PA RE Broker flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Real Estate Licensing and Registration Act

Pennsylvania statute, 63 P.S. § 455.101 et seq., that creates the State Real Estate Commission and governs licensing, agency duties, escrow, and discipline of brokers and salespersons.

Consumer Notice

Written Pennsylvania disclosure of business relationships that must be given at the first substantive contact and signed by the consumer before confidential information is shared.

Designated agency

Arrangement in which the broker-in-charge appoints different licensees within one brokerage to represent the buyer and the seller, preserving confidentiality between the two clients.

Exclusive right to sell

Listing that entitles the broker to a commission no matter who procures the buyer, including a buyer the seller finds personally during the listing term.

Net listing prohibited

Pennsylvania forbids listing agreements where the broker keeps all proceeds above a stated seller net, because the broker's interest conflicts with the seller's.

Loan-to-value ratio

Loan amount divided by the property's appraised value or purchase price, whichever is lower; higher ratios increase lender risk and usually trigger mortgage insurance.

Closing Disclosure timing

Under RESPA the borrower must receive the Closing Disclosure at least three business days before consummation, allowing time to compare it with the Loan Estimate.

Pennsylvania realty transfer tax

Tax of one percent state plus one percent local on the consideration paid for real property, ordinarily paid by the seller and collected when the deed is recorded.

Tenancy by the entirety

Form of co-ownership available only to married couples that includes the right of survivorship and shields the property from a creditor of just one spouse.

Race-notice recording

Recording rule under which a later purchaser prevails only if that purchaser records first and takes without notice of an earlier unrecorded interest.

Security deposit limit

Pennsylvania caps residential deposits at two months' rent in the first year of tenancy and one month's rent after that, returnable with an itemized list within 30 days.

Implied warranty of habitability

Nonwaivable Pennsylvania rule requiring a residential landlord to keep the premises safe and sanitary, regardless of any lease clause disclaiming the obligation.

Statute of frauds

Rule requiring real estate sale contracts and leases over one year to be written and signed by the party to be charged before a court will enforce them.

Capitalization rate

Rate used in the income approach; value equals net operating income divided by the cap rate, so a lower cap rate produces a higher indicated value.

Highest and best use

Reasonably probable use that is legally permissible, physically possible, financially feasible, and maximally productive, as analyzed by an appraiser.

Familial status

Fair housing protected class covering households with children under eighteen and pregnant women; occupancy limits must be reasonable and applied uniformly.

Blockbusting

Illegal practice of inducing owners to sell by suggesting that members of a protected class are moving into the neighborhood and will lower property values.

Steering

Illegal practice of guiding buyers or renters toward or away from neighborhoods based on race, religion, national origin, disability, or another protected class.

Escrow reconciliation

Monthly comparison of the broker's trust bank statement with individual transaction ledgers, required to confirm that client funds are intact and properly accounted for.

Commingling

Prohibited mixing of client or tenant funds with the broker's or manager's own operating money; trust funds must sit in a separate labeled escrow account.

Zoning variance

Relief granted by the zoning hearing board from a literal ordinance requirement where strict application produces unnecessary hardship unique to the property.

Special exception

Use approved by the zoning hearing board because the ordinance expressly lists it for the district, subject to stated standards and often a hearing.

Nonconforming use

Lawful use that predates a zoning ordinance and may continue, though it generally cannot be expanded or resumed after abandonment without zoning relief.

Dual agency consent

Written informed agreement by both buyer and seller allowing one broker to represent both, with the broker neutral and unable to advocate for either side.

Buyer agency agreement

Written Pennsylvania contract signed before first substantive contact that sets the term, compensation, exclusivity, and any protection period for the buyer's broker.

Fiduciary duty of accounting

Agent's obligation to track and promptly remit all money and property entrusted by the principal, keeping client funds separate from personal funds.

Promissory note

Borrower's written promise to repay a stated principal with interest on a set schedule; the mortgage or deed of trust supplies the security for that promise.

Private mortgage insurance

Coverage usually required when the loan exceeds eighty percent of value; it protects the lender and may be canceled as the loan balance falls under federal rules.

Earnest money

Deposit showing buyer good faith, held in escrow and applied to the purchase price at closing or forfeited as agreed if the buyer defaults.

General warranty deed

Deed containing covenants of seisin, quiet enjoyment, warranty, and further assurances, giving the broadest protection against title defects.

Quitclaim deed

Deed that transfers whatever interest the grantor holds with no warranties, commonly used in family transfers or to clear a cloud on title.

Reasonable accommodation

Change in rules, policies, or practices, such as waiving a no-pet rule for a service animal, needed so a person with a disability can use and enjoy housing.