Sanctions include reprimand, license suspension or revocation, and civil penalties.
Before you read
Test yourself first: 5 questions
Question 1 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.
Question 2 of 5
In Pennsylvania, what term describes a broker mixing clients' escrow funds with the broker's own personal or business funds?
Answer: B. Commingling is the prohibited act of mixing money belonging to others with the broker's own funds. Conversion is the more serious act of actually using those funds for the broker's own purposes. Both are grounds for discipline under RELRA.
Question 3 of 5
Pennsylvania's Real Estate Recovery Fund exists primarily to:
Answer: B. The Real Estate Recovery Fund compensates members of the public who obtain a final court judgment against a licensee for fraud, misrepresentation, or other wrongdoing arising from a transaction and cannot collect from the licensee. It protects consumers, not licensees.
Question 4 of 5
When the Real Estate Recovery Fund pays a claim on behalf of a Pennsylvania licensee, what generally happens to that licensee's license?
Answer: B. If the Recovery Fund pays a judgment because of a licensee's conduct, the licensee's license is automatically suspended and is not reinstated until the licensee repays the fund the amount paid plus interest. The fund is a consumer backstop, not a way for licensees to avoid liability.
Question 5 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.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Enforcement authority: the Pennsylvania State Real Estate Commission may investigate complaints and discipline licensees under RELRA.
- Sanctions include reprimand, license suspension or revocation, and civil penalties.
- Discipline may follow misrepresentation, fraud, commingling, or other RELRA violations.
- Pennsylvania maintains a Real Estate Recovery Fund to reimburse consumers harmed by a licensee's fraud, misrepresentation, or deceit.
- Recovery from the fund generally requires an unsatisfied court judgment against the licensee.
- Payment from the Recovery Fund results in automatic suspension of that licensee until the fund is repaid with interest.
- Practicing real estate without a license is prohibited and may carry criminal as well as civil consequences.
Pennsylvania License Discipline, Penalties & Recovery Fund: FAQs
Is Pennsylvania License Discipline, Penalties & Recovery Fund 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.
