1. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?
Answer & explanation
Answer: D. Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.
2. When must a Pennsylvania licensee provide the Consumer Notice?
Answer & explanation
Answer: B. RELRA §608 requires the disclosure at the initial interview, defined as the first contact between a licensee and a consumer of real estate services. "Before the agreement of sale" is the deadline for the seller's property disclosure statement, a different document.
3. PHRC regulations effective in 2023 interpret 'sex' under the PHRA to include:
Answer & explanation
Answer: C. PHRC's 2023 regulations define sex to include sex assigned at birth, sexual orientation, and gender identity or expression. PHRC treats refusing to rent based on these as sex discrimination. Source of income is protected only under certain local ordinances.
4. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:
Answer & explanation
Answer: A. The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.
5. A salesperson's license has been inactive for six years. To return to practice, she must:
Answer & explanation
Answer: D. A licensee can reactivate within five years by documenting 14 CE hours and paying the fee. After five years of inactivity, RELRA §501(b) requires passing the exam again. The 14-hour option is tempting but applies only within five years.
6. A licensee places a 'For Sale' sign on a vacant house hoping to win the listing, without the owner's permission. This:
Answer & explanation
Answer: B. RELRA §604(a)(8) prohibits placing a for-sale or for-rent sign on, or advertising, any property without the owner's written consent.
7. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?
Answer & explanation
Answer: B. Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.
8. How many hours of continuing education must a Pennsylvania salesperson complete in each two-year license period to renew?
Answer & explanation
Answer: D. RELRA §404.1 requires 14 hours of Commission-approved CE during each biennial period.
9. The Pennsylvania Real Estate Seller Disclosure Law applies to transfers of residential property containing:
Answer & explanation
Answer: D. 68 Pa.C.S. §7103(a) applies the law to real property consisting of not less than one nor more than four residential dwelling units.
10. When must a designated agent tell the principal that the other party is represented by a licensee of the same broker?
Answer & explanation
Answer: B. 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.
11. A home sells for $400,000 with a 5% total commission. What is the total commission?
Answer & explanation
Answer: B. $400,000 x 0.05 = $20,000.
12. A Pennsylvania salesperson may lawfully accept a commission for a sale from:
Answer & explanation
Answer: A. RELRA §604(a)(12) prohibits a salesperson or associate broker from accepting compensation from anyone other than the employing broker. All pay flows through the broker.
13. Under an open listing, the seller owes a commission to:
Answer & explanation
Answer: C. Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.
14. A licensee working under an exclusive leasing agreement with an owner deals with a prospective tenant for rental only. Instead of the full Consumer Notice, the licensee provides:
Answer & explanation
Answer: C. Section 608(b) replaces the general disclosure with a short written capacity statement, given at the initial interview or when a rental application is taken, and kept 6 months.
15. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?
Answer & explanation
Answer: B. Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.
16. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:
Answer & explanation
Answer: B. Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.
17. Which person may negotiate the sale of another person's real estate in Pennsylvania WITHOUT a real estate license?
Answer & explanation
Answer: C. RELRA §304 excludes fiduciaries such as executors, administrators, trustees, and guardians acting under a court order, will, or trust. A friend paid a finder's fee is performing licensed activity for compensation without a license.
18. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. 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.)
19. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?
Answer & explanation
Answer: C. Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.
20. Which action may a life tenant take WITHOUT the remainderman's consent?
Answer & explanation
Answer: D. A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.
21. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:
Answer & explanation
Answer: D. The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.
22. Which statement about FHA-insured loans is correct?
Answer & explanation
Answer: C. FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.
23. A licensee's advertising must generally:
Answer & explanation
Answer: C. Ads must identify the licensed broker/brokerage; salespersons cannot advertise under only their own name.
24. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:
Answer & explanation
Answer: A. The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.
25. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:
Answer & explanation
Answer: A. Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.
Sources
Source verification pending. Confirm current requirements with your state regulator.