This chapter is the Pennsylvania-specific supplement to your national real-estate manuscript. The national chapters teach the concepts every U.S. licensee must know — agency, contracts, financing, valuation, federal fair housing, and the math. This chapter teaches how Pennsylvania does it differently, and it is the material that the state portion of your licensing exam tests.
Read this first — a note on the numbers. Real estate is a "your-money-or-your-life" (YMYL) subject: getting a fee, an education hour, or a tax rate wrong can cost a reader real money or a license. Every rule in this chapter is grounded in Pennsylvania statute or regulation and cited. But specific dollar amounts, education hours, renewal dates, and fees change — the legislature amends the Act, and the Commission sets fees and hours by regulation and periodically raises them. Wherever you see a specific number, treat it as illustrative of the rule, not as gospel, and verify the current figure with the Pennsylvania State Real Estate Commission before you rely on it. Numbers that are especially prone to change are flagged inline like this: (verify current with the PA State Real Estate Commission).
1. Who regulates real estate in Pennsylvania
Real estate licensing in Pennsylvania is administered by the State Real Estate Commission, one of the professional licensing boards housed within the Bureau of Professional and Occupational Affairs (BPOA), which is itself part of the Pennsylvania Department of State. This nested structure matters for the exam and in practice:
- The Department of State is the umbrella agency.
- The Bureau of Professional and Occupational Affairs (BPOA) provides the administrative machinery — application processing, records, prosecution support, and the online licensing system (PALS, the Pennsylvania Licensing System) — shared across dozens of licensing boards.
- The State Real Estate Commission is the board with subject-matter authority over real estate: it issues, renews, suspends, and revokes licenses; promulgates regulations; sets fees; and disciplines licensees.
The Commission's composition is set by statute. It includes the Commissioner of Professional and Occupational Affairs, the Director of the Bureau of Consumer Protection (or a designee) as a nonvoting member, licensed-broker members, and public members appointed by the Governor. The exact number of members and the term length are set by the Act (verify current composition with the PA State Real Estate Commission). The practical exam point: the Commission is a state board, not a private trade association, and its authority comes from statute.
The two sources of law you must know
- The Real Estate Licensing and Registration Act (RELRA) — the statute, enacted by the General Assembly, codified at 63 P.S. § 455.101 et seq. RELRA defines who must be licensed, the license categories, the Real Estate Recovery Fund, prohibited conduct, and the Commission's powers.
- The Commission's regulations — the rules that implement RELRA, codified at 49 Pa. Code Chapter 35. These fill in the operational detail: education hours, escrow-account mechanics, advertising rules, agency-disclosure timing, and record-keeping.
When statute and your memory of "how it works in general" conflict, RELRA and Chapter 35 win. The exam's state portion is essentially a test of these two documents.
2. License categories and what a salesperson may (and may not) do
RELRA creates several license classes. The ones you must distinguish:
- Salesperson — works for and under the supervision of an employing broker. A salesperson may show property, solicit listings, negotiate, and be paid — but only through the employing broker. A salesperson may not hold escrow money in their own name, may not be paid directly by a buyer or seller, and may not operate independently.
- Broker — may operate independently, employ salespersons and associate brokers, hold escrow, and own a real estate business.
- Associate broker — a person who holds a broker's license but works under another broker rather than operating their own office.
- Broker of record — every real estate company must designate a licensed broker who is legally responsible for the firm's escrow accounts, supervision, and compliance. A brokerage cannot operate without a broker of record. If the broker of record leaves, the company's ability to operate is affected until a replacement is designated.
- Other RELRA registrations you should recognize by name: cemetery broker/salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson, and rental listing referral agent. These are narrower licenses; know that they exist and that they are separate from the standard salesperson license.
Compensation rule (memorize): A salesperson or associate broker may accept compensation only from their employing/supervising broker — never directly from a client or another licensee. Paying an unlicensed person a fee for real-estate activity, or a licensee accepting a fee from anyone but their broker, is a classic RELRA violation.
3. Becoming a salesperson — requirements, education, and exam
To qualify for a Pennsylvania salesperson license, an applicant generally must:
- Be at least 18 years old.
- Have a high school diploma or equivalent (verify current education-attainment requirement with the PA State Real Estate Commission).
- Complete the required pre-licensure real estate education from an approved provider.
- Pass the licensing examination (national + Pennsylvania state portions).
- Be sponsored by an employing broker to activate the license.
- Be of good moral character — the Commission reviews criminal history; a criminal record is not an automatic bar, but it is evaluated.
Pre-licensure education
Pennsylvania requires a set number of hours of approved pre-licensure instruction, traditionally structured as two courses:
- Real Estate Fundamentals — commonly cited as 30 hours (verify current hours with the PA State Real Estate Commission).
- Real Estate Practice — commonly cited as 45 hours (verify current hours with the PA State Real Estate Commission).
That is a commonly cited total of 75 hours, but do not rely on the total or the split without verifying — the Commission sets these by regulation and can change them. Write the rule in your memory ("two approved pre-licensure courses, a Fundamentals course plus a Practice course, totaling a Commission-set number of hours") and confirm the number before you enroll or advise anyone.
The examination
Pennsylvania contracts with a third-party testing vendor (historically PSI) to deliver the computer-based exam. The exam has a national/general portion and a Pennsylvania state portion; you must pass both. Passing scores, the number of questions, and the time limit are set by the Commission and vendor (verify current exam format and passing score with the PA State Real Estate Commission / the testing vendor). Never quote a pass rate or passing score from memory — it changes.
Activation and sponsorship
Passing the exam does not by itself let you practice. A salesperson license must be held by and activated under an employing broker. Until a broker sponsors you and the license is issued and active, you may not perform licensed activity or accept compensation.
Reciprocity / out-of-state applicants
Pennsylvania has entered into reciprocal licensing arrangements with certain other states, and offers a standard/reciprocal pathway for out-of-state licensees. The specific reciprocal states and the exact requirements change (verify current reciprocity with the PA State Real Estate Commission).
4. Renewal and continuing education (CE)
Pennsylvania real estate licenses are issued on a biennial (two-year) cycle. The salesperson/broker license period has historically ended on May 31 of even-numbered years, with renewal required before that date (verify current renewal date and cycle with the PA State Real Estate Commission).
To renew an active license, a licensee must complete the required continuing education during the cycle:
- The commonly cited requirement is 14 hours of approved continuing education per two-year cycle (verify current CE hours with the PA State Real Estate Commission).
- The Commission designates mandatory/required CE topics each cycle (for example, required modules on specific law updates), with the remainder as electives. The required topics change every cycle — verify the current mandatory modules with the PA State Real Estate Commission.
- First renewal exception: Pennsylvania has historically waived the CE requirement for a licensee's first renewal (because new licensees just completed pre-licensure education). Confirm whether this exception still applies (verify with the PA State Real Estate Commission).
Consequences of not renewing / not completing CE: If you fail to complete CE, your license will not renew on time and you may not practice until the license is properly renewed/reactivated. Practicing on a lapsed or inactive license is a RELRA violation. Late renewal may carry additional fees, and an extended lapse can require additional steps to reactivate (verify current lapse/reactivation rules and fees with the PA State Real Estate Commission).
Inactive status: A licensee may place a license on inactive status. An inactive licensee may not perform licensed activity, but keeping the license on file avoids re-qualifying from scratch. Reactivation generally requires completing outstanding CE.
5. Pennsylvania agency law and the Consumer Notice
Pennsylvania significantly reformed brokerage-relationship law, and this is one of the most heavily tested state-specific areas. The core rules live in RELRA and in 49 Pa. Code Chapter 35.
The Consumer Notice — the signature Pennsylvania rule
Pennsylvania requires licensees to provide a Consumer Notice to a consumer at the initial interview — that is, at the first contact where a substantive discussion about real estate needs takes place. This is distinct from many states' "at the time of a listing or offer" rule. Key points:
- The Consumer Notice explains the types of business relationships available in Pennsylvania (seller's agent, buyer's agent, dual agent, designated agent, transaction licensee) and the licensee's duties.
- It must be provided at the initial interview — before you take confidential information or begin working the consumer's transaction. It is a disclosure, not a contract; the consumer's signature acknowledges receipt, not agreement to be represented.
- If the consumer refuses to sign, the licensee should note the refusal and the date and still proceed to provide the notice.
Exam trap: The Consumer Notice is required at the initial interview / first substantive contact, not at the signing of a listing or a sales contract. Confusing the timing is the most common Pennsylvania agency-law error.
Business relationships recognized in Pennsylvania
- Seller's agent — represents the seller (may be through a listing broker and the broker's licensees).
- Buyer's agent — represents the buyer.
- Dual agent — represents both buyer and seller in the same transaction. Dual agency is permitted in Pennsylvania only with the informed written consent of both parties. A dual agent owes limited duties to both and may not disclose one party's confidential information to the other, act to the detriment of either, or disclose price/terms without consent.
- Designated agency — the employing broker designates one licensee to represent the seller and a different licensee to represent the buyer within the same brokerage. This lets a single firm represent both sides while giving each party a fuller-loyalty agent. The broker who makes the designations typically becomes a dual agent.
- Transaction licensee — a licensee who provides real-estate services without being the agent or advocate of either party. A transaction licensee is not a fiduciary; they facilitate the transaction and owe duties of honesty, disclosure of material defects, and confidentiality of certain information, but not undivided loyalty. This is a distinctly Pennsylvania category — know that a licensee can lawfully assist a party without representing them.
Written agreements
Pennsylvania requires written agreements to establish agency in the sale context. Listing agreements and buyer-agency agreements must be in writing, must state the term/duration, the fee, and (for listings) must not contain an automatic-renewal clause and must state the broker's duties. A licensee must give the party a copy of any signed agreement. Verify the current required contents of these agreements in Chapter 35 (verify with the PA State Real Estate Commission).
6. Required disclosures in Pennsylvania
Seller's Property Disclosure Statement (the big one)
Pennsylvania's Real Estate Seller Disclosure Law (68 Pa. C.S. § 7301 et seq.) requires the seller of most residential real property (generally 1–4 dwelling units) to complete and deliver a Seller's Property Disclosure Statement to the buyer before the buyer signs an agreement of sale (i.e., before the parties are bound). Key points:
- The form covers the known material defects of the property — roof, basement/water infiltration, systems (plumbing, electrical, HVAC), structural items, hazardous substances, prior remediation, boundary/zoning issues, and more.
- The obligation is on the seller, but the licensee must advise the seller of the duty and must deliver the statement.
- Exemptions exist — for example, transfers by a fiduciary in administration of an estate, certain transfers between co-owners or family, transfers by court order, and some new construction. Know that exemptions exist; verify the current exempt-transaction list in the statute (verify with the PA State Real Estate Commission).
- A seller who fails to disclose a known material defect, or knowingly provides false information, can be liable to the buyer. Note the statute's remedy scheme is separate from RELRA discipline.
Lead-based paint (federal, applies in PA)
For housing built before 1978, the federal Residential Lead-Based Paint Hazard Reduction Act (Title X) applies: sellers/lessors must give the EPA/HUD lead pamphlet, disclose known lead hazards and provide records, and give buyers a 10-day opportunity to conduct a lead inspection (or a mutually agreed period). This is federal law layered on top of the Pennsylvania disclosure — the exam may test it in the Pennsylvania context.
Coal, mining, and subsidence notices — a Pennsylvania signature issue
Because of Pennsylvania's mining history, state law requires specific coal/mine notices:
- Coal rights / "Notice — This document may not sell..." (Bituminous Mine Subsidence): Pennsylvania statute requires that deeds and agreements of sale in areas underlain by coal contain a statutory coal notice advising the buyer that the seller may not be conveying the support rights and that the property may be subject to mine subsidence damage. The classic language warns that the buyer may not be obtaining the right to protection of surface structures from subsidence.
- Coal and Clay Mine Subsidence Insurance: Buyers in affected areas should be advised about the availability of mine subsidence insurance through the Commonwealth's program.
- These notices tie back to the reality that in parts of Pennsylvania, surface ownership and mineral/coal/support rights can be severed — a buyer can own the surface while a third party owns the coal and the right to remove it.
Verify the exact statutory notice language and the counties/areas where it applies (verify with the PA State Real Estate Commission and the applicable mining statutes).
Other disclosures to recognize
- Material defects known to the licensee must be disclosed regardless of the seller's statement — a licensee cannot hide behind the seller.
- Stigmatized property: Pennsylvania law limits liability for failing to disclose "psychological" stigma (e.g., a death on the property); know that physical material defects must be disclosed but certain non-physical stigmas are treated differently (verify current rule with the PA State Real Estate Commission).
- Megan's Law / sex-offender registry: Licensees typically direct buyers to the state registry rather than researching it themselves.