Pennsylvania Real Estate Salesperson Cheat Sheet.
The night-before summary, built like the exam.

Agency & Fiduciary Duties

Agency = a principal authorizes an agent to act on their behalf in dealings with third parties.

• OLD CAR = the core fiduciary duties: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care.
• Loyalty: put the principal's interests above your own; avoid conflicts of interest.
• Confidentiality survives termination — never reveal the seller's lowest acceptable price.
• Accounting: safeguard entrusted funds; no commingling of client money with your own.
• Clients vs. customers: customers get only honesty, fair dealing, and disclosure of known material defects — not fiduciary duties.
• Dual agency: legal only with informed written consent of both parties; the dual agent cannot advocate for one party against the other.
• Termination: completion, expiration, mutual agreement, revocation, renunciation, or operation of law (death/incapacity).

Listing Agreements

A listing is an employment contract authorizing a broker to market a property and find a ready, willing, and able buyer.

• Exclusive-right-to-sell: broker is paid if the property sells during the term, no matter who procures the buyer (even the seller).
• Exclusive-agency: broker earns no commission if the seller personally finds the buyer.
• Open listing: non-exclusive; only the broker who procures the buyer is paid; seller may list with multiple brokers.

Contracts (Listing & Purchase)

• Essential elements: competent parties, mutual assent, consideration, lawful object, and a writing (Statute of Frauds).
• Counteroffer: any change to the terms rejects and terminates the original offer.
• Earnest money: good-faith deposit held in the broker's trust account.
• Contingencies (financing, inspection, appraisal): let the buyer cancel and recover the deposit if a condition isn't met.
• Time is of the essence: deadlines are strictly enforceable; missing the date is a breach.

Deeds & Title Transfer

A deed conveys title from grantor to grantee.

• Valid deed: competent parties, words of conveyance, adequate legal description, grantor's signature — plus delivery to and acceptance by the grantee.
• General warranty deed: greatest protection — warrants against all title defects at any time, even before the grantor owned the property.
• Special warranty deed: warrants only against defects during the grantor's ownership.
• Quitclaim deed: conveys only whatever interest the grantor has, no warranties; used to clear clouds on title.
• Recording: gives constructive notice to the world; establishes priority — generally protects the first to record.
• Title insurance: covers losses from defects that existed but were unknown when the policy issued.
• Marketable title: free from reasonable doubt or serious defects a prudent buyer would accept.

Financing Basics

• Mortgage / deed of trust: pledges the property as security for a promissory note.
• Lien vs. title theory: lien-theory — borrower keeps title, lender holds a lien; title-theory — lender/trustee holds title until the debt is repaid.
• Loan types: Conventional = not government-backed; FHA insured by the FHA; VA guaranteed by the VA for eligible veterans.
• PMI: generally required on conventional loans when the down payment is < 20% of the purchase price.
• Fixed vs. ARM: fixed keeps one rate for the term; an ARM changes periodically based on an index + margin.
• Amortization: early payments are mostly interest, later payments mostly principal.
• Due-on-sale clause: lender can demand full repayment on sale — blocks loan assumption without lender approval.
• Discount points: prepaid interest paid at closing to lower the note rate; 1 point = 1% of the loan amount.

Fair Housing Law

• Fair Housing Act (Civil Rights Act of 1968, amended 1988): bans discrimination in the sale, rental, and financing of housing.
• 7 protected classes: race, color, religion, national origin, sex, familial status, disability.
• Familial status: protects households with children under 18 and pregnant persons.
• Steering: channeling buyers toward/away from neighborhoods based on a protected class.
• Blockbusting: inducing owners to sell by suggesting a protected class is moving in.
• Redlining: denying loans or insurance in certain areas based on protected characteristics.
• Advertising a preference/limitation based on a protected class is illegal even if the transaction would be exempt.
• Civil Rights Act of 1866: bans all racial discrimination in property transactions — no exemptions.
• Mrs. Murphy exemption (owner-occupied, ≤4 units): never applies to race, and can't be used with discriminatory advertising or a licensee.

Real Estate Math

• Commission = sale price × rate. Ex: $300,000 × 6% = $18,000.
• LTV = loan ÷ lesser of appraised value or price. Ex: $240,000 loan on a $300,000 property = 80% LTV (down payment = remaining 20%).
• Proration: splits shared expenses (taxes, rent, interest) between buyer and seller using the closing date as the dividing point.
• Banker's year: many exams use a 360-day year with 30-day months; daily rate = annual amount ÷ 360.
• Prepaid vs. arrears: prepaid — buyer reimburses seller for the unused portion; arrears — seller credits buyer for the seller's share.
• Gross Rent Multiplier = sale price ÷ monthly gross rent.
• Income capitalization: Value = NOI ÷ cap rate.