Pa Real Estate Exam Questions with Complete Solutions
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Course
PA REAL ESTATE
Institution
PA REAL ESTATE
Pa Real Estate Exam Questions with Complete
Solutions
1. A listing broker procures a ready, willing, and able buyer for his or her sellerprincipal. The seller first accepts the buyer's offer in writing, then experiences a
change of heart and withdraws the original acceptance. In this situati...
Pa Real Estate Exam Questions with Complete
Solutions
1. 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: 1. may be entitled to collect a commission. 2. has no recourse because
the transaction was never completed. 3. may sue the buyer. 4. may retain the
deposit as compensation. Correct Answer-1. 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. He may not sue the buyer and cannot retain the deposit as
compensation.
2. In Pennsylvania, brokerage fees are: 1. set by law. 2. set by the Pennsylvania
Real Estate Commission. 3. determined by local groups of brokers operating a
multiple listing service. 4. negotiable between the consumer and the broker
employed by the consumer. Correct Answer-2. 4. Brokerage fees are
established solely as a result of a negotiated agreement between the broker and
the consumer. The broker is required to disclose this to the consumer at the
initial interview (608 (8)). Fees are not determined by law, the real estate
commission, or local brokers.
3. Commissions earned by a broker in a real estate sales transaction: 1. are
determined by agreement of the broker and the consumer. 2. may be shared
with an unlicensed person who is employed by the broker, provided that such
, Pa Real Estate Exam Questions with Complete
Solutions
person aided the broker in bringing the buyer and seller together. 3. may be
deducted from the earnest money deposit and claimed by the broker as soon as
the buyer and seller execute the purchase and sales agreement. 4. are based on
a schedule of commission rates set by the multiple listing service. Correct
Answer-3. 1. 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 (604 (a)(12.1)). 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?: 1. The associate broker may accept the bonus because he is
licensed as an associate broker. 2. Accepting the money is allowed if more than
30 days have elapsed since closing. 3. The associate broker may accept the
money if his broker permits him to do so. 4. Accepting the money is a violation
of the License and Registration Act. Correct Answer-4. 4. 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 (604
(a)(12)).
, Pa Real Estate Exam Questions with Complete
Solutions
5. What determines the amount of compensation to be paid to a licensed real
estate salesperson by the employing broker?:1. Negotiation between the broker
and property owner at the time property is listed for sale. 2. The rules and
regulations of the multiple listing service to which the broker belongs 3. The
code of ethics of the association or board of REALTORS® 4. The contract between
the employing broker and the licensed real estate salesperson Correct
Answer-5. 4. The licensed salesperson and employing broker agree to the terms
of compensation to be paid by the broker to the salesperson. Professional
organizations, multiple listing services, and other parties, such as sellers, do not
dictate or control compensation arrangements.
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?: 1. No, because the real estate company would then be a dual
agent. 2. Yes, as long as written agency agreements have been entered into with
both parties. 3. Yes, if the seller has agreed to pay the commission. 4. Yes, if both
the buyer and seller give their informed consent in writing after receiving full
disclosure regarding dual agency. Correct Answer-6. 4. In Pennsylvania, dual
agency is permitted if both parties give their fully informed consent in writing
606.4(A).
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
, Pa Real Estate Exam Questions with Complete
Solutions
interested in the seller's property. The original listing agent: 1. is a dual agent
and must get permission from both parties. 2. cannot disclose to the buyer
information about terms acceptable to the seller that were received during the
listing period. 3. cannot disclose to the buyer information about the physical
condition of the property. 4. cannot represent the buyer. Correct Answer-7. 2.
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 (606.1 (g)). The agent is not a dual agent, since the original agent no
longer has an agency relationship with the seller.
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: 1.
provide the buyer with information on properties for sale in the area. 2. give the
buyer information on mortgage interest rates and terms. 3. discuss specific
information regarding the buyer's motivation and urgency. 4. explain to the
buyer about buyer agency, seller agency, and dual agency. Correct Answer-8.
3. 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.
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