Free Pennsylvania Real Estate Practice Exam

Explanation: The Federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, disability, familial status, or national origin in the sale or rental of housing. If a seller instructs a salesperson to discriminate based on race, the salesperson must refuse the listing (A) to avoid violating federal law. Listing the property as a one-to-four family dwelling (B) does not exempt it from anti-discrimination laws if a real estate agent is involved. Notifying the broker (C) is insufficient if the illegal instruction remains. Accepting such an instruction (D) would be a direct violation of fair housing laws and the salesperson's ethical obligations.

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.

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.

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.

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.