Real Estate Licensing RePA_Sales_S Exam Questions Instant Access

Question 1

The provisions of the Real Estate Licensing and Registration Act apply to:

AA trustee who participates in real estate transactions under the authority of a court order.

BAn attorney-at-law who participates in real estate transactions on behalf of a client.

CA real estate licensee selling real estate they own.

DA licensed auctioneer who is auctioning property.

Answer : C

Under 63 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 professional to 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.

63 P.S. 455.304 -- Exemptions from Licensing Requirements

Question 2

If a licensee advertises prizes as part of a promotion for the sale of real estate, which of the following must be disclosed in the advertisement?

AThe fair market value of the prize.

BWhere the prize was manufactured.

CHow many others have won similar prizes.

DThe names of any stores that will exchange the prize.

Answer : A

Under 49 Pa. Code 35.305 (Business Name on Advertisements), a real estate licensee must disclose the fair market value of any prizes, gifts, or incentives offered as part of a sales promotion.

This ensures transparency and prevents misleading advertisements that might influence a consumer's decision based on exaggerated prize values.

Failure to disclose the fair market value could result in penalties or disciplinary action from the Pennsylvania Real Estate Commission.

Why the other answers are incorrect:

Option B (Where the Prize Was Manufactured): There is no requirement to disclose where a prize was made.

Option C (How Many Others Have Won): The law does not require disclosure of the number of previous winners.

Option D (Names of Stores for Exchange): There is no requirement to provide names of stores that would honor or exchange the prize.

49 Pa. Code 35.305 -- Business Name on Advertisements

Question 3

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 4

Can a licensed real estate broker prepare an appraisal for a new loan on property that the broker has listed for sale?

AYes, if the appraisal is identified as a comparative market analysis.

BYes, if the appraisal is done before an offer to purchase is accepted by the seller.

CYes, with proper disclosure to the lender about the broker's qualifications.

DNo, real property appraisals are not within the scope of practice for a real estate broker.

Answer : D

Under The Pennsylvania Real Estate Appraisers Certification Act (63 P.S. 457.1-457.19), only a state-certified or licensed appraiser can perform real estate appraisals for loan purposes.

Real estate brokers and salespersons can perform Comparative Market Analyses (CMAs) but cannot legally perform an appraisal for a lender.

This restriction ensures that appraisals used for lending purposes meet state and federal standards.

Why the other answers are incorrect:

Option A (CMAs as Appraisals): CMAs are not appraisals.

Option B (Before Offer Accepted): The timing of the appraisal does not change licensing requirements.

Option C (Disclosure to Lender): Even with disclosure, brokers are not permitted to conduct appraisals for loans.

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

Question 5

According to Pennsylvania license law, the buyer has the right to cancel purchase of which of the following?

ATimeshare

BOffice space

CHouse owned by the salesperson

DApartment with outstanding mortgage

Answer : A

Question 6

When a licensed salesperson changes from one broker to another, the Pennsylvania Real Estate Commission MUST be notified within how many days after the intended date of the change?

B10

C15

D30

Answer : B

Under 49 Pa. Code 35.301 (Changes in Employment Status), a salesperson must notify the Pennsylvania Real Estate Commission within 10 days of switching brokers.

This ensures that the Commission's records remain up-to-date and that the salesperson is properly licensed under a supervising broker.

Failure to report the change within 10 days can result in disciplinary action.

Why the other answers are incorrect:

Option A (5 Days): The regulation clearly states 10 days, not 5.

Option C (15 Days): This exceeds the allowed time frame for notification.

Option D (30 Days): Waiting 30 days is too long and would violate Pennsylvania licensing laws.

49 Pa. Code 35.301 -- Changes in Employment Status

Question 7

A licensee meets with a couple to discuss listing their home, and the couple ends the meeting by signing a listing agreement. State law REQUIRES that the couple receive a copy of the agreement:

Aat the time their signatures are obtained.

Bafter the licensee obtains their employing broker's signature.

Cafter the cancellation period has expired.

Dwithin 5 business days from the time the agreement was signed.

Answer : A

Under 49 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): The broker 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 states it must be immediate, not within 5 days.

49 Pa. Code 35.331 -- Written Agreements Generally

Real Estate Licensing Pennsylvania Salesperson State RePA_Sales_S Exam Questions