Pennsylvania Real Estate Exam Topics: Complete Content Breakdown

Pennsylvania Exam Structure

The Pennsylvania real estate salesperson exam consists of 110 questions: 80 national and 30 state-specific. The passing score is 75% (83 correct). PSI administers the exam and the time limit is 3 hours.

National Section Content Areas

The 80-question national section tests universal real estate principles applicable across all states.

Property Ownership and Land Use Controls — Fee simple, life estate, leasehold interests, legal descriptions (metes and bounds, lot and block, rectangular survey), government powers (eminent domain, police power, taxation, escheat), zoning ordinances, deed restrictions, and CC&Rs.

Valuation and Market Analysis — Three approaches to value (sales comparison, cost, income), appraisal standards, market value vs. market price, comparative market analysis, gross rent multiplier, and depreciation methods.

Financing — Conventional, FHA, VA, and USDA loan types; mortgage components; LTV; DTI ratios; Truth in Lending Act (TILA); RESPA; promissory notes; mortgage vs. deed of trust states.

Contracts — Six essential elements, offer and acceptance, counteroffers, contingencies (financing, inspection, appraisal), earnest money, statute of frauds, breach and remedies.

Agency — Types (seller's, buyer's, dual, designated), fiduciary duties (OLDCAR), creation and termination, disclosure requirements, vicarious liability.

Property Disclosures — Material fact disclosure, lead-based paint disclosure (pre-1978 federal requirement), environmental hazards.

Leases and Property Management — Lease types, landlord-tenant rights, security deposits, property management agreements.

Transfer of Title — Deed types (general warranty, special warranty, grant, quitclaim), title insurance, closing procedures, ALTA settlement statements.

Fair Housing — Seven federal protected classes, prohibited acts, exemptions, enforcement, ADA and accessible design requirements.

Math — Commissions, prorations, loan payoff, appreciation/depreciation, cap rates, transfer tax calculations.

Pennsylvania State Section Content

The 30-question state section tests Pennsylvania-specific law and practice.

Real Estate Licensing and Registration Act (RELRA)

RELRA (63 P.S. § 455.101) is the foundational Pennsylvania real estate statute. It establishes the Pennsylvania Real Estate Commission (PREC) and sets requirements for licensing, conduct, and enforcement. All 30 state questions are influenced in some way by RELRA.

Pennsylvania Real Estate Commission (PREC)

PREC operates under the Bureau of Professional and Occupational Affairs (BPOA) within the Pennsylvania Department of State. It has 11 members: a mix of licensed real estate professionals, a mortgage representative, and public members. PREC sets education standards, approves courses, and disciplines licensees.

License Categories

Pennsylvania licenses are structured as: - Salesperson — entry-level; must work under a broker - Associate Broker — 3 years active salesperson experience + additional education - Broker — can operate independently and supervise others

Prelicense Education

Salesperson candidates must complete 75 hours of approved prelicense education. This is below the national average; Pennsylvania compensates through strong post-license and CE requirements.

Pennsylvania Seller's Disclosure Law

For residential properties of 1-4 units, sellers must complete the Seller's Disclosure Notice before or at the time of signing a purchase agreement. The seller completes the form — agents do not fill it out. Buyers receive the notice and have the right to rescind if a disclosure problem is discovered.

Pennsylvania Real Estate Transfer Tax

Pennsylvania imposes a 2% total transfer tax on real estate sales: 1% goes to the state and 1% goes to the local municipality. By custom it is split 50/50 between buyer and seller, but the allocation is negotiable and must be specified in the purchase agreement.

Pennsylvania Fair Housing

Pennsylvania's Human Relations Act adds protected classes beyond the federal seven: marital status, sexual orientation, and gender identity. All real estate transactions must comply with both state and federal fair housing law.

Mortgage State

Pennsylvania is a mortgage lien theory state, which means the borrower retains title and the lender holds a lien. Foreclosure in Pennsylvania is judicial — it requires a court proceeding, which makes it lengthier than non-judicial foreclosure in deed of trust states.

License Renewal and CE

Pennsylvania licenses renew every two years. Continuing education is 14 hours per renewal cycle, which must include required topics set by PREC.

For a complete Pennsylvania study guide, visit [CARealestate.com/states/pennsylvania](https://carealestate.com/states/pennsylvania).