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PA REAL ESTATE EXAM QUESTIONS AND ANSWERS
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PA REAL ESTATE EXAM QUESTIONS AND ANSWERS
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PA REAL ESTATE EXAM QUESTIONS AND ANSWERS1. A listing broker procures a ready, willing, and able buyer for his or her seller-principal.
The seller first accepts the buyer's offer in writing, then experiences a change of heart
and withdraws the original acceptance. In this situation, the broker: - Answers -1. The
broker has fulfilled his obligation under the terms of the listing contract with the seller by
procuring a ready, willing, and able buyer and is therefore entitled to recover his agreed-
upon compensation.
1. may be entitled to collect a commission.
2. In Pennsylvania, brokerage fees are: - Answers -Negotiable between the consumer
and the broker employed by the consumer. The broker is required to disclose this to the
consumer at the initial interview
3. Commissions earned by a broker in a real estate sales transaction: - Answers -3.
Brokerage fees are established by agreement between the broker and the consumer to
whom the broker provides service. The broker may not share these fees with an
unlicensed individual. The broker must maintain the earnest money deposit until the
transaction is consummated or terminated.
4. Several weeks after a closing, an associate broker received a thank-you letter and a
nice bonus check from the seller of the house. The associate broker cashed the check
because he felt it was earned. In this situation, which of the following is true? - Answers
-License law prohibits a salesperson or associate broker from accepting a commission
or any valuable consideration for the performance of any act specified in the law from
any person except the licensed real estate broker with whom he is affiliated.
13. A real estate company has entered into agency agreements with both a seller and a
buyer, both of whom have signed a Dual Agency Consent Agreement. The salesperson
with the realty company who has been working with the buyer may: - Answers -In a dual
agency situation, the licensee owes certain fiduciary duties to both parties. Simply
providing comparable market data about recent sales to the buyer does not compromise
the duties owed to the seller and would therefore not be a violation of the agent's duty
under the law of agency.
-provide comparable market data about recent sales to the buyer.
14. While representing a seller under a listing contract, the broker learned confidential
information about the seller's urgency to sell and minimum acceptable selling price. The
listing expired, and the property was listed with a different broker. The original broker
now represents a buyer client who is interested in making an offer on the property. At
this time, the broker: - Answers -14. 4. The agent's duty of confidentiality continues after
termination of the agency relationship. They may not reveal confidential information of
the seller or use it to the advantage of the buyer client.
,15. While negotiating terms of a listing contract with a seller, the seller suggests a listing
price significantly below what the salesperson believes the property would sell for in the
open market. What is the best course of action for the licensee to follow? - Answers -15.
2. The licensee should disclose a professional opinion of value and recommend that the
property be listed at market value.
16. Which of the following is true regarding agency relationships between licensees and
consumers? - Answers -An open listing agreement creating an agency relationship
between a seller and broker may be an oral agreement.
17. An agent is representing the seller and working with a buyer. While reviewing terms
of an agreement of sale with a buyer, how should the agent respond to buyer's
concerns about certain provisions in the agreement? - Answers -The agent should
advise the buyer to seek expert advice from an attorney at law regarding his concerns.
Explaining contract terms may be construed as practicing law. Real estate licensees are
not permitted to practice law unless they are licensed attorneys at law.
18. A salesperson receives an offer on a property currently listed exclusively with\
nanother broker. The salesperson approaches the seller with the offer and a new listing
contract, recommending that the seller terminate the current listing and list with his
company in order to keep everything "in house." The salesperson: - Answers -has
violated the license law by inducing the seller to break the current exclusive listing
contract in order to substitute a new one, which would result in a personal gain to the
salesperson
19. A broker who operated a sole proprietorship dies. Another licensed broker is now
supervising the termination of the business of the deceased broker. The second broker
may: - Answers -promote unexpired listings unless the seller elects to cancel the
agreement.
A licensed broker supervising the termination of a deceased broker's business can
continue to promote existing listings unless otherwise directed by the seller but may not
enter into new listing agreements nor hire new licensees.
20. The salesperson represents the seller in a transaction. When prospective buyers
ask to look at the property, the salesperson must: - Answers -inform them that the
salesperson represents the seller's interests and maintain appropriate documentation of
the disclosure.
The consumer must be provided with the Consumer Notice at the initial interview. The
best evidence is the buyer's signature on the form, but a licensee may provide a service
without the buyer actually signing the document. The licensee, however, must retain
appropriate documentation that the consumer notice was provided.
,21. A broker listed a small office building. Because the property is in excellent condition
and produces a good, steady income, the broker's salesperson has decided to purchase
it as an investment. If the broker's salesperson wishes to buy this property, the
salesperson must - Answers -inform the owner in writing that the salesperson is a
licensee of the listing broker when making an offer.
22. A real estate licensee must give the Consumer Notice to prospective
purchasers/tenants at - Answers -The Consumer Notice must be provided to a
purchaser/tenant at the initial interview, which is defined as the first contact where a
substantive discussion about real estate needs occurs
23. A consumer hires a broker to serve as a buyer's agent. The broker currently has a
property exclusively listed for sale that fully meets the buyer prospect's needs. Which of
the following best describes the responsibility of the broker in this situation? - Answers -
Following disclosures required at the initial interview, the broker must secure the written
consent of both parties in order to act as a dual agent.
24. A licensed real estate salesperson owns a three-unit apartment building for
investment purposes. Under what conditions may the salesperson sell the property -
Answers -The salesperson may be a "for sale by owner," but the salesperson must
disclose his or her license status in ads for the property.
This requirement does not apply if the property is listed for sale with a real estate
company
25. A consumer contacts a licensee to discuss the possibility of the licensee handling
the sale of a property owned by the consumer. The licensee's responsibility is to -
Answers -provide a Consumer Notice to the prospect before engaging in any
substantive discussion about real estate needs with the consumer.
26. If a licensed salesperson owns multifamily residential property for investment
purposes, the salesperson: - Answers -must disclose his or her license status to
prospective tenants before the tenant enters into a lease agreement
27. When discussing the possibility of listing a large parcel of vacant land with an
owner, the broker determines that he would like to secure an option to purchase the
property. How should the broker proceed? - Answers -Disclose his interest and license
status to the owner and discuss terms of the option agreement prior to and distinct from
the listing agreement.
a broker may not incorporate an option to purchase property in a listing agreement for
the property, and the broker may not conduct business through a straw party.
28. If a licensed salesperson, without the knowledge or consent of the employing
broker, violates requirements regarding delivery of a Consumer Notice at the initial
, interview, what are the consequences? - Answers -The salesperson may have his or
her license suspended or revoked.
29. A seller is required to give a buyer a Property Condition Disclosure in all of the
following transactions EXCEPT: - Answers -A property condition disclosure form is not
required in the sale of commercial property.
5. What determines the amount of compensation to be paid to a licensed real estate
salesperson by the employing broker? - Answers -The contract between the employing
broker and the licensed real estate salesperson
6. A real estate company has entered into agency agreements with both a seller and a
buyer. The buyer is interested in making an offer on the seller's property. Can this
occur? - Answers -Yes, if both the buyer and seller give their informed consent in writing
after receiving full disclosure regarding dual agency.
7. The listing agreement with a seller has expired, and the seller lists with a different
brokerage firm. The original listing salesperson now represents a buyer interested in the
seller's property. The original listing agent: - Answers -The original agent may not
disclose offers received during the first listing. The fiduciary duty of confidentiality
continues after the termination of the agency relationship.
Cannot disclose to the buyer information about terms acceptable to the seller that were
received during the listing period.
8. A buyer contacts a real estate office and indicates an interest in purchasing a home
in the area. In the absence of a buyer agency relationship with the buyer, a salesperson
from the real estate office should do all of the following EXCEPT: - Answers -The agent
should not gain information about motivation and urgency, which is generally of a
confidential nature and should not be discussed outside of an agency relationship. The
agent may provide information on properties for sale in the area, discuss mortgage
interest rates and terms, and discuss various levels of representation available to the
buyer.
9. In a dual agency situation, a broker may collect compensation from both the seller
and the buyer if: - Answers -9. 3. Written consent to act as a dual agent must include a
statement of the terms of compensation. Both parties must consent to the dual
compensation.
10. A buyer is interested in seeing a house listed with XYZ Realty but does not wish to
enter into an agency relationship. A salesperson from LMN Realty can show the buyer
the house if: - Answers -XYZ Realty has obtained the seller's written consent to offer
subagency, and the buyer is given a consumer notice and disclosure stating that LMN
Realty represents the seller.
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