Exclusive right-to-sell

The listing broker — no matter who finds the buyer

The broker, unless the owner sells it themselves

Only the broker who actually finds the buyer

Broker keeps the amount above the seller's set price — a conflict of interest

Guiding buyers toward or away from areas by protected class

Inducing panic selling by claiming a protected class is moving in

A lender refusing to lend or insure in an area by its makeup

Pre-1978 housing; federal disclosure + EPA pamphlet + 10-day test window

Odorless radioactive soil gas; common in Pennsylvania and can accumulate indoors

Old insulation/flooring; remove or encapsulate to control fibers

Grows in damp areas; may require disclosure and remediation

Pennsylvania deeds may carry a coal notice where the coal estate is severed

What score do I need to pass the Pennsylvania real estate exam?

You need 75% on each portion, scored separately — 60 of 80 on the national portion and 23 of 30 on the Pennsylvania state portion. You must pass both, but if you fail only one portion you may retake just that part rather than the entire exam.

What is on the Pennsylvania state portion of the exam?

The Pennsylvania portion tests state law: the State Real Estate Commission and RELRA (63 P.S. § 455), the regulations in 49 Pa. Code Chapter 35, the Consumer Notice and agency relationships, escrow rules, the Recovery Fund, the Seller Disclosure Law, the realty transfer tax, and the PA Human Relations Act.

What education do I need before the Pennsylvania salesperson exam?

Pennsylvania requires 75 hours of Commission-approved pre-license education — a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course. You must also be at least 18 and a high school graduate or equivalent, then apply through PALS and activate under an employing broker.

What is the Pennsylvania Consumer Notice?

Under 49 Pa. Code § 35.336, the Consumer Notice is a form a licensee must give at the initial interview — the first substantive discussion about real estate. It explains the agency relationships available under RELRA (seller agent, buyer agent, dual agent, designated agent, transaction licensee). It is not a contract and does not create agency.

Is there math on the Pennsylvania real estate exam?

Yes — both portions include calculation questions covering commission and splits, seller net, loan-to-value, property taxes and mills, area and acreage, and proration. Remember the figures not provided at the test center: 43,560 square feet per acre and 5,280 feet per mile. A basic calculator is available.

How does Pennsylvania handle escrow money and the Recovery Fund?

Under 49 Pa. Code §§ 35.324–35.325, a broker holds escrow money as trustee in a dedicated insured account and must deposit it by the end of the next business day after receipt. The Real Estate Recovery Fund (63 P.S. § 455.801) reimburses consumers for an uncollectible judgment against a licensee, capped at $20,000 per claim.

How often do I renew a Pennsylvania real estate license, and how much CE is required?

Pennsylvania licenses run on a two-year cycle that expires May 31 of each even-numbered year. A standard licensee must complete 14 hours of Commission-approved continuing education during the cycle to renew. Confirm the current CE topics and renewal fees with the Commission.

Is this Pennsylvania real estate study guide free?

Yes — the full guide, the checkpoints, the glossary, the practice questions, and the flashcards are 100% free, with no account required.

Who regulates real estate licensees in Pennsylvania?

The State Real Estate Commission regulates real estate salespersons and brokers in Pennsylvania. It operates within the Bureau of Professional and Occupational Affairs (BPOA) under the Department of State, and it administers the Real Estate Licensing and Registration Act (RELRA) and its regulations in 49 Pa. Code Chapter 35. This is a Pennsylvania regulatory-framework concept. The Pennsylvania Association of Realtors® (PAR) is a private trade association, not the regulator — don't confuse the two on the exam. Pennsylvania real estate law flows from the statute (RELRA, 63 P.S. § 455.101) to the Commission's regulations (49 Pa. Code Ch. 35) to the Commission, which enforces both.

What education must you complete before the Pennsylvania salesperson exam?

Pennsylvania requires 75 hours of Commission-approved pre-license education for a salesperson — a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course — at a Commission-approved school. After passing both exam portions, you apply through the Pennsylvania Licensing System (PALS) and activate under an employing broker. This is a Pennsylvania licensing concept. A salesperson applicant must also be at least 18 years old and a high school graduate or equivalent. Pennsylvania licenses run on a biennial cycle that expires May 31 of each even-numbered year; standard licensees complete 14 hours of continuing education per cycle.

What is the Pennsylvania Consumer Notice and when is it given?

Under 49 Pa. Code § 35.336, a licensee must provide the Consumer Notice at the initial interview — the first contact where a substantive discussion about real estate occurs. It explains the business relationships available under RELRA (seller agent, buyer agent, dual agent, designated agent, and transaction licensee). It is expressly not a contract. This is a Pennsylvania agency concept and one of the most heavily tested. The Consumer Notice does not, by itself, create an agency relationship. In Pennsylvania an agency relationship is never presumed; it must be established by an express written agreement between the consumer and the licensee.

What does Pennsylvania's Real Estate Seller Disclosure Law require?

Under the Real Estate Seller Disclosure Law (68 Pa.C.S. § 7301 et seq.), a seller of residential real property must complete a property disclosure statement listing known material defects. Under § 7304 the signed statement must be delivered to the buyer before the agreement of sale is signed by the seller and buyer. This is a Pennsylvania property-disclosure concept. The law generally applies to transfers of residential real property of one to four dwelling units, with some statutory exceptions. RELRA governs the licensee's duties, while the Seller Disclosure Law places the disclosure obligation on the seller; the licensee must still disclose known material defects.

How must a Pennsylvania broker handle escrow (deposit) money?

Under 49 Pa. Code §§ 35.324–35.325, the broker is the trustee for money belonging to another and must deposit it into a dedicated escrow account by the end of the next business day after receipt. The account must be in an insured institution, name the broker as trustee, allow withdrawal without prior notice, and be used exclusively for escrow. This is a Pennsylvania escrow concept. A salesperson who receives a deposit must promptly turn it over to the employing broker, who holds it. Commingling escrow money with the broker's own funds is a violation, and the broker must retain transaction and escrow records for at least three years.

What is the Pennsylvania Real Estate Recovery Fund?

Under 63 P.S. § 455.801 et seq., the Real Estate Recovery Fund reimburses consumers who win a court judgment against a licensee for fraud, misrepresentation, or conversion of trust funds but cannot collect it. The Fund's liability is capped at \$20,000 for any single claim arising out of one transaction. This is a Pennsylvania regulatory concept. The Fund pays only after the consumer obtains a final judgment and exhausts other remedies against the licensee. When the Fund pays on a licensee's behalf, that license is automatically suspended until the licensee repays the Fund in full plus 10% annual interest.

Why do some Pennsylvania deeds contain a coal or mine-subsidence notice?

In Pennsylvania's bituminous coal regions, or wherever the coal estate has been severed from the surface, statute requires a coal/mine-subsidence notice in the deed. It warns the buyer that mining rights may be owned separately and that the surface owner may not be entitled to subsidence damages if the land settles. This is a Pennsylvania-specific disclosure concept. Pennsylvania recognizes a separate 'coal estate,' so the surface owner does not always own the minerals or the right to support. The notice is part of the broader duty to disclose material facts that could affect a buyer's decision.

How is foreclosure handled in Pennsylvania?

Pennsylvania is a mortgage (lien-theory) state, so foreclosure is judicial — the lender must file a lawsuit and obtain a court judgment before the property is sold at a sheriff's sale. Borrowers also receive statutory notices, such as the Act 91 notice, before foreclosure proceeds on owner-occupied residential property. This is a Pennsylvania financing concept. Because Pennsylvania uses a mortgage rather than a deed of trust, there is no non-judicial trustee's sale as in deed-of-trust states. The judicial process is slower than non-judicial foreclosure, and the borrower keeps possession until the sheriff's sale is confirmed.

What is the Pennsylvania realty transfer tax and who pays it?

Pennsylvania imposes a 1% state realty transfer tax on the value of real estate transferred by deed, and local jurisdictions add their own (commonly another 1%, and more in places like Philadelphia and Pittsburgh). The grantor and grantee are jointly and severally liable, though they customarily split the tax by contract. This is a Pennsylvania settlement concept. Because liability is joint and several, a contractual 50/50 split does not relieve either party of full liability to the Commonwealth. Certain transfers — such as some between family members — may qualify for statutory exemptions.

What does the Pennsylvania Human Relations Act add to fair housing?

The Pennsylvania Human Relations Act (PHRA), enforced by the Pennsylvania Human Relations Commission, prohibits housing discrimination alongside the federal Fair Housing Act. Beyond the seven federal protected classes, the PHRA also protects against discrimination based on age and protects a person with a disability who uses a guide or support animal. This is a Real Estate Practice concept with a Pennsylvania-specific twist. The federal Fair Housing Act protects race, color, religion, national origin, sex, familial status, and disability. Prohibited practices include steering, blockbusting, and redlining; the PHRA is enforced separately from the federal law.

What are the four government powers over private property?

Even a fee-simple owner's rights are limited by four government powers, remembered as PETE: Police power (regulation such as zoning), Eminent domain (taking for public use with just compensation), Taxation (property taxes that become a lien), and Escheat (property reverts to the state when an owner dies with no will and no heirs). This is a Property Use concept. Police power supports zoning and building codes without compensating the owner; only eminent domain requires just compensation. In Pennsylvania, condemnation for a public taking is carried out under state law, and property taxes are administered at the county and municipal level.

What is the difference between joint tenancy and tenancy in common?

Both are forms of co-ownership. Joint tenancy carries the right of survivorship — a deceased owner's share passes automatically to the surviving joint tenants — and requires the four unities of time, title, interest, and possession. Tenancy in common has no survivorship; each owner holds a divisible share that can be willed to heirs. This is a Forms of Ownership concept. Pennsylvania also recognizes tenancy by the entireties for married couples, which includes survivorship and protects against one spouse's individual creditors. Severalty is sole ownership by one person or entity.

Which deed gives a buyer the most protection?

A general warranty deed gives the most protection: the grantor warrants clear title against all defects, even those arising before the grantor owned the property, and promises to defend the title. A special (limited) warranty deed covers only the grantor's own ownership, and a quitclaim deed gives no warranties at all. This is a Transfer of Title concept. A deed must be delivered by the grantor and accepted by the grantee to transfer title; recording it then gives constructive notice to the public. In Pennsylvania, deeds are recorded with the county recorder of deeds, and the realty transfer tax is paid when the deed is recorded.

How does the income (capitalization) approach estimate value?

The income approach converts a property's income into value using the formula value = net operating income ÷ capitalization rate. Net operating income is effective gross income minus operating expenses, before any mortgage payment. A higher cap rate signals more risk and produces a lower value. This is a Property Value and Appraisal concept. It is the primary approach for income-producing property such as apartments and commercial buildings. The other two approaches are the sales comparison approach (comparable sales) and the cost approach (land value plus replacement cost minus depreciation).

What fiduciary duties does an agent owe a client?

An agent owes the principal fiduciary duties, remembered as OLD CAR: Obedience to lawful instructions, Loyalty (the client's interests first), Disclosure of material facts, Confidentiality, Accounting for money and property, and Reasonable care and skill. These duties define the trust at the heart of an agency relationship. This is a Laws of Agency concept. Confidentiality survives even after the relationship ends, while honesty and fair dealing are owed to all parties, including customers. In Pennsylvania these duties are reinforced by RELRA and 49 Pa. Code Chapter 35, and a salesperson exercises them under an employing broker's supervision.

What does the federal Fair Housing Act prohibit?

The Fair Housing Act (1968) bans discrimination in the sale, rental, and financing of housing based on race, color, religion, national origin, sex, familial status, and disability — the seven federal protected classes. Prohibited practices include steering, blockbusting, and redlining. This is a Real Estate Practice concept and one of the most heavily tested topics. The Pennsylvania Human Relations Act adds state protections, including age, enforced by the PA Human Relations Commission. Housing providers must allow reasonable accommodations and modifications for people with disabilities, such as a service animal.

Who must comply with the federal lead-based paint disclosure rule?

Sellers and landlords of most housing built before 1978 must disclose any known lead-based paint and hazards, give buyers or renters the EPA pamphlet, and — for sales — allow a 10-day window to test for lead. The rule comes from the 1992 Residential Lead-Based Paint Hazard Reduction Act (Title X). This is a Property Disclosures concept that applies in Pennsylvania alongside the state Seller Disclosure Statement. The 10-day inspection opportunity applies to sales; the parties may agree in writing to a different length. Other commonly disclosed environmental hazards include radon — a notable concern in much of Pennsylvania — asbestos, mold, and leaking underground storage tanks.

What does RESPA require at a real estate closing?

The Real Estate Settlement Procedures Act (RESPA) governs closings on most federally related mortgage loans. It requires lenders to disclose settlement costs, gives borrowers a Loan Estimate and a Closing Disclosure, and prohibits kickbacks and unearned referral fees among settlement-service providers. This is a Financing and Settlement concept. The Loan Estimate is due within three business days of application; the Closing Disclosure must reach the borrower at least three business days before closing. RESPA's anti-kickback rule is why a Pennsylvania licensee cannot accept an undisclosed fee for steering a client to a particular title or settlement company.

How do you calculate a real estate commission?

A commission is the sale price multiplied by the commission rate. A \$300,000 sale at a 6% rate produces an \$18,000 total commission. That total is then split — first between the listing and cooperating brokerages, then between each brokerage and its agent — by applying each percentage in turn. This is a Real Estate Math concept. To find a price for a target net to the seller, divide the net by (1 − commission rate): a \$282,000 net at 6% needs a price of \$282,000 ÷ 0.94 = \$300,000. In Pennsylvania, commission is paid to the employing broker, who then compensates the salesperson — a salesperson may not be paid commission directly by a client.

State Real Estate Commission

The Pennsylvania body that licenses and regulates real estate salespersons and brokers, administering RELRA. It operates within the Bureau of Professional and Occupational Affairs (BPOA) under the Department of State.

RELRA (Real Estate Licensing and Registration Act)

Pennsylvania's primary real estate statute, codified at 63 P.S. § 455.101 et seq., governing licensing, agency, escrow, and the Recovery Fund.

49 Pa. Code Chapter 35

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

Bureau of Professional and Occupational Affairs (BPOA)

The bureau within the Pennsylvania Department of State that administratively houses the State Real Estate Commission and processes licensing, renewals, and discipline.

The licensed broker under whom a Pennsylvania salesperson must work; the salesperson cannot operate independently and is paid commission through the broker.

The form a licensee must give a consumer at the initial interview (49 Pa. Code § 35.336) explaining the agency relationships available under RELRA. It is not a contract and does not create agency.

Under 49 Pa. Code § 35.336, the first contact where a substantive discussion about real estate occurs between a licensee and a consumer — when the Consumer Notice must be given.

Under 49 Pa. Code § 35.315, with the principal's consent, a broker assigns one licensee to represent the seller and a different licensee in the same firm to represent the buyer in the same transaction.

A licensee who represents both buyer and seller in the same transaction; permitted in Pennsylvania only with the written consent of both parties (49 Pa. Code § 35.314).

FREE Pennsylvania Real Estate Exam Study Guide 2026

This free Pennsylvania real estate exam study guide covers both portions of the Pennsylvania salesperson licensing exam — the Pennsylvania state-specific law tested by the and the national/general principles tested across the country.^[1] The state portion is built on , so we teach it first.

The exam is administered by PSI in two separately scored parts — an 80-question national portion and a 30-question Pennsylvania portion, each needing 75% to pass.^[5] It’s interactive, not a wall of text: every area has a built-in checkpoint quiz, hover-able glossary terms, worked math examples, and concept questions.

Read the guide area by area, test yourself at each checkpoint, then round out your free prep with our Pennsylvania practice questions and flashcards. Two areas reward the most study time on the state side: the Commission and RELRA license law and the Consumer Notice and Pennsylvania agency.

Pennsylvania Real Estate Exam Snapshot

Pennsylvania salesperson exam at a glance (2026)
Detail	Pennsylvania salesperson exam
Regulator	State Real Estate Commission (within BPOA, Department of State)
Testing provider	PSI
Scored questions	About 110 — 80 national + 30 Pennsylvania state
Passing score	75% on each portion, scored separately (60/80 national, 23/30 state)
Pre-license education	75 hours — 30-hour Real Estate Fundamentals + 45-hour Real Estate Practice
Basic requirements	At least 18 years old; high school graduate or equivalent
License term & CE	Two-year cycle expiring May 31 of even years; 14 hours of CE per cycle
Recovery Fund	Up to $20,000 per claim (63 P.S. § 455.801)

Confirm the current question counts, fees, and education rules with the Commission and PSI before you test — Pennsylvania updates its outlines periodically.^[1]^[5] The weighting below reflects the Pennsylvania state-portion emphasis; RELRA and the Commission’s regulations dominate it:

Pennsylvania state-portion content (2026 salesperson emphasis, ~30 scored items)

RELRA Licensing & Regulation (63 P.S. § 455)26% · license law

Agency, the Consumer Notice & Disclosure20% · § 35.336

Escrow, Trust Money & Recordkeeping14% · §§ 35.324–35.325

The Real Estate Recovery Fund8% · § 455.801

Seller Disclosure Law & Coal Notice10% · 68 Pa.C.S. § 7301

Realty Transfer Tax & Settlement8% · 1% state + local

Fair Housing & the PHRA8% · + age

Disciplinary Standards & Conduct6% · Ch. 35

Pennsylvania does not publish a fixed item count per topic, so treat the percentages as a planning guide.^[3] This guide teaches the Pennsylvania state law first, then all eight national content areas, each ending in a checkpoint quiz.

Two exams in one session — Pennsylvania salesperson

National / General portion80 scored itemsTimed at the PSI center · 75% to pass (60 of 80)General real estate principles tested across the country.

Pennsylvania State portion30 scored itemsTimed at the PSI center · 75% to pass (23 of 30)RELRA, 49 Pa. Code Ch. 35, agency, the Consumer Notice, escrow, and PA law.

The portions are scored separately — you must pass both, and you can retake just the part you failed. Confirm current counts with PSI and the Commission.

1 · The Commission, RELRA & the Recovery Fund (Pennsylvania)

The heart of the Pennsylvania portion. Who regulates real estate in Pennsylvania, how you become and stay licensed, how brokers must handle escrow money, and the Recovery Fund that protects the public.^[2]

Pennsylvania’s real estate regulatory framework

Pennsylvania real estate law flows from the statute (RELRA) to the Commission’s regulations to the Commissionthat enforces them within the Department of State. The exam’s state section is built on this stack.

RELRA — Real Estate Licensing and Registration Act (63 P.S. § 455.101)Pennsylvania's real estate statute passed by the General Assembly — it governs licensing, agency relationships, escrow, and the Recovery Fund.
Commission Regulations (49 Pa. Code Chapter 35)Administrative rules the Commission adopts to implement RELRA — escrow, the Consumer Notice, agency, recordkeeping, and standards of conduct.
State Real Estate Commission (within BPOA, Dept of State)The body that licenses and regulates salespersons and brokers; it sits in the Bureau of Professional and Occupational Affairs (BPOA) under the Department of State.
BPOA / Department of StateThe Bureau of Professional and Occupational Affairs administratively houses the Commission and processes applications, renewals, and discipline.

The Pennsylvania Association of Realtors® (PAR) is a private trade group — not the regulator.

The Commission & RELRA (63 P.S. § 455)

The regulates licensees under (63 P.S. § 455.101 et seq.) and its regulations in . The Commission sits within the under the Department of State. Don’t confuse it with the Pennsylvania Association of Realtors® (PAR), a private trade group.

Pennsylvania Licensing & Education

To be licensed, a salesperson completes 75 hours of pre-license education — a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course — passes both PSI exam portions, and must be at least 18 and a high school graduate or equivalent.^[1] A salesperson always works under an and is paid commission through that broker — never directly by a client.

The path to a Pennsylvania salesperson license

1 · 75-hour pre-license educationComplete a 30-hour Real Estate Fundamentals course plus a 45-hour Real Estate Practice course at a Commission-approved school.
2 · Pass the PSI licensing examPass both the National (general) portion and the Pennsylvania State-specific portion administered by PSI.
3 · Meet the basic requirementsBe at least 18 years old and a high school graduate or equivalent.
4 · Apply through PALSSubmit the salesperson application and fees through the Pennsylvania Licensing System (PALS) to the Commission.
5 · Activate under an employing brokerThe license is issued and held by a licensed employing broker — a salesperson may never act independently.

A salesperson must always work under a licensed employing broker — never independently.

Escrow, Trust Money & Recordkeeping

A broker is the trustee for money belonging to others. Under 49 Pa. Code § 35.324, a broker must deposit escrow money into a dedicated by the end of the next business day after receiving it; a salesperson who takes a deposit must promptly turn it over to the broker.

The account must be in an insured institution, name the broker as trustee, and be used exclusively for escrow.^[3] escrow money with the broker’s own funds is a violation, and records must be kept for at least three years.

The Real Estate Recovery Fund

The (63 P.S. § 455.801) reimburses consumers who win a court judgment against a licensee for fraud, misrepresentation, or conversion but cannot collect it. Payment comes only after a final judgment and exhausting other remedies, and the Fund pays no more than \$20,000 for any single claim.^[2]When the Fund pays, the licensee’s license is automatically suspended until repaid in full plus 10% annual interest.

Checkpoint · Area 1 · The Commission & RELRA License Law

Question 1 of 10

Which state agency directly regulates real estate salespersons and brokers in Pennsylvania?

2 · Pennsylvania Agency, the Consumer Notice & Disclosure

The most distinctively Pennsylvania material.How agency works under RELRA, the Consumer Notice a licensee must deliver, the seller’s disclosure duties, and the realty transfer tax.^[3]

The Consumer Notice & Agency Relationships

Under 49 Pa. Code § 35.336, a licensee must give the at the — the first contact with a substantive discussion about real estate.

It explains the business relationships available under RELRA, but it is not a contract. In Pennsylvania an relationship is never presumed — it arises only through an express written agreement.

Pennsylvania agency relationships under RELRA

The Consumer Notice lays out these business relationships. A consumer chooses one — and it takes an express written agreement to create agency.

Seller agent / Buyer agentRepresents one party and owes that principal full fiduciary duties under an express written agreement.

Dual agent (49 Pa. Code § 35.314)Represents both buyer and seller in the same transaction — only with the written consent of both parties.

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

Transaction licenseeProvides services without representing or being the agent of any party; still owes honesty and accounting for money.

Dual & Designated Agency, Transaction Licensee

A represents both buyer and seller in the same transaction, permitted only with the written consent of both parties(§ 35.314), and may not share one party’s confidential information. Alternatively, under (§ 35.315) the broker assigns one licensee to the seller and a different licensee in the same firm to the buyer. A provides services without representing any party.

Seller Disclosure Law & Coal Notice

Under the (68 Pa.C.S. § 7301), a residential seller must disclose known on a property disclosure statement delivered before the agreement of sale is signed.^[4] In coal regions or where the coal estate is severed, deeds must carry a — a uniquely Pennsylvania topic.

The Pennsylvania disclosure & agency stack

In Pennsylvania an agency relationship is never presumed — it must be created by an express written agreement. These are the documents the exam tests most.

📄Consumer Notice (49 Pa. Code § 35.336)Given at the initial interview (first substantive discussion). It explains the agency relationships available under RELRA. It is NOT a contract.

📄Seller's Property Disclosure Statement (68 Pa.C.S. § 7301)The residential seller discloses known material defects; it must be delivered before the agreement of sale is signed.

📄Federal lead-based paint disclosureRequired for housing built before 1978 — give the EPA pamphlet and a 10-day inspection window.

📄Coal / mine-subsidence noticeRequired in deeds where the coal estate is severed or the property lies in a designated bituminous mining area.

The Consumer Notice does not create an agency relationship — only an express written agreement does.

Realty Transfer Tax & the PHRA

Pennsylvania imposes a of 1% state plus a local tax (commonly another 1%, higher in Philadelphia and Pittsburgh); the grantor and grantee are jointly and severally liable. The adds state fair-housing protections — including age — beyond the federal classes.

Checkpoint · Area 2 · Pennsylvania Agency, the Consumer Notice & Disclosure

Question 1 of 10

What is the purpose of the Pennsylvania Consumer Notice that a licensee must provide?

3 · Property, Legal Descriptions & Land Use

National content area.What real property is, the estates and rights an owner can hold, the government’s powers over land, and how land is legally described.^[9]

Estates & the Bundle of Rights

is land, everything permanently attached to it (including ), and the . The largest estate is — absolute and inheritable. Use the MARIA tests (Method of attachment, Adaptability, Relationship, Intention, Agreement) to tell a fixture from personal property.

Government Powers & Encumbrances

Even fee simple is limited by four government powers, remembered as PETE: (zoning, codes), (with just compensation), taxation, and . An — a lien, , or deed restriction — limits title.

The four government powers — “PETE”

Every owner’s rights are subject to four powers of government. Note the key contrast: only eminent domain requires the government to pay the owner.

PPolice powerRegulate land for public health, safety & welfare — zoning, building codes. No payment to the owner.

EEminent domainTake property for public use through condemnation — but pay just compensation.

TTaxationLevy property taxes; unpaid taxes become a lien with high priority.

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

Legal Descriptions

Three methods describe land precisely: (the common method in Pennsylvania), the rectangular (government) survey system (townships, ranges, and ), and lot-and-block. One is 640 acres and one is 43,560 square feet.

The rectangular survey system — a township of 36 sections

1 township
6 mi × 6 mi = 36 sections

1 section
1 sq mile = 640 acres

1 acre
43,560 square feet

Memorize for the exam: 43,560 sq ft/acre and 5,280 ft/mile — these are not provided at the test center.

Checkpoint · Area 3 · Property, Legal Descriptions & Land Use

Question 1 of 10

In a state that follows the riparian doctrine for a non-navigable stream, how is ownership of the streambed generally treated for an owner whose land borders the watercourse?

4 · Ownership, Title Transfer & Recording

National content area. How people co-own property in Pennsylvania, how a deed transfers title, and how recording protects ownership.^[9]

Forms of Ownership in Pennsylvania

The key difference is the right of survivorship. has it and needs the four unities; does not, so each share passes by will. Pennsylvania also recognizes for married couples — it includes survivorship and shields the property from one spouse’s individual creditors.

Forms of ownership in Pennsylvania
Form	Survivorship?	Who can hold it
Severalty	N/A — sole owner	One person or entity
Tenancy in common	No — passes by will	Any number of co-owners
Joint tenancy	Yes — to survivors	Co-owners with the four unities
Tenancy by the entireties	Yes — to the surviving spouse	A married couple in Pennsylvania

Deeds, Recording & Title Insurance

A deed conveys title from grantor to grantee. The gives the most protection; a gives none.

Title passes on delivery and acceptance, not on recording — but recording at the county recorder of deeds gives constructive notice. In Pennsylvania, the is paid when the deed is recorded. protects against prior defects.

Checkpoint · Area 4 · Ownership, Title Transfer & Recording

Question 1 of 10

A claimant occupies a neighbor's unused back lot openly and continuously, but for the first several years she does so under a recorded but defective deed she honestly believed gave her ownership, and in some states she also pays the property taxes. Compared with a trespasser who has no document at all, what advantage does occupying under such a written instrument and paying taxes typically provide in an adverse possession claim?

5 · Property Value & Appraisal

National content area.What creates value, the three approaches an appraiser uses, and how a licensee’s CMA differs from a formal appraisal.^[9]

Value Principles

is the most probable price under fair conditions — an opinion, distinct from the actual market price. The basis of value is : the legal, possible, feasible, and most profitable use of a site. A helps price a listing; a formal is an impartial USPAP-compliant opinion by a licensed appraiser.

The Three Approaches to Value

An appraiser estimates value three ways, then reconciles them — weighing the indications, not averaging — into one final opinion.

The three approaches to estimating value

Sales comparison approachCompare the subject to recently sold similar properties; adjust for differences. Best for homes.Based on the principle of substitution.

Cost approachLand value + cost to rebuild the improvements new − depreciation. Best for new or special-use property.

Income (capitalization) approachValue = net operating income ÷ capitalization rate. Best for income-producing property.

The appraiser then reconciles the three indications into one final opinion of value — weighing them, not averaging.

Checkpoint · Area 5 · Property Value & Appraisal

Question 1 of 10

In the cost approach, an appraiser values the land separately from the improvements. Why is the land value added in rather than depreciated along with the building?

6 · Contracts & Agency (National)

The single largest national area. What makes a contract valid, the kinds of listing agreements, and the fiduciary duties at the heart of agency.^[9]

Contract Law & Listings

A valid needs mutual agreement, consideration, legal purpose, and competent parties — and, for real estate, writing under the . A missing essential element makes it void; a defect like a minor’s signature makes it voidable.

Types of listing agreements
Listing type	Who earns the commission
Exclusive right-to-sell	The listing broker — no matter who finds the buyer
Exclusive agency	The broker, unless the owner sells it themselves
Open listing	Only the broker who actually finds the buyer
Net listing	Broker keeps the amount above the seller's set price — a conflict of interest

Agency & Fiduciary Duties

is a fiduciary relationship between agent and principal. The duties are OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care. Confidentiality survives the end of the relationship.

Checkpoint · Area 6 · Contracts & Agency (National)

Question 1 of 10

An owner gives a broker authority to handle the entire management and sale of a portfolio of rental properties, including signing documents on the owner's behalf across many ongoing transactions. This broad authority to conduct a continuous series of transactions for the principal is best described as which type of agency?

7 · Real Estate Practice & Fair Housing

National content area, with Pennsylvania fair-housing law. Fair housing, handling client money, and the leasing work a licensee does day to day.^[6]

Fair Housing & the PHRA

The (1968) bans discrimination based on race, color, religion, national origin, sex, familial status, and disability — seven federal protected classes.^[6] The , enforced by the PA Human Relations Commission, adds state protections such as age. The classic violations are , blockbusting, and redlining.

Prohibited fair-housing practices
Practice	What it is
Steering	Guiding buyers toward or away from areas by protected class
Blockbusting	Inducing panic selling by claiming a protected class is moving in
Redlining	A lender refusing to lend or insure in an area by its makeup

Trust Funds, Leases & Conduct

A broker must keep client funds — like — in a separate ; is a violation. Commission rates are always negotiable, and fixing them with competitors is an antitrust violation. A lease conveys the right to use property for a term in exchange for rent (landlord = lessor, tenant = lessee); Pennsylvania residential leases are governed by the Landlord and Tenant Act of 1951.

Checkpoint · Area 7 · Real Estate Practice & Fair Housing

Question 1 of 10

A brokerage proudly advertises that it charges "the lowest commission in town." Two rival firms call the broker and propose that all three publicly commit to a uniform six percent rate to end the price competition. If the broker agrees, what has occurred?

8 · Disclosures & Environmental Issues

National content area, with Pennsylvania specifics. What a seller and agent must reveal, and the environmental hazards the exam expects you to recognize.^[8]

Material Facts & Property Disclosure

A — anything that would affect a buyer’s decision or price — must be disclosed, including known . In Pennsylvania the seller uses the property disclosure statement under the , delivered before the agreement of sale is signed. The old rule of caveat emptor is now limited by disclosure law.

Environmental Hazards

The most heavily tested federal rule is the : for housing built before 1978, the seller must disclose known lead paint, give the EPA pamphlet, and (for sales) allow a 10-day inspection window.^[8] Radon is a notable concern across much of Pennsylvania.

Environmental hazards to recognize
Hazard	What to know
Lead-based paint	Pre-1978 housing; federal disclosure + EPA pamphlet + 10-day test window
Radon	Odorless radioactive soil gas; common in Pennsylvania and can accumulate indoors
Asbestos	Old insulation/flooring; remove or encapsulate to control fibers
Mold	Grows in damp areas; may require disclosure and remediation
Coal/mine subsidence	Pennsylvania deeds may carry a coal notice where the coal estate is severed

Checkpoint · Area 8 · Disclosures & Environmental Issues

Question 1 of 10

A home where a widely publicized homicide occurred years ago is structurally sound but draws fewer buyers because of the event's reputation. The reduced desirability stemming from the event rather than any physical flaw is best described as which of the following?

9 · Financing & Settlement

National content area, with key Pennsylvania differences. The instruments that secure a loan, how Pennsylvania forecloses, the main loan types, and what happens at closing.^[7]

Mortgages, Notes & Judicial Foreclosure

Pennsylvania is a (lien-theory) state: a lender takes a lien on the property, so foreclosure is a — the lender files suit, obtains a court judgment, and the property is sold at a sheriff’s sale. There is no non-judicial trustee’s sale as in deed-of-trust states. The promissory note is the borrower’s promise to repay.

How a Pennsylvania sale closes — escrow & recording

1 · Agreement of saleBuyer and seller sign the agreement of sale; the Seller's Property Disclosure Statement must be delivered before it is signed, and earnest money is deposited.
2 · Broker deposits escrowThe broker (as trustee) deposits the money into a dedicated escrow account by the end of the next business day after receipt (49 Pa. Code § 35.324).
3 · Title, financing & taxesA title search and title insurance are ordered; the lender's mortgage is prepared and the realty transfer tax is calculated (1% state + local).
4 · Settlement & recordingFunds are disbursed under a Closing Disclosure, the deed and mortgage are recorded with the county recorder of deeds, and the buyer takes title.

Pennsylvania uses a mortgage as its security instrument and a judicial foreclosure — a heavily tested difference from deed-of-trust states.

Loan Types, Lending Laws & Closing

Three loan types anchor the exam — conventional, FHA, and VA — and the measures lender risk. Two federal laws govern disclosure: requires settlement-cost disclosures and bans kickbacks, and requires disclosing the cost of credit, including the APR.^[7] At closing, a settlement agent disburses funds, and the deed and mortgage are recorded.

Checkpoint · Area 9 · Financing & Settlement

Question 1 of 10

A buyer assumes an existing loan, but the original loan documents contain a clause requiring the full balance to be paid when the property is sold or transferred without lender approval. This particular type of acceleration provision is most accurately known as which of the following?

10 · Real Estate Math

Tested on both portions. A handful of formulas cover almost every calculation: area, commission, seller net, loan-to-value, taxes, and proration.^[5]

Area, Commission & Net

Area of a rectangle is length × width; convert square feet to acres by dividing by 43,560. Commission = sale price × rate. To find the price for a target seller net, divide the net by (1 − rate).

Core real estate formulas
To find	Formula
Commission	Sale price × commission rate
Price for a target net	Net ÷ (1 − commission rate)
Loan-to-value (LTV)	Loan amount ÷ value (or price)
Value (income approach)	Net operating income ÷ capitalization rate
Annual property tax	Assessed value × tax rate (or mills × 0.001)

LTV, Taxes & Proration

is loan ÷ value. splits taxes, rent, and interest by the days each party owns the property — the seller is usually charged through the closing date. Pennsylvania exam math problems will specify whether to use a 360-day or 365-day year and who owns the closing day.

Checkpoint · Area 10 · Real Estate Math

Question 1 of 10

A developer assembles three adjacent parcels measuring 0.75 acre, 1.25 acres, and 2.5 acres. How many total square feet does the combined site contain, using 43,560 square feet per acre?

How to Use This Study Guide

A study guide is a map, not the whole territory — pair it with our free Pennsylvania practice questions and flashcards. Lead with and RELRA license law and the and Pennsylvania agency, then layer in the national content areas and lock in the math.

A study loop that actually works

1
Read a content area here
Work through one area at a time, Pennsylvania law first, then the national portions.
2
Take the checkpoint
The quick check at the end of each area exposes what didn't stick.
3
Drill the gaps
Send your weak area straight into the free Pennsylvania practice questions and flashcards.
4
Take full, timed practice
Sit a full-length practice test to build stamina, then review every miss.

Pennsylvania Real Estate Concept Questions

Common Pennsylvania and national real estate principles the salesperson exam actually tests — covering RELRA license law, the Consumer Notice and Pennsylvania agency, escrow and the Recovery Fund, the Seller Disclosure Law, and the national content areas. Tap any card for a short, exam-ready answer backed by an official source (the Commission, RELRA, 49 Pa. Code, HUD, CFPB, EPA, or IRS), then test yourself on them as flashcards.

Pennsylvania Real Estate Glossary

Quick definitions for the terms you’ll see most across the Pennsylvania real estate exam:

49 Pa. Code Chapter 35: The Commission's administrative regulations implementing RELRA — covering licensing, escrow, the Consumer Notice, agency, recordkeeping, and standards of conduct.
Acre: A unit of land area equal to 43,560 square feet.
Agency: A fiduciary relationship in which an agent represents a principal in dealings with third parties.
Appraisal: An impartial, supported opinion of value prepared by a licensed appraiser as of a specific date, following USPAP.
Bundle of rights: The rights that come with ownership: possession, use (enjoyment), exclusion, disposition (transfer), and control.
Bureau of Professional and Occupational Affairs (BPOA): The bureau within the Pennsylvania Department of State that administratively houses the State Real Estate Commission and processes licensing, renewals, and discipline.
Capitalization rate: The rate of return on an income property: net operating income ÷ value. A higher cap rate implies more risk and lower value.
Coal / mine-subsidence notice: A statutory notice required in Pennsylvania deeds where the coal estate is severed or the land lies in a bituminous mining area, warning that the surface owner may not be entitled to subsidence damages.
Commingling: Improperly mixing a client's escrow/trust funds with the broker's own or business funds — a license-law violation.
Comparative market analysis (CMA): A licensee's estimate of value from recent comparable sales, used to help price a listing — not a formal appraisal.
Consumer Notice: The form a licensee must give a consumer at the initial interview (49 Pa. Code § 35.336) explaining the agency relationships available under RELRA. It is not a contract and does not create agency.
Contingency: A condition that must be met for a contract to become binding, such as financing, inspection, or appraisal contingencies.
Contract: A legally enforceable agreement between competent parties to do or refrain from doing a lawful act.
Designated agency: Under 49 Pa. Code § 35.315, with the principal's consent, a broker assigns one licensee to represent the seller and a different licensee in the same firm to represent the buyer in the same transaction.
Dual agent: A licensee who represents both buyer and seller in the same transaction; permitted in Pennsylvania only with the written consent of both parties (49 Pa. Code § 35.314).
Earnest money: A buyer's good-faith deposit showing serious intent; held in the broker's escrow account and usually applied to the price at closing.
Easement: A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.
Eminent domain: Government's power to take private property for public use through condemnation, paying the owner just compensation.
Employing broker: The licensed broker under whom a Pennsylvania salesperson must work; the salesperson cannot operate independently and is paid commission through the broker.
Encumbrance: Any claim, lien, charge, or right that limits an owner's title — liens, easements, encroachments, and deed restrictions.
Escheat: The reversion of property to the state when an owner dies with no will and no legal heirs.
Escrow account: A dedicated, insured account a Pennsylvania broker holds as trustee for money belonging to others; deposits must be made by the end of the next business day after receipt (49 Pa. Code § 35.324).
Fair Housing Act: The 1968 federal law prohibiting housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
Fee simple: The most complete form of ownership — absolute, of unlimited duration, and freely transferable by deed or will. Also called fee simple absolute.
Fiduciary duties: The duties an agent owes the principal — Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (OLD CAR).
Fixture: An item of personal property attached to real property so as to become part of it and transfer with the land. The MARIA tests decide whether an item is a fixture.
General warranty deed: The deed giving the most protection; the grantor warrants clear title against all defects, even those arising before the grantor's ownership.
Highest and best use: The legally permissible, physically possible, financially feasible, and most profitable use of a site — the basis of value.
Initial interview: Under 49 Pa. Code § 35.336, the first contact where a substantive discussion about real estate occurs between a licensee and a consumer — when the Consumer Notice must be given.
Joint tenancy: Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.
Judicial foreclosure: Pennsylvania's foreclosure process — the lender must file suit and obtain a court judgment before the property is sold at a sheriff's sale.
Latent defect: A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.
Lead-based paint disclosure: The federal requirement that sellers and landlords of pre-1978 housing disclose known lead paint and give a 10-day inspection window for sales.
Listing agreement: A contract employing a broker to find a buyer for the owner's property in exchange for compensation.
Loan-to-value ratio (LTV): The loan amount divided by the property's value or price; a higher LTV means a smaller down payment and more lender risk.
Market value: The most probable price a property should bring in a competitive, open market under fair-sale conditions; an opinion of value.
Material fact: A fact that would affect a reasonable buyer's decision to buy or the price they would pay; a known material defect must be disclosed.
Metes and bounds: A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning — the common method in Pennsylvania.
Mortgage: Pennsylvania's security instrument: a lien on real property pledged for a loan, enforced through judicial foreclosure rather than a trustee's sale.
Net operating income (NOI): Effective gross income minus operating expenses, before any mortgage payment; the income figure used in the income approach.
Pennsylvania Human Relations Act (PHRA): The state fair-housing law, enforced by the PA Human Relations Commission, that adds protections such as age to the federal Fair Housing Act classes.
Police power: Government's authority to regulate land for public health, safety, and welfare — the basis for zoning and building codes, with no payment to the owner.
Proration: Dividing prepaid or accrued expenses such as taxes, rent, and interest fairly between buyer and seller as of the closing date.
Quitclaim deed: A deed conveying only whatever interest the grantor has, with no warranties; often used to clear a cloud on title.
Real Estate Recovery Fund: A Pennsylvania fund (63 P.S. § 455.801) that reimburses consumers holding an uncollectible court judgment against a licensee for fraud, misrepresentation, or conversion; capped at $20,000 per claim.
Real Estate Seller Disclosure Law: Pennsylvania's law (68 Pa.C.S. § 7301) requiring a residential seller to disclose known material defects on a property disclosure statement delivered before the agreement of sale is signed.
Real property: Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.
Realty transfer tax: Pennsylvania's tax on the value of real estate transferred by deed — 1% state plus a local tax (commonly another 1%); grantor and grantee are jointly and severally liable.
RELRA (Real Estate Licensing and Registration Act): Pennsylvania's primary real estate statute, codified at 63 P.S. § 455.101 et seq., governing licensing, agency, escrow, and the Recovery Fund.
RESPA: The Real Estate Settlement Procedures Act — a federal law requiring loan-cost disclosures and prohibiting kickbacks at closing.
Section (survey): One square mile of land — 640 acres — and one thirty-sixth of a 6-mile-square township in the rectangular survey system.
State Real Estate Commission: The Pennsylvania body that licenses and regulates real estate salespersons and brokers, administering RELRA. It operates within the Bureau of Professional and Occupational Affairs (BPOA) under the Department of State.
Statute of frauds: The law requiring contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.
Steering: Illegally guiding buyers toward or away from neighborhoods based on a protected class — a fair-housing violation.
Tenancy by the entireties: A form of co-ownership available only to married couples in Pennsylvania, with the right of survivorship and protection against one spouse's individual creditors.
Tenancy in common: Co-ownership in which each owner holds an undivided, willable share; there is no right of survivorship.
TILA: The Truth in Lending Act — a federal law requiring lenders to disclose the cost of credit, including the annual percentage rate (APR).
Title insurance: A policy protecting the insured against loss from title defects that existed before the policy date, such as liens or recording errors.
Transaction licensee: A Pennsylvania broker or salesperson who provides real estate services without representing or being the agent of any party, while still owing honesty and accounting for money.

Free Pennsylvania Real Estate Exam Study Materials & Resources

Everything you need to prepare for the Pennsylvania real estate exam is free here — no paywall, no sign-up. This guide is the foundation; pair it with the rest of our free Pennsylvania study materials for active recall, timed practice, and last-minute review:

Pennsylvania Real Estate Practice Test — exam-style questions across the Pennsylvania and national content areas, with explanations.
Pennsylvania Real Estate Flashcards — active-recall decks for RELRA law, the Consumer Notice, agency, escrow, and math formulas.

Pennsylvania Real Estate Exam Study Guide FAQ

The Pennsylvania salesperson exam has two scored portions administered by PSI: a national/general portion of 80 questions and a Pennsylvania state-specific portion of 30 questions, for about 110 scored items. Confirm the current counts in the PSI candidate bulletin before you test.

References

1.Pennsylvania Department of State. “State Real Estate Commission.” pa.gov. ↑
2.Pennsylvania General Assembly. “Real Estate Licensing and Registration Act (RELRA), 63 P.S. § 455.101.” legis.state.pa.us. ↑
3.Pennsylvania Code. “49 Pa. Code Chapter 35 — State Real Estate Commission.” pacodeandbulletin.gov. ↑
4.Pennsylvania General Assembly. “Real Estate Seller Disclosure Law (68 Pa.C.S. § 7301).” legis.state.pa.us. ↑
5.PSI Services. “Pennsylvania Real Estate Candidate Information Bulletin.” PSI / candidate.psiexams.com. ↑
6.U.S. Department of Housing and Urban Development. “Fair Housing Act Overview.” HUD. ↑
7.Consumer Financial Protection Bureau. “Real Estate Settlement Procedures Act (Regulation X).” CFPB. ↑
8.U.S. Environmental Protection Agency. “Real Estate Disclosure (Lead-Based Paint).” EPA. ↑
9.U.S. Geological Survey. “How is the Public Land Survey System organized?.” USGS. ↑

Sources for the concept answers

Every answer in the Pennsylvania real estate concept questions above is drawn from an authoritative primary source:

Internal Revenue Service. “Sales and Other Dispositions of Assets (Publication 544).” IRS.
Pennsylvania Human Relations Commission. “PA Human Relations Act.” pa.gov.

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