Unit 3 - Questions Flashcards
How long must a broker keep records of his transactions for inspection by the Commission?
a. one year
b. three years
c. five years
d. seven years
b. three years
In addition to the licenses of Broker and Salesperson, all of the following are Pennsylvania Real Estate licenses, except?
a. Associate Broker
b. Affiliated Salesperson
c. Cemetery Broker
d. Cemetery Salesperson
b. Affiliated Salesperson
The Commission is empowered to hear complaints about licensed persons practicing real estate, conduct investigations, and…
a. imprison licensees who violate the Act up to four years.
b. seek criminal and civil remedies for illegal activities.
c. fine licensees who violate the Act up to $8,000.
d. refer the discipline of licensees to the Department of State.
b. seek criminal and civil remedies for illegal activities.
What is the total amount the Commission can fine an unlicensed person for violating the Act a second time?
a. $500
b. $1,000
c. $5,000
d. $6,000
c. $5,000
Section 303 of the Pennsylvania Licensing and Registration Act specifies a penalty of not less than $2,000 but not more than $5,000, or imprisonment, for unlicensed persons engaging in real estate as a second offence.
It’s high school graduation time and apparently some of the graduates went around the neighborhood and picked up all the real estate signs. They then put them in one or two yards of some of their younger friends. The broker gets a call the next morning from the homeowner who demands that the broker pick up and move his sign. The broker doesn’t have anyone available to pick up the signs so he leaves the signs for a week or so. Is there a problem here?
a.Yes, a broker cannot have a “For Sale” sign in the yard without the written consent of the owner.
b. Yes, this is really bad business for the broker to ignore the owner of the property, and the owner may end up suing the broker.
c. No, this is just a silly prank, and the owner shouldn’t get so upset over it
d. No, the only problem is that the broker should anchor his signs better so the graduates can’t get them loose and upset the neighborhood.
a.Yes, a broker cannot have a “For Sale” sign in the yard without the written consent of the owner.
Under the Real Estate Recovery Act, a person who has been the victim in a real estate transaction is provided relief and compensation. The victim is called which of the following?
a. aggrieved person
b. respondent
c. complainant
d. augmented person
a. aggrieved person
What is the total amount the Commission can fine an unlicensed person for violating the Act the first time?
a. $500
b. $1,000
c. $5,000
d. $6,000
a. $500
Section 303 of the Pennsylvania Licensing and Registration Act specifies a penalty not to exceed $500, or imprisonment, for unlicensed persons engaging in real estate as a first offence
Susan, a salesperson for Broker M shows property that Broker K has listed. She can do this because the property is listed in a multiple listing. When she gets to the house, the seller is present and informs Susan that he, the seller, will give Susan a $1,000.00 bonus if she can sell and close the house in two weeks. Susan is able to do this and she goes to the seller to get her check. The seller gives her money and she tells her broker about it two months later. Did Susan do the right thing?
a.Susan sold the property and earned her bonus as the seller wanted.
b.Susan doesn’t have to share it with her broker because she arranged this with the seller.
c.Susan violated license law by accepting the bonus. She cannot accept compensation from anyone except her broker.
d.Broker K can sue Susan and her broker for the extra bonus she received since Broker K had the listing.
c.Susan violated license law by accepting the bonus. She cannot accept compensation from anyone except her broker.
Joe is the property manager of a small apartment building. He does not have a real estate license. He lives in one of the downstairs units. He shows vacant units to prospective tenants and gives them information about the building. One day one of the tenants comes to Joe and tells him that she is very tired of the green paint in the living room and she wants to paint it yellow. She wants to have the cost of the paint deducted from the rent. Joe tells her that it will be ok to do the painting and he will reduce next month’s rent. Which of the following is correct?
a. Joe is happy that the tenant is doing repair work.
b. Joe is doing his job as a property manager in keeping the building up and making the tenants happy.
c. Joe is not doing his job as a property manager since he should do the painting.
d. Joe needs a real estate license to make rent decisions for the owner.
d. Joe needs a real estate license to make rent decisions for the owner.
Exemptions to requiring a real estate license include; a property manager employed by the owner of a multifamily residential dwelling provided he or she does not negotiate terms of occupancy with tenants or have the authority to make decisions.
A motel desk-clerk places a sign on the counter at work that says “If you are looking to buy a home, I can help.” When he is asked by a motel patron about finding a home, the motel clerk says he is a real estate consultant and that he will give a licensed agent the patron’s name after he (the clerk) determines the housing needs of the patron. When the sale is made, the motel clerk will share the commission with the licensed person. Does the clerk need a real estate license?
a. Yes, because the clerk is sharing in the commission
b. No, he does not actually show property, therefore he does not need a license.
c. Yes, because he is holding himself out as a real estate consultant, working for others and collecting a fee
d. No, because real estate consultants working part-time do not need a license
c. Yes, because he is holding himself out as a real estate consultant, working for others and collecting a fee
A(n)________________ is a competent person acting for another under the power of attorney, carrying with it the responsibilities of a fiduciary.
a. manager
b. trustor
c. devisor
d. attorney-in-fact
d. attorney-in-fact
Jack is a broker who has had a complaint filed against him. The prosecuting attorney has sent the charges to Jack and instructed that Jack answer the charges within 30 days. Jack’s own attorney advises his client to settle the case without a major public hearing. Jack’s attorney approaches the Commission with an agreement for a penalty agreeable to both sides. This agreement is called which of the following?
a. the consent agreement and order
b. the listing agreement
c. the probable cause agreement
d. the order to show agreement
a. the consent agreement and order
A written analysis, by a licensed agent, relating to the probable sale price of a specified piece of property in an identified real estate market at a specified time best describes which of the following?
a. comparative market analysis
b. listing promotion
c. marketing plan
d. market search price index
a. comparative market analysis
In a complaint proceeding, either party may approach the other about a possible settlement. If they do this and in fact negotiate a penalty that they believe is acceptable to the Commission, they complete a document known as which of the following?
a. adjudication and order
b. order to show cause
c. consent agreement and order
d. show cause order
c. consent agreement and order
An Consent Agreement and Order enables a complaint to be settled without a public hearing. To do this the partiers negotiate an agreed-upon penalty that will be acceptable to the Commission.
The Commission upon review finds that a licensee has committed some additional breaches in practice. The Commission by vote may levy a civil penalty up to___________ on any person not currently licensed and practicing real estate, after a hearing has been held.
a. $500
b. $1,000
c. $2,000
d. $5,000
b. $1,000
