Guaranteed RePA_Sales_S Passing & Study RePA_Sales_S Demo
Guaranteed RePA_Sales_S Passing & Study RePA_Sales_S Demo
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Pennsylvania Real Estate Commission PA Salesperson State Exam Sample Questions (Q11-Q16):
NEW QUESTION # 11
A "For Sale by Owner" property owner has offered a flat fee to any licensee who procures a buyer. The owner's terms specify that 50% of the fee is payable upon contract acceptance, with the other 50% payable upon transfer of title. A CORRECT statement about this arrangement is that it is:
- A. in violation of license law since compensation for real estate sales can come only from listed properties.
- B. in violation of license law since all compensation must be paid at closing.
- C. acceptable if the fee is paid to the employing broker.
- D. acceptable if the fee does not exceed the prevailing commission rate.
Answer: C
Explanation:
Under49 Pa. Code § 35.283 (Compensation and Commission),a salesperson can only receive payment through their employing broker. This means thatif the flat fee is paid to the broker (not directly to the salesperson), then the arrangement is legal.
* Commission does not have to be paid at closing; payment terms can be negotiated, including split payments.
* For Sale by Owner (FSBO) properties are not required to be listed with a brokerage, so compensation can still be earned if a licensee brings a buyer.
Why the other answers are incorrect:
* Option B (Commission Rate Limitations):There areno "prevailing" commission ratessince commissions are always negotiable.
* Option C (Compensation Must Be at Closing):Commission can bestructured differently(e.g., partial upfront payment).
* Option D (Only Listed Properties Qualify for Commission):Agents can earn commission on FSBOsas long as the broker is involved.
NEW QUESTION # 12
An exclusive listing MUST be in writing and it MUST:
- A. contain provisions regarding acceptable financing arrangements
- B. be signed by the cooperating broker
- C. specify the duration of the listing
- D. contain a provision allowing the owner to cancel all exclusive features within 24 hours' notice
Answer: C
Explanation:
Allexclusive listing agreements in Pennsylvania MUST specify their duration in writing.
* 49 Pa. Code § 35.332 (Exclusive Listing Agreements)states thatall exclusive listings must have a definite start and end date.
* Listings without an expiration date are considered illegaland unenforceable in Pennsylvania.
Why the other answers are incorrect:
* Option A (Cancellation in 24 Hours):There is no legal requirement for a 24-hour cancellation clause.
* Option B (Financing Arrangements):Financing provisionsare not a required part of a listing agreement.
* Option C (Signed by Cooperating Broker):A cooperating broker's signatureis not required. Only the listing broker and seller need to sign the agreement.
NEW QUESTION # 13
According to the Real Estate Commission, which of the following is REQUIRED to hold a real estate license in Pennsylvania?
- A. A bank selling its foreclosed properties
- B. A home builder selling his brand new houses
- C. An attorney who holds himself out as a provider of brokerage services
- D. An individual selling five unimproved lots that she owns
Answer: C
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 # 14
The Commission, after obtaining the facts of a verified complaint against a licensee, holding a hearing, and finding that licensee guilty, may:
- A. Imprison a licensee for no more than 90 days.
- B. Suspend or revoke a license and/or levy a fine of $1,000 or less.
- C. Levy a fine of $2,000 - $5,000 if this is the licensee's first offense.
- D. Make the licensee take up to 20 hours of ethics training.
Answer: B
Explanation:
Under63 P.S. § 455.305 (Civil Penalty Provisions),the Pennsylvania Real Estate Commission has the authority to suspend or revoke a license and impose fines of up to $1,000 per violation.
* The Commission can impose fines but does not have authority over criminal penalties such as imprisonment.
* Suspension or revocation is a common penalty for severe violations, including fraud, misrepresentation, or mismanagement of client funds.
Why the other answers are incorrect:
* Option A ($2,000 - $5,000 Fine):The fine limit for first offenses is typically $1,000 per violation.
* Option C (20 Hours of Ethics Training):Training may be recommended but is not an official penalty imposed by the Commission.
* Option D (90-Day Imprisonment):The Commission does not have authority to impose jail sentences.
NEW QUESTION # 15
Which of the following phrases in a rental ad may be permissible?
- A. Children 12 and Older Only
- B. Adults Only Building
- C. Creek Village - an Age-Restricted Community
- D. All Couples Apartment Building
Answer: C
Explanation:
UnderThe Federal Fair Housing Act (42 U.S.C. § 3604) and the Pennsylvania Human Relations Act (PHRA), it is illegal to discriminate against renters or buyers based onfamily status, which includes children.
However,age-restricted housing is allowed under certain conditions.
* Housing communities designated as "55 and older" or "62 and older" are legally permitted under the Housing for Older Persons Act (HOPA), provided they meet federal guidelines.
* Option C (Creek Village - an Age-Restricted Community) is lawful because it indicates compliance with HOPA, meaning at least 80% of residents are over 55.
Why the other answers are incorrect:
* Option A (Children 12 and Older Only):Discriminating against families with young children violates theFair Housing Act (FHA).
* Option B (Adults Only Building):Landlords cannot prohibit families with children from renting.
* Option D (All Couples Apartment Building):This discriminates againstsingle renters and violates fair housing laws.
NEW QUESTION # 16
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