Free Pennsylvania Real Estate Practice Exam

Q1.Federal lead-based paint disclosure requirements under 24 C.F.R. Part 35 apply to:

• A.All residential properties sold in Arizona
• B.Residential properties built before January 1, 1978
• C.Properties built before 1978 only if they show visible paint deterioration
• D.Commercial properties containing residential units built before 1978

Q2.A buyer's broker is negotiating an offer on behalf of a client. The listing broker discloses that the seller will accept $10,000 below list price and reveals the seller's urgent need to close within 30 days due to financial hardship. The buyer's broker did not ask for this information. Under general agency principles, what is the buyer's broker's MOST appropriate course of action?

• A.Use the information exclusively in the client's best interest, because the buyer's broker owes undivided fiduciary loyalty to the buyer and has no obligation to protect the seller's confidential information.
• B.Immediately disclose the seller's motivations back to the seller's broker and suggest both parties start negotiations over to maintain ethical balance.
• C.Refuse to use the information and instruct the client to offer full list price to avoid an ethical violation.
• D.Disclose the seller's confidential information to the local MLS so all cooperating brokers are treated equally.

Q3.Under RELRA 63 P.S. § 455.521 and 49 Pa. Code Chapter 35, a Pennsylvania broker who operates a branch office must ensure which of the following?

• A.The branch office is managed by a licensed salesperson with at least two years of experience.
• B.The branch office is supervised by a licensed broker or associate broker designated in writing.
• C.The branch office maintains a separate escrow account distinct from the main office account.
• D.The branch office must be registered with the Pennsylvania Department of State within 30 days of opening.

Q4.Which of the following actions falls within the rule-making authority granted to the Pennsylvania State Real Estate Commission under RELRA?

• A.Establishing criminal penalties for real estate fraud through legislative action
• B.Adopting regulations that set continuing education requirements for licensees
• C.Issuing court injunctions against unlicensed individuals without a hearing
• D.Directly amending the text of RELRA without legislative approval

Q5.In states that allow attorney review periods, what typically happens during this timeframe?

• A.Either party's attorney can disapprove the contract for any reason
• B.The attorneys must approve the property's title
• C.Only the buyer's attorney can review the contract
• D.The contract automatically becomes binding

Q6.A broker who supervises six affiliated salespersons discovers that one salesperson has been depositing earnest money checks directly into the salesperson's personal bank account before transferring funds to the firm's trust account three to five days later. The broker was unaware of the practice for four months. Under generally applicable broker supervision standards, which of the following best describes the broker's exposure and obligations?

• A.The broker faces potential disciplinary action for failing to adequately supervise the salesperson, because brokers have an affirmative duty to establish and enforce written office policies governing trust fund handling; the broker must immediately correct the practice, segregate and account for all affected funds, and self-report if required by applicable law.
• B.The broker bears no liability because the salesperson acted outside the scope of authority, and brokers are not responsible for the independent criminal acts of affiliated licensees.
• C.The broker's only obligation is to terminate the salesperson's affiliation, as this severs the supervisory relationship and eliminates any further regulatory exposure for the firm.
• D.The broker is insulated from discipline because unawareness of the salesperson's conduct constitutes a complete defense under the doctrine of respondeat superior.

Q7.Under RELRA and 49 Pa. Code Chapter 35, a Pennsylvania employing broker is responsible for which of the following with respect to salespersons licensed under the broker?

• A.The broker is responsible only for transactions the broker personally supervises, not for independent actions of salespersons
• B.The broker must actively supervise all licensed salespersons and is responsible for their real estate activities conducted under the broker's license
• C.The broker's supervisory responsibility ends once a salesperson passes the state licensing examination
• D.The broker is responsible for salespersons' conduct only during their first year of licensure

Q8.A commercial property is listed for sale and the seller discloses a prior Phase I Environmental Site Assessment (ESA) showing recognized environmental conditions (RECs) related to dry-cleaning solvents used by a former tenant. The buyer's broker advises the buyer to skip the Phase II ESA to save money and time. The property is purchased, and contamination is later confirmed. Under CERCLA, which party is most likely to bear primary liability for cleanup costs, and what is the significance of the Phase I ESA in this context?

• A.The buyer is most likely liable as a current owner under CERCLA's strict liability framework, but could have asserted the 'bona fide prospective purchaser' (BFPP) defense by conducting all appropriate inquiry (AAI), including a Phase II ESA when Phase I reveals RECs — advice to skip Phase II likely defeats that defense.
• B.The seller bears sole CERCLA liability because the contamination originated under prior ownership, and the buyer is fully protected by the caveat emptor doctrine once disclosure was made.
• C.The buyer's broker bears primary CERCLA liability for advising against the Phase II ESA, because CERCLA imposes liability on any party who contributes to the disposal of hazardous substances.
• D.CERCLA liability attaches only to the original polluter (the dry-cleaning tenant), and subsequent owners are fully insulated once they receive a Phase I ESA report disclosing the RECs.

Q9.Under Pennsylvania's Consumer Notice requirements (49 Pa. Code § 35.336), a broker or licensee must provide the Consumer Notice to a consumer at which point in the business relationship?

• A.At or before the first substantive contact with a consumer, prior to any discussion of specific real property.
• B.At the time the agreement of sale is executed by both parties.
• C.Only when the consumer requests information about agency relationships in writing.
• D.Within five business days after the first showing of a property to the consumer.

Q10.Under the FHA, an assistance animal is:

• A.Only a service dog trained under the ADA
• B.A pet, subject to all pet rules and pet fees
• C.A service animal OR an emotional support animal that does work or provides emotional support related to a disability — not a pet under the FHA
• D.Only an animal certified by a federal registry

Q11.Under 49 Pa. Code § 35.281, a Pennsylvania broker who receives a deposit (earnest money) from a buyer must deposit those funds into an escrow account within what timeframe?

• A.Immediately upon receipt, with no exceptions permitted.
• B.Within two business days of receipt of the deposit.
• C.Within five business days of receipt of the deposit.
• D.At or before the closing of the transaction, provided the funds are held in the broker's operating account.

Q12.Under RESPA, when must a lender provide the Loan Estimate to a borrower applying for a federally related mortgage loan?

• A.Within 24 hours of receiving the loan application
• B.At the time of loan application
• C.Within 7 calendar days of receiving the loan application
• D.Within 3 business days of receiving the loan application

Q13.Under the Real Estate Licensing and Registration Act (RELRA), which state agency is responsible for overseeing the licensing of real estate salespersons in Pennsylvania?

• A.The Pennsylvania Department of Banking and Securities
• B.The Pennsylvania State Real Estate Commission
• C.The Pennsylvania Department of State's Bureau of Consumer Protection
• D.The Pennsylvania Attorney General's Office

Q14.The Truth-in-Lending Act (TILA) requires lenders to disclose which of the following to borrowers?

• A.The borrower's credit score
• B.The property's appraised value
• C.The Annual Percentage Rate (APR)
• D.The loan officer's commission

Q15.A borrower obtains a $200,000 loan at 6% annual interest. If the monthly payment is $1,199, how much of the first payment goes toward principal?

• A.$199
• B.$1,000
• C.$1,199
• D.$6,000