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RePA_Sales_S questions and answers
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Pennsylvania Real Estate Commission PA Salesperson State Exam Sample Questions (Q26-Q31):
NEW QUESTION # 26
A salesperson secures a listing priced at $110,000. A prospective buyer asks the salesperson to write a
$65,000 offer for the property. The salesperson should:
- A. Prepare the offer as requested but not waste the seller's time presenting it.
- B. Prepare the offer as requested and present it to the seller.
- C. Suggest that the buyer have another licensee prepare the offer.
- D. Advise the buyer to offer more for the property since the seller is unlikely to accept such a low offer.
Answer: B
Explanation:
Under49 Pa. Code § 35.292 (Duties of Licensees Generally),a real estate licensee is required to present all written offers to the seller, regardless of the amount.
* It is the seller's right to accept, reject, or counter an offer, not the salesperson's decision.
* A salesperson cannot refuse to submit an offer based on personal opinions about the price.
* Presenting all offers ensures fair dealings and upholds fiduciary duty to the seller.
Why the other answers are incorrect:
* Option B (Not Waste the Seller's Time):It is the seller's decision to accept or reject an offer, not the salesperson's.
* Option C (Advise Buyer to Offer More):A licensee must remain neutral and cannot pressure a buyer to increase their offer.
* Option D (Suggest Buyer Use Another Agent):There is no reason to transfer the buyer to another agent. The agent must present the offer.
NEW QUESTION # 27
The provisions of the Real Estate Licensing and Registration Act apply to:
- A. A licensed auctioneer who is auctioning property.
- B. A trustee who participates in real estate transactions under the authority of a court order.
- C. A real estate licensee selling real estate they own.
- D. An attorney-at-law who participates in real estate transactions on behalf of a client.
Answer: C
Explanation:
Under63 P.S. § 455.304 (Exemptions from Licensing Requirements),most individuals selling their own property are exempt from real estate licensing requirements.However, a real estate licensee selling their own real estate must comply with disclosure laws and ethical obligations.
* If a real estate licensee sells their own property, they must disclose in all advertising that they are a licensed real estate professionalto avoid misleading the public.
* While a non-licensee selling their own property is not covered under real estate licensing laws, a licensed salesperson must adhere to licensing and disclosure laws.
Why the other answers are incorrect:
* Option A (Trustee under Court Order):Court-appointed trustees are exempt from real estate licensing requirements.
* Option B (Attorney Representing Clients):Attorneys are permitted to handle real estate transactions as part of their legal practice without a real estate license.
* Option D (Licensed Auctioneer):Auctioneers selling real estate are regulated under separate auctioneer licensing laws, not real estate licensing laws.
NEW QUESTION # 28
Interest earned on an escrow account is:
- A. Payable subject to an agreement between the parties.
- B. Equally divided between the buyer and seller.
- C. Equally divided between the listing and selling brokers.
- D. Payable to the broker holding the deposit.
Answer: A
Explanation:
Under49 Pa. Code § 35.326 (Escrow Accounts and Interest),interest earned on escrow accounts belongs to the party or parties as determined by the terms of the contract or agreement.
* A broker cannot personally benefit from interest earned on escrow funds unless the contract explicitly allows it.
* The purchase agreement must specify how the interest is handled, whether it is payable to the buyer, seller, or split between parties.
Why the other answers are incorrect:
* Option A (Payable to the Broker):A broker cannot keep interest from an escrow account unless agreed upon in writing.
* Option B (Equally Divided Between Buyer and Seller):Interest division is not automatic; it must be outlined in the contract.
* Option C (Equally Divided Between Brokers):Brokers do not have rights to escrow interest unless explicitly agreed upon.
NEW QUESTION # 29
According to the Pennsylvania Real Estate Commission, which one of the following actions by a licensee is prohibited conduct?
- A. Failure to disclose the licensee's use of a third party to acquire property listed by the licensee's office
- B. Taking a listing that has a duration of only 2 months
- C. Failure to engage legal counsel to respond to a Commission request for information stemming from a complaint about the licensee
- D. Negotiating a commission that seriously undercuts those of other brokerage firms
Answer: A
Explanation:
A real estate licensee in Pennsylvania isprohibited from failing to disclose any personal interestin a transaction. This includesusing a third party to purchase property listed by the licensee's own office.
* 49 Pa. Code § 35.283 (Disclosure of Interest)requires that alicensee must disclose any financial interest they have in a transaction.
* If a licensee arranges for a third party (such as a relative or business associate) to purchase a property without disclosure, this is considered a serious ethical violation.
Why the other answers are incorrect:
* Option A (Short Listing Duration):Listingsdo not have a minimum required time period, so a2- month duration is permissible.
* Option B (Undercutting Commission):Commission feesare negotiable, and the Real Estate Commission does not set a minimum fee.
* Option D (Legal Counsel Not Required):Licenseesare not required to hire legal counselto respond to Commission complaints, but they must respond honestly and fully.
NEW QUESTION # 30
Which of the following activities performed by the manager of a multifamily dwelling REQUIRES a real estate license?
- A. Providing information on rental amounts to prospective renters
- B. Distributing building rules and regulations
- C. Showing apartments to prospective renters
- D. Entering into leases
Answer: D
Explanation:
Areal estate license is required to enter into leases on behalf of a landlordbecausethis involves negotiating real estate transactions.
* According to 49 Pa. Code § 35.201 (Definitions), property management activities that include leasing, collecting rent, and negotiating lease terms require a real estate license.
* A property manager who is actively negotiating leases must hold a real estate license unless they are directly employed by the property owner.
Why the other answers are incorrect:
* Option B (Distributing Rules):Thisdoes not require a licensesince it is administrative.
* Option C (Showing Apartments):Showing apartmentsdoes not require a license as long as no negotiations occur.
* Option D (Providing Rental Info):Providing information is not negotiating a lease, so a license is not needed.
NEW QUESTION # 31
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