Pass the Real Estate Pennsylvania Real Estate Commission RePA_Sales_S Questions and answers with ExamsMirror

Under63 P.S. § 455.305 (Civil Penalty Provisions),the Pennsylvania Real Estate Commission has the authority to suspend or revoke a license and impose fines of up to $1,000 per violation.

The Commission can impose fines but does not have authority over criminal penalties such as imprisonment.

Suspension or revocation is a common penalty for severe violations, including fraud, misrepresentation, or mismanagement of client funds.

Why the other answers are incorrect:

Option A ($2,000 - $5,000 Fine):The fine limit for first offenses is typically $1,000 per violation.

Option C (20 Hours of Ethics Training):Training may be recommended but is not an official penalty imposed by the Commission.

Option D (90-Day Imprisonment):The Commission does not have authority to impose jail sentences.

ThePennsylvania Real Estate Commission (PREC)has the authority toregulate real estate licenses but does not certify real estate appraisers.

Real estate appraisers in Pennsylvania are regulated by the State Board of Certified Real Estate Appraisers, not the Real Estate Commission.

The Commission’s powers include:

Suspending or revoking licensesfor violations.

Imposing finesfor disciplinary actions.

Auditing escrow accountsto ensure compliance with regulations.

Why the other answers are incorrect:

Option A (Suspend or Revoke Licenses):TheCommission has the authority to discipline licensees.

Option B (Impose Fines):TheCommission can fine violators for misconduct.

Option C (Review Escrow Accounts):TheCommission can audit escrow accounts to protect client funds.

UnderThe Fair Housing Act (42 U.S.C. § 3604) and The Americans with Disabilities Act (ADA) (42 U.S.C. § 12101),a salesperson must treat a person with a disability the same as any other prospective tenant, without discrimination.

The salesperson should focus on the client’s housing needs, such as apartment size and features, rather than their disability.

Landlords cannot charge an extra security deposit for service animals.

The person is not limited to disability-specific housing; they can rent any unit they qualify for.

Why the other answers are incorrect:

Option A (Search for Pet-Friendly Apartments):Service animals are NOT pets, so pet restrictionsdo not apply.

Option B (Charge Extra Deposit):Thisviolates fair housing laws; extra deposits for service animals are illegal.

Option C (Limit Options to Disability-Specific Housing):Clients with disabilitiesmust be shown all available housing, not just disability-specific units.

Under49 Pa. Code § 35.314 (Duties of Dual Agents),a dual agent represents both the buyer and seller in the same transaction and must maintain neutrality by not disclosing confidential information unless required by law.

If the salesperson has knowledge that the sellers are getting divorced, this is considered confidential information that could harm their negotiating position.

Dual agents cannot disclose confidential facts that would disadvantage either party unless both parties agree in writing.

Disclosure of confidential details in a dual agency scenario would be a violation of Pennsylvania real estate law.

Why the other answers are incorrect:

Option B (Sub-Agent of Buyer):Asub-agent of the buyer has a fiduciary duty to the buyer and may disclose information that benefits them.

Option C (Transaction Licensee):Atransaction licensee does not represent either party and may disclose non-confidential information.

Option D (Designated Buyer Agent):Adesignated agent works solely for the buyer and is free to disclose information that benefits them.

Before advertising, showing, or offering any property, areal estate licensee must obtain written authorization from the property owner. This is a legal requirement to ensure that the licensee has the right to represent the property.

49 Pa. Code § 35.331 (Written Agreements Generally)states that a real estate licenseemusthave a written agreement with the property ownerbefore performing any real estate services, including advertising and showing the property.

49 Pa. Code § 35.332 (Exclusive Listing Agreements)further clarifies that exclusive agreementsmust be in writingand signed by both the owner and broker.

Without the owner's written consent, a licensee could be subject to penalties or disciplinary action from the Pennsylvania Real Estate Commission.

Why the other answers are incorrect:

Option A (Preliminary Appraisal):Licensees are not required to conduct appraisals unless they are certified appraisers.

Option C (List of Clients):There is no requirement to provide a history of past transactions before listing or advertising a property.

Option D (Comparative Market Analysis - CMA):A CMA is useful for pricing but isnot required before advertising or showing a property.

Under49 Pa. Code § 35.283 (Compensation and Commission),a salesperson can only receive payment through their employing broker. This means thatif the flat fee is paid to the broker (not directly to the salesperson), then the arrangement is legal.

Commission does not have to be paid at closing; payment terms can be negotiated, including split payments.

For Sale by Owner (FSBO) properties are not required to be listed with a brokerage, so compensation can still be earned if a licensee brings a buyer.

Why the other answers are incorrect:

Option B (Commission Rate Limitations):There areno “prevailing” commission ratessince commissions are always negotiable.

Option C (Compensation Must Be at Closing):Commission can bestructured differently(e.g., partial upfront payment).

Option D (Only Listed Properties Qualify for Commission):Agents can earn commission on FSBOsas long as the broker is involved.

Under49 Pa. Code § 35.283 (Compensation and Commission), asalesperson may only receive compensation through their employing broker.All commissions, bonuses, or referral fees must be paid by the broker and not directly to or from another licensee.

A real estate salesperson cannot accept direct payment from clients, buyers, or sellers.

Any bonus or commission earned must first go to the broker, who then distributes the appropriate amount to the salesperson.

Why the other answers are incorrect:

Option A (Direct Commission from Buyer & Seller):Salespersonscannot accept direct payments from clients; all payments must go through their broker.

Option B (Pay Referral Fee to Another Salesperson):Only brokers can pay referral fees.A salespersoncannotpay another licensee.

Option D (Split Commission Directly with Another Licensee):Commissionsmust be handled by the broker, not between individual agents.

Allexclusive listing agreements in Pennsylvania MUST specify their duration in writing.

49 Pa. Code § 35.332 (Exclusive Listing Agreements)states thatall exclusive listings must have a definite start and end date.

Listings without an expiration date are considered illegaland unenforceable in Pennsylvania.

Why the other answers are incorrect:

Option A (Cancellation in 24 Hours):There is no legal requirement for a 24-hour cancellation clause.

Option B (Financing Arrangements):Financing provisionsare not a required part of a listing agreement.

Option C (Signed by Cooperating Broker):A cooperating broker’s signatureis not required. Only the listing broker and seller need to sign the agreement.

Under49 Pa. Code § 35.284 (Disclosures of Business Relationships),the Consumer Notice defines five types of permitted relationships between real estate licensees and consumers:

Buyer’s Agent– Represents the buyer and has a fiduciary duty to them.

Seller’s Agent (Listing Agent)– Represents the seller and has a fiduciary duty to them.

Designated Agent– A brokerage firm designates different agents to represent buyers and sellers in the same firm without creating dual agency.

Dual Agent– A licensee represents both the buyer and seller in the same transaction, with mutual consent.

Transaction Licensee– A real estate licensee who provides services but does not represent either party as an agent.

Why the other answers are incorrect:

Option A (Rental Agent):"Rental agent" is not a defined relationship in Pennsylvania law.

Option B (Buyer & Seller Sub-Agent):Sub-agency is no longer common and is not a required disclosure.

Option D (Designated Dual Agent):Dual agency and designated agency are separate concepts.

Under49 Pa. Code § 35.292 (Duties of Licensees Generally),a real estate licensee is required to present all written offers to the seller, regardless of the amount.

It is the seller’s right to accept, reject, or counter an offer, not the salesperson’s decision.

A salesperson cannot refuse to submit an offer based on personal opinions about the price.

Presenting all offers ensures fair dealings and upholds fiduciary duty to the seller.

Why the other answers are incorrect:

Option B (Not Waste the Seller’s Time):It is the seller’s decision to accept or reject an offer, not the salesperson’s.

Option C (Advise Buyer to Offer More):A licensee must remain neutral and cannot pressure a buyer to increase their offer.

Option D (Suggest Buyer Use Another Agent):There is no reason to transfer the buyer to another agent. The agent must present the offer.