1. Which of the following is a violation of Pennsylvania real estate license law?
A. Accepting a bonus from the licensee's broker
B. Requiring the seller to hire an appraiser
C. Advertising a new listing in a real estate magazine
D. Failing to give the escrow funds promptly to the broker Correct
Explanation
Failing to give escrow funds promptly to the broker violates Pennsylvania real estate license law, as outlined in the Real Estate Licensing and Registration Act (RELRA). Section 604(a)(15) of RELRA requires licensees to promptly deliver all escrow funds to their employing broker for deposit into an escrow account. This ensures proper handling and accountability of funds entrusted to the licensee. Choices A, B, and C are not violations: accepting a bonus is permissible if agreed upon, requiring an appraiser is a business decision, and advertising a listing is standard practice.
2. Which of the following types of housing discrimination is NOT covered by state law?
A. Age
B. Gender
C. Mental disability
D. Income level Correct
Explanation
The Pennsylvania Human Relations Act (PHRA) prohibits housing discrimination based on protected classes such as age, gender, and disability, including mental disability. Income level is not a protected class under the PHRA. While some local ordinances may address income discrimination, the question specifies state law, making income level the correct answer.
3. A broker has been hired by a buyer to find an investment property. Upon locating a suitable property listed by another firm, the broker MUST:
A. Initiate a title search of the property
B. Recommend a professional inspection of the property
C. Disclose their dual representation, in writing, to both buyer and seller
D. Disclose to the listing broker or the seller that they represent the buyer Correct
Explanation
Under Section 606.1 of RELRA, a buyer's broker must disclose their representation of the buyer to the listing broker or seller when dealing with a property listed by another firm. This promotes transparency and avoids conflicts of interest. Choice C is incorrect because dual representation is not indicated here; the broker represents only the buyer. Choices A and B are not mandatory under license law, though they may be advisable.
4. If a license is placed on inactive status or expires, it may only be reactivated without retaking the licensing examination if reactivation is requested within:
A. two years
B. three years
C. four years
D. five years Correct
Explanation
Section 501(b) of RELRA allows a real estate license that is inactive or expired to be reactivated without retaking the licensing exam if the licensee applies within five years. After this period, the exam is required to ensure competency in current real estate practices.
5. Which of the following is a requirement of a valid listing agreement?
A. It must include a co-listing agent
B. It must be accompanied by a home appraisal
C. It must be on a state-approved listing agreement form
D. It must describe the services to be performed Correct
Explanation
Section 608 of RELRA mandates that a listing agreement include a description of the services to be performed by the broker, such as marketing and negotiation, to clarify the scope of the agreement. Choices A, B, and C are not required: a co-listing agent is optional, an appraisal is not mandatory, and Pennsylvania does not require a state-approved form for listing agreements.