Chapter 13 - Pennsylvania Real Estate Licensing Law

Question 1

At what time should the real estate licensee present the Consumer Notice to the prospective buyer?

Answer 1

-When they get together to discuss the buyer’s needs and financial ability

Question 2

Real estate licensees may do ALL of the following EXCEPT

• provide inaccurate information
• provide the listed price to a buyer who calls in
• provide sources where the buyer can find additional information
• display a For Sale sign with written permission of the seller

Answer 2

-provide inaccurate information

Question 3

A broker must keep records of all real estate transactions …

Answer 3

for at least three years following the date of consummation or termination

Question 4

The Real Estate Commission may take disciplinary action against a licensee for all of the following EXCEPT

• violating the Real Estate and Licensing Registration Act
• violating the Pennsylvania Human Relations Act
• violating the blue-sky laws.
• violating the Rules and Regulations

Answer 4

-violating blue sky laws

Question 5

When advertising a property for sale, the broker must include which of the following in the advertisement?

• Listing Price
• Broker’s business name
• Broker’s address
• Legal description of property

Answer 5

-Broker’s business name

Question 6

Which if the following is NOT cause for disciplinary action against a licensee?

• Payment of a commission by a licensed broker to another licensed broker
• Failure to provide the client with a copy of the listing contract at the time it is signed
• Placing a For Sale sign on a property without written permission of the owner
• Accepting a listing with the understanding that illegal discrimination will be exercised in the sale of the property

Answer 6

-Payment of a commission by a licensed broker to another licensed broker

Question 7

A licensed sale person may do which of the following?

• Leave the employment of one broker and become associated with another broker without reporting the change to the Commission.
• Sell the salesperson’s own property without telling a buyer that she is licensed
• Place an advertisement using only the sales-person’s name and phone number
• Sell condominiums

Answer 7

-sell condominiums

Question 8

What is the BEST definition of a broker of record?

Answer 8

A broker who is the licensee responsible for the activities in a real estate corporation.

Question 9

Which of the following is TRUE regarding the laws for escrow accounts?

• Rents the broker collects must be deposited into the broker’s escrow account
• The salesperson must deposit escrow funds as soon as they are received
• The buyer and the seller can agree in writing that the escrow money will not be deposited until the agreement of sale is accepted.
• Escrow funds must be deposited in an interest-bearing account

Answer 9

-The buyer and the seller can agree in writing that the escrow money will not be deposited until the agreement of sale is accepted.

Question 10

Which statement regarding the Pennsylvania Real Estate Commission is FALSE?

• The commission makes an enforces the rules by which real estate licensees must abide
• Examinations that must be taken by applicants for real estate licensing are administered by an independent testing company rather than by the Commission.
• Members of the Commission are selected by the state association of REALTORS.
• The commission must submit annual reports to legislative committees in the state senate and house of representatives

Answer 10

-Members of the Commission are selected by the state association of REALTORS.

Question 11

An 18 year old woman has just received her salesperson real estate license. For how long must she be engaged as a real estate licensee before she can apply for her broker’s license?

Answer 11

-Three years of active licensure

Question 12

How does an agency relationship develop?

Answer 12

-only with express written authority

Question 13

Generally, the real estate licensee is obligated to

Answer 13

disclose any conflicts of interest

Question 14

A salesperson receives an earnest money check from the buyer along with the buyer’s offer. The buyer’s check must be

Answer 14

-turned over to the broker

Question 15

A broker manages a large apartment community. The termite company offers the broker $100 each time that the broker hires the termite company; the broker sees no reason to inform the owner. In this situation, this compensation is …

Answer 15

-illegal

Question 16

What activity may an unlicensed assistant carry out?

Answer 16

-Independently hold an open house for other licensees

Question 17

What, if anything, is required when a licensee sells a personal property.?

Answer 17

-Must inform all prospective purchasers that the seller holds a real estate license

Question 18

Who must hold a real estate license in Pennsylvania?

Answer 18

Full-time employee of a builder who negotiates the sale of the real estate of the build-owner

Question 19

A broker receives a check for earnest money from a buyer and deposits the money into an escrow or trust account. This protects the broker from a charge of

Answer 19

-commingling

Question 20

A salesperson wants to change offices. The salesperson returns her current license along with the required fee and the change of employment notification. At which time may the salesperson be involved in real estate activities on behalf of the second broker?

Answer 20

-Immediately upon mailing the change of employment notification.