Pennsylvania Real Estate Exam Flashcards

Question 1

How is dual agency permitted in Pennsylvania?

Accepted Answer

It is allowed only with the informed written consent of all parties; the dual agent must remain neutral and may not disclose one party's confidential information to the other.

Question 2

What is designated agency in Pennsylvania?

Accepted Answer

The broker designates separate licensees within the firm to represent the buyer and the seller individually, even when both clients are in the same transaction.

Question 3

What property-condition disclosure does Pennsylvania require of residential sellers?

Accepted Answer

The Seller's Property Disclosure Statement, required for most residential resales of one-to-four dwelling units, completed by the seller and delivered to the buyer before an agreement of sale is signed.

Question 4

How many continuing education hours must a Pennsylvania licensee complete each biennial renewal period?

Accepted Answer

14 hours of approved continuing education per two-year renewal cycle.

Question 5

Within what time must a Pennsylvania broker deposit earnest money into escrow?

Accepted Answer

Entrusted funds such as deposit money must be placed in the broker's escrow account by the end of the next business day after receipt, unless the parties agree otherwise in writing.

Question 6

What entity does a Pennsylvania salesperson's license activity have to be associated with?

Accepted Answer

An employing/supervising licensed broker. A salesperson may only conduct licensed activity on behalf of and under the supervision of their broker.

Question 7

What is a 'transaction licensee' in Pennsylvania?

Accepted Answer

A broker or salesperson who provides communication or document-preparation services to a buyer or seller without acting as an agent or advocate for either party, owing only limited duties.

Question 8

What pre-licensing education does Pennsylvania require for a salesperson license?

Accepted Answer

75 hours of approved education: a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course.

Question 9

How long must a Pennsylvania broker retain transaction and escrow records?

Accepted Answer

Brokers must keep complete transaction and escrow records for at least three years and make them available to the Commission for inspection.

Question 10

How many pre-license education hours does a Pennsylvania salesperson candidate need, and how are they split?

Accepted Answer

75 hours total: a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course.

Question 11

How must a Pennsylvania broker handle deposit and escrow money entrusted by clients?

Accepted Answer

It must be held in the broker's separate trust (escrow) account and never commingled with the broker's own funds.

Question 12

What disclosure must a Pennsylvania residential seller complete, and when is it delivered?

Accepted Answer

The Seller's Property Disclosure Statement, listing known material defects, delivered to the buyer before the agreement of sale is executed.

Question 13

In Pennsylvania, when must a licensee provide the Consumer Notice explaining agency relationships?

Accepted Answer

At the initial interview / first substantive contact with a consumer, before any information about the consumer's needs is shared.

Question 14

What is the difference between license suspension and revocation in Pennsylvania?

Accepted Answer

Suspension is a temporary loss of licensing privileges; revocation is the cancellation of the license, after which the person must generally reapply to be licensed again.

Question 15

What written agreement does RELRA require before a Pennsylvania licensee provides brokerage services?

Accepted Answer

A written agreement (listing or buyer agency contract) signed before services are performed, stating the fee, duration, and the relationship; it cannot contain an automatic-renewal clause.

Question 16

Which agency regulates real estate licensees in Pennsylvania?

Accepted Answer

The Pennsylvania State Real Estate Commission, which operates under the Bureau of Professional and Occupational Affairs (BPOA) within the Department of State.

Question 17

Who administers Pennsylvania's Real Estate Licensing and Registration Act (RELRA)?

Accepted Answer

The Pennsylvania State Real Estate Commission — licensing, rules, and discipline for salespersons and brokers.

Question 18

What is the Pennsylvania Real Estate Recovery Fund?

Accepted Answer

A fund administered by the State Real Estate Commission that compensates consumers who win a court judgment for fraud, misrepresentation, or deceit by a licensee but cannot collect from that licensee.

Question 19

When must a Pennsylvania licensee provide the Consumer Notice explaining agency relationships?

Accepted Answer

At the initial interview (first substantive contact) with a consumer, before any information that could harm the consumer's bargaining position is disclosed.

Question 20

Is Pennsylvania a community property state for real estate ownership purposes?

Accepted Answer

No. Pennsylvania is not a community property state; marital property is handled under equitable-distribution principles, not community property.

Question 21

What happens if a Pennsylvania licensee does not complete required continuing education before renewal?

Accepted Answer

The license cannot be renewed and lapses; the licensee may not practice until the CE is completed and the license is properly renewed/reactivated.

Question 22

May a Pennsylvania broker keep interest earned on an escrow account?

Accepted Answer

No. Interest on escrow belongs to the parties as agreed; the broker may not retain it for personal use, and any interest arrangement must be disclosed and documented.

Question 23

What statute governs real estate licensing and practice in Pennsylvania?

Accepted Answer

The Real Estate Licensing and Registration Act (RELRA), administered by the Pennsylvania State Real Estate Commission within the Department of State (BPOA).

Question 24

Can a Pennsylvania salesperson work independently or accept commission directly from a buyer or seller?

Accepted Answer

No. A salesperson must work under a single licensed broker and may be compensated only by that employing broker.

Question 25

What agency relationships may a Pennsylvania licensee enter under RELRA?

Accepted Answer

Seller agent, buyer agent, dual agent, designated agent, and transaction licensee (a non-agent who provides services without representing either party).

Question 26

Which agency regulates real estate licensees in Pennsylvania, and under which department does it sit?

Accepted Answer

The Pennsylvania State Real Estate Commission, within the Bureau of Professional and Occupational Affairs (BPOA) under the Department of State.

Question 27

Is Pennsylvania a community-property state?

Accepted Answer

No. Pennsylvania is not a community-property state; property ownership follows common-law and statutory tenancy rules.

Question 28

Who appoints the members of the Pennsylvania State Real Estate Commission?

Accepted Answer

The Governor appoints the Commission members (including licensed broker members and public/consumer members), with the Commission operating under the BPOA.

Question 29

What law governs the licensing and regulation of real estate professionals in Pennsylvania?

Accepted Answer

The Real Estate Licensing and Registration Act (RELRA), enforced by the State Real Estate Commission.

Question 30

What core fiduciary duties does a Pennsylvania agent owe a client?

Accepted Answer

Loyalty, confidentiality, obedience to lawful instructions, disclosure, reasonable care and diligence, and full accounting of funds and property.

Question 31

How many hours of pre-licensing education are required for a Pennsylvania salesperson license?

Accepted Answer

75 hours of approved instruction: a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course.

Question 32

How often must Pennsylvania real estate licenses be renewed?

Accepted Answer

Every two years (biennially), on the standard license renewal cycle set by the State Real Estate Commission.

Question 33

Which property type/funding source backs claims paid for consumer losses caused by PA licensees?

Accepted Answer

The Real Estate Recovery Fund, financed by assessments collected from licensees rather than from general state tax revenue.

Question 34

May a Pennsylvania salesperson accept compensation directly from a buyer or seller?

Accepted Answer

No. A salesperson may be paid only by and through their supervising broker, never directly from a consumer or another licensee.

Question 35

What disciplinary actions can the Pennsylvania State Real Estate Commission impose on a licensee?

Accepted Answer

Reprimand, civil penalties, license suspension, license revocation, and refusal to renew or issue a license, depending on the violation.

Question 36

Pre-license education for a Pennsylvania salesperson?

Accepted Answer

75 hours of approved instruction (including Real Estate Fundamentals and Real Estate Practice) before the exam.

Question 37

Does a Pennsylvania licensee have a duty to disclose known material defects to a buyer?

Accepted Answer

Yes. Licensees must disclose known material defects in the property to buyers, even when representing the seller; they may not knowingly misrepresent or conceal them.

Question 38

What are the two pre-licensing courses required for a PA salesperson, and how are the hours split?

Accepted Answer

Real Estate Fundamentals (30 hours) and Real Estate Practice (45 hours), totaling 75 hours.

Question 39

Who must hold and control escrow/trust funds in a Pennsylvania transaction?

Accepted Answer

The broker is responsible for maintaining the escrow account; deposits and other entrusted money must be held in the broker's separate escrow (trust) account, not commingled with the broker's own funds.

Question 40

What happens to a Pennsylvania licensee's license if the Real Estate Recovery Fund pays a claim on their behalf?

Accepted Answer

The license is automatically suspended and is not reinstated until the licensee repays the Fund in full plus interest.

Question 41

Under RELRA, can a Pennsylvania licensee be disciplined for conduct involving fraud or dishonesty even outside a specific transaction?

Accepted Answer

Yes. The Commission may discipline a licensee for fraud, misrepresentation, dishonest dealing, or other violations of RELRA, including conduct demonstrating bad faith or incompetence.

Question 42

What additional education is required to qualify for a Pennsylvania broker license beyond the salesperson education?

Accepted Answer

Completion of additional approved broker-level coursework (240 hours of qualifying real estate instruction) plus the required period of active experience as a licensed salesperson.

Question 43

How is marital property treated in Pennsylvania for real estate purposes?

Accepted Answer

Pennsylvania is NOT a community property state; it follows equitable distribution, and spouses commonly hold real property as tenants by the entireties.

Question 44

What must appear in a Pennsylvania licensee's advertising?

Accepted Answer

Advertising must include the broker's name (the licensed business name) and may not be misleading; salespersons must advertise only under the supervising broker, not independently.

Pennsylvania Real Estate Exam Flashcards

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