Brokerage Management: Offices, Inspections and Escrow
Area VI is five items and exists only on the broker examination. Its first subtopic, office requirements and inspections, is marked "Broker only" in the outline; its second is funds and accounts.
Office requirements
Section 601(a) requires a broker holding a standard license to maintain a fixed office in Pennsylvania and a sign outside showing the proper licensed brokerage name; a move requires application to the Commission before the move or within ten days after. Section 35.242 adds that the office be devoted to real estate business, be arranged so business can be conducted in privacy, and, where it sits in a private residence, have an entrance separate from the residence's. Section 601(b) and section 35.243 require a branch office license for each additional office, obtained before the office opens, and section 35.244 puts every office under the direction and supervision of a broker or associate broker, who may supervise more than one.
Inspections
Section 35.246 allows routine inspections no more than four times a year during regular business hours, plus special inspections on a complaint, on reasonable belief of a violation, or as a follow-up to a non-compliant inspection. Inspectors identify themselves and the limited scope before starting, then may examine transaction and entity records, inspect all areas, interview licensed and unlicensed employees, and obtain the broker's written authorization for the bank to release escrow records. Section 35.286 requires the broker to produce transaction records on written request or during such an inspection.
Escrow and other accounts
Section 608.5 governs deposits. The broker deposits money belonging to others into a separate custodial or trust account by the end of the business day following receipt, designating the broker as trustee with withdrawal available without previous notice; the one exception lets the broker hold an uncashed check pending acceptance of the offer if both sides consent in writing or electronically. Commingling and misappropriation are barred, though the broker may put in enough of its own money to cover bank service charges. Rents received for property management need not be escrowed but must go into a separate rental management account. Where the parties dispute entitlement, section 35.327 keeps the money in escrow and, if resolution looks remote, lets the broker petition the county court to interplead the claimants after 30 days' notice.
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State-specific details
State exam facts
- State regulator
- Pennsylvania State Real Estate Commission (BPOA)
- Exam vendor
- Pearson VUE
- Prelicensing education
- 240 hours (16 credits) of broker-level real estate education, including 2 credits in a Commission-approved office management course and 2 in a Commission-approved law course
- Passing score
- Scaled score of 75 on each portion
- Scored questions
- 120
- Time limit
- 210 minutes
Who regulates real estate brokers in Pennsylvania?
The Pennsylvania State Real Estate Commission, part of the Bureau of Professional and Occupational Affairs in the Department of State, licenses brokers and salespersons under the Real Estate Licensing and Registration Act. The Commission has contracted with Pearson VUE to administer its examinations.
What experience do I need before the Pennsylvania broker exam?
RELRA section 511 requires three years as a licensed salesperson, or educational and experience qualifications the Commission deems equivalent, plus 240 hours of approved broker-level education. Commonwealth Court held in Bhala v. State Real Estate Commission that simply holding a salesperson's license for three years is not by itself enough; 49 Pa. Code section 35.271 requires experience qualifications the Commission considers adequate for practice as a broker.
How is the Pennsylvania broker exam structured?
The broker exam has two separately timed portions: 80 scored national/general questions in 150 minutes and 40 scored Pennsylvania questions in 60 minutes, 120 scored questions over 210 minutes, plus 5 to 10 unidentified pretest questions on each portion. Pearson VUE's handbook lists a minimum passing score of 75 on each portion; scores are scaled to a 0-100 range and are, in the handbook's words, neither the number nor the percentage of questions answered correctly.
Sources: https://www.pa.gov/agencies/dos/programs/professional-licensing.html, https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/093900.pdf

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