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Pennsylvania Regulations Governing the Activities of Licensees — Printable Practice Pack
Pennsylvania state portion · RELRA, the Consumer Notice and the Real Estate Recovery Fund · 20 questions · Answer key on the last page · agentexamcoach.com
1.What is the consequence of a salesperson commingling escrow funds with personal funds?
(A)A warning from the broker
(B)A fine from the State Real Estate Commission
(C)No consequence, as it is allowed
(D)Disciplinary action, including possible license suspension or revocation
2.What is the result of a payout from the Real Estate Recovery Fund?
(A)The licensee's license is revoked
(B)The consumer's court judgment is satisfied
(C)The broker's escrow account is replenished
(D)The licensee's license is suspended until the payout is repaid with interest
3.What is the requirement for a salesperson who receives a check from a buyer as an earnest money deposit?
(A)The salesperson must deposit the check into their personal bank account
(B)The salesperson must hold the check until the sale is finalized
(C)The salesperson must return the check to the buyer
(D)The salesperson must deliver the check to the employing broker's escrow account
4.What is the primary purpose of the broker's escrow or trust account?
(A)To hold the broker's personal funds
(B)To hold the salesperson's personal funds
(C)To pay for marketing expenses
(D)To hold earnest money and deposits from buyers
5.What is the consequence of a licensee commingling escrow funds with their personal funds?
(A)The licensee will receive a warning
(B)The licensee's license will be suspended until the funds are repaid
(C)The licensee will be required to take additional education courses
(D)The licensee will be subject to a fine and possible license revocation
6.What is required of a Pennsylvania salesperson who receives earnest money from a buyer?
(A)To hold it in their own escrow account
(B)To use it to pay for marketing expenses
(C)To give it to the seller
(D)To deliver it promptly to their employing broker
7.Under what circumstances may a Pennsylvania real estate salesperson be subject to license suspension or revocation?
(A)Failure to complete continuing education requirements
(B)Conviction of a felony or misconduct in the practice of real estate
(C)Failure to pay license fees on time
(D)All of the above
8.Which of the following is a prohibited act under RELRA that could result in disciplinary action against a Pennsylvania real estate licensee?
(A)Commingling personal and escrow funds
(B)Practicing law without a license
(C)Both of the above
(D)Neither of the above
9.A Pennsylvania broker fails to supervise their salesperson, resulting in the salesperson's engagement in prohibited conduct. What may happen to the broker's license?
(A)The broker's license will be revoked
(B)The broker's license will be suspended for a period of time
(C)The broker may be subject to a fine
(D)All of the above
10.A broker fails to supervise their salesperson, resulting in the salesperson engaging in unethical conduct. What may happen to the broker's license?
(A)It will be automatically revoked
(B)It will be suspended for a minimum of 30 days
(C)It will not be affected
(D)It may be subject to disciplinary action, including suspension or revocation
11.What is the purpose of the Consumer Notice in Pennsylvania?
(A)To disclose the salesperson's commission rate
(B)To provide a list of recommended home inspectors
(C)To explain the home buying process
(D)To disclose available business relationships, provided at the initial interview
12.A Pennsylvania real estate salesperson wants to change employing brokers. What must the salesperson do first?
(A)Notify the State Real Estate Commission of the change
(B)Complete a new licensing application
(C)Obtain a release from the current broker
(D)Transfer their license to the new broker
13.A Pennsylvania real estate salesperson is found to have converted escrow funds for personal use. What may happen to the salesperson's license?
(A)It will be automatically renewed
(B)It will be suspended for a period of time
(C)It will be revoked
(D)All of the above are possible outcomes
14.A Pennsylvania real estate salesperson is cited for violating the Real Estate Licensing and Registration Act (RELRA). What may be the consequence?
(A)Their license will be automatically renewed
(B)They will receive a warning
(C)They will be required to take additional education courses
(D)They may be fined or have their license suspended or revoked
15.A salesperson is convicted of converting escrow funds for personal use. What is the likely consequence?
(A)The salesperson's license will be suspended
(B)The salesperson will be fined
(C)The salesperson will receive a warning
(D)The salesperson's license will be revoked
16.A Pennsylvania real estate salesperson commingles their personal funds with client escrow funds. What is the nature of this action?
(A)It is a recommended practice for simplicity
(B)It is allowed if the salesperson intends to keep track of the funds separately
(C)It is necessary for tax purposes
(D)It is a prohibited conduct that can lead to license revocation
17.A Pennsylvania real estate salesperson places an advertisement for a property. What must the advertisement include to comply with state regulations?
(A)The salesperson's name and contact information
(B)The name of the property owner
(C)The salesperson's license number
(D)The name of the employing broker
18.What is a violation of the regulations governing escrow accounts in Pennsylvania?
(A)Using a separate, dedicated account for each transaction
(B)Withdrawing escrow funds only with the consent of all parties
(C)Depositing escrow funds into the broker's trust account
(D)Commingling personal funds with escrow funds
19.What is the consequence for a Pennsylvania real estate licensee found to have commingled escrow funds with personal funds?
(A)A warning letter from the State Real Estate Commission.
(B)No action is taken as it is a common practice.
(C)The loss of their real estate license permanently.
(D)A fine and potential suspension of their license.
20.What is prohibited conduct under RELRA §604?
(A)Commingling escrow funds with personal funds
(B)Failing to disclose known material defects in a property
(C)Both A and B
(D)Neither A nor B
Answer key & explanations
1. D — Commingling escrow funds with personal funds is prohibited conduct that may result in disciplinary action, including possible license suspension or revocation.
2. D — A payout from the Real Estate Recovery Fund reimburses a consumer who has an unsatisfied court judgment against a licensee for fraud, misrepresentation, or deceit in a real estate transaction.
3. D — The salesperson must deliver the check to the employing broker's escrow account to avoid commingling and conversion.
4. D — The primary purpose of the broker's escrow or trust account is to hold earnest money and deposits from buyers, which are delivered to the broker by the salesperson.
5. D — Commingling escrow funds with personal funds is a prohibited conduct under RELRA, and the licensee may face a fine and possible license revocation.
6. D — In Pennsylvania, a salesperson who receives funds, such as earnest money, must promptly deliver them to their employing broker, who will then deposit them into the broker's escrow or trust account.
7. D — A salesperson may be subject to license suspension or revocation for failure to complete continuing education, conviction of a felony, or misconduct in the practice of real estate, among other reasons.
8. C — Both commingling personal and escrow funds and practicing law without a license are prohibited acts under RELRA that can result in disciplinary action, including fines, suspension, or revocation of a real estate license.
9. D — A Pennsylvania broker has a duty to supervise their salesperson, and failure to do so may result in the broker being subject to a fine, as well as possible suspension or revocation of their license.
10. D — The broker's license may be subject to disciplinary action, including suspension or revocation, for failing to properly supervise their salesperson.
11. D — The Consumer Notice in Pennsylvania is used to disclose available business relationships, and it must be provided to the consumer at the initial interview.
12. D — The salesperson's license must be transferred to the new broker before the salesperson can start working with the new broker.
13. C — Converting escrow funds is a serious violation that may result in disciplinary action, including license suspension or revocation.
14. D — In Pennsylvania, a salesperson who violates RELRA may face consequences such as fines, suspension, or revocation of their license.
15. D — Converting escrow funds for personal use is a serious violation of RELRA, and the salesperson's license is likely to be revoked as a result.
16. D — Commingling personal funds with client escrow funds is a prohibited conduct that can lead to severe consequences, including license revocation, as it breaches the trust and fiduciary duties owed to clients.
17. D — Advertisements must be done in the name of the employing broker to avoid misleading the public into thinking the salesperson is operating independently.
18. D — Commingling personal or business funds with escrow funds is a serious violation, as it can lead to the misuse of client funds.
19. D — Commingling escrow funds with personal or business funds is a serious violation that can result in fines and potential suspension of the licensee's license, as it jeopardizes the security of client funds.
20. C — Both commingling escrow funds with personal funds and failing to disclose known material defects in a property are prohibited conduct under RELRA §604.
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