PRES Pennsylvania Real Estate Salesperson Examination - Set 3 - Part 2

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

Question 21: A seller signs a valid agreement of sale, then refuses to close because a better offer arrived. Which remedy can compel the seller to actually convey?

Specific performance

Liquidated damages

Punitive damages

Novation

Question 22: A buyer with no contingency excuse refuses to close, and the contract names the deposit as the seller's agreed measure of damages. What is this called?

Specific performance

Liquidated damages

Compensatory damages

Rescission

Question 23: A broker receives a buyer's earnest-money deposit in a Pennsylvania transaction. How must the broker handle those funds?

Deposit them in the broker's operating account

Give them directly to the seller

Hold them in a separate escrow account

Keep them as the commission

Question 24: The moment a valid agreement of sale is signed, the buyer gains an ownership interest the law recognizes while the seller keeps legal title. What is the buyer's interest called?

Legal title

A leasehold estate

A remainder

Equitable title

Question 25: A buyer's agreement is conditioned on obtaining a mortgage by a deadline, and despite a good-faith effort the buyer is denied financing and notifies the seller in time. What results?

Buyer may cancel and recover the deposit

The buyer has breached the contract

The seller keeps the earnest money

The buyer must pay damages

Question 26: In an installment sales contract, the buyer takes possession and pays over time while the seller keeps legal title until the price is fully paid. Who holds legal title meanwhile?

The buyer

The seller

A neutral trustee

The lender

Question 27: In the agency triangle, the third party the agent deals with but does not represent, owed honesty but not fiduciary duties, is called what?

The principal

The client

The customer

The subagent

Question 28: A listing broker is empowered to find a buyer for one property but not to bind the seller to a sale. Which kind of agent is this?

A universal agent

A general agent

A subagent

A special agent

Question 29: A property manager handles an owner's building on a continuing basis across many matters. Which kind of agent is the property manager?

A general agent

A special agent

A gratuitous agent

A dual agent

Question 30: An agent reveals to the buyer that the seller will accept far less than the asking price. Which fiduciary duty has the agent most clearly breached?

Accounting

Confidentiality

Care

Obedience

Question 31: The same broker represents both the seller and the buyer in one transaction. Under what condition is this lawful?

Whenever the broker chooses

Only if the price is disclosed

Only with informed written consent of both

Never under any circumstances

Question 32: Within one firm, the broker assigns one licensee to represent the seller and a different licensee to represent the buyer. What is this arrangement called?

Subagency

Single agency

Open agency

Designated agency

Question 33: One licensee secretly represents both buyer and seller in the same deal and collects a fee from each, telling neither. How does the law treat this?

It is illegal undisclosed dual agency

It is permitted with a fee split

It is lawful single agency

It is ordinary designated agency

Question 34: A licensee must obey a client's lawful instructions, but the client directs the licensee to refuse showings to families with children. Must the licensee comply?

Yes, obedience is absolute

No, the duty excludes unlawful instructions

Yes, the client controls the listing

Only if it is put in writing

Question 35: A licensee who provides competent service to facilitate a deal but represents neither party as a fiduciary is described in Pennsylvania by which term?

A dual agent

A subagent

A transaction licensee

A designated agent

Question 36: A principal accepts the benefit of an act an agent performed without prior authority, thereby approving it after the fact. How was this agency created?

By estoppel

By express agreement

By an option

By ratification

Question 37: A salesperson lists a home, and two weeks later the seller dies before any sale. What generally happens to the listing?

It terminates by operation of law

It continues unchanged

It passes to the buyer

It converts to an option

Question 38: A buyer working with the seller's agent as an unrepresented customer asks whether the basement floods, which the agent knows it does every spring. May the agent stay silent?

Yes, the buyer is only a customer

No, known material defects must be disclosed

Yes, unless the buyer hires the agent

Only the seller must disclose it

Question 39: An agent says a home has the finest view on the block. The statement is exaggerated opinion that no reasonable buyer treats as fact. What is this called?

Fraud

Negligent misrepresentation

Puffing

Concealment

Question 40: An agent who holds an actual interest in the property, having advanced money secured by it, is the agent. May the principal revoke this agency?

Yes, the principal may always revoke

Yes, but only with cause

Only after the property sells

No, the agency cannot be revoked

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