on Thursday evening, How is the check to be handled between Thursday and Monday.

The broker is responsible for depositing the check by the end of business on Friday

A buyer makes an offer on a house that is listed by another brokerage company. With the offer the buyer gives a hand-money check that's payable to the selling company. What should be done with the check according to the Rules and Regulations.

The real estate company to whom the check is made payable is responsible for depositing it in its escrow account.

A salesperson has hired an unlicensed assistant. Which of the following is the assistant permitted to perform in Pennsylvania?

Hold an open house for other licenses

When does the license period for real estate licenses begin?

June 1 of even years

After the first renewal, how many hours of continuing education are required to subsequently renew?

14 hours every 2 years

When is the real estate broker permitted to place a For Sale sign on a listed property?

When the seller agrees in writing

A broker lost his license as a result of mishandling trust account funds. When, if at all may the broker apply for another real estate license?

After 5 years (license revoked)

A license was convicted of fraud in a real estate transaction. Of the following, who is entitled to collect from the Real Estate Recovery Fund?

Person who lost money because of the licensee's fraudulent actions

Who may resume that the real estate licensee is representing them?

Only consumers who have entered a writing agreement with the broker.

An authorized power of the Real Estate Commission is t

Administer and enforce the laws that govern the conduct of licensees

Pennsylvania real estate licensing laws authorize a salesperson to

Represent whomever his/her broker represents

A licensed real estate salesperson may represent:

Only the broker under whom he/she is licensed

An unlicensed individual successfully negotiated a difficult real estate transaction. The sellers promised to generously compensate the individual for his work, but later changed their minds. The individual:

May do nothing to recover the promised compensation

A broker may legally collect commissions from both the seller and the buyer when:

The buyer and seller provide prior knowledge by written informed consent

Regarding real estate brokerage fees, the fees charged:

Are the result of an agreement between the consumer and broker

The listing broker produces a buyer willing to meet the seller's terms and conditions. The seller accepts the buyer's written offer. The seller later decides not to sell the property and withdraws the earlier acceptance. The listing broker:

May sue the seller and attempt to collect the commission

All of the following would cause a broker's license to be revoked or suspended except:

Refusing to present a verbal offer to purchase one of the broker's listings

An agent's duty to disclose all aspects of a real estate transaction to their client is:

Required in the agent's fiduciary obligations to the principal

The brokerage fee charged to the seller:

Is set in accordance with the broker's office policy

How many square feet are in an acre?

43,560

In some states, the common law legal rights that a wife has in property owned by her husband during their marriage are best known as

dower

What type of land use does NOT comply with the zoning restriction for its location, but is permitted because it benefits the public?

conditional use

What is market value?

price a property is likely to bring in an arm's length transaction

What is assessment value?

value the property taxes are based on

What is an appraisal?

an opinion of value for the day of the appraisal only

What is NOT part of the secondary market?

Federal Universal Mortgage Association

In title theory states, what clause is unique to the mortgage?

defeasance

In most states, the listing broker has a fiduciary duty to the

client

According to the law of agency, a real estate broker does NOT owe the principal the duty of

offering legal advice

As an agent is showing a house to a customer, the agent notices a large vertical crack in the basement wall. What is the agent's duty?

nothing

A lead-based paint disclosure form is required for all residential dwellings built before January 1, 1978. When applicable, who must sign the form?

buyer, seller, and both agents

The listing agent is informed by the seller that the basement gets wet when it rains. The agent says nothing to the buyer. Who is liable for the failure to disclose the latent defect?

seller

A salesperson is told by his client not to disclose the fact that during heavy rains, the basement takes on water. The agent must

disclose the defect to any interested buyers

What would be considered evidence of the agency relationship between broker and buyer?

buyer-broker contract

The non-breaching party to a contract has a duty by law to

miitigate damages

The offeror is the person who

make the offer

What title insurance policy insures the holder of the right to use someone else's land?

CORRECT ANSWER: easement

easement

Complaints based on Title VIII should be filed with the

Office of Equal Opportunity

A person discriminated against under the Civil Rights Act of 1866 must file a lawsuit in what court?

federal district court

Which is NOT a protected class under the Federal Fair Housing Act?

ancestry

Who uses the term REALTIST?

members of the National Association of Real Estate Brokers

he owner/occupant of a four-unit apartment building decides NOT to rent one of his units to a woman with two children. What law has the owner violated?

No violation has occurred

Which of the following acts is a salesperson prohibited from completing without the express authorization of the employing broker?

A licensee may not advertise the sale or lease of real estate, or otherwise solicit prospective buyers or tenants for the real estate, without the authority of the seller/lessor or his/her agent. The broker of record is considered the seller/lessor's agent.

A salesperson is interested in purchasing a property recentlyoffered for sale by a seller seeking to sell her house without the assistance of a broker. The salesperson makes an offer without disclosing their license status based on his knowledge of the value of other properties in the area. The offer is accepted by the seller. Prior to settlement, the seller learns that the salesperson is a real estate licensee. In this instance, the salesperson:

The salesperson has violated license law. A licensee is required to disclose his/her license status in any transaction where he/she has a contemplated interest or an ownership interest. A licensee may take no unfair advantage over the public.

A broker assists a client in entering into an contract that stipulates that the client will occupy a property for a definite period of time in exchange for an agreed-upon amount of compensation with no ownership rights transferring to the client. At the end of this time, the client will vacate the property. The type of document that was signed is a/an:

A lease if for a specific and definite period of time, after which the lessee vacates the property, is a real estate lease.

Two weeks after a buyer and seller sign an agreement of sale, the seller defaults. The listing agreement provides which of the following remedies to the broker?

The terms of the listing agreement stipulate that the broker has earned his/her fee upon procuring a ready, able and willing buyer. The broker is unable to sue the buyer to recover his/her fee and he/she may not withhold any portion of the deposit monies. The broker may sue the seller in court to recover the fee.

A broker secures a listing and, since the seller needs a quick sale, the broker offers a $1,000 bonus to any salesperson who secures a buyer in the next 30 days. Which of the following is permitted?

A licensed salesperson or associate broker may only accept compensation from their employing broker, never directly from a cooperating broker or a seller. In addition, a broker may never directly compensate a licensee employed by another broker

With regards to property management activities, which statement best reflects the relationship between the salesperson and his employing broker?

The salesperson may not independently negotiate the terms of a lease, nor execute a lease, on behalf of the lessor.

In regards to the relationship between brokers and consumers of real estate services, a licensee employed by a broker:

Represents the consumer as the broker represents the broker

When a salesperson has been found to have violated a provision of the Pennsylvania Human Relations Act, possible consequences are:

When the Pennsylvania Human Relations Commission finds a licensee guilty of violating the provisions of the Human Relations Act, they may report their findings to the state real estate commission. The Pennsylvania Human Relations Committee does not have the power or duties to suspend a license or issue fines against a licensee.

Which of the following is a requirement regarding statements of estimated cost and return provided by licensees?

Commission rules and regulations require brokers involved in a transaction to provide the parties involved with written estimates of cost and return before an agreement of sale is executed. They should be as accurate as is to be expected of persons having knowledge and experience in the field. There is no specific form mandated or requirement that they be signed.

The duties and powers of the Pennsylvania Real Estate Commission permit the commission to exercise its authority for violations of:

The Pennsylvania Real Estate Commission has power to exercise authority for violations of the commission rules and regulations, the Real Estate Licensing and Registration Act, and the Pennsylvania Human Relations Act.

May a licensee perform services for a consumer without first securing a written agreement signed by both the consumer and the licensee?

Licensees may perform services in the absence of a written agreement with a consumer, but the licensee is not entitled to receive any compensation or fee in the absence of a written agreement signed by the consumer.

All of the following are true regarding the Pennsylvania Human Relations Act except:

does not recognize many of the exceptions that the federal law does.

A person authorized to act on behalf of another is called a(n)

agent to act on behalf of another (e.g., the principal or the client). An agent may work with a customer without working for the customer.

Two brokers get together at a breakfast meeting and decide they will each agree to work in certain geographical areas of the town. What statute has been violated?

The Sherman Antitrust Act prohibits monopolization. Price fixing and market fixing would be two examples of a violation of the Sherman Antitrust Act.

A licensee has secured her first listing contract. The licensee most likely is considered a ______ agent.

A special agent is committed to doing one thing for a client (e.g., marketing the home).

Universal Agent

A universal agent must do everything for someone (e.g., guardian)

General agent

.A general agent does more than one thing, but not everything for a client (e.g., property manager).

S & T Realty had a listing on a property. After the property sold and closed, P & M Realty asserted its rightful claim to the commission. Which type of listing did P & M Realty have?

Only the procuring broker is entitled to the commission in an open listing. If the seller finds the buyer in an exclusive agency listing, he owes no commission.

Exclusive Right to Sell Listing

In an exclusive right to sell listing, the listing broker gets paid the commission, no matter who sells the property.

Net Listing

A net listing means the broker receives whatever is left over after the seller gets the predetermined net amount.

Which of the following would terminate an agency relationship between a seller and listing broker?

Agency relationships may be terminated by an operation of law such as a foreclosure or declaration of bankruptcy

A listing broker tells their buyer client that the seller is anxious to sell because they are delinquent in their mortgage payments and do not want the property to go into foreclosure. Such a disclosure is

unacceptable because of fiduciary duties

In a listing agreement, the sales agent is described as the

subagent

The brokerage fee charged to the seller:

Is set in accordance with the broker's office policy

In some states, the common law legal rights that a wife has in property owned by her husband during their marriage are best known as

dower

What is market value?

price a property is likely to bring in an arm's length transaction

What is assessment value?

value the property taxes are based on

As an agent is showing a house to a customer, the agent notices a large vertical crack in the basement wall. What is the agent's duty?

Nothing. b/c the defect is visual

A lead-based paint disclosure form is required for all residential dwellings built before January 1, 1978. When applicable, who must sign the form?

the buyer, seller and agent

The listing agent is informed by the seller that the basement gets wet when it rains. The agent says nothing to the buyer. Who is liable for the failure to disclose the latent defect?

th