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Unit 12 Quiz
Terms in this set (20)
At what time should the real estate licensee present the Consumer Notice to the prospective buyer?
A The answer is when they get together to discuss the buyer's needs and financial ability. Licensees should present the Consumer Notice to all consumers at the first contact where a substantive discussion about real estate occurs. In situations named, it would be when the licensee and the buyers sit down to seriously discuss their needs and financial abilities. (p. 199)
Real estate licensees may do ALL of the following EXCEPT
A The answer is provide inaccurate information. Licensees may not give assurances or advice in a real estate transaction that they know is incorrect, inaccurate, or improbable. (p. 200-201)
A broker must keep records of all real estate transactions
A The answer is for at least three years following the date of consummation or termination. Records of real estate transactions must be retained for three years following the consummation or termination of the transaction. (p. 197)
The Real Estate Commission may take disciplinary action against a licensee for all of the following EXCEPT
C The answer is violating blue-sky laws. Violation of the blue-sky laws would result in prosecution by federal and state authorities but not the State Real Estate Commission (SREC). The SREC has jurisdiction over violations of the RELRA and its Rules and Regulations, which includes Section 604 (22) of the rules for violations of the Pennsylvania Human Relations Act. (p. 182)
When advertising a property for sale, the broker must include which of the following in the advertisement?
B The answer is broker's business name. The Commission's Rules and Regulations require the broker's business name to be included exactly as it appears on the license. Blind ads are expressly prohibited. (p. 201)
Which of the following is NOT cause for disciplinary action against a licensee?
A The answer is payment of a commission by a licensed broker to another licensed broker. A broker is permitted to pay a commission to another licensed broker. Prohibitions in Section 604 of the Commission's Rules and Regulations include failing to provide a consumer with a copy of contracts at the time of execution, erecting For Sale or For Rent signs without written consent, and accepting listings with the understanding that illegal discrimination will be practiced. (p. 184)
A licensed salesperson may do which of the following?
D The answer is sell condominiums. A licensed salesperson is authorized to handle the sale of condominium interests on behalf of the employing broker. (p. 188)
What is the BEST definition of a broker of record?
D The answer is a broker who is the licensee responsible for the activities in a real estate corporation. The broker of record is the individual broker responsible for the licensed real estate activities of a partnership, association, or corporation licensed as broker. (p. 188)
Which of the following is TRUE regarding the laws for escrow accounts?
C The answer is the buyer and the seller can agree in writing that the escrow money will not be deposited until the agreement of sale is accepted. The Commission's Rules and Regulations provide that a broker negotiating an agreement of sale may, with the written consent of both the buyer and seller, refrain from depositing earnest money into the escrow account until the agreement is signed by both parties. (p. 197)
Which statement regarding the Pennsylvania Real Estate Commission is FALSE?
C The answer is members of the commission are selected by the state association of REALTORS®. Members of the Real Estate Commission are appointed by the governor (202(a)), not the state association of REALTORS®. The Commission prescribes subjects for testing, but the department contracts with a professional testing service to write and administer exams (403). The Commission also promulgates the Rules and Regulations (404) and reports to legislative committees (408). (p. 182-183)
An 18-year-old woman has just received her salesperson real estate license. For how long must she be engaged as a real estate licensee before she can apply for a broker's license?
D The answer is three years of active licensure. A broker candidate must be at least 21 years of age and have been engaged as a licensed real estate salesperson for at least three years or have experience and/or education that the Commission considers equivalent. (p. 187)
How does an agency relationship develop?
A The answer is only with express writing authority. An agency relationship should not be presumed and it will exist only as set forth in a written agreement between the broker and the consumer of real estate services acknowledged by the consumer. (p. 198-199)
Generally, the real estate licensee is obligated to
A The answer is disclose any conflicts of interest. A real estate licensee is obligated to disclose any conflicts of interest, such as a case in which the licensee is actually the seller or the buyers. (p. 201)
A salesperson receives an earnest money check from the buyer along with the buyer's offer. The buyer's check must be
D The answer is turned over to the broker. A salesperson or associate broker who receives deposits or any escrow monies must immediately turn the funds over to the employing broker. If the offer is not accepted, then the broker (salesperson or associate broker) can return the uncashed check to the buyer or the lessee. Otherwise, it must be deposited into the broker's trust account by the end of the next business day. (p. 197)
A broker manages a large apartment community. The termite company offers the broker $100 each time that the broker hires the termite company; the broker sees no reason to inform the owner. In this situation, this compensation is
A The answer is illegal. The Regulations specifically states that a broker who manages rental property may not accept commission, rebate or profit on expenditures made for the lessor without the owner's written consent. (p. 201)
What activity may an unlicensed assistant carry out?
A The answer is independently hold an open house for other licensees. Unlicensed people (including unlicensed personal assistants) may not perform activities for which a license is required, including telemarketing. They may, however, host open houses that are not conducted for the public (such as open house tours for licensees) and communicate, but not interpret or explain, property information to the licensees. (p. 188)
What, if anything, is required when a licensee sells a personal property?
C The answer is must inform all prospective purchasers that the seller holds a real estate license. Section 35.283 of the Regulations states that licensees must disclose any ownership interest they have in a property involved in a real estate transaction in which they are participating. The Regulations intend to ensure that licensees protect the interests of the people they are supposed to be serving and not use their position for personal profit. (p. 201)
A broker receives a check for earnest money from a buyer and deposits the money into an escrow or trust account. This protects the broker from a charge of
A The answer is commingling. The escrow account must be used exclusively for escrow purposes. The broker may not commingle these monies with the broker's business or personal funds; nor may the broker misappropriate money that should be held in escrow with the broker's business or personal funds. (p. 197)
What is the purpose of the Real Estate Recovery Fund?
A The answer is provide a means by which an injured party can collect a judgment award. The Real Estate Recovery Fund was established to provide a means for aggrieved persons to collect judgments awarded in civil court. These judgments must result from civil suits against real estate licensees for fraud, deceit, or misrepresentations in a real estate transaction. (p. 186)
Which of the following is acting as an agent for the buyer and for the seller in the same transaction?
A The answer is dual agent. A licensee who acts as an agent for the buyer and seller in the same transaction is a dual agent, not a single agent or designated single agent. (p. 199)
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