Free Pennsylvania Real Estate Practice Exam
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Question 1 of 5.
A buyer emails the buyer's agent a copy of the buyer's W-2 form and paystubs containing the buyer's date of birth and social security number. The buyer's agent forwards the email to the lender. In this situation:
A. The buyer's agent may be liable for disclosing confidential information.
B. The buyer's agent is not liable for disclosing confidential information because the communication is electronic.
C. The seller's agent may be liable for disclosing confidential information.
D. The real estate commission will automatically place the seller's agents and the buyer's agent's licenses on probation.
Explanation: The buyer's agent has a fiduciary duty to keep the buyer's confidential information private. Forwarding sensitive personal documents like W-2s and paystubs containing date of birth and social security number without the buyer's explicit consent for that specific act of forwarding could make the buyer's agent liable for disclosing confidential information (A). While these documents are often needed by lenders for loan applications, the agent should confirm specific consent for sharing this sensitive data directly with the lender. Electronic communication (B) does not absolve the agent of their responsibility to protect confidential information. The seller's agent (C) is not involved in this specific disclosure. Automatic probation (D) is not a standard consequence for such a scenario; actions against a license typically involve a formal complaint and investigation.
Question 2 of 5.
A listing salesperson receives an offer written by a salesperson from another firm. The offer is poorly written with many cross-outs and questionable terms. The listing salesperson SHOULD:
A. Reject the offer.
B. Return the offer to the other salesperson and suggest that he rewrite it.
C. Inform the seller of the offer and advise the seller against having it presented.
D. Present the offer to the seller.
Explanation: A listing salesperson has a fiduciary duty to the seller to present ALL offers promptly, regardless of their perceived quality or clarity. Even if an offer is poorly written, contains cross-outs, or has questionable terms, it must be presented to the seller (D). It is the seller's decision whether to accept, reject, or counter it. The listing salesperson cannot reject the offer (A), return it for rewriting (B), or advise the seller against presenting it (C); doing so would be a breach of their duty to the seller.
Question 3 of 5.
Which of the following is a statutory duty of a real estate licensee representing a seller?
A. To ensure that the buyer receives a comparable market analysis for the property
B. To document all conversations with the seller and make all records available for inspection by the Real Estate Commission.
C. To ensure that the seller markets the property at a price for the home based on a comparable market analysis.
D. To ensure that all services provided to the seller are provided in a reasonable, professional, and ethical manner.
Explanation: A statutory duty of a real estate licensee, especially when representing a seller, is to maintain accurate records of all activities, including conversations related to the transaction. This includes documenting all conversations with the seller and making these records available for inspection by the Real Estate Commission (B) as part of their oversight and regulatory function. Ensuring a buyer receives a CMA (A) is not a direct duty to the seller. Ensuring the seller markets at a certain price (C) or guarantees a price is beyond the licensee's role. Option D describes general professional conduct but is less specific than the record-keeping duty.
Question 4 of 5.
A broker has been hired by a buyer to find an investment property. Upon locating a suitable property, the broker SHOULD:
A. initiate a title search of the property
B. recommend a professional inspection of the property
C. disclose their dual representation, in writing, to both buyer and seller
D. disclose to the listing broker or the seller that they represent the buyer
Explanation: A broker representing a buyer has a duty to disclose their agency relationship to the listing broker or directly to the seller when presenting an offer (D). This informs the seller's side that the broker represents the buyer's interests. Initiating a title search (A) and recommending a professional inspection (B) are important steps in the transaction process, but they are typically performed by third parties or arranged by the buyer after an offer is made or accepted. Disclosing dual representation (C) is only applicable if the broker *also* represents the seller; otherwise, they are a single agent for the buyer.
Question 5 of 5.
Which of the following conditions MUST be met before a licensee participates in the sale of real property in which the licensee has an ownership interest?
A. The Pennsylvania Real Estate Commission must be notified of the transaction.
B. The listing agreement must identify the licensee's name and status as a licensee.
C. The licensee must provide written disclosure of the ownership interest to all parties.
D. The percentage of the licensee's ownership interest must be stated on the sales contract.
Explanation: When a licensee has an ownership interest in a real property transaction, they MUST provide written disclosure of their ownership interest to all parties involved (C). This is a critical ethical and legal requirement to avoid conflicts of interest and ensure transparency. Simply notifying the Commission (A) is not sufficient. The listing agreement identifying the licensee's name and status (B) is relevant if the property is listed with their firm, but the direct disclosure of ownership is broader. Stating the percentage of ownership interest on the sales contract (D) might be good practice but is not universally a mandatory requirement; the primary obligation is simply to disclose the existence of an ownership interest.