Unit 3 - Vocab

Question 1

Two categories of complains about real estate

Answer 1

unlicensed individuals practicing real estate on the general public and licensed persons practicing real estate

Question 2

The Pennsylvania Licensing and Registration Act provides for penalties if a person:

Answer 2

-Holds himself out as a licensed salesperson, etc., within the Commonwealth without a current real estate license;
-Employs a person who is acting as a salesperson but does not have a license;
-Advertises as a licensee.

Question 3

If a person or entity is found guilty of unlicensed persons conducting real estate activities

Answer 3

-1st offense is a fine not to exceed $500 or suffer imprisonment for not more than three months;
-2nd or subsequent offense, is guilty of a felony of the third degree

Question 4

Attorney-in-fact

Answer 4

is a competent person acting for another under the power of attorney, carrying with it the responsibilities of a fiduciary. It is not necessary to be an attorney to be an attorney-in-fact

Question 5

Power of Attorney

Answer 5

A legal document which is signed and notarized for the express purpose of representing another to the extent indicated in the document

Question 6

Comparative Market Analysis

Answer 6

a written analysis relating to the probable sale price of a specified piece of property in an identified real estate market at a specified time.

Question 7

commingling

Answer 7

is placing other people’s money into a personal or operating account of the broker. it is expressly FORBIDDEN

Question 8

nolo contendere

Answer 8

this plea does not indicate guilt or innocence on the part of the defendant.

Question 9

complainant

Answer 9

person making the complaint to a licensing group such as the Pennsylvania Real Estate Commission

Question 10

Order to Show Cause

Answer 10

court-ordered appearance to present to the court reasons why an order should not be confirmed. In this case, it applies to any penalties directed by the PA Real Estate Commission

Question 11

Respondent

Answer 11

the person answering the charges brought to the complaints office

Question 12

Final Adjudications, Orders and Commission-approved Orders usually represent disciplinary actions of some sort against a licensee or an unlicensed person. The commission, upon the proper hearings and due process may issue:

Answer 12

Reprimand, suspension, revocation, fines

Question 13

Reprimand

Answer 13

by letter, becoming a permanent part of the licensee’s record

Question 14

Suspension

Answer 14

temporary loss of license for a stated time period.

Question 15

Revocation

Answer 15

a permant loss of license, although a person may apply after 5 years for reinstatement

Question 16

Real Estate Recovery Act

Answer 16

it’s purpose is to provide relief and compensation for any aggrieved person who has been victim in a real estate transaction

The grounds for receiving this judgment are
-Fraud
-Misrepresentation
-Deceit in a real estate transaction

Question 17

Aggrieved person

Answer 17

a person who has suffered loss or injury or whose rights were violated.

The aggrieved person shall be required to show:

-That he is not a spouse of the debtor or the personal representative of the said spouse;
-That he has obtained a final judgment as set out in this section
-That all reasonable personal acts, rights of discovery and other remedies at law and in equity as existed have been exhausted in the collection;
-That he is making the application no more than one year after the termination of the proceedings, including reviews and appeals in connection with the judgment.

Question 18

The Commission, with a minimum of five member votes, can assess an additional civil penalty of up to $1000 per offense:

Answer 18

-On any current licensee who violates provisions of the Act
-On any person practicing real estate without being properly licensed to do so under the Act.

Question 19

Who does not need a PA Real Estate License:

Answer 19

-An owner selling or leasing his own property. Employees of the corporation or partnership are not excluded.
-An employee of a public utility company performing utility work.
-An attorney-in-fact working as an attorney and receives fees as an attorney, not as a real estate broker.
-An attorney-in-fact, who is acting under the power of attorney, provided this is not used to avoid the law.
-A trustee, administrator, executor, or guardian who is acting under the authority of a court order, will or trust instrument;

Question 20

Licensees are prohibited from:

Answer 20

-Failing to maintain proper escrow accounts, records of accounts, commingling money;
-Failing to preserve for three years following its consummation records relating to any real estate transaction;
-Acting for more than one party in a transaction without the knowledge and consent in writing of all parties for whom he acts;
-Advertising property without the written consent of the owner; Failing to voluntarily furnish a copy of any contract relevant to all signatories at the time of execution

Question 21

The Real Estate Commission will not become involved in disputes over monetary disputes unless…

Answer 21

it involves an allegation that services were billed for, but were not rendered or that the person billing is not a licensed real estate professional.

Question 22

When the court orders the judgment to be paid, the liability of the fund shall not exceed. ____ for any one claim and shall not exceed ___ per licensee.

Answer 22

$20,000 / $100,000

Question 23

That licensee remains on suspension until the Fund is ____________________.

Answer 23

repaid plus 10% interest per year.