Real Estate Law
What the exam tests
This domain tests the legal hierarchy a Pennsylvania broker applies daily: constitutional and statutory law, Real Estate Commission regulations, common-law agency and contract doctrine, and local ordinances. Expect questions asking which rule controls when a licensing regulation, a standard form, and a client instruction conflict.
Core rules
- The Real Estate Licensing and Registration Act (RELRA), 63 P.S. § 455.101 et seq., is the licensing statute; 49 Pa. Code Chapter 35 contains Commission regulations.
- Under the statute of frauds, a contract for the sale of an interest in land must be written and signed by the party to be charged; listing and buyer agency agreements must also be written to be enforceable.
- Common-law agency supplies fiduciary duties unless modified by statute or written agreement. Federal laws-Fair Housing, RESPA, TILA, FIRPTA-overlay state practice.
- Licensees may complete preprinted agreement-of-sale forms, but drafting legal provisions or advising on title, probate, or tax consequences is unauthorized practice of law.
Worked example
A seller orally agrees to sell a duplex for $410,000 and the buyer pays $5,000 cash. Later the seller refuses to close. The buyer cannot sue for specific performance because the sale contract is not signed and written; the statute of frauds bars enforcement. The deposit may create a restitution claim, but it does not make the oral land contract enforceable.
Traps that cost marks
Do not confuse a broker’s authority to fill in blanks with authority to give legal advice. Do not assume a written standard form overrides RELRA or Commission rules. Do not treat an oral listing agreement as enforceable merely because the commission was discussed.