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86 Cards in this Set
- Front
- Back
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The phrase "bundle of legal rights" is properly included in
a. the definition of real property. b. a legal description. c. real estate transactions. d. leases for less than one year |
a. the definition of real property.
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The right to control one's property includes all of the following EXCEPT
a. the right to invite people on the property for a political fundraiser. b. the right to exclude the utilities meter reader. c. the right to erect “no trespassing” signs. d. the right to enjoy pride of ownership. |
b. the right to exclude the utilities meter reader.
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According to the law, a trade fixture is
a. a fixture b. an easement. c. personalty d. a license. |
c. personalty, or personal property.
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K is interested in a house that fits most of her needs, but it is located in a busy downtown area where she is not sure she wants to live. Her concern about the property’s location is called
a. physical deterioration. b. area preference. c. permanence of investment. d. immobility. |
b. area preference. (we are talking about a person's preference)
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The word improvement refers to all of the following EXCEPT
a. streets. b. a sanitary sewer system. c. trade fixtures. d. The foundation |
c. trade fixtures.
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Real property can become personal property by
a. severance. b. purchase. c. hypothecation. d. attachment. |
a. severance.
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All of the following are physical characteristic of land EXCEPT
a. indestructibility. b. uniqueness. c. immobility. d. scarcity. |
d. scarcity. (refers to an economic characteristic of land)
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A broker showed an owner-occupied property that had window screens, venetian blinds and a wall bed. The broker secured a buyer whose offer was accepted by the owner, and the transaction was placed in escrow. Before the close of escrow, the seller may remove
a. all of the identified items as they are trade fixtures. b. only the venetian blinds as personal property. c. only the wall bed because it is real property. d. none of the identified items. |
d. none of the identified items. (they are all real property, permanently attached)
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Which of the following is considered to be personal property?
a. wood-burning fireplace b. awnings c. bathtubs d. patio furniture |
d. patio furniture
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Land is considered to be
a. indestructible. b. a wasting asset. c. immune to the forces of supply and demand. d. subordinate to real property rights. |
a. indestructible.
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A rancher owns a parcel of land on which oil was discovered. If the rancher has not preciously conveyed the oil rights, who owns the oil?
a. The rancher b. The tenant to whom the property has been leased c. The state government d. The federal government |
a. The rancher
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Certain items on the premises that are installed by the tenant and are related to the tenant’s business are called
a. fixtures. b. emblements. c. trade fixtures. d. easements. |
c. trade fixtures.
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Personal property includes all of the following EXCEPT
a. chattels. b. trade fixtures. c. emblements. d. fixtures. |
d. fixtures.
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Fixtures are
a. real property. b. chattels. c. removable by a tenant before the expiration of the lease. d. removable by a tenant after the expiration of the lease. |
a. real property.
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After the construction of a building over a railroad right-of-way, the trains can
a. operate as usual. b. no longer use the tracks under the building. c. use the tracks under the building only if they cause no problem for the building’s occupants d. use the tracks under the building as long as they first obtain the building owner’s permission. |
a. operate as usual.
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All of the following are economic characteristics of land EXCEPT
a. scarcity. b. permanence of investment. c. uniqueness. d. area preference |
c. uniqueness.
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Generally, personal property can be distinguished from real property by its
a. greater variety. b. mobility. c. price. d. multiplicity of use. |
b. mobility.
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An important characteristic of land is that it may be modified or improved at any given time. Depending on its type, an improvement may increase the value of real estate greatly. All of the following would be considered to be improvements to land EXCEPT
a. sewers. b. crops. c. buildings. d. roads. |
b. crops. (crops are personalty or chattle)
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T leases store space to K for a restaurant, and K installs his ovens, booths, counters and other equipment. When do these items become real property?
a. When they are installed b. When K defaults on his rental payments c. When the lease takes effect d. When the lease expires |
d. When the lease expires (becomes part of property unless they take it out before)
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The geographic location of any parcel of land
a. can be changed as some substances are removable from the land. b. can never be changed. c. can be changed because the topography can be changed. d. can be changed only under certain legal circumstances. |
b. can never be changed.
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Legally, the term improvements refers to all of the following EXCEPT
a. sidewalks. b. sewers. c. shrubbery. d. retaining walls. |
c. shrubbery.
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All of the following are tests for determining a fixture EXCEPT
a. intent of the parties. b. size of the item. c. method of attachment of the item. d. adaptation of the item to the real estate. |
b. size of the item.
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The owner of a house wants to fence the yard for her dog. When the fence is erected, the fencing materials are converted to real estate by
a. severance. b. annexation. c. immobility. d. indestructibility. |
b. annexation.
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The physical characteristics of land include which of the following?
a. Uniqueness b. Scarcity c. Permanence of investment d. Adaptation |
a. Uniqueness (b,c,d are economic characteristics)
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The rights of ownership of real property include all of the following EXCEPT
a. disposition. b. exclusivity. c. control. d. compatibility. |
d. compatibility.
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Which of the following is considered to have the greatest impact on the value of a property?
a. Area preference b. Permanence of investment c. Scarcity d. Uniqueness |
a. Area preference (location, location, location)
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51. Which of the following activities would most likely result in disciplinary action against a broker?
1. Allowing a newly licensed salesperson to hold open houses for the public before completing the company's training program 2. Paying a bonus directly to a licensed salesperson employed by another licensed broker 3. Requiring associate brokers in their employ to agree to non-compete clauses in their employment contracts 4. Having a salesperson employed by the broker found guilty of making a misrepresentation even if the broker had no knowledge of the misrepresentation |
51. 2. License law specifically prohibits a broker from paying a commission or other valuable consideration to anyone other than his or her licensed employees or another real estate broker (604(a)(12.1)).
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52. A broker is convicted of felony possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. After 30 days, the broker calls the Pennsylvania Real Estate Commission and leaves a message informing the commission of the conviction. Based on these facts, which of the following is true?
1. The broker has properly informed the Pennsylvania Real Estate Commission after the conviction, and the broker's license will not be affected. 2. Both the conviction and the broker's failure to properly notify the commission within 30 days of the conviction are grounds for suspension or revocation of the broker's license. 3. Because the conviction did not occur in state, it is not grounds for suspending or revoking the broker's license. 4. The conviction is evidence of both improper dealing and fraud. |
52. 2. A licensee is required to notify the commission of being convicted, pleading guilty, or nolo contendere to a felony or misdemeanor within 30 days of the verdict or fee (35.290 (a)). Being convicted in a court of competent jurisdiction in Pennsylvania or any other state could result in suspension or revocation of the broker's license (604 (a)(14)).
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53. As a result of a hearing alleging a violation of the license law, what action may the real estate commission take?
1. Suspend or revoke any license issued by it 2. Levy a fine not to exceed $500 3. Suspend a license and impose a fine 4. Impose a maximum sentence of up to three months imprisonment |
53. 3. As a result of a hearing, the commission may decide to suspend or revoke a license as well as impose fines not exceeding $1,000 (604 (a)). The commission has no authority to imprison a licensee. The Department of State, not the Pennsylvania Real Estate Commission, issues real estate licenses (401).
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54. If a licensee is found guilty of making substantial misrepresentation when dealing with the public, the commission may
1. levy a fine of up to $5,000. 2. impose a jail sentence of up to three months. 3. revoke the licensee's license and/or impose a fine. 4. suspend the licensees license or levy a fine but not do both for the same offense. |
54. 3. The commission may suspend or revoke a license or impose a fine of up to $1,000 or do both if a licensee is found guilty of making any substantial misrepresentation. The commission does not have authority to impose a jail sentence (604(a)).
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55. An individual is found guilty of engaging in business as a broker or salesperson without being properly licensed. The penalty for the first offense includes a fine
1. of not more than $5,000 and imprisonment for a period not exceeding two years. 2. not exceeding $500 or imprisonment not exceeding three months or both. 3. of up to $1,000. 4. not exceeding $ 1,000 or three months imprisonment. |
55. 2. License law provides that any person who engages in business without being licensed is subject to criminal prosecution. The first offense is a summary offense punishable by a fine not exceeding $500, imprisonment not exceeding three months, or both (303).
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56. What is the maximum penalty that could be imposed on an individual found guilty for the second time of engaging in the real estate business without a license?
1. Fine of $5,000 and imprisonment for a period of two years 2. Imprisonment for three months 3. Fine of $1,000 4. Fine of $2,000 and imprisonment for one year |
56. 1. The maximum penalty would be a fine of $5,000 and imprisonment for a period of two years. Specifically, the penalty for conviction for a second or subsequent offense is a fine of not less than $2,000 but not more than $5,000, imprisonment for not less than one year but not more than two years, or both (303).
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57. In Pennsylvania all of the following would be grounds for revoking a broker's license EXCEPT
1. being convicted of a felony. 2. advertising in a newspaper that he or she is a member of the Pennsylvania Association of Real Estate Professionals when in fact he or she is not. 3. depositing a buyer's earnest money into the salesperson's personal checking account. 4. agreeing with a seller to accept a listing for more than the company's normal commission rate. |
57. 4. A broker's compensation is negotiable between the parties. Misleading advertising is prohibited under 604 (a)(5) and being convicted of a felony could result in revocation of the broker's license under 604 (a)(14).
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58. In Pennsylvania, which of the following is legal and will not result in a broker facing suspension or revocation of the broker's license?
1. Being legally declared mentally incompetent 2. Depositing earnest money received into the firm's escrow account 3. Helping another person cheat on the licensing examination 4. Displaying a "For Sale" sign on a property without the owner's written consent |
58. 2. The broker is required to deposit earnest money into an escrow account. Erecting a "For Sale" sign without written consent is a violation of 604 (a)(8), and the issue of honesty and competency are addressed under 604 (a)(20).
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59. When is the Pennsylvania Real Estate Commission required to suspend a licensee's license?
1. If the licensee fails to perform as promised in a guaranteed sales plan 2. If the licensee is found liable in a civil trial for illegal discrimination 3. If the licensee commingles others' money or property with his or her own 4. If any amount of money had been paid from the Real Estate Recovery Fund to settle a claim against the licensee |
59. 4. While the conduct addressed in each choice could cause a license to be suspended, the only issue that requires an automatic suspension of the license is when the commission pays money from the recovery fund to settle a claim against a licensee (803(f)).
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60. Which of the following actions is legal and not a violation of license law?
1. Encouraging a seller to reject an offer because the prospective buyer is of a specific religion 2. Placing a "For Sale" sign in front of a house after receiving written permission to do so from the owner 3. Advertising that individuals who attend a promotional presentation will receive a prize without mentioning that they will also have to take a day trip to a new subdivision site 4. Allowing salespersons employed by a broker to maintain their own escrow accounts |
60. 2. A broker may place a "For Sale" sign on a property after receiving permission to do so. Brokers may not engage in discriminatory conduct (604(a)(22)). Only the broker has authority and responsibility to escrow funds in connection with real estate transactions (35.325 (a)). Advertisements regarding prizes must state the pre-requisites for receiving the prize or gift (35.306 (a)(2)).
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61. When a sole proprietor broker has his or her license suspended for two years, what effect does this have on the associate brokers and salespeople affiliated with the broker?
1. Affiliates' licenses will be revoked, subject to reinstatement after one year 2. Affiliates' licenses will also be suspended for a two-year period 3. Suspension has no effect on the affiliates 4. Affiliates' licenses are terminated |
61. 4. Salespersons and associate brokers are employed by and provide services on behalf of their employing broker. If the broker's license is suspended or revoked, licenses of the associate brokers and salespersons are terminated. To remain in active practice, the affiliates are required to find new employing brokers.
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62. In what circumstance may a violation of the license law on the part of a salesperson be grounds for the suspension or revocation of the employing broker's license?
1. The broker's license is only subject to suspension or revocation if the broker participated with the salesperson in violating the license law. 2. The broker's license is subject to suspension or revocation if it can be shown that the broker had actual knowledge of the violation committed by the salesperson. 3. Since the salesperson is employed by the broker, the broker's license is always subject to suspension or revocation as a result of any violation on the part of the salesperson. 4. Only the licensee actually found to have violated the license law may have a license suspended or revoked, so the broker's license may not be suspended or revoked because of the misconduct of the salesperson. |
62. 2. License law provides that the broker may have his or her license suspended or revoked only if the broker had actual knowledge of the violation (702 (b)) or if the conduct of the salesperson demonstrated a course of dealing that could serve as prima facia evidence of knowledge on the part of the broker (702 (c)).
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63. What is the minimum period of time a licensee who has had his or her license revoked must wait before reapplying for licensure?
1. 3 years 2. 5 years 3. 7 years 4. 10 years |
63. 2. Any person whose license has been revoked may reapply at the end of a five-year period from the date of revocation. They must meet all of the licensing qualifications of the act, including the examination requirement (501(c)).
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64. When is a violation of the license law on the part of a salesperson grounds for revocation or suspension of the license of the employing broker?
1. If it can be shown that the conduct that resulted in the disciplinary action was a common course of dealing for that salesperson 2. Only if the salesperson was an employee, rather than an independent contractor 3. Only if the employing broker and the licensed salesperson worked from the same office of the broker 4. Only if the offense involved monetary damage to a consumer |
64. 1. A common course of dealing followed by an employee constitutes prima facia evidence of knowledge upon the part of the employing broker and could result in suspension or revocation of the brokers license (702 (c)).
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65. A broker who wishes to place a "For Sale" sign on a listed property must first
1. obtain the written consent of the owner of the property. 2. sell the property. 3. secure an exclusive listing contract from the seller. 4. get permission from the neighbors and the local governing body. |
65. 1. The broker must obtain the written consent of the owner before erecting a "For Sale" or "For Rent" sign on property (35.301 (a); 604 (a)(8)). The broker does not have to gain permission from the neighbors, local governing body, or sell the property. It is permissible to have signs on open listings as well as exclusives. Written consent, however, is always required.
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66. When advertising real property for sale, real estate salespeople
1. need only to include the salesperson's personal phone number. 2. may simply give a telephone number to call for more information. 3. must include the name of the employing broker in the ad. 4. must identify the location of the property. |
66. 3. An advertisement by a salesperson must contain the business name and telephone number of the employing broker (3 5.3 05 (b)). Real estate salespersons may not advertise under their own names.
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67. A real estate salesperson decides to sell his or her own property "For Sale by Owner." When advertising the property, the salesperson
1. must disclose the name, address, and phone number of his or her employing broker. 2. must disclose the fact that she or he is a real estate licensee in the ad. 3. if acting as a For Sale by Owner does not need to disclose his or her license status in the ad. 4. is prohibited from advertising as a For Sale by Owner. |
67. 2. All licensees are required to disclose their license status in advertisements for property if the property is not listed for sale with a real estate company (35.304).
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68. When a broker advertises his or her production or position in the market, what must be included in the advertisement?
1. Number of licensed branch offices that the broker maintains in the market 2. Municipality that the market comprises 3. Dollar volume of sales transactions written in the market 4. Number of cooperating brokers that engage in business in the market |
68. 2. Advertisements by a broker about production or position in the market must identify the municipality that the market comprises (35.307 (b)).
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69. When advertising an individual property for sale, the broker must also include
1. the price of the property being advertised. 2. a statement or logo affirming the brokers commitment to nondiscriminatory business practices. 3. the business name of the broker as designated on the license. 4. the name and business telephone number of the listing salesperson or associate broker. |
69. 3. The business name as designated on the license must be included in all advertising (35.305). The telephone number of the broker must be included if the advertisement includes the name and telephone number of a salesperson or associate broker.
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70. When advertising property for sale, what must the broker include in the advertisement?
1. Listing price of the property 2. Name of the salesperson who secured the listing 3. Broker's business name designated on the license 4. Disclosure statement identifying who the broker is representing |
70. 3. A broker is required to advertise under the business name designated on the license (35.305). The listing price or name of the listing salesperson is not required in advertising. A disclosure notice must be provided at the initial interview with a consumer.
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71. The broker has developed a Web site advertising the broker's office. What, if anything, does the broker need to include?
1. Name as it appears on the license 2. License number of brokerage and list of all current active licensees 3. Names of active licensees with addresses and phone numbers 4. There is no need for any disclosure. |
71. 1. The real estate commission policy regarding internet advertising requires that the broker' s name as it appears on the license must be included on each page of the site on which the firm's advertisement occurs. The broker does not have to include license numbers, lists of licensees, or their addresses and phone numbers.
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72. A licensed salesperson secures a listing and wants to advertise it on the salesperson's own internet Web site. Which of the following is a requirement that the salesperson must comply with when advertising on the internet?
1. A complete description of the property, including address and price, must be included in the advertising. 2. The advertisement must contain the business name and telephone number of the employing broker. 3. The salesperson must have the specific written permission of the owner to advertise the property on the internet, rather than traditional advertising sources. 4. The salesperson may not advertise on an internet Web site unless the broker maintains a company Web site for purposes of advertising all of the company's listings. |
72. 2. Any advertisement, including internet Web site advertising, must include the business name of the broker as it appears on the license. Recently adopted commission policies require that the broker's name and telephone number be included on each page of internet Web site advertising.
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73. Three weeks before N begins his real estate prelicense class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5 percent commission. The seller accepts an offer while N is taking the class and closes the day N passes the examination. The neighbor refuses to pay N the agreed commission. Can N sue to recover payment?
1. Yes, because N was formally enrolled in a course of study intended to result in a real estate license at the time an offer was procured and accepted, the commission agreement is binding. 2. No, a real estate salesperson must have a permanent office in which his or her license is displayed in order to collect a commission from a seller. 3. Yes, while the statute of frauds forbids recovery on an oral agreement for the conveyance of real property, law permits enforcement of an oral commission contract under these facts. 4. No, license law prohibits lawsuits to collect commissions unless the injured party was properly licensed at the time the agreement was reached. |
73. 4. License law prohibits the filing of any suit or action claiming compensation for any act for which a license is required if the person filing suit was not duly licensed at the time of offering to perform such act or service (302).
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74. An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following penalties upon conviction for a first offense?
1. Fine not to exceed $500. 2. Fine not to exceed $ 1,000 and one year imprisonment. 3. Civil penalty of $5,000 in addition to other penalties provided by law. 4. A fine not to exceed $5,000 and a mandatory prison term not to exceed 5 years. |
74. 1. Upon conviction for a first offense for practicing real estate without a license, the maximum penalty is a fine not exceeding $500, imprisonment not exceeding three months, or both (303).
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75. An individual wants to sell her own house. In this situation, the individual
1. does not need a real estate license to sell her house herself. 2. must first obtain a real estate license issued by the Pennsylvania Real Estate Commission. 3. may obtain a temporary real estate license in order to legally sell her house. 4. may sell her house without obtaining a real estate license only if she is a licensed attorney. |
75. 1. Owners of real estate conducting business with respect to their own property are not required to be licensed. They are excluded from licensure (304 (1)).
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76. An unlicensed salesperson negotiated the sale of real estate in return for the promise of compensation. After the transaction closes, the salesperson encounters difficulty collecting the agreed upon fee. In this situation, the salesperson
1. may record a lien against the property for the amount owed. 2. can file a civil lawsuit against the seller in the court of common pleas in the county where the property is located. 3. can file a claim for compensation from the Real Estate Recovery Fund. 4. can do nothing to recover the agreed upon compensation. |
76. 4. The unlicensed person may do nothing. An unlicensed salesperson is involved in illegal activity and has no recourse to recover compensation (302).
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77. An officer of a corporation is designated by the corporation to handle the sale of a parcel of real estate owned by the corporation. Which of the following statements is true regarding the corporate officer handling the sale of real estate owned by the corporation?
1. Unless the corporate officer is a licensed broker, he or she may not handle the sale of real estate owned by the corporation. 2. The corporate officer must be the president and CEO of the corporation to engage in business on behalf of the corporation. 3. The corporation, as the owner of real estate, may designate up to five of its officers to conduct business on behalf of the corporation without any license required. 4. The corporate officer may handle the sale only if there is no compensation involved. |
77. 3. In the case of a corporation or partnership, this exclusion shall not extend to more than five of its partners or officers (304 (1)). The provisions of the license law do not apply to owners conducting business with regard to their own property.
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78. A broker personally owns a 10-unit residential, multifamily property. The broker hires an unlicensed individual for the purpose of managing and maintaining the property. The unlicensed individual may legally perform which of the following activities?
1. Show apartments to prospective tenants and provide information on rental amounts and leasing determination 2. Enter into leases on behalf of the owner 3. Negotiate terms or conditions of occupancy with current or prospective tenants 4. Supervise and direct a branch office of the broker located at the property |
78. 1. An individual directly employed by the owner of multifamily residential property for the purpose of managing or maintaining the property is exempt from provisions of the license law. So long as the owner retains the authority to make decisions, the employee may show apartments and provide information on rentals. Unlicensed employees may not negotiate terms or conditions nor may they enter into leases on behalf of the owner (304 (10)).
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79. A foreign corporation that owns a building in Pennsylvania decides to sell without listing it for sale. Who may legally handle the transaction on behalf of the corporation?
1. Only a licensed Pennsylvania broker may handle the sale of property owned by a foreign corporation. 2. A licensed broker in the state where the corporation is headquartered may handle the sale without being licensed in Pennsylvania. 3. A licensed Pennsylvania salesperson may be directly employed by the corporation to handle the transaction. 4. An attorney at law who renders services to the corporation within the scope of an attorney-client relationship may handle the transaction for the corporation. |
79. 4. An attorney at law who receives a fee for rendering services within the scope of an attorney client relationship is exempt from licensure (35.302(5)) so can handle the transaction. As an owner, the corporation can designate no more than five of the corporation's officers to act on behalf of the corporation as the owner.
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80. An unlicensed individual acting as a real estate consultant negotiated a sale of property and was unable to collect the agreed upon fee from the seller. The unlicensed individual
1. may file a lawsuit for breach of contract in the court of common pleas in the county where the land is located. 2. may seek compensation from the Real Estate Recovery Fund for the unpaid fee. 3. have no recourse under the law because a person holding himself out as a real estate consultant is required to have a broker's license. 4. may record a judgment against the owner if the contract contained a confession of judgment clause. |
80. 3. This person has no recourse. License law prohibits the filing of suits seeking recovery for conduct engaged in violation of the license law. The term consultant, counselor, agent, or finder are all directly included in the definition of "broker" (201).
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71. The broker has developed a Web site advertising the broker's office. What, if anything, does the broker need to include?
1. Name as it appears on the license 2. License number of brokerage and list of all current active licensees 3. Names of active licensees with addresses and phone numbers 4. There is no need for any disclosure. |
71. 1. The real estate commission policy regarding internet advertising requires that the broker' s name as it appears on the license must be included on each page of the site on which the firm's advertisement occurs. The broker does not have to include license numbers, lists of licensees, or their addresses and phone numbers.
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72. A licensed salesperson secures a listing and wants to advertise it on the salesperson's own internet Web site. Which of the following is a requirement that the salesperson must comply with when advertising on the internet?
1. A complete description of the property, including address and price, must be included in the advertising. 2. The advertisement must contain the business name and telephone number of the employing broker. 3. The salesperson must have the specific written permission of the owner to advertise the property on the internet, rather than traditional advertising sources. 4. The salesperson may not advertise on an internet Web site unless the broker maintains a company Web site for purposes of advertising all of the company's listings. |
72. 2. Any advertisement, including internet Web site advertising, must include the business name of the broker as it appears on the license. Recently adopted commission policies require that the broker's name and telephone number be included on each page of internet Web site advertising.
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73. Three weeks before N begins his real estate prelicense class, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5 percent commission. The seller accepts an offer while N is taking the class and closes the day N passes the examination. The neighbor refuses to pay N the agreed commission. Can N sue to recover payment?
1. Yes, because N was formally enrolled in a course of study intended to result in a real estate license at the time an offer was procured and accepted, the commission agreement is binding. 2. No, a real estate salesperson must have a permanent office in which his or her license is displayed in order to collect a commission from a seller. 3. Yes, while the statute of frauds forbids recovery on an oral agreement for the conveyance of real property, law permits enforcement of an oral commission contract under these facts. 4. No, license law prohibits lawsuits to collect commissions unless the injured party was properly licensed at the time the agreement was reached. |
73. 4. License law prohibits the filing of any suit or action claiming compensation for any act for which a license is required if the person filing suit was not duly licensed at the time of offering to perform such act or service (302).
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74. An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following penalties upon conviction for a first offense?
1. Fine not to exceed $500. 2. Fine not to exceed $ 1,000 and one year imprisonment. 3. Civil penalty of $5,000 in addition to other penalties provided by law. 4. A fine not to exceed $5,000 and a mandatory prison term not to exceed 5 years. |
74. 1. Upon conviction for a first offense for practicing real estate without a license, the maximum penalty is a fine not exceeding $500, imprisonment not exceeding three months, or both (303).
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75. An individual wants to sell her own house. In this situation, the individual
1. does not need a real estate license to sell her house herself. 2. must first obtain a real estate license issued by the Pennsylvania Real Estate Commission. 3. may obtain a temporary real estate license in order to legally sell her house. 4. may sell her house without obtaining a real estate license only if she is a licensed attorney. |
75. 1. Owners of real estate conducting business with respect to their own property are not required to be licensed. They are excluded from licensure (304 (1)).
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76. An unlicensed salesperson negotiated the sale of real estate in return for the promise of compensation. After the transaction closes, the salesperson encounters difficulty collecting the agreed upon fee. In this situation, the salesperson
1. may record a lien against the property for the amount owed. 2. can file a civil lawsuit against the seller in the court of common pleas in the county where the property is located. 3. can file a claim for compensation from the Real Estate Recovery Fund. 4. can do nothing to recover the agreed upon compensation. |
76. 4. The unlicensed person may do nothing. An unlicensed salesperson is involved in illegal activity and has no recourse to recover compensation (302).
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77. An officer of a corporation is designated by the corporation to handle the sale of a parcel of real estate owned by the corporation. Which of the following statements is true regarding the corporate officer handling the sale of real estate owned by the corporation?
1. Unless the corporate officer is a licensed broker, he or she may not handle the sale of real estate owned by the corporation. 2. The corporate officer must be the president and CEO of the corporation to engage in business on behalf of the corporation. 3. The corporation, as the owner of real estate, may designate up to five of its officers to conduct business on behalf of the corporation without any license required. 4. The corporate officer may handle the sale only if there is no compensation involved. |
77. 3. In the case of a corporation or partnership, this exclusion shall not extend to more than five of its partners or officers (304 (1)). The provisions of the license law do not apply to owners conducting business with regard to their own property.
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78. A broker personally owns a 10-unit residential, multifamily property. The broker hires an unlicensed individual for the purpose of managing and maintaining the property. The unlicensed individual may legally perform which of the following activities?
1. Show apartments to prospective tenants and provide information on rental amounts and leasing determination 2. Enter into leases on behalf of the owner 3. Negotiate terms or conditions of occupancy with current or prospective tenants 4. Supervise and direct a branch office of the broker located at the property |
78. 1. An individual directly employed by the owner of multifamily residential property for the purpose of managing or maintaining the property is exempt from provisions of the license law. So long as the owner retains the authority to make decisions, the employee may show apartments and provide information on rentals. Unlicensed employees may not negotiate terms or conditions nor may they enter into leases on behalf of the owner (304 (10)).
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79. A foreign corporation that owns a building in Pennsylvania decides to sell without listing it for sale. Who may legally handle the transaction on behalf of the corporation?
1. Only a licensed Pennsylvania broker may handle the sale of property owned by a foreign corporation. 2. A licensed broker in the state where the corporation is headquartered may handle the sale without being licensed in Pennsylvania. 3. A licensed Pennsylvania salesperson may be directly employed by the corporation to handle the transaction. 4. An attorney at law who renders services to the corporation within the scope of an attorney-client relationship may handle the transaction for the corporation. |
79. 4. An attorney at law who receives a fee for rendering services within the scope of an attorney client relationship is exempt from licensure (35.302(5)) so can handle the transaction. As an owner, the corporation can designate no more than five of the corporation's officers to act on behalf of the corporation as the owner.
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80. An unlicensed individual acting as a real estate consultant negotiated a sale of property and was unable to collect the agreed upon fee from the seller. The unlicensed individual
1. may file a lawsuit for breach of contract in the court of common pleas in the county where the land is located. 2. may seek compensation from the Real Estate Recovery Fund for the unpaid fee. 3. have no recourse under the law because a person holding himself out as a real estate consultant is required to have a broker's license. 4. may record a judgment against the owner if the contract contained a confession of judgment clause. |
80. 3. This person has no recourse. License law prohibits the filing of suits seeking recovery for conduct engaged in violation of the license law. The term consultant, counselor, agent, or finder are all directly included in the definition of "broker" (201).
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81. A salesperson remains inactive without renewing his license for over five years. Before the license will be reissued, the applicant must
1. complete 60 hours of coursework and pass the salesperson's license exam. 2. complete 14 hours of mandatory continuing education with no exam requirement. 3. submit to and pass the salesperson's license examination. 4. successfully complete the employing broker's training program. |
81. 3. Any person who remains inactive for a period of five years without renewing his or her license must, prior to having a license reissued, take and pass the examination pertinent to the license for which the person is reapplying (501 (b)). There is no education or training requirement as a condition to reactivating a license on inactive status over five years.
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82. A broker operating as a sole proprietor wants to locate the main office of his business at his personal residence. In this case all of the following requirements would apply EXCEPT the
1. office shall be devoted to the transaction of real estate business and be arranged to permit business to be conducted in privacy. 2. entrance to the office must be separate from the entrance to the residence. 3. business name of the broker as designated on the license must be displayed prominently and in permanent fashion outside the office. 4. broker may not employ salespersons or associate brokers to work at an office in a personal residence. |
82. 4. Rules governing offices do not prohibit a licensed broker from employing salespersons or associate brokers when the brokers office is located in a private residence. The rules do provide that the office must have a separate entrance, that the business name be displayed, and that the office allow for business to be conducted privately (35.342).
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83. In Pennsylvania, who of the following would need to be a licensed real estate broker or salesperson?
1. Property management company that employs fewer than three leasing agents 2. Licensed attorney acting under a power of attorney to convey real estate 3. Resident apartment manager employed by an owner when showing apartments to prospective tenants 4. Partnership selling a building owned by the partners |
83. 1. Managing real estate is an activity included in the definition of a real estate broker provided in the license law, so a company will need a license (201). Licensed attorneys, partnerships acting as owners of property, and resident managers employed by owners of multifamily residential properties are excluded from the license law (304).
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84. Under Pennsylvania licensing law, a partnership, association, or corporation will be granted a broker's license only if
1. one officer or partner is designated as the broker of record. 2. every member and officer actively participating in the brokerage business has a brokers license. 3. all license papers are filed with the Secretary of State. 4. the brokerage business has paid a one- time fee to the recovery fund. |
84. 1. Corporations, partnerships, and associations can be issued a broker's license if the individual designated as the broker of record meets the individual requirements to be issued a broker's license. The real estate commission processes license applications. Employees engaging in the real estate business may hold a salesperson's, rather than broker's, license. Each individual is required to pay a fee to the recovery fund (513 and 802).
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85. An applicant for a real estate salesperson's license in Pennsylvania must
1. have completed at least two years of college. 2. be at least 21 years old. 3. not have been convicted of a felony within five years before applying. 4. show proof of passing the license examination within three years of the date of application for licensure. |
85. 4. Sections 521 and 522 establish requirements, which include that the application shall be received by the commission within three years of the date upon which the applicant passed the examination. Qualifications for licensure as a salesperson do not include college education nor a minimum age of 21. Conviction for a felony offense does not preclude the applicant from being issued a license.
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86. Some people and situations are exempt from the provisions of the Pennsylvania Real Estate License Act. Who of the following is not exempt and must hold a real estate license?
1. Property owner who sells or leases his or her own property 2. Individual who receives compensation from sellers or landlords for procuring prospective buyers or renters of real estate 3. Individual who is employed directly by an owner as a resident property manager for an apartment complex 4. Licensed auctioneer handling the sale of real estate at a bona fide auction |
86. 2. An individual who undertakes to promote the sale, exchange, purchase, or rental of real estate or who represents himself to be a real estate consultant, counselor, agent, or finder is required to hold a broker's license (201(1)). A for-sale or for-rent by owner is exempt as is a resident manager and a licensed auctioneer at a bona fide auction.
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87. Which of the following is a requirement to obtain a real estate salesperson's license in Pennsylvania?
1. Successful completion of 14 credit hours of real estate law, finance, and appraisal 2. An associate degree in real estate from an accredited college, university, or proprietary school 3. United States citizenship 4. Successful completion of 60 classroom hours of instruction in courses prescribed by the commission |
87. 4. The education requirement for a salesperson is completion of 60 hours of real estate instruction in areas of study prescribed by the commission (521). Citizenship is not a requirement for licensure nor is a degree from a college or university.
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88. An individual directly employed by the owner of residential multifamily buildings is EXEMPT from licensing requirements when
1. showing apartments to prospective tenants and explaining building rules and regulations. 2. preparing and entering into leases on behalf of the building owner. 3. negotiating terms or conditions of occupancy with current tenants. 4. holding money belonging to tenants other than on behalf of the building owner. |
88. 1. Unlicensed individuals directly employed by an owner of residential multifamily buildings for the purpose of managing or maintaining the property are not required to be licensed, but the scope of activities they may perform is limited. They may show apartments, provide information on rental amounts, and explain building rules and regulations (304 (10)). Unlicensed individuals may not prepare and enter into leases, negotiate terms or conditions, or hold money belonging to tenants.
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89. An applicant for a broker's license must
1. post a performance bond in an amount of $10,000. 2. be a resident of the Commonwealth of Pennsylvania. 3. have been actively engaged in selling real estate for at least three years. 4. be a high school graduate or provide proof of an education equivalent thereto. |
89. 4. The applicant for licensure as a broker in Pennsylvania is required to have been engaged as a licensed real estate salesperson or possess educational or experience qualifications which the commission deems to be the equivalent thereof (511 (4)). Residency or posting of a performance bond are not required of a broker candidate. The applicant must be a high school graduate or provide proof of an education equivalent thereto (511(2)).
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90. A candidate for a broker's license in Pennsylvania must
1. be a college graduate. 2. be a citizen of the United States. 3. have experience in real estate sales. 4. have passed the broker's license exam within three years prior to license application. |
90. 4. The application must be received by the commission within three years of the date of passing the license exam (512 (c)). Neither citizenship nor a college degree are required of broker candidates. Qualifying experience is not limited to the field of real estate sales; a candidate could qualify for licensure with other experience.
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91. Which of the following candidates for licensure is required to take the standard real estate salesperson's license examination and score a passing grade but is not required to complete any mandatory education requirement prior to taking the exam?
1. Builder-owner salesperson applicant 2. Cemetery salesperson applicant 3. Rental listing referral license applicant 4. Campground membership salesperson license applicant |
91. 1. A builder owner salesperson applicant must take and pass the salesperson's examination but has no mandatory education requirement (551). Campground membership salesperson and cemetery salesperson applicants have no examination requirement. Rental listing referral applicants have both an education and an examination requirement.
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92. Which of the following applicants for licensure is not required to pass a written exam for licensure?
1. Builder-owner salesperson 2. Rental listing referral agent 3. Cemetery salesperson 4. Cemetery broker |
92. 3. There is no examination or coursework required for a cemetery salesperson. Builder-owner salespersons (551), rental listing referral agents (561), and cemetery brokers (531) are all required to pass a written exam prior to licensure.
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93. All of the following must complete education or training requirements prior to licensure EXCEPT
1. campground membership salespersons. 2. time-share salespersons. 3. cemetery salespersons. 4. rental listing referral agents. |
93. 3. There is no education requirement or exam required for a cemetery salesperson (541). Campground membership salespersons (581), time-share salespersons (591), and rental listing referral agents (561) are all required to complete education or training requirements as a condition of licensure.
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94. In order to qualify for examination as a broker, the candidate must
1. be a high school graduate or have passed a high school general equivalency examination. 2. have been actively employed as a licensed salesperson for at least three years. 3. be a resident of Pennsylvania. 4. submit recommendations from at least two brokers licensed in Pennsylvania. |
94. 1. An individual who wants to take the broker's examination must be a high school graduate or have passed a high school general equivalency exam (35.271 (a)). There is no residency requirement, and candidates may possess education or experience that the commission considers equivalent to three years experience as a licensed salesperson. Recommendations are required for licensure as a broker, rather than a condition of taking the examination.
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95. Of the following licensed individuals, who must complete 14 hours of mandatory continuing education as a condition of license renewal?
1. Licensed time-share or campground membership salesperson 2. Licensed builder-owner salesperson 3. Licensed broker of record of a corporation or partnership listing and selling real estate 4. Licensed cemetery broker |
95. 3. The requirements for mandatory continuing education requirements apply to real estate brokers and real estate salespersons only. They do not apply to other activities for which licenses are required, i.e., time-shares, cemetery brokers, or licensed builder owners (404.1 (a)).
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96. When do real estate salespersons' licenses expire in Pennsylvania?
1. Biennially, in the month issued 2. May 31 of every even-numbered year 3. December 31 of the third year of licensure 4. Two years from the date the license was issued |
96. 2. All licenses expire at the end of the license period established by the commission. Salesperson and broker licenses all expire the last day of May in even-numbered years and must be renewed on or before June 1.
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97. To renew a license in Pennsylvania, a salesperson or broker must
1. prove that he or she is a Pennsylvania resident. 2. be actively participating in the real estate business. 3. have completed six hours of continuing education in the last two years, composed of three hours in real estate law and three hours in fair housing. 4. complete 14 hours of continuing education and pay the appropriate renewal fee. |
97. 4. Commission rules (35.382) require a broker or salesperson to complete 14 hours of commission approved continuing education as a condition precedent to renewal of a current license. Renewal fees established by the commission must also be paid. (407 (a)) There is no requirement to be actively participating in the real estate business nor must the licensee be a Pennsylvania resident.
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98. The term "broker" includes in its definition all of the following activities EXCEPT
1. managing real estate. 2. appraising real estate. 3. representing oneself as a real estate consultant or counselor. 4. performing a comparative market analysis. |
98. 2. Appraisal activities are regulated by the State Board of Certified Real Estate Appraisers, rather than the Pennsylvania Real Estate Commission. A broker can manage real estate, do a comparative market analysis, and be a real estate consultant or counselor.
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99. Who of the following persons must have a real estate broker's license in order to transact real estate business?
1. Person who owns a six-unit building and personally manages the building, collects rents, and shows the apartments to prospective tenants 2. Person who negotiates the sales of entire businesses, including their stock, equipment, and buildings, for a promised fee 3. Manager of a large apartment building who is directly employed by the owner and who shows apartments to prospective tenants as part of his or her regular duties 4. Person who has power of attorney to negotiate the sale of his or her parent's residence |
99. 2. Negotiating the sale of real estate for another in return for a fee is a license-required activity. Residential multi-family property managers who are employed directly by the owner, persons holding power of attorney, and owners conducting real estate business with regard to their own property are excluded from the license law (304).
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100. The on-site property manager employed directly by the owner of Acme Apartments is responsible for collecting rents for the apartments. In this position, the on-site manager
1. must have a salesperson's license. 2. must have a broker's license. 3. is exempt from the licensing requirements. 4. is not required to be licensed if he or she is an independent contractor. |
100. 3. Any person employed by an owner for the purpose of managing or maintaining multi-family residential property is excluded under the license law with regard to certain activities they may perform (304 (10)). Collecting rents in this situation would not be an activity requiring licensure.
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