Real Estate Fundamentals: Mid-term Exam

In order to sit for the broker's examination for a Pennsylvania broker's license, it is necessary to have completed 240 hours of classroom instruction. This means that the statement is true.

The main or branch office of a broker shall be under the direction of a broker or associate broker. This means that only someone who holds a broker or associate broker license can be in charge of the main or branch office of a broker. This ensures that the person in charge has the necessary knowledge and experience to oversee the operations of the office and ensure compliance with relevant regulations and laws.

A licensee is required to disclose their agency relationship to a prospective buyer before the buyer makes a valid offer. This is important because it allows the buyer to understand the licensee's role and potential conflicts of interest. By disclosing this information upfront, the buyer can make an informed decision about whether to continue working with the licensee. Therefore, the statement that it is not necessary for a licensee to inform the prospective buyer about their agency relationship until after a valid offer is made is false.

A licensee may not advertise the sale or lease of real estate without the approval of the seller or lessor, even if the complete address of the real estate is not given in the advertisement.

In Pennsylvania, it is mandatory for licensees to have contracts, commitments, and agreements in writing. This ensures that all parties involved have a clear understanding of the terms and conditions. Having written documentation also helps in case of any disputes or legal issues that may arise in the future. Therefore, the statement "Contracts, commitments, and agreements by Pennsylvania licensees MUST be in writing" is true.

Before an agreement of sale is executed, the brokers involved in the transaction are required to provide each party with a written estimate of the expenses that the party may be expected to pay. These expenses include brokers commission, mortgage payments and financing costs, taxes and assessments, and settlement expenses. This ensures that both parties are aware of the potential costs associated with the sale before entering into the agreement. Therefore, the statement is true.

A licensee is required to disclose any ownership interest they have in a property when participating in a real estate transaction. This is to ensure transparency and avoid any conflicts of interest. Failing to disclose such an interest could lead to legal consequences and damage the licensee's professional reputation. Therefore, the statement that a licensee may participate in a real estate transaction without disclosing their ownership interest is false.

Employees of a public utility acting in the ordinary course of utility-related business do not need a real estate license to sell real estate in Pennsylvania. This is because their role involves negotiating the purchase, sale, or lease of a property as part of their utility-related business, which is exempt from the requirement of a license. Similarly, a person acting as a trustee under the authority of a will also does not need a license to sell real estate in Pennsylvania.

A licensee is not allowed to provide assurances or advice about a real estate transaction if they know or should reasonably know that the information is incorrect, inaccurate, or improbable. This means that they cannot mislead or provide false information to clients or customers. They are expected to provide accurate and reliable information to ensure transparency and fairness in real estate transactions.

In a dispute over entitlement to money held in escrow by a broker in a real estate transaction, the correct answer is that the broker shall retain the money until the dispute is resolved. This is because the broker is the neutral party responsible for holding the funds and ensuring they are distributed according to the terms of the transaction. By retaining the money, the broker can prevent either party from accessing it until a resolution is reached, protecting the interests of both parties involved in the dispute.

A licensee is required to inform the Commission of their affiliation with a parent real estate company, regardless of whether the parent company is a large franchisor or not. The size or nature of the parent company does not exempt the licensee from this requirement. Therefore, the correct answer is false.

An advertisement for the sale or lease of real estate must include the business name and telephone number of the employing broker, regardless of whether the broker is receiving a commission or not. This is to ensure transparency and provide potential buyers or lessees with a means of contacting the broker for further information or inquiries.

The true statement concerning office requirements for brokers and cemetery brokers is that the business name must be prominently displayed in a permanent fashion outside the office.

The current license of a broker, cemetery broker, and a rental listing referral, agent must be displayed at the main office.

The listing agreement should include the existence of the Real Estate Recovery Fund, payments received by the broker, the broker's commission and listing period duration determined through negotiations between the broker and seller. However, the buyer's occupation is not typically required to be stated in the listing agreement.

There are 11 members on the Pennsylvania Real Estate Commission.

Must disclose the broker's commission at the initial interview before the seller enters into a listing agreement.

Must disclose at initial interview before the seller enters into a listing agreement.

When a broker or cemetery broker has their license suspended by the Commission, they are required to return their license to the Commission. Additionally, they must post a notice of the Commission's actions at both the main office and any branch offices they have. This notice, provided by the Commission, should be prominently displayed or placed near the public entrance of each office. Therefore, the statement "True" is correct.

The correct answer is "by the end of the next business day." This means that a broker must deposit money belonging to another into an escrow account within one business day after receiving it. This ensures that the funds are securely held and protected for the rightful owner in a timely manner.

Requirement includes 16 credits (240 hours) of classroom instruction

After passing the PA State Examination, the applicant for a Pennsylvania Salesperson license must apply for the license within 3 years. This means that there is a three-year window of opportunity for the applicant to complete the necessary paperwork and submit the application for their license. It is important for the applicant to be aware of this deadline and not delay their application process beyond the three-year timeframe.

The statement is true because an agreement of sale executed by the seller should include the zoning classification of the property, unless the property is specifically zoned for single-family dwellings. This information is important for the buyer to understand the permitted uses and restrictions on the property. Without the zoning classification, the buyer may not have a clear understanding of what they can do with the property or if there are any limitations or regulations they need to adhere to.

If a licensee allows their license to remain inactive for a period of 5 years without renewing it, they will need to submit to and pass the examination relevant to the license they are applying for before it can be reissued to them.

The correct answer is that applicants for a Broker's license in Pennsylvania must be at least 21 years of age, a high school graduate, and have completed 240 hours in real estate instruction. This is because the question states that applicants must meet the requirements prior to taking the state exam, and these are the specific requirements listed in the answer choice.

The correct answer is "appointed by the Governor of Pennsylvania." This means that the Governor of Pennsylvania has the authority to select and appoint individuals to serve as members of the Pennsylvania Real Estate Commission. This process allows the Governor to choose individuals who are qualified and suitable for the position, ensuring that the commission is comprised of competent members who can effectively regulate and oversee real estate activities in the state.

An exclusive listing agreement is a contract between a property owner and a real estate agent, granting the agent the exclusive right to sell or lease the property within a specified period. The agreement typically includes details such as the expected commission on the sale or lease price, the sale or lease price itself, and the duration of the agreement. However, it is not common for an exclusive listing agreement to have a listing period exceeding 1 year.

According to the statement, a salesperson cannot assist in the management of a real estate office until they have completed the required classroom instruction, passed the PA Broker's Exam, and obtained a broker's or associate broker's license. This implies that the salesperson must fulfill these requirements before being allowed to participate in the management of a real estate office. Therefore, the statement is true.

The PA Real Estate Commission does not allow relicensure of an individual whose license has been revoked for at least 5 years following the date of revocation. This means that if someone's license has been revoked, they will have to wait a minimum of 5 years before they can apply for relicensure.

In the Commonwealth of Pennsylvania, anyone who sells real estate without a license or registration certificate, or does so after their license or registration has been suspended or revoked, will be guilty of a summary offense. This offense carries fines that cannot exceed $500 and imprisonment for a maximum of 3 months.

In Pennsylvania, all seven categories mentioned in the options are required by law to be licensed or registered. This means that brokers, real estate salespersons, cemetery brokers, cemetery salespersons, campground membership salespersons, time-share salespersons, and builder-owner salespersons all need to obtain the necessary licenses or registrations to legally operate in the state.

The application for a Pennsylvania Real Estate license must be received by the PA Real Estate Commission within 3 years after the date upon which the applicant passed the exam. This means that the applicant has a three-year window to submit their application after passing the exam. After this time period, the application may no longer be considered valid and the applicant may have to retake the exam if they still wish to obtain a real estate license in Pennsylvania.

Rental referrral agents and builder-owner salespersons do not need to work under a broker.

Rental referral agent: Self as Manager or Manager of Record
Builder-owner salesperson: Builder-Owner

In Pennsylvania, a license for a real estate branch office must be obtained from the Real Estate Commission. The license for the branch office does not necessarily have to be in the same name as that listed at the main office. Applicable fees for the branch office must be paid in order to receive a branch office license. However, if the license of the broker is suspended or revoked, the branch office license is also terminated.

Must have worked 3 years as a licensed salesperson to take the broker's exam.

The correct answer is "be at least 18 years of age, and shall have completed 60 hours in real estate instruction." This answer accurately reflects the requirements for obtaining a Pennsylvania Real Estate Salesperson license. It states that applicants must be at least 18 years old and have completed 60 hours of real estate instruction. It does not mention any additional requirements such as being a high school graduate or having experience as an assistant in a real estate office.

The correct answer is "the account MUST be an interest-bearing account whose interest may be claimed by the broker." This statement is incorrect because broker's escrow accounts do not necessarily have to be interest-bearing accounts, and the broker cannot claim the interest generated by the account.

Name and address of home inspector is not required on agreement of sale.

A licensee IS permitted to to advertise prizes, however, the ad MUST contain: 1) description of each prize, 2) prerequisites for receiving each prize, 3) limitations on the number of prizes offered.

The Pennsylvania Real Estate Commission or its authorized representatives may conduct a routine inspection of the main office or branch office of a broker, cemetery broker, or rental listing referral agent no more than four times each year.

After the death of a broker with sole proprietorship, it is unlikely that new licensees will be hired to help expedite the listing agreements. Since the broker had sole proprietorship, their death would result in the cessation of the business. Therefore, there would be no need to hire new licensees to handle listing agreements.

A real estate school is not permitted to solicit by means of advertisement in the employment columns of newspapers or other publications. This is because the employment columns are specifically for job advertisements, and a real estate school is not advertising a job opportunity but rather educational services.

Real estate transaction records must be retained for at least 3 years following the consummation of the transaction.

Cemetery salesperson and campground membership saleperson must have a license, but are not required to take the PA state examination.

This statement is true because it states that anyone can assist in the preparation of an appraisal as long as they are supervised and controlled by a licensed Certified Residential or General Appraiser. This means that the licensed appraiser is responsible for overseeing the work of the person assisting and ensuring that it is done correctly. This allows for collaboration and support in the appraisal process while still maintaining the necessary qualifications and expertise of a licensed appraiser.

A licensee, whether acting on behalf of a prospective buyer or not, may NOT solicit by personal contact or by telephone the sale or other disposition of real estate with such frequency as to amount to clear harassment of the owner. Additionally, the licensee may NOT send the owner as many solicitations as he wishes by US mail.

Must notify the commission within 30 days of a conviction or guilty plea to a felony.

License renewal for all licensees is BIENNIALLY (once every 2 years).

Advertisements regarding sales volume or production shall refer to CLOSED transactions only. A closed transaction is either a listing or a sale made AFTER a fully executed DEED is DELIVERED. Ads regarding production or position in the market shall IDENTIFY the MUNICIPALITY that market comprises.