Free Pennsylvania Real Estate Practice Exam Practice Question
A "For Sale by Owner" property owner has offered a flat fee to any licensee who procures a buyer. Under Pennsylvania license law, this arrangement is that it is:
Correct Answer: A
Rationale: In Pennsylvania, a property owner can offer a flat fee to any licensee who finds a buyer, provided the fee is paid to the employing broker. This arrangement aligns with state regulations that allow brokers to receive compensation for services rendered.
Option B is incorrect because there is no requirement that the fee must align with the prevailing commission rate; it can be a flat fee. Option C misinterprets the law since compensation can be arranged prior to closing, as long as it follows proper channels. Option D is misleading; while compensation typically comes from the employing broker, the arrangement with the property owner is permissible as long as the broker is involved.
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