A "For Sale by Owner" property owner has offered a flat fee to any licensee who procures a buyer. Under Pennsylvania license law, this arrangement is that it is:

This statement is misleading because Pennsylvania law does not stipulate that the compensation must be tied to prevailing commission rates. Instead, it allows property owners to set their own fees as long as the payment is processed through the employing broker. Thus, the limitation on fee amounts is inaccurate.

This assertion misinterprets the license law. While compensation must ultimately be handled according to the terms of the agreement, it can be offered prior to closing, and there is no requirement stating that all compensation must wait until the closing process.

This choice incorrectly assumes that compensation cannot come directly from property owners. Pennsylvania law permits direct offers of compensation from owners, provided that the payment is processed through the licensee's broker. Therefore, this statement fails to recognize the flexibility allowed in compensation arrangements.