Rules and Regulations
What the exam tests
Rules and Regulations covers the Pennsylvania Real Estate Commission’s licensing, education, renewal, advertising, and disciplinary framework. Questions often turn on who must be licensed, what a salesperson may do without a broker, and what conduct triggers sanctions.
Core rules
- A salesperson license must be affiliated with a sponsoring broker; the salesperson may not accept compensation directly from a client or operate independently.
- Broker applicants must meet experience and education requirements; both licenses renew on a two-year cycle and require Commission-approved continuing education.
- The Commission may suspend, revoke, or fine for violations such as undisclosed dual agency, commingling, false advertising, failure to supervise, or unlicensed activity.
- Unlicensed assistants may perform clerical and administrative tasks but may not negotiate, show property for compensation, or solicit listings.
- Referral fees may not be paid to unlicensed persons for real estate brokerage activity.
Worked example
A salesperson’s friend sends a buyer to the salesperson and asks for a $1,000 referral fee. The salesperson’s broker agrees. Even if the friend is paid through the broker, paying a referral fee for brokerage activity to an unlicensed person violates Pennsylvania licensing rules. The salesperson and broker face discipline; the fee is not a lawful workaround.
Traps that cost marks
Do not assume a salesperson can “hang” a license without a broker. Do not treat an expired license as harmless during a transaction. Do not confuse continuing education hours with pre-licensing education. Do not rely on another state’s license to practice in Pennsylvania without the required Pennsylvania license.