Real Estate Licensing RePA_Sales_S Exam Practice Test Instant Access

Question 1

Which of the following is a REQUIRED general duty of a licensee?

AConduct an independent inspection of the property.

BIndependently verify the accuracy of any representation on a property condition disclosure statement.

CAccept liability and responsibility for acts of the consumer.

DProvide assistance with document preparation.

Answer : B

Under 68 Pa. C.S. 7301-7314 (Real Estate Seller Disclosure Law), a licensee has a duty to ensure that the property condition disclosure statement is complete and accurate as provided by the seller.

While the licensee does not conduct a formal property inspection, they must not ignore material defects that are apparent or known to them.

If a licensee knows of an issue that contradicts the seller's disclosure, they must disclose this to the buyer to prevent misrepresentation.

This protects consumers from fraudulent or misleading property conditions.

Why the other answers are incorrect:

Option A (Independent Inspection): A licensee is not a home inspector and is not required to perform a physical inspection.

Option C (Accept Consumer Liability): A licensee is not responsible for actions taken by a buyer or seller.

Option D (Document Preparation Assistance): A licensee can help explain documents but cannot prepare legal contracts without an attorney.

68 Pa. C.S. 7301-7314 -- Real Estate Seller Disclosure Law

Question 2

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 3

A salesperson who operates as an independent contractor for a broker is seldom in the office. Earnest money deposits received by this salesperson:

AMay be kept temporarily in an escrow account opened by the salesperson.

BShould be transmitted promptly after receipt to the broker.

CMay be held by the salesperson for 3 business days.

DShould be returned to the buyer to transmit to the broker.

Answer : B

Under 49 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.

49 Pa. Code 35.324 -- Handling of Deposits and Escrow Money

Question 4

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 5

Why is the following advertisement placed by a salesperson employed by ABC Realty, in violation of Pennsylvania Rules?

"Harrisburg $200,000 SUPER BUY Cozy 3br, 2 1/2 bath Cottage, near bus. For info call 555-9234 (home) or 675-6330 (office). Ask for JOHN DOE."

ANo address is given.

BThe salesperson's name appears in the ad.

CThe broker's name does not appear in the ad.

DThe MLS number is not included in the ad.

Answer : C

According to 49 Pa. Code 35.305 (Business Name on Advertisements), all advertisements placed by a salesperson must include the broker's name.

The broker's name is missing, which violates Pennsylvania advertising requirements (Option C - Correct).

The property address does not need to be in the ad (Option A - Incorrect).

Salesperson names are allowed but must be accompanied by the broker's name (Option B - Incorrect).

MLS numbers are not a requirement in all advertisements (Option D - Incorrect).

49 Pa. Code 35.305 -- Business Name on Advertisements

Question 6

Interest earned on an escrow account is:

APayable to the broker holding the deposit.

BEqually divided between the buyer and seller.

CEqually divided between the listing and selling brokers.

DPayable subject to an agreement between the parties.

Answer : D

Under 49 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.

49 Pa. Code 35.326 -- Escrow Accounts and Interest

Question 7

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

Real Estate Licensing Pennsylvania Salesperson State RePA_Sales_S Exam Practice Test