Pennsylvania Real Estate Salesperson Exam — All Questions

The Pennsylvania Real Estate Commission maintains a Real Estate Recovery Fund. Its primary purpose is to:

• a.Reimburse consumers holding an unpaid judgment✓
• b.Pay commissions brokers fail to collect from clients
• c.Cover the Commission's own administrative expenses
• d.Fund continuing education courses for licensees

The Real Estate Recovery Fund compensates members of the public who win a court judgment against a licensee for fraud, misrepresentation, or similar wrongdoing but cannot collect it. Payment from the fund results in automatic suspension of the offending licensee until the fund is repaid with interest. It protects consumers, not licensees' income.

Under which regulation does the Pennsylvania Commission set the continuing education requirement for a renewal period?

• a.49 Pa. Code §35.201, on licence applications
• b.49 Pa. Code §35.336, on broker escrow accounts
• c.49 Pa. Code §35.201a, on the Recovery Fund
• d.49 Pa. Code §35.384(b), on continuing education✓

The Commission votes under 49 Pa. Code §35.384(b) to impose the continuing education requirement for each upcoming renewal period, which is why the mandatory topic can change from cycle to cycle. Cite: 49 Pa. Code §35.384(b).

What are the payment limits on Pennsylvania's Real Estate Recovery Fund?

• a.$50,000 for one claim and $250,000 per licensee
• b.$10,000 for one claim and $50,000 per licensee
• c.$20,000 for one claim and $100,000 per licensee✓
• d.$25,000 for one claim, with no per-licensee ceiling

The fund's liability may not exceed $20,000 for any one claim and may not exceed $100,000 per licensee. Where valid claims against a single licensee exceed $100,000, that sum is distributed among the claimants in proportion to their claims. Cite: RELRA § 803(d), 63 P.S. § 455.803(d).

Pennsylvania's Recovery Fund pays a claim against a licensee. The licence is automatically suspended, and reinstatement requires repayment in full plus interest at:

• a.6% a year
• b.10% a year✓
• c.12% a year
• d.4% a year

Reinstatement after a payment from the fund requires the licensee to repay the amount paid plus interest at 10% a year. The 6% rate in the same section is a different thing: it is what an unpaid claimant accrues while waiting for the fund to be replenished. Cite: RELRA § 803(f)(2), 63 P.S. § 455.803(f)(2).

Pennsylvania's Real Estate Recovery Fund does not reach a claim arising from:

• a.The sale of a campground membership✓
• b.A broker's fraud in a residential sale
• c.A cemetery salesperson's misrepresentation
• d.A property manager's deceit about a lease

The fund expressly does not apply to the sale or offer of a campground membership, to a campground membership salesperson, or to the preparation or issuance of a broker price opinion. Other licensed activity remains covered once the claimant has an uncollectable final judgment for fraud, misrepresentation or deceit. Cite: RELRA § 801(b), 63 P.S. § 455.801(b), as amended June 29, 2018, P.L.500, No.75.

A Pennsylvania salesperson violates RELRA. The employing broker's own licence may be suspended or revoked:

• a.Automatically, since the broker holds the licence
• b.Only where the broker profited from the violation
• c.Only after a second violation by the same salesperson
• d.Only where the broker had actual knowledge of it✓

A salesperson's or associate broker's violation is not grounds to discipline the employer unless the hearing shows the employer had actual knowledge of it. A course of dealing shown to have been followed by the employee is prima facie evidence of that knowledge. Cite: RELRA § 702(a) and (c), 63 P.S. § 455.702(a) and (c).