State Exam

How many routine inspections may the Commission do each year?

No more than 4 routine inspections

What is the maximum fine the Commission can for a civil penalty?

Up to $1000, only after affording the asscued party the opportunity for a hearing

The commission shall have the power to administer and enforce the laws of the Commonwealth relating to

Activities involving real estate for which licensing is required under this act and to instruct and require its agents to bring prosecutions for unauthorized or unlawful activities

Acitivities involving cemeteries and cemetery companies for which registration is required to bring prosecutions for unautrozied or unlawful activities

Activities involving campground memberships for which licensing is required under this act and to instruct and require its agents to bring prosecutions for unauthorized or unlawful activities

How many people are in the real estate commission

11

The commissioner of professional and occupational affaits

The director of the bureau of consumer protection

Three members representing the public at large

Five other persons (real estate broker)

One person (cemetery broker)

What is the term of office for each member of the real estate commission

5 years

Broker

Negotiates with or aids a person in locating or obtaining for purchase, lease or acquisition

Negotiates the listing, sale, purchase, exchange, lease, time share and similarly designated interests financing or option for real estate

Manages real estate

Undertakes to perform a CMA

How many years does a broker have to apply for licensure after passing the exam

3 years

Requirements for the broker exam

Must be 21

Be a high school graduate

3 years of experience as a licensed salesperson

Complete 240 hours of credits

Pass the broker exam

Where should a broker deposit money that the broker receives belonging to another

Into an escrow account

Where should the escrow money be deposited into

A Federally or State-insured bank or depository to be held pending consummation of the transaction

An escrow account shall

Be maintained in a Federally or state-ensure bank

Designate the broker as the trustee

Provide for the withdrawal of funds without prior notice

Be used only for escrow purposes

A broker who is a sole proprietor or broker of record may give WHO permission to deposit money into an escrow account

an employee with written permission

A broker who is a sole proprietor or broker of record may give WHO permission to withdrawal money into an escrow account

a licensed employee with written permission

If money is held in escrow for more than 6 months what is recommended?

is it place in an interest bearing account (interest is dispersed pro rata)

Where does a broker deposit escrow rents as a property manager?

In a separate rental management account

If a dispute arises between the parties to a real estate transaction over entitlement to money that is being held in escrow by a broker, what does the broker do?

retain the money in escrow until the dispute is resolved (if resolution appears remote without legal action, following 30 days notice to the parties, the broker can petition county court having jurisdiction in the matter to interplead the rival claimants)

What records (dates) must be included in the escrow records?

Date received, date deposited, date withdrew

Exclusive Agency

A type of listing agreement where a property owner gives one agent the exclusive right to sell their property, but retains the right to sell it themselves without owing a commission to the agent.

Exclusive right-to-sell

type of listing agreement in real estate

the property owner grants a single real estate agent the exclusive right to market and sell the property

ensures that the agent receives a commission regardless of who sells the property

What must an exclusive listing agreement include

Sale or lease price

Commission, or fees

Duration of the agreement

In the case of an exclusive right-to-sell, a statement in BOLD that the broker earns a commission of the sale during the listing by whoever finds a buyer

What can an Exclusive listing agreement NOT contain

A listing period over 1 year

An automatic renewal clause

A cancellation notice to terminate the agreement at the end of the listing set forth in the agreement

Authority of the broker to execute a signed agreement of sale or lease for the owner or lessor

An option by the broker to purchase the listed property

Authority of the broker to confess judgment against the owner or lessor for the Commission in the event of a sale

Can a brokers duty to escrow be waived or altered by an agreement between the parties

No, a brokers escrow duty cannot be waived or altered

What must a licensee do who sells their own real estate

disclose that he is a real estate licensee in advertisements for the property (does not apply if it is listed with a real estate company)

A licensee may not participate in a real estate transaction involving property in which he has an ownership interest unless

he first discloses his interest to all parties concerned

An advertisement from a broker about “sales volume” or “production” shall refer to what?

only closed transactions (listing sold or a sale made after a fully executed deed is delivered)

An advertisement by a broker about production in the “market” shall what?

identify the municipality that the market comprises

A broker or cemetery broker shall retains records pertaining to real estate transaction for how long?

3 years

A broker or cemetery broker shall retains records pertaining to real estate transaction for three years, except for the following which shall be retained for 6 months

the acknowledgment portion of the consumer notice applicable to the sale or purchase of real estate when there is not a real estate transaction

A listing agreement may not exceed how long?

One year

An aggrieved person is required to show _____ for the Real Estate Recovery Fund

he is making said application no more than ONE year after the termination of the proceedings

How many hours of continued education are required and for how long?

14 hours of CE every two years

A license which has been placed on inactive must document

14 hours of CE

Any person who remains inactive for a period of 5 years must

submit to and pass the examination pertinent to the license for which the person is reapplying

For a broker, courses shall have been completed within how many years of completion of the broker exam

10 years

When a licensed salesperson or associate broker desires to change his employment from one broker to another how long do they have to notify the commission

No longer than 10 days after the intended date of change, pay the fees, and return his current license

Within how many days after the receipt of a notice of cancellation, do all payments made under the purchase contract have to be refunded and an acknowledgment that the contract is void shall be sent to the purchaser

10 days

What is the penalty for a first offense

Fines no more than $500 and/or imprisonment no more than three months

What is the penalty for a second offense

Fines no more than $5000 but no less than $2000 and/or imprisonment no more than 2 years but not less than one year

What classifies harrasment?

such frequency as to amount to clear harassment of the owner or other person who controls the sale of the real estate (daily mail)

A broker, cemetery broker, or rental listing referral agent shall maintain a main office where

in this Commonwealth UNLESS he maintains a main office in another state where he holds the equivalent of a standard license

A broker or cemetery broker shall maintain a list of ________ employed or affiliated with the broker or cemetery broker at the branch office out of which each licensee works

licensees

What should be displayed prominently and in permanent fashion outside the office in this Commonwealth?

The business name of the broker or cemetery broker

The office of a broker shall be devoted to the _____ of real estate and be arranged to permit business in ______

transaction, private

If the office of a broker is located in a private residence, what is needed?

the entrance to the office shall be separate from the entrance to the residence

An ad by a broker about the amount of offices that he operates shall refer only to what?

those offices that have been issued branch office licensees by the Commission

Open Listing Agreements/Nonexclusive buyer agency agreements

may be oral if the seller/buyer is provided with a written memorandum stating the terms of the agreement

What is required at the Initial Interview?

a disclosure of the relationships in which the broker may engage with the consumer. The disclosure shall describe the duties that the broker owes in each relationship

a statement that a real estate consumer has the right to enter into a negotiated agreement with the broker limiting the activities or practices that the broker will provide for on behalf of the consumer and that the fee and services to be provided are negotiated

A statement of the broker’s policies regarding cooperation with other brokers, including the sharing of fees

Purpose of the Real Estate recovery fund and the number

A statement that any sales agreement must contain the zoning classifications

What must be given at the Initial Interview regarding the Real Estate Recovery Fund?

the purpose of the Real Estate Recovery Fund and the telephone number of the commission at which further information may be obtained

An Agreement of Sale must include

the zoning classifications of the property

A statement about the Real Estate Recovery Fund

A provision that payments of money received by the broker will be held in an escrow account

An agreement between a broker and a principal shall include

a statement that the broker’s fee and the duration of the contract have been determined as a result of negotiations

a statement describing the nature and extent of the broker’s services to be provided to the seller/landlord or buyer/tenant and the fees that will be charged

Notification that a Real Estate Recovery Fund exists

Notifications that payments of money received by the broker will be held in an escrow account

What are the aspects of the Consumer Notice process

Licensees shall provide the consumer with the Consumer Notice at their initial interview

Licensees shall retain a copy of the signed/refused acknowledgment for 6 months and provide the consumer a copy of the entire disclosure summary

The disclosure summary must be titled “Consumer Notice” and must be in the specific format

An ad placed by an associate broker, salesperson, cemetery associate broker or cemetery salesperson must include what in equal size

The business name and telephone number of the employing broker

What must be bold face in the agreement of sale (if included)

A provision relieving the seller from responsibility for defects involving the sale property, or a provision requiring the buyer to execute a release to that effect at the time of settlement

A provision reserving to the builder-seller the right to change, or depart from, the building specifications for the sale property

Within how many days following the death of a broker does the deceased broker’s estate have to notify the commission that the estate has appointed another licensed broker

15 days

What rules does the newly appointed broker need to know (after death)

New listing agreements may not be entered into

Unexpired listing agreements may be promoted unless the seller or lessor elects to cancel the agreement (automatically expire 90 days after the broker dies and may not be renewed)

Pending agreements of sale or lease may proceed to consummation

When should a broker deposit escrow money into an account

by the end of the next business day following its receipt

Which of these is for a broker

21

240 Hours

3 Years as a salesperson

Broker Exam

Which of these is a salesperson

18

75 hours of credits

Salesperson exam

Which of these is a Cemetery Broker

21

60 hours of credits

3 Years as a salesperson or cemetery salesperson

Sales exam

Which of these is a Cemetery Salesperson

18

No hours of credits

No exam

Which of these is a builder-owner salesperson

18

No hours of credits

Sales exam

Which of these is a Rental Listing Referral Agent

18

60 hours of credits

Sales exam

Which of these is a Time-share salesperson

18

30 hours of credits

No exam

Which of these is a camp-ground membership salesperson

18

15 hours of credits

No exam