PA RE Broker cheat sheet

Pennsylvania real estate licensees are regulated under the Real Estate Licensing and Registration Act (RELRA), 63 P.S. § 455.101 et seq., administered by the State Real Estate Commission within the Department of State.

RELRA defines "broker" as a person who, for another and for a fee, sells, exchanges, buys, rents, manages, or negotiates options on real estate or business opportunities; a "salesperson" must be affiliated with a broker.

Statutory maximum commission split for a salesperson is set by the Commission; a salesperson may not collect compensation directly from a client - payment flows through the employing broker.

Licensees owe statutory duties under RELRA § 455.606a: loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, accounting, and disclosure of conflicts of interest.

Confidential information obtained from a client survives termination of the brokerage relationship under RELRA; a licensee may not disclose it after the relationship ends.

A licensee must disclose in writing any interest the licensee has in a property being sold or purchased, including a personal or family interest, before an offer is made.

Unlicensed persons may assist with clerical or administrative tasks but may not negotiate price, terms, or show property for compensation; advertising must include the broker's name.

Penalties for RELRA violations include reprimand, license suspension or revocation, fines up to $1,000 per violation (plus costs), and restitution; unlicensed brokerage is a criminal offense.

Commission regulations appear at 49 Pa. Code Chapter 35; they cover licensing, education, advertising, escrow, and recordkeeping requirements.

Initial salesperson license requires 75 hours of approved instruction; broker license requires 240 hours of instruction plus one year (or 200 transactions over three years) of experience.

Continuing education is 14 hours per two-year renewal cycle, including 3.5 hours in ethics and 3.5 hours in fair housing (per current Commission rules).

Licensees must retain transaction records for at least three years, and escrow records for the period specified by Commission regulation (three years after disbursement).

Advertising must be under the supervision of the broker; team names must be registered with the Commission and the broker's name must appear in advertising.

A licensee must notify the Commission of a change of address within 10 days and of criminal convictions or disciplinary actions as required by regulation.

Commingling is prohibited: client funds must be deposited in a separate escrow account and may not be placed in the broker's operating account.

A broker must notify the Commission and all parties when a license is suspended, revoked, or placed on inactive status, and must cease brokerage activity during that period.

Agency is a fiduciary relationship created by express agreement, implied agreement, estoppel, or ratification; in Pennsylvania it is generally created by written agreement between broker and client.

The agent owes the principal loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting; the agent owes customers honesty, accuracy, and disclosure of known material defects.

Subagency exists when a broker appoints another broker to act on behalf of the principal; the cooperating broker owes fiduciary duties to the seller, not the buyer.

Dual agency requires informed written consent of both parties; Pennsylvania permits designated agency, in which different licensees in the same brokerage represent different parties.

With designated agency, the broker-in-charge may appoint one licensee to represent the buyer and another to represent the seller, with confidentiality maintained between them.

Agency relationships terminate by performance, expiration, mutual agreement, revocation, renunciation, death or incapacity, or bankruptcy of the principal.

The agent's duty of confidentiality continues after termination; the duty of loyalty and accounting for funds received continues as well.

A transaction licensee (in states using that model) provides services without a fiduciary relationship; Pennsylvania uses written buyer and seller agency agreements instead.

The Consumer Notice (Statement of Business Relationships) must be provided at the initial interview or first substantive contact and acknowledged in writing by the consumer.

The Consumer Notice explains seller agency, buyer agency, dual agency, designated agency, transaction licensee status, and the possibility of subagency.

The seller agency agreement must disclose whether the broker will offer cooperation and compensation to buyer agents and whether subagency is offered.

Buyer agency agreements must be in writing and signed before the buyer's first substantive contact; oral buyer agency is not permitted under PA rules.

A licensee must disclose in writing any financial interest in a property or in a service provider recommended to a client, and any referral fee received.

If a broker represents both buyer and seller without consent to dual or designated agency, the broker must withdraw from one side or obtain written consent to dual agency.

Disclosure of known material defects in the property is required; Pennsylvania's Real Estate Seller Disclosure Law requires a seller's property disclosure statement for residential resale.

Compensation may be paid by either party but must be disclosed; a buyer agent's compensation arrangement with the buyer must be stated in the buyer agency agreement.

An exclusive right to sell listing entitles the broker to a commission regardless of who procures the buyer, including the seller's own procured buyer.

An exclusive agency listing entitles the broker to a commission unless the seller personally procures the buyer; an open listing pays only the broker who procures the buyer.

A net listing is prohibited in Pennsylvania because it creates a conflict of interest between the broker's commission and the seller's proceeds.

Listing agreements must state the beginning and expiration dates, the commission or compensation, and the broker's authority to cooperate with other brokers.

A buyer agency agreement should state the term, the compensation, whether it is exclusive, and whether the buyer will be responsible for a shortfall if the seller's offer is less.

Automatic renewal clauses in listing agreements are prohibited unless the seller initials the renewal provision separately.

A listing agreement may be terminated by the seller for cause (breach) or by mutual agreement; a "protection period" clause extends the broker's right to a commission for buyers introduced during the term.

The broker may not accept compensation from both buyer and seller without disclosure and consent, and must disclose any rebate or referral fee to the client.

A mortgage is a lien on real property securing a debt; the mortgagor is the borrower, the mortgagee is the lender, and the note is the borrower's personal obligation.

A deed of trust conveys title to a trustee to secure a debt; Pennsylvania commonly uses mortgages rather than deeds of trust.

Conventional loans are not government-insured; FHA loans are insured by HUD/FHA (with mortgage insurance premiums), and VA loans are guaranteed by the VA with no down payment for eligible veterans.

Loan-to-value (LTV) = loan amount ÷ property value; a higher LTV generally requires mortgage insurance and may carry a higher rate.

PITI = principal + interest + taxes + insurance; the lender may collect 1/12 of annual taxes and insurance monthly into an escrow (impound) account.

RESPA requires a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing; tolerances limit increases in certain closing costs.

The CFPB's ability-to-repay rule requires lenders to verify income, assets, employment, and debts; qualified mortgages provide a safe harbor.

An adjustable-rate mortgage (ARM) has an initial fixed period, then adjusts by an index plus margin, subject to periodic and lifetime caps.

RESPA applies to federally related mortgage loans for one-to-four family residential property; it prohibits kickbacks and unearned fees under Section 8.

The Closing Disclosure itemizes loan costs, other costs, taxes, prepaid items, and escrow account calculations; it must be received 3 business days before consummation.

The Loan Estimate must be delivered within 3 business days of application and discloses the loan terms, projected payments, and closing cost estimates.

Settlement agents in Pennsylvania are licensed by the Department of Banking and Securities; title insurance rates are promulgated by the Insurance Department.

The seller typically pays the realty transfer tax in Pennsylvania (1% state plus 1% local, with Philadelphia and Pittsburgh variations), though the parties may negotiate otherwise.

Pennsylvania realty transfer tax applies to the full consideration; the buyer may be responsible for the tax if the seller fails to pay, and the deed must be recorded.

A HUD-1 is used for certain loans not covered by the Closing Disclosure (e.g., reverse mortgages and some non-residential transactions).

Escrow account rules limit the cushion a lender may require to 1/6 of annual disbursements; overages must be refunded within specified periods.

Forms of co-ownership: tenancy in common (unequal shares, no survivorship), joint tenancy (equal shares with right of survivorship), tenancy by the entirety (spouses only, survivorship), and tenancy in severalty (sole ownership).

A general warranty deed contains covenants of seisin, quiet enjoyment, warranty, and further assurances; a special warranty deed limits the warranty to the grantor's own period of ownership.

A quitclaim deed conveys only whatever interest the grantor has, with no warranty; a bargain and sale deed implies no warranty in Pennsylvania unless expressly stated.

Adverse possession in Pennsylvania requires actual, open, notorious, exclusive, hostile, and continuous possession for 21 years.

Title passes on delivery and acceptance of a deed; recording provides constructive notice to subsequent purchasers and protects against later claims.

A title search examines the chain of title; title insurance protects the lender (loan policy) and the owner (owner's policy) against covered defects.

Easements may be appurtenant (benefiting a dominant parcel) or in gross (personal); they may be created by express grant, implication, necessity, or prescription.

Pennsylvania is a race-notice state: a subsequent purchaser who records first and takes without notice of a prior unrecorded interest prevails.

A lease is both a conveyance of a leasehold estate and a contract; the four leasehold estates are tenancy for years, periodic tenancy, tenancy at will, and tenancy at sufferance.

The Pennsylvania Residential Lease must disclose the name and address of the landlord or the landlord's agent and the name and address of the bank where the security deposit is held.

Security deposits may not exceed two months' rent for the first year and one month's rent thereafter; the landlord must return the deposit with an itemized list of damages within 30 days of lease termination.

A landlord must provide written notice of the right to a pre-move-out inspection and the right to be present at the inspection; failure to comply can result in forfeiture of the right to deduct damages.

Pennsylvania's Implied Warranty of Habitability applies to residential leases and cannot be waived; the landlord must maintain the premises in a safe and sanitary condition.

Self-help eviction (changing locks, removing belongings, shutting off utilities) is prohibited; the landlord must use the judicial eviction process (complaint, judgment, writ of possession).

Notice to terminate a month-to-month tenancy is generally 30 days; a year-to-year tenancy requires 30 days' notice before the end of the year under Pennsylvania law.

Property managers must keep trust funds in a separate escrow account and may not commingle owner funds with the manager's operating funds.

A valid contract requires offer, acceptance, consideration, legal capacity, and legality of purpose; real estate contracts must satisfy the statute of frauds (written and signed).

An offer may be revoked before acceptance; a counteroffer terminates the original offer and creates a new offer.

An option contract gives the buyer the right to purchase within a set period; consideration is required to keep the option open.

Earnest money is consideration and evidence of good faith; it is typically held in escrow and applied to the purchase price or forfeited on default per the contract terms.

Contingencies (financing, inspection, appraisal, sale of buyer's home) must be satisfied within stated deadlines; failure to waive or remove a contingency can allow the seller to terminate.

The parol evidence rule excludes prior or contemporaneous oral statements that contradict a fully integrated written contract.

Time is generally of the essence in real estate contracts when the contract so states; deadlines for inspections and financing are strictly enforced.

A breach may entitle the non-breaching party to damages (compensatory, consequential), specific performance, or rescission, depending on the contract terms and facts.

The sales comparison approach estimates value by adjusting comparable sales for differences in location, size, condition, and features; it is most reliable for residential property.

The cost approach estimates value as replacement cost new minus depreciation plus land value; it is used for unique or new construction.

The income approach capitalizes net operating income: Value = NOI ÷ capitalization rate; NOI = gross income − vacancy − operating expenses.

Gross Rent Multiplier (GRM) = sale price ÷ gross monthly rent; it provides a quick comparison of income properties.

An appraisal is a defensible opinion of value prepared by a licensed or certified appraiser; a CMA is a broker's opinion prepared without an appraisal license.

Adjustments are applied to the comparable, not the subject: if the comparable is superior, subtract; if inferior, add.

The three approaches to value are sales comparison, cost, and income; the appraiser reconciles them into a final opinion of value.

Highest and best use is the reasonably probable, legally permissible, physically possible, financially feasible, and maximally productive use of a property.

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability in the sale or rental of housing.

Pennsylvania's Human Relations Act adds ancestry, age (40+), and non-job-related handicap to the protected classes for housing.

Prohibited practices include refusing to sell or rent, steering, blockbusting, redlining, discriminatory advertising, and imposing different terms or conditions.

Reasonable accommodations and modifications must be permitted for persons with disabilities; the tenant generally pays for modifications, and the landlord may require restoration.

Familial status protection covers households with children under 18 and pregnant women; occupancy standards must be reasonable and applied uniformly.

HUD complaints must be filed within one year of the discriminatory act; Pennsylvania Human Relations Commission complaints generally must be filed within 180 days.

Exemptions are narrow: the Mrs. Murphy exemption applies to owner-occupied buildings with no more than four units, but advertising must still comply.

Fair housing testing and disparate impact analysis can establish discrimination without proof of intent.

The National Association of Realtors Code of Ethics is enforced by local boards; Article 1 requires honesty, and Article 2 prohibits misrepresentation of material facts.

Article 16 requires exclusive representation of the client's interests; Article 17 governs disputes between Realtors through arbitration.

Pennsylvania's Unfair Trade Practices and Consumer Protection Law prohibits deceptive or misleading conduct in trade or commerce, including real estate advertising.

Licensees must not advertise property without the owner's consent, and must disclose their licensed status in advertising and social media.

Steering based on protected class, blockbusting, and panic selling are unethical and illegal; a licensee must not participate in or facilitate them.

A licensee may not offer a thing of value to a consumer as an inducement without disclosure and compliance with RESPA and state law.

A licensee must disclose known material defects and may not make false statements about the condition of the property or the status of a transaction.

Client funds must be handled with fidelity: trust accounts, receipts, ledger records, and prompt disbursement are ethical and regulatory obligations.

The broker is responsible for supervising all affiliated licensees, including their advertising, escrow handling, and compliance with RELRA and Commission rules.

Escrow accounts must be clearly labeled, and the broker must maintain a ledger for each transaction showing receipts, disbursements, and balances.

Deposits must be made promptly (within the time specified by regulation, generally the next banking day after receipt or as stated in the agreement).

The broker must reconcile the escrow account monthly and retain records for at least three years after disbursement.

A broker may not use escrow funds for the broker's own expenses or for another transaction; commingling is grounds for discipline.

A written office policy manual should address agency relationships, advertising, fair housing, escrow, and confidentiality.

The broker must ensure that affiliated licensees complete required continuing education and maintain active licenses.

Records of agency agreements, transaction files, and disclosures must be retained and made available to the Commission upon request.

The Pennsylvania Municipalities Planning Code (MPC), Act 247 of 1968, governs zoning, subdivision, and land development for municipalities that adopt it.

Zoning ordinances divide land into districts and regulate use, density, lot size, setbacks, height, and bulk; nonconforming uses may continue but may not be expanded without relief.

A variance grants relief from the literal terms of the ordinance where unnecessary hardship exists; a special exception is granted by the zoning hearing board where the ordinance allows it.

The zoning hearing board hears appeals from zoning officer decisions and requests for variances and special exceptions; appeals must be filed within 30 days of the decision.

A curative amendment may be filed with the governing body to challenge an ordinance that excludes a legitimate use.

Subdivision and land development plans are reviewed by the planning commission and approved by the governing body; the MPC sets time limits for review and decision.

Municipalities may adopt comprehensive plans to guide land use; zoning must be consistent with the comprehensive plan but the plan is not itself a regulation.

Historical districts and floodplain regulations may impose additional restrictions on use and construction beyond the base zoning ordinance.

RELRA § 455.101 defines key terms: broker, salesperson, broker-in-charge, and real estate transaction; the definitions control who must be licensed.

A person who manages rental property for another for a fee is performing brokerage and must be licensed as a broker.

The Commission may suspend, revoke, or refuse to renew a license for violations including fraud, misrepresentation, negligence, and failure to account for funds.

A licensee must disclose a conflict of interest in writing and may not act for more than one party in a transaction without informed written consent.

The Real Estate Seller Disclosure Law requires a seller's disclosure statement for residential resale; the buyer may rescind within a specified period if the disclosure is late or inaccurate.

A licensee may not make a false statement about the value of a property or the availability of financing to induce a party to enter a transaction.

The Pennsylvania Real Estate Recovery Fund provides compensation to consumers who obtain a judgment against a licensee for a wrongful act and cannot collect.

A licensee must report in writing any criminal conviction or disciplinary action by another jurisdiction to the Commission within the time required by regulation.

Advertising rules require the broker's name and license number to appear in advertising; a salesperson may not advertise independently of the broker.

The Commission requires licensees to maintain a current address on file and to notify the Commission of changes within 10 days.

The Commission may audit escrow accounts and transaction records; failure to produce records is itself a violation.

A licensee must complete a minimum of 14 hours of continuing education per biennial renewal, including ethics and fair housing topics.

The Commission may impose civil penalties and costs in addition to suspension or revocation; penalties may be assessed per violation.

Licensees must disclose the name of the broker-in-charge and the office location in the Consumer Notice and agency agreements.

A salesperson who changes employing brokers must notify the Commission and obtain a new license before performing brokerage for the new broker.

A licensee may not pay a commission or referral fee to an unlicensed person for brokerage activity; referral fees to licensed brokers are permitted with disclosure.

A buyer agency agreement creates a fiduciary relationship between the buyer and the broker; the broker owes loyalty, confidentiality, and disclosure to the buyer.

A seller's agent owes the seller loyalty and must not disclose the seller's motivation or negotiating position to the buyer.

The cooperating broker's relationship with the seller is defined by the listing broker's offer of compensation and cooperation; the buyer agent does not automatically become a subagent.

Dual agency arises when one broker represents both parties; the broker must obtain written consent and may not advocate for one party over the other.

Designated agency allows the broker to appoint different licensees to represent each party; the broker remains neutral and confidentiality is maintained between the designated agents.

The agent must disclose all offers to the principal promptly, even offers the agent considers unfavorable, unless the principal directs otherwise in writing.

An agent may not purchase the principal's property or sell the agent's own property to the principal without full written disclosure of the agent's interest.

The agency relationship may be terminated by the client at any time, but the client may owe compensation under the agreement's terms.

The Consumer Notice must be signed and dated by the consumer and retained in the transaction file; it is not a contract and does not create an agency relationship.

The notice must be provided before the consumer discloses confidential information or receives substantive services from the licensee.

A licensee must disclose whether the licensee represents the buyer, the seller, both, or neither, and must explain the difference between a client and a customer.

A customer is entitled to honesty, accuracy, and disclosure of known material defects, but not to loyalty or confidentiality.

The seller's property disclosure statement must be delivered to the buyer before the buyer makes an offer, or the buyer may have a right to rescind.

A licensee who is a party to the transaction must disclose that fact in writing and may not act as the agent for the other party without consent.

Referral fees between licensees must be disclosed to the client and are subject to the broker's supervision and RESPA Section 8 restrictions.

A licensee must disclose any business relationship with a lender, title company, or inspector recommended to the client.

The listing agreement must be in writing and signed by the seller and the broker; it must state the broker's authority and the compensation terms.

The listing broker may offer cooperation and compensation to buyer agents through the MLS; the offer is not a contract with the buyer agent.

A buyer agency agreement must be signed before the buyer's first substantive contact; it should state whether the buyer will be responsible for any compensation shortfall.

An exclusive buyer agency agreement entitles the broker to compensation if the buyer purchases any property during the term, even if the broker did not show it.

A protection period clause extends the broker's right to compensation after expiration for buyers the broker introduced to the property during the term.

The seller may cancel a listing agreement for cause if the broker breaches; the broker may be entitled to compensation for services rendered.

A listing agreement may not include an automatic renewal clause unless the seller separately initials the renewal provision.

The broker must disclose in the listing agreement any compensation the broker will receive from a buyer or a third party.

The promissory note is the borrower's promise to repay; the mortgage is the security instrument that gives the lender a lien on the property.

A foreclosure is a judicial or nonjudicial process to enforce the mortgage lien; Pennsylvania generally requires judicial foreclosure.

A purchase-money mortgage is given to the seller or a third-party lender to finance the purchase; it may take priority over other liens.

Private mortgage insurance (PMI) is generally required when the LTV exceeds 80%; it may be canceled when the LTV reaches 78% under the Homeowners Protection Act.

An amortized loan has equal payments of principal and interest; a balloon loan has a large payment at maturity and may be risky for borrowers.

The interest rate is the cost of borrowing; the APR includes the interest rate plus certain fees expressed as an annual rate.

The lender must provide a Loan Estimate within 3 business days of application; the borrower may shop for services if the lender permits.

A VA loan requires a Certificate of Eligibility and a VA funding fee; an FHA loan requires mortgage insurance premiums and has loan limits set by HUD.

The Closing Disclosure must be delivered at least 3 business days before consummation; the borrower may waive the waiting period only in a bona fide emergency.

The Loan Estimate and Closing Disclosure must be in the same format and use the same terminology for easy comparison.

RESPA Section 8 prohibits kickbacks, fee splits, and unearned fees for settlement services; referrals must not be conditioned on payment.

Affiliated business arrangements require disclosure of the affiliation and an estimate of the charge; the consumer may choose another provider.

The settlement statement itemizes prorations of taxes, rents, and utilities as of the closing date; the seller typically credits the buyer for prepaid items.

Pennsylvania realty transfer tax is 1% state plus 1% local, and the deed must be recorded with the county recorder of deeds.

The title insurance premium is based on the promulgated rate schedule; the lender's policy and owner's policy are separate charges.

Escrow account funds must be held in a separate account and disbursed for taxes and insurance as they become due.

A deed must identify the grantor and grantee, contain words of conveyance, describe the property, be signed by the grantor, and be delivered and accepted.

A deed must be acknowledged before a notary to be recorded in Pennsylvania; recording gives constructive notice to the world.

A metes and bounds description uses boundary lines and angles; a lot and block description references a recorded plat.

A life estate grants ownership for the life of a named person; the remainderman holds a future interest and the life tenant must not commit waste.

A condominium owner holds title to a unit and an undivided interest in the common elements; the association governs through bylaws and a declaration.

A cooperative owner holds shares in a corporation and a proprietary lease; the corporation owns the real property.

A title insurance commitment lists the requirements and exceptions that must be resolved before the policy is issued.

A mechanic's lien may attach to property for unpaid work; the lien must be filed within the statutory period and may be discharged by payment or bond.

A tenancy for years has a fixed term and ends automatically without notice; a periodic tenancy renews automatically and requires notice to terminate.

A tenancy at will may be terminated by either party with reasonable notice; a tenancy at sufferance arises when a tenant remains after the lease expires.

The landlord must maintain the property in compliance with building and housing codes and make repairs necessary to keep it habitable.

The tenant must pay rent, keep the premises clean, and not commit waste; the tenant may not sublet without the landlord's consent if the lease requires it.

A lease may not waive the implied warranty of habitability; a clause purporting to do so is unenforceable.

The landlord may evict only through the judicial process; a judgment for possession and a writ of possession are required before removal.

Security deposit deductions must be itemized and supported by receipts or estimates; the landlord may not deduct for normal wear and tear.

A property manager must maintain separate records for each owner and provide accounting statements as required by the management agreement.

The statute of frauds requires real estate contracts to be in writing and signed by the party to be charged; an oral contract for sale is generally unenforceable.

A contract may be assigned unless the contract prohibits assignment or the assignment would materially change the obligor's duty.

A novation substitutes a new party or obligation for the original; a modification changes the terms but keeps the original parties.

Liquidated damages clauses must be reasonable and not a penalty; earnest money forfeiture clauses are generally enforceable if reasonable.

A condition precedent must occur before a party's obligation arises; a condition subsequent terminates an existing obligation.

The implied covenant of good faith and fair dealing applies to real estate contracts and prohibits one party from frustrating the other's performance.

A mutual mistake about a material fact may allow rescission; a unilateral mistake generally does not unless the other party knew or caused it.

Contract remedies include compensatory damages, specific performance, rescission, and restitution; the choice depends on the nature of the breach.

Market value is the most probable price in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller acting prudently and knowledgeably.

The appraisal process includes defining the problem, collecting data, analyzing the market, applying the approaches, and reconciling the value.

Adjustments in the sales comparison approach are based on market-derived data; the adjustment is applied to the comparable sale to make it equivalent to the subject.

Depreciation in the cost approach includes physical deterioration, functional obsolescence, and external (economic) obsolescence.

The income approach uses the capitalization rate derived from comparable sales; a lower cap rate indicates a higher value for the same income.

A CMA is not an appraisal and may not be represented as one; it is a broker's opinion of value based on market data.

Appraisal reports must comply with USPAP, including the Uniform Standards of Professional Appraisal Practice ethics and competency rules.

Highest and best use analysis considers legal permissibility, physical possibility, financial feasibility, and maximum productivity.

The Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on the seven protected classes.

Steering is directing a buyer or renter to a particular area based on race or other protected class; it is prohibited even if the housing is available.

Blockbusting is inducing panic selling by suggesting that members of a protected class are moving into the neighborhood.

Redlining is refusing to lend or insure in certain neighborhoods based on racial composition; it violates the Fair Housing Act and the Equal Credit Opportunity Act.

A landlord may not refuse to rent to a person with a disability or refuse to allow a service animal; a pet deposit may not be charged for a service animal.

Housing for older persons may be exempt from familial status protection if it meets the requirements of the Housing for Older Persons Act.

Fair housing complaints may be filed with HUD, the Pennsylvania Human Relations Commission, or a private attorney; remedies include damages and injunctive relief.

Advertising must not use words or phrases that indicate a preference or limitation based on a protected class.

The Code of Ethics prohibits misrepresentation of material facts and requires disclosure of adverse factors that the licensee knows or should know.

Article 9 requires that all agreements be in writing and that the licensee ensure the parties understand the terms.

Article 12 requires that the licensee not accept compensation from more than one party without disclosure and consent.

A licensee must not engage in deceptive advertising, including misleading claims about services, commissions, or the licensee's experience.

A licensee must protect and promote the client's interests while treating all parties honestly and fairly.

A licensee must not use confidential information gained in the transaction for personal benefit or to the detriment of the client.

A licensee must cooperate with other brokers when it is in the client's best interest and must not withhold cooperation unreasonably.

A licensee must report unethical conduct of other licensees to the appropriate board or commission when required.

The broker-in-charge must establish written procedures for handling trust funds and ensure all affiliated licensees follow them.

Escrow records must include a receipt for each deposit, a ledger for each transaction, and a monthly reconciliation of the bank statement to the ledger.

The broker must not disburse escrow funds without the written authorization of the parties or a court order, except as permitted by the agreement.

A broker may hold a deposit in a trust account until closing; the funds may not be used for the broker's operating expenses.

The broker must verify that all advertising by affiliated licensees complies with the broker's name and license number requirements.

The broker must maintain a current roster of affiliated licensees and notify the Commission of changes in affiliation.

The broker must ensure that agency agreements and disclosures are in writing and retained in the transaction file.

The broker must supervise team advertising and ensure team names are registered and the broker's name is included.

The MPC requires zoning ordinances to be consistent with the municipality's comprehensive plan and to provide for the use of land and the density of development.

A zoning officer issues permits and enforces the ordinance; an appeal from the officer's decision must be filed with the zoning hearing board within 30 days.

A dimensional variance is granted for a specific lot where the strict application of the ordinance would cause unnecessary hardship; a use variance is more difficult to obtain.

A special exception is granted by the zoning hearing board where the ordinance expressly permits the use subject to standards.

A nonconforming use may be continued but may not be expanded without a variance; abandonment may extinguish the use.

Subdivision and land development plans must be submitted to the planning commission and approved by the governing body within the time limits set by the MPC.

The MPC authorizes joint municipal zoning and planning arrangements and provides for zoning in municipalities that adopt the code.

A building permit is required before construction; a certificate of occupancy is required before a building may be occupied.

RELRA requires a written agency agreement for buyer and seller representation; the agreement must state the duties and compensation of the broker.

A licensee must disclose the broker's compensation and any referral fees in writing before the client signs an agreement.

A licensee may not act as a dual agent without the written consent of both parties; the consent must explain the limitations of dual agency.

The Commission may impose a civil penalty of up to $1,000 per violation and may suspend or revoke a license.

The Real Estate Recovery Fund may pay a judgment against a licensee for a wrongful act, subject to the statutory limits and procedures.

A licensee must maintain confidentiality of client information after the termination of the agency relationship.

A licensee must disclose any personal interest in a property or transaction and may not purchase property listed with the broker without disclosure.

A licensee must not engage in unlicensed brokerage or assist an unlicensed person in performing brokerage activities.

The Commission's regulations require licensees to keep records of all transactions for at least three years, including agency agreements, disclosures, and escrow records.

The Commission may require a licensee to appear for an interview or produce records in connection with an investigation.

A licensee must notify the Commission of a change in the licensee's name or address within the time required by regulation.

The Commission requires licensees to complete continuing education in ethics and fair housing as part of the 14-hour biennial requirement.

A licensee who fails to complete continuing education may have the license suspended or may be required to complete additional education.

The Commission may deny a license to an applicant with a criminal conviction that relates to the practice of real estate, subject to the applicant's right to a hearing.

A licensee must comply with the advertising rules, including the requirement that the broker's name and license number appear in advertising.

The Commission may impose costs of investigation and prosecution on a licensee who is found to have violated RELRA.

The agent's fiduciary duty of loyalty requires the agent to act in the principal's best interest and not to compete with the principal.

The agent must disclose all material information to the principal, including offers from other parties and the buyer's ability to perform.

The agent may not disclose the principal's confidential information to the other party or use it to the principal's disadvantage.

The agent must account for all funds and property entrusted to the agent and must not commingle client funds with personal funds.

The agent must exercise reasonable care and diligence in performing the agency duties, including verifying material facts.

The agent must obey the principal's lawful instructions; the agent may not follow instructions that are illegal or unethical.

The agent's duty of confidentiality continues after termination, but the agent may disclose information required by law or to defend against a claim.

An agent may represent a buyer and a seller in the same transaction only with informed written consent to dual or designated agency.

The Consumer Notice must explain that a licensee may act as a seller's agent, buyer's agent, dual agent, or transaction licensee, and that the consumer may choose the relationship.

The notice must be provided at the first substantive contact and before the consumer discloses confidential information.

A licensee must disclose the broker's compensation and whether the broker will share compensation with another broker.

A licensee must disclose any interest in a property or in a service provider recommended to the consumer.

A licensee must disclose known material defects in the property and may not conceal them.

A licensee must disclose the status of the licensee as an agent of the seller or buyer in all advertising and communications.

A licensee must provide the seller's property disclosure statement to the buyer and explain the buyer's right to rescind if the disclosure is not provided.

A licensee must disclose any referral fee or thing of value received in connection with the transaction.

The listing agreement must state the type of listing (exclusive right to sell, exclusive agency, or open) and the compensation terms.

The listing agreement must state the broker's authority to advertise, show, and negotiate the sale of the property.

The buyer agency agreement must state whether it is exclusive and the compensation the buyer will pay if the seller does not pay the full amount.

The buyer agency agreement must state the term and the protection period, if any.

The listing agreement may not include a net listing or an automatic renewal clause without separate initials.

The broker must disclose any compensation received from a buyer or third party in the listing agreement.

The seller may terminate the listing agreement for cause if the broker fails to perform the agreed services.

The broker must provide a copy of the signed agreement to the client.

The mortgage note states the principal, interest rate, payment schedule, and maturity date; the mortgage secures the note.

A fixed-rate mortgage has a constant interest rate; an adjustable-rate mortgage adjusts based on an index and margin with caps.

The lender must provide a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing.

The ability-to-repay rule requires the lender to consider income, assets, employment, and debts; the qualified mortgage rule provides a safe harbor.

The FHA loan program requires mortgage insurance and has loan limits; the VA loan program guarantees loans for eligible veterans.

The LTV ratio is the loan amount divided by the property value; a higher LTV increases the lender's risk and may require PMI.

The escrow account holds funds for taxes and insurance; the lender may require a cushion of up to 1/6 of annual disbursements.

The borrower may prepay the loan without penalty unless the note provides otherwise; prepayment penalties are restricted for certain loans.

The Closing Disclosure must be provided at least 3 business days before consummation; the borrower may waive the waiting period only in a bona fide emergency.

The Loan Estimate and Closing Disclosure must use the same format and terminology so the borrower can compare the estimates.

RESPA Section 8 prohibits kickbacks and unearned fees; Section 9 limits the amount a seller may require the buyer to pay for title insurance.

The settlement agent must provide an itemized statement of charges and must disburse funds in accordance with the closing instructions.

The seller typically pays the realty transfer tax in Pennsylvania; the parties may negotiate a different allocation in the agreement of sale.

The title insurance premium is based on the promulgated rate schedule; the lender's policy and owner's policy are separate charges.

Prorations of taxes, rents, and utilities are calculated as of the closing date; the seller credits the buyer for prepaid items.

The deed must be recorded with the county recorder of deeds to provide constructive notice and protect the buyer's title.

A deed must be in writing, identify the parties and the property, contain words of conveyance, be signed by the grantor, and be delivered and accepted.

A general warranty deed contains the broadest warranties; a special warranty deed limits the warranty to the grantor's period of ownership.

A quitclaim deed conveys only the grantor's interest and contains no warranty; it is often used in family transfers or to clear title.

Joint tenancy requires the four unities of time, title, interest, and possession; the right of survivorship passes the property to the surviving joint tenant.

Tenancy by the entirety is available only to spouses and includes the right of survivorship; a creditor of one spouse may not reach the property for a separate debt.

Adverse possession requires actual, open, notorious, exclusive, hostile, and continuous possession for the statutory period (21 years in Pennsylvania).

Recording a deed provides constructive notice; a subsequent purchaser who records first and takes without notice prevails in a race-notice state.

Title insurance protects against covered defects in title; the owner's policy remains in effect as long as the owner or the owner's heirs hold title.

A lease for more than one year must be in writing to satisfy the statute of frauds; a lease for one year or less may be oral in Pennsylvania.

The landlord must provide a written lease that clearly states the rent, term, and obligations of the parties.

The security deposit may not exceed two months' rent during the first year and one month's rent thereafter; the landlord must return it within 30 days of termination.

The landlord must provide a written notice of the right to a pre-move-out inspection and the right to be present at the inspection.

The implied warranty of habitability requires the landlord to maintain the premises in a safe and sanitary condition; the tenant may not waive it.

The landlord may evict only through the judicial process; self-help eviction is prohibited.

The property manager must maintain separate trust accounts for owner funds and must provide an accounting to the owner.

The property manager must comply with fair housing laws and may not discriminate in the rental of property.

A contract for the sale of real estate must be in writing and signed by the party to be charged to satisfy the statute of frauds.

An offer must be communicated to the offeree and must be definite in its terms; acceptance must be communicated to the offeror.

A counteroffer terminates the original offer and creates a new offer that the original offeror may accept or reject.

Consideration must be bargained for; earnest money is consideration for the buyer's promise and is held in escrow.

A contingency is a condition that must be satisfied for the contract to proceed; the parties must act in good faith to satisfy contingencies.

A breach of contract may entitle the non-breaching party to damages, specific performance, or rescission.

The parol evidence rule excludes prior or contemporaneous oral statements that contradict a fully integrated written contract.

Time is of the essence when the contract so states; deadlines for inspections and financing are strictly enforced.

The sales comparison approach is the most reliable for residential property; the appraiser adjusts comparable sales for differences from the subject.

The cost approach is used for new construction and unique properties; it estimates replacement cost new minus depreciation plus land value.

The income approach capitalizes net operating income; the capitalization rate is derived from comparable sales.

The gross rent multiplier is the sale price divided by the gross monthly rent; it is a quick screening tool for income property.

An appraisal must comply with USPAP and be prepared by a licensed or certified appraiser; a CMA is not an appraisal.

The appraiser must consider the highest and best use of the property in the valuation.

Adjustments are applied to the comparable sale, not the subject property; superior features are subtracted and inferior features are added.

Market value assumes a willing buyer and seller, both acting prudently and without undue pressure, and a reasonable exposure time.

The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability.

Pennsylvania's Human Relations Act adds ancestry, age (40+), and non-job-related handicap to the protected classes for housing.

Prohibited practices include refusing to rent or sell, steering, blockbusting, redlining, and discriminatory advertising.

Reasonable accommodations and modifications must be permitted for persons with disabilities; the landlord may not charge a pet deposit for a service animal.

Familial status protection covers households with children under 18 and pregnant women; occupancy standards must be reasonable.

HUD complaints must be filed within one year; Pennsylvania Human Relations Commission complaints generally must be filed within 180 days.

The Mrs. Murphy exemption applies to owner-occupied buildings with no more than four units, but advertising must still comply with the law.

Fair housing testing and disparate impact analysis can establish discrimination without proof of intent.

The Code of Ethics requires honesty and prohibits misrepresentation of material facts in all communications.

Article 1 requires the Realtor to avoid exaggeration, misrepresentation, and concealment of pertinent facts.

Article 2 prohibits the Realtor from making false or misleading statements about the property or the transaction.

Article 9 requires that all agreements be in writing and that the parties receive copies.

Article 12 requires disclosure of compensation from more than one party and consent to dual compensation.

A licensee must not engage in deceptive advertising or make misleading claims about services or commissions.

A licensee must protect confidential information and may not use it for personal benefit.

A licensee must report unethical conduct of other licensees to the appropriate board or commission when required.

The broker is responsible for supervising all affiliated licensees and ensuring compliance with RELRA and Commission rules.

Escrow accounts must be separate from the broker's operating accounts and must be reconciled monthly.

The broker must maintain a ledger for each transaction showing all receipts and disbursements.

The broker must not disburse escrow funds without written authorization from the parties or a court order.

The broker must ensure that all advertising includes the broker's name and license number.

The broker must maintain records of agency agreements, disclosures, and transaction files for at least three years.

The broker must notify the Commission of changes in affiliation, address, or license status.

The broker must ensure that affiliated licensees complete continuing education and maintain active licenses.

The Pennsylvania Municipalities Planning Code governs zoning, subdivision, and land development for municipalities that adopt it.

Zoning ordinances regulate use, density, lot size, setbacks, height, and bulk; nonconforming uses may continue but may not be expanded without relief.

A variance grants relief from the literal terms of the ordinance where unnecessary hardship exists; a special exception is granted where the ordinance allows the use.

The zoning hearing board hears appeals from zoning officer decisions and requests for variances and special exceptions; appeals must be filed within 30 days.

Subdivision and land development plans are reviewed by the planning commission and approved by the governing body.

A building permit is required before construction; a certificate of occupancy is required before occupancy.

The comprehensive plan guides land use but is not itself a regulation; zoning must be consistent with the plan.

Historical districts and floodplain regulations may impose additional restrictions on use and construction.

RELRA defines brokerage and requires a license for persons who, for another and for a fee, sell, buy, rent, manage, or negotiate real estate.

A salesperson must be affiliated with a broker and may not collect compensation directly from a client.

The Commission may suspend or revoke a license for fraud, misrepresentation, negligence, or failure to account for funds.

A licensee must disclose a personal interest in a property in writing before an offer is made.

The Real Estate Seller Disclosure Law requires a seller's property disclosure statement for residential resale.

A licensee must maintain confidentiality of client information after termination of the agency relationship.

The Real Estate Recovery Fund provides compensation to consumers who obtain a judgment against a licensee and cannot collect.

A licensee must report criminal convictions and disciplinary actions to the Commission as required by regulation.

The Commission's regulations require licensees to retain transaction records for at least three years.

Continuing education is 14 hours per biennial renewal, including ethics and fair housing.

Advertising must include the broker's name and license number and must be supervised by the broker.

A licensee must notify the Commission of a change of address within 10 days.

Commingling of client funds with the broker's funds is prohibited.

A licensee must complete additional education if the license is suspended or revoked and the licensee seeks reinstatement.

The Commission may audit escrow accounts and transaction records.

A licensee may not pay a commission to an unlicensed person for brokerage activity.

Agency is a fiduciary relationship created by express agreement, implied agreement, estoppel, or ratification.

The agent owes the principal loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting.

The agent owes customers honesty, accuracy, and disclosure of known material defects.

Dual agency requires informed written consent of both parties; designated agency allows different licensees to represent each party.

The agent must disclose all offers to the principal promptly unless the principal directs otherwise in writing.

The agent may not purchase the principal's property without full written disclosure of the agent's interest.

The agency relationship terminates by performance, expiration, mutual agreement, revocation, renunciation, death, or bankruptcy.

The duty of confidentiality continues after termination of the agency relationship.

The Consumer Notice must be provided at the first substantive contact and acknowledged in writing by the consumer.

The notice explains seller agency, buyer agency, dual agency, designated agency, and transaction licensee status.

A customer is entitled to honesty, accuracy, and disclosure of known material defects, but not to loyalty or confidentiality.

A licensee must disclose any financial interest in a property or in a service provider recommended to the client.

The seller's property disclosure statement must be delivered to the buyer before the buyer makes an offer.

A licensee must disclose the broker's compensation and any referral fees in writing.

A licensee must disclose whether the licensee represents the buyer, the seller, both, or neither.

A licensee must disclose any business relationship with a lender, title company, or inspector recommended to the client.

An exclusive right to sell listing entitles the broker to a commission regardless of who procures the buyer.

An exclusive agency listing entitles the broker to a commission unless the seller personally procures the buyer.

An open listing pays only the broker who procures the buyer.

A net listing is prohibited in Pennsylvania because it creates a conflict of interest.

The listing agreement must state the beginning and expiration dates and the compensation terms.

A buyer agency agreement must be in writing and signed before the buyer's first substantive contact.

Automatic renewal clauses in listing agreements are prohibited unless the seller initials the renewal provision separately.

A protection period clause extends the broker's right to a commission for buyers introduced during the term.

A mortgage is a lien on real property securing a debt; the mortgagor is the borrower and the mortgagee is the lender.

A deed of trust conveys title to a trustee to secure a debt; Pennsylvania commonly uses mortgages.

Conventional loans are not government-insured; FHA loans are insured by HUD and VA loans are guaranteed by the VA.

Loan-to-value (LTV) = loan amount ÷ property value; a higher LTV generally requires mortgage insurance.

PITI = principal + interest + taxes + insurance; the lender may collect 1/12 of annual taxes and insurance monthly.

RESPA requires a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing.

The ability-to-repay rule requires lenders to verify income, assets, employment, and debts.

An adjustable-rate mortgage adjusts by an index plus margin, subject to periodic and lifetime caps.

RESPA applies to federally related mortgage loans for one-to-four family residential property; Section 8 prohibits kickbacks and unearned fees.

The Closing Disclosure itemizes loan costs, other costs, taxes, prepaid items, and escrow account calculations.

The Loan Estimate must be delivered within 3 business days of application.

Settlement agents in Pennsylvania are licensed by the Department of Banking and Securities.

The seller typically pays the realty transfer tax in Pennsylvania (1% state plus 1% local), though the parties may negotiate otherwise.

The deed must be recorded with the county recorder of deeds to provide constructive notice.

Escrow account rules limit the cushion a lender may require to 1/6 of annual disbursements.

A HUD-1 is used for certain loans not covered by the Closing Disclosure.

Tenancy in common has no right of survivorship; joint tenancy has the right of survivorship and requires the four unities.

Tenancy by the entirety is available only to spouses and includes the right of survivorship.

A general warranty deed contains covenants of seisin, quiet enjoyment, warranty, and further assurances.

A quitclaim deed conveys only whatever interest the grantor has, with no warranty.

Adverse possession in Pennsylvania requires actual, open, notorious, exclusive, hostile, and continuous possession for 21 years.

Title passes on delivery and acceptance of a deed; recording provides constructive notice.

Title insurance protects the lender (loan policy) and the owner (owner's policy) against covered defects.

Pennsylvania is a race-notice state: a subsequent purchaser who records first and takes without notice prevails.

A lease is both a conveyance of a leasehold estate and a contract; the four leasehold estates are tenancy for years, periodic tenancy, tenancy at will, and tenancy at sufferance.

The Pennsylvania Residential Lease must disclose the name and address of the landlord or the landlord's agent and the bank where the security deposit is held.

Security deposits may not exceed two months' rent for the first year and one month's rent thereafter.

The landlord must return the security deposit with an itemized list of damages within 30 days of lease termination.

The implied warranty of habitability applies to residential leases and cannot be waived.

Self-help eviction is prohibited; the landlord must use the judicial eviction process.

Notice to terminate a month-to-month tenancy is generally 30 days.

Property managers must keep trust funds in a separate escrow account and may not commingle owner funds.

A valid contract requires offer, acceptance, consideration, legal capacity, and legality of purpose.

Real estate contracts must satisfy the statute of frauds (written and signed).

An offer may be revoked before acceptance; a counteroffer terminates the original offer.

An option contract gives the buyer the right to purchase within a set period; consideration is required.

Earnest money is consideration and evidence of good faith; it is held in escrow.

Contingencies must be satisfied within stated deadlines; failure to waive or remove a contingency can allow the seller to terminate.

The parol evidence rule excludes prior or contemporaneous oral statements that contradict a fully integrated written contract.

A breach may entitle the non-breaching party to damages, specific performance, or rescission.

The sales comparison approach estimates value by adjusting comparable sales for differences in location, size, condition, and features.

The cost approach estimates value as replacement cost new minus depreciation plus land value.

The income approach capitalizes net operating income: Value = NOI ÷ capitalization rate.

Gross Rent Multiplier (GRM) = sale price ÷ gross monthly rent.

An appraisal is a defensible opinion of value prepared by a licensed or certified appraiser; a CMA is a broker's opinion.

Adjustments are applied to the comparable, not the subject: if the comparable is superior, subtract; if inferior, add.

The three approaches to value are sales comparison, cost, and income.

Highest and best use is the reasonably probable, legally permissible, physically possible, financially feasible, and maximally productive use of a property.

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability.

Pennsylvania's Human Relations Act adds ancestry, age (40+), and non-job-related handicap to the protected classes for housing.

Prohibited practices include refusing to sell or rent, steering, blockbusting, redlining, discriminatory advertising, and imposing different terms or conditions.

Reasonable accommodations and modifications must be permitted for persons with disabilities.

Familial status protection covers households with children under 18 and pregnant women.

HUD complaints must be filed within one year; Pennsylvania Human Relations Commission complaints generally must be filed within 180 days.

The Mrs. Murphy exemption applies to owner-occupied buildings with no more than four units, but advertising must still comply.

Fair housing testing and disparate impact analysis can establish discrimination without proof of intent.

The National Association of Realtors Code of Ethics is enforced by local boards; Article 1 requires honesty.

Article 2 prohibits misrepresentation of material facts.

Article 16 requires exclusive representation of the client's interests.

Pennsylvania's Unfair Trade Practices and Consumer Protection Law prohibits deceptive or misleading conduct in trade or commerce.

Licensees must not advertise property without the owner's consent and must disclose their licensed status in advertising.

Steering, blockbusting, and panic selling are unethical and illegal.

A licensee may not offer a thing of value to a consumer as an inducement without disclosure and compliance with RESPA and state law.

A licensee must disclose known material defects and may not make false statements about the property or the transaction.

The broker is responsible for supervising all affiliated licensees, including their advertising, escrow handling, and compliance with RELRA.

Escrow accounts must be clearly labeled, and the broker must maintain a ledger for each transaction.

Deposits must be made promptly, generally the next banking day after receipt or as stated in the agreement.

The broker must reconcile the escrow account monthly and retain records for at least three years after disbursement.

A broker may not use escrow funds for the broker's own expenses or for another transaction.

A written office policy manual should address agency relationships, advertising, fair housing, escrow, and confidentiality.

The broker must ensure that affiliated licensees complete required continuing education and maintain active licenses.

Records of agency agreements, transaction files, and disclosures must be retained and made available to the Commission upon request.

The Pennsylvania Municipalities Planning Code (Act 247 of 1968) governs zoning, subdivision, and land development.

Zoning ordinances divide land into districts and regulate use, density, lot size, setbacks, height, and bulk.

A variance grants relief from the literal terms of the ordinance where unnecessary hardship exists.

A special exception is granted by the zoning hearing board where the ordinance allows it.

The zoning hearing board hears appeals from zoning officer decisions; appeals must be filed within 30 days.

Subdivision and land development plans are reviewed by the planning commission and approved by the governing body.

Municipalities may adopt comprehensive plans to guide land use; zoning must be consistent with the plan.

Historical districts and floodplain regulations may impose additional restrictions on use and construction.