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Each question shows the correct answer and an explanation of why it is right
An exclusive listing MUST be in writing and it MUST:
All exclusive listing agreements in Pennsylvania MUST specify their duration in writing.
49 Pa. Code 35.332 (Exclusive Listing Agreements) states that all exclusive listings must have a definite start and end date.
Listings without an expiration date are considered illegal and unenforceable in Pennsylvania.
Why the other answers are incorrect:
Option A (Cancellation in 24 Hours): There is no legal requirement for a 24-hour cancellation clause.
Option B (Financing Arrangements): Financing provisions are not a required part of a listing agreement.
Option C (Signed by Cooperating Broker): A cooperating broker's signature is not required. Only the listing broker and seller need to sign the agreement.
49 Pa. Code 35.332 -- Exclusive Listing Agreements
The Pennsylvania Real Estate Commission has received a written complaint that a licensee is engaging in an activity prohibited by the Real Estate Licensing and Registration Act. What action is the Commission empowered to take?
The Pennsylvania Real Estate Commission (PREC) has the power to investigate complaints, hold hearings, and impose disciplinary actions under 63 P.S. 455.404 (Powers of the Commission).
The Commission will first investigate the complaint to determine if the allegations are valid.
If warranted, the Commission will hold a formal hearing to decide on appropriate disciplinary action.
Possible penalties include fines, suspension, or revocation of the license.
Why the other answers are incorrect:
Option A (Automatic 6-Month Suspension): The Commission does not impose automatic suspensions; each case is reviewed individually.
Option C (Cease and Desist Order): This is typically used for unlicensed real estate activities, not licensed misconduct.
Option D (Transfer to Civil Authorities): While some cases (e.g., fraud) may be referred to law enforcement, the Commission itself first investigates.
63 P.S. 455.404 -- Powers of the Commission
If known, the listing broker MUST disclose which of the following to a prospective buyer?
A licensee must disclose all material defects related to the property, including known issues like a contaminated water system.
Under 68 P.S. 7303-7304 (Real Estate Seller Disclosure Law), the seller and broker must disclose all material defects affecting the property's value or safety.
A contaminated water system is considered a health and safety issue and must be disclosed to the buyer.
Why the other answers are incorrect:
Option A (Assumable Mortgage): This is a financial issue, not a material defect.
Option B (Seller's New Job): The seller's personal situation does not affect the property's condition.
Option C (Divorce): Divorce is private information and does not need to be disclosed.
Real Estate Seller Disclosure Law (68 P.S. 7303-7304)
A salesperson has just obtained the seller's signature on an offer to purchase. When MUST the buyer receive a copy?
Under 49 Pa. Code 35.331 (Written Agreements Generally), all parties must receive a copy of a signed offer within 1 business day of acceptance.
This ensures that buyers and sellers have full documentation of the transaction.
Delaying delivery of signed contracts can lead to disputes and potential violations of real estate regulations.
Why the other answers are incorrect:
Option A (24 Hours): While fast delivery is preferred, the law specifically states ''1 business day.''
Option C (At Closing): Buyers must receive a copy well before closing.
Option D (Reasonably Practicable Time): This is too vague and does not meet the specific 1-business-day requirement.
49 Pa. Code 35.331 -- Written Agreements Generally
If a client requests to list their home for much more than the comparable market analysis (CMA) recommends, what is the duty of the salesperson?
A real estate licensee has a fiduciary duty to provide honest, professional advice to their clients, including pricing strategies based on comparative market analysis (CMA).
Under 49 Pa. Code 35.292 (Duties of Licensees Generally), a licensee must act in the best interest of the client, which includes providing realistic pricing guidance.
If a seller insists on listing at an inflated price, the agent should educate them on the risks, such as longer market time and reduced buyer interest.
While the agent cannot force a seller to list at a lower price, they must ensure that the client makes an informed decision.
Why the other answers are incorrect:
Option A (Require an Appraisal): CMAs are typically sufficient for pricing; an appraisal is only required in specific cases (e.g., lender requirements).
Option B (Refuse the Listing): Overpricing is not illegal, so there is no licensing violation in accepting the listing.
Option D (Providing Investment Advice): Real estate licensees are not financial advisors and should not offer investment strategies.
49 Pa. Code 35.292 -- Duties of Licensees Generally
A salesperson who operates as an independent contractor for a broker is seldom in the office. Earnest money deposits received by this salesperson:
Under 49 Pa. Code 35.324 (Handling of Deposits and Escrow Money), all earnest money deposits must be promptly transmitted to the employing broker for deposit into an escrow account.
A salesperson cannot hold earnest money or maintain an escrow account on their own.
Brokers are responsible for ensuring that all escrow funds are properly handled and protected from commingling.
Why the other answers are incorrect:
Option A (Salesperson Holding Escrow Funds): Salespersons are prohibited from maintaining independent escrow accounts.
Option C (Holding Funds for 3 Days): Earnest money must be turned over to the broker as soon as possible; salespersons cannot hold it for any period.
Option D (Returning to Buyer for Transmission): Earnest money must go directly to the broker, not back to the buyer.
49 Pa. Code 35.324 -- Handling of Deposits and Escrow Money
Exam domains verified against: Official Real Estate Licensing RePA_Sales_S exam guide, last checked October 2026.
Understand the PA Real Estate Commission's role in licensing, regulation, and consumer protection. Learn the complaint and investigation process, including how hearings and appeals work. Study the Real Estate Recovery Fund and what it covers for consumer claims.
Sample question from this domain above: Q6
A. Qualifications; B. Activities requiring a license; C. License renewal and reactivation; D. Change of employment; E. Exemption from licensure
Sample question from this domain above: Q5
Master the types of agency relationships and when disclosures must be made to clients and customers. Learn licensee duties under different agency arrangements. Understand compensation disclosure requirements and limitations.
Follow advertising restrictions and requirements for licensees and brokers. Know what broker-salesperson agreements must contain and how they differ from independent contractor arrangements. Master trust account requirements, prohibited conduct, and the grounds for suspension or revocation.
Recognize seller disclosures and what property defects must be revealed. Understand the standard forms and contracts required by PA law for various transactions. Learn PA's Human Relations Act protections and time-share and rental disclosure requirements.
Common questions about the exam itself
