Pennsylvania Real Estate Salesperson Exam — All Questions
3 questions
Pennsylvania imposes a realty transfer tax on most conveyances. The state-level rate is:
- a.0.5% of the sale price
- b.A flat $500 per transfer
- c.2% of the sale price
- d.1% of the value of the property transferred✓
Pennsylvania levies a state realty transfer tax of 1% on the value of real estate transferred. Local municipalities and school districts typically add their own transfer tax, commonly another 1%, for a combined rate that varies by location. The tax is usually split between buyer and seller by custom or agreement.
Pennsylvania created a cancellation right for a consumer in a wholesale transaction whose sales agreement carries the required statements. The consumer may cancel until:
- a.Midnight of the fifth day after signing it
- b.Midnight of the 30th day after signing, or conveyance✓
- c.Sixty days after signing, or the recording of the deed
- d.Any time before settlement, with no outside deadline
The right runs until midnight of the 30th day after the consumer signed, or until conveyance, whichever happens first, and it cannot be waived. An agreement that omits the required wholesale statements may be cancelled at any time before conveyance. The five-day right belongs to time-share and campground membership purchasers. Cite: RELRA § 610, 63 P.S. § 455.610, added July 8, 2024, P.L.545, No.52.
A Pennsylvania owner deeds her house to her brother for one dollar. The realty transfer tax due on that deed is:
- a.1% of the computed value of the property
- b.2% of the property's assessed value
- c.None; transfers between siblings are excluded✓
- d.1% of the one dollar actually paid for it
Pennsylvania excludes transfers between children of the same parent, along with transfers between spouses, between lineal ascendants and descendants, and to a parent's child's spouse. Absent an exclusion, a transfer for nominal consideration is taxed on computed value, the assessed value multiplied by the county's common level ratio factor. Cite: 61 Pa. Code § 91.193(b)(6)(i)(C); 61 Pa. Code § 91.131.