RePA_Sales_S Sample Questions Answers

According to49 Pa. Code § 35.305(Business Name on Advertisements), alladvertisements placed by a salesperson must include the broker’s name.

Thebroker's name is missing, which violates Pennsylvania advertising requirements (Option C - Correct).

The property address does not need to be in the ad (Option A - Incorrect).

Salesperson names are allowed but must be accompanied by the broker's name (Option B - Incorrect).

MLS numbers are not a requirement in all advertisements (Option D - Incorrect).

Under49 Pa. Code § 35.201 (Definitions), an unlicensed individual who is directly employed by a property owner can perform certain tasks, such as providing rental information and enforcing building rules, but they cannot engage in leasing or negotiation activities.

Providing information on rental amounts and building rules is considered administrative and does not require a real estate license.

However, negotiating leases, collecting rents on behalf of third parties, or holding security deposits in a non-owner-controlled account would require a real estate license.

Why the other answers are incorrect:

Option B (Entering into Leases):Only a licensed real estate broker or a supervised salesperson can legally execute lease agreements on behalf of a landlord.

Option C (Negotiating Terms):Negotiating lease terms is an activity that requires a real estate license.

Option D (Holding Tenant Funds Independently):Handling tenant funds outside of the owner's direct control is a brokerage activity and requires a real estate license.

In Pennsylvania, a real estate licenseemust complete 14 hours of continuing education (CE) coursesduring each renewal period. Additionally,if the Pennsylvania Real Estate Commission mandates a specific CE course during the licensing cycle, licensees are required to take that course.

49 Pa. Code § 35.382 (Continuing Education Requirements)states that alicensee must complete the specific courses required by the Commission for each licensing cycle.

Some renewal periods require specific courses, such as ethics or law updates, to ensure that licensees remain compliant with changing regulations.

Why the other answers are incorrect:

Option A (14 Hours Specifically Mandated):Whilesomecourses may be mandatory, licensees can choose others from anapproved list.

Option B (Any Combination of 14 Hours):Somespecific courses are required, meaning licenseescannot just pick any course.

Option D (Carrying Over CE Hours):Continuing education hours do not carry overfrom one licensing period to another.

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 § 35.331 (Written Agreements Generally),a copy of any written agreement (including listing agreements) must be provided to the parties at the time of signing.

This rule ensures transparency and protects clients from unauthorized changes to agreements.

Failure to provide an immediate copy is a violation of Pennsylvania real estate regulations.

Why the other answers are incorrect:

Option B (Broker Signature First):Thebroker does not need to sign before providing a copy to the client.

Option C (After Cancellation Period):There is no required waiting period before providing a copy.

Option D (Within 5 Days):The law statesit must be immediate, not within 5 days.

Under49 Pa. Code § 35.283 (Disclosure of Interest),a real estate licensee must disclose in writing if they have a direct or indirect ownership interest in a property they are selling or purchasing.

This disclosure ensures transparency and prevents conflicts of interest.

Failure to disclose ownership interest could be considered fraudulent and result in disciplinary action by the Pennsylvania Real Estate Commission.

Why the other answers are incorrect:

Option A (Commission Notification Required):TheCommission does not need to be notifiedunless a violation occurs.

Option B (Listing Agreement Disclosure):Disclosure isnot required in the listing agreementbut must be made to all parties.

Option D (Percentage of Ownership on Contract):The specificpercentage of ownership is not required to be on the contract; general disclosure is sufficient.

Under49 Pa. Code § 35.324 (Handling of Deposits and Escrow Money), all earnest money deposits must be promptly transmitted to the employing broker for deposit into an escrow account.

A salesperson cannot hold earnest money or maintain an escrow account on their own.

Brokers are responsible for ensuring that all escrow funds are properly handled and protected from commingling.

Why the other answers are incorrect:

Option A (Salesperson Holding Escrow Funds):Salespersons are prohibited from maintaining independent escrow accounts.

Option C (Holding Funds for 3 Days):Earnest money must be turned over to the broker as soon as possible; salespersons cannot hold it for any period.

Option D (Returning to Buyer for Transmission):Earnest money must go directly to the broker, not back to the buyer.

Under49 Pa. Code § 35.305 (Business Name on Advertisements),any advertisement placed by a real estate salesperson must include the name and phone number of their employing broker.

This ensures that the public knows which brokerage is responsible for the property listing and avoids misleading or unverified advertisements.

A salesperson cannot advertise properties without clearly identifying their broker to ensure compliance with advertising regulations.

Why the other answers are incorrect:

Option A (Municipality):While useful,this is not required in every ad.

Option B (Legal Description):A legal property descriptionis not requiredfor advertisements.

Option D (Name of the Principal):The seller's name does not need to be included in advertisements.

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.

Under49 Pa. Code § 35.285 (Disclosure of Real Estate Affiliations),a licensee selling their own property MUST disclose that they are a real estate licensee in all advertisements and communications.

The disclosure must be made in a clear and conspicuous mannerto inform potential buyers that the seller has professional real estate expertise.

This rule prevents deception and ensures fair dealings in real estate transactions.

Why the other answers are incorrect:

Option A (List Property with Firm):Licenseesare NOT required to list their own propertywith their firm.

Option C (Offer Commission to Brokers):There isno requirement to offer compensationto other brokers.

Option D (Have an Active License):A licensee can still sell their own property even if their license is inactive,but they must disclose their license status.

UnderThe Fair Housing Act (42 U.S.C. § 3604)andThe Americans with Disabilities Act (ADA) (42 U.S.C. § 12101),both service and emotional support animals must be allowed in rental properties, even in "no pets" buildings.

Service animals (such as guide dogs) and emotional support animals (ESA) are not considered "pets" under federal and state law, so landlords cannot prohibit them.

A landlord cannot charge an additional deposit or pet fee for service/support animals.

The tenant must provide documentation from a licensed medical provider if the disability is not obvious, but there is no requirement for a formal "federal registration" of service animals.

Why the other answers are incorrect:

Option B (Charge Additional Deposit):This is illegal under Fair Housing lawsbecause service animals are not "pets".

Option C (No Pets Rule):A no-pets policydoes not applyto service animals.

Option D (Federally Registered Service Animal):There is no federal registryfor service animals, so this is not a valid requirement.

If a real estate license is inactive formore than 5 years, the licenseemust retake and pass the licensing examto reinstate their license.

49 Pa. Code § 35.251 (Relicensure Following Revocation or Inactive Status)states that alicensee who has been inactive for over 5 years must complete all initial licensing requirements again, including the exam.

A licensee can keep their license in inactive status indefinitely, but after 5 years, it requires reexamination.

Why the other answers are incorrect:

Option A (2 Years) & Option B (3 Years):Licenseesmay reactivate their license within this period without retaking the exam.

Option C (4 Years):Thelimit is 5 years, not 4.