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Quizzes > Business & Finance

PA Real Estate Practice Exam: Test Your Licensing Knowledge

Quick, free Pennsylvania real estate practice test. Instant results.

Editorial: Review CompletedCreated By: Damien LawlorUpdated Aug 23, 2025
Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration quiz coral background free PA real estate practice exam on Pennsylvania licensing regulations

This PA real estate practice exam helps you check your grasp of Pennsylvania licensing rules and format before test day. If you need a quick refresh on basics, try our real estate fundamentals quiz. Build terms recall with a real estate vocabulary test, or see how your state stacks up with the hardest real estate exams.

What is the minimum age requirement to obtain a Pennsylvania real estate salesperson license?
18 years old
25 years old
16 years old
21 years old
Pennsylvania law requires applicants to be at least 18 to qualify for a salesperson license. This ensures legal adulthood and contractual capacity. The statutory minimum age is specified in the Real Estate Licensing and Registration Act.
How many hours of pre-licensing education are required for a Pennsylvania real estate salesperson license?
45 hours
75 hours
60 hours
90 hours
Pennsylvania requires 75 hours of approved pre-licensing education for salesperson licensing. This coursework covers real estate principles and practices. The hours ensure competency before taking the licensing exam.
Which entity administers the Pennsylvania real estate licensing exam?
Pa Department of Commerce
Pennsylvania Real Estate Commission
National Association of REALTORS®
PSI Exams
PSI Exams is the authorized testing service for Pennsylvania real estate licensing exams. They administer and score the real estate salesperson and broker exams. The Real Estate Commission contracts PSI to ensure standardized testing.
What score is required to pass the Pennsylvania real estate salesperson exam?
80%
75%
85%
70%
Candidates must achieve a score of 75% to pass the Pennsylvania real estate exam. This pass mark is set by the Commission to ensure competency. A scaled score ensures equal difficulty across exam forms.
How often must a Pennsylvania real estate license be renewed?
Every 3 years
Annually
Every 4 years
Every 2 years
Pennsylvania licenses expire every two years, as mandated by state law. Renewal requires CE compliance and payment of fees. This biennial cycle aligns renewal and CE reporting.
How many continuing education hours are required for renewal of a Pennsylvania real estate license?
16 hours
14 hours
12 hours
10 hours
Licensees must complete 14 hours of CE every two years for renewal. This includes 3 hours of ethics or professionalism. The Commission requires approved courses to ensure ongoing competence.
Where must a Pennsylvania real estate broker display their license?
Only online
In the main office
At every property showing
At their home
Brokers must display their license at the principal place of business where records are maintained. This requirement provides public notice and transparency. Branch offices require branch licenses displayed.
Which of the following describes an exclusive agency listing?
Any broker can earn commission if they procure a buyer
The broker can find multiple buyers
Only the listing broker can earn commission, unless the owner sells without an agent
Only the owner can sell and earn commission
An exclusive agency listing gives one broker the right to sell, but the owner retains the right to sell without paying commission. If the owner procures the buyer, no commission is due. This contrasts with exclusive right-to-sell.
Which fiduciary duty requires a licensee to keep client information private?
Obedience
Accounting
Disclosure
Confidentiality
Confidentiality obligates agents to withhold client information unless legally required to disclose. This duty survives the agency relationship. It builds trust and protects client interests.
What is the term for money put down by a buyer to show good faith?
Handling fee
Option fee
Earnest money deposit
Security deposit
An earnest money deposit demonstrates the buyer's commitment to the purchase agreement. It is held in escrow until closing or contract termination. It may be forfeited under certain conditions.
How long must a broker in Pennsylvania retain real estate transaction records?
1 year
5 years
3 years
Until closing
State regulations require brokers to keep transaction records for at least three years. This includes ledgers, contracts, and trust account records. It ensures accountability and compliance.
Which federal law prohibits discrimination in housing based on race and color?
Truth in Lending Act
Equal Credit Opportunity Act
Fair Housing Act
Real Estate Settlement Procedures Act
The Fair Housing Act bans discrimination in housing transactions based on race, color, religion, sex, familial status, or national origin. It is enforced by HUD. Agents must comply with its provisions.
What term describes land and all man-made improvements attached to it?
Personal property
Real property
Chattel
Fixture
Real property includes land and any permanent structures attached. This distinguishes it from personal property. It is transferred by deed.
Which office enforces Pennsylvania real estate license law?
Bureau of Professional and Occupational Affairs
Office of Consumer Protection
Pennsylvania Bar Association
Department of State News
The Bureau of Professional and Occupational Affairs regulates and enforces real estate licensing in PA. It oversees the Real Estate Commission. Complaints and discipline go through this bureau.
Which of the following is required in a valid real estate sales contract under the Statute of Frauds?
Written agreement signed by both parties
Oral promise
Verbal acknowledgment
Witness testimony
The Statute of Frauds requires real estate contracts to be in writing and signed by the parties to be enforceable. Oral agreements are not sufficient for land transactions. This prevents fraud and misunderstandings.
Which practice involves an agent representing both buyer and seller in the same transaction?
Designated agency
Dual agency
Subagency
Single agency
Dual agency occurs when an agent or firm represents both buyer and seller in one transaction. Written consent from both parties is required. It creates potential conflicts of interest.
What type of listing guarantees the broker a commission regardless of who sells the property?
Exclusive agency
Net listing
Exclusive right to sell
Open listing
An exclusive right to sell listing ensures the broker earns commission no matter who procures the buyer. Even if the owner sells, the broker is compensated. This gives brokers certainty of payment.
When must a broker provide a written dual agency disclosure to both parties?
Before negotiations begin
At closing
After contract acceptance
Within 30 days of listing
State regulations require brokers to disclose dual agency in writing before beginning negotiations to avoid undisclosed conflicts. Consent must be documented. Early disclosure protects all parties.
Which of the following is true about broker commissions in Pennsylvania?
They are negotiable between broker and client
They are set by the state commission
They cannot exceed 5% of sale price
They must be 6% of sale price
Broker commissions are always negotiable in Pennsylvania. No statutory rates exist. Agents and clients agree on terms in listing agreements.
What clause in an offer protects the buyer if the property appraisal is lower than the purchase price?
Financing contingency
Inspection contingency
Earnest money clause
Appraisal contingency
An appraisal contingency allows buyers to renegotiate or cancel if appraisal falls below the agreed price. It protects buyer financing. Without it, buyers risk paying over market value.
Which action violates Pennsylvania Real Estate Licensing Law regarding trust accounts?
Depositing checks within 3 days
Commingling personal funds with client funds
Using an interest-bearing escrow account
Maintaining client ledger cards
Commingling client funds with personal or business funds is prohibited. Trust accounts must segregate client monies. Violation can lead to disciplinary action.
What is the effect of the Statute of Limitations on real estate contract claims in Pennsylvania?
6 years for oral contracts
4 years for written contracts
1 year for all contracts
2 years for written contracts
Pennsylvania's Statute of Limitations allows four years to file suit on written real estate contracts. Oral contracts have a shorter period. After this, claims are barred.
Which type of estate grants ownership for the life of a specified person?
Estate at will
Fee simple
Life estate
Leasehold
A life estate conveys rights for the duration of a particular individual's life. Ownership reverts to the grantor or remainderman afterward. It limits alienation rights beyond the life tenant.
A broker who places a property sign without seller consent may be guilty of:
Undue influence
Conversion
Trespass
Commingling
Entering land or placing signage without permission constitutes trespass. Brokers need explicit seller authorization. Unauthorized entry violates property rights.
Which best describes 'bundle of rights' in real property?
Only the right to sell
Easements and liens only
All legal rights associated with property ownership
Rights to personal property
The bundle of rights includes possession, control, enjoyment, exclusion, and disposition. It represents the full legal powers of ownership. Individual rights can be separated or leased.
Which formula calculates net operating income (NOI)?
Operating expenses minus taxes
Gross income minus operating expenses
Sale price minus cost of sale
Gross income minus debt service
NOI is gross operating income minus operating expenses, before debt service and taxes. It measures property profitability. Lenders and investors use NOI for valuation.
What is the deadline for filing an assessment appeal with the county board of revision in Pennsylvania?
April 15
December 31
July 1
October 1 of the assessment year
Property owners have until October 1 to file assessment appeals in most PA counties. This deadline ensures timely property valuation adjustments. Deadlines can vary slightly by county.
Which state offers full reciprocity for Pennsylvania real estate licenses?
Maryland
Ohio
New York
New Jersey
Pennsylvania maintains reciprocity with New Jersey for salesperson and broker licenses. Applicants must meet education and exam requirements. Other states have limited or no reciprocity.
What is one requirement for a Pennsylvania real estate trust account?
May commingle funds
Must be maintained at a federally insured bank in PA
Can be a personal checking account
Do not need monthly reconciliations
Escrow or trust accounts must be at federally insured institutions in Pennsylvania. Funds must be segregated from personal and operating accounts. Monthly reconciliations are required.
How often does the Pennsylvania Real Estate Commission typically meet?
Quarterly
Monthly
Biannually
Annually
The Commission generally meets on a monthly schedule to review licensing and disciplinary matters. Regular meetings ensure timely governance. Schedules are posted on the DOS website.
What does the gross rent multiplier (GRM) measure?
Capitalization rate times NOI
Value of property per square foot
Relationship between sale price and gross rental income
Ratio of operating expenses to gross income
GRM is the ratio of a property's sale price to its annual gross rental income. It is used for quick investment comparisons. It does not account for expenses.
How is the capitalization rate (cap rate) calculated?
Net income divided by debt service
Gross income divided by expenses
Operating expenses divided by NOI
NOI divided by property value
Cap rate is net operating income divided by current market value or purchase price. It indicates return on investment before financing. Higher cap rates imply greater risk or opportunity.
Which practice involves inducing homeowners to sell by claiming personal characteristics of neighbors will change property values?
Blockbusting
Redlining
Steering
Channeling
Blockbusting involves persuading owners to sell due to fear of decline caused by minority groups moving in. It is a prohibited discriminatory practice under fair housing law. It exploits racial prejudices for profit.
What federal law prohibits kickbacks among settlement service providers?
Fair Credit Reporting Act
RESPA Section 8
TILA
ECOA
RESPA Section 8 bans referral fees and kickbacks among settlement service providers. It ensures honest settlement costs for consumers. Violations can result in fines or criminal penalties.
Which federal act requires lenders to provide Annual Percentage Rate (APR) to borrowers?
Truth in Lending Act
Real Estate Settlement Procedures Act
Equal Credit Opportunity Act
Homeownership and Equity Protection Act
The Truth in Lending Act mandates disclosure of APR to help consumers compare loan costs. APR includes interest rate and certain fees. The Act aims for transparency in lending terms.
What type of depreciation results from outdated design or function of a property?
External obsolescence
Functional obsolescence
Physical deterioration
Economic obsolescence
Functional obsolescence arises when property features become outdated or less useful. Examples include poor layout or obsolete systems. It is a type of depreciation considered in the cost approach. Investopedia Functional Obsolescence
Which calculation determines loan-to-value ratio (LTV)?
Interest rate divided by loan amount
Loan amount divided by appraised value
Appraised value divided by loan amount
Down payment divided by sale price
LTV is the loan amount divided by the lesser of sale price or appraised value. It indicates lending risk and affects terms. Lower LTV ratios typically qualify for better rates.
Under CERCLA, who can be held responsible for environmental cleanup costs?
Local zoning boards
Mortgage lenders
Only current owners
Current and past owners and operators
CERCLA holds current and past owners/operators liable for contamination cleanup. Liability is strict, joint, and several. Innocent landowners may use defenses if due diligence was performed.
In PA, how must earnest money be handled if both seller and buyer agree to terminate?
Given to the seller
Retained by the broker
Returned to the buyer
Donated to charity
When parties mutually rescind, earnest money must be returned to buyer unless agreement states otherwise. Broker cannot unilaterally disburse funds. Disputes require written consent or court order.
What does the debt service coverage ratio (DSCR) measure?
Operating expenses divided by DSCR
Property value divided by loan amount
NOI divided by debt service
Gross income divided by expenses
DSCR is net operating income divided by total debt service. It assesses the property's ability to cover loan payments. Lenders require DSCR above certain thresholds.
Which federal program insures lenders against borrower default on loans for lower-income homebuyers?
Freddie Mac insurance
FHA mortgage insurance
VA loan guarantee
GNMA mortgage insurance
FHA mortgage insurance protects lenders from losses if a borrower defaults on an FHA-backed loan. It encourages lending to lower-income buyers. Premiums are paid by borrowers.
Which federal law governs the terms of mortgage servicing and escrow accounts?
TILA
ECOA
RESPA
Fair Housing Act
RESPA sets requirements for mortgage servicing, escrow accounts, and settlement costs. It mandates timely disclosures and prohibits kickbacks. It enhances consumer protection in real estate transactions.
How does economic obsolescence affect property value?
Functional layouts improve value
Internal design flaws reduce value
Physical deterioration lowers value
External factors reduce market value
Economic obsolescence stems from external factors like zoning changes or regional decline. It is noncurable and affects marketability. Appraisers subtract its effect in valuations.
Under Pennsylvania law, what is the maximum fine the Real Estate Commission can impose for a first-time licensing violation?
$10,000
$5,000
$1,000
$500
The Commission may fine up to $1,000 for a first offense under the Act. Higher fines apply for subsequent violations. This penalty deters unethical conduct.
What must a licensee do to reinstate a lapsed PA real estate license within six months of expiration?
Retake the licensing exam
Submit renewal application with late fee
Obtain broker sponsorship
Complete a full 75-hour course
Within six months of expiration, licensees can pay a late fee and submit renewal without retaking the exam. After six months, reexamination may be required. This grace period avoids redoing pre-licensing.
Which type of notice occurs when a document is recorded in public records?
Actual notice
Constructive notice
Implied notice
Inquiry notice
Recording a deed gives constructive notice to the world, establishing priority. Actual notice is direct knowledge. Constructive notice ensures transparency of interests.
In the cost approach, which of the following helps determine replacement cost new?
Comparable sales
Capitalization rates
Gross rent multiplier
Square footage and unit costs
Replacement cost new is estimated by multiplying structure square footage by current construction cost per unit. It reflects cost to build an equivalent property. Appraisers adjust for depreciation.
During reconciliation in the sales comparison approach, an appraiser must:
Use only the closest property
Select the highest adjusted sale price
Weight each comparable based on similarity
Average the gross rents
Reconciliation involves assessing the relevance and reliability of comparables and assigning weights. It yields a final opinion of value. Appraisers consider market conditions and adjustments.
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Study Outcomes

  1. Identify Licensing Requirements -

    Recognize the educational, examination, and experience criteria mandated by the PA real estate license exam practice test to qualify for licensure in Pennsylvania.

  2. Apply Regulatory Knowledge -

    Use insights from the pa real estate practice exam to navigate state-specific laws, ethical standards, and fair housing regulations effectively.

  3. Analyze Exam Question Formats -

    Examine common question types and scenarios found in pa real estate exam practice tests to improve your test-taking strategy and score.

  4. Evaluate Core Real Estate Concepts -

    Assess your understanding of property rights, contracts, financing, and agency relationships through targeted pa real estate practice questions.

  5. Strengthen Time Management Skills -

    Develop pacing techniques by simulating midterm-style timing conditions, ensuring you can complete a full pa real estate practice test under real exam constraints.

  6. Receive Instant Feedback -

    Utilize immediate score reports and explanations from our free pa real estate practice test to pinpoint knowledge gaps and focus your subsequent study sessions.

Cheat Sheet

  1. Licensing Requirements & Application Process -

    Review PA licensure steps: complete 75 hours of pre-licensing education, pass the national and state segment, and submit Form RE 1. Use the "EAL" mnemonic (Education, Application, Examination) to remember the three phases of your pa real estate practice exam prep. Confirm fees and background check details via the Pennsylvania Real Estate Commission website.

  2. Property Valuation & Market Analysis -

    Master the Market Data Approach by adjusting comparable sales: Adjusted Price = Sale Price ± Adjustments. Practice with sample comps in your pa real estate license exam practice test to sharpen your valuation skills. Remember "Every Comparison Counts" to emphasize precise adjustments for location, size, and condition.

  3. Contract Essentials & Disclosures -

    Contracts in PA require ACOLA: Agreement, Consideration, Lawful Object, and Competent Parties. Work through pa real estate practice questions on offer validity and seller disclosures, such as property condition forms. A quick trick: think "All Cats Love A Meal" to recall each element.

  4. Agency Relationships & Fiduciary Duties -

    Internalize the six fiduciary duties with OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care. Use pa real estate exam practice test scenarios to distinguish between single agency, dual agency, and transaction licensee roles. Applying "Serve First, Self Last" will reinforce client-first service.

  5. Fair Housing & PA Anti-Discrimination Laws -

    Memorize federal and state protected classes under Title VIII and the Pennsylvania Human Relations Act using "FRESH CORN": Familial status, Race, Equal opportunity, Sex, Handicap, Color, Opportunity, Religion, National origin. Test these concepts with pa real estate practice test quizzes, ensuring compliance with advertising and non-discrimination rules. Always cite HUD guidelines and PCHR for accurate regulatory references.

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