RePA_Sales_S PA Salesperson State Exam Questions and Answers

According to49 Pa. Code § 35.288under"Reporting of Crimes and Disciplinary Actions", all licensees in Pennsylvania arerequired to notifythePennsylvania Real Estate Commissioninwritingwithin30 daysof any felony or misdemeanor conviction.

A licensee doesnotautomatically lose their license upon conviction, but theCommission will reviewthe case and may takedisciplinary actionsuch as suspension or revocation of the license.

Failing to reportthe conviction within the required time mayresult in additional penalties.

Immediate license surrender (Option A)isnotrequired.

Discussing with the broker (Option B)is not a sufficient step since theofficial duty is to inform the Commission.

Terminating all activities (Option D)is not an automatic requirement unless theCommission suspends or revokes the license.

UnderThe Fair Housing Act (42 U.S.C. § 3604) and The Americans with Disabilities Act (ADA) (42 U.S.C. § 12101),a salesperson must treat a person with a disability the same as any other prospective tenant, without discrimination.

The salesperson should focus on the client’s housing needs, such as apartment size and features, rather than their disability.

Landlords cannot charge an extra security deposit for service animals.

The person is not limited to disability-specific housing; they can rent any unit they qualify for.

Why the other answers are incorrect:

Option A (Search for Pet-Friendly Apartments):Service animals are NOT pets, so pet restrictionsdo not apply.

Option B (Charge Extra Deposit):Thisviolates fair housing laws; extra deposits for service animals are illegal.

Option C (Limit Options to Disability-Specific Housing):Clients with disabilitiesmust be shown all available housing, not just disability-specific units.

Under49 Pa. Code § 35.324 (Handling of Deposits and Escrow Money), all earnest money deposits must be promptly transmitted to the employing broker for deposit into an escrow account.

A salesperson cannot hold earnest money or maintain an escrow account on their own.

Brokers are responsible for ensuring that all escrow funds are properly handled and protected from commingling.

Why the other answers are incorrect:

Option A (Salesperson Holding Escrow Funds):Salespersons are prohibited from maintaining independent escrow accounts.

Option C (Holding Funds for 3 Days):Earnest money must be turned over to the broker as soon as possible; salespersons cannot hold it for any period.

Option D (Returning to Buyer for Transmission):Earnest money must go directly to the broker, not back to the buyer.

Before advertising, showing, or offering any property, areal estate licensee must obtain written authorization from the property owner. This is a legal requirement to ensure that the licensee has the right to represent the property.

49 Pa. Code § 35.331 (Written Agreements Generally)states that a real estate licenseemusthave a written agreement with the property ownerbefore performing any real estate services, including advertising and showing the property.

49 Pa. Code § 35.332 (Exclusive Listing Agreements)further clarifies that exclusive agreementsmust be in writingand signed by both the owner and broker.

Without the owner's written consent, a licensee could be subject to penalties or disciplinary action from the Pennsylvania Real Estate Commission.

Why the other answers are incorrect:

Option A (Preliminary Appraisal):Licensees are not required to conduct appraisals unless they are certified appraisers.

Option C (List of Clients):There is no requirement to provide a history of past transactions before listing or advertising a property.

Option D (Comparative Market Analysis - CMA):A CMA is useful for pricing but isnot required before advertising or showing a property.

Under49 Pa. Code § 35.284 (Disclosures of Business Relationships),the Consumer Notice defines five types of permitted relationships between real estate licensees and consumers:

Buyer’s Agent– Represents the buyer and has a fiduciary duty to them.

Seller’s Agent (Listing Agent)– Represents the seller and has a fiduciary duty to them.

Designated Agent– A brokerage firm designates different agents to represent buyers and sellers in the same firm without creating dual agency.

Dual Agent– A licensee represents both the buyer and seller in the same transaction, with mutual consent.

Transaction Licensee– A real estate licensee who provides services but does not represent either party as an agent.

Why the other answers are incorrect:

Option A (Rental Agent):"Rental agent" is not a defined relationship in Pennsylvania law.

Option B (Buyer & Seller Sub-Agent):Sub-agency is no longer common and is not a required disclosure.

Option D (Designated Dual Agent):Dual agency and designated agency are separate concepts.

Under49 Pa. Code § 35.326 (Escrow Accounts and Interest),interest earned on escrow accounts belongs to the party or parties as determined by the terms of the contract or agreement.

A broker cannot personally benefit from interest earned on escrow funds unless the contract explicitly allows it.

The purchase agreement must specify how the interest is handled, whether it is payable to the buyer, seller, or split between parties.

Why the other answers are incorrect:

Option A (Payable to the Broker):A broker cannot keep interest from an escrow account unless agreed upon in writing.

Option B (Equally Divided Between Buyer and Seller):Interest division is not automatic; it must be outlined in the contract.

Option C (Equally Divided Between Brokers):Brokers do not have rights to escrow interest unless explicitly agreed upon.

Under49 Pa. Code § 35.201 (Definitions), property management activities that include leasing, collecting rent, and negotiating lease terms require a real estate license unless the individual is directly employed by the property owner.

If a property manager is conducting leasing or rental activities for multiple property owners, they must be licensed and supervised by a broker.

The law ensures that individuals managing properties for others operate under proper ethical and legal guidelines.

Why the other answers are incorrect:

Option A (Certification for Property Management):No separate property management certification is required under Pennsylvania law.

Option B (Separate Exam for Property Management):A separate exam for property management is not required.

Option C (Ongoing Property Management Courses):Continuing education is required for license renewal, but specific property management courses are not mandatory.

Under49 Pa. Code § 35.291(Reporting of Crimes and Disciplinary Actions), a real estate licensee may face disciplinary action for engaging inunethical conduct, fraud, or incompetence. One of the reasons listed ishabitual intoxication or drug addiction, as thisimpairsthe licensee’s ability toproperly conduct real estate activities.

A felony conviction (Option D - Incorrect) does not automatically result in disciplinebut is reviewed by the Commission.

Failure to pay taxes (Option C - Incorrect) is a federal issue, not a licensing violation.

Car insurance (Option A - Incorrect) is unrelated to a real estate license.

Under49 Pa. Code § 35.382 (Continuing Education Requirements),a Pennsylvania real estate licensee must complete at least 14 hours of continuing education (CE) during each two-year renewal cycle.

These courses must be taken through an approved real estate education provider.

Certain renewal periods may have specific course requirements mandated by the Commission.

Why the other answers are incorrect:

Option A (10 Hours):Too low; Pennsylvania law requires 14 hours.

Option B (12 Hours):Falls short of the required minimum.

Option D (16 Hours):Exceeds the required minimum.

Under49 Pa. Code § 35.241 (Supervision and Operation of Offices),a licensed real estate salesperson must be supervised by a broker or an associate broker designated by the broker.

A broker may assign an associate broker (who has passed the broker exam but does not own the brokerage) to oversee salespersons.

Salespersons cannot work independently; they must work under the direction of a licensed broker or an assigned associate broker.

Why the other answers are incorrect:

Option A (Team Leader):A team leader is not a formal supervisory position under Pennsylvania law unless they are an associate broker or broker.

Option B (Salesperson):A salesperson cannot supervise other salespersons.

Option D (Transaction Coordinator):A transaction coordinator handles paperwork but does not supervise licensees.

Under49 Pa. Code § 35.314 (Duties of Dual Agents),a dual agent represents both the buyer and seller in the same transaction and must maintain neutrality by not disclosing confidential information unless required by law.

If the salesperson has knowledge that the sellers are getting divorced, this is considered confidential information that could harm their negotiating position.

Dual agents cannot disclose confidential facts that would disadvantage either party unless both parties agree in writing.

Disclosure of confidential details in a dual agency scenario would be a violation of Pennsylvania real estate law.

Why the other answers are incorrect:

Option B (Sub-Agent of Buyer):Asub-agent of the buyer has a fiduciary duty to the buyer and may disclose information that benefits them.

Option C (Transaction Licensee):Atransaction licensee does not represent either party and may disclose non-confidential information.

Option D (Designated Buyer Agent):Adesignated agent works solely for the buyer and is free to disclose information that benefits them.

Under49 Pa. Code § 35.283 (Compensation and Commission),a salesperson can only receive payment through their employing broker. This means thatif the flat fee is paid to the broker (not directly to the salesperson), then the arrangement is legal.

Commission does not have to be paid at closing; payment terms can be negotiated, including split payments.

For Sale by Owner (FSBO) properties are not required to be listed with a brokerage, so compensation can still be earned if a licensee brings a buyer.

Why the other answers are incorrect:

Option B (Commission Rate Limitations):There areno “prevailing” commission ratessince commissions are always negotiable.

Option C (Compensation Must Be at Closing):Commission can bestructured differently(e.g., partial upfront payment).

Option D (Only Listed Properties Qualify for Commission):Agents can earn commission on FSBOsas long as the broker is involved.