Under RELA, a Pennsylvania broker, Steven, discovers that one of his salespersons has been collecting rental deposits directly into a personal bank account instead of the brokerage escrow account. Steven immediately fires the salesperson and reports the matter to the SREC. Despite Steven's prompt action, what is Steven's potential disciplinary exposure?
Correct Answer
B) Steven may face discipline for failure to supervise, as RELA requires brokers to maintain systems that prevent such conduct, regardless of prompt remedial action
Under RELA (63 P.S. §455.604), brokers have an affirmative duty to establish and maintain supervisory systems that prevent licensees from engaging in improper conduct. While prompt remedial action may mitigate penalties, it does not eliminate potential liability for inadequate supervisory systems that allowed the misconduct to occur.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Pa Rela License Law Question
Background Knowledge for Pa Rela License Law
Real World Application in Pa Rela License Law
Common Mistakes to Avoid on Pa Rela License Law Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Related Articles
Real Estate Exam Pass Rates by State: 2026 Data Report
Last updated: March 2026 | Sources: State licensing boards, ARELLO, Bureau of Labor Statistics
What to Do When Your Real Estate Exam Study Plan Looks Good on Paper but Keeps Slipping
If you are searching for real estate exam study plan keeps slipping , the practical answer is usually more useful than a motivational one. The biggest...
How to Prepare for the Real Estate Exam If You Learn Better by Writing Things Out
If you are searching for how to prepare for real estate exam by writing notes , the practical answer is usually more useful than a motivational one. The...