Pennsylvania State Portion Real Estate Exam Info

RELRA Real Estate Licensing and Registration Act

Statutory law enacted by state legislature and signed into law by the governor

Agency Relationship 455.201

Relationship where the broker or licensees (employed by broker)act as fiduciaries for a consumer of real estate services by the express authority of the consumer of real estate services.

Associate Broker 455.201

Broker Employed by another Broker

Broker 455.201

(1) Negotiates or aids any person in locating or purchasing, or leas interest in real estate (2)Negotiates listing,sale,purchase,exchange,lease,time share and similarly designated interests, financing or option for any real estate (3)Manages Real Estate (4) Represents self as RE consultant,counselor, agent, or finder (5)undertakes promote of sale/ to perform comparative market analysis (6) performs any above acts

Builder/Owner Salesperson 455.201

Full time employee of a builder/Owner of single and multifamily dwellings located within the Commonwealth and be authorized to list for sale, sell or offer for sale or anything owned by builder/owner employer, for or on the behalf of the builder/owner

Buyer Agent 455.201

Licensee who has entered into an agency relationship with a consumer buyer of real estate

Campground Membership 455.201

Interest, other than fee simple or by lease, which gives the purchaser the right to use a unit of real property for the purpose of locating a recreational vehicle, camper, trailer, tent, tent trailer, pickup camper or other device on periodic basis pursuant to a membership contract allocating use and and occupancy rights between other similar uses

Cemetery 455.201

Term does not include private cemetery

Cemetery Broker 455.201

Self explanitory

Cemetery Company

Self explanitory

Cemetery Salesperson 455.201

Person employed by a broker or cemetery broker to perform duties duties performed as such a person

COMMERCIAL PROPERTY 455.201

(1) Any property that is used for the purpose of operating a business, office, manufacturing facility (does not include a property with less than 5 residential dwelling units) (2) Vacant land for sale or lease or held for such purposes, (not including vacant land suitable for construction or location of less than five residential dwelling units)

Commission 455.201

The state real estate commission

Commissioner 455.201

Commissioner of Professional and Occupational Affairs

Comparative Market Analysis 455.201

Written analysis, opinion or conclusion by a contracted buyer's agent, transactional licensee, sellers agent relating to probable selling price of a specified piece of real estate in an identified market at a certain time

Consumer 455.201

Recipient of RE service

Department 455.201

Department of State acting through the commissioner of Professional and Occuptional Affairs

Designated Agent 455.201

Licensees designated by broker for something excluding other licensees within the brokers employ

Disclosure 455.201

Provision of all relevant facts, without reservation, ambiguity or distortion

Dual Agent 455.201

A licensee who acts as an agent for the buyer and seller, lesse and landlord, in the same transaction

Listing Broker 455.201

Broker engaged as seller's agent, dual agent or transaction licensee to market the property for sale pursuant to a written agreement

Principal 455.201

Consumer of real estate services who has entered into an agency relationship with a broker

Qualified Association 455.201

Corporation, Limited Liability part, or limited liability company that (1)is incorporated under laws of commonwealth or other jurisd

(2)does not hold license under this act (3)does not hold itself out to the public as providing real estate services (4)is solely owned by licensees all affiliated with the same broker

Real Estate 455.201

Any interest or estate in land including interests and time share, mobile homes count only if sale of land goes along with it

Real Estate Service 455.201

real estate services requiring a real estate license

Reciprocal License 455.201

License issued under sections 602 (a) through (e)

Rental Listing Referral Agent 455.201

A licensee who owns or manages a business that collects rental information for the purpose of referring tenants to rental units or locations.The applicant must satisfy licensing requirements that are essentially the same as for a salesperson licensee; however, the rental listing referral agent is not affiliated with a broker. This term does not include any employee or official of any public housing authority created pursuant to State or Federal Law

Salesperson 455.201

A person who conducts real estate brokerage activities on behalf of and under supervision of a licensed real estate broker, serving as a general agent of the broker.

School 455.201

Any person who conducts classes in real estate subjects but is not a college.

Seller Agent 455.201

Agency relationship between seller and broker

Standard License 455.201

Not a reciprocal license

Subagent 455.201

A licensee not associated with the client's broker but who is representing the client

Time Share 455.201

The right, to use or occupy one or more units on a periodic basis, the term unit in this definition is a building or portion thereof permanently affixed to real property and designated for seperate occupancy, Time share does not Include Campground membership

Time-Share Salesperson 455.201

A licensee who, either as an employee or independent contractor, sells time-shares under the supervision of a broker. Licensee or Broker does not have to be licensed as Time Share salesperson to sell time share

Transaction Licensee 455.201

A licensee who provides services to a consumer without an agency relationship

State Real Estate Commission created/consists 455.202

created and shall consist of the Commissioner of Professional and Occupational Affairs: (The DIRECTOR of the bureau of comsumer protection, or his designee. Three members who represent the public at large, five other persons who at time of appointment be licensed and practicing for 10yrs prior. And one other that will have been real estate or cemetery broker for 5yrs and sell cemetery for 10 yrs, all of these people appointed by Governer

State Real Estate Commission Term of Office 455.202

Term for each appointed members is five years. A majority of the members shall constitute a quorum, commission might select chairman/vice chairman and a secretary, if memebers miss more than three consecutive meetings loses his chair unless excused. They make $60 a day. With 15 days notice in advance, there is one public meeting a year in Harrisburg, Pittsburgh, and Philadelphia

Unlawful to conduct business without license or registration certificate 455.301

Yuppers

Civil Suits 455.302

No action can be taken against any person other than a licensed person who did something unlawful or not in accordance with this Commonwealth

Criminal Penalties 455.303

If you don't have a license and try to practice real estate of any kind, your first offense will be a summary offense,prisonment of no more than three months or a fee of no more than 500 dollars or both, second offense will be a fee of 2,000-5,000 or 1-2 years in prison or both

Exclusions from CP 455.303, 455.304

1. Owner of Real Estate in partnership, this extends to no more than five partners 2.Employees of public utility under provisions of Title 66 of PA consolidated Statutes(relating to public utilities) with respect to negotiating the purchase,sale,lease of property 3. Officers or employees of a partnership or corporation whose principle business is energy or mineral resources if real estate is necessary transaction for them 4.Attorney at law is present 5. Person acting as trustee under court order 6.Elected officer of banking institution 7. Officer or employee of a cemetery 8.cemetery companies 9. Auctioneer (auctioneers license act) 10. Persons employed by owner of real estate for purpose of maintaining multifamily residential property 11. Employee of banking institution

Civil Penalty 455.305

With votes of at least 5 members, penalty to a licensee who violated this act will have a penalty of up to 1,000 dollars, only after a hearing (Title two of PA Consolidated Statutes)

Powers and Duties of PA State Real Estate Commission

§ 455.401. Duty to issue licenses and registration certificates

It shall be the duty of the department to issue licenses and registration certificates to any person who shall comply with

the provisions of this act.

§ 455.402. Approval of schools

Any school which shall offer or conduct any course or courses of study in real estate shall first obtain approval from, and

thereafter abide by the rules and regulations of the commission covering such schools.

§ 455.403. Authority to examine applicants

The commission is empowered to prescribe the subjects to be tested. The department shall arrange for the services of

professional testing services to write and administer examinations on behalf of the commission in accordance with

commission guidance and approval.

§ 455.404. Power to promulgate regulations

The commission shall have the power to promulgate rules or regulations in order to administer and effectuate the

purposes of this act. All existing rules or regulations shall remain in full force and effect until modified by the commission.

§ 455.404a. Continuing education

(a) The commission shall adopt, promulgate and enforce rules and regulations consistent with the provisions of this act

establishing requirements of continuing education to be met by individuals licensed as real estate brokers and real estate

salespersons under this act as a condition for renewal of their licenses. The commission may waive all or part of the continuing education requirement for a salesperson or broker who shows evidence, to the commission's satisfaction, that he

was unable to complete the requirement due to illness, emergency or hardship. Such regulations shall include any fees

necessary for the commission to carry out its responsibilities under this section.

Continuing Education

14 hours mandatory every two year license period, all education should be approved by commission

Inactive License

Not Placed inactive no more than 5 years, must show evidence of 14 hours continuing education in order to reactivate license, procedure and fee for activating, if not activated after five years must take exam again

455.405

Repealed

Administration and Enforcement 455.406

Comission shall have power to administer and enforce the laws of commonwealth relating to; 1.Those activities involving real estate for which licensing is required and require its agents to bring prosecution in unlawful activities 2. Activities involving cemeteries and c.companys for which registration is requires and prosecuations '' '' ''

3.Involving Campground memberships for which licensing is required under this act and to instruct and require its agents to bring prosecutions for '' '' ''

Fees 455.407

All fees under this act fixed by comission, with accordance with the act if June 25, 1982 aka "Regulatory Review Act"(PL633 No.181) could be increaded if effort not met

Reports to legislative committees 455.408

(A.(Comission shall submit annually a report to the Professional Licensure Committee of the House of Reps and to the Consumer Protection and Pro Licensing Comittee of the senate a description of complaints

B. Comission shall also submit anually to the House of Reps and the Senate Appropriations Comittee, 15 days after the Governer has submittes his budget to the General Assembly. a copy og the budget to the general asembly, a copy of budget request for the upcoming fiscal year which the comission previously submitted to the dept

455.501 Reputation; Inactive Licensee

Licensees shall be trustworthy blah blah, inactive status for over five years must re examination, anyone who has had revoked must wait five years

Brokers License Qualifications 455.511-12

Be at least 21, high school grad or equivalent, completed 240 hours in real estate instruction, be in real estate for three years or other satisfactory education....Application for license must be in writing, state place of business applying to, and must be within three years since date of examination.. this is for corp or partnership

Salespersons license qual 455.521

Should be 18 years of age, completed 60 hours in real estate instruction in areas of study. App for licensure, send in app with brokers sworn word and should be within 3 years of passed exam

Cemetery licensure qual 455.531

Be 21 years of age, worked in cemetery for three years priot, within three years of exam ination, have 60 hiours of real estate study

Builder-owner salesperson license 455.552

be 18, applicant shall be employed by a builder owner, needs to send in application and sworn statement by builder-owner in which emplyed within three years of exmanination

Rental Listing Referral Agent License

applicant not be associated with broker but same as real estate

Campground Membership Salespersons License Qualification 455.581

a.)be at least 18 years of age b.)Studies 15 hours in 1.basic contract laws 2. Sales practices and procedures 3. Sales ethics 4. Basic theory campground ethics and c. 30 days of training

For application for license, a. send in app b.subit sworn affidavit by broker c. license renewed biennially d. commission shall establish app fee and renewal fee

Time-share salespersons license qualification 455.591

a. be at least 18 years of age b. 30 hours of instruction in (contract law, sales procedures,practices and ethics, theor of time sharing) c. 30 days on site training APP for license, a.)app sent in, submit sworn statement by broker, license renewed biennially, commission and renewal fe

Duties of licensees

In maintaining offiices, if office moves must submit stuff ten days before move

Reciprocal license for broker, cemetery and campground

Reciprocal license should be similar to license held in this state, a reciprocal license shall be issued with the commission of an app/copy of currant license/statement from applicant(saying they are not a criminal,agrees to go with regulations and has reviewed it,disclosure)/payment of fee/consent to service

The commission shall publish annually in PA bulletin, a list of states offering/not offering reciprocal licenses

A. A reciprocal licensee same rights except, cant be member of comission, exemot from 404.1,501(b),513,533 and exempt from taking/passing exams

Employment of associate Brokers, salesperson 455.603

A broker or salesperson cannot be employed by two places, if going to change need to notify commission get a new license, pay the fee, same for campground memb. salesperson

Prohibited acts

1. Misrepresentation of any kind 2. untruthful advertising 3. 608e 4. waiting three years or more to consumate license 5. Acting for more than one party or advertising w/out consent 6. Failing to furnish copies of papers or specify definite termination date 7.Accepting comission for from anyone who did any of those things or paying anyone other than employed licensees 8.Failing to disclose things, or have been a felon 9.undisclosed commission 10. PA Humans Relations Act (discrimination) 11. If przes in relation to viewing fair market value showed not suggessted retail 12. Violating section 602,606,607,609

455.605 Promotional Land Sales; Approval

A. Register for approval and comply with restrictions unless exempt, promo is over 25 acres, not less than 50 lots B Unless prior approval has been met, or promo plan is registered with Dept. of housing and urban development pursuant to the Fed. State Interstate Land Sales Full Disclosure Act or pursuant to State Law, statement of recorde shall contain, 1. Name/adress of each person w/ interest 2. legal description 3. Statement of condition of title 4. statement of gen terms and conditions 5. present access to prop 6. statement of encumbrance 7. copy of articles of incorporation 8. copies of deed 9. copies of forms of conveyance 10. copies of instruments creating easements 11. financial statements12. other info 13. consent to submit jurisdiction

Relationships between brokers and consumers of real estate services 455.606

Broker may act in real estate transaction same as licensee, do dual agency, licensee may be agent to buyer/tenant or seller/landlord

Duties of licensee

1.Real estate dosclosure act 2. provide consumer with info 3.disclosure 4. to advise consumer tasks that must be done 5.present all offers in a timely manner 6. Must report to the comission w/in 30 days of forming or joining a quialified assoc. the following, (name of assoc., names of owners, jurisdiction, date of qualified assoc. changes in ownership)

When terminated cannot disclose info except

When disclosed to another licensee or broker, preventing a crime or protecting an innocent party

Duties of sellers agent

be loyal to the seller and to find a buyer

duties of buyers brokers

to be loyal to the buyer, make an effort, and to disclose info

Duties of dual agent

take no action adverse to one party, find a buyer for the property, find a property for buyer(can fnid alternative properties not owned by the seller and may also show property to other buyers without breaching the buyer)

Duties of designated agent

may designate licensee to buyer or may be dual agent, protect info, be loyal to principal,effort, disclose info

Duties of transaction licensee

should not be provided with confidential information, provide limited confidentiality. Not provide any info about agreed financing other than what was agreed upon

Initial Interview

Disclosure of the relationships in which the broker may engage with the consumer, statement informing buyers/sellers that they may have an agency relationship, statement of the right to enter agreement, statement identifying possibility of broker providing services to another consumer/ designate one or more licensees, statement of policies, statement that the buyers broker may get a piece of the purchase price, brokers fees are negotiable, Real estate recovery fund, duration of relationship is negotiable, any sales agreement must contain zoning classification of a property

Right to cancel purchase of time share/campground membership

Purchaser has the right to cancel membership of time share or campground membership until midnight of the fifth day following the date on which the purchaser executed the purchase contract, within ten days (after receipet of cancellation) they get refunded

Hearings held by commission

No license revocation unless there is a hearing and the person had knowledge of the illegal act

Real Estate Recovery Fund (Establishment/funding)

does not apply to sale of campground membership, there is a renewal fee of $10 for licensees that goes to the real estate recovery fund, if the balance is less then 300000 then there may be an additional fee to bring it up to 500000