Pennsylvania License Law
A Pennsylvania broker advertises 'zero commission' to attract sellers. Under RELRA, what must the broker disclose about their compensation?
ANothing — brokers may advertise any compensation structure they choose
BThe broker must disclose how they will be compensated (e.g., buyer-paid fee, reduced rate, referral fee) if any compensation is expected✓ Correct
CZero commission advertising is prohibited by PREC as deceptive
DThe broker must provide a refund guarantee in writing
Explanation
RELRA requires licensees to disclose all compensation arrangements to clients. If a broker advertising 'zero commission' is actually receiving compensation from another source (buyer-paid fee, developer incentive, reduced-service model), that must be disclosed. Advertising cannot mislead consumers about the true cost of services. PREC enforces truthfulness in all real estate advertising in Pennsylvania.
Related Pennsylvania Pennsylvania License Law Questions
- What is the 'Real Estate Recovery Fund' administered by PREC, and who may make a claim against it?
- A Pennsylvania real estate licensee who wishes to operate under a 'team name' must ensure the team name:
- A Pennsylvania broker who allows their license to expire while continuing to manage properties is:
- A Pennsylvania broker's license allows the holder to:
- What is the 'CE Requirements for First Renewal' for a new Pennsylvania real estate salesperson?
- Under RELRA, a Pennsylvania licensee must disclose their license status when:
- Under Pennsylvania law, who may collect a real estate commission?
- Under RELRA, what happens if a Pennsylvania salesperson changes employing brokers?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →