Free Pennsylvania real estate practice exam

Answer key and explanations

Every answer, with the reasoning. Work through the ones you missed — that list is your study plan.

1. Question 1 — answer D

   A city takes possession of a property through eminent domain and pays the owner fair market value. What happens to the title of the property?

   When a property is taken through eminent domain, the city takes title to the property, and the owner is compensated with fair market value.

2. Question 2 — answer D

   A property owner installs a new, built-in oven in their kitchen. What type of property is the oven considered?

   The oven is considered a fixture because it is a built-in appliance attached to the real property.

3. Question 3 — answer D

   Which of the following is an example of an encroachment?

   An encroachment occurs when a property owner's improvement, such as a tree branch, extends beyond their property line and onto a neighboring property.

4. Question 4 — answer A

   What is the term for the process by which the state takes ownership of a property when the owner dies without a will or heirs?

   Escheat is the process by which the state takes ownership of a property when the owner dies without a will or heirs, and there are no other claimants to the property.

5. Question 5 — answer D

   What is the term for a law that regulates the use of private property for the benefit of the public?

   Police power refers to the authority of the government to regulate the use of private property for the benefit of the public.

6. Question 6 — answer D

   What is the term for a governmental power to take private property for public use, requiring just compensation to be paid to the property owner?

   Eminent domain is the power of the government to take private property for public use, with the requirement that the property owner be paid just compensation for the taking.

7. Question 7 — answer D

   What is the difference between a fixture and a trade fixture?

   A fixture is attached to the property and is intended to be permanent, while a trade fixture is a type of fixture that is used in a business and is intended to be removable.

8. Question 8 — answer A

   A property owner grants an easement to a neighboring property owner, allowing them to use a shared driveway. What type of easement is this?

   An appurtenant easement is an easement that benefits a neighboring property, in this case, the shared driveway.

9. Question 9 — answer A

   A property owner installs a new fence that encroaches onto a neighboring property. What type of issue is this?

   An encroachment occurs when a property owner's improvement, such as a fence, extends onto a neighboring property without permission.

10. Question 10 — answer A

    A utility company has the right to access a property to maintain its power lines. What is this an example of?

    An easement is a right granted to another party to use a property for a specific purpose, such as maintaining power lines.

11. Question 11 — answer D

    A free-standing refrigerator in a rental property is considered what type of property?

    A free-standing refrigerator is not attached to the property and is therefore considered personal property.

12. Question 12 — answer D

    A property owner conveys their interest in a property to a buyer using a general warranty deed. What type of protection does this deed provide to the buyer?

    A general warranty deed provides protection to the buyer against title defects and encumbrances, including those that may arise in the future.

13. Question 13 — answer D

    A deed must include which of the following elements to be considered valid?

    A deed must include a description of the property being conveyed to be considered valid.

14. Question 14 — answer D

    A buyer purchases a property with a valid deed, but does not record it. What is the effect on the buyer's title?

    A deed is valid and transfers title upon delivery and acceptance, but recording is necessary to protect the buyer's priority against subsequent purchasers.

15. Question 15 — answer A

    Which type of deed warrants that the grantor has the right to convey the property and that the property is free from encumbrances?

    A general warranty deed provides the broadest protection for the buyer, warranting that the grantor has the right to convey the property and that the property is free from encumbrances.

16. Question 16 — answer D

    What is the primary purpose of a title search?

    A title search is the process of examining the historical record of ownership to identify any defects in the chain of title.

17. Question 17 — answer D

    A title search reveals a defect in the chain of title. What is the purpose of title insurance in this situation?

    Title insurance protects the buyer against losses due to defects in title, including errors or omissions in the chain of title.

18. Question 18 — answer D

    What is the primary purpose of recording a deed?

    Recording a deed provides constructive notice to potential buyers that the property has been sold and who the new owner is, protecting the buyer's priority.

19. Question 19 — answer D

    A title search is being conducted on a property. What is the primary purpose of this search?

    The primary purpose of a title search is to identify any defects in title and ensure that the seller has the right to convey the property.

20. Question 20 — answer D

    Which freehold estate provides the most complete ownership rights?

    Fee simple absolute is the highest form of ownership — the full bundle of rights, indefinitely. A life estate ends at a life; defeasible estates carry conditions; an estate for years is leasehold.

21. Question 21 — answer D

    The concept of highest and best use considers which of the following factors?

    The concept of highest and best use considers the property's legally permissible, physically possible, financially feasible, and maximally productive uses.

22. Question 22 — answer A

    Which of the following is a key factor in determining a property's value using the cost approach?

    The cost approach estimates a property's value by calculating the cost to replace or reproduce the property, minus depreciation.

23. Question 23 — answer D

    What is the primary benefit of appraiser independence in the appraisal process?

    Appraiser independence ensures that the appraiser is not influenced by external factors, such as the client's interests, and can provide an unbiased estimate of the property's value.

24. Question 24 — answer D

    A property has a physical depreciation of 20% due to wear and tear. What type of depreciation is this an example of?

    Physical depreciation refers to the decline in a property's value due to wear and tear, deterioration, or damage.

25. Question 25 — answer D

    What type of depreciation occurs when a property's design or layout is no longer functional or desirable?

    Functional depreciation occurs when a property's design or layout is no longer functional or desirable, such as an outdated floor plan.

26. Question 26 — answer D

    Which type of depreciation is caused by external factors, such as proximity to a busy highway?

    External depreciation is caused by factors outside the property itself, such as proximity to a busy highway or an environmental hazard.

27. Question 27 — answer D

    A Broker Price Opinion (BPO) is an estimate of a property's value provided by

    A BPO is an estimate of a property's value provided by a real estate broker or agent, often used for REO properties or other situations where a full appraisal is not necessary.

28. Question 28 — answer D

    A property appraiser is preparing a report for a client. Which approach to value would involve analyzing the income generated by the property?

    The income approach to value involves analyzing the income generated by a property, such as rental income, to estimate its value.

29. Question 29 — answer D

    A property's market value is best described as its

    Market value is the price a property would likely sell for in a competitive market with a willing buyer and seller.

30. Question 30 — answer D

    The income approach to value is most suitable for

    The income approach to value is most suitable for commercial properties with rental income, as it estimates value based on the property's potential to generate income.

31. Question 31 — answer D

    An appraiser is estimating the value of an income-producing property using the income approach. What is the primary factor being considered?

    The income approach estimates the value of an income-producing property based on its net operating income, which is the income generated by the property after expenses.

32. Question 32 — answer D

    A seller's agent breaches their fiduciary duty of confidentiality by disclosing the seller's personal information. What is the likely consequence for the agent?

    Breaching the fiduciary duty of confidentiality can result in loss of license, fines, and civil lawsuits against the agent.

33. Question 33 — answer D

    A real estate contract contains a contingency for financing. If the buyer is unable to secure financing, what happens to the contract?

    If the buyer is unable to secure financing, the contract is terminated and the buyer's earnest money is typically refunded.

34. Question 34 — answer D

    A real estate agent is working with a buyer to purchase a property. What is the agent's fiduciary duty of confidentiality?

    The agent's fiduciary duty of confidentiality requires them to keep all information about the buyer confidential, unless authorized to disclose, in order to maintain the buyer's trust and protect their interests.

35. Question 35 — answer D

    A seller's agent has a fiduciary duty to disclose all known facts about the property to potential buyers. What is the extent of this duty?

    The seller's agent has a fiduciary duty to disclose all known facts about the property that could affect the buyer's decision, including any known defects or issues.

36. Question 36 — answer D

    A seller's agent is working with a buyer who is not their client. What is the agent's primary duty to the buyer?

    A seller's agent has a duty to treat the buyer honestly and fairly, but their primary duty is to the seller.

37. Question 37 — answer D

    A buyer makes an offer to purchase a property with a contingency for financing. The seller responds with a counteroffer that changes the price. What is the effect on the original offer?

    A counteroffer terminates the original offer, and the buyer can choose to accept or reject the counteroffer.

38. Question 38 — answer D

    What is the primary purpose of an earnest money deposit?

    The earnest money deposit demonstrates the buyer's good faith and commitment to the purchase, and is typically forfeited if the buyer backs out of the contract without a valid reason.

39. Question 39 — answer D

    A real estate agent is working as a general agent for a client. What type of authority does the agent have?

    A general agent has broad authority to act on behalf of the client in all matters related to the client's real estate interests.

40. Question 40 — answer D

    A buyer's agent is working with a client to purchase a property. What is the agent's fiduciary duty in this situation?

    The buyer's agent has a fiduciary duty to act in the best interests of the buyer, which includes duties of obedience, loyalty, disclosure, accounting, and confidentiality.

41. Question 41 — answer D

    A buyer and seller enter into a contract with a contingency for inspection. The buyer discovers a major defect during the inspection. What can the buyer do?

    The buyer can terminate the contract and receive a refund of earnest money, request the seller to repair the defect, or negotiate a reduction in price, depending on the terms of the contract and the parties' agreements.

42. Question 42 — answer D

    What happens to a buyer's earnest money deposit if the buyer breaches the contract and fails to close the transaction?

    If a buyer breaches the contract and fails to close the transaction, the earnest money deposit may be forfeited to the seller as liquidated damages.

43. Question 43 — answer D

    A buyer and seller enter into a contract that is subject to a financing contingency. If the buyer is unable to secure financing,

    If the buyer is unable to secure financing and the contract is subject to a financing contingency, the contract is terminated and the earnest money is returned.

44. Question 44 — answer D

    How is an agency relationship created in real estate?

    An agency relationship can be created by a written agreement, a verbal agreement, or by the agent's actions and conduct, which imply an agency relationship.

45. Question 45 — answer D

    A real estate agent is working with a buyer and seller in a transaction. What must the agent disclose to both parties?

    The agent must disclose the agency relationship and who they represent to both parties in the transaction.

46. Question 46 — answer D

    A buyer's agent fails to disclose the agency relationship to the seller. What is the potential consequence?

    Failing to disclose the agency relationship can result in liability for damages, rescission of the sale, or even license revocation.

47. Question 47 — answer D

    A buyer backs out of a contract to purchase a property. What is the seller's primary remedy?

    The seller's primary remedy is to keep the earnest money as liquidated damages, as it is a deposit that demonstrates the buyer's good faith and commitment to the purchase.

48. Question 48 — answer A

    A group of real estate agents agree to fix their commission rates at a certain percentage. What federal law are they potentially violating?

    The Sherman Antitrust Act prohibits price-fixing and other anti-competitive practices, including agreements among competitors to fix commission rates.

49. Question 49 — answer D

    A real estate sales agent is found to have commingled client funds with their own funds in a trust account. What is the likely consequence of this action?

    Commingling client funds with personal funds is a serious violation of trust account rules and can result in fines and possible license revocation.

50. Question 50 — answer D

    A sales agent is working with a buyer who is looking for a home in a specific school district. The buyer mentions that they want to avoid areas with a high concentration of families with young children. What should the sales agent do?

    The sales agent should inform the buyer that they cannot discriminate based on familial status, as it is a protected class under the Federal Fair Housing Act.

51. Question 51 — answer A

    The Real Estate Settlement Procedures Act (RESPA) prohibits

    RESPA prohibits kickbacks and referral fees between settlement service providers, such as title companies and mortgage brokers, to prevent unfair and deceptive practices.

52. Question 52 — answer A

    A real estate sales agent is working with a buyer who is looking for a home in a specific neighborhood. The buyer asks the agent if a particular house is located in a 'good' school district. Which of the following responses by the agent would be a violation of the Federal Fair Housing Act?

    The agent's response stating the racial demographics of the neighborhood would be a violation of the Federal Fair Housing Act, as it discriminates based on race.

53. Question 53 — answer D

    A real estate agent is showing homes to a client with a disability. What is the agent's responsibility under the Americans with Disabilities Act (ADA)?

    The agent must inform the client of any known accessibility features or limitations of the properties to ensure the client can make an informed decision.

54. Question 54 — answer A

    A real estate agent is making calls to potential clients, but is not registered with the National Do-Not-Call registry. What is the potential consequence of this action?

    The agent may be subject to a fine from the Federal Trade Commission for violating the Do-Not-Call registry rules.

55. Question 55 — answer D

    A real estate agent is handling trust funds on behalf of a client. What is the agent's primary responsibility?

    The agent's primary responsibility is to maintain the trust funds in a separate, escrow account, ensuring that the funds are kept secure and separate from the agent's own money.

56. Question 56 — answer D

    A real estate agent is handling client funds in a trust account. What is the agent's primary responsibility regarding these funds?

    When handling client funds in a trust account, the agent has a fiduciary duty to keep the funds separate from the agent's own money and use them only for the client's benefit.

57. Question 57 — answer A

    A real estate broker is found to have fixed prices with a competitor, which is a violation of

    Price-fixing is a violation of federal antitrust law, which prohibits agreements between competitors that restrain trade or commerce.

58. Question 58 — answer A

    A buyer purchases a property that contains asbestos. Who is potentially liable for the cost of asbestos removal?

    The seller may be liable for the cost of asbestos removal if they knew about the asbestos and did not disclose it to the buyer.

59. Question 59 — answer D

    What is the purpose of the lead-based paint disclosure form required for properties built before 1978?

    The lead-based paint disclosure form is required to disclose the presence of lead-based paint, the risks associated with it, and to provide the buyer with a 10-day period to inspect for lead-based paint.

60. Question 60 — answer D

    A seller fails to disclose a material defect in the property's foundation. What is the buyer's remedy?

    The buyer's remedy for a seller's failure to disclose a material defect is typically damages for breach of contract, as the buyer can seek compensation for the costs of repairing the defect.

61. Question 61 — answer D

    Which environmental hazard is commonly associated with older buildings and can pose health risks to occupants?

    All of the above options (radon, asbestos, and mold) are environmental hazards that can be associated with buildings and pose health risks to occupants.

62. Question 62 — answer A

    A buyer is purchasing a home in a wetland area. What type of environmental concern should the buyer be aware of?

    Wetland areas are prone to flooding, which can pose a risk to the property and the buyer's investment.

63. Question 63 — answer D

    Which of the following is a requirement for sellers of properties built before 1978?

    Sellers of properties built before 1978 are required to disclose the presence of lead-based paint and provide a lead hazard information pamphlet to buyers.

64. Question 64 — answer D

    A property is located near a wetland, which is a protected environmental area. What law may apply to this property?

    The Clean Water Act and CERCLA may apply to a property located near a wetland, as these laws regulate environmental hazards and protected areas.

65. Question 65 — answer A

    A seller of a pre-1978 residential property is required to provide which of the following disclosures to the buyer?

    The seller is required to provide both a lead-based paint disclosure and a Seller's Disclosure Notice to the buyer.

66. Question 66 — answer A

    A seller is required to disclose the presence of an underground storage tank on their property. What is the primary reason for this disclosure requirement?

    The primary reason for disclosing the presence of an underground storage tank is to inform the buyer of a potential environmental hazard, as these tanks can leak and contaminate soil and groundwater.

67. Question 67 — answer D

    A buyer is obtaining a mortgage with a loan-to-value ratio of 82%. What is the likely result regarding private mortgage insurance?

    The buyer will be required to pay private mortgage insurance because the loan-to-value ratio exceeds 80%.

68. Question 68 — answer D

    A borrower signs a promissory note with an acceleration clause. What does this clause do?

    An acceleration clause in a promissory note allows the lender to demand full payment of the loan if the borrower misses a payment or defaults.

69. Question 69 — answer B

    A lender charges the borrower 2 points on a $200,000 loan. How much will the borrower pay in points?

    Points are calculated as a percentage of the loan amount, so 2 points on a $200,000 loan would be $4,000.

70. Question 70 — answer D

    A borrower signs a promissory note and a deed of trust to secure a loan. Which clause in the deed of trust allows the lender to demand full payment if the borrower sells the property?

    The alienation clause, also known as a due-on-sale clause, allows the lender to demand full payment if the borrower sells the property.

71. Question 71 — answer D

    What type of loan is guaranteed by the Department of Veterans Affairs and typically requires no down payment?

    VA loans are guaranteed by the Department of Veterans Affairs and often require no down payment.

72. Question 72 — answer A

    A borrower is charged points on a loan. What are points?

    Points are a type of loan origination fee, which is a percentage of the loan amount charged by the lender as a fee for making the loan.

73. Question 73 — answer D

    Which of the following loans is guaranteed by the Department of Veterans Affairs?

    VA loans are guaranteed by the Department of Veterans Affairs, which provides a guarantee to the lender in the event of default.

74. Question 74 — answer D

    How many square feet are in a 1-acre parcel? (1 acre = 43,560 sq ft)

    1 × 43,560 = 43,560 sq ft.

75. Question 75 — answer A

    A property valued at $260,000 is assessed at 25% of value. The tax rate is $2.00 per $100 of assessed value. What is the annual tax?

    Assessed = $260,000 × 25% = $65,000. Tax = ($65,000 ÷ 100) × 2 = $1,300.

76. Question 76 — answer A

    A property valued at $330,000 is assessed at 50% of value. The tax rate is $2.00 per $100 of assessed value. What is the annual tax?

    Assessed = $330,000 × 50% = $165,000. Tax = ($165,000 ÷ 100) × 2 = $3,300.

77. Question 77 — answer D

    A lender charges 3 discount points on a $200,000 loan. One point equals 1% of the loan amount. What is the cost of the points?

    3 points = 3% of $200,000 = $6,000.

78. Question 78 — answer D

    A home sells for $520,000 with a 7% commission and no other closing costs. What does the seller net?

    Commission = $520,000 × 7% = $36,400. Net = $520,000 − $36,400 = $483,600.

79. Question 79 — answer D

    An investor bought a property for $320,000 and wants to sell it for a 10% profit. What must the sale price be?

    Sale price = cost × (1 + profit%) = $320,000 × 1.1 = $352,000.

80. Question 80 — answer D

    A commercial property has a net operating income of $46,000 and the market cap rate is 10%. Using the income approach, what is its estimated value?

    Value = NOI ÷ cap rate = $46,000 ÷ 10% = $460,000.

81. Question 81 — answer A

    How does a consumer apply for payment from the Real Estate Recovery Fund?

    A consumer applies for payment from the Real Estate Recovery Fund by filing a complaint with the Pennsylvania State Real Estate Commission.

82. Question 82 — answer D

    A consumer has filed a complaint with the Pennsylvania State Real Estate Commission against a real estate licensee. What is the next step in the process?

    When a complaint is filed with the Pennsylvania State Real Estate Commission, the Commission will conduct an investigation to determine the validity of the complaint and whether the licensee has violated any laws or regulations.

83. Question 83 — answer D

    What type of conduct is grounds for disciplinary action by the Pennsylvania State Real Estate Commission?

    The Pennsylvania State Real Estate Commission can take disciplinary action against a licensee for fraud, misrepresentation, or deceit in a real estate transaction.

84. Question 84 — answer D

    What is the result of a finding of fraud, misrepresentation, or deceit by the Pennsylvania State Real Estate Commission?

    A finding of fraud, misrepresentation, or deceit by the Pennsylvania State Real Estate Commission can result in disciplinary action, including possible payment from the Real Estate Recovery Fund to reimburse a consumer who has an unsatisfied court judgment against the licensee.

85. Question 85 — answer D

    Who is eligible to file a complaint with the Pennsylvania State Real Estate Commission?

    Any consumer who believes they have been harmed by a real estate licensee can file a complaint with the Pennsylvania State Real Estate Commission.

86. Question 86 — answer D

    What is a requirement for a salesperson to obtain a real estate license in Pennsylvania, in addition to completing the required pre-licensing education?

    In Pennsylvania, a salesperson must be sponsored by an employing broker to obtain a real estate license.

87. Question 87 — answer D

    How many hours of approved pre-licensing education are required for a Pennsylvania real estate salesperson license?

    A Pennsylvania real estate salesperson license requires 75 hours of approved pre-licensing education.

88. Question 88 — answer D

    In Pennsylvania, a salesperson's license is renewed:

    A salesperson's license in Pennsylvania is renewed biennially.

89. Question 89 — answer D

    Who is the only party that can compensate a real estate salesperson for their services?

    A real estate salesperson can only be compensated by their employing broker.

90. Question 90 — answer D

    What is the term of a Pennsylvania real estate salesperson license?

    Pennsylvania real estate salesperson licenses renew biennially.

91. Question 91 — answer A

    What is the minimum age requirement for an individual to be eligible for a Pennsylvania real estate salesperson license?

    The minimum age requirement for a Pennsylvania real estate salesperson license is 18 years old.

92. Question 92 — answer D

    What type of license is required for an individual to list rental properties for a fee in Pennsylvania?

    In Pennsylvania, a rental listing referral agent license is required to list rental properties for a fee.

93. Question 93 — answer A

    What is the minimum age to be eligible for a real estate salesperson license in Pennsylvania?

    The minimum age to be eligible for a real estate salesperson license in Pennsylvania is 18 years old.

94. Question 94 — answer D

    A Pennsylvania real estate salesperson meets with a buyer to discuss representation. What must the salesperson provide to the buyer at this initial interview?

    The Consumer Notice must be provided at the initial interview to disclose the available business relationships in Pennsylvania, including seller agent, buyer agent, dual agent, designated agency, and transaction licensee.

95. Question 95 — answer D

    In a designated agency relationship, which of the following is true?

    In a designated agency relationship, the designated agent represents only one party, either the buyer or the seller.

96. Question 96 — answer D

    Which of the following business relationships is permitted in Pennsylvania with written consent of all parties?

    Dual agency is a permitted business relationship in Pennsylvania, but it requires written consent from all parties involved.

97. Question 97 — answer D

    What determines the agency relationship in Pennsylvania?

    The agency relationship is determined by the written agreement between the parties, not by the amount of compensation paid.

98. Question 98 — answer D

    A buyer and seller have both agreed to be represented by the same real estate broker in a transaction. What type of relationship can this broker have with both parties, with their written consent?

    With written consent from all parties, a broker can act as a dual agent, representing both the buyer and the seller in the same transaction.

99. Question 99 — answer D

    A Pennsylvania real estate salesperson is working as a buyer agent. What is the salesperson's duty of loyalty?

    As a buyer agent, the salesperson's duty of loyalty is to act in the best interests of the buyer.

100. Question 100 — answer D

     What is required for a dual agent to represent both the buyer and seller in the same transaction in Pennsylvania?

     Dual agency is permitted in Pennsylvania with the written consent of all parties involved.

101. Question 101 — answer A

     A real estate salesperson is working with a buyer and discovers a material defect in the property. What must the salesperson do?

     The salesperson must disclose the material defect to the buyer, as honesty and disclosure are required duties.

102. Question 102 — answer D

     When must a Pennsylvania real estate licensee provide the Consumer Notice to a potential client?

     The Consumer Notice must be provided at the initial interview to disclose available business relationships.

103. Question 103 — answer D

     A real estate salesperson in Pennsylvania is working with a buyer and a seller in the same transaction. With written consent from both parties, the salesperson can act as a:

     Dual agency is permitted in Pennsylvania with written consent from all parties.

104. Question 104 — answer D

     What happens to a salesperson's license when they change brokers in Pennsylvania?

     In Pennsylvania, a salesperson's license must be transferred to the new broker before the salesperson can work for the new broker.

105. Question 105 — answer D

     A Pennsylvania real estate salesperson is found to have engaged in prohibited conduct under RELRA §604. What may happen to the salesperson's license?

     The salesperson's license may be suspended, revoked, or subject to other disciplinary action, depending on the circumstances of the prohibited conduct.

106. Question 106 — answer D

     A Pennsylvania real estate salesperson advertises a property for sale without including the name of their employing broker. What type of advertisement is this?

     This is a blind ad, which is prohibited in Pennsylvania because it does not include the name of the employing broker.

107. Question 107 — answer D

     A Pennsylvania real estate salesperson is found guilty of commingling client funds with personal funds. What is a potential consequence?

     Commingling is a serious violation that can result in the suspension or revocation of a real estate license in Pennsylvania.

108. Question 108 — answer D

     In Pennsylvania, what is the required procedure for handling earnest money deposits in a real estate transaction?

     The deposit should be placed in the broker's escrow account, where it will be held until the transaction is completed or terminated.

109. Question 109 — answer D

     A broker fails to supervise a salesperson, resulting in the salesperson's unauthorized practice of law. What may happen to the broker's license?

     The broker's license may be suspended or revoked, depending on the severity of the offense, as the broker has a responsibility to supervise their salespeople and prevent unauthorized practice of law.

110. Question 110 — answer D

     A Pennsylvania real estate salesperson creates an advertisement for a property without including the name of their employing broker. What is the result?

     In Pennsylvania, advertising must be done in the name of the employing broker, and blind ads that omit the broker's name are prohibited.

111. Question 111 — answer D

     What is the consequence for a Pennsylvania real estate licensee who is found to have engaged in unlawful acts under RELRA §604 and has a payout from the Real Estate Recovery Fund?

     A payout from the Real Estate Recovery Fund due to a licensee's unlawful acts results in the suspension of the licensee's license until the amount is repaid with interest.

112. Question 112 — answer D

     A salesperson in Pennsylvania is working under a broker and decides to change brokers. What must the salesperson do first?

     The salesperson must transfer their license to the new broker before starting work, as a salesperson must always be affiliated with a broker to practice.

113. Question 113 — answer D

     A Pennsylvania real estate salesperson engages in conduct that is considered unlawful under RELRA §604. What may happen to the salesperson's license?

     The salesperson's license may be suspended or revoked if they engage in conduct that is considered unlawful under RELRA §604.

114. Question 114 — answer D

     What is the consequence of a salesperson commingling escrow funds with personal funds?

     Commingling escrow funds with personal funds is prohibited conduct that may result in disciplinary action, including possible license suspension or revocation.

115. Question 115 — answer A

     A rental property owner is refusing to rent to a prospective tenant because of their age. What law has the owner potentially violated?

     The Pennsylvania Human Relations Act protects against discrimination based on age.

116. Question 116 — answer D

     Under the Pennsylvania Seller's Property Disclosure Law, what must a seller deliver to the buyer before the buyer signs the agreement of sale?

     The seller must deliver a written disclosure of known material defects to the buyer before the buyer signs the agreement of sale.

117. Question 117 — answer A

     A salesperson is working with a buyer who is interested in purchasing a condominium. What law governs the condominium association's documents and procedures?

     The Uniform Condominium Act governs condominium associations and their documents and procedures.

118. Question 118 — answer A

     Which of the following is a protected class under the Pennsylvania Human Relations Act that is not protected under federal law?

     The Pennsylvania Human Relations Act protects additional classes beyond federal law, including ancestry, age, and the use of a guide or support animal.

119. Question 119 — answer A

     A Pennsylvania real estate salesperson is working with a buyer who wants to purchase a time-share. What should the salesperson do?

     The salesperson should provide the buyer with a public offering statement, which contains important information about the time-share.

120. Question 120 — answer D

     A salesperson is working with a buyer who is interested in purchasing a condominium. What document should the salesperson review to understand the condominium's governance structure?

     The condominium's bylaws outline the governance structure and rules of the condominium.

Common questions