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PENNSYLVANIA Salesperson (Real Estate
Practice Exam) questions and answers
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Requires the seller to provide notice to a purchaser about whether a structure on the land is entitled to support from the underlying coal. - Coal Notice Three conditions that must be met for a mobile home to be considered real estate - 1. Mobile home is transferred in conjunction with and as a part of an assignment of a land lease or the transfer of an interest in land on which the mobile home is situated; or
- Mobile home is permanently attached to a foundation, and
- Registration of the mobile home is canceled by the owner with the Pennsylvania Bureau of Motor Vehicles The governing body of a municipality is responsible for enacting the comprehensive plan, zoning, and subdivision ordinances in accordance with procedures in the Pennsylvania Municipalities Planning Code. They may appoint a planning commission to be responsible for formulating the recommended plans and ordinances. Public hearings must be held prior to their enactment by the governing body. - Zoning Charges permitted by the Pennsylvania Municipalities Planning Code to help defray the cost of streets to keep up with development - Impact Fees Went into effect in July 2004, as prescribed by the Pennsylvania Construction Code Act that was passed in 1999. *In addition to satisfying the purpose of construction codes, the act encourages the use of state-of-the-art construction methods and systems and eliminates existing codes that are obsolete, overly restrictive, or conflicting. - Uniform Construction Code (UCC) Oversee's PA's environmental laws - Department of Environmental Protection
Passed by the Department of Environmental Protection *Gives notice to prospective buyers that if a property is not serviced by a public sewage system and no community sewage system is available, a permit for an individual system must be obtained - Pennsylvania Sewage Facilities Act in 1994 Provides for the rehabilitation or recycling of brownfields by providing a mechanism to enforce hazard mitigation controls and ease concerns about the future liability associated with contaminated properties
- Uniform Environmental Covenants Act (UEAC), which took effect in February 2008 Burdensome disclosure requirements are readily satisfied -Mitigation controls can be enforced regardless of ownership - Benefits of the UEAC True or False Pennsylvania, has abolished the common law concepts of dower and curtesy. - True Created when the person claiming the easement has made use of another's land for 21 years in PA. The claimant's use must have been continuous, exclusive, and without the owner's approval. Through the principle of tacking (discussed in Unit 5), successive periods of adverse possession by different adverse possessors can be combined so that a person who is not in possession for the entire statutory time may establish a claim.The use must be visible, open, and notorious, that is, the owner must have been able to learn of it. The claimant is entitled to assert a right to use the property and cannot claim ownership. Prescriptive easements cannot usually be acquired on public land. - Easement by Prescription The Pennsylvania Landlord/Tenant Act also specifies the time period that is required for notice in a variety of circumstances - Normally, one week's notice is required to terminate an estate from week to week; one month's notice is required to terminate an estate from month to month; and three months' notice is required to terminate an estate from year to year. True or False The statute of frauds in Pennsylvania requires contracts for more than two years duration to be in writing. - False, contracts for more than three years duration are required to be in writing. However a written agreement can be used for any period of time. In Pennsylvania, the law requires payment of transfer taxes on leases that run for more than a total of ____ years. - 30
Race, color, religion, national origin, sex, age (40 years old or older), handicap, use of guide or support animals due to a handicap or disability, or familial status, are all protected under what Act? - All persons must have access to housing of their choice under the Pennsylvania Human Relations Act Legal forms of ownership in PA - In Severality or concurrently as Joint Tenents or Tenents in Common, if married as Tenants in the Entireties. In addition, corporations and partnerships can hold title, and title can be held in trust When two or more new owners acquire title to a parcel of real estate and the deed does not stipulate the tenancy, they acquire title, by operation or rule of law, as tenants in common. But if the conveyance is made to a husband and wife with no further explanation, in Pennsylvania a tenancy by the entirety is created - Co-Ownership A special form of joint tenancy between husband and wife that is recognized in Pennsylvania. Each spouse has an equal, undivided interest in the property. - Tenancy by the Entirety Under common law, a partnership is not a legal entity and technically cannot own real estate. Individual partners must hold title as tenants in common or joint tenants. However, in states that have adopted the Uniform Partnership Act, including Pennsylvania, a partnership is recognized as a legal entity and can hold title in the partnership's name. Similarly, under the Uniform Limited Partnership Act, a limited partnership is recognized as a legal entity that can hold title to property in the limited partnership's name. Profits and losses are passed through the partnership to each partner, whose individual tax situation determines the tax consequences - Partnerships For Pennsylvania taxes, however, an LLC is treated as a corporation but may be considered an S corporation if it meets the requirements for this type of an organization. - Limited Liability Companies The state law adopted from the national model act that governs the development and operation of condominiums. The law also provides for certain disclosures to purchasers of condominium units - Pennsylvania Uniform Condominium Act Must be given to prospects at least 15 days before a sales contract is signed. Must detail 22 caterogies of info. i.e, bylaws, R&R, projected budgets, leins or encumbrences on the bldg, etc. If a purchaser is not
provided the statement within the prescribed timeframe they may cancel the contract within 15 days of receipt w/out penalty & recover an amount of 5% of the units price up to $2000 or actual damages whichever is greater - Public Offering Statement The Pennsylvania Real Estate Licensing and Registration Act, requires licensure for a time-share salesperson and a campground membership salesperson - Time-Share Interests Pennsylvania law requires counties and municipal governments to adopt budgets and set tax rates on a January-to-December calendar year. Most school districts in Pennsylvania, however, are required to prepare budgets and set tax rates on a fiscal year that begins July 1 - Tax Bills A contractor or subcontractor can file a claim with the court of common pleas in the county in which the property is located. This must be done within six months after the work is completed. If the claim is successful, the mechanic's lien takes priority as of the date on which the first "visible construction" begins when an improvement is erected or constructed or as of the date the claim is filed when an existing improvement is altered or repaired. A claimant must take steps to enforce the lien within two years of the date the claim is filed. Enforcement is a court action to foreclose the lien through the sale of the real estate. Proceeds from the sale are then used to pay the lien. - Mechanics Lien Elements of a deed legal description of real estate - A valid deed must contain an accurate description of the real estate conveyed. Land is considered adequately described if a competent surveyor can locate the property using the description. In Pennsylvania, a metes-and-bounds and/or a lot-and-block description would be used. In lieu of a nonowning spouse's signature intends to ensure that the title would not be clouded by claims in a property settlement. - Affidavit of no pending domestic litigation Confers authority for the agent to act notwithstanding the principal's disability or incapacity - Power of Attorney Acknowledgement - In Pennsylvania, an unacknowledged deed is not eligible for recording. An unrecorded deed is valid between the grantor and the grantee, but it may not be a valid conveyance (to secure good title) against claims by subsequent innocent purchasers.
is injured by the advice can file a lawsuit, which can result in an award of monetary damages against the individual who provided that advice. Plain Language Consumer Contract Act in Pennsylvania - Intends to protect consumers from making contracts they do not understand by promoting the use of plain language. Agreements that must be written in plain language include contracts in which a consumer -borrows money; buys, leases, or rents personal property or real property; and -engages services for cash or on credit for personal, family, or household purposes. Any creditor, lessor, or seller who does not comply with the tests of readability (as defined by the law) is liable to the consumer for any loss caused by the violation, statutory damages of up to $100, court costs, and attorney fees Give legal effect to agreements bargained for electronically, as long as they meet all other provisions of contract law. - Electronic Transaction Act enacted in January 2000 Mortgage bankers and mortgage brokers must be licensed and conduct business in accordance with the Mortgage Bankers and Brokers Act - The Department of Banking issues these licenses and governs the licensees' activities, with the State Real Estate Commission also having certain limited authority when these individuals are licensed real estate brokers and salespersons as well. Intermediary theory - A hybrid philosophy that is based on the principles of title theory but, like the principles of lien theory, requires that the mortgagee foreclose to obtain legal title. Prepayment - Lenders are not permitted to charge prepayment penalties on mortgage loans insured or guaranteed by the federal government. In addition, Pennsylvania law does not permit prepayment penalties on residential mortgage loans when the principal amount is $50,000 or less. Otherwise, lenders can include in the note whatever penalty conditions they choose This program was created during the early 1980s when workers faced the loss of their homes after losing their jobs in the demise of the steel industry. The program provides counseling and loans to help
people pay delinquent mortgage loans. In some cases, people may qualify for continuing monthly payment assistance for up to 24 months - Homeowner Emergency Assistance Program (HEMAP). If it appears from evidence at a hearing that the employing broker had actual knowledge of a violation or permitted a course of dealing that violates the law, the Commission may suspend or revoke the employing broker's license or levy a fine. - Discipline against a broker This allows the property to be sold by court order after the mortgagee has given sufficient public notice. This is the prevalent type of mortgage foreclosure in Pennsylvania. - Judicial foreclosure What is the major disadvantage of the deed in lieu of foreclosure? - The mortgagee takes the real estate subject to all junior liens. A borrower may cure the default of a residential mortgage loan with an outstanding balance of $50, or less by merely bringing the payments up to date. If some person other than the mortgagor redeems the real estate, the borrower becomes responsible to that person for the amount of the - Redemption Established 2/19/1980, The Pennsylvania law that protects the public interest by governing real estate practices and the activities of licensees. - Real Estate Licensing and Registration The agency established by the Pennsylvania Real Estate Licensing and Registration Act to administer this law and supervise the activities of licensees. - State Real Estate Commission The five commissioners licensed as brokers shall have been engaged in the real estate business for at least ___ years - 10 The Commission conducts regularly scheduled business meetings that, under the state _______ are open to the public. - "sunshine laws"
A salesperson MUST - be at least 18 years of age, complete 60 hours of real estate as prescribed by the Commission, and pass both portions of the examinations prior to being issued a license An individual or entity licensed to engage exclusively in the sale of cemetery lots, plots, and mausoleum spaces or openings. - Cemetery Broker A cemetery broker MUST - obtain 60 hours of instruction as approved by the Commission, be engaged for three years (or equivalent) as a salesperson or cemetery salesperson pass a written examination prior to licensure. A cemetery salesperson MUST - be at least 18 years of age submit a sworn affidavit from the employing broker or cemetery broker attesting to the applicant's good reputation and that the broker will actively supervise and train the applicant. There is no education or examination requirement for licensure. A Builder-Owner Salesperson is - an individual who is a full-time employee of a builder-owner of single- family and multifamily dwellings and who performs one or more of the following activities: -Lists for sale, sells, or offers for sale real estate of the builder-owner -Negotiates the sale or exchange of real estate of the builder-owner -Leases or rents real estate of the builder-owner -Collects or offers or attempts to collect rent for the real estate of the builder-owner A builder-owner salesperson MUST - be at least 18 years of age, -be employed by the builder-owner (who is not licensed), -complete a written examination prior to licensure. -There is no education requirement Rental listing referral agent is - A licensee who owns or manages a business that collects rental information for the purpose of referring tenants to rental units or locations. The applicant must satisfy licensing requirements that are essentially the same as for a salesperson licensee; however, the rental listing referral agent is not affiliated with a broker.
Campground membership salesperson is - A licensee who, either as an employee or independent contractor, sells campground memberships under the supervision of a broker. The applicant must be at least 18 years of age, complete 15 hours of instruction in specific topics, and complete not less than 30 days of on-site training at a campground membership facility prior to licensure. The broker is responsible for further training and supervising the licensee. Licensed salespersons, brokers, and time- share salespersons do not need a separate license to sell campground memberships. Time-share salesperson is - A licensee who, either as an employee or independent contractor, sells time- shares under the supervision of a broker. A time-share salesperson must be at least 18 years of age, complete 30 hours of instruction in specific topics, and complete not less than 30 days of on-site training at a time-share facility prior to licensure. The broker is responsible for further training and supervising the licensee. Licensed salespersons and brokers do not need a separate license to sell time-shares. Penalties for unlicensed activity - The first conviction for unlicensed activity is a summary offense and involves payment of a fine not to exceed $500 and/or imprisonment not to exceed three months. A second or subsequent offense is a felony of the third degree and involves payment of a fine between $2,000 to $5,000 and/or imprisonment for one to two years. Licensing procedures - The license period for all real estate licenses currently begins June 1 and ends the last day of May in each even-numbered year (a two-year license period). When a license is first issued, it expires on the last day of May of the current license period. A license is considered active once the license is issued and remains properly renewed. Continuing Education requires - Licensed brokers and salespersons are required to satisfy a 14-hour continuing education requirement during each two-year period in order to renew the license. Licensees are required to keep documentation of approved coursework they have completed during the license period to satisfy the renewal requirement. The licensee may, however, be requested to provide documentation as evidence of completion of the continuing education requirement as part of a post- renewal audit program instituted with the 2008 renewal period A license become inactive when - an individual voluntarily relinquishes a license, sometimes referred to as putting a license in "escrow," or when an individual fails to properly renew a license.
Reporting crimes and disciplinary actions - Section 35.290 of the Regulations states that a licensee shall notify the Commission of a conviction or pleading of guilty or nolo contendere to a felony or misdemeanor. The report must be made within 30 days of the verdict or plea. If a licensing authority in another jurisdiction takes disciplinary action, the licensee must notify the Commission in Pennsylvania within 30 days of that action. A fund established for aggrieved parties who have obtained uncollectible judgments against real estate licensees for fraud, deceit, or misrepresentation. The maximum amount that may be paid from the fund for any one claim is $20,000 and $100,000 per licensee. If $100,000 is insufficient to settle the claims against a licensee, the $100,000 shall be distributed according to the same ratio as the respective claims
- Real Estate Recovery Fund Real Estate Recovery Fund - The license of the person involved in a claim is automatically suspended as of the date a payment is made from the fund. The license cannot be reinstated until the licensee repays the amount of the claim plus interest at 10 percent per year. The Commission can also take action in an attempt to recover monies paid out of the fund. Time-share and campground membership contracts - Section 609 of the RELRA gives purchasers of time- share and campground memberships the right to cancel a purchase. The cancellation right exists until midnight of the fifth day following the date on which the purchaser executed the contract. The provisions of this section of the Act apply to time-share and campground memberships located in Pennsylvania as well as outside the state if the purchase contract was executed by the purchaser in Pennsylvania Document Procedures - When no transaction results from a brokerage relationship, the signed acknowledgment portion of the Consumer Notice that was provided must be retained for six months Deadlines for deposits - A broker is responsible for depositing the funds in escrow by the end of the next business day following receipt. In the case of multiple office firms, the deadline applies to receipt by the office out of which the account is administered. If the money has been tendered in the form of a check when an offer to purchase or lease is made, the broker may, with written permission from both the buyer and the seller, refrain from depositing the money pending acceptance of the offer. In this case, the broker must deposit the funds within one business day following acceptance of the offer.
Conflict of Interest - It also says that a broker who manages rental property may not accept commission, rebate, or profit on expenditures made for the lessor without the owner's written consent Advertisement of lotteries, contests, prizes, certificates, lots, and gifts - advertisements for the solicitation or sale of real estate that employ lotteries or contests or that offer prizes, certificates, gifts, or free lots shall contain -a description of each prize, certificate, gift, or lot offered; -the prerequisites for receiving the awards; -the limitation on the number of awards; -the fair market value (not suggested retail value) of each award; and -the odds of winning or receiving the award. The Commission requires that disclosures be made if there is a possibility that a particular award is not available and prohibits advertising an award that is not available for distribution. The description of an award cannot be misleading, and a statement of value and odds shall be printed in a clear and conspicuous manner. If the prizewinner must pay any fees, such as dealer preparation, shipping, handling, or insurance, these must be disclosed. Advertising sales volume, market position, and number of offices - advertising by a broker about "sales volume" or "production" shall refer only to closed transactions An advertisement by a broker about production or position in the "market" shall identify the municipality that the market comprises. An advertisement about the number of offices that the broker operates shall refer only to offices that have been issued branch office licenses. Promotional land sales - any person who proposes to engage in real estate transactions of a promotional nature in PA, regardless of whether the property is located within or outside PA, shall first register with the Commission. "Promotional real estate" is an interest in property that is part of a promotional plan that offers real estate through advertising by mail, newspaper, or periodical, or by radio, television, telephone, or other electronic means. Promotional real estate does not involve fewer than 50 lots or shares or land areas of less than 25 acres. The registration is not required if the promotional property is already registered with the Department of Housing and Urban Development under the Interstate Land Sales Full Disclosure Act.
