Pennsylvania Real Estate Commission PA Salesperson State Exam RePA_Sales_S Exam Dumps: Updated Questions & Answers (May 2025)

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.

Under49 Pa. Code § 35.305 (Business Name on Advertisements),any advertisement placed by a real estate salesperson must include the name and phone number of their employing broker.

This ensures that the public knows which brokerage is responsible for the property listing and avoids misleading or unverified advertisements.

A salesperson cannot advertise properties without clearly identifying their broker to ensure compliance with advertising regulations.

Why the other answers are incorrect:

Option A (Municipality):While useful,this is not required in every ad.

Option B (Legal Description):A legal property descriptionis not requiredfor advertisements.

Option D (Name of the Principal):The seller's name does not need to be included in advertisements.

Alicensee must disclose all material defectsrelated to the property,including known issues like a contaminated water system.

Under 68 P.S. §§ 7303-7304 (Real Estate Seller Disclosure Law), the seller and broker must disclose all material defects affecting the property’s value or safety.

A contaminated water system is considered a health and safety issue and must be disclosed to the buyer.

Why the other answers are incorrect:

Option A (Assumable Mortgage):This is afinancial issue, not a material defect.

Option B (Seller’s New Job):The seller’s personal situationdoes not affect the property’s condition.

Option C (Divorce):Divorce is private informationand does not need to be disclosed.

UnderThe Federal Fair Housing Act (42 U.S.C. § 3604) and the Pennsylvania Human Relations Act (PHRA), it is illegal to discriminate against renters or buyers based onfamily status, which includes children. However,age-restricted housing is allowed under certain conditions.

Housing communities designated as "55 and older" or "62 and older" are legally permitted under the Housing for Older Persons Act (HOPA), provided they meet federal guidelines.

Option C (Creek Village - an Age-Restricted Community) is lawful because it indicates compliance with HOPA, meaning at least 80% of residents are over 55.

Why the other answers are incorrect:

Option A (Children 12 and Older Only):Discriminating against families with young children violates theFair Housing Act (FHA).

Option B (Adults Only Building):Landlords cannot prohibit families with children from renting.

Option D (All Couples Apartment Building):This discriminates againstsingle renters and violates fair housing laws.

Both thePennsylvania Real Estate Commission (PREC)and thePennsylvania Human Relations Commission (PHRC)haveauthority to investigate illegal discriminationin real estate transactions.

The Pennsylvania Human Relations Commission (PHRC)is responsible for enforcingthe Pennsylvania Human Relations Act (PHRA), which prohibits discrimination in housing based onrace, color, religion, ancestry, age, sex, national origin, disability, and familial status.

The Pennsylvania Real Estate Commission (PREC)investigates complaints againstlicensed real estate professionalswho violate fair housing laws, including violations of theReal Estate Licensing and Registration Act (RELRA).

Why the other answers are incorrect:

Option A (Pennsylvania State Legislature and PREC):The Legislaturemakes lawsbutdoes not enforcethem or conduct investigations.

Option B (PREC and Better Business Bureau):TheBetter Business Bureau (BBB) is a private organizationand doesnot have legal enforcement authority.

Option C (PHRC and Legislature):The Legislature doesnot investigate complaints, but the PHRC does.

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.

According to49 Pa. Code § 35.305(Business Name on Advertisements), alladvertisements placed by a salesperson must include the broker’s name.

Thebroker's name is missing, which violates Pennsylvania advertising requirements (Option C - Correct).

The property address does not need to be in the ad (Option A - Incorrect).

Salesperson names are allowed but must be accompanied by the broker's name (Option B - Incorrect).

MLS numbers are not a requirement in all advertisements (Option D - Incorrect).

Areal estate licensee has a fiduciary duty to provide honest, professional advice to their clients, including pricing strategies based oncomparative market analysis (CMA).

Under 49 Pa. Code § 35.292 (Duties of Licensees Generally), a licensee must act in the best interest of the client, which includes providing realistic pricing guidance.

If a seller insists on listing at an inflated price, the agent should educate them on the risks, such as longer market time and reduced buyer interest.

While the agent cannot force a seller to list at a lower price, they must ensure that the client makes an informed decision.

Why the other answers are incorrect:

Option A (Require an Appraisal):CMAs are typically sufficient for pricing; an appraisal is only required in specific cases (e.g., lender requirements).

Option B (Refuse the Listing):Overpricing is not illegal, so there is no licensing violation in accepting the listing.

Option D (Providing Investment Advice):Real estate licensees are not financial advisorsand should not offer investment strategies.

Under49 Pa. Code § 35.284 (Disclosures of Business Relationships),the Consumer Notice defines five types of permitted relationships between real estate licensees and consumers:

Buyer’s Agent– Represents the buyer and has a fiduciary duty to them.

Seller’s Agent (Listing Agent)– Represents the seller and has a fiduciary duty to them.

Designated Agent– A brokerage firm designates different agents to represent buyers and sellers in the same firm without creating dual agency.

Dual Agent– A licensee represents both the buyer and seller in the same transaction, with mutual consent.

Transaction Licensee– A real estate licensee who provides services but does not represent either party as an agent.

Why the other answers are incorrect:

Option A (Rental Agent):"Rental agent" is not a defined relationship in Pennsylvania law.

Option B (Buyer & Seller Sub-Agent):Sub-agency is no longer common and is not a required disclosure.

Option D (Designated Dual Agent):Dual agency and designated agency are separate concepts.

Under49 Pa. Code § 35.324 (Handling of Deposits and Escrow Money), all earnest money deposits must be promptly transmitted to the employing broker for deposit into an escrow account.

A salesperson cannot hold earnest money or maintain an escrow account on their own.

Brokers are responsible for ensuring that all escrow funds are properly handled and protected from commingling.

Why the other answers are incorrect:

Option A (Salesperson Holding Escrow Funds):Salespersons are prohibited from maintaining independent escrow accounts.

Option C (Holding Funds for 3 Days):Earnest money must be turned over to the broker as soon as possible; salespersons cannot hold it for any period.

Option D (Returning to Buyer for Transmission):Earnest money must go directly to the broker, not back to the buyer.