Under RELA, a Pennsylvania broker, Nancy, employs a bookkeeper who has access to the brokerage's escrow account for record-keeping purposes. The bookkeeper makes unauthorized withdrawals totaling $12,000 from the escrow account. Who bears responsibility under RELA?
Correct Answer
B) The broker bears ultimate responsibility for the escrow account under RELA, regardless of who physically made the unauthorized withdrawals
Under RELA (63 P.S. §455.604), the broker of record bears ultimate responsibility for the integrity of the escrow account. The broker must establish proper internal controls and is accountable for ensuring that only authorized transactions occur, even if an employee commits the misconduct.
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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
Under RELA, a Pennsylvania broker, Henry, holds $5,000 in escrow for a buyer's earnest money. The purchase agreement states that if the buyer defaults, the earnest money becomes the seller's liquidated damages. The buyer fails to perform and the seller demands the deposit. The buyer does not contest the default. What should Henry do?
Next Question
Under RELA, which of the following types of funds is NOT required to be deposited into a Pennsylvania broker's escrow account?