Before you read
Test yourself first: 5 questions
Question 1 of 5
Under Pennsylvania law, dual agency is permitted only when:
Answer: B. Pennsylvania allows dual agency, but only with the informed written consent of both parties. The licensee must disclose the limited nature of the representation and may not disclose confidential information of one party to the other.
Question 2 of 5
A Pennsylvania broker assigns one licensee in the firm to represent the seller and a different licensee in the same firm to represent the buyer in one transaction. This arrangement is:
Answer: B. This is designated agency: the broker designates separate licensees within the firm to act as agents for the buyer and the seller. Pennsylvania permits designated agency with appropriate disclosure and consent, allowing each party to receive client-level representation despite the broker representing both sides.
Question 3 of 5
The voting membership of the Pennsylvania State Real Estate Commission includes which mix of members?
Answer: B. The Commission is composed of a mix of licensed real estate brokers and salespersons plus public/consumer members, along with designated commonwealth officials, providing both industry and public representation.
Question 4 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 5 of 5
If a Pennsylvania seller knowingly provides a false property condition disclosure statement that misrepresents a material defect, the seller may face which consequence?
Answer: A. A seller who knowingly makes a false statement of a material defect on the Pennsylvania disclosure statement can be held liable to the buyer for the actual damages caused. The disclosure law creates real exposure for misrepresentation; it is not a meaningless or voluntary formality.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
The law recognizes several business relationships, including seller agent, buyer agent, dual agent, designated agent, and transaction (non-representation) licensee, and a licensee owes statutory duties such as loyalty, confidentiality, and disclosure to the party they represent. A licensee must provide the consumer with the required Consumer Notice explaining these possible relationships and duties at the initial interview, before any substantive discussion of a specific property or the consumer's needs.
Pennsylvania's Agency and Representation Model: FAQs
Is Pennsylvania's Agency and Representation Model 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.
