Pennsylvania Real Estate Commission RePA_Sales_S Practice Exam - 52 Unique Questions
Latest Questions RePA_Sales_S Guide to Prepare Free Practice Tests
NEW QUESTION # 24
What is the MINIMUM number of hours of continuing education which a real estate licensee MUST complete within the license renewal period?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
Explanation:
Under49 Pa. Code § 35.382 (Continuing Education Requirements),a Pennsylvania real estate licensee must complete at least 14 hours of continuing education (CE) during each two-year renewal cycle.
* These courses must be taken through an approved real estate education provider.
* Certain renewal periods may have specific course requirements mandated by the Commission.
Why the other answers are incorrect:
* Option A (10 Hours):Too low; Pennsylvania law requires 14 hours.
* Option B (12 Hours):Falls short of the required minimum.
* Option D (16 Hours):Exceeds the required minimum.
Reference:
49 Pa. Code § 35.382- Continuing Education Requirements
NEW QUESTION # 25
Licensing law in the Commonwealth of Pennsylvania requires that a real estate salesperson be supervised by a licensed real estate broker or a broker-assigned:
- A. Salesperson.
- B. Associate broker.
- C. Transaction coordinator.
- D. Team leader.
Answer: B
Explanation:
Under49 Pa. Code § 35.241 (Supervision and Operation of Offices),a licensed real estate salesperson must be supervised by a broker or an associate broker designated by the broker.
* A broker may assign an associate broker (who has passed the broker exam but does not own the brokerage) to oversee salespersons.
* Salespersons cannot work independently; they must work under the direction of a licensed broker or an assigned associate broker.
Why the other answers are incorrect:
* Option A (Team Leader):A team leader is not a formal supervisory position under Pennsylvania law unless they are an associate broker or broker.
* Option B (Salesperson):A salesperson cannot supervise other salespersons.
* Option D (Transaction Coordinator):A transaction coordinator handles paperwork but does not supervise licensees.
NEW QUESTION # 26
Interest earned on an escrow account is:
- A. Payable subject to an agreement between the parties.
- B. Equally divided between the buyer and seller.
- C. Equally divided between the listing and selling brokers.
- D. Payable to the broker holding the deposit.
Answer: A
Explanation:
Under49 Pa. Code § 35.326 (Escrow Accounts and Interest),interest earned on escrow accounts belongs to the party or parties as determined by the terms of the contract or agreement.
* A broker cannot personally benefit from interest earned on escrow funds unless the contract explicitly allows it.
* The purchase agreement must specify how the interest is handled, whether it is payable to the buyer, seller, or split between parties.
Why the other answers are incorrect:
* Option A (Payable to the Broker):A broker cannot keep interest from an escrow account unless agreed upon in writing.
* Option B (Equally Divided Between Buyer and Seller):Interest division is not automatic; it must be outlined in the contract.
* Option C (Equally Divided Between Brokers):Brokers do not have rights to escrow interest unless explicitly agreed upon.
Reference:
49 Pa. Code § 35.326- Escrow Accounts and Interest
NEW QUESTION # 27
If a client requests to list their home for much more than the comparable market analysis (CMA) recommends, what is the duty of the salesperson?
- A. Require the seller to receive an appraisal before listing the property
- B. Advise the client as to the reason it is in their best interest to list the property closer to the comparable market value
- C. Provide the client financial advice as to how they can invest their assets to earn the amount they would like to receive
- D. Refuse the listing because accepting the listing would violate the Pennsylvania Real Estate Licensing and Registration Act
Answer: B
Explanation:
Areal estate licensee has a fiduciary duty to provide honest, professional advice to their clients, including pricing strategies based oncomparative market analysis (CMA).
* Under 49 Pa. Code § 35.292 (Duties of Licensees Generally), a licensee must act in the best interest of the client, which includes providing realistic pricing guidance.
* If a seller insists on listing at an inflated price, the agent should educate them on the risks, such as longer market time and reduced buyer interest.
* While the agent cannot force a seller to list at a lower price, they must ensure that the client makes an informed decision.
Why the other answers are incorrect:
* Option A (Require an Appraisal):CMAs are typically sufficient for pricing; an appraisal is only required in specific cases (e.g., lender requirements).
* Option B (Refuse the Listing):Overpricing is not illegal, so there is no licensing violation in accepting the listing.
* Option D (Providing Investment Advice):Real estate licensees are not financial advisorsand should not offer investment strategies.
Reference:
49 Pa. Code § 35.292 - Duties of Licensees Generally
NEW QUESTION # 28
A real estate ad in a newspaper placed by a salesperson MUST include the:
- A. Municipality in which the property is located.
- B. Name of the principal.
- C. Legal description of the property.
- D. Employing broker's name and phone number.
Answer: D
Explanation:
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.
Reference:
49 Pa. Code § 35.305- Business Name on Advertisements
NEW QUESTION # 29
The Real Estate Commission does NOT have the power to:
- A. Review escrow accounts.
- B. Certify residential appraisers.
- C. Impose fines.
- D. Suspend or revoke real estate licenses.
Answer: B
Explanation:
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.
NEW QUESTION # 30
A listing agreement must contain all of the following EXCEPT:
- A. The broker's compensation.
- B. The duration of the listing.
- C. The broker's license number.
- D. A description of the services to be provided.
Answer: C
Explanation:
Under49 Pa. Code § 35.332 (Exclusive Listing Agreements), all listing agreements must specify the services provided, the duration of the agreement, and the compensation of the broker. However, there is no requirement to include the broker's license number.
* A listing agreement must clearly state the terms under which the broker will perform services and how they will be compensated.
* The duration of the agreement must also be specified to prevent misunderstandings.
Why the other answers are incorrect:
* Option A (Description of Services):This is a required component of the listing agreement.
* Option B (Duration of Listing):A listing agreement must have a start and end date.
* Option D (Broker's Compensation):Compensation must be clearly stated in the listing agreement.
Reference:
49 Pa. Code § 35.332- Exclusive Listing Agreements
NEW QUESTION # 31
If a salesperson representing a buyer gets information from the seller's agent as to the status of the real estate transaction, what is the buyer's agent REQUIRED to do?
- A. Advise the seller as to the status of the transaction.
- B. Advise the listing broker as to the status of the transaction.
- C. Advise the buyer as to the status of the transaction.
- D. Advise the loan officer as to the status of the transaction.
Answer: C
Explanation:
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).
Reference:
49 Pa. Code § 35.284- Disclosure of Business Relationships
NEW QUESTION # 32
According to the Real Estate Commission, which of the following is REQUIRED to hold a real estate license in Pennsylvania?
- A. An attorney who holds himself out as a provider of brokerage services
- B. A bank selling its foreclosed properties
- C. An individual selling five unimproved lots that she owns
- D. A home builder selling his brand new houses
Answer: A
Explanation:
In Pennsylvania,any person engaging in brokerage activities (such as negotiating sales or leases for compensation) must hold a real estate licenseunless specifically exempted.
* 49 Pa. Code § 35.201 (Definitions) & 63 P.S. § 455.304 (Exemptions)allow attorneys to practice real estate without a license ONLY IF the services are incidental to their legal practice.
* If an attorney advertises as a real estate broker or regularly engages in real estate transactions beyond legal services, they must obtain a real estate license.
Why the other answers are incorrect:
* Option B (Home Builder Selling New Houses):Buildersare exemptwhen selling their ownnewly constructed homes.
* Option C (Banks Selling Foreclosures):Banks areexemptunder63 P.S. § 455.304 (a)(5)since they are not in the business of selling real estate for profit.
* Option D (Selling Five Unimproved Lots):Individuals selling their own propertydo not need a license
, even for multiple lots.
NEW QUESTION # 33
A broker has been hired by a buyer to find an investment property. Upon locating a suitable property listed by another firm, the broker MUST:
- A. Disclose their dual representation, in writing, to both buyer and seller.
- B. Disclose to the listing broker or the seller that they represent the buyer.
- C. Initiate a title search of the property.
- D. Recommend a professional inspection of the property.
Answer: B
Explanation:
Under49 Pa. Code § 35.311 (Duties of Buyer's Agent),a buyer's agent must disclose their relationship to the listing broker or seller before providing substantive services.
* This ensures that all parties understand who represents whom in the transaction.
* Failure to disclose agency relationships could result in ethical violations and penalties from the Pennsylvania Real Estate Commission.
Why the other answers are incorrect:
* Option A (Initiate a Title Search):This is typically done by the buyer's attorney or title company,not the real estate broker.
* Option B (Recommend an Inspection):While good practice,it is not legally required under agency law.
* Option C (Disclose Dual Representation):This is incorrect because the broker is not acting as a dual agent in this case.
Reference:
49 Pa. Code § 35.311- Duties of Buyer's Agent
NEW QUESTION # 34
If a salesperson representing a buyer gets information from the seller's agent as to the status of the real estate transaction, what is the buyer's agent REQUIRED to do?
- A. Advise the seller as to the status of the transaction.
- B. Advise the listing broker as to the status of the transaction.
- C. Advise the buyer as to the status of the transaction.
- D. Advise the loan officer as to the status of the transaction.
Answer: C
Explanation:
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).
NEW QUESTION # 35
The Real Estate Commission is empowered to take action against a licensee who is found to have engaged in any of the following activities EXCEPT:
- A. Failing to furnish a copy of a listing contract to an owner after taking a listing.
- B. Making any substantial misrepresentation.
- C. Failing to provide information requested by the Pennsylvania Real Estate Commission in response to a complaint about the licensee engaging in prohibited acts.
- D. Failing to include the salesperson's name in all advertising.
Answer: D
Explanation:
Under49 Pa. Code § 35.305 (Business Name on Advertisements),advertisements must include the broker' s name but are not required to include the salesperson's name.
* While a salesperson's name may appear in an ad, it is not a required element under Pennsylvania law.
* However, failing to disclose key information in an ad, such as the broker's name, could result in disciplinary action.
Why the other answers are incorrect:
* Option A (Misrepresentation):Misrepresentation is a serious offense and can lead to suspension or revocation.
* Option B (Failing to Provide Listing Contract):Acopy of the listing contract must be furnished to the seller at the time of signing.
* Option D (Failing to Provide Information to the Commission):Failure to respond to an investigation can result in fines, suspension, or revocation.
Reference:
49 Pa. Code § 35.305- Business Name on Advertisements
63 P.S. § 455.303- Prohibited Acts by Licensees
NEW QUESTION # 36
Which of the following is a REQUIRED general duty of a licensee?
- A. Provide assistance with document preparation.
- B. Conduct an independent inspection of the property.
- C. Accept liability and responsibility for acts of the consumer.
- D. Independently verify the accuracy of any representation on a property condition disclosure statement.
Answer: D
Explanation:
Under68 Pa. C.S. §§ 7301-7314 (Real Estate Seller Disclosure Law),a licensee has a duty to ensure that the property condition disclosure statement is complete and accurate as provided by the seller.
* While the licensee does not conduct a formal property inspection, they must not ignore material defects that are apparent or known to them.
* If a licensee knows of an issue that contradicts the seller's disclosure, they must disclose this to the buyer to prevent misrepresentation.
* This protects consumers from fraudulent or misleading property conditions.
Why the other answers are incorrect:
* Option A (Independent Inspection):A licensee is not a home inspectorand is not required to perform a physical inspection.
* Option C (Accept Consumer Liability):A licenseeis not responsible for actions taken by a buyer or seller.
* Option D (Document Preparation Assistance):A licenseecan help explain documents but cannot prepare legal contracts without an attorney.
Reference:
68 Pa. C.S. §§ 7301-7314- Real Estate Seller Disclosure Law
NEW QUESTION # 37
If a licensee advertises prizes as part of a promotion for the sale of real estate, which of the following must be disclosed in the advertisement?
- A. Where the prize was manufactured.
- B. The names of any stores that will exchange the prize.
- C. How many others have won similar prizes.
- D. The fair market value of the prize.
Answer: D
Explanation:
Under49 Pa. Code § 35.305 (Business Name on Advertisements), a real estate licensee must disclose the fair market value of any prizes, gifts, or incentives offered as part of a sales promotion.
* This ensures transparency and prevents misleading advertisements that might influence a consumer's decision based on exaggerated prize values.
* Failure to disclose the fair market value could result in penalties or disciplinary action from the Pennsylvania Real Estate Commission.
Why the other answers are incorrect:
* Option B (Where the Prize Was Manufactured):There is no requirement to disclose where a prize was made.
* Option C (How Many Others Have Won):The law does not require disclosure of the number of previous winners.
* Option D (Names of Stores for Exchange):There is no requirement to provide names of stores that would honor or exchange the prize.
Reference:
49 Pa. Code § 35.305- Business Name on Advertisements
NEW QUESTION # 38
If clients have questions regarding the sale of their home beyond the licensee's expertise, what MUST the salesperson do?
- A. Advise the clients to seek another salesperson to represent them in the transaction.
- B. Seek legal representation for the clients.
- C. Advise the clients to seek expert advice.
- D. Ask their associate broker and advise the clients of the answer.
Answer: C
Explanation:
Under49 Pa. Code § 35.292 (Duties of Licensees Generally), a real estate licensee must not provide professional advice in areas beyond their expertise. If clients need legal, tax, or structural advice, they should be referred to an appropriate expert.
* A real estate licensee should not attempt to answer questions related to law, taxes, or home inspections beyond their knowledge.
* Directing clients to consult an expert ensures that they receive accurate and legally sound advice.
Why the other answers are incorrect:
* Option A (Seek Legal Representation for Clients):A salesperson cannot act as a lawyer or obtain legal representation for clients.
* Option C (Ask Associate Broker and Advise Clients):If the matter is outside of real estate expertise, it must be referred to an expert, not just another broker.
* Option D (Advise Clients to Seek Another Salesperson):This does not solve the issue; clients need advice from the correct professional, not another salesperson.
NEW QUESTION # 39
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