Under49 Pa. Code § 35.324 (Handling of Deposits and Escrow Money), all earnest money deposits must be promptly transmitted to the employing broker for deposit into an escrow account.

A salesperson cannot hold earnest money or maintain an escrow account on their own.

Brokers are responsible for ensuring that all escrow funds are properly handled and protected from commingling.

Why the other answers are incorrect:

Option A (Salesperson Holding Escrow Funds):Salespersons are prohibited from maintaining independent escrow accounts.

Option C (Holding Funds for 3 Days):Earnest money must be turned over to the broker as soon as possible; salespersons cannot hold it for any period.

Option D (Returning to Buyer for Transmission):Earnest money must go directly to the broker, not back to the buyer.

According to49 Pa. Code § 35.305(Business Name on Advertisements), alladvertisements placed by a salesperson must include the broker’s name.

Thebroker's name is missing, which violates Pennsylvania advertising requirements (Option C - Correct).

The property address does not need to be in the ad (Option A - Incorrect).

Salesperson names are allowed but must be accompanied by the broker's name (Option B - Incorrect).

MLS numbers are not a requirement in all advertisements (Option D - Incorrect).

Under63 P.S. § 455.803 (Real Estate Recovery Fund), if the Pennsylvania Real Estate Commissionpays out money from the Real Estate Recovery Fund due to a licensee’s misconduct, the license is automatically suspended.

A suspended license means the person cannot legally practice real estate until they reimburse the Recovery Fund for the full amount paid, plus interest.

This is a consumer protection measure to ensure that licensees who cause financial harm cannot continue practicing until restitution is made.

Once repayment is made, the licensee must apply for reinstatement, which is not automatic and may require a hearing.

Why the other answers are incorrect:

Option A (Active):The license does not remain active after a payout from the fund.

Option B (Inactive):"Inactive" means the licensee voluntarily stopped practicing, which is not the case here.

Option C (Reinstated):Reinstatement does not occur automatically; the licensee must repay the fund and petition for reinstatement.

Under49 Pa. Code § 35.326 (Escrow Accounts and Interest),interest earned on escrow accounts belongs to the party or parties as determined by the terms of the contract or agreement.

A broker cannot personally benefit from interest earned on escrow funds unless the contract explicitly allows it.

The purchase agreement must specify how the interest is handled, whether it is payable to the buyer, seller, or split between parties.

Why the other answers are incorrect:

Option A (Payable to the Broker):A broker cannot keep interest from an escrow account unless agreed upon in writing.

Option B (Equally Divided Between Buyer and Seller):Interest division is not automatic; it must be outlined in the contract.

Option C (Equally Divided Between Brokers):Brokers do not have rights to escrow interest unless explicitly agreed upon.

Under49 Pa. Code § 35.332 (Exclusive Listing Agreements), all listing agreements must specify the services provided, the duration of the agreement, and the compensation of the broker. However, there is no requirement to include the broker’s license number.

A listing agreement must clearly state the terms under which the broker will perform services and how they will be compensated.

The duration of the agreement must also be specified to prevent misunderstandings.

Why the other answers are incorrect:

Option A (Description of Services):This is a required component of the listing agreement.

Option B (Duration of Listing):A listing agreement must have a start and end date.

Option D (Broker’s Compensation):Compensation must be clearly stated in the listing agreement.

Under49 Pa. Code § 35.241 (Supervision and Operation of Offices),a licensed real estate salesperson must be supervised by a broker or an associate broker designated by the broker.

A broker may assign an associate broker (who has passed the broker exam but does not own the brokerage) to oversee salespersons.

Salespersons cannot work independently; they must work under the direction of a licensed broker or an assigned associate broker.

Why the other answers are incorrect:

Option A (Team Leader):A team leader is not a formal supervisory position under Pennsylvania law unless they are an associate broker or broker.

Option B (Salesperson):A salesperson cannot supervise other salespersons.

Option D (Transaction Coordinator):A transaction coordinator handles paperwork but does not supervise licensees.

Before advertising, showing, or offering any property, areal estate licensee must obtain written authorization from the property owner. This is a legal requirement to ensure that the licensee has the right to represent the property.

49 Pa. Code § 35.331 (Written Agreements Generally)states that a real estate licenseemusthave a written agreement with the property ownerbefore performing any real estate services, including advertising and showing the property.

49 Pa. Code § 35.332 (Exclusive Listing Agreements)further clarifies that exclusive agreementsmust be in writingand signed by both the owner and broker.

Without the owner's written consent, a licensee could be subject to penalties or disciplinary action from the Pennsylvania Real Estate Commission.

Why the other answers are incorrect:

Option A (Preliminary Appraisal):Licensees are not required to conduct appraisals unless they are certified appraisers.

Option C (List of Clients):There is no requirement to provide a history of past transactions before listing or advertising a property.

Option D (Comparative Market Analysis - CMA):A CMA is useful for pricing but isnot required before advertising or showing a property.