A Pennsylvania broker, James, is found to have commingled client escrow funds with his personal operating account. Under RELA, commingling of funds is considered which of the following?
Correct Answer
D) A violation of RELA that constitutes grounds for disciplinary action including potential license suspension or revocation
Under RELA, commingling of client funds with personal or operating funds is a serious violation that constitutes grounds for disciplinary action. The SREC may impose penalties including license suspension or revocation for this offense.
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Related Topics & Key Terms
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Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
More Pa Rela License Law Questions
Under RELA, how often must Pennsylvania real estate licensees renew their licenses?
Under RELA, a Pennsylvania licensee who held an active license for 25 years is approaching retirement and wonders about the status of their license after retirement. If the licensee stops renewing, what is the ultimate status of the license?
Under RELA, the SREC discovers that a CE course provider has been issuing completion certificates to students who did not actually attend or complete the course. What action may the SREC take against the provider?
Under RELA, a Pennsylvania CE course provider wants to offer a new course on commercial real estate investment. What must the provider do before offering the course for CE credit?
Under RELA, a Pennsylvania licensee holds both a salesperson license and a cemetery salesperson license. How many total CE hours must this licensee complete per renewal cycle?
- → Laura, a Pennsylvania salesperson, completed 10 hours of CE before her renewal deadline but needs 14 hours. She realizes she is 4 hours short on the day before the renewal deadline. Under RELA, what happens if Laura fails to complete the required CE before renewal?
- → Under RELA, a Pennsylvania salesperson, Marcus, learns that the SREC has opened an investigation into his conduct. Marcus wants to know if he can continue working during the investigation. Which statement is correct?
- → Under RELA, a Pennsylvania broker of record, Alan, voluntarily surrenders his license to the SREC while facing disciplinary charges for trust account violations. What effect does the voluntary surrender have?
- → Under RELA, after the SREC issues a final disciplinary order, a Pennsylvania licensee disagrees with the decision. What is the licensee's avenue of appeal?
- → Under RELA, a Pennsylvania broker, Diane, is charged by the SREC with failing to supervise a salesperson who committed fraud. Diane claims she had no knowledge of the salesperson's actions. Which statement is MOST accurate regarding Diane's liability?
- → Under RELA, the Pennsylvania licensing examination for real estate salespersons is administered by which entity?
- → Under RELA, which license category allows a real estate professional in Pennsylvania to open and operate their own brokerage firm?
- → A Pennsylvania broker, Victoria, has her license suspended by the SREC for 90 days due to an advertising violation. During the suspension period, one of her salespersons, Nathan, closes a transaction that was already under contract before the suspension. Under RELA, what is the status of Nathan's transaction?
- → A licensed broker from New Jersey wants to obtain a Pennsylvania broker's license. Under RELA, which of the following best describes how Pennsylvania handles out-of-state broker applicants?
- → Under RELA, if a salesperson's employing broker has their license revoked by the SREC, what happens to the salesperson's license status?
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Under RELA, what happens to a Pennsylvania real estate licensee's license if they fail to renew it by the expiration date and do not practice during the lapsed period?
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