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Pennsylvania Real Estate Commission PA Salesperson State Exam Sample Questions (Q35-Q40):

NEW QUESTION # 35
Why is the following advertisement placed by a salesperson employed by ABC Realty, in violation of Pennsylvania Rules?
"Harrisburg $200,000 SUPER BUY Cozy 3br, 2 1/2 bath Cottage, near bus. For info call 555-9234 (home) or
675-6330 (office). Ask for JOHN DOE."

A. No address is given.
B. The MLS number is not included in the ad.
C. The salesperson's name appears in the ad.
D. The broker's name does not appear in the ad.

Answer: D

Explanation:
According to49 Pa. Code § 35.305(Business Name on Advertisements), alladvertisements placed by a salesperson must include the broker's name.
* Thebroker's name is missing, which violates Pennsylvania advertising requirements (Option C - Correct).
* The property address does not need to be in the ad (Option A - Incorrect).
* Salesperson names are allowed but must be accompanied by the broker's name (Option B - Incorrect).
* MLS numbers are not a requirement in all advertisements (Option D - Incorrect).

NEW QUESTION # 36
Which of the following conditions MUST be met before a licensee participates in the sale of real property in which the licensee has an ownership interest?

A. The licensee must provide written disclosure of the ownership interest to all parties.
B. The listing agreement must identify the licensee's name and status as a licensee.
C. The percentage of the licensee's ownership interest must be stated on the sales contract.
D. The Pennsylvania Real Estate Commission must be notified of the transaction.

Answer: A

Explanation:
Under49 Pa. Code § 35.283 (Disclosure of Interest),a real estate licensee must disclose in writing if they have a direct or indirect ownership interest in a property they are selling or purchasing.
* This disclosure ensures transparency and prevents conflicts of interest.
* Failure to disclose ownership interest could be considered fraudulent and result in disciplinary action by the Pennsylvania Real Estate Commission.
Why the other answers are incorrect:
* Option A (Commission Notification Required):TheCommission does not need to be notifiedunless a violation occurs.
* Option B (Listing Agreement Disclosure):Disclosure isnot required in the listing agreementbut must be made to all parties.
* Option D (Percentage of Ownership on Contract):The specificpercentage of ownership is not required to be on the contract; general disclosure is sufficient.

NEW QUESTION # 37
If clients have questions regarding the sale of their home beyond the licensee's expertise, what MUST the salesperson do?

A. Seek legal representation for the clients.
B. Ask their associate broker and advise the clients of the answer.
C. Advise the clients to seek another salesperson to represent them in the transaction.
D. Advise the clients to seek expert advice.

Answer: D

Explanation:
Under49 Pa. Code § 35.292 (Duties of Licensees Generally), a real estate licensee must not provide professional advice in areas beyond their expertise. If clients need legal, tax, or structural advice, they should be referred to an appropriate expert.
* A real estate licensee should not attempt to answer questions related to law, taxes, or home inspections beyond their knowledge.
* Directing clients to consult an expert ensures that they receive accurate and legally sound advice.
Why the other answers are incorrect:
* Option A (Seek Legal Representation for Clients):A salesperson cannot act as a lawyer or obtain legal representation for clients.
* Option C (Ask Associate Broker and Advise Clients):If the matter is outside of real estate expertise, it must be referred to an expert, not just another broker.
* Option D (Advise Clients to Seek Another Salesperson):This does not solve the issue; clients need advice from the correct professional, not another salesperson.

NEW QUESTION # 38
An exclusive listing MUST be in writing and it MUST:

A. be signed by the cooperating broker
B. contain a provision allowing the owner to cancel all exclusive features within 24 hours' notice
C. specify the duration of the listing
D. contain provisions regarding acceptable financing arrangements

Answer: C

Explanation:
Allexclusive listing agreements in Pennsylvania MUST specify their duration in writing.
* 49 Pa. Code § 35.332 (Exclusive Listing Agreements)states thatall exclusive listings must have a definite start and end date.
* Listings without an expiration date are considered illegaland unenforceable in Pennsylvania.
Why the other answers are incorrect:
* Option A (Cancellation in 24 Hours):There is no legal requirement for a 24-hour cancellation clause.
* Option B (Financing Arrangements):Financing provisionsare not a required part of a listing agreement.
* Option C (Signed by Cooperating Broker):A cooperating broker's signatureis not required. Only the listing broker and seller need to sign the agreement.

NEW QUESTION # 39
A salesperson who operates as an independent contractor for a broker is seldom in the office. Earnest money deposits received by this salesperson:

A. Should be transmitted promptly after receipt to the broker.
B. Should be returned to the buyer to transmit to the broker.
C. May be kept temporarily in an escrow account opened by the salesperson.
D. May be held by the salesperson for 3 business days.

Answer: A

Explanation:
Under49 Pa. Code § 35.324 (Handling of Deposits and Escrow Money), all earnest money deposits must be promptly transmitted to the employing broker for deposit into an escrow account.
* A salesperson cannot hold earnest money or maintain an escrow account on their own.
* Brokers are responsible for ensuring that all escrow funds are properly handled and protected from commingling.
Why the other answers are incorrect:
* Option A (Salesperson Holding Escrow Funds):Salespersons are prohibited from maintaining independent escrow accounts.
* Option C (Holding Funds for 3 Days):Earnest money must be turned over to the broker as soon as possible; salespersons cannot hold it for any period.
* Option D (Returning to Buyer for Transmission):Earnest money must go directly to the broker, not back to the buyer.

NEW QUESTION # 40
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