Your FREE Pennsylvania Real Estate Flashcards 2026 – 200+ Cards

The Pennsylvania body that licenses and regulates real estate salespersons and brokers, within the BPOA under the Department of State; it administers RELRA.

Pennsylvania's Real Estate Licensing and Registration Act (63 P.S. § 455.101 et seq.) — the state's primary real estate statute governing licensing, agency, escrow, and the Recovery Fund.

The Commission's administrative regulations implementing RELRA — licensing, escrow, the Consumer Notice, agency, recordkeeping, and conduct.

The Bureau of Professional and Occupational Affairs within the Department of State that administratively houses the State Real Estate Commission.

75 hours total — a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course at a Commission-approved school.

The 30-hour Pennsylvania pre-license course covering basic real estate principles, required before licensure.

The 45-hour Pennsylvania pre-license course covering applied real estate practice, required before licensure.

At least 18 years old and a high school graduate or equivalent; no degree or long residency required for a salesperson.

PSI administers the Pennsylvania real estate licensing examination.

Two separately scored portions — an 80-question National (general) portion and a 30-question Pennsylvania State portion.

75% on each portion, scored separately — 60 of 80 national and 23 of 30 state; you must pass both.

If you fail only one portion, you may retake just that part rather than the entire exam.

The Pennsylvania Licensing System — the online portal for applying for, renewing, and managing a real estate license.

A two-year (biennial) cycle that expires May 31 of each even-numbered year.

14 hours of Commission-approved continuing education each two-year renewal period for a standard licensee.

The licensed broker under whom a Pennsylvania salesperson must work; a salesperson cannot operate independently.

Commission flows from the client to the employing broker, who pays the salesperson; a salesperson may not be paid directly by a client.

A salesperson's license is tied to the employing broker; a change of employer must be processed through the Commission before working for the new broker.

A salesperson may never conduct real estate activity independently — only under a licensed employing broker.

The form a licensee must give a consumer at the initial interview (49 Pa. Code § 35.336) explaining the agency relationships under RELRA; it is not a contract.

The first contact where a substantive discussion about real estate occurs — when the Consumer Notice must be provided.

No — an agency relationship is never presumed; it must be established by an express written agreement.

A broker or salesperson who provides services without representing or being the agent of any party, while still owing honesty and accounting for money.

A licensee representing both buyer and seller in one transaction — permitted only with the written consent of both parties (49 Pa. Code § 35.314).

With the principal's consent, a broker designates one licensee for the seller and a different licensee in the same firm for the buyer (49 Pa. Code § 35.315).

A dual agent may not disclose one party's confidential information to the other.

A subagent owes the agency duties to the listing broker's principal (the seller), not to the buyer.

Listing agreements and buyer agency agreements must be in writing under RELRA and the Commission's rules.

68 Pa.C.S. § 7301 et seq. — requires a residential seller to disclose known material defects on a property disclosure statement.

The signed property disclosure statement must be delivered to the buyer before the agreement of sale is signed (68 Pa.C.S. § 7304).

Generally applies to transfers of residential real property of one to four dwelling units, with statutory exceptions.

A statutory notice required in PA deeds where the coal estate is severed or the land lies in a bituminous mining area — the surface owner may not get subsidence damages.

A broker must deposit money belonging to another into the escrow account by the end of the next business day after receipt (49 Pa. Code § 35.324).

The broker, as a fiduciary/trustee; a salesperson must promptly turn deposits over to the employing broker.

In an insured institution, with the broker as trustee, allowing withdrawal without prior notice, used exclusively for escrow (49 Pa. Code § 35.325).

Improperly mixing escrow/trust funds with the broker's own or business funds — a license-law violation.

A broker must retain transaction and escrow records for at least three years following consummation or termination.

A PA fund (63 P.S. § 455.801) that reimburses consumers for an uncollectible judgment against a licensee for fraud, misrepresentation, or conversion.

The Fund pays no more than $20,000 for any single claim arising out of one transaction, regardless of the number of persons aggrieved.

When the Fund pays on a licensee's behalf, that license is automatically suspended until repaid in full plus interest.

10% per year from the date the Fund made the payment.

The consumer must first obtain a final court judgment and exhaust other remedies against the licensee.

Fraud, misrepresentation, commingling, conversion of trust funds, and other RELRA violations are grounds for Commission discipline.

The Commission may suspend, revoke, or refuse a license, impose fines, and order other remedies.

If an employing broker's license is suspended or revoked, the salespersons under that broker generally cannot conduct activity until placed with another broker.

1% of the value of real estate transferred by deed.

A local realty transfer tax is added (commonly another 1%, higher in Philadelphia and Pittsburgh).

The grantor and grantee are jointly and severally liable, though they customarily split it by contract.

The state fair-housing law, enforced by the PA Human Relations Commission, adding protections such as age to the federal classes.

Age — and protection for a person with a disability who uses a guide or support animal — beyond the federal classes.

Negotiable between the broker and the client; not set by law or the Commission; fixing rates with competitors violates antitrust law.

A salesperson may not accept compensation for a transaction directly from anyone other than the employing broker.

Under RELRA, a broker must maintain a fixed office and conspicuously display the license.

Performing real estate activity for compensation without a license is a violation and the person cannot sue to collect a commission.

A licensee buying or selling for their own account must disclose their licensed status and personal interest to the other party.

Every PA licensee must disclose known material defects in a property to a buyer.

A form of co-ownership for married couples with the right of survivorship and protection from one spouse's individual creditors.

Judicial foreclosure — the lender must sue, get a court judgment, and the property is sold at a sheriff's sale.

A mortgage (lien theory) — not a deed of trust; there is no non-judicial trustee's sale.

A statutory pre-foreclosure notice given to owner-occupants of residential property in Pennsylvania before foreclosure proceeds.

The county office where deeds and mortgages are recorded to give constructive notice; transfer tax is paid at recording.

A private trade association — NOT the regulator; the State Real Estate Commission regulates licensees.

A standard PA license has full CE; PA also offers reciprocal/standard categories with their own requirements.

A PA broker applicant generally needs three years of experience as a licensed salesperson plus additional education (240 hours).

The Pennsylvania statute governing residential leases and the landlord-tenant relationship.

Rents and security deposits a broker holds for an owner are trust money subject to the escrow rules.

Land, everything permanently attached to it (improvements and fixtures), and the bundle of rights of ownership.

Movable property not permanently attached to land; transferred by a bill of sale, not a deed.

Possession, use (enjoyment), exclusion, disposition (transfer), and control.

The most complete ownership — absolute, of unlimited duration, freely transferable by deed or will.

An estate measured by someone's lifetime; the holder cannot will it, and it passes to the remainderman or reverts at death.

Personal property attached to real property so as to become part of it and transfer with the land.

Method of attachment, Adaptability, Relationship of parties, Intention, Agreement — used to decide whether an item is a fixture.

Annual crops a tenant farmer may harvest even after a lease ends; treated as personal property.

Government's authority to regulate land for health, safety, and welfare — zoning and codes, with no payment to the owner.

Government's power to take private property for public use through condemnation, paying just compensation.

Property reverts to the state when an owner dies with no will and no heirs.

The four government powers: Police power, Eminent domain, Taxation, Escheat — only eminent domain pays the owner.

A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.

An easement benefiting an adjacent parcel (the dominant tenement) that runs with the land.

An improvement that intrudes onto a neighbor's land, often revealed by a survey.

Any claim, lien, charge, or right that limits an owner's title.

A legal description using distances and compass directions traced back to a point of beginning — common in Pennsylvania.

Sole ownership by one person or entity.

Co-ownership with no survivorship; each owner holds a divisible, willable share.

Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.

On a co-owner's death, their share passes automatically to the surviving co-owners, not to heirs.

Married-couple co-ownership in PA with survivorship and protection from one spouse's individual creditors.

Time, Title, Interest, Possession — required to create a joint tenancy.

A legal action to divide co-owned property or force its sale among co-owners.

The deed giving the most protection; the grantor warrants clear title against all defects, even pre-ownership ones.

Warrants only against defects arising during the grantor's ownership.

Conveys whatever interest the grantor has, with no warranties; used to clear a cloud on title.

Grantor conveys title; grantee receives it. Only the grantor signs the deed.

Title transfers when the grantor delivers the deed and the grantee accepts it — not merely on signing.

Recording a deed at the recorder of deeds gives constructive notice to the world and sets priority.

Protects the insured against loss from title defects that existed before the policy date.

Title reasonably free of defects and litigation that a buyer would accept.

A claim or encumbrance that impairs marketable title until removed.

The recorded history of ownership of a parcel, traced through successive deeds.

The most probable price a property should bring in a competitive open market under fair conditions — an opinion.

The actual price a property sold for — may differ from market value.

An impartial, supported opinion of value by a licensed appraiser as of a specific date, under USPAP.

A licensee's value estimate from recent comparable sales — not a formal appraisal.

The legal, possible, feasible, and most profitable use of a site — the basis of value.

Value from recent sales of similar properties, adjusted for differences; best for homes.

Land value + cost to rebuild new − depreciation; best for new or special-use property.

Value = net operating income ÷ capitalization rate; best for income-producing property.

Effective gross income minus operating expenses, before any mortgage payment.

NOI ÷ value; a higher cap rate signals more risk and a lower value.

Weighing the three approaches' indications into one final opinion of value — not averaging.

A buyer pays no more than the cost of an equally desirable substitute — underlies the sales comparison approach.

Loss in value from physical deterioration, functional obsolescence, or external obsolescence.

Loss in value from outdated or poor design or features within the property.

Loss in value from factors outside the property, such as a nearby nuisance.

An increase in a property's value over time.

The value a taxing authority assigns to property for calculating property tax.

A legally enforceable agreement between competent parties to do or refrain from a lawful act.

Mutual agreement (offer/acceptance), consideration, legal purpose, and competent parties.

Requires real estate sale contracts (and most leases over a year) to be in writing to be enforceable.

Missing an essential element — it has no legal effect at all.

Valid until a party with the right (e.g., a minor) chooses to rescind it.

Both parties promise to perform — like a signed agreement of sale.

One party performs in exchange for the other's act — like an open listing.

A buyer's good-faith deposit held in the broker's escrow account, usually applied to the price at closing.

A condition (financing, inspection, appraisal) that must be met for a contract to become binding.

A court order requiring a defaulting seller to complete the sale, because land is unique.

An agreed amount (often the earnest money) the seller keeps if the buyer defaults.

A contract employing a broker to find a buyer for an owner's property for compensation.

The listing broker earns the commission no matter who finds the buyer.

The broker earns the commission unless the owner sells it themselves.

Only the broker who actually finds the buyer earns a commission.

A fiduciary relationship in which an agent represents a principal with third parties.

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care.

Bans housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.

Race, color, religion, national origin, sex, familial status, disability.

Illegally guiding buyers toward or away from areas based on a protected class.

Inducing panic selling by claiming a protected class is moving into a neighborhood.

A lender refusing to lend or insure in an area based on its makeup.

A change in rules or services so a person with a disability can use housing, such as allowing a service animal.

A physical change to a unit (at the tenant's expense) to accommodate a disability.

Pennsylvania adds age (and guide/support-animal users) to the federal classes.

The Americans with Disabilities Act — requires public accommodations to be accessible.

Price-fixing commissions, group boycotts, and market allocation among competitors are illegal.

Commission rates are always negotiable between broker and client; never set by law.

Client money must be kept separate in escrow; commingling and conversion are violations.

A broker's wrongful use of a client's trust funds for the broker's own purposes.

A contract conveying the right to use property for a term in exchange for rent; lessor = landlord, lessee = tenant.

The tenant pays rent and the landlord pays the property's operating expenses.

The tenant pays rent plus some or all property expenses (taxes, insurance, maintenance).

Money a landlord holds against tenant default or damage; trust money subject to escrow rules.

A fact that would affect a reasonable buyer's decision or price; a known material defect must be disclosed.

A hidden defect not discoverable by ordinary inspection; a known latent defect must be disclosed.

An obvious defect a buyer could discover by ordinary inspection.

'Let the buyer beware' — now limited by modern disclosure laws like PA's Seller Disclosure Law.

The form a residential seller uses to disclose known material defects, delivered before the agreement of sale is signed.

For pre-1978 housing: disclose known lead paint, give the EPA pamphlet, and allow a 10-day inspection window for sales.

The Residential Lead-Based Paint Hazard Reduction Act, source of the federal lead-paint disclosure rule.

An odorless radioactive soil gas common across much of Pennsylvania; can accumulate indoors.

A hazardous material in old insulation/flooring; remove or encapsulate to control fibers.

Grows in damp areas; may require disclosure and remediation.

A buried tank that can leak and contaminate soil and groundwater, creating cleanup liability.

Where the coal estate is severed, a PA deed must carry a coal notice; the surface owner may not get subsidence damages.

Federal law imposing liability for cleanup of hazardous-waste contamination.

Federally regulated areas where development is restricted to protect water resources.

Pennsylvania's security instrument: a lien on real property pledged for a loan, enforced by judicial foreclosure.

The borrower's written promise to repay the loan, separate from the mortgage.

Foreclosure through a lawsuit and court judgment, ending in a sheriff's sale.

Pennsylvania's approach: the lender holds a lien, and the borrower keeps title and possession.

A loan not insured or guaranteed by the government; PMI usually required if LTV exceeds 80%.

A loan insured by the Federal Housing Administration, allowing lower down payments.

A loan guaranteed by the Department of Veterans Affairs, often with no down payment.

Loan amount ÷ value (or price); higher LTV means more lender risk.

Insurance protecting the lender on a conventional loan when LTV exceeds 80%.

Requires settlement-cost disclosures and bans kickbacks on most federally related mortgage loans.

The Truth in Lending Act — requires disclosing the cost of credit, including the APR.

A RESPA/TILA disclosure of loan terms and costs, due within 3 business days of application.

The final loan-cost disclosure the borrower must receive at least 3 business days before closing.

Prepaid interest paid at closing to lower the loan's interest rate; one point = 1% of the loan.

Gradual repayment of a loan through regular payments of principal and interest.

1% state plus a local tax; grantor and grantee are jointly and severally liable.

The public sale of foreclosed property in Pennsylvania after a court judgment.

Commission = sale price × commission rate. A $300,000 sale at 6% = $18,000.

Price = net ÷ (1 − commission rate). A $282,000 net at 6% = $282,000 ÷ 0.94 = $300,000.

Split the total commission between brokerages, then between each brokerage and its agent, applying each percentage in turn.

Area = length × width.

Divide square feet by 43,560 (1 acre = 43,560 sq ft).

1 section = 640 acres; 1 township = 36 sections (6 mi × 6 mi).

5,280 feet per mile — memorize; not provided at the test center.

LTV = loan ÷ value. An 80% LTV on a $300,000 home is a $240,000 loan.

Tax = assessed value × tax rate; 1 mill = $0.001, so an 18-mill rate = assessed value × 0.018.

Value = net operating income ÷ capitalization rate. NOI $90,000 at a 9% cap rate = $1,000,000.

Daily amount = annual figure ÷ 360 or 365 (as the problem specifies), then × days owed.

Percent change = (new − old) ÷ old. A rise from $200,000 to $250,000 is a 25% gain.

Down payment = price − loan amount; e.g., $300,000 price with a $240,000 loan = $60,000 down.

One discount point = 1% of the loan amount; 2 points on a $200,000 loan = $4,000.

NOI = effective gross income − operating expenses (before debt service).

Multiply the sale price by the total transfer-tax rate; a 2% combined rate on $300,000 = $6,000.

Divide square feet by 9 to convert to square yards.

Interest = principal × rate × time; $100,000 at 5% for 1 year = $5,000.