Free Pennsylvania Agency Practice Test — LicenseIQ

Question 1

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 2

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 3

Under the Seller Disclosure Law, a listing agent is liable for a seller's nondisclosure only if the agent:

Accepted Answer

68 Pa.C.S. §7310 limits agent liability to cases where the agent had actual knowledge of a material defect not disclosed to the buyer or of a misrepresentation about one.

Question 4

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 5

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 6

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 7

Which standard governs a dual agent's conduct toward the two parties?

Accepted Answer

Section 606.4 requires a dual agent to take no action that is adverse or detrimental to either party's interest in the transaction.

Question 8

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 9

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 10

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 11

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 12

When must a designated agent tell the principal that the other party is represented by a licensee of the same broker?

Accepted Answer

Section 606.5 requires the designated agent to disclose, before writing or presenting an offer, that the other party is also represented by a licensee of the same broker and that the broker is a dual agent.

Question 13

To act as a dual agent in Pennsylvania, a licensee must have:

Accepted Answer

RELRA §606.4 and §604(a)(7) require written consent of all parties. The consent must also state how the licensee will be paid.

Question 14

A buyer's agent is paid by the listing broker out of the seller's commission. Whom does the buyer's agent represent?

Accepted Answer

The Consumer Notice states that a buyer's agent works exclusively for the buyer even if the seller pays the fee, and RELRA §606.1(d) confirms that payment alone does not create agency.

Question 15

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 16

Under the Seller Disclosure Law, the seller's agent must:

Accepted Answer

68 Pa.C.S. §7313(c) requires an agent representing the seller to advise the seller of the seller's responsibilities and to provide a copy of the form.

Question 17

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 18

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 19

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 20

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 21

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 22

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 23

Under RELRA, a seller's agent's duty to make a continuous, good-faith effort to find a buyer is suspended:

Accepted Answer

RELRA §606.2 requires continuous marketing, except that the seller's broker need not seek additional offers while the property is under an existing agreement of sale.

Question 24

A seller instructs the listing agent not to show the home to families with children. The agent should:

Accepted Answer

Familial status is protected under both the PHRA and federal law. A principal's instruction never permits discrimination, and accepting a listing on discriminatory terms violates RELRA §604(a)(22).

Question 25

Agent A (listing) and Agent B (buyer) work for the same broker, who has designated each to represent their principal. In this transaction, who is the dual agent?

Accepted Answer

In designated agency, the broker supervising both designated agents automatically becomes a dual agent and must protect each side's confidential information. Each designated agent stays loyal to their own principal.

Pennsylvania real estate agency practice test

1. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

2. The client a broker represents is the:

3. Under the Seller Disclosure Law, a listing agent is liable for a seller's nondisclosure only if the agent:

4. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

5. An agency relationship can be terminated by all of the following EXCEPT:

6. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

7. Which standard governs a dual agent's conduct toward the two parties?

8. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

9. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

10. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

11. Which fiduciary duty continues even after the agency relationship has ended?

12. When must a designated agent tell the principal that the other party is represented by a licensee of the same broker?

13. To act as a dual agent in Pennsylvania, a licensee must have:

14. A buyer's agent is paid by the listing broker out of the seller's commission. Whom does the buyer's agent represent?

15. Which statement about dual agency is correct?

16. Under the Seller Disclosure Law, the seller's agent must:

17. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

18. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

19. The best way to create an agency relationship is a(n):

20. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

21. A material defect that a seller/agent must disclose is one that:

22. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

23. Under RELRA, a seller's agent's duty to make a continuous, good-faith effort to find a buyer is suspended:

24. A seller instructs the listing agent not to show the home to families with children. The agent should:

25. Agent A (listing) and Agent B (buyer) work for the same broker, who has designated each to represent their principal. In this transaction, who is the dual agent?

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