Pennsylvania Real Estate Practice Exam

The Pennsylvania Real Estate Licensing and Registration Act (RELRA) gives the Real Estate Commission the authority to suspend and revoke real estate licenses. After getting a complaint, the Commission will ascertain the facts of the matter, and, if warranted, hold a hearing to suspend or revoke a license. The Commission may suspend or revoke a license if the licensee is found guilty by the Commission at the hearing. RELRA, Chapter 6, 604(a).

When a claimant can establish the above listed items, an application may be made for payment from the Pennsylvania Real Estate Recovery Fund. The commission can pay the application, with court approval. It is important to note that the grounds for payment from the Recovery Fund must be the fraud, misrepresentation or deceit of the licensee, which caused the loss to the claimant.

A reciprocal real estate license in Pennsylvania is a license issued to an out-of-state real estate broker or salesperson from states that have a reciprocal agreement with the Pennsylvania Real Estate Commission. 63 Pa.Stat 602 (Chapter 6). To enter into a reciprocity agreement, a state needs to have qualifications for licensure that are substantially similar to Pennsylvania's real estate standards. Currently, there are five states with reciprocal agreements with Pennsylvania: Arkansas, Georgia, Louisiana, Maryland and Massachusetts. A standard license is issued when a candidate first goes through the license process in Pennsylvania.

A salesperson, by definition, is employed by a broker who owns a real estate company, to carry out the activities of the office. An associate broker is a broker who is employed to work for another broker. 65 Pa.Stat 201 (Chapter 2).

RELRA requires candidates for licensure to have a good reputation for honesty, trustworthiness, integrity and competence to transact the business of real estate as a salesperson to safeguard the interests of the public. 65 PaStat 501 (Chapter 5). The application process has a criminal background check requirement to establish the qualifications of the licensure candidate. Errors & Omissions insurance is not required to be licensed in Pennsylvania.

Under the Real Estate Licensing and Registration Act (RELRA), any person that remains inactive for a period of five years without renewing his or her license must take and pass the examination pertinent to the license for which he or she is reapplying. RELRA, Chapter 5, 501(b).

Supervisory brokers must monitor their licensee's behavior and practice. Training and mentoring are also expected activities as part of supervisory duties. If a licensee violates a state or federal law, the supervisory broker can also be culpable, because of the nature of their role as supervisor. Sarah's discrimination is illegal in any professional capacity. Fair Housing laws and the NAR Code of Ethics prohibits discrimination based on the basis of race. Further, Broker Sam may have his license suspended or revoked under the Pennsylvania Real Estate Licensing and Registration Act for failure to adequately supervise his licensee. 63 Pa.Stat 604(a)(16).

The Pennsylvania Real Estate Licensing and Registration Act requires there to be in place a signed agreement between the licensee and the consumer setting forth the nature of the services to be provided and the fee to be charged (be it a fee, commission or other valuable consideration) in order for the licensee to be entitled to payment. 63 Pa.Stat 606.1(b)(1). There are other provisions which must be in the agreement as well. See 63 Pa.Stat. 608.1. The signed agreement does not need to be in place before the services are provided, but the licensee is not entitled to payment until there is a signed agreement.

Commission regulations require real estate agents to provide a consumer notice at the initial interview with persons considering buying a time share. 49 Pa.Code 35-284(c). The Consumer Notice is a particular form that discloses to the consumer the role the agent plays, as the owner, employee of the owner or as an agent of the owner pursuant to a property management or leasing or selling agreement. 49 Pa.Code 35-338. It must be signed by the consumer and the consumer must be given a copy of the notice. 49 Pa.Code 35-338; 35-284(d).