PRES Pennsylvania Real Estate Salesperson Examination - Set 5 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: A buyer asks a licensee to draft a custom contract clause and advise whether holding title as joint tenants is legally best. What should the licensee do?

Draft the clause and advise

Prepare a deed instead

Refer the buyer to an attorney

Decide the title form alone

Question 2: A licensee receives questions about the tax consequences of a sale that fall outside real estate expertise. What is the professional duty here?

Refer the client to a tax professional

Give a confident tax opinion

Guess based on experience

Ignore the question

Question 3: A licensee in the ordinary course of a transaction wishes to complete a standard pre-printed agreement of sale. Is this permitted?

No, only attorneys may

Yes, but only the broker may

Yes, filling in form blanks is allowed

No, it is practicing law

Question 4: Pennsylvania requires a listing agreement to contain a feature that protects the seller from an open-ended commitment. Which feature is this?

A net price clause

An automatic renewal

A dual-agency consent

A definite termination date

Question 5: A salesperson holds out genuine competence in structural engineering and gives an opinion that proves wrong, harming the client. What risk does this create?

Liability for negligence or misrepresentation

No risk, opinions are free

Automatic license revocation

A tax penalty

Question 6: A seller wants the listing broker to earn a commission if the property sells during the term no matter who finds the buyer, even the owner. Which listing is this?

An open listing

An exclusive-agency listing

An exclusive-right-to-sell listing

A net listing

Question 7: Under an exclusive-agency listing, when does the seller owe the broker no commission?

When any buyer purchases

When the broker advertises it

Never, a commission is always owed

When the owner personally sells it

Question 8: Two brokers under an open listing dealt with the same buyer, but only one broker's continuous efforts actually brought about the sale. Who earns the commission?

The procuring cause

The first broker to show it

Both brokers equally

The listing service

Question 9: A listing in which the broker keeps everything above a price the seller names creates a clear conflict of interest. What is this listing called, and how is it treated?

An open listing, fully encouraged

An exclusive listing, always required

A net listing, restricted or prohibited

A buyer agreement, standard practice

Question 10: A cooperative arrangement lets member brokers share their listings in a common database that exposes each property to many brokers and buyers. What is it called?

A net listing

A guaranty fund

A management agreement

A multiple listing service

Question 11: A Pennsylvania salesperson is entitled to a share of a transaction fee. From whom may the salesperson lawfully accept that compensation?

Only from the employing broker

Directly from the seller

From the cooperating firm

From the buyer in cash

Question 12: A licensee tells a client that the commission rate is the standard rate everyone in the area charges. Why is this statement a problem?

Commissions must be higher

Commissions are negotiable, with no standard rate

Only the board sets rates

It is simply good marketing

Question 13: A buyer's agent is paid out of the transaction proceeds rather than directly by the buyer. Does the source of payment determine whom the agent represents?

Yes, the payer is the client

Yes, payment always controls

No, representation is set by agreement

Only in an open listing

Question 14: Under an exclusive-right-to-sell listing, how does the broker generally earn the commission, even if the seller then refuses to sell?

By advertising the property widely

By holding an open house

By listing it on the database

By producing a ready, willing buyer

Question 15: Most listings include a clause entitling the broker to a commission if the property sells shortly after expiration to a buyer the broker introduced during the term. What is it called?

A protection clause

A subordination clause

An acceleration clause

A net clause

Question 16: A salesperson commits misrepresentation while working a listing, and the wronged buyer sues the broker as well. On what basis can the broker be liable?

Liquidated damages

Vicarious liability

Subrogation

Escheat

Question 17: Errors and omissions insurance covers a licensee's negligent mistakes, but which conduct does it typically exclude?

An inadvertent paperwork error

An accidental failure to disclose

Fraud and fair housing violations

A negligent misstatement

Question 18: A broker is responsible for establishing policies, training salespersons, and monitoring trust-account handling and advertising. A failure to do this is itself what?

A protected business decision

The salesperson's sole responsibility

An antitrust matter

A violation the broker answers for

Question 19: Before making telemarketing prospecting calls, a licensee must scrub the call list against which resource?

The National Do Not Call Registry

The multiple listing service

The county tax rolls

The recovery fund records

Question 20: Which insurance protects a brokerage against bodily injury claims, such as a visitor injured at an open house?

Errors and omissions insurance

General liability insurance

Title insurance

Mortgage insurance

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