Real Estate Licensing RePA_Sales_S Exam Questions Instant Access

Question 1

The Pennsylvania Real Estate Commission has received a written complaint that a licensee is engaging in an activity prohibited by the Real Estate Licensing and Registration Act. What action is the Commission empowered to take?

ASuspend the licensee's license for a period not to exceed 6 months.

BAscertain the facts and, if warranted, hold a hearing.

CServe the licensee with a cease and desist order.

DTransfer the matter to civil authorities in the county in which the alleged activity occurred.

Answer : B

The Pennsylvania Real Estate Commission (PREC) has the power to investigate complaints, hold hearings, and impose disciplinary actions under 63 P.S. 455.404 (Powers of the Commission).

The Commission will first investigate the complaint to determine if the allegations are valid.

If warranted, the Commission will hold a formal hearing to decide on appropriate disciplinary action.

Possible penalties include fines, suspension, or revocation of the license.

Why the other answers are incorrect:

Option A (Automatic 6-Month Suspension): The Commission does not impose automatic suspensions; each case is reviewed individually.

Option C (Cease and Desist Order): This is typically used for unlicensed real estate activities, not licensed misconduct.

Option D (Transfer to Civil Authorities): While some cases (e.g., fraud) may be referred to law enforcement, the Commission itself first investigates.

63 P.S. 455.404 -- Powers of the Commission

Question 2

The Commission, after obtaining the facts of a verified complaint against a licensee, holding a hearing, and finding that licensee guilty, may:

ALevy a fine of $2,000 - $5,000 if this is the licensee's first offense.

BSuspend or revoke a license and/or levy a fine of $1,000 or less.

CMake the licensee take up to 20 hours of ethics training.

DImprison a licensee for no more than 90 days.

Answer : B

Under 63 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.

63 P.S. 455.305 -- Civil Penalty Provisions

Question 3

A person who uses a guide dog visits a real estate office in search of an apartment to rent. How should the salesperson proceed when working with this person?

ASearch for apartments that permit pets.

BAsk for an increased amount of security deposit to cover potential damage caused by the dog.

CTell the person only about apartments that are designed for people with disabilities.

DAsk about the size of the apartment the person is looking for and any other features that the person would like.

Answer : D

Under The Fair Housing Act (42 U.S.C. 3604) and The Americans with Disabilities Act (ADA) (42 U.S.C. 12101), a salesperson must treat a person with a disability the same as any other prospective tenant, without discrimination.

The salesperson should focus on the client's housing needs, such as apartment size and features, rather than their disability.

Landlords cannot charge an extra security deposit for service animals.

The person is not limited to disability-specific housing; they can rent any unit they qualify for.

Why the other answers are incorrect:

Option A (Search for Pet-Friendly Apartments): Service animals are NOT pets, so pet restrictions do not apply.

Option B (Charge Extra Deposit): This violates fair housing laws; extra deposits for service animals are illegal.

Option C (Limit Options to Disability-Specific Housing): Clients with disabilities must be shown all available housing, not just disability-specific units.

Fair Housing Act (42 U.S.C. 3604) -- Protections for People with Disabilities

Americans with Disabilities Act (ADA) (42 U.S.C. 12101)

Question 4

An owner sells a house through a salesperson who works as an independent contractor for a broker. Before the closing, the owner fires the broker. However, the owner agrees to pay the salesperson a $1,000 fee for services. Which of the following is TRUE?

AThe salesperson cannot legally accept the $1,000.

BThe owner can cancel any part of the sales contract at any time.

CThe salesperson may legally accept the $1,000.

DThe salesperson may only accept the $1,000 with the broker's consent.

Answer : A

According to 49 Pa. Code 35.283 (Compensation and Commission), a salesperson may not accept compensation from anyone other than their employing broker.

A salesperson cannot accept direct payments from an owner or buyer (Option A - Correct).

The owner cannot cancel the sales contract unilaterally (Option B - Incorrect).

The salesperson may only be compensated through the broker, even if the owner agrees to direct payment (Option C & D - Incorrect).

49 Pa. Code 35.283 -- Compensation and Commission

Question 5

The Real Estate Commission does NOT have the power to:

ASuspend or revoke real estate licenses.

BImpose fines.

CReview escrow accounts.

DCertify residential appraisers.

Answer : D

The Pennsylvania Real Estate Commission (PREC) has the authority to regulate real estate licenses but does not certify real estate appraisers.

Real estate appraisers in Pennsylvania are regulated by the State Board of Certified Real Estate Appraisers, not the Real Estate Commission.

The Commission's powers include:

Suspending or revoking licenses for violations.

Imposing fines for disciplinary actions.

Auditing escrow accounts to ensure compliance with regulations.

Why the other answers are incorrect:

Option A (Suspend or Revoke Licenses): The Commission has the authority to discipline licensees.

Option B (Impose Fines): The Commission can fine violators for misconduct.

Option C (Review Escrow Accounts): The Commission can audit escrow accounts to protect client funds.

63 P.S. 455.404 -- Powers of the Pennsylvania Real Estate Commission

Pennsylvania Real Estate Appraisers Certification Act (63 P.S. 457.1-457.19)

Question 6

When representing a seller, which of the following is a TRUE statement regarding the duties a licensee owes to the principal?

AA licensee's obligation of confidentiality ends at the conclusion of the listing contract.

BA licensee is not obligated to disclose the existence of another offer during negotiations on a purchase contract.

CA licensee is required to keep confidential the price the seller would accept if lower than the list price.

DA licensee is obligated to disclose to a consumer the minimum commission split between the licensee and the broker.

Answer : C

A licensee has a fiduciary duty to keep the seller's pricing strategy confidential.

49 Pa. Code 35.292 (Duties of Licensees Generally) states that a licensee must maintain confidentiality of information that could harm their client's negotiating position, including the minimum price the seller would accept.

Confidentiality extends beyond the duration of the listing agreement unless the seller gives explicit permission to disclose information.

Why the other answers are incorrect:

Option A (Confidentiality Ends After Listing): Confidentiality continues even after the contract ends.

Option B (Not Disclosing Another Offer): In multiple-offer situations, disclosure may be required based on seller instructions.

Option D (Commission Disclosure): The broker's commission arrangement is not required to be disclosed to the public.

49 Pa. Code 35.292 -- Duties of Licensees Generally

Question 7

A real estate ad in a newspaper placed by a salesperson MUST include the:

AMunicipality in which the property is located.

BLegal description of the property.

CEmploying broker's name and phone number.

DName of the principal.

Answer : C

Under 49 Pa. Code 35.305 (Business Name on Advertisements), any advertisement placed by a real estate salesperson must include the name and phone number of their employing broker.

This ensures that the public knows which brokerage is responsible for the property listing and avoids misleading or unverified advertisements.

A salesperson cannot advertise properties without clearly identifying their broker to ensure compliance with advertising regulations.

Why the other answers are incorrect:

Option A (Municipality): While useful, this is not required in every ad.

Option B (Legal Description): A legal property description is not required for advertisements.

Option D (Name of the Principal): The seller's name does not need to be included in advertisements.

49 Pa. Code 35.305 -- Business Name on Advertisements

Real Estate Licensing Pennsylvania Salesperson State RePA_Sales_S Exam Questions