Under RELA, a Pennsylvania broker of record, Daniel, discovers that one of his salespersons has been accepting referral fees directly from a mortgage company without disclosing them to clients or the broker. What RELA implications does this present?
Correct Answer
C) The salesperson has violated RELA by accepting compensation outside the broker relationship, and Daniel may face discipline for failure to supervise if he lacked adequate systems to detect such activity
Under RELA (63 P.S. §455.604), all compensation received by a salesperson for real estate-related activities must be paid through the employing broker. Accepting fees directly from a mortgage company violates this requirement. Additionally, failure to disclose the fee to clients raises further RELA and RESPA concerns. The broker may face discipline for inadequate supervision.
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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?
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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?
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- → Under RELA, how long must a Pennsylvania brokerage retain transaction records?
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Under RELA, a Pennsylvania broker of record, Angela, operates a virtual brokerage with no physical office space. All salespersons work remotely and meet clients at properties or coffee shops. Is this business model compliant with RELA?
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