PA Real Estate Law Flashcards

PA Real Estate Law Flashcards Owners of real estate dealing with their own property areexempt from license law A licensee is prohibited from acting as a dual agent withoutthe knowledge and consent, in writing, of ALL parties Associate brokers who have the same education as a broker may manage a branch office and perform all of the same acts of a broker except for employing other licensees Each office member must disclose of a conviction in what type of establishment?a corporation, partnership, or association Before the Commission takes punitive action against a licensee, it must hold a hearing When a payment by the Real Estate Recovery Fund is authorized/issued, the license of the licensee is automatically suspended and he/she must repay the fund the same amount plus a 10% interest rate per year Compensation includescommissions and any valuable consideration Any individual who wishes to obtain a license must show proof to the commission that he/she has a good reputation for honesty, trustworthiness, integrity, and competence in the interest of the public In order to obtain a license, a rental listing referral agent must be 18+ years, complete 60 hours of education, and pass a licensing exam The Real Estate Recovery Fund does NOT apply to campground memberships or salespeople When a hearing is about to be scheduled, it must be issued within

• months of the charges being filed

A broker of record in a business is responsible for what duties?that the business and licensees comply with the laws and rules and any person who acts as a licensee must be licensed A license remains in the custody and control of the broker Under RELRA, a broker MAY pay compensation only tohis/her own licensed employees and/or another licensed broker Anyone who wishes to file a complaint against a licensee must get the form from the Department of Sate's Legal Office In order to obtain a license, a cemetery salesperson must be 18+ years and submit a sworn affidavit from a broker or cemetery broker that he/she has a good reputation and promising that the broker will supervise A licensee is prohibited from performing any act withouta license that requires one If a licensed person is suspected to have committed a violation, the licensee is entitled to a hearing and penalties imposed by the Commission Who may not manage a branch office?a salesperson A licensee is prohibited from failing to voluntarily furnish a copy of any listing, sale, lease, or other contract to ALL signatories of the document at the time of execution A licensee is prohibited from placing a for sale/rent sign on a property without the owner's written consent A licensee is prohibited from inducing any party to acontract, sale, or lease to break a contract in order to substitute a new contract Licenses are issued for2 years and renewed at the end of the period

A corporation, partnership, or association may be issued abroker's license Each licensee is responsible for payinghis/her own application, renewal, a change of name/address, duplicate license, and/or certification of current license status The Real Estate Recovery Fund covers damages againstlicensees when payment to a member of the public is required when the member wins a judgment The Real Estate Recovery Fund is a self-insurance program that gets its money from fees paid by licensees at the time of initial licensure or renewal License period runs fromJune 1st to May 31st of each EVEN numbered year A licensee is prohibited from failing to disclose to an owner in writing of his/her intention or position when attempting to purchase property from someone else Rental listing referral agents own or manage a business that collects information on rental units and refers prospective tenants A license may become inactive becausea licensee failed to pay a renewal fee or continue education requirements by the deadline*can also happen by choice of the licensee A BROKER is prohibited from paying a commission to anyone other than a broker's own licensed employee OR another broker Referral fees may only be paid toa licensed individual If an unlicensed individual is caught acting as a licensed real estate person, his/her SECOND AND SUBSEQUENT offense penalty is $2,000-$5,000 and/or 1-2 years in jail A licensee is prohibited from making any false promises likely to influence someone to enter into an agreement when he/she could not or did not intent to keep that promise A broker is someone whoreceives a fee or other valuable consideration from a principal for negotiating real estate, managing real estate, performing a market analysis, promoting sale/exchange of real estate, and/or representing himself to be a real estate consultant A licensee is prohibited from paying, accepting, giving, or charging ANY undisclosed commission, rebate, compensation. profit, or expenditures from a principal A broker must maintain in his/her office his/her own license and the licenses of all affiliated licensees In order to obtain a license, a time-share salesperson must be 18+ years, complete 30 hours of instruction, and complete at least 30 days of on-site training What is the purpose of PA real estate law? to protect the public against incompetence or dishonest real estate transactions, to enhance standards for licensees, and to protect licensees from improper or unfair competition Who is the FIRST to receive and take action against discrimination complaints?The PA Human Relations Act Commission In order to obtain a license, a sales person must be 18+ years, complete 60 hours of education, pass both national and PA exams, and submit a sworn statement from a real estate broker with who he/she will be affiliated with

If a broker changes his/her business address, he/she must notify the commission, in writing, before the move or within 10 days after the move A broker is prohibited from failing to exercise adequate supervision over the activities of licensed employees A licensee is prohibited from failing to provide the Commission with information related to a formal or informal complaint The limit of liability for damages on a single claim against a licensee is

$20,000

Businesses must designate an individual broker as thebroker of record and they must be a licensed broker A licensee is prohibited from violating any rule or regulation or failing to provide disclosure If a license is inactive for more that 5 years, the licensee must retake the license exam A broker of record is an individual broker who is responsible for the real estate transactions of a partnership, association, or corporation licensed as a broker *all liability is on broker of record for a corporation If an unlicensed individual is caught acting as a licensed real estate person, his/her FIRST offense penalty is $500 and/or jail for 3 months A licensee is prohibited from violating the relationship between brokers and consumers If an investigation finds adequate cause, the licensee has30 days to respond to the allegations In order to obtain a license, a campground membership salesperson must be 18+ years, complete 15 hours of instruction, and complete at least 30 days of on-site training A licensee is prohibited from soliciting, selling, or offering for sale, real property by offering free lots, conducting lotteries, conducting contests, or offering prizes A licensee is prohibited from any action relating to the right to cancel the purchase of a time share or campground membership A licensee may not receive compensation from anyone other than his/her employing broker A licensee is prohibited from failing to properly handledeposits or other money received by a broker In order to obtain a license, a broker must be 21+ years, be a high school graduate, complete 240 hours of education, have 3 years' experience, pass both PA and national exams, and a recommendation from another currently licensed broker The suspension or revocation of the BROKER'S license will NOT automatically happen unless a hearing shows that the broker had actual knowledge of the violation and/or the broker permitted a course of dealing that violated the law To renew a license, salesperson and broker must show proof of having completed continuing education courses totaling 14 hours for each 2-year renewal period The amount of all license fees are set by the commission to cover operational costs If a license is suspended because of payment of the Real Estate Recovery Fund, the license can be reinstated when the reimbursement is paid in full A licensee is prohibited from violating any provision/services The PA real estate commission is responsible for passing rules and regulations to implement the license law, setting fees, issuing licenses, insuring compliance with the law, investigating into improper conduct, and investigating

charges from the public If a licensee is convicted or pleads guilty to any offense, the commission must be notified within 30 days