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Pennsylvania Real Estate Commission PA Salesperson State Exam Sample Questions (Q50-Q55):

NEW QUESTION # 50
According to the Real Estate Commission, which of the following is REQUIRED to hold a real estate license in Pennsylvania?

A. An attorney who holds himself out as a provider of brokerage services
B. A home builder selling his brand new houses
C. An individual selling five unimproved lots that she owns
D. A bank selling its foreclosed properties

Answer: A

Explanation:
In Pennsylvania,any person engaging in brokerage activities (such as negotiating sales or leases for compensation) must hold a real estate licenseunless specifically exempted.
* 49 Pa. Code § 35.201 (Definitions) & 63 P.S. § 455.304 (Exemptions)allow attorneys to practice real estate without a license ONLY IF the services are incidental to their legal practice.
* If an attorney advertises as a real estate broker or regularly engages in real estate transactions beyond legal services, they must obtain a real estate license.
Why the other answers are incorrect:
* Option B (Home Builder Selling New Houses):Buildersare exemptwhen selling their ownnewly constructed homes.
* Option C (Banks Selling Foreclosures):Banks areexemptunder63 P.S. § 455.304 (a)(5)since they are not in the business of selling real estate for profit.
* Option D (Selling Five Unimproved Lots):Individuals selling their own propertydo not need a license
, even for multiple lots.

NEW QUESTION # 51
Interest earned on an escrow account is:

A. Payable subject to an agreement between the parties.
B. Equally divided between the listing and selling brokers.
C. Equally divided between the buyer and seller.
D. Payable to the broker holding the deposit.

Answer: A

Explanation:
Under49 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.

NEW QUESTION # 52
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:

A. after the licensee obtains their employing broker's signature.
B. at the time their signatures are obtained.
C. after the cancellation period has expired.
D. within 5 business days from the time the agreement was signed.

Answer: B

Explanation:
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.

NEW QUESTION # 53
Which of the following is a REQUIRED general duty of a licensee?

A. Accept liability and responsibility for acts of the consumer.
B. Independently verify the accuracy of any representation on a property condition disclosure statement.
C. Conduct an independent inspection of the property.
D. Provide assistance with document preparation.

Answer: B

Explanation:
Under68 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 inspectorand is not required to perform a physical inspection.
* Option C (Accept Consumer Liability):A licenseeis not responsible for actions taken by a buyer or seller.
* Option D (Document Preparation Assistance):A licenseecan help explain documents but cannot prepare legal contracts without an attorney.

NEW QUESTION # 54
A listing agreement must contain all of the following EXCEPT:

A. A description of the services to be provided.
B. The broker's compensation.
C. The duration of the listing.
D. The broker's license number.

Answer: D

Explanation:
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.

NEW QUESTION # 55
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