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Pennsylvania Real Estate Commission PA Salesperson State Exam Sample Questions (Q44-Q49):
NEW QUESTION # 44
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. acceptable if the fee does not exceed the prevailing commission rate.
- B. acceptable if the fee is paid to the employing broker.
- C. in violation of license law since compensation for real estate sales can come only from listed properties.
- D. in violation of license law since all compensation must be paid at closing.
Answer: B
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 # 45
Interest earned on an escrow account is:
- A. Equally divided between the buyer and seller.
- B. Payable to the broker holding the deposit.
- C. Payable subject to an agreement between the parties.
- D. Equally divided between the listing and selling brokers.
Answer: C
Explanation:
Under49 Pa. Code § 35.326 (Escrow Accounts and Interest),interest earned on escrow accounts belongs to the party or parties as determined by the terms of the contract or agreement.
* A broker cannot personally benefit from interest earned on escrow funds unless the contract explicitly allows it.
* The purchase agreement must specify how the interest is handled, whether it is payable to the buyer, seller, or split between parties.
Why the other answers are incorrect:
* Option A (Payable to the Broker):A broker cannot keep interest from an escrow account unless agreed upon in writing.
* Option B (Equally Divided Between Buyer and Seller):Interest division is not automatic; it must be outlined in the contract.
* Option C (Equally Divided Between Brokers):Brokers do not have rights to escrow interest unless explicitly agreed upon.
NEW QUESTION # 46
What is the status of a person's real estate license after a claim has been paid from the Real Estate Recovery Fund to settle a claim against that licensee?
- A. Suspended
- B. Inactive
- C. Reinstated
- D. Active
Answer: A
Explanation:
Under63 P.S. § 455.803 (Real Estate Recovery Fund), if the Pennsylvania Real Estate Commissionpays out money from the Real Estate Recovery Fund due to a licensee's misconduct, the license is automatically suspended.
* A suspended license means the person cannot legally practice real estate until they reimburse the Recovery Fund for the full amount paid, plus interest.
* This is a consumer protection measure to ensure that licensees who cause financial harm cannot continue practicing until restitution is made.
* Once repayment is made, the licensee must apply for reinstatement, which is not automatic and may require a hearing.
Why the other answers are incorrect:
* Option A (Active):The license does not remain active after a payout from the fund.
* Option B (Inactive):"Inactive" means the licensee voluntarily stopped practicing, which is not the case here.
* Option C (Reinstated):Reinstatement does not occur automatically; the licensee must repay the fund and petition for reinstatement.
NEW QUESTION # 47
What are the permitted relationships between licensees and consumers as defined by the "Consumer Notice" and Pennsylvania regulations?
- A. Buyer agent, seller agent, designated dual agent, and transaction licensee.
- B. Buyer agent, seller agent, designated agent, dual agent, and transaction licensee.
- C. Buyer agent, buyer sub-agent, seller agent, seller sub-agent, and dual agent.
- D. Buyer agent, seller agent, designated agent, dual agent, and rental agent.
Answer: B
Explanation:
Under49 Pa. Code § 35.284 (Disclosures of Business Relationships),the Consumer Notice defines five types of permitted relationships between real estate licensees and consumers:
* Buyer's Agent- Represents the buyer and has a fiduciary duty to them.
* Seller's Agent (Listing Agent)- Represents the seller and has a fiduciary duty to them.
* Designated Agent- A brokerage firm designates different agents to represent buyers and sellers in the same firm without creating dual agency.
* Dual Agent- A licensee represents both the buyer and seller in the same transaction, with mutual consent.
* Transaction Licensee- A real estate licensee who provides services but does not represent either party as an agent.
Why the other answers are incorrect:
* Option A (Rental Agent):"Rental agent" is not a defined relationship in Pennsylvania law.
* Option B (Buyer & Seller Sub-Agent):Sub-agency is no longer common and is not a required disclosure.
* Option D (Designated Dual Agent):Dual agency and designated agency are separate concepts.
NEW QUESTION # 48
When a tenant who has a service or support animal applies to lease an apartment in a building that does not allow pets, which of the following rules may the landlord follow?
- A. The landlord must allow the service or support animal but may charge an additional deposit.
- B. The landlord may disallow the animal if it is not federally registered as a support or service animal.
- C. Both state and federal laws require the landlord to allow any service or support animal.
- D. The landlord may disallow the animal if there are no other animals permitted in the building.
Answer: C
Explanation:
UnderThe Fair Housing Act (42 U.S.C. § 3604)andThe Americans with Disabilities Act (ADA) (42 U.S.
C: § 12101),both service and emotional support animals must be allowed in rental properties, even in
"no pets" buildings.
* Service animals (such as guide dogs) and emotional support animals (ESA) are not considered
"pets" under federal and state law, so landlords cannot prohibit them.
* A landlord cannot charge an additional deposit or pet fee for service/support animals.
* The tenant must provide documentation from a licensed medical provider if the disability is not obvious, but there is no requirement for a formal "federal registration" of service animals.
Why the other answers are incorrect:
* Option B (Charge Additional Deposit):This is illegal under Fair Housing lawsbecause service animals are not "pets".
* Option C (No Pets Rule):A no-pets policydoes not applyto service animals.
* Option D (Federally Registered Service Animal):There is no federal registryfor service animals, so this is not a valid requirement.
NEW QUESTION # 49
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