PA Real Estate Exam Flashcards

Q: How is the Pennsylvania real estate salesperson exam structured?

The PSI-administered exam has 120 questions: an 80-question national portion and a 40-question Pennsylvania state portion. Pennsylvania requires 75% on each section to pass—a higher threshold than many states. Candidates must first complete 75 hours of pre-license education (30-hour Fundamentals plus 45-hour Practices).

Q: What is RELRA?

The Real Estate Licensing and Registration Act (RELRA) is Pennsylvania's primary real estate law. It establishes the State Real Estate Commission, defines license categories, sets education and conduct standards, and authorizes discipline. RELRA and the Commission's regulations dominate the Pennsylvania state portion of the exam.

Q: When must the Pennsylvania Consumer Notice be given?

The Consumer Notice must be provided at the initial interview or first contact with a consumer, before any confidential information is disclosed. It explains the brokerage relationship options in Pennsylvania—seller agent, buyer agent, dual agent, designated agent, and transaction licensee—so the consumer understands how they may be represented.

Q: How does Pennsylvania's realty transfer tax work?

Pennsylvania's Realty Transfer Tax is generally 2% of the sale price (or assessed value if higher), customarily split equally with 1% paid by the buyer and 1% by the seller. Local jurisdictions set their own portion, so rates vary by municipality, and certain family or government transfers are excluded.

Q: What is the Pennsylvania Real Estate Recovery Fund?

The Recovery Fund reimburses consumers who win a court judgment against a licensee for fraud or misrepresentation but cannot collect it. Claims are limited to $20,000 per transaction (the per-licensee aggregate is capped as well). A licensee whose conduct triggers a payment has their license suspended until the fund is repaid with interest.

Question 1

Fee Simple Absolute

Accepted Answer

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.

Question 2

Joint Tenancy vs. Tenancy in Common

Accepted Answer

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.

Question 3

Tenancy by the Entirety (PA)

Accepted Answer

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.

Question 4

Appurtenant Easement

Accepted Answer

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.

Question 5

Encumbrance

Accepted Answer

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.

Question 6

Police Power vs. Eminent Domain

Accepted Answer

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.

Question 7

Listing Agreement Types

Accepted Answer

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. Net listings are disfavored.

Question 8

Fiduciary Duties

Accepted Answer

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

Question 9

Consumer Notice (PA)

Accepted Answer

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.

Question 10

Transaction Licensee (PA)

Accepted Answer

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.

Question 11

Dual Agency (PA)

Accepted Answer

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.

Question 12

Designated Agency (PA)

Accepted Answer

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.

Question 13

RELRA

Accepted Answer

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.

Question 14

State Real Estate Commission (SREC)

Accepted Answer

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.

Question 15

PA Pre-License Education

Accepted Answer

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.

Question 16

75% Passing Requirement (PA)

Accepted Answer

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.

Question 17

Broker Sponsorship (PA)

Accepted Answer

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.

Question 18

PA Continuing Education

Accepted Answer

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.

Question 19

Real Estate Recovery Fund (PA)

Accepted Answer

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.

Question 20

License Tiers (PA)

Accepted Answer

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.

Question 21

Statute of Frauds

Accepted Answer

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.

Question 22

Agreement of Sale (PA)

Accepted Answer

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.

Question 23

Earnest Money & Escrow (PA)

Accepted Answer

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.

Question 24

Contingency

Accepted Answer

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.

Question 25

Specific Performance

Accepted Answer

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.

Question 26

Liquidated Damages

Accepted Answer

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.

Question 27

PA Seller's Property Disclosure

Accepted Answer

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.

Question 28

Lead-Based Paint Disclosure

Accepted Answer

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.

Question 29

Stigmatized Property (PA)

Accepted Answer

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.

Question 30

Material Defect (PA)

Accepted Answer

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.

Question 31

PA Realty Transfer Tax

Accepted Answer

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.

Question 32

Transfer Tax Exclusions (PA)

Accepted Answer

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.

Question 33

Ad Valorem Property Tax

Accepted Answer

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.

Question 34

Proration at Closing

Accepted Answer

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.

Question 35

Recording (PA)

Accepted Answer

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.

Question 36

Mortgage Foreclosure (PA)

Accepted Answer

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.

Question 37

PA Human Relations Act

Accepted Answer

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.

Question 38

Federal Protected Classes

Accepted Answer

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.

Question 39

Steering

Accepted Answer

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.

Question 40

Blockbusting

Accepted Answer

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.

Question 41

Reasonable Accommodation vs. Modification

Accepted Answer

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.

Question 42

Promissory Note vs. Mortgage

Accepted Answer

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.

Question 43

Loan-to-Value Ratio (LTV)

Accepted Answer

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.

Question 44

Sales Comparison Approach

Accepted Answer

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.

Question 45

Cost Approach

Accepted Answer

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

Question 46

Conventional vs. FHA Loan

Accepted Answer

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.

Question 47

Title Insurance

Accepted Answer

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.

Question 48

Commingling

Accepted Answer

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.

Question 49

Procuring Cause

Accepted Answer

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.

Question 50

Antitrust: Price Fixing

Accepted Answer

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.

Free PA Real Estate Exam Flashcards

Filter by Topic

Jump to Card

About These PA Real Estate Flashcards

Topics Covered

Frequently Asked Questions

Pennsylvania Real Estate Salesperson

Explore More Real Estate Salesperson

Real Estate Salesperson

Texas Real Estate Salesperson

Florida Real Estate Salesperson

Tennessee Real Estate Salesperson

New York Real Estate Salesperson

California Real Estate Salesperson

More From This Family