3-PA Real Estate Salesperson Exam: Regulation
of Conduct of Licensees | Questions and
Answers| Latest Update
Duties of Seller's Agent - ✔✔(1) to be loyal to the seller by taking action that is consistent
with the seller's interest in a transaction; and
(2) to make a continuous and good faith effort to find a buyer for the property, except that a
seller's broker is not obligated to seek additional offers to purchase the property while the
property is subject to an existing agreement for sale.
Duties of Buyer's Broker - ✔✔(1) to be loyal to the buyer by taking action that is consistent
with the buyer's interest in a transaction;
(2) to make a continuous and good faith effort to find a property for the buyer, except that a
buyer's broker is not obligated to seek additional properties for purchase while the buyer is
subject to an existing contract for sale; and
(3) to disclose to the listing broker, at first contact, that the broker has been engaged as a
buyer's agent. In the absence of a listing broker, this disclosure shall be made to the seller.
Duties of Dual Agent - ✔✔Note: A licensee may act as a dual agent only with the written
consent of both parties to the transaction following the disclosures given at the initial interview
required by section 608. The consent must include a statement of the terms of compensation.
(1)to take no action that is adverse or detrimental to either party's interest in a transaction;
(2) unless otherwise agreed to in writing, to make a continuous and good faith effort to find a
buyer for the property, except that a dual agent is not obligated to seek additional offers to
purchase the property while it is subject to an existing contract for sale; and
(3) unless otherwise agreed to in writing, to make a continuous and good faith effort to find a
property for the buyer, except that a dual agent is not obligated to seek additional properties to
purchase while the buyer is a party to an existing contract to purchase.
,Duties of Designated Agent - ✔✔(1) to be loyal to the principal with whom the agent is
working by taking action that is consistent with that principal's interest in the transaction;
(2) to make a continuous and good faith effort to find a buyer for a principal who is a seller, or
to find a property for a principal who is a buyer. A designated agent is not, however, obligated
to seek additional offers for a seller principal while the property is subject to an existing
contract for sale or, with regard to a principal buyer, to seek additional properties to purchase
while the buyer is a party to an existing contract for purchase; and
(3) to disclose to the principal, prior to writing or presenting an offer to purchase, that the
other party to the transaction is also represented by a licensee employed with the same broker.
The disclosure shall confirm that the broker is a dual agent in the transaction.
Duties of Transaction Licensee - ✔✔(1) to advise the consumer to be assisted that the
licensee is not acting as an agent or advocate of the consumer and should not be provided with
confidential information; and
(2) to provide limited confidentiality. A licensee shall not disclose information that the seller will
accept a price less than the asking price or listed price, that the buyer will pay a price greater
than the price submitted in a written offer or that a seller or buyer will agree to financing terms
other than those offered.
Broker Notes on Agency - ✔✔(a) A broker may not extend or delegate the broker's agency
relationship with a principal to another broker without the written consent of the principal.
(b) A broker may compensate another broker who assists in the marketing and sale/lease of a
consumer's property. Payment of compensation alone does not create an agency relationship
between the consumer and the other broker.
Licensee Notes on Agency - ✔✔(a) A licensee may not knowingly, during or following the
termination of an agency relationship reveal confidential information of the principal, or use
confidential information of the principal to the advantage of the licensee or a third party,
except when:
(1) disclosure is made with the consent of the principal;
(2) the information is disclosed to another licensee or third party acting solely on the principal's
behalf and not for any other party;
(3) the information is required to be disclosed under subpoena or court order;
, (4) it is the intention of the principal to commit a crime and the disclosure of information is
believed necessary to prevent the crime; or
(5) the information is used to defend the licensee in a legal proceeding against an accusation of
wrongful conduct.
Possible violations of Compensation paying/collection by broker - ✔✔(1) Accepting a
commission or any valuable consideration by a salesperson or associate broker for the
performance of any acts specified in this act, from any person, except the licensed real estate
broker with whom he is affiliated.
(2) Paying of a commission or any valuable consideration by a broker to anyone other than his
licensed employees or another real estate broker for the performance of any acts specified in
this act.
(3) Paying or accepting, giving or charging any undisclosed commission, rebate, compensation
or profit or expenditures for a principal, or in violation of this act
Possible violations of Compensation paying/collection by licensee - ✔✔(1) A licensee may
not perform a service for a consumer of real estate services for a fee, commission or other
valuable consideration paid by or on behalf of the consumer unless the nature of the service
and the fee to be charged are set forth in a written agreement between the broker and the
consumer that is signed by the consumer. This paragraph shall not prohibit a licensee from
performing services before such an agreement is signed, but the licensee is not entitled to
recover a fee, commission or other valuable consideration in the absence of such a signed
agreement.
Employment of associate broker/salesperson - ✔✔(a) No associate broker or salesperson
(which term in this section shall include cemetery salesperson) shall be employed by any other
broker than is designated upon the current license issued to said associate broker or said
salesperson.
Whenever a licensed salesperson or associate broker desires to change his employment from
one licensed broker to another, he shall notify the commission in writing no later than ten days
after the intended date of change, pay the required fee, and return his current license. The
commission, shall, upon receipt of acknowledgment from the new broker of the change of
employment issue a new license. In the interim at such time as the change in affiliation of the
salesperson or associate broker occurs, he shall maintain a copy of the notification sent to the
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