Unit 13

Question 1

Real Estate Licensing and Registration Act (RELRA)

Answer 1

Statutory law enacted by the sate legislature and signed into law by the governor. Department of state issues your license. Real estate commission administers and supervises licenses.

Question 2

State Real Estate Commission

Answer 2

Consists of 11 members 6 have real estate licenses.

• Commissioner of the Bureau of Professional and Occupational Affairs
• The director of the Bureau of consumer protection or a designee
• 3 public members
• 5 real estate brokers (10 years of business)
• 1 cemetery broker

Annually elects a chairman.
Commissioners are appointed by the governor and confirmed by the senate for 5 years
Often held in Harrisburg but sometimes held in other cities/ open to the public

Question 3

Suspension/ relicensure

Answer 3

Broker must post notice of suspension on business doors. Revocation of a license lasts for at least 5 years. After 5 years they can petition for relisensure.

Question 4

Prohibited Acts

Answer 4

*don’t lie
*failing to comply with escrow requirements
* failing to preserve records relating to any real estate transaction for 3 years following consummation of the transaction
*don’t withhold an offer
*do not place sign in yard without written consent
*give a copy of the contract to each person signing
*disclose in writing if a dual agent
pg 226-227 for more

Question 5

Reporting crimes

Answer 5

Report must be made within 30 days of the verdict or plea.

Question 6

Real Estate Recovery Fund

Answer 6

Established to provide a means for aggrieved persons to collect judgements awarded in civil court
Max amount payable 20,000 per claim
100,000 per license

Question 7

Broker licensure requirements

Answer 7

at least 21 
high school graduate 
240 hours of real estate instruction 
A listened real estate salesperson for 3 years 
Application
Written exam both parts passed

continuing ed of 14 hours to renew

Question 8

Salesperson licensure requirements

Answer 8

at least 18
75 hour of real estate instruction
pass exam

continuing ed of 14 hours to renew

Question 9

Cemetery Broker licensure requirements

Answer 9

60 hours of instruction
salesperson or cemetery salesperson for 3 years
pass written examination

Question 10

Cemetery Salesperson licensure requirements

Answer 10

at least 18 years old
sworn affidavit from the employing broker
no education or exam required

Question 11

Builder Owner salesperson licensure requirements

Answer 11

18 years of age
written exam
no education requirement

Question 12

Campground membership salesperson licensure requirements

Answer 12

18 years of age
complete 15 hours of instruction specific to topics and complete no less than 30 days onsite training at a camp ground membership facility prior to licensure.

Question 13

Time share sales person licensure requirements

Answer 13

18 years if age
30 hours of instruction specific to topics
30 days onsite training at a timeshare facility prior to licensure.

Question 14

Unlicensed Activity penalty

Answer 14

1st offense- up to $500 and up to 3 months imprisonment

2nd offense- fine of 2,000 to 5,000 and imprisonment of up to 1 or 2 years

Question 15

Licensing Procedures

Answer 15

The Department of State issues licenses and registration certificates to individual who meet the requirement established by the act. Approves real estate schools, sets fees, subject matter for exams.

The license period for all real estate licenses currently begins June 1 and ends the last day of May in each even- numbered year. When a license is first issued it expired on the last day of May of the current license period. License is active once it is issued and remains properly renewed.

Question 16

Inactive License

Answer 16

Can be inactive for five years if inactive longer they need to retake the exam

Question 17

Consumer notice document procedures

Answer 17

The 1st form given at first contact where there is a substantive discussion about real estate
Advises consumers about all the business relationships permitted by the Act and helps consumers make informed decisions when engaging the services of the licensee.
Even when there is no transaction the employing broker much hold the consumer notice for 6 months.

Question 18

Principal

Answer 18

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