PA REAL ESTATE SALESPERSON EXAM
STATE PORTION 2026 FINAL PAPER
QUESTIONS AND ANSWERS VERIFIED
GRADED A+
⩥ The Pennsylvania State Real Estate Commission's Rules and
Regulations require that a real estate broker representing a party to a
transaction must ensure that all contracts are in writing.
Answer: Statute of Frauds
⩥ State law limits the time within which parties to a contract may bring
legal suit to enforce their rights. In Pennsylvania, it is four years from
the date the contract is breached. Any rights that are not enforced within
the applicable time period are lost.
Answer: Statute of Limitations
⩥ Penalty for providing legal advice unless properly licensed to do so
Answer: Up to one-year imprisonment and a $2,500 fine. Also, the State
Real Estate Commission can take disciplinary action against licensees
who provide legal advice, resulting in a fine, or the suspension or
revocation of a license. Finally, a party who is injured by the advice can
file a lawsuit, which can result in an award of monetary damages against
the individual who provided that advice.
,⩥ Plain Language Consumer Contract Act in Pennsylvania
Answer: Intends to protect consumers from making contracts they do not
understand by promoting the use of plain language. Agreements that
must be written in plain language include contracts in which a consumer
-borrows money;
buys, leases, or rents personal property or real property; and
-engages services for cash or on credit for personal, family, or household
purposes.
Any creditor, lessor, or seller who does not comply with the tests of
readability (as defined by the law) is liable to the consumer for any loss
caused by the violation, statutory damages of up to $100, court costs,
and attorney fees
⩥ Give legal effect to agreements bargained for electronically, as long as
they meet all other provisions of contract law.
Answer: Electronic Transaction Act enacted in January 2000
⩥ Mortgage bankers and mortgage brokers must be licensed and conduct
business in accordance with the Mortgage Bankers and Brokers Act
Answer: The Department of Banking issues these licenses and governs
the licensees' activities, with the State Real Estate Commission also
having certain limited authority when these individuals are licensed real
estate brokers and salespersons as well.
⩥ Intermediary theory
, Answer: A hybrid philosophy that is based on the principles of title
theory but, like the principles of lien theory, requires that the mortgagee
foreclose to obtain legal title.
⩥ Prepayment
Answer: Lenders are not permitted to charge prepayment penalties on
mortgage loans insured or guaranteed by the federal government. In
addition, Pennsylvania law does not permit prepayment penalties on
residential mortgage loans when the principal amount is $50,000 or less.
Otherwise, lenders can include in the note whatever penalty conditions
they choose
⩥ This program was created during the early 1980s when workers faced
the loss of their homes after losing their jobs in the demise of the steel
industry. The program provides counseling and loans to help people pay
delinquent mortgage loans. In some cases, people may qualify for
continuing monthly payment assistance for up to 24 months
Answer: Homeowner Emergency Assistance Program (HEMAP).
⩥ If it appears from evidence at a hearing that the employing broker had
actual knowledge of a violation or permitted a course of dealing that
violates the law, the Commission may suspend or revoke the employing
broker's license or levy a fine.
Answer: Discipline against a broker
STATE PORTION 2026 FINAL PAPER
QUESTIONS AND ANSWERS VERIFIED
GRADED A+
⩥ The Pennsylvania State Real Estate Commission's Rules and
Regulations require that a real estate broker representing a party to a
transaction must ensure that all contracts are in writing.
Answer: Statute of Frauds
⩥ State law limits the time within which parties to a contract may bring
legal suit to enforce their rights. In Pennsylvania, it is four years from
the date the contract is breached. Any rights that are not enforced within
the applicable time period are lost.
Answer: Statute of Limitations
⩥ Penalty for providing legal advice unless properly licensed to do so
Answer: Up to one-year imprisonment and a $2,500 fine. Also, the State
Real Estate Commission can take disciplinary action against licensees
who provide legal advice, resulting in a fine, or the suspension or
revocation of a license. Finally, a party who is injured by the advice can
file a lawsuit, which can result in an award of monetary damages against
the individual who provided that advice.
,⩥ Plain Language Consumer Contract Act in Pennsylvania
Answer: Intends to protect consumers from making contracts they do not
understand by promoting the use of plain language. Agreements that
must be written in plain language include contracts in which a consumer
-borrows money;
buys, leases, or rents personal property or real property; and
-engages services for cash or on credit for personal, family, or household
purposes.
Any creditor, lessor, or seller who does not comply with the tests of
readability (as defined by the law) is liable to the consumer for any loss
caused by the violation, statutory damages of up to $100, court costs,
and attorney fees
⩥ Give legal effect to agreements bargained for electronically, as long as
they meet all other provisions of contract law.
Answer: Electronic Transaction Act enacted in January 2000
⩥ Mortgage bankers and mortgage brokers must be licensed and conduct
business in accordance with the Mortgage Bankers and Brokers Act
Answer: The Department of Banking issues these licenses and governs
the licensees' activities, with the State Real Estate Commission also
having certain limited authority when these individuals are licensed real
estate brokers and salespersons as well.
⩥ Intermediary theory
, Answer: A hybrid philosophy that is based on the principles of title
theory but, like the principles of lien theory, requires that the mortgagee
foreclose to obtain legal title.
⩥ Prepayment
Answer: Lenders are not permitted to charge prepayment penalties on
mortgage loans insured or guaranteed by the federal government. In
addition, Pennsylvania law does not permit prepayment penalties on
residential mortgage loans when the principal amount is $50,000 or less.
Otherwise, lenders can include in the note whatever penalty conditions
they choose
⩥ This program was created during the early 1980s when workers faced
the loss of their homes after losing their jobs in the demise of the steel
industry. The program provides counseling and loans to help people pay
delinquent mortgage loans. In some cases, people may qualify for
continuing monthly payment assistance for up to 24 months
Answer: Homeowner Emergency Assistance Program (HEMAP).
⩥ If it appears from evidence at a hearing that the employing broker had
actual knowledge of a violation or permitted a course of dealing that
violates the law, the Commission may suspend or revoke the employing
broker's license or levy a fine.
Answer: Discipline against a broker
