Real Estate Licensing Law Flashcards
(32 cards)
What PA law regulates the real estate industry?
The Real Estate Licensing & Registration Act of 1980 (RELRA)
**What is the main purpose of real estate licensing law?
To ensure that the rights of purchasers, sellers, tenants and landlords are protected from unscrupulous or sloppy practices.
What is the composition of the State Real Estate Commission?
- Commissioner of the Bureau of Professional and Occupational Affairs
- Director of the Bureau of Consumer Protection
- 3 Members of the public at large
- 5 Members licensed as Real Estate Brokers
- 1 Member licensed as a Cemetery Broker
What 2 bodies of law regulate PA’s Real Estate industry?
1) RELRA. (Real Estate Licensing and Registration Act)
2) State Real Estate Commission Rules & Regulations
How are commission members appointed?
Commissioners are appointed by the governor and confirmed by the senate for 5-year terms.
Which PA government body grants Real Estate Licenses?
PA Department of State
How are commissioners paid?
On a per diem basis.
Broker of Record (Employing Broker)
The individual BROKER responsible for the real estate transactions of a partnership, association, or corporation licensed as a broker.
What is a broker?
A broker is an individual or entity who, in exchange for a fee, commission or other valuable consideration, performs one or more of the following acts for another person (or entity):
1) NEGOTIATES OR AIDS IN LOCATION OF OR ACQUISITION OF ANY INTEREST IN REAL ESTATE
2) NEGOTIATES LISTING, FINANCIAL TRANSACTIONS AND OPTIONS FOR REAL ESTATE
3) MANAGES REAL ESTATE
4) ACTS AS A REAL ESTATE CONSULTANT, COUNSELOR, AGENT OR HOUSE FINDER
5) UNDERTAKES TO PROMOTE SALE, EXCHANGE, PURCHASE, OR RENTAL OF REAL ESTATE
6) UNDERTAKES TO PERFORM A COMPARATIVE MARKET ANALYSIS
7) ATTEMPTS TO PERFORM ANY OF THESE ACTS
**What are the requirements to be a broker?
1) Be 21 or older
2) Have High School Diploma or equivalent
3) Complete 240 hours of instruction beyond salesperson license
4) Be a real estate licensee for 3 years 5) Have experience or education commensurate with 3 years of experience (earned on point system)
6) Pass broker’s examination within 3 years of application
7) Submit written application with DBA, business address and references
Associate Broker
An individual who has met the BROKER license requirements but is employed by a BROKER OF RECORD.
Salesperson
An individual employed by a licensed BROKER OF RECORD to do one or more of the following:
1) SELL OR OFFER TO SELL REAL ESTATE
2) BUY OR OFFER TO BUY REAL ESTATE
3) NEGOTIATE PURCHASE, SALE OR EXCHANGE OF REAL ESTATE
4) NEGOTIATE A LOAN ON REAL ESTATE
5) LEASE OR RENT REAL ESTATE OR OFFER TO LEASE OR RENT REAL ESTATE
6) COLLECT, OFFER OR ATTEMPT TO COLLECT RENT for the use of real estate
7) ASSIST A BROKER IN MANAGING PROPERTY
8) PERFORM A COMPARATIVE MARKET ANALYSIS
**What activities must be performed by real estate licensees?
Activities involving the public that are customary in selling real estate.
What are the 6 things a Real Estate Salesperson can do?
1) PURCHASE
2) EXCHANGE
3) RENT
4) SELL
5) OFFER
6) NEGOTIATE
Supervised Property Manager
Any real estate licensee involved in property management activities. Licensee must be directly supervised and controlled by the employing broker.
**Which activities do not have to be affiliated with a broker?
1) Builder-Owner Salesperson
2) Rental Listing Referral Agent
**Which activities do not require a licensee examination?
1) Campground Membership Salesperson
2) Time-Share Salesperson
**What types of people can sell real estate in PA without a license?
1) OWNERS OF REAL ESTATE
2) EMPLOYEES OF A PUBLIC UTILITY
3) OFFICERS OR EMPLOYEES OF A MINERAL RESOURCES OR ENERGY COMPANY
4) AN ATTORNEY-IN-FACT
5) A PERSON ACTING UNDER AUTHORITY OF COURT ORDER, WILL OR TRUST INSTRUMENT
6) ELECTED OFFICER OR DIRECTOR OF ANY BANKING OR TRUST INSTITUTION OPERATING UNDER LAW INVOLVING PROPERTY OWNED BY THESE INSTITUTIONS
7) A CEMETERY OFFICER OR EMPLOYEE SHOWING LOTS WITHOUT COMPENSATION
8) AN AUCTIONEER
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**Who issues real estate licenses in PA?
Department of State
**How does a license become inactive and how long can it stay in escrow?
When an individual relinquishes it into ESCROW. It can be placed in ESCROW for 5 years.
What state body is empowered to suspend or revoke licenses?
The State Real Estate Commission via the Bureau of Professional and Occupational Affairs.
**What type of complaints are investigated by the Bureau of Professional & Occupational Affairs?
1) Any violations from routine inspections
2) Any complaints
**If a broker loses a license, what must you do?
Cease all license activity.
**What is dual agency under the Real Estate Licensing & Registration Act (RELRA)
Acting for more than one party in a transaction without the knowledge of consent in writing from all parties.
