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Pa Rela License LawDisciplinary_processMEDIUM

Under RELA, a Pennsylvania broker, Rachel, employs 15 salespersons. The SREC audits Rachel's brokerage and discovers that Rachel has not maintained a written office policy manual as required. What consequence may Rachel face?

Correct Answer

A) Disciplinary action by the SREC, as RELA requires brokers to establish and maintain written office policies governing the activities of their licensees

Under RELA (63 P.S. §455.604), brokers are required to establish and maintain written policies and procedures governing the activities of licensees under their supervision. Failure to maintain such policies is grounds for disciplinary action by the SREC.

Answer Options
A
Disciplinary action by the SREC, as RELA requires brokers to establish and maintain written office policies governing the activities of their licensees
B
No consequence, because written policy manuals are recommended but not required under RELA
C
Only a verbal reminder from the SREC with no formal action
D
Automatic revocation of the licenses of all 15 salespersons

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Related Topics & Key Terms

Key Terms:

office_policywritten_proceduresbroker_responsibilitySREC_auditdisciplinary_processRELA

Related Concepts

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

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