Pennsylvania Real Estate Practice Exam
(Free Questions & Answers)

Explanation

The Pennsylvania State Real Estate Commission, operating under the Bureau of Professional and Occupational Affairs, licenses and regulates real estate brokers, salespersons, cemetery brokers, rental listing referral agents, and campground membership salespersons.

Explanation

Pennsylvania law requires licensees to provide the Consumer Notice to prospective buyers or sellers at the first contact, before any real estate services are provided. This form discloses the different types of agency available in Pennsylvania.

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A listing agreement is a contract between the property owner (seller) and the listing broker. It establishes the broker's authority to market and sell the property and specifies the broker's compensation.

Explanation

TRID replaced the HUD-1 Settlement Statement with the Closing Disclosure for most closed-end mortgage transactions. The Closing Disclosure provides a final accounting of all loan terms and closing costs and must be provided 3 business days before closing.

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Joint tenancy requires four unities: time (acquired at the same time), title (by the same instrument), interest (equal shares), and possession (equal right to possess the whole). Without all four unities, a joint tenancy may not be valid.

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The cost approach estimates value by calculating: land value + cost new of improvements − accrued depreciation. It is most useful for unique properties, new construction, and special-purpose buildings where sales comparables are limited.

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The Pennsylvania Human Relations Act (PHRA) prohibits housing discrimination and adds additional protected classes to those in the federal Fair Housing Act, including ancestry and age (over 40 in employment contexts, with some housing protections as well).

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In Pennsylvania, closings are typically handled by a title insurance company, settlement company, or attorney. These professionals conduct the settlement, ensure all documents are properly executed, and disburse funds according to the settlement statement.

Explanation

Total transfer tax: $425,000 × 0.02 = $8,500. Seller's share (50%): $8,500 ÷ 2 = $4,250. To solve this, multiply the relevant values: $425,000 at 2%.. The correct answer is $4,250.. This is a common calculation on the Pennsylvania real estate exam.

Explanation

Pennsylvania's Sewage Facilities Act (Act 537) requires municipalities to maintain official sewage facilities plans and ensures that new land developments have adequate sewage disposal. Municipalities must approve plans for new development that includes sewage systems.

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A nonconforming use is one that was legally established under prior zoning regulations but no longer conforms after a zoning change. These uses are typically allowed to continue (grandfathered) but cannot be expanded and must be discontinued if abandoned.

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Pennsylvania landlords may deduct from the security deposit only for actual damages beyond normal wear and tear and for unpaid rent. Normal wear and tear (minor scuffs, gradual carpet wear) is the landlord's responsibility and cannot be charged to the tenant.

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Pennsylvania requires 75 hours of pre-license education for a salesperson license, consisting of a 30-hour Real Estate Fundamentals course and a 45-hour Real Estate Practice course, completed at a Commission-approved school.

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The duty of confidentiality requires the agent to keep confidential all information the buyer client asks to be kept confidential, unless disclosure is required by law. This duty survives the termination of the agency relationship.

Explanation

A mortgage (financing) contingency allows the buyer to terminate the contract and recover their earnest money if they are unable to obtain financing that meets the terms specified in the contract — such as a certain loan amount, interest rate, or loan type.

Explanation

A hybrid ARM has a fixed interest rate for an initial period (e.g., 5, 7, or 10 years) and then converts to an adjustable rate that resets periodically based on a market index plus the lender's margin. Common examples are 5/1 ARMs and 7/1 ARMs.

Explanation

A condominium owner holds a fee simple interest in their individual unit (generally from wall to wall) plus an undivided fractional interest in the common elements (hallways, parking areas, amenities, etc.) shared with other unit owners.

Explanation

A CMA is a price opinion prepared by a real estate licensee to assist sellers or buyers in pricing decisions. An appraisal is a formal, independent opinion of value prepared by a licensed or certified appraiser and required by lenders for mortgage financing.

Explanation

The Fair Housing Act requires housing providers to make reasonable accommodations in rules, policies, practices, or services when necessary for a person with a disability to have equal opportunity to use and enjoy the housing. Refusing a reasonable accommodation is a violation.

Explanation

The chain of title is the chronological sequence of ownership transfers — the history of all deeds, conveyances, and encumbrances recorded for a specific parcel of real estate. A clear chain of title is essential for marketable title.

Explanation

Sale price: $350,000 × 0.97 = $339,500. Buyer's agent commission: $339,500 × 0.025 = $8,487.50. To solve this, multiply the relevant values: $350,000 at 97%.. The correct answer is $8,487.50.. This is a common calculation on the Pennsylvania real estate exam.

Explanation

Under the Residential Lead-Based Paint Hazard Reduction Act (Title X), sellers and landlords of housing built before 1978 must disclose known lead-based paint hazards and provide buyers/tenants with the EPA pamphlet 'Protect Your Family from Lead in Your Home.'

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A variance is an exception to the strict application of zoning regulations, granted when a property owner demonstrates unique hardship due to the specific characteristics of their property that are not self-created. There are area variances (dimensional) and use variances.

Explanation

Pennsylvania's Landlord and Tenant Act limits residential security deposits to two months' rent during the first year of a tenancy and one month's rent from the second year forward. Excess deposits must be returned to the tenant.

Explanation

The Pennsylvania real estate salesperson exam contains 110 questions (80 national and 30 state). A minimum score of 75% is required to pass. The exam is administered by a Commission-approved testing vendor.