RePA_Sales_S Questions and Answers

Under63 P.S. § 455.304 (Exemptions from Licensing Requirements),most individuals selling their own property are exempt from real estate licensing requirements.However, a real estate licensee selling their own real estate must comply with disclosure laws and ethical obligations.

If a real estate licensee sells their own property, they must disclose in all advertising that they are a licensed real estate professionalto avoid misleading the public.

While a non-licensee selling their own property is not covered under real estate licensing laws, a licensed salesperson must adhere to licensing and disclosure laws.

Why the other answers are incorrect:

Option A (Trustee under Court Order):Court-appointed trustees are exempt from real estate licensing requirements.

Option B (Attorney Representing Clients):Attorneys are permitted to handle real estate transactions as part of their legal practice without a real estate license.

Option D (Licensed Auctioneer):Auctioneers selling real estate are regulated under separate auctioneer licensing laws, not real estate licensing laws.

Under49 Pa. Code § 35.241 (Supervision and Operation of Offices),a licensed real estate salesperson must be supervised by a broker or an associate broker designated by the broker.

A broker may assign an associate broker (who has passed the broker exam but does not own the brokerage) to oversee salespersons.

Salespersons cannot work independently; they must work under the direction of a licensed broker or an assigned associate broker.

Why the other answers are incorrect:

Option A (Team Leader):A team leader is not a formal supervisory position under Pennsylvania law unless they are an associate broker or broker.

Option B (Salesperson):A salesperson cannot supervise other salespersons.

Option D (Transaction Coordinator):A transaction coordinator handles paperwork but does not supervise licensees.

Under49 Pa. Code § 35.283 (Disclosure of Interest),a real estate licensee must disclose in writing if they have a direct or indirect ownership interest in a property they are selling or purchasing.

This disclosure ensures transparency and prevents conflicts of interest.

Failure to disclose ownership interest could be considered fraudulent and result in disciplinary action by the Pennsylvania Real Estate Commission.

Why the other answers are incorrect:

Option A (Commission Notification Required):TheCommission does not need to be notifiedunless a violation occurs.

Option B (Listing Agreement Disclosure):Disclosure isnot required in the listing agreementbut must be made to all parties.

Option D (Percentage of Ownership on Contract):The specificpercentage of ownership is not required to be on the contract; general disclosure is sufficient.

Under49 Pa. Code § 35.283 (Compensation and Commission), asalesperson may only receive compensation through their employing broker.All commissions, bonuses, or referral fees must be paid by the broker and not directly to or from another licensee.

A real estate salesperson cannot accept direct payment from clients, buyers, or sellers.

Any bonus or commission earned must first go to the broker, who then distributes the appropriate amount to the salesperson.

Why the other answers are incorrect:

Option A (Direct Commission from Buyer & Seller):Salespersonscannot accept direct payments from clients; all payments must go through their broker.

Option B (Pay Referral Fee to Another Salesperson):Only brokers can pay referral fees.A salespersoncannotpay another licensee.

Option D (Split Commission Directly with Another Licensee):Commissionsmust be handled by the broker, not between individual agents.

Under49 Pa. Code § 35.324 (Handling of Deposits and Escrow Money), all earnest money deposits must be promptly transmitted to the employing broker for deposit into an escrow account.

A salesperson cannot hold earnest money or maintain an escrow account on their own.

Brokers are responsible for ensuring that all escrow funds are properly handled and protected from commingling.

Why the other answers are incorrect:

Option A (Salesperson Holding Escrow Funds):Salespersons are prohibited from maintaining independent escrow accounts.

Option C (Holding Funds for 3 Days):Earnest money must be turned over to the broker as soon as possible; salespersons cannot hold it for any period.

Option D (Returning to Buyer for Transmission):Earnest money must go directly to the broker, not back to the buyer.

Under49 Pa. Code § 35.331 (Written Agreements Generally),a copy of any written agreement (including listing agreements) must be provided to the parties at the time of signing.

This rule ensures transparency and protects clients from unauthorized changes to agreements.

Failure to provide an immediate copy is a violation of Pennsylvania real estate regulations.

Why the other answers are incorrect:

Option B (Broker Signature First):Thebroker does not need to sign before providing a copy to the client.

Option C (After Cancellation Period):There is no required waiting period before providing a copy.

Option D (Within 5 Days):The law statesit must be immediate, not within 5 days.

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.

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.

Under49 Pa. Code § 35.314 (Duties of Dual Agents),a dual agent represents both the buyer and seller in the same transaction and must maintain neutrality by not disclosing confidential information unless required by law.

If the salesperson has knowledge that the sellers are getting divorced, this is considered confidential information that could harm their negotiating position.

Dual agents cannot disclose confidential facts that would disadvantage either party unless both parties agree in writing.

Disclosure of confidential details in a dual agency scenario would be a violation of Pennsylvania real estate law.

Why the other answers are incorrect:

Option B (Sub-Agent of Buyer):Asub-agent of the buyer has a fiduciary duty to the buyer and may disclose information that benefits them.

Option C (Transaction Licensee):Atransaction licensee does not represent either party and may disclose non-confidential information.

Option D (Designated Buyer Agent):Adesignated agent works solely for the buyer and is free to disclose information that benefits them.

Under49 Pa. Code § 35.314 (Duties of Dual Agents),a dual agent represents both the buyer and seller in the same transaction and must maintain neutrality by not disclosing confidential information unless required by law.

If the salesperson has knowledge that the sellers are getting divorced, this is considered confidential information that could harm their negotiating position.

Dual agents cannot disclose confidential facts that would disadvantage either party unless both parties agree in writing.

Disclosure of confidential details in a dual agency scenario would be a violation of Pennsylvania real estate law.

Why the other answers are incorrect:

Option B (Sub-Agent of Buyer):Asub-agent of the buyer has a fiduciary duty to the buyer and may disclose information that benefits them.

Option C (Transaction Licensee):Atransaction licensee does not represent either party and may disclose non-confidential information.

Option D (Designated Buyer Agent):Adesignated agent works solely for the buyer and is free to disclose information that benefits them.