Free PA Real Estate Exam Flashcards

The highest and most complete ownership interest—indefinite duration with full rights to use, sell, lease, and devise. All lesser estates are defined by how they limit this complete ownership.

Joint tenancy includes the right of survivorship—a deceased owner's interest passes to surviving joint tenants. Tenancy in common has no survivorship; shares can be unequal and pass to heirs.

Co-ownership reserved for married couples in Pennsylvania, with survivorship. The property is generally protected from a creditor of only one spouse, and neither spouse can sell their interest alone.

A right to use neighboring land that benefits the dominant estate and burdens the servient estate. It runs with the land and transfers with the property, unlike an easement in gross tied to a person or company.

A claim or restriction limiting title—liens, easements, deed restrictions, or encroachments. Encumbrances do not prevent a sale but affect marketability and must be resolved or disclosed.

Police power regulates use without compensation (zoning, building codes). Eminent domain is the government's power to take private property for public use, which requires just compensation under the Constitution.

Exclusive right-to-sell pays the broker regardless of who sells. Exclusive agency lets the owner sell commission-free. Open listing pays only the broker who finds the buyer. A net listing is conflict-prone because the seller does not share in the upside above the fixed net.

An agent owes the client loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care. Confidentiality continues after the agency relationship ends.

Pennsylvania's mandatory agency disclosure. It must be presented at the initial interview or first contact, before confidential information is shared, explaining the available brokerage relationship options.

A Pennsylvania role where the licensee provides communication and paperwork services without representing either party as an agent. The transaction licensee owes honesty and disclosure of known material defects but not fiduciary duties.

Representing both buyer and seller in one transaction. Allowed in Pennsylvania only with the informed written consent of both parties; the dual agent must remain impartial and protect each party's confidential information.

The broker designates separate salespersons within the firm to represent the buyer and the seller, giving each party individual representation while the firm handles both sides of the deal.

The Real Estate Licensing and Registration Act—Pennsylvania's primary statute. It creates the State Real Estate Commission, defines license types, and sets education, conduct, and discipline standards.

The Pennsylvania board within the Department of State that licenses real estate professionals, adopts regulations under RELRA, investigates complaints, and imposes discipline including suspension and revocation.

Pennsylvania requires 75 hours of pre-license education for salespersons: a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course, completed within the allowed timeframe.

Pennsylvania requires a 75% score on each of the national and state portions—a stricter standard than the common 70%. Both sections must be passed; failing one means retaking that section.

A Pennsylvania salesperson license stays inactive until the licensee is sponsored by a licensed Pennsylvania broker. All compensation flows through the employing broker, never directly from a client.

Pennsylvania salespersons must complete 14 hours of approved CE each 2-year renewal cycle, including required modules on current law, fair housing, and agency. CE must be completed before renewal.

A fund reimbursing consumers who win a fraud or misrepresentation judgment against a licensee but cannot collect. Claims are capped (commonly $20,000 per transaction). The licensee's license is suspended until the fund is repaid.

Pennsylvania licenses progress from salesperson to associate broker to broker, each requiring additional education and experience. Only a broker may operate a brokerage and hold client funds.

Contracts for the sale of real estate must be in writing and signed to be enforceable. An oral agreement to convey land generally cannot be enforced in court.

Pennsylvania's standard purchase contract. It sets price, contingencies, deposit handling, and closing terms and becomes binding when signed by both parties—Pennsylvania has no statutory attorney review period like New Jersey.

The buyer's good-faith deposit, held in the broker's escrow account. Pennsylvania prohibits commingling with the broker's funds; disputed deposits are released only per the contract or both parties' written agreement.

A condition (mortgage, inspection, appraisal) that must be satisfied for the agreement to proceed. If a contingency fails within its deadline, the protected party may terminate and usually recover the deposit.

A court remedy forcing a defaulting seller to complete the sale instead of paying damages, available because each parcel of land is treated as legally unique.

A contract clause fixing in advance the amount (often the deposit) the seller retains if the buyer defaults, substituting for proof of actual loss and capping the seller's recovery.

Pennsylvania law requires residential sellers to complete a Seller's Property Disclosure Statement covering many categories of known conditions and material defects. Sellers must disclose known issues, not merely defects a buyer could see.

Federal law requires sellers of pre-1978 housing to disclose known lead hazards, give the EPA pamphlet, and allow buyers a 10-day inspection period. Applies to Pennsylvania residential sales.

Pennsylvania does not require disclosure of psychological stigmas such as a death or felony on the property; these are not defined as material defects. A licensee still may not knowingly lie if directly asked.

A problem with the property or its systems that has a significant adverse effect on value or poses an unreasonable safety risk. Known material defects must be disclosed even though stigmas need not be.

Generally 2% of the sale price (or assessed value if higher), customarily split 1% buyer and 1% seller. Local jurisdictions set their share, so combined rates vary by municipality.

Certain transfers are exempt from Realty Transfer Tax, including conveyances between specified family members and transfers to or from government entities. Knowing common exclusions is tested on the state portion.

Tax based on assessed value, set by the county or local taxing authority and applied through a millage rate. Owners may appeal an assessment they believe overstates market value.

Allocating recurring costs (property taxes, HOA dues, prepaid items) between buyer and seller based on the closing date so each pays only for the portion of the period they own the property.

Deeds and mortgages are recorded in the office of the Recorder of Deeds in the county where the property is located. Recording provides constructive notice and establishes lien priority.

Pennsylvania uses judicial foreclosure—lenders must obtain a court judgment. Owner-occupants of residential property generally receive an Act 91 notice and a homeowner-emergency assistance opportunity before foreclosure proceeds.

Pennsylvania's fair housing law, enforced by the PA Human Relations Commission. It prohibits housing discrimination on the federal protected classes and adds protections such as age and use of a guide or support animal.

The federal Fair Housing Act prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability. Pennsylvania law adds further protected categories.

Guiding prospects toward or away from neighborhoods based on a protected class. Illegal even if intended to match perceived client preferences, because it limits housing choice along protected lines.

Inducing owners to sell by claiming protected-class neighbors will reduce values or change the area. A prohibited fair housing practice also known as panic peddling.

An accommodation changes rules or policies for a person with a disability (e.g., a designated parking spot). A modification is a physical change to the unit. Both must be allowed under fair housing law.

The promissory note is the borrower's personal promise to repay. The mortgage is the security instrument pledging the property and permitting foreclosure if the note is not paid.

Loan amount divided by the lesser of price or appraised value. Higher LTV means greater lender risk; conventional loans below 20% equity typically require private mortgage insurance.

Estimates value by adjusting recent comparable sales for differences from the subject property. It is the primary appraisal method for residential property because it reflects actual buyer behavior.

Value = land value + cost to rebuild improvements − depreciation. Most useful for new, special-purpose, or unique properties where comparable sales are scarce.

A conventional loan is not government-insured and usually requires stronger credit and a larger down payment. An FHA loan is government-insured, allowing lower down payments with mortgage insurance premiums.

Protects against losses from title defects, liens, or encumbrances existing before the policy date. The owner's policy protects the buyer; the lender's policy protects the mortgagee.

Mixing client escrow funds with the broker's personal or business money. A prohibited practice under RELRA and grounds for discipline even without a client loss.

The broker whose continuous efforts produced the ready, willing, and able buyer who closes. Procuring cause usually decides which broker earns the commission in a dispute.

Competing brokerages agreeing to set commission rates or allocate markets violates antitrust law. Each broker must set and negotiate fees independently with clients, never in coordination with rivals.