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30 Hour Class - Chapter 1: PA Law Exam > Review > Flashcards

Review Flashcards

1
Q

Real estate is more than land; it is the accumulation of rights and items attached to the land such appurtenances. Real estate in the United States is owned by the ___ ____ and contains with its transfer the ___ _ ___

A

allodial system; bundle of rights.

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1
Q

Section ___. Prohibited Acts of the Act. lists various prohibited acts.

A

604

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2
Q

Real estate also has economic characteristics which give real estate value. This is known by the abbreviation of ______

A

D.U.S.T.S.

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3
Q

Physical characteristics are

A

immobility, indestructibility and nonhomogeneity.

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4
Q

Any conduct in a real estate transaction which demonstrates ______________________ will result in a loss of license.

A

bad faith, dishonesty, untrustworthiness, or incompetency

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5
Q

Real estate complaints are handled by the _____, a division of the Pennsylvania Department of State on behalf of the Commission.

A

Complaints Office

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6
Q

After completion of the investigation, the complaint is referred to the prosecuting attorney to determine if there is probable cause. If there is enough evidence for a case, the prosecuting attorney initiates action by preparing an _______

A

Order to Show Cause.

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7
Q

The respondent files an answer within ____ and a hearing is scheduled. Either party may file a ___________ which will resolve the issue without a public hearing.

A

30 days;Consent Agreement and Order

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8
Q

The ______is the formal conclusion to the complaint procedure and it spells out the disciplinary action taken by the Commission.

A

Final Decision

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9
Q

The most important criteria in obtaining a Pennsylvania Real Estate License is to have a good reputation for _____________________. The Commission also requires that an applicant give written consent for process serving if necessary.

A

honesty, trustworthiness, integrity, and competence

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10
Q

Pennsylvania real estate currently has eight licenses that can be issued by the Department of State. These are:

A

-Salesperson
-Rental Listing Referral Agent
-Cemetery Salesperson
-Builder/Owner Salesperson
-Campground Membership Salesperson
-Time Share Salesperson
-Broker
-Cemetery Broker

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11
Q

The definition of a salesperson is clearly defined and anyone who serves as a salesperson must be licensed and ___________________

A

under the direct supervision of a broker.

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12
Q

The Statement of Record required for Promotional Land Sales must include the following:

A

-The name and address of each person having an interest in the property covered by the statement of record and the extent of such interest except for a corporation which must list all officers and all holders of 10% or more of the issued stock of the corporation;
-A legal description of the property and a statement of the topography with a map showing the division proposed and the dimensions of the property and their relation to existing streets and roads;
-A statement of the condition of the title to the property including all encumbrances, mortgages, judgments, liens or unpaid taxes, deed restrictions and covenants;
-A statement of the general terms and conditions including the range of sale prices or rents proposed;
-A statement of the present condition of access to the property, any unusual conditions relating to safety and completed improvements including such things as streets, sidewalks etc. and any improvements to be installed by the developer and an estimation of the schedule of completion;
-A statement of any encumbrances such as liens against the property;
-A copy of the articles of incorporation;
-Copies of deeds or other legal instruments establishing title to the property;
-Copies of all forms of conveyances (such as deeds) to be used;
-Copies of legal papers creating easements and other restrictions;
-A certified financial statement from the developers;
Information that the Commission may require to determine that prospective buyers will receive truthful information;
-Consent to submit to the jurisdiction of the Commonwealth courts.

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13
Q

Licensees in Pennsylvania are required to renew their real estate licenses _______________

A

every two years of even-numbered years

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14
Q

A license that is not renewed automatically becomes ____ and is held in escrow by the Commonwealth until the licensee renews or drops the license. A person with an inactive license may __ practice any type of real estate activity for a fee for others.

A

inactive;not

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15
Q

For licensees that do require continuing education, ____ are required of licensees to renew.

A

14 hours

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16
Q

Registration of Land Proomotional Companies requires filing a ________with mandatory items with the Commission.

A

Statement of Record

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16
Q

All agreements between broker and principal, or broker and consumer must be in _____

A

writing

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16
Q

It is the responsibility of the ____ to deposit the money in an escrow (trust) account until the money can be used for closing, or paid out for bills.

A

broker

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16
Q

When a _______ dies, the estate of the broker must notify the Commission within 15 days of the broker’s death. The estate must tell the Commission what new broker has been appointed to provide termination of the deceased broker’s business. No new listings are permitted and all current listings will expire automatically after _______

A

sole proprietor broker;90 days.

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16
Q

When a sole proprietor becomes seriously ill or incapacitated, the broker’s attorney must notify the Commission with _____ that another broker will act in the ill broker’s behalf until the regular broker is able to assume his work.

A

15 days

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16
Q

When a _______ dies, a corporate officer must notify the Commission of the change within ____ of the death and state who will be the new broker of record.

A

broker of record;15 days

17
Q

The ___ of the brokerage company must be used in all ads;

A

name

17
Q

Escrow money must be in an account by itself. No operating or rent funds can be deposited in this fund. No advance fees can be placed in this account. Each associate broker or salesperson must give money ________ to put into the account and the broker must deposit the money____

A

promptly; immediately.

18
Q

Generally, the escrow money is placed in a non-interest bearing account. If, however, the account will be held longer than _____, the broker is encouraged to seek an ___________ with a clear understanding of who will receive the funds, except the broker who is not allowed to collect interest.

A

six months ; interest-bearing account

19
Q

Brokers have many relationships in the pursuit of the brokerage business.

One of the relationships is with a broker’s own salespeople and associate brokers. This should be a relationship of _________

A

utmost trust

20
Q

All business is done in the name of the broker. The salespeople and associate brokers work as independent contractors or as employees. In either case, the salespeople and associate brokers must be actively supervised and trained by the broker (broker of record). The salesperson or associate broker is called a ______ of the employing broker.

A

fiduciary

21
Q

The __________ defines the relationship between a broker and his principal. When a broker signs a written authorization with a seller, buyer, landlord, tenant or time-share consumer, the broker becomes an agent, meaning he represents that person in a transaction. As an agent, the broker has fiduciary responsibilities to the person represented- the principal.

A

Law of Agency

22
Q

Disclosure must be made at the _________ which is the first contact between the licensee and the consumer of real estate services where a substantive discussion about real estate occurs.

A

initial interview

23
Q

The disclosure form, ______, is provided for licensees by the Commission and contains many important parts. Each prospective licensee should be completely familiar with the ________.

A

Consumer Notice ; Consumer Notice

24
Q

A _____________ represents the best interests of the seller/landlord. The broker who is the seller’s agent must keep confidentiality except where there are material defects about the property.

A

seller’s/landlord agent

25
Q

A ______ is a co-broker from another agency who is working for the seller/landlord just as the seller’s agent is. The subagent must follow all the same responsibilities to the seller as a seller’s agent and must make everyone aware of his position through disclosure.

A

subagent

26
Q

A __________ represents the best interests of the buyer/tenant

A

buyer’s agent

27
Q

A ________ represents the best interests of the seller/landlord and buyer/tenant, simultaneously. THIS MUST BE DISCLOSED

A

dual agent

28
Q

A ________ represents one party in a transaction while another agent in the same firm represents the other party, both of these under the direction and care of a dual agent broker. The broker has the responsibility to direct and supervise the business activities of his designated agents and the broker owes duties to both the seller/landlord and buyer/tenant as a dual agent.

A

designated agent

29
Q

A ________ owes no party any loyalty and can only provide limited confidentiality. Notice this relationship is not an agency relationship with either buyer or seller!

A

transaction licensee

30
Q

A ________ is an agreement between the seller and the buyer to buy a property

A

sales contract

31
Q

All essentials of the statute of frauds must be included in a sales contract:

A

-the names of the parties,
-date of the agreement,
-sale price,
-property description,
-dates for payment, and,
-method of conveyance.
-If a contingency clause is inserted for the buyer to obtain financing, the type of mortgage, the mortgage principal, the maximum interest rate of the mortgage, the deadline for obtaining the mortgage and a statement of how the broker will help the buyer get the loan must be included.

32
Q

A ________________________ must be prepared by the broker before a sales contract is completed. These must be prepared for the buyer or seller, whoever the broker represents, or both. These statements must be as accurate as can be expected of a real estate professional.

A

Statement of Estimated Cost and Return

33
Q

An_____________ is either an exclusive listing agreement or an exclusive right to sell.

A

Exclusive Listing agreement

34
Q

An Exclusive Listing agreement is either an exclusive listing agreement or an exclusive right to sell. The agreement between the broker and the seller/lessor must include the key elements of:

A

-Sale price;
-The commission, fee or compensation;
-Duration of agreement;
-A statement on right-to-sell that the broker gets paid his commission no matter who sells the property;
-A statement on right-to-lease that the broker gets paid his commission no matter who leases the property.

35
Q

An Exclusive Listing Agreement may not contain:

A

-A listing period of more than one year;
-An automatic renewal clause;
-A cancellation notice requirement to end the listing;
-Authority granted to the broker to sign for the seller/lessor;
-Authority of the broker to confess judgment against the owner in the event of a sale or lease.

36
Q

__________________________must allow for the purchaser’s right to cancel and include a disclosure to that effect. The purchaser has until midnight on the 5th day following the date on which he executed the purchase contract to cancel.

A

Time Share and Campground membership contracts

37
Q

A _____________ is an analysis of homes that were sold, are pending or withdrawn in specific neighborhoods that compare to a seller’s home.

A

Comparative Market Analysis

38
Q

A _________________ must include a statement which says to the prospective tenant that this is a service and does not include a guarantee.

A

Rental Listing Referral Agreement

39
Q

The Pennsylvania Human Relations Act:

In Pennsylvania it is illegal to discriminate on the protected classes of:

A

Race,
Color,
Familial status,
Religious creed,
Ancestry,
Handicap or disability,
Age,
Sex,
National Origin,
User of a guide or support animal because of blindness, deafness or physical handicap of user,
Trainer of support or guide animals.

Commercial as well as residential real estate is included under this law.

40
Q

A definition of handicap or disability means: _____________________________ The term does not include use of or addiction to a controlled substance.

A

a physical or mental impairment which substantially limits one or more of such person’s major life activities; or having a record of such impairment; or being regarded as having such an impairment.

41
Q

A definition of familial status means: ___________________

A

one or more persons who have not attained the age of eighteen being domiciled with a parent or other person having legal custody of such individuals; or the designee of such parent or other person having such custody, with the written permission of such parent; or any person who is pregnant or is the process of securing legal custody of a minor.

42
Q

It is unlawful for real estate licensees to discriminate in housing, whether residential or commercial, evict an occupant because of _______________ when they are a member of the protected class.

A

pregnancy, and refuse to lend money or discriminate against any person in selling or leasing housing accommodation

43
Q

Pennsylvania differs from the federal Fair Housing acts in that:

A

-The “up-to-four” units under federal law does not apply unless the building has a common entrance or is a single-sex dorm;
-Commercial real estate is included; there is no exemption;
-The owning of no more than three single-family homes in one year exemption is not permitted in Pennsylvania.

44
Q

To accompany the way a broker may pay salespeople or associate brokers, a new definition has been added to section 201 of the RELRA: The term is “___________. This is a corporation, limited liability partnership, limited partnership or limited liability company that is incorporated or otherwise organized under the laws of the Commonwealth or another jurisdiction

A

“qualified association”

45
Q

Qualified Associations may not

A

-Possess any real estate licenses, OR
-Hold itself out to the public as providing real estate or real estate related services.

46
Q

Escrow account requirements found Section 604(a)(5) of RELRA. are moved to a new Section 608.5. The most significant change involves when a broker may release escrow funds. Currently the law allows a broker to release for____________

A

(a) consummation of the transaction or (b) termination of the transaction with no dispute or (c) a court order.

30 Hour Class - Chapter 1: PA Law Exam (23 decks)

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