Before you read
Test yourself first: 5 questions
Question 1 of 5
Before the Commission may suspend or revoke a Pennsylvania real estate license for a violation, the licensee is entitled to which protection?
Answer: A. Due process under the Administrative Agency Law requires the Commission to give the licensee written notice of the charges and an opportunity to be heard before imposing discipline.
Question 2 of 5
Which body has the authority to suspend or revoke a Pennsylvania real estate license for violations of the Real Estate Licensing and Registration Act (RELRA)?
Answer: A. The Pennsylvania State Real Estate Commission, operating under the Department of State/BPOA, administers RELRA and has the authority to investigate complaints and to suspend or revoke licenses for violations. Local boards and brokers cannot revoke a state-issued license, and courts handle criminal matters rather than licensing discipline.
Question 3 of 5
A licensee accepts a referral fee directly from a mortgage lender for steering buyers to that lender, without disclosure. Under Pennsylvania license law, accepting such an undisclosed compensation is:
Answer: B. Accepting undisclosed compensation, kickbacks, or referral fees that are not disclosed to the principal is a prohibited act under RELRA and can lead to discipline. Licensees owe a duty of disclosure and may not secretly profit from the transaction.
Question 4 of 5
A Pennsylvania salesperson may lawfully accept compensation for a real estate transaction from:
Answer: C. Under RELRA a salesperson may accept compensation only from the broker with whom they are affiliated. Accepting a fee or commission directly from a buyer, seller, or another broker is a prohibited act subject to discipline.
Question 5 of 5
In addition to suspension or revocation, the Pennsylvania State Real Estate Commission may discipline a licensee by:
Answer: A. The Commission's disciplinary tools include reprimand, civil penalties (fines), probation, additional education, and suspension or revocation of the license. Jail time is a criminal matter for the courts; the Commission cannot void contracts or directly garnish wages.
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What you need to know
It may investigate consumer complaints and impose discipline ranging from reprimand and civil penalties to suspension or revocation of a license for violations such as fraud, misrepresentation, or commingling of funds. To protect consumers, Pennsylvania maintains a Real Estate Recovery Fund that can reimburse a person who obtains an unsatisfied court judgment against a licensee for fraud or misrepresentation. When the fund pays a claim, the offending licensee's license is automatically suspended until the amount is repaid with interest.
Pennsylvania License Discipline & Enforcement: FAQs
Is Pennsylvania License Discipline & Enforcement 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.
