Question 39

Failing to give the escrow funds promptly to the broker is a violation of Pennsylvania real estate license law.

Promptly delivering escrow funds to the broker is a critical requirement under Pennsylvania real estate license law. Failure to do so can lead to disciplinary action against the licensee.

A) Accepting a bonus from the licensee's broker

Accepting a bonus from the broker is generally permissible as long as it is disclosed and complies with the broker's policies. It does not constitute a violation of real estate license law, as it is considered part of the compensation agreement between the broker and the licensee.

B) Requiring the seller to hire an appraiser

Requiring a seller to hire an appraiser is not a violation of real estate license law. In fact, it can be a standard practice to ensure accurate property valuations, and the choice to hire an appraiser ultimately lies with the seller.

C) Advertising a new listing in a real estate magazine

Advertising a new listing in a real estate magazine is a common and acceptable practice within the real estate profession. This action helps promote the property and does not violate any real estate laws or regulations.

D) Failing to give the escrow funds promptly to the broker

Failing to give the escrow funds promptly to the broker is a violation of Pennsylvania real estate license law. Licensees are required to ensure that all funds are handled properly and in a timely manner to maintain trust and compliance with legal obligations.

Conclusion

The correct answer, D, highlights a critical responsibility of real estate licensees in Pennsylvania regarding escrow funds. The other options (A, B, and C) do not reflect violations of the law, demonstrating that they are acceptable practices within the industry. Therefore, the failure to manage escrow funds appropriately stands out as a clear breach of legal requirements.