Pa Real Estate Exam

Front 1

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.

Back 1

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.

Front 2

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.

Back 2

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.

Front 3

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 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.

Back 3

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.

Front 4

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.

Back 4

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)).

Front 5

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

Back 5

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.

Front 6

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.

Back 6

6. 4. In Pennsylvania, dual agency is permitted if both parties give their fully informed consent in writing 606.4(A).

Front 7

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

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.

Back 7

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.

Front 8

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.

Back 8

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.

Front 9

9. In a dual agency situation, a broker may collect compensation from both the seller and the buyer if

1. the broker is licensed as a dual agent.
2. the buyer and the seller are related by blood or marriage.
3. both parties give their informed consent in writing to the dual compensation.
4. both parties are represented by attorneys.

Back 9

9. 3. Written consent to act as a dual agent must include a statement of the terms of compensation (606.4). Both parties must consent to the dual compensation. Neither must be represented by attorneys nor do they have to be related.

Front 10

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

1. 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.
2. XYZ Realty obtains LMN Realty's consent to subagency, and the buyer is given an Agency Disclosure Notice, stating that XYZ Realty represents the
seller.
3. the buyer verbally agrees to a buyer relationship with LMN Realty.
4. a salesperson from XYZ Realty accompanies them during the showing.

Back 10

10. 1. The seller must consent in writing in order for the listing broker to extend an offer of subagency (606.1 (c)). The cooperating broker acting as a subagent must provide the consumer notice and appropriate documentation to the buyer prospect (606.1 (b)(4)). The buyer is not the one to agree to the offer of subagency.