Real Estate Licensing RePA_Sales_S Exam - Topic 4 Question 6 Discussion

Actual exam question for Real Estate Licensing's RePA_Sales_S exam

Question #: 6
Topic #: 4

A "For Sale by Owner" property owner has offered a flat fee to any licensee who procures a buyer. The owner's terms specify that 50% of the fee is payable upon contract acceptance, with the other 50% payable upon transfer of title. A CORRECT statement about this arrangement is that it is:

Aacceptable if the fee is paid to the employing broker.

Bacceptable if the fee does not exceed the prevailing commission rate.

Cin violation of license law since all compensation must be paid at closing.

Din violation of license law since compensation for real estate sales can come only from listed properties.

Show Suggested Answer

Suggested Answer: A

Under 49 Pa. Code 35.283 (Compensation and Commission), a salesperson can only receive payment through their employing broker. This means that if the flat fee is paid to the broker (not directly to the salesperson), then the arrangement is legal.

Commission does not have to be paid at closing; payment terms can be negotiated, including split payments.

For Sale by Owner (FSBO) properties are not required to be listed with a brokerage, so compensation can still be earned if a licensee brings a buyer.

Why the other answers are incorrect:

Option B (Commission Rate Limitations): There are no ''prevailing'' commission rates since commissions are always negotiable.

Option C (Compensation Must Be at Closing): Commission can be structured differently (e.g., partial upfront payment).

Option D (Only Listed Properties Qualify for Commission): Agents can earn commission on FSBOs as long as the broker is involved.

49 Pa. Code 35.283 -- Compensation and Commission

by Earleen at Nov 23, 2025, 12:32 PM

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Barbra

9 hours ago

B) sounds reasonable, but is it really allowed?

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Kaitlyn

6 days ago

I think C) is the right answer.

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Rosita

11 days ago

A) is correct if the broker gets the fee.

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Izetta

16 days ago

I'll take option B. As long as the fee doesn't exceed the norm, it should be fine.

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Annice

21 days ago

Haha, this question is a real estate agent's nightmare! Option C is the way to go.

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Jesusa

26 days ago

D is the correct answer. Compensation can only come from listed properties, not for-sale-by-owner.

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Chantell

1 month ago

I thought all commissions had to be paid at closing, so I'm leaning towards option C being correct.

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Nell

1 month ago

I feel like this arrangement might violate some license laws, especially about when the payment is made.

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Billy

1 month ago

I remember discussing how commissions can be structured differently, but I'm not sure if splitting the fee like this is allowed.

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Sheron

2 months ago

I'm a bit unsure on this. The options seem to be focused on the fee structure itself rather than the legality, so I'm not totally sure which one is the correct answer. I'll have to re-read the question and options carefully.

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Christa

2 months ago

I feel pretty confident about this one. The question is clearly testing our knowledge of real estate license laws, and option C seems to be the only one that directly addresses a violation of those laws.

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Azalee

2 months ago

Okay, I think I've got this. The question is asking about the legality of the fee structure, not the overall acceptability. I'm leaning towards option C since it specifically mentions a violation of license law.

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Sherrell

2 months ago

Option C is the correct answer. Paying a portion of the fee upfront is a violation of license law.

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Lyndia

3 months ago

I think we went over a similar question in class, and I recall that compensation can sometimes be paid in parts, but I can't remember the specifics.

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Ethan

3 months ago

I agree with C. Compensation should be paid at closing, not in installments.

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Jamika

3 months ago

Hmm, I'm not totally sure about this. The key seems to be whether the fee arrangement violates any license laws. I'll have to think through the options carefully.

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Joseph

3 months ago

I'm a bit confused about this one. The question seems to be asking about the legality of the fee arrangement, but I'm not sure if the options are fully addressing that.

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Chu

2 months ago

But isn't it common to have fees structured differently?

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Kattie

2 months ago

I think option C is correct. Compensation should be at closing.

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