Real Estate Licensing RePA_Sales_S Exam - Topic 4 Question 12 Discussion

Actual exam question for Real Estate Licensing's RePA_Sales_S exam

Question #: 12
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 Tori at Mar 31, 2026, 11:20 AM

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Celestina

4 days ago

I’m leaning towards option A, but I’m not entirely confident. I recall something about fees needing to go through the broker.

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Keneth

9 days ago

I practiced a similar question where the timing of payment was crucial. I feel like it might be a violation if the payment isn't at closing.

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Coletta

14 days ago

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

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