Before you read
Test yourself first: 5 questions
Question 1 of 5
In Pennsylvania, who is ultimately responsible for the maintenance and integrity of the brokerage's escrow account?
Answer: C. The broker of record is ultimately responsible for the proper handling and recordkeeping of the brokerage's escrow/trust account, including ensuring funds are not commingled or misused.
Question 2 of 5
In Pennsylvania, escrow or deposit money received in connection with a real estate transaction must be held by the:
Answer: B. RELRA requires the employing/responsible broker to maintain deposit and escrow money in a separate escrow or trust account, kept apart from the broker's own funds. Salespersons turn deposits over to their broker; the broker is responsible for proper handling.
Question 3 of 5
Who is ultimately responsible for the proper handling and accounting of all funds deposited into a Pennsylvania real estate brokerage's escrow account?
Answer: B. In Pennsylvania the broker is responsible for the escrow account and for the proper handling, deposit, and accounting of all funds belonging to others, even when a salesperson initially received them.
Question 4 of 5
A Pennsylvania broker handling property management deposits collects rents and security deposits for owners. How must these funds be handled under RELRA and Commission rules?
Answer: B. RELRA and Commission regulations require brokers to hold others' money, including rents and security deposits, in a separate escrow/trust account and maintain accurate records. Commingling with the broker's personal or operating funds is a violation.
Question 5 of 5
In which Pennsylvania entity is responsibility for maintaining and reconciling the brokerage escrow account ultimately placed?
Answer: B. Ultimate responsibility for the proper handling, maintenance, and reconciliation of the brokerage's escrow account rests with the broker of record, even when staff or salespersons assist.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Salesperson and broker licenses are renewed on a two-year cycle, and licensees must complete the required continuing education to renew. Failing to maintain proper escrow handling or to satisfy continuing-education requirements can result in disciplinary action by the State Real Estate Commission.
Handling Escrow Funds and License Renewal in Pennsylvania: FAQs
Is Handling Escrow Funds and License Renewal in Pennsylvania on the real estate exam?
Yes. State License Law is a scored domain on the Pennsylvania real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Pennsylvania test this differently?
Pennsylvania applies its own license law on top of the national portion. This page covers the Pennsylvania rules specifically, which is what the state section of your exam tests.
