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. How many hours of continuing education must a Pennsylvania real estate salesperson complete during each two-year license renewal period?
- A. 12 hours, with no mandatory topic requirements
- B. 14 hours, including required modules on ethics and fair housing
- C. 14 hours, with at least 2 hours in mandatory real estate law topics ✓
- D. 16 hours, including at least 4 hours of ethics
Pennsylvania real estate salespersons must complete 14 hours of Commission-approved continuing education during each two-year renewal period. The Commission sets mandatory topic requirements for each cycle; state law does not generally describe the requirement as fixed ethics and fair housing modules, and ethics is commonly a REALTOR association requirement rather than a Pennsylvania license-renewal requirement.
3. A Pennsylvania salesperson candidate who fails the state licensing examination may reapply to retake it. Under SREC rules, what limitation applies?
- A. There is no limit on retakes, but a 30-day waiting period applies after each failure ✓
- B. The candidate may retake the exam up to three times before being required to repeat the pre-license course
- C. The candidate must wait one full year before any retake is permitted
- D. The candidate forfeits eligibility permanently after two failures
Pennsylvania does not impose a three-attempt cap requiring a salesperson candidate to repeat pre-license education after three failures. A candidate may retake the failed exam portion, subject to the exam vendor's scheduling/reapplication rules and the applicable eligibility or education-validity period; there is no one-year bar or permanent forfeiture after failures. None of the listed options states this perfectly if the 30-day waiting period is asserted as a Pennsylvania rule.
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. Under Pennsylvania law, which of the following is TRUE regarding a reciprocal (out-of-state) real estate license applicant seeking a Pennsylvania salesperson license?
- A. Pennsylvania offers full automatic reciprocity with all U.S. states; no exam is required
- B. Pennsylvania has reciprocal agreements with certain states and may waive the state exam for qualifying applicants, but applicants must still meet Pennsylvania's education and background requirements ✓
- C. Out-of-state licensees must always complete the full Pennsylvania pre-license course before applying
- D. Reciprocity is available only to applicants from states that border Pennsylvania
Pennsylvania has reciprocal licensing agreements only with specific states, not all states and not only bordering states. A qualifying out-of-state salesperson applicant generally may obtain a Pennsylvania reciprocal license without completing Pennsylvania prelicensure education or taking the Pennsylvania licensing examination, but must satisfy the reciprocal application requirements, including licensure in good standing, required documentation, fees, and background/criminal history requirements.
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.