PA RE Broker key terms

The state licensing and disciplinary body within the Department of State that issues broker and salesperson licenses, writes regulations, investigates complaints, and imposes penalties for violations of the licensing act.

Pennsylvania statute governing licensing, broker supervision, advertising, disclosure, and prohibited conduct; it sets education and experience requirements and authorizes the Commission to discipline licensees.

The licensed broker whose name appears on the firm's license and who is legally accountable for supervising all affiliated licensees, maintaining records, and handling trust funds at that office.

A broker's duty to train, monitor, and control affiliated licensees, review their documents and advertising, and ensure compliance; failure to supervise can itself be grounds for discipline even absent personal misconduct.

Depositing money belonging to others, such as a buyer's deposit, into a broker's personal or general operating account instead of a designated escrow or trust account; a serious licensing violation in Pennsylvania.

A federally insured account, separate from operating funds, in which a broker holds tenant security deposits and rents received on behalf of owners, with records showing each owner's and tenant's share.

Money a buyer gives upon signing an agreement of sale to show good faith; it is typically held in escrow and applied to the purchase price or forfeited under the contract's default terms.

Pennsylvania's term for the written real estate purchase contract; it states price, financing, inspections, contingencies, settlement date, and remedies for default, and must be signed to be enforceable.

Legal rule requiring certain contracts, including agreements for the sale of land and leases longer than one year, to be in writing and signed by the party to be charged.

Contract clause making stated deadlines mandatory, so a party who misses a date is in default; absent such language, courts may treat deadlines as flexible targets.

Equitable remedy in which a court orders a breaching party to carry out the contract, commonly used in land sales because each parcel is considered unique and money damages may be inadequate.

Written instrument that transfers title to real property; it must identify grantor and grantee, contain words of conveyance, describe the property, and be signed by the grantor and delivered.

Deed containing the broadest covenants of title, including seisin, right to convey, quiet enjoyment, freedom from encumbrances, and warranty defense, covering the entire chain of title.

Deed in which the grantor warrants title only against claims arising through the grantor, not against defects created by earlier owners in the chain of title.

Deed that conveys whatever interest the grantor may hold without any warranty of title; common for family transfers, clearing title defects, and gifts.

Filing a deed or other instrument with the county recorder of deeds to give public notice; in Pennsylvania recording is generally done in the county where the property sits.

Policy indemnifying the insured against losses from title defects such as liens, forgeries, or missing heirs; a lender's policy protects the mortgagee while an owner's policy protects the buyer.

Title reasonably free of defects and encumbrances that a prudent buyer would accept; sale contracts usually condition the seller's duty to convey on delivering such title.

Right held by one party to use another's land for a specific purpose, such as a driveway or utility line; it is an encumbrance that runs with the land and can affect value.

Easement acquired through open, notorious, continuous, and adverse use of another's land for the statutory period, without the owner's permission.

Doctrine allowing a person who openly, continuously, exclusively, and hostilely occupies another's land for the statutory period to acquire title, potentially clouding a record owner's title.

Form of co-ownership available only to married couples in Pennsylvania, giving each spouse an undivided interest with right of survivorship and protection from individual creditors.

Co-ownership with equal undivided shares and right of survivorship, so a deceased owner's interest passes automatically to the surviving owners outside probate.

Co-ownership in which owners hold separate, possibly unequal fractional shares with no right of survivorship; each interest may be sold, mortgaged, or devised by will.

Municipal law dividing land into districts and regulating permitted uses, lot size, setbacks, height, and density; nonconforming uses and variances provide limited relief.

Administrative relief from a zoning ordinance's dimensional or use requirement granted by a zoning hearing board upon a showing of unnecessary hardship unique to the property.

Use permitted in a zoning district only after the zoning hearing board approves it under ordinance standards, such as a church or school in a residential district.

A use that lawfully existed before a zoning ordinance was adopted but no longer complies with current rules; it may generally continue but often cannot expand or resume after abandonment.

Municipal approval process for dividing land into lots or improving sites, typically involving a planning commission review, submission of plans, and required public improvements.

Development governed by recorded declarations, bylaws, and an owners association, with common areas and restrictions; resale requires disclosure of association documents and fees.

Private limitation placed in a deed or declaration, such as a setback or use restriction, that binds later owners; enforceable by affected parties even where zoning would allow the use.

Fiduciary relationship created when a principal authorizes an agent to act on the principal's behalf, imposing duties of loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.

Written contract in which a buyer engages a broker to locate property and negotiate on the buyer's behalf, stating term, territory, compensation, and whether it is exclusive.

Employment contract between a seller and broker authorizing marketing of property and payment of commission; types include exclusive right to sell, exclusive agency, and open listing.

Situation in which one broker represents both buyer and seller in the same transaction; Pennsylvania requires written consent and limits the broker's ability to advocate for either side.

Arrangement in which the broker designates one licensee to represent the buyer and another to represent the seller within the same firm, preserving full advocacy for each client.

Pennsylvania form on which a seller discloses known material defects and conditions of the property; it is not a warranty and does not replace the buyer's own inspections.

Traditional rule that a buyer takes property as found and bears responsibility for inspecting it, subject to exceptions for seller misrepresentation and required statutory disclosures.

Federal and Pennsylvania laws prohibiting discrimination in sale, rental, financing, and advertising based on protected classes such as race, color, religion, sex, disability, familial status, and ancestry.

Directing prospective buyers or tenants toward or away from neighborhoods based on protected characteristics; a fair housing violation even when the agent believes the intent is helpful.

Inducing homeowners to sell by suggesting that members of a protected class are moving into the area and will lower property values; illegal under federal and state fair housing law.

Federal Real Estate Settlement Procedures Act requiring disclosure of settlement costs, limits on escrow accounts, and prohibiting kickbacks and unearned fees for referral of settlement business.

Accounting of money paid and received at closing, itemizing charges to buyer and seller; federal rules require the closing disclosure form for most residential mortgage loans.

Relationship in which a broker refers business to a settlement provider with common ownership; RESPA requires written disclosure of the arrangement and does not permit required use.

Loan amount divided by appraised value or purchase price, whichever is lower; it determines mortgage insurance needs and influences interest rate and approval.

Insurance protecting the lender against borrower default on high loan-to-value loans; it adds to monthly payment and may be cancelable as equity grows under federal rules.

Schedule of equal periodic payments that gradually reduces loan principal while covering interest; early payments are mostly interest, and the loan balance falls slowly at first.

Loan whose interest rate changes at set intervals based on an index plus margin, with caps limiting each adjustment and the lifetime increase; initial rate is usually below fixed rates.

An appraiser's supported opinion of value based on inspection, comparable sales, and market analysis, used by lenders to confirm the property supports the loan amount.

Broker's analysis of recent sales, pending listings, and active competition to suggest a listing or offer price; it is not an appraisal and cannot be used to value property for lending.

Cooperative database where participating brokers share listing information and offer compensation to cooperating brokers; rules govern submission timing, accuracy, and display of listings.

Money a tenant pays a landlord as protection against unpaid rent or damage; Pennsylvania law limits its maximum, requires a written receipt, and regulates its holding and return.

Legal promise that rented housing will be fit for human habitation and kept in repair, regardless of what the lease says; a landlord cannot waive it by contract.

Condition in which a landlord's failure to maintain the premises makes the property unusable, allowing the tenant to treat the lease as breached and vacate without further rent liability.

Arrangement in which a neutral third party holds money or documents until conditions are met, such as holding a deposit until closing or funds until repairs are verified.