Chapter 1 of 1710% of exam

The State Real Estate Commission and the Recovery Fund

Area I of the Pennsylvania broker outline is four items covering the Commission's duties and powers, the route a complaint takes through investigation, hearing and appeal, and the Real Estate Recovery Fund.

Duties and powers

Section 202 of the Real Estate Licensing and Registration Act creates the Commission inside the Bureau of Professional and Occupational Affairs of the Department of State. It has eleven seats: the Commissioner of Professional and Occupational Affairs, the Director of the Bureau of Consumer Protection or a designee, three members representing the public at large, five licensed Pennsylvania brokers each with at least ten years in the real estate business here, and one member licensed as a broker or cemetery broker for at least five years who has sold cemetery lots for at least ten. Section 202(a) provides that each of said members shall be appointed by the Governor, and section 202(b) sets a five-year term. Section 404 gives the Commission power to promulgate regulations, which is where 49 Pa. Code Chapter 35 comes from, and section 403 empowers it to prescribe the subjects tested while the Department arranges the professional testing service that writes and administers the examinations.

Complaints, investigations, hearings and appeal

Section 604(a) lets the Commission act on its own motion and requires it to act promptly on a verified written complaint, ascertaining the facts and, if warranted, holding a hearing. Adjudications follow Title 2 of the Pennsylvania Consolidated Statutes and Title 1, Part 2 of the Pennsylvania Code under section 701(c). Section 702 is the provision brokers should know best: an employee's violation is not grounds to suspend or revoke the employing broker's license unless the hearing shows the broker had actual knowledge of it, though a course of dealing by the employee is prima facie evidence of that knowledge.

The Real Estate Recovery Fund

Chapter 8 establishes the fund. A consumer who holds a final judgment against a licensee for fraud, misrepresentation or deceit in a licensed transaction, who has exhausted collection remedies, and who applies within one year of the end of the proceedings may petition the court for payment out of the fund. Section 803(d) caps liability at $20,000 for any one claim and $100,000 per licensee, prorating among claimants above that. Section 803(f) automatically suspends the licensee's license on payment, with reinstatement only after full repayment plus 10% annual interest. Section 801(b) puts campground membership sales and the preparation of broker price opinions outside the fund altogether.

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State-specific details

State exam facts

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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