1. Under the Pennsylvania Real Estate Licensing and Registration Act (RELRA), which state agency is responsible for issuing and regulating real estate salesperson licenses in Pennsylvania?
- A. Pennsylvania Department of State through the State Real Estate Commission ✓
- B. Pennsylvania Department of Banking and Securities
- C. Pennsylvania Attorney General's Office
- D. Pennsylvania Department of Consumer Affairs
RELRA vests authority in the State Real Estate Commission (SREC), which operates under the Pennsylvania Department of State's Bureau of Professional and Occupational Affairs. The other agencies listed have no jurisdiction over real estate licensing.
2. A Pennsylvania real estate salesperson whose license is due to expire on May 31 of the current even-numbered year has so far completed 8 hours of Commission-approved continuing education during this renewal cycle. Under the Real Estate Licensing and Registration Act, how many additional hours must the salesperson complete before the license can be renewed?
- A. No additional hours; 8 hours already satisfies the biennial requirement
- B. 4 additional hours, for a total of 12 hours
- C. 6 additional hours, for a total of 14 hours ✓
- D. 16 additional hours, for a total of 24 hours
Section 404.1 of the Pennsylvania Real Estate Licensing and Registration Act (63 P.S. § 455.404a) and State Real Estate Commission regulation 49 Pa. Code § 35.382 require every salesperson (and broker) to complete 14 hours of Commission-approved continuing education during each two-year license period, which ends on May 31 of even-numbered years. Having completed 8 hours, the licensee needs 6 more to reach the 14-hour total. Twelve and twenty-four hours are common requirements in other states, not Pennsylvania, and 8 hours alone is insufficient.
3. A candidate for a Pennsylvania real estate salesperson license passes the national portion of the licensing examination but fails the Pennsylvania state-specific portion. Under the State Real Estate Commission's regulations, which statement correctly describes the candidate's situation?
- A. The candidate must retake both portions of the examination, because a passing score on only one portion is not recognized.
- B. The candidate is limited to two more attempts at the state portion before being required to repeat the 75-hour pre-licensing education.
- C. The candidate needs to retake only the failed state portion, and the passing score remains valid for three years, during which the candidate must pass the other portion and apply for licensure. ✓
- D. The candidate must wait six months and complete an additional 30-hour course before registering to retake the state portion.
Under 49 Pa. Code § 35.271 (SREC regulations governing the salesperson examination), the examination consists of a national portion and a state portion, and a candidate who passes one portion but fails the other is required to retake only the failed portion. Examination results are valid for three years: the candidate must pass the remaining portion and apply for licensure within three years of passing, or the passed portion expires and both portions must be retaken. Pennsylvania imposes no cap on the number of retake attempts, no mandatory waiting period, and no additional education requirement to retake a failed portion; the candidate simply re-registers and pays the examination fee again.
4. Under RELRA, a licensed Pennsylvania salesperson who wishes to change employing brokers must:
- A. Complete a new application, pay a transfer fee, and obtain the new broker's written authorization before conducting licensed activity for the new broker ✓
- B. Simply begin working for the new broker immediately and notify the Commission within 10 days
- C. Surrender the current license and reapply for a new license under the new broker
- D. Wait until the current license renewal period ends before transferring
A Pennsylvania salesperson's license is held by and through the employing broker. To transfer, the salesperson must apply to the Commission for a transfer, pay the required fee, and receive written authorization from the new broker. The salesperson may NOT conduct licensed activity for the new broker until the transfer is approved.
5. The Pennsylvania Real Estate Recovery Fund provides compensation to members of the public who suffer financial losses caused by a licensed real estate professional's fraudulent or dishonest acts. What happens to the licensee's license upon a court-ordered payment from the Recovery Fund on their behalf?
- A. The license is placed on inactive status until the licensee repays the fund with interest
- B. The license is automatically suspended until the full amount paid plus interest is repaid to the fund ✓
- C. The licensee is required to complete 30 additional hours of education but may continue practicing
- D. The license is revoked permanently with no possibility of reinstatement
Under Pennsylvania RELRA, when the Real Estate Recovery Fund pays an amount on behalf of a licensee, the license is automatically suspended. The licensee may not be reinstated until the full amount paid from the fund has been repaid, with interest at 10% per year.
6. Which of the following persons is specifically EXEMPT from holding a Pennsylvania real estate license under RELRA when performing real estate activities?
- A. A salaried on-site property manager employed directly by the property owner to rent units in a single apartment complex ✓
- B. A mortgage broker who occasionally helps clients find rental properties for a referral fee
- C. An out-of-state licensee who advertises Pennsylvania properties on a national website
- D. A friend who negotiates a lease on behalf of a tenant and accepts a gift card as compensation
RELRA exempts employees of a property owner who manage property owned by that employer when the management duties are performed as part of their regular employment and they are not paid a separate commission. The other scenarios involve acting for others for compensation without the statutory employer exemption.
7. A Pennsylvania real estate broker's license requires completion of how many hours of pre-license education BEYOND the salesperson requirements, and a minimum period of active experience as a licensee?
- A. 60 additional hours and at least 1 year of active licensure as a salesperson
- B. 240 additional hours and at least 3 years of active licensure as a salesperson ✓
- C. 16 additional hours and at least 2 years of active licensure as a salesperson
- D. No additional education hours, but 5 years of active licensure as a salesperson
Pennsylvania broker applicants must complete a state-approved broker pre-license course of 240 hours (beyond what was required for the salesperson license) and must have been actively licensed as a salesperson or associate broker for at least 3 years. The other combinations do not match RELRA and SREC requirements.
8. A salesperson currently licensed in a state that has a reciprocity agreement with the Pennsylvania State Real Estate Commission applies for a Pennsylvania reciprocal salesperson license. Which of the following requirements applies to this applicant?
- A. The applicant must file a certification of licensure in good standing from the home-state licensing authority and an irrevocable consent to be sued in Pennsylvania courts for acts arising from Pennsylvania real estate activity. ✓
- B. The applicant must complete Pennsylvania's 75-hour prelicensing education and pass both the national and state portions of the Pennsylvania salesperson examination.
- C. The applicant may practice independently in Pennsylvania without being affiliated with a broker who holds a current Pennsylvania standard or reciprocal broker license.
- D. The applicant must surrender or allow the home-state salesperson license to lapse before the Pennsylvania reciprocal license can be issued.
Under the Real Estate Licensing and Registration Act, 63 P.S. § 455.602, and Commission regulations at 49 Pa. Code § 35.223, a salesperson holding a current license in a state with which Pennsylvania has a reciprocal agreement may obtain a reciprocal salesperson license without completing Pennsylvania prelicensing education or sitting for the Pennsylvania examination. Instead, the applicant must submit a certification (letter of good standing) from the home-state licensing authority, file an irrevocable consent that suits and actions may be commenced against the licensee in Pennsylvania, and be employed by a broker holding a current Pennsylvania standard or reciprocal broker license. The reciprocal license is contingent on the home-state license remaining current and in good standing, so surrendering it is not required and would actually jeopardize the reciprocal license. Option B describes the standard (non-reciprocal) path; option C is wrong because a salesperson can never practice without a supervising broker; option D contradicts the requirement to maintain the out-of-state license.
9. A Pennsylvania salesperson discovers that her license has lapsed because she failed to renew it on time. Under SREC rules, what is the consequence of continuing to perform licensed activities during the lapsed period?
- A. The licensee may continue working for 30 days past the expiration date under a grace period
- B. The licensee's employing broker absorbs liability, and the salesperson faces no personal penalty
- C. Performing licensed activities on a lapsed license constitutes unlicensed practice and may result in fines and disciplinary action against both the salesperson and the employing broker ✓
- D. The license is reinstated automatically once the renewal fees are paid, curing any violations retroactively
Under RELRA, practicing real estate without an active license — including during a lapsed renewal period — constitutes unlicensed practice. Both the salesperson and the broker who permitted the activity can face SREC disciplinary action, including fines. There is no automatic grace period or retroactive cure upon late payment.
10. The Pennsylvania State Real Estate Commission has the authority to impose which of the following disciplinary sanctions against a licensee found to have violated RELRA?
- A. Criminal imprisonment only; civil penalties must be imposed by a court of common pleas
- B. Revocation, suspension, probation, reprimand, fines, and required remedial education ✓
- C. License suspension only; fines and revocation require a separate action by the Attorney General
- D. Mandatory restitution payments to harmed parties, but no suspension or revocation
The SREC has broad administrative disciplinary authority under RELRA, including the power to revoke or suspend licenses, place licensees on probation, issue reprimands, impose civil administrative fines, and require remedial continuing education. The Commission does not impose criminal imprisonment (a court function), but it is not limited to only one sanction type.