Real Estate RePA_Sales_S Practice Test Questions Answers

Under49 Pa. Code § 35.283 (Compensation and Commission),a salesperson can only receive payment through their employing broker. This means thatif the flat fee is paid to the broker (not directly to the salesperson), then the arrangement is legal.

Commission does not have to be paid at closing; payment terms can be negotiated, including split payments.

For Sale by Owner (FSBO) properties are not required to be listed with a brokerage, so compensation can still be earned if a licensee brings a buyer.

Why the other answers are incorrect:

Option B (Commission Rate Limitations):There areno “prevailing” commission ratessince commissions are always negotiable.

Option C (Compensation Must Be at Closing):Commission can bestructured differently(e.g., partial upfront payment).

Option D (Only Listed Properties Qualify for Commission):Agents can earn commission on FSBOsas long as the broker is involved.

Under49 Pa. Code § 35.283 (Disclosure of Interest),a real estate licensee must disclose in writing if they have a direct or indirect ownership interest in a property they are selling or purchasing.

This disclosure ensures transparency and prevents conflicts of interest.

Failure to disclose ownership interest could be considered fraudulent and result in disciplinary action by the Pennsylvania Real Estate Commission.

Why the other answers are incorrect:

Option A (Commission Notification Required):TheCommission does not need to be notifiedunless a violation occurs.

Option B (Listing Agreement Disclosure):Disclosure isnot required in the listing agreementbut must be made to all parties.

Option D (Percentage of Ownership on Contract):The specificpercentage of ownership is not required to be on the contract; general disclosure is sufficient.

In Pennsylvania,any person engaging in brokerage activities (such as negotiating sales or leases for compensation) must hold a real estate licenseunless specifically exempted.

49 Pa. Code § 35.201 (Definitions) & 63 P.S. § 455.304 (Exemptions)allow attorneys to practice real estate without a license ONLY IF the services are incidental to their legal practice.

If an attorney advertises as a real estate broker or regularly engages in real estate transactions beyond legal services, they must obtain a real estate license.

Why the other answers are incorrect:

Option B (Home Builder Selling New Houses):Buildersare exemptwhen selling their ownnewly constructed homes.

Option C (Banks Selling Foreclosures):Banks areexemptunder63 P.S. § 455.304 (a)(5)since they arenot in the business of selling real estate for profit.

Option D (Selling Five Unimproved Lots):Individuals selling their own propertydo not need a license, even for multiple lots.

Under49 Pa. Code § 35.305 (Business Name on Advertisements),advertisements must include the broker’s name but are not required to include the salesperson’s name.

While a salesperson's name may appear in an ad, it is not a required element under Pennsylvania law.

However, failing to disclose key information in an ad, such as the broker’s name, could result in disciplinary action.

Why the other answers are incorrect:

Option A (Misrepresentation):Misrepresentation is a serious offense and can lead to suspension or revocation.

Option B (Failing to Provide Listing Contract):Acopy of the listing contract must be furnished to the seller at the time of signing.

Option D (Failing to Provide Information to the Commission):Failure to respond to an investigation can result in fines, suspension, or revocation.

Under49 Pa. Code § 35.285 (Disclosure of Real Estate Affiliations),a licensee selling their own property MUST disclose that they are a real estate licensee in all advertisements and communications.

The disclosure must be made in a clear and conspicuous mannerto inform potential buyers that the seller has professional real estate expertise.

This rule prevents deception and ensures fair dealings in real estate transactions.

Why the other answers are incorrect:

Option A (List Property with Firm):Licenseesare NOT required to list their own propertywith their firm.

Option C (Offer Commission to Brokers):There isno requirement to offer compensationto other brokers.

Option D (Have an Active License):A licensee can still sell their own property even if their license is inactive,but they must disclose their license status.