Module 12 of 13 / Pennsylvania rules
Pennsylvania licensee conduct and escrow
Apply state-specific advertising, supervision, records and escrow rules to the daily transaction.
Outline allocation: 11 of 40 scored questions. Reviewed October 15, 2026.
What you will learn
- Route client money correctly and on time.
- Handle disputes without inventing release authority.
- Recognize advertising and supervision violations.
Advertising and the employing broker
A salesperson’s real estate advertising must comply with Pennsylvania’s broker-identification requirements. The employing broker’s business name and telephone number must appear, with the required equal-size treatment; an agent-only brand does not replace them. Avoid false, deceptive or misleading statements and obtain required authority to advertise property. A licensee selling or buying an interest personally must make required status and interest disclosures. Internet and social-media advertising still count as advertising.
Work through an example
A social post showing only an agent’s name and cell number does not become compliant merely because the agent’s profile links to a brokerage.
Remember: Online ads carry real estate advertising duties too.
Receipt and deposit of escrow
A salesperson or associate broker promptly delivers deposits to the employing broker. Under RELRA 608.5, the broker generally deposits others’ funds in the required separate account by the end of the business day following receipt. A check accompanying an offer may be held pending acceptance only with the required written or electronic consent of both sides; after acceptance it is deposited by the close of the next business day. Commingling and using deposits for business expenses are prohibited. Limited broker funds for bank service charges are allowed.
Work through an example
A cash deposit received by the broker on Monday ordinarily cannot sit in the office until the weekend merely because the offer is still pending.
Remember: Prompt transfer to broker; next-business-day deposit, unless an actual statutory exception applies.
Release and disputes
Escrow is released under authorized statutory circumstances, including consummation, qualifying termination, signed directions from all parties, an applicable prior agreement about disputed disposition, or a final nonappealable court order. A broker does not decide who deserves a deposit based only on a personal assessment of breach. Account for the full amount; a partial release also requires the specified notice about amounts paid and retained. Property-management rents go into a separate rental management account, while security deposits require their appropriate treatment.
Work through an example
The seller demands a forfeited deposit and the buyer objects. Check the contract and lawful release grounds; do not pay simply because the seller is the broker’s client.
Remember: A disputed entitlement requires actual release authority.
Supervision, records and prohibited conduct
The broker must exercise adequate supervision. Salespersons cannot accept transaction compensation from someone other than the employing broker except as authorized by law, or perform brokerage independently. Transaction records generally must be kept at least three years after consummation; specific disclosure records have six-month exceptions. Produce required records for lawful Commission review. Misrepresentation, hidden interests, misuse of client money and failure to disclose required information can lead to discipline. Neither a private agreement nor a customer request excuses violating the law.
Work through an example
A salesperson who leaves a firm cannot simply take escrow funds and client files as personal property.
Remember: The broker’s supervision and records duties continue beyond closing.
Check your understanding
Close your notes and explain the rule in your own words. Change one fact in an example: does the answer change? Use topic practice in the study room, then return to any rule you missed.
Sources and further reading
Supplemental study only. State rules and transaction details matter; consult the linked official sources for the complete requirements. This lesson provides no prelicensing credit.