Under RELA, a Pennsylvania broker is closing his brokerage and currently holds $25,000 in escrow funds across three pending transactions. Which of the following correctly describes his obligations regarding those funds?
Correct Answer
C) He must ensure all escrow funds are properly disbursed or transferred to appropriate parties before closing, and must notify the SREC of the brokerage closure
Under RELA (63 P.S. §455.404), a broker holds escrow funds in a fiduciary capacity and remains responsible for their proper disposition regardless of the brokerage's operational status. Before closing, the broker must disburse funds to rightful parties or transfer them to an appropriate custodian, and must notify the SREC of the closure so the Commission can verify compliance and update licensee records.
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More Pa Rela Brokerage Rules Questions
Under RELA, a Pennsylvania brokerage must ensure that all licensees affiliated with the brokerage have completed what requirement before practicing real estate?
Under RELA, a Pennsylvania broker of record has a duty to ensure that all affiliated licensees maintain current and active licenses. If the broker discovers that a salesperson's license has expired, what must the broker do?
Under RELA, a Pennsylvania brokerage receives a written complaint from a consumer about one of its salespersons. The broker of record must take what immediate action?
Under RELA, where must a Pennsylvania brokerage display its current real estate license?
Under RELA, a Pennsylvania brokerage employs both salespersons and associate brokers. What is the key difference between a salesperson and an associate broker under RELA?
- → Under RELA, when a Pennsylvania salesperson places their license with a new brokerage, the salesperson is said to be operating under the authority of which individual?
- → Under RELA, a Pennsylvania salesperson, Jake, earns a commission from a closed transaction. How should the commission be paid?
- → Under RELA, a Pennsylvania broker of record must maintain written office policies. Which of the following topics should these policies address?
- → Under RELA, a Pennsylvania broker of record, Sarah, is retiring and wants to close her brokerage. What steps must Sarah take regarding her affiliated salespersons?
- → Under RELA, when a Pennsylvania salesperson terminates their affiliation with a brokerage, what happens to the salesperson's license?
- → Under RELA, a Pennsylvania broker of record, Steve, wants to change the brokerage's physical office location. What must Steve do under RELA?
- → Under RELA, a Pennsylvania salesperson must operate under the supervision of which type of licensee?
- → Under RELA, a Pennsylvania brokerage is required to maintain a physical office location. Which of the following is a requirement for the brokerage office?
- → Under RELA, a Pennsylvania salesperson, Monica, wants to transfer from Brokerage A to Brokerage B. What is required for the transfer to be valid under RELA?
- → Under RELA, how long must a Pennsylvania brokerage retain transaction records?
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Previous Question
A Pennsylvania real estate transaction falls through and the broker is holding earnest money in escrow. The buyer and seller have each signed a written agreement directing the broker to return the funds to the buyer. Under RELA, which action is the broker required to take?
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A Pennsylvania broker receives a property management fee from a landlord client for services the brokerage has already rendered. Under RELA, where must this fee be deposited?