Quizlet what are pennsylvania brokers required to place outside of their licensed place of business?

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1) List the qualification and application requirements to become a licensed real estate salesperson in the Commonwealth of Pennsylvania. 2) List at least two prohibited acts under RELRA.

Terms in this set (75)

o Negotiates with or aids any person in locating or obtaining for purchase, lease or an acquisition of interest in any real estate;
o Negotiates the listing, sale, purchase, exchange, lease, time share and similarly designated interests, financing or option for any real estate;
o Manages any real estate;
o Represents himself to be a real estate consultant, counselor, agent or finder;
o Undertakes to promote the sale, exchange, purchase or rental of real estate: Provided, however, that this provision shall not include any person whose main business is that of advertising, promotion or public relations;
o Undertakes to perform a comparative market analysis; or
o Attempts to perform any of the above acts.

Any person who is a full-time employee of a builder- owner of single and multifamily dwellings located within the Commonwealth and as such employee shall be authorized and empowered to list for sale, sell or offer for sale, or to negotiate the sale or exchange of real estate, or to lease or rent, or offer to lease, rent or place for rent, any real estate owned by his builder-owner employer, or collect or offer, or attempt to collect, rent for the use of real estate owned by his builder-owner employer, for and on behalf of such builder-owner employer.

1) An owner of real estate with respect to property owned or leased by such owner.
2) The employees of a public utility acting in the ordinary course of utility-related business, including negotiating the purchase, sale or lease of property.
3) The officers or employees of a partnership or corporation whose principal business is the discovery, extraction, distribution or transmission of energy or mineral resources, provided that the purchase, sale or lease of real estate is a common and necessary transaction in the conduct of such principal business.
4) The services rendered by an attorney-in-fact under an executed and recorded power of attorney from the owner or lessor.
5) A person acting as trustee in bankruptcy, administrator, executor, trustee or guardian while acting under a court order or under the authority of a will or of a trust instrument.
6) The elected officer or director of any banking institution, savings institution, savings bank, credit union or trust company operating under applicable Federal or State laws
RealEstateU® - All Rights Reserved
Chapter 10: Real Estate License Law / Rules and Regulations 330 where only the real estate of the banking institution, savings institution, savings bank,
credit union or trust company is involved.
7) Any officer or employee of a cemetery company who, as incidental to his principal duties and without remuneration therefor, shows lots in such company's cemetery to persons for their use as a family burial lot and who accepts deposits on such lots for the representatives of the cemetery company legally authorized to sell the same.
8) Cemetery companies and cemeteries owned or controlled by a bona fide church or religious congregation or fraternal organization or by any association created by a bona fide church or religious organization or by a fraternal organization.
9) An auctioneer licensed under the act of September 29, 1961 (P.L. 1745, No. 708), known as "The Auctioneers' License Act," while performing authorized duties at any bona fide auction.
10) Any person employed by an owner of real estate for the purpose of managing or maintaining multifamily residential property: Provided, however, that such person is not authorized to enter into leases, negotiate terms or conditions of occupancy, or to hold money belonging to tenants other than on behalf of the owner.
11) The elected officer, director or employee of any banking institution, savings institution, savings bank, credit union or trust company operating under applicable Federal or State laws when acting on behalf of the institution in performing appraisals or other evaluations of real estate in connection with a loan transaction.

Obtaining your license by false representation or a fraudulent act or conduct.
Making any substantial misrepresentation.
Making any false promise of a character likely to influence, persuade or induce any person to enter into any contract or agreement when he/she could not, or did not, intend to keep such promise.
Pursuing a continued and flagrant course of misrepresentation or making of false promises through a salesperson, associate broker, other persons, or any medium of advertising, or otherwise.
Using misleading or untruthful advertising, or using any other trade name or insignia or membership in any real estate association or organization, of which the licensee is not a member.
Failing to comply with any of the requirements of section 455.608.e of RELRA.
Failing to preserve real estate transaction records for 3 years.
Acting for more than one party in a transaction without consent in writing of all parties.
Placing a "for sale" or "for rent" sign, or advertising any property, without written consent.
Failing to provide a copy of any real estate contract to all signatories at the time of execution.
Failing to specify a definite termination date that is not subject to prior notice, in any listing contract.
Inducing any party to a contract, sale or lease to break the contract and enter into a new one for your own personal gain.
Accepting a commission, or anything valuable, from anyone except your Broker for following the rules in RELRA.
Paying a commission, or anything valuable, to anyone other than licensed employees or another real estate broker for following the rules in RELRA.
Failing to disclose to an owner in writing your intention to purchase a property listed with your office.
Being convicted of, or pleading nolo contendere to, any felony, or forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, or any similar offense.
Violating any rule or regulation promulgated by the Commission.
Failing to provide a disclosure required by this act or any law.
For a Broker, failing to properly supervise salespeople.
Failing to provide information requested by the Commission relating to a complaint.
Selling property by offering free lots, conducting lotteries or contests, or offering prizes for the purpose of influencing, by deceptive conduct, any purchaser or prospective purchaser of real property. In addition:
o Any prize, gift, award or bonus offered in relation to the offering of sale of real property must include a statement of the fair market value, not suggested retail price, of all prizes offered, plus a statement of the odds of winning.
o If a prize is to be awarded as a rebate, coupon or discount certificate, a statement of that fact shall be included, along with a statement of any fees and the maximum amount of each, which the prizewinner must pay in order to receive the prize.
o An offering by mail shall be written in a clear and coherent manner, using common usages of words and terms. A concise description of the real property or interest being promoted shall appear in any offering and shall include a statement that the interest is a time share, where applicable. If the prospective prizewinner must personally visit and inspect the real property or interest being promoted and
listen to a sales presentation in order to win a prize, the offering shall include a statement of that fact. An offering may include instructions for a recipient to contact a certain telephone number, within a specified time period, or by a specified date, if the offeror identifies the business entity and its relationship to the offeror, and complies with this paragraph.
o Substitutions of prizes having equal or greater fair market value may be made if the offeror complies with this paragraph.
o If a prospective purchaser must attend a time share sales presentation as a condition of the offering, the required disclosures for the offering shall:
Be provided in writing or electronically, not orally
Be stated in a clear, coherent and conspicuous manner...and
The disclosure regarding the scheduled sales presentation must appear in boldface type.
o The disclosures shall be provided at least once in a reasonable time period, before the scheduled sales presentation.
o The required disclosures need not be in every advertisement or communication.o As used in this paragraph, the term "prize" includes, but is not limited to, money,
personal property, vacations, travel certificates, motor vehicles and appliances.

Failing to disclose a commission, rebate, compensation, profit, or expenditures.
Having a conduct which demonstrates bad faith, dishonesty, untrustworthiness, or
incompetency.
Performing any act that requires a license without one.
Violating any provision of the "Pennsylvania Human Relations Act," including, but not limited to:
o Accepting listings on the understanding that illegal discrimination in the sale or rental of housing is to be practiced.
o Giving false information for purposes of discrimination in the rental or sale of housing.
o Making distinctions in locations of housing or dates of availability of housing for purposes of discrimination in the rental or sale of such housing
Violating section 455.602, 606, 607, or 609 of RELRA.
In the case of a Broker, failing to exercise adequate supervision over the activities of a campground membership salesperson or a time-share salesperson within the scope of this act...and
Being disciplined under a real estate licensing law of another jurisdiction.

This clause is to be separately initialed by the purchaser. Copies of all documents which place an obligation upon a purchaser shall be given to the purchaser upon execution by the purchaser.
Notice of cancellation shall be given by certified return receipt mail or by any other bona fide means of delivery, provided that the purchaser obtains a receipt. A noticeof cancellation given by a bona fide means of delivery shall be effective on the date postmarked or on the date of deposit of the notice with any bona fide means of delivery.
Within ten business days after the receipt of a notice of cancellation, all payments made under the purchase contract shall be refunded to the purchaser and an acknowledgment that the contract is void shall be sent to the purchaser. In the event of a cancellation pursuant to this section, any promotional prizes, gifts and premiums issued to the purchaser by the seller shall remain the property of the purchaser.
The right of cancellation shall not be waivable by any purchaser.
A purchaser who exercises the right of cancellation shall not be liable for any damages as a
result of the exercise of that right.
In addition to constituting a violation of this act, a violation of this section by any individual, corporation, partnership, association or other entity shall also be deemed a violation of the act of December 17, 1968 (P.L. 1224, No. 387), known as the "Unfair Trade Practices and Consumer Protection Law." The Attorney General is authorized to enforce this section. Any actions brought by the Attorney General to enforce this section shall be in addition to any actions which the commission may bring under this act.
The right of the purchaser to bring an action to enforce this section shall be independent of any rights of action which this section confers on the Attorney General and the commission.

(a) All deposits or other escrows accepted by a broker must be retained by the broker pending:
(1) consummation of the transaction involved;(2) termination prior to consummation of the transaction involved where there is either:
no dispute; or
a prior agreement in writing or electronic form as to disposition of the deposit or other escrows in the event of a dispute;
(3) receipt by the broker of instructions in writing or electronic form, signed by all of the parties directing the broker to release some or all of the deposit or other escrows; or
(4) an order of a court specifying disposition of the deposit or other escrows becoming final and not subject to appeal.
(b) Deposits and other escrows must be accounted for in the full amount thereof at the time of consummation, termination or release as provided in subsection (a). If less than the full amount held pursuant to subsection (a) is released, notice must be given in writing or electronic form to all the parties to the transaction of the amounts released, the persons to whom distribution is made and the amounts that continue to be held pursuant to subsection (a).
(c) Every associate broker or salesperson shall, promptly, following receipt of a deposit or other escrow, pay over the funds to the broker employing the associate broker or salesperson.
(d) A broker shall not commingle deposits or other escrows or property of another person with the broker's own funds or property.
(e) A broker must deposit moneys and property belonging to others, in a separate custodialor trust fund account by the end of the business day following their receipt by the broker. The moneys and property must be held by the broker until they are paid or released as provided in subsection (a), at which time the broker shall account for the full amount received. Under no circumstances shall funds belonging to others be deposited in the broker's business or personal account nor shall they be commingled with the broker's funds.
(f) If a deposit in connection with an offer to buy or lease real estate is in the form of a check and the buyer and seller or lessee and lessor consent in writing or electronic form, the broker may hold the check and not deposit it as otherwise required by this section pending acceptance of the offer. If the offer is not accepted, the broker shall promptly return the check uncashed to the buyer or lessee. If the offer is accepted, the broker shall deposit the check into a custodial or trust fund account by the close of business on the business day following acceptance of the offer.
(g) A broker must keep records of all funds deposited in a custodial or trust fund account,which records indicate clearly the date and from whom the broker received the funds, the date deposited, the dates of withdrawals and other pertinent information concerning the transaction, and must show clearly for whose account the money is deposited and to whom the money belongs. All such records and funds shall be subject to inspection by the commission immediately after proper demand.
(h) A broker is not required to hold in escrow rents that the broker receives for property management for a lessor.
(i) A broker must deposit rents received into a rental management account that is separate from the broker's escrow account and general business accounts.
(j) A broker is permitted to deposit moneys into an escrow account to cover service charges to the account assessed by the banking institution.
(k) This section does not preclude the parties to a transaction from agreeing in writing or electronic form to have deposits or other escrows held by a person other than the brokers who represent the parties. This subsection shall not be construed to allow an associate broker, salesperson or qualified association to hold deposits or other escrows.

(a) Covered by RELRA. (b) Covered by RELRA.
(c) If a broker receives money belonging to another under an installment land purchase agreement, the transaction shall be considered consummated, for purposes of subsection(a), when the buyer has been aorded the opportunity, by means of the seller's written acknowledgement on or axed to the agreement, to record the agreement, unless the agreement specifies otherwise.
(d) If a broker receives money belonging to another under an agreement of sale involving cemetery property, the transaction shall be considered consummated, for purposes of subsection (a), when the buyer receives a copy of the agreement of sale.
(e) If a broker receives a security deposit belonging to another under a lease agreement, the broker's duty to pay over the deposit for purposes of subsection (a), shall arise when the tenancy ends. If a sale of the leased premises or a change in a property management contract occurs during the term of the tenancy, the broker may transfer the security deposit from the broker's escrow account to the escrow account of the lessor or the lessor's broker upon notification in writing to each tenant from whom the broker received a deposit of the name and address of the banking institution in which the deposits will be held, and the amount of the deposits.

o A description of each prize, certificate, gift or lot offered.
o The prerequisites for receiving each prize, certificate, gift or lot offered.
o Limitation on the number of prizes, certificates, gifts or lots offered.
o The fair market value of each prize, certificate, gift or lot offered. If the advertisement is in a print medium, the statement of fair market value shall bein the same size type as the description of the prize, certificate, gift or lot offered. For purposes of this paragraph, ''fair market value'' is the price or value that a prospective buyer would expect to pay, or be charged for, if he were to acquire a similar item of like quality and quantity in a retail outlet that offers the item for sale to the general public.
o The odds of winning or receiving each prize, certificate, gift or lot offered. If the advertisement is in a print medium, the statement of odds shall be the same size type as the description of the prize, certificate, gift or lot, and shall appear immediately adjacent to the description.

o Failure to comply with either of the above subsections.o Failure to disclose the possibility that a particular prize, certificate, gift or lot may
not be distributed or awarded.
o Advertising the availability of a prize, certificate, gift or lot when it is not available for distribution or awarding.
o Giving a misleading description of a prize, certificate, gift or lot.
Example:
Jacob and Paul own a large parcel of land that they plan to build on in the near future. As a way to generate interest in their future building project, Jacob and Paul decide to have a lottery. The pair plans to give away a lot within their larger parcel of land to the winner of the lottery. When Jacob and Paul create the advertisements for the lottery, however, it sounds as though the winner will win a home, not a lot on which they need to build a home. Moreover on the advertising materials is it neither explained what the chances of winning are, nor what the fair market value of the prize that the winner actually receives is.
Paul and Jacob have violated Section §35.306 of SREC in several ways. First, they did not make it clear what the winner was actually winning. Second, they failed to disclose the odds of winning for those who played the lottery, Finally, they did not provide a fair market value for the lot they are giving away to the winner of the contest. It appears likely that Paul and Jacob may have violated a number of additional provisions of the section as well.

An advertisement by a broker about ''sales volume'' or ''production'' shall refer only to closed transactions. For purpose of this subsection, a ''closed transaction'' is either a listing sold or a sale made after a fully executed deed is delivered.
An advertisement by a broker about his production or position in the ''market'' shall identify the municipality that the market comprises.
An advertisement by a broker about the number of offices that he operates shall refer only to those offices that have been issued branch office licenses by the Commission.
Example:
Martha is a broker who wants to increase her business with the use of "creative" advertising. Martha runs ads in newspapers, online, and on television that claim her business does $20 million in sales volume each month, that she is the number one broker in her market, and that she has 10 oces that are all conveniently located.
In reality, Martha's offices have $20 million worth of listings, on average, per month; however, her office does not do $20 million in listings sold each month. Martha has already violated Section §35.307. In addition, Martha claimed in her advertisements that she is the number one broker in her market; however, Martha did not define what market she is referring to, thereby violating Section §35.307 for a second time. Finally, Martha claims to have 10 offices that are conveniently located; however, only six of those offices have actually been issued a branch license by the Commission. Altogether, Martha has violated Section §35.307 in three different ways within her advertising materials; however, keep in mind that it only takes one violation for Martha to face sanctions from the Commission.

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