Real Estate Licensing and Registration Act: Licensing and Duties

Pennsylvania’s Real Estate Licensing and Registration Act (RELRA), codified at 63 P.S. § 455.101, controls who can practice real estate in the Commonwealth and how they must conduct themselves once licensed. The State Real Estate Commission administers it: issuing broker and salesperson licenses, setting education and examination standards, and disciplining licensees who break the rules.¹ If you plan to get licensed, the Act tells you the age, education, sponsorship, and exam thresholds you have to clear. If you’re already licensed, it tells you what disclosures you owe clients, how to handle escrow, and what conduct will cost you your license.

Who Needs a License

RELRA applies to anyone who performs real estate services for another person in exchange for a fee or commission. That covers negotiating sales, purchases, exchanges, and leases, managing property, listing property, and holding yourself out as a real estate consultant or agent.² It also covers comparative market analyses, so even a paid pricing opinion requires a license.

Most people enter the field as a salesperson or broker, but RELRA defines several narrower categories as well. An associate broker holds broker-level qualifications but works under another broker. A builder-owner salesperson is a full-time employee of a home builder and may sell only that builder’s properties. Rental listing referral agents, cemetery brokers and salespersons, and campground membership salespersons each have their own narrow scope. Working outside the scope of your license category is treated the same as practicing without a license at all.²

Salesperson License Requirements

The salesperson license is the entry point. Four conditions have to be met before the Commission will issue one.

You must be at least 18 years old. You must complete 60 hours of instruction (four credits) in Commission-approved basic real estate courses covering principles, practices, and Pennsylvania law, taken from an approved provider listed on the Department of State website.³

You need a sponsoring broker. The broker files a sworn statement vouching for your honesty and competence and certifying that they will actively supervise and train you.³ And you must obtain a Pennsylvania State Police Criminal Record Check. The Commission reviews that result to evaluate character and fitness. Convictions for offenses like fraud, embezzlement, or forgery can disqualify an applicant, though the Commission looks at each case individually.

Broker License Requirements

Broker licensing demands more. You must be at least 21 years old and have worked as a licensed salesperson for at least three years with experience the Commission considers adequate for broker-level practice.⁴

The education requirement jumps to 240 hours (16 credits) of professional real estate coursework. Two credits must be in a Commission-approved office management course and two in a law course. At least six of the remaining twelve credits must come from Commission-developed courses in areas such as real estate finance, investment, property management, valuation, or residential construction. Credits used to qualify for the salesperson exam cannot be reused for the broker requirement.⁴

Certain degrees satisfy the education requirement outright: a Juris Doctor, a bachelor’s degree in real estate, or a bachelor’s degree with coursework equivalent to a real estate major.⁵ All coursework must have been completed within ten years of passing the licensing exam. Older credits expire.

Application and Examination

Applications go through the Pennsylvania Licensing System (PALS). You upload educational transcripts, background check results, and sponsoring broker documentation, then pay the fees. The examination fee is $40.⁶¹

Once the Commission approves your application, you receive authorization to schedule the exam. As of 2026, Pearson VUE administers Pennsylvania’s real estate licensing examinations. The salesperson exam has a national portion and a Pennsylvania-specific portion; each must be passed separately. Applicants who have held an active broker or salesperson license in another state within the last five years take only the Pennsylvania section.³

The Pennsylvania portion of the salesperson exam covers five content areas: the Real Estate Commission’s duties and powers, licensure rules, agency and disclosure requirements, regulations governing licensee activities, and miscellaneous topics including property disclosures and the Pennsylvania Human Relations Act.⁷ The national portion covers property law, real estate finance, contracts, agency relationships, and ethics. You have three years from passing the exam to submit a completed license application. Miss that window and you retest.

Disclosures and Duties Once You’re Licensed

RELRA treats licensing as the beginning, not the end, of the obligations. Several of these duties are enforced strictly and are among the most common sources of discipline.

The Consumer Notice

Every licensee must give a prospective client the Consumer Notice at the very first meeting where real estate needs are discussed, before any confidential information changes hands.⁸ The Notice explains the five agency relationships available in Pennsylvania:

A seller agent works exclusively for the seller, must make a good-faith effort to find a buyer, must keep the seller’s confidential information private, and must disclose known material defects about the property.
A buyer agent works exclusively for the buyer, even if the seller pays the commission, and must keep the buyer’s confidential information private.
A dual agent represents both buyer and seller in the same transaction, cannot take any action adverse to either party, and must have written consent from both sides before the arrangement begins.
A designated agent arrangement lets the broker assign separate licensees within the same firm to represent buyer and seller individually. The broker becomes a dual agent, but each designated licensee advocates solely for their assigned client, and the broker must take reasonable steps to prevent confidential information from passing between them.
A transaction licensee assists both parties without advocating for either side, preparing paperwork and coordinating logistics without owing loyalty to either.

Escrow, Contracts, and Records

Brokers must hold all escrow funds — earnest money, security deposits, and similar client funds — in separate accounts. Mixing client money with the broker’s operating funds is one of the most serious violations under the Act, and the Commission has authority to audit these accounts.⁹

All service agreements, including listing contracts, buyer agency agreements, and property management contracts, must be in writing and include a definite termination date. Open-ended agreements that require prior notice to cancel are not permitted.⁹ Every party who signs a contract is entitled to a copy at the time of signing.

Transaction records — contracts, disclosure forms, correspondence, and financial records — must be preserved for at least three years after the deal closes.¹⁰

Advertising Your Own Property

Licensees who advertise their own property for sale or lease must disclose their licensed status in the advertisement. This applies to a personal home or an investment property.¹¹

Conduct That Can Cost You the License

Section 604 of the Act sets out the conduct that triggers discipline. The most frequently enforced prohibitions include:

Substantial misrepresentation about a property, a transaction, or a licensee’s qualifications.
False promises intended to persuade someone into a contract when the licensee cannot or does not intend to follow through.
Dual agency without written consent from both parties beforehand.
Deceptive advertising, including misleading listings, false claims of membership in professional organizations, or placing a “for sale” sign on property without the owner’s written permission.
Inducing a party to break an existing contract so the licensee can substitute a new deal for personal gain.
Buying or acquiring an interest in a property listed with your own office without disclosing that in writing to the owner.
A salesperson or associate broker accepting compensation from anyone other than their broker, or a broker paying commissions to unlicensed individuals.

The Commission can investigate on its own or in response to a written complaint from any person. Penalties range from a formal reprimand to suspension or permanent revocation. The Commission can also impose fines of up to $1,000 per violation and combine a fine with a suspension or revocation.¹⁰ Conduct that also violates criminal law, such as forgery, embezzlement, bribery, or extortion, carries consequences beyond the Commission.

Renewal and Continuing Education

Pennsylvania real estate licenses run on a two-year cycle. To renew, every broker and salesperson must complete 14 hours of Commission-approved continuing education during the renewal period.¹² The Commission can designate mandatory topics for a given cycle, so check its website at the start of each renewal period.

First-time licensees take a different path. During your first biennial renewal period, you must complete a Commission-developed 14-hour course designed for new licensees. That course satisfies the full continuing education requirement for the first cycle; no additional electives are needed.¹³

Failing to complete continuing education before your license expires means you cannot legally practice until you catch up. Renewals go through PALS.

Reciprocity for Out-of-State Licensees

Pennsylvania has reciprocity agreements with Arkansas, Georgia, Louisiana, Maryland, and Massachusetts.¹⁴ An active licensee from one of those states can apply for a Pennsylvania license without retaking the full exam and needs to pass only the Pennsylvania-specific portion. Licensees from states without a reciprocity agreement go through the standard process but may receive education credit based on existing licensure and experience.

Federal Rules That Apply Alongside RELRA

RELRA is a state licensing statute. It does not displace federal law that applies to every real estate transaction, and Pennsylvania licensees are expected to follow both. The Fair Housing Act prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, and disability, and reaches advertising, showings, and negotiation.¹⁵¹⁶¹⁷¹⁸ A licensee who takes payment for steering a client to a particular title company or lender has violated federal law, not just state ethics rules.

1
Commonwealth of Pennsylvania. State Real Estate Commission
2
Pennsylvania General Assembly. Pennsylvania Code – Real Estate Licensing and Registration Act
3
Pennsylvania Bulletin. Pennsylvania Code Title 49 Chapter 35 – State Real Estate Commission
4
Pennsylvania Bulletin. Pennsylvania Code Title 49 Section 35.271 – Examination for Broker License
5
Commonwealth of Pennsylvania. Broker Standard Licensure Snapshot
6
Commonwealth of Pennsylvania. Apply for or Renew Professional Licensing
7
Pearson VUE. Pennsylvania Real Estate Candidate Handbook
8
Legal Information Institute. Pennsylvania Code Title 49 Section 35.336 – Disclosure Summary for Purchase or Sale of Real Estate
9
Legal Information Institute. Pennsylvania Code Title 49 Section 35.325
10
Pennsylvania General Assembly. Pennsylvania Statutes Title 63 P.S. Professions and Occupations – Section 455.604
11
Legal Information Institute. Pennsylvania Code Title 49 Section 35.304 – Disclosure of Licensure When Advertising Own Real Estate
12
Commonwealth of Pennsylvania. Real Estate Commission Renewal Information
13
Pennsylvania Bulletin. Pennsylvania Code Title 49 Section 35.384 – Qualifying Courses
14
Commonwealth of Pennsylvania. Real Estate Commission Licensure Guide
15
U.S. Department of Housing and Urban Development. Housing Discrimination Under the Fair Housing Act
16
U.S. Environmental Protection Agency. Real Estate Disclosures About Potential Lead Hazards
17
Consumer Financial Protection Bureau. TILA-RESPA Integrated Disclosure (TRID)
18
eCFR. 12 CFR Section 1024.14 – Prohibition Against Kickbacks and Unearned Fees