Lead-based paint disclosure is required for most homes built before 1978 (federal requirement applied in PA).
Before you read
Test yourself first: 5 questions
Question 1 of 5
In Pennsylvania, deposit or earnest money received by a broker on behalf of others must be:
Answer: C. Pennsylvania requires brokers to deposit funds belonging to others, such as earnest money, into a separate escrow (trust) account. Commingling these funds with the broker's own money is prohibited.
Question 2 of 5
Mixing client escrow funds with a broker's own business funds in Pennsylvania is known as and constitutes:
Answer: A. Commingling is the improper mixing of clients' funds with the broker's own funds. Pennsylvania prohibits commingling; client deposits must be kept in a separate escrow/trust account.
Question 3 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 4 of 5
Earnest money and other funds belonging to others that a Pennsylvania broker receives must be:
Answer: C. Pennsylvania requires a broker to deposit money belonging to others (such as earnest money deposits) into a separate escrow/trust account, keeping it apart from the broker's own funds.
Question 5 of 5
A Pennsylvania broker who deposits client escrow money into their own business operating account has committed:
Answer: B. Mixing client/escrow funds with the broker's own funds is commingling, which is prohibited under RELRA and Commission regulations. Trust funds must be kept separate.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Sellers of residential property must complete a Seller's Property Disclosure Statement covering the property's known material defects.
- The property disclosure is delivered to the buyer before an agreement of sale is signed/executed.
- Lead-based paint disclosure is required for most homes built before 1978 (federal requirement applied in PA).
- Client/escrow money must be held in the broker's separate trust (escrow) account, not commingled with the broker's own funds.
- Deposits and other entrusted funds must be deposited promptly per the Commission's regulations.
- Salesperson pre-license hours: 30 (Fundamentals) + 45 (Practice) = 75 total.
- The Consumer Notice on agency is given at the initial interview / first contact — remember it as the 'first-meeting' disclosure.
Pennsylvania Disclosures, Escrow/Trust Funds & Key Numbers: FAQs
Is Pennsylvania Disclosures, Escrow/Trust Funds & Key Numbers 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.
