Free Pennsylvania Real Estate Practice Exam

Q1.A Pennsylvania broker discovers that a salesperson has been collecting earnest money deposits without following proper procedures. The broker's immediate obligation is to:

• A.Terminate the salesperson immediately
• B.Report the incident to local law enforcement
• C.Take corrective action and ensure proper handling of client funds
• D.Transfer the salesperson to another broker

Q2.A condominium association holds title to common areas as which type of ownership?

• A.Tenancy in common among all unit owners
• B.Joint tenancy with right of survivorship
• C.Fee simple absolute in the association's name
• D.Tenancy by the entirety among married unit owners

Q3.Which of the following best describes a voidable contract?

• A.A contract that is illegal and unenforceable from the beginning
• B.A contract that appears valid but can be rejected by one party
• C.A contract that has been fully performed by both parties
• D.A contract that lacks consideration

Q4.In Pennsylvania, what is the maximum time period a broker may hold earnest money in their trust account before depositing it into the designated trust account?

• A.Immediately upon receipt
• B.Within 24 hours
• C.By the next business day following receipt
• D.Within 3 business days

Q5.In Pennsylvania, which document must be provided to consumers at the first substantive contact regarding specific real property?

• A.Property disclosure statement
• B.Consumer notice
• C.Listing agreement
• D.Comparative market analysis

Q6.Under Pennsylvania Real Estate License Law, what is the maximum amount a broker may retain from an escrow account for service charges without written authorization from all parties?

• A.$50
• B.$100
• C.$0 - no amount may be retained without authorization
• D.1% of the transaction amount

Q7.What does the principle of substitution state in real estate valuation?

• A.A buyer will pay no more for a property than the cost of acquiring an equally desirable substitute
• B.Properties can be substituted for each other in any transaction
• C.The highest and best use can be substituted at any time
• D.Market value equals replacement cost

Q8.A Pennsylvania real estate agent learns that a client is HIV-positive and refuses to continue working with them. This action:

• A.Is legal since HIV status is not a protected class
• B.Is illegal under Pennsylvania's handicap/disability protections
• C.Is legal if disclosed to other parties
• D.Is illegal only under federal law

Q9.A property is described as 'the NW 1/4 of the SE 1/4 of Section 12, Township 3 North, Range 2 East.' How many acres does this property contain?

• A.20 acres
• B.40 acres
• C.80 acres
• D.160 acres

Q10.In a metes and bounds description, what does the term 'monument' refer to?

• A.A gravestone or memorial marker
• B.A permanent object used as a reference point
• C.A temporary survey stake
• D.A building foundation

Q11.RESPA applies to which type of loans?

• A.All real estate loans
• B.Federally related mortgage loans on 1-4 family residential properties
• C.Only FHA and VA loans
• D.Commercial loans over $1 million

Q12.Under Pennsylvania regulations, when may a broker withdraw earned commissions from the trust account?

• A.Immediately upon listing a property
• B.When the purchase agreement is signed
• C.After settlement/closing has occurred
• D.30 days after the purchase agreement is executed

Q13.In Pennsylvania, the Consumer Notice must be provided to a consumer at what point in the relationship?

• A.Before showing any property
• B.At first substantial contact
• C.When an offer is presented
• D.At settlement

Q14.Under Pennsylvania license law, if a broker wants to establish a designated agency policy, what requirement must be met?

• A.All licensees in the firm must agree to participate
• B.The policy must be approved by the Pennsylvania Real Estate Commission
• C.Written policies and procedures must be established and maintained
• D.The firm must have at least 10 licensed salespersons

Q15.A Pennsylvania real estate salesperson receives a complaint filed with the Real Estate Commission. During the investigation, what rights does the salesperson have?

• A.Right to remain silent and refuse to cooperate
• B.Right to legal representation and to present evidence
• C.Right to a jury trial
• D.Right to appeal directly to federal court