RePA_Sales_S PA Salesperson State Exam Question and Answers

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.

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 § 35.284 (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 § 35.305 (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. § 455.304 (Exemptions from Licensing Requirements),most individuals selling their own property are exempt from real estate licensing requirements.However, a real estate licensee selling their own real estate must comply with disclosure laws and ethical obligations.

If a real estate licensee sells their own property, they must disclose in all advertising that they are a licensed real estate professionalto avoid misleading the public.

While a non-licensee selling their own property is not covered under real estate licensing laws, a licensed salesperson must adhere to licensing and disclosure laws.

Why the other answers are incorrect:

Option A (Trustee under Court Order):Court-appointed trustees are exempt from real estate licensing requirements.

Option B (Attorney Representing Clients):Attorneys are permitted to handle real estate transactions as part of their legal practice without a real estate license.

Option D (Licensed Auctioneer):Auctioneers selling real estate are regulated under separate auctioneer licensing laws, not real estate licensing laws.

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.

Under49 Pa. Code § 35.291(Reporting of Crimes and Disciplinary Actions), a real estate licensee may face disciplinary action for engaging inunethical conduct, fraud, or incompetence. One of the reasons listed ishabitual intoxication or drug addiction, as thisimpairsthe licensee’s ability toproperly conduct real estate activities.

A felony conviction (Option D - Incorrect) does not automatically result in disciplinebut is reviewed by the Commission.

Failure to pay taxes (Option C - Incorrect) is a federal issue, not a licensing violation.

Car insurance (Option A - Incorrect) is unrelated to a real estate license.

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 § 35.292 (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.

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.

Under49 Pa. Code § 35.284(Disclosures of Business Relationships), abuyer’s agenthas afiduciary dutyto their client. This means the agent mustact in the buyer's best interestandcommunicate all material informationregarding the transactionto the buyer.

The buyer's agent's primary responsibility is to the buyer (Option B - Correct).

The buyer’s agent does not have any fiduciary duty to the seller (Option A - Incorrect).

The buyer’s agent is not required to inform the listing broker (Option C - Incorrect).

The loan officer does not have the same level of involvement in fiduciary duties as the buyer (Option D - Incorrect).

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.