Free Practice Questions for Pennsylvania Real Estate Commission RePA_Sales_S Exam

If a real estate license is inactive formore than 5 years, the licenseemust retake and pass the licensing examto reinstate their license.

49 Pa. Code § 35.251 (Relicensure Following Revocation or Inactive Status)states that alicensee who has been inactive for over 5 years must complete all initial licensing requirements again, including the exam.

A licensee can keep their license in inactive status indefinitely, but after 5 years, it requires reexamination.

Why the other answers are incorrect:

Option A (2 Years) & Option B (3 Years):Licenseesmay reactivate their license within this period without retaking the exam.

Option C (4 Years):Thelimit is 5 years, not 4.

Under49 Pa. Code § 35.332 (Exclusive Listing Agreements), all listing agreements must specify the services provided, the duration of the agreement, and the compensation of the broker. However, there is no requirement to include the broker’s license number.

A listing agreement must clearly state the terms under which the broker will perform services and how they will be compensated.

The duration of the agreement must also be specified to prevent misunderstandings.

Why the other answers are incorrect:

Option A (Description of Services):This is a required component of the listing agreement.

Option B (Duration of Listing):A listing agreement must have a start and end date.

Option D (Broker’s Compensation):Compensation must be clearly stated in the listing agreement.

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 § 35.284(Disclosures of Business Relationships), abuyer’s agenthas afiduciary dutyto their client. This means the agent mustact in the buyer's best interestandcommunicate all material informationregarding the transactionto the buyer.

The buyer's agent's primary responsibility is to the buyer (Option B - Correct).

The buyer’s agent does not have any fiduciary duty to the seller (Option A - Incorrect).

The buyer’s agent is not required to inform the listing broker (Option C - Incorrect).

The loan officer does not have the same level of involvement in fiduciary duties as the buyer (Option D - Incorrect).

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.

Areal estate license is required to enter into leases on behalf of a landlordbecausethis involves negotiating real estate transactions.

According to 49 Pa. Code § 35.201 (Definitions), property management activities that include leasing, collecting rent, and negotiating lease terms require a real estate license.

A property manager who is actively negotiating leases must hold a real estate license unless they are directly employed by the property owner.

Why the other answers are incorrect:

Option B (Distributing Rules):Thisdoes not require a licensesince it is administrative.

Option C (Showing Apartments):Showing apartmentsdoes not require a license as long as no negotiations occur.

Option D (Providing Rental Info):Providing information is not negotiating a lease, so a license is not needed.

Under49 Pa. Code § 35.291(Reporting of Crimes and Disciplinary Actions), a real estate licensee may face disciplinary action for engaging inunethical conduct, fraud, or incompetence. One of the reasons listed ishabitual intoxication or drug addiction, as thisimpairsthe licensee’s ability toproperly conduct real estate activities.

A felony conviction (Option D - Incorrect) does not automatically result in disciplinebut is reviewed by the Commission.

Failure to pay taxes (Option C - Incorrect) is a federal issue, not a licensing violation.

Car insurance (Option A - Incorrect) is unrelated to a real estate license.

Both thePennsylvania Real Estate Commission (PREC)and thePennsylvania Human Relations Commission (PHRC)haveauthority to investigate illegal discriminationin real estate transactions.

The Pennsylvania Human Relations Commission (PHRC)is responsible for enforcingthe Pennsylvania Human Relations Act (PHRA), which prohibits discrimination in housing based onrace, color, religion, ancestry, age, sex, national origin, disability, and familial status.

The Pennsylvania Real Estate Commission (PREC)investigates complaints againstlicensed real estate professionalswho violate fair housing laws, including violations of theReal Estate Licensing and Registration Act (RELRA).

Why the other answers are incorrect:

Option A (Pennsylvania State Legislature and PREC):The Legislaturemakes lawsbutdoes not enforcethem or conduct investigations.

Option B (PREC and Better Business Bureau):TheBetter Business Bureau (BBB) is a private organizationand doesnot have legal enforcement authority.

Option C (PHRC and Legislature):The Legislature doesnot investigate complaints, but the PHRC does.

Under49 Pa. Code § 35.201 (Definitions), property management activities that include leasing, collecting rent, and negotiating lease terms require a real estate license unless the individual is directly employed by the property owner.

If a property manager is conducting leasing or rental activities for multiple property owners, they must be licensed and supervised by a broker.

The law ensures that individuals managing properties for others operate under proper ethical and legal guidelines.

Why the other answers are incorrect:

Option A (Certification for Property Management):No separate property management certification is required under Pennsylvania law.

Option B (Separate Exam for Property Management):A separate exam for property management is not required.

Option C (Ongoing Property Management Courses):Continuing education is required for license renewal, but specific property management courses are not mandatory.