Who’s responsible for auditing ohio brokerages for their compliance with license laws?
Terms in this set (114)How much of a real estate license fee goes to pay for the Center for Real Estate Research? C.$10 The Center for Real Estate Research is funded through a $10 fee that is part of the license fee charged to both brokers and managing brokers. Who is responsible for preparing and conducting real estate license examinations? D.The Real Estate Commission The Real Estate Commission has that responsibility, though they delegate it to a professional testing service. The Real Estate Commission does all of the
following except: B.set real estate transaction fees The Commission does not set transaction fees. Fees are set by agreement between the agent and principal in each transaction. Which of the following is
NOT a purpose of the Center for Real Estate Research? B.Establish listing prices for properties The Center for Real Estate Research studies local economic conditions and proposes changes to real estate education curricula. It does not have a role in establishing listing prices. The following are all goals of Washington Center for Real Estate Research, except: D.writing real estate exam questions The Center for Real Estate Research does not write real estate exam questions; this is the job of the Real Estate Commission. A real estate license is needed for all of these individuals, except: A.home inspector A home inspector is not directly involved in representing others in the process of buying, selling, leasing, or advertising real property, so an inspector does not need a real estate license. J is selling real estate without a license. J is guilty of a: B.gross misdemeanor Selling real estate without a license is a gross misdemeanor, which in terms of seriousness is somewhere between a misdemeanor and a felony. Under the Washington real estate license law, someone must have a license in order to: A.cold call listing prospects and offer to perform brokerage services A person must have a real estate license to solicit members of the public and offer to perform real estate brokerage services on their behalf. L owns a bookstore and the lot it sits on. He hires M, a high school English teacher, to find a buyer for the business and property. He agrees to pay her $5,000. M finds a buyer and L pays her $5,000. Has M violated the real estate license law? A.Yes, because selling a business opportunity that includes real estate for pay requires a license Selling a business opportunity that includes real estate for compensation requires a real estate license. (An oral listing agreement does not violate the license law. It simply isn't enforceable if the seller refuses to pay the brokerage commission.) Which one of the following people does NOT need a real estate license? A.A building contractor (developer) A building contractor is often involved in selling homes he has built and owns himself. As long as he is acting in this capacity, he does not have to have a real estate license. Note that while an unlicensed person may act as a greeter at an open house, she can't host or conduct tours or even answer questions except to reiterate basic facts about the property from a form prepared by the agent. An attorney at law is exempt from real estate licensing laws when: B.arranging the sale of real property while settling a client's estate An attorney at law is exempted from licensing requirements when performing her duties as an attorney. The exemption doesn't apply to an attorney who provides real estate brokerage services not directly connected to a client matter. An unlicensed real estate assistant may do which of the following without a license? A.Receive referral fees in some cases A license isn't required in order to receive referral fees, provided the fee isn't contingent on a licensee's compensation. A real estate agent from Oregon is involved in a commercial property transaction in Washington. The agent from Oregon must do all of the following EXCEPT: D.register with the Department of Licensing at least 20 days before engaging in brokerage activities An out-of-state licensee may handle commercial real estate transactions in Washington without a Washington license if she works in cooperation with a brokerage in Washington. The Washington firm must have custody of the out-of-state broker's records concerning the in-state transaction, and it must be given a copy of the out-of-state broker's license. Out-of-state licensees aren't required to register with the Department of Licensing. Broker Linda obtains a listing from a seller that she has never previously worked with. However, when she tells Mel, her designated broker, about it, Mel says that he's had bad dealings with that seller before, and tells Linda to cancel the listing.
Which of the following statements is true? C.Linda must renounce the listing, because it belongs to the brokerage, not to her A listing belongs to a brokerage firm, not to an individual broker. The firm's designated broker is the final authority on whether or not to renounce a listing with a troublesome seller, even if the broker wants to continue. A Washington real estate broker takes a listing for a waterfront bungalow while working for Firm A. However, before a purchase agreement is signed, she terminates her affiliation
and begins working for Firm B. Which of the following statements is true? B.The listing belongs to the firm, and will remain with Firm A Listing agreements are the property of a firm, not a licensee. If a licensee leaves a firm mid-transaction, the listing still will belong to the firm and will not follow the licensee to a new firm. Here, the agent left before a ready willing and able buyer was found. (Generally, whether the firm owes a commission to the licensee is a matter of the licensee's employment agreement with the firm, not of law.) In Washington, a person licensed to
act on behalf of a real estate brokerage is called a/an: B.affiliated licensee A person licensed to act on behalf of a real estate brokerage is called an affiliated licensee. A licensee hires another licensee, who works for the same firm, to be an assistant for negotiating and selling properties. The
supervising licensee, in this relationship, must: A.be a managing broker A managing broker's license authorizes a licensee to manage other licensees. This applies even in the "team" context, not just to the management of branch offices. A licensee is
considering an employment offer from a brokerage firm. The position would involve control over the firm's operational and financial decisions. The level of licensure required would be: C.managing broker, with a designated broker endorsement The person who has ultimate responsibility for a firm is a designated broker. There is no designated broker license, though; the designated broker must have a managing broker's license and must receive a designated broker's endorsement for the license. A company that is organized as an LLC wants to represent clients in real estate transactions. Who must be licensed? D.The company and a person with control over operational and financial decisions The company itself must obtain a real estate license, and the company's designated broker must hold a managing broker's license. The designated broker (typically a member in an LLC) must have the ability to control the company's operational and financial decisions. (In addition, all other members of the firm acting as affiliated licensees must be individually licensed.) Which of the following would be true regarding the designated broker for a real estate company? He must: D.have absolute supervisory responsibility for all brokerage activities The designated broker must have absolute supervisory responsibility for all brokerage activities. Which of the following qualifications is required for a licensee to be eligible to be a designated broker? A.Control over the firm's operational and financial decisions A designated broker must hold a managing broker's license and must have the ability to control the operational and financial decisions of the firm. (The situation is a little circular since control in part comes from being the DB; however, the DOL application for designated broker certification asks if the applicant has controlling interest over the firm and this question tracks that wording.) To
be qualified to take the managing broker's examination in Washington, an applicant must have: B.been licensed as a full-time broker for at least three years within the five years preceding the application An applicant must have been licensed as a full-time real estate broker for at least three of the preceding five years in this state, or in any other state with comparable licensing requirements. Pamela would like to get a Washington broker's license. Which requirement must she meet? D.Complete a course in Fundamentals One requirement for a broker's license in Washington is completion of a course in Fundamentals. No college is required, Washington residency is not required, and the applicant must be at least 18 (not 21). To be eligible to take the real estate broker's exam, an applicant must have: C.completed a 60 clock-hour course in Real Estate Fundamentals and 30 clock hours in Real Estate Practices An applicant for the broker's exam must have completed a 60 clock-hour course in Real Estate Fundamentals and a 30-clock hour course in Real Estate Practices. Which of the following is not a requirement for a broker's license in the state of Washington? A.College diploma A college diploma is not a requirement for a broker's license. J passes the license exam on March 20. How
much time does J have to apply for his license, before being required to retake the license examination? B.12 months J has 12 months. If the license fee is not paid and the license placed on an active or inactive status within that time, the applicant will have to retake the exam and meet any additional licensing requirements that have been adopted in the interim. A license applicant who passes the exam: B.must apply for a license within one year To obtain a license, an applicant must apply for the license within one year after passing the exam. An applicant for a broker's license is allowed to start working after receiving notice that he passed the exam, as soon as he mails or hand delivers the completed application form and fee to the Department of Licensing (not as soon as the exam is completed). Real estate license fees are put into the: B.Real Estate Commission Account Real estate license fees (application fees, renewal fees, etc.) are placed in the Real Estate Commission Account in the state treasury. An applicant passes the broker's examination and takes the notice to the designated broker where she plans to work. At what point can she legally begin selling real
estate? B.When the application is mailed to the Department of Licensing Once an applicant has been notified that she has passed the state exam, she may begin working on the date she mails or hand delivers the signed, dated, and completed application form and license fee to the Department of Licensing. The completed form serves as an interim license for up to 45 days after the postmark or hand delivery date. L's broker's license is issued on October 16. L's license will expire at the end of: D.two years, on October 16 L's license will expire two years after its issuance on October 16. Licensees are required to keep the Director notified of changes in their: C.mailing address When a licensee changes her mailing address, she should notify the Director of the Department of Licensing of that change. (If a licensee's name changes for any reason, including marriage, the licensee should notify the Director. But the licensee does not need to notify the Director simply because of a change in marital status.) Prior to a licensee's first license renewal, she must complete how many hours of education in courses approved by the Director? C.90 She must complete 90 hours (30 hours in advanced real estate practices, 30 hours in real estate law, and another 30 in an elective). After a licensee's first renewal is complete, in order to renew the license again, the licensee must furnish proof that she has successfully completed how many clock hours in approved real estate courses? B.30 The requirement is 30 clock hours for the second renewal and for each subsequent renewal. Of course, when the licensee renews for the first time, she must complete 90 clock hours: 30 hours in advanced real estate practices, 30 hours in real estate law, and another 30 hours in elective courses. A Washington real estate licensee's license has expired because he did not pay his license fee as required. His license can be reinstated if he: C.pays back renewal fees, plus penalties A license that hasn't been properly renewed will expire. It can be reinstated within one year of the expiration, if the licensee pays a penalty and any back fees. If an agent fails to renew a
license within one year after expiration, the license is considered: D.cancelled If a license isn't renewed within one year after it expires, the license is canceled. (A canceled license may still be reinstated within two years of cancellation, if certain conditions are met.) S's real estate license is inactive. This is because: C.her license has been delivered to the Director of the Department of Licensing Any time a license is surrendered to the Director of the Department of Licensing, it becomes inactive. When does an active license become inactive? B.When it is delivered to the Director for any reason A license becomes inactive when it is delivered to the Director of the Department of Licensing for any reason.
Which of the following is TRUE about the holder of an inactive license? This person: A.may not perform any acts that require a real estate license An inactive licensee may not perform any act that requires a license, because she is deemed to be unlicensed. In Washington, an inactive licensee may: D.be an unlicensed assistant to a real estate licensee An inactive licensee is generally deemed to be unlicensed, and may not perform activities that require a license. An inactive licensee would still be able to perform the duties that any other unlicensed assistant could perform. Who needs to submit continuing education credits with each license renewal? C.All active licensees Both brokers and managing brokers must take continuing education courses, so long as they are actively licensed. Inactive licensees do not need to comply with the continuing education requirement, although a 30-hour class is required in order to reactivate a license that has been inactive for more than three years. It is not necessary to complete 30 hours of continuing education in order to renew
a/an: C.inactive license The renewal fee must be paid every two years, but as long as the license remains inactive, there is no education requirement. However, after three years of inactive status, reactivating the license—as opposed to renewing it—does require a 30-hour course. At what minimum point must an
inactive licensee take a 30 clock-hour course in order to reactivate her license? C.Three years A licensee must take a 30 clock-hour continuing education course in order to reactivate a license that has been inactive for more than three years. Under Washington's real estate agency law, an agency relationship begins when a: A.licensee undertakes to provide real estate brokerage services to a principal Under the real estate agency statute, an agency relationship with a seller is created when a listing agreement is signed. An agency relationship with a buyer is created when the licensee performs any real estate brokerage services for the buyer, unless there is a written agreement to the contrary (for example, the licensee has already entered into a listing agreement with the seller). In Washington, an agency relationship is created between a buyer's agent and the buyer when: C.the agent performs brokerage services for the buyer A buyer's agent enters an agency relationship when he performs any real estate brokerage services for a buyer, unless there is a written agreement to the contrary A real estate licensee would automatically enter into a buyer agency relationship when she: B.agrees to show the buyer another agent's listings In Washington, a buyer agency relationship is formed as soon as a licensee agrees to perform real estate brokerage services for a buyer. However, there's an exception to this rule: if the licensee already has an agreement to represent someone else, then no buyer agency is automatically created. The listing agent would have to do something more substantial than what's described in answer A to create a dual agency, such as counseling the buyer on how much to offer. T represents J, a buyer. A week after J purchases a home, he decides to resell it. What role can T play in the resale transaction? A.T could act as dual agent for the two parties, or represent either of them In the new transaction, T may represent the buyer, the seller, or, if he makes the proper disclosures, he may represent both parties as a dual agent. If representing the new buyer, T would not be able to disclose to the buyer any confidential information previously learned about J. K, an agent for ABC Realty, lists M's home for sale. J, who also works for ABC Realty, writes an offer from the Zs to purchase M's home, which M accepts. Which of the following statements is NOT true? D.K, J, and ABC Realty are all agents for the seller In Washington the licensee who lists the home is an agent for the seller. So is his firm. The agent who sells the property is the agent for the buyer. Since both listing and selling agent work for the same brokerage, the brokerage is a dual agent. Washington's Real Estate Brokerage Relationships Act: C.requires a pamphlet on agency relationships to be given to all parties before any written agreement Washington's real estate agency statute requires agents to give the pamphlet on agency relationships to all parties. The duty of confidentiality applies only to a principal, not to all parties. A
licensee who knows that there's an encroachment on the seller's property is discussing the property with a buyer. Which of the following statements is true? B.The licensee should mention the encroachment and tell the buyer to consult an attorney before making an offer on the property The encroachment must be revealed to the purchaser, and its implications should only be explained by an attorney. When making the required agency disclosure, a licensee must always: A.conduct herself in conformity with the agency disclosure she has made The licensee's conduct must be in accord with the agency disclosure. Which of the following regarding
responsibilities of a licensee is NOT true? D.The agency disclosure affirms that the licensee has made an independent inspection of the property The licensee does not owe anyone, including the buyer, a duty to independently inspect the property or to investigate the financial capability of any party to the transaction. What does the principle of vicarious liability refer to? A liability: A.that arises from the acts or omissions of one's agent It is a liability imposed upon one person, such as a seller, because of the act or omission of another, such as the seller's agent. The doctrine of vicarious liability does not apply to real estate agency in Washington. Washington
state's real estate agency law does not address which of the following? D.Penalties for not disclosing agency status Washington's real estate agency law is found in the Real Estate Brokerage Relationships Act (RCW chapter 18.86). It addresses the topics listed in answers A - C (definition of dual agency, creation and termination of agency, and vicarious liability), but there is no reference in the law to penalties for not disclosing agency status. Penalties are found in the license law (RCW chapter 18.85). A property manager handling a vacant building fails, for several months, to keep out vagrants who damage the property. Who is liable? C.The property manager as well as the designated broker (for failing to properly supervise the licensee) Generally, property managers must be licensed (as opposed to people who simply collect rent and sign leases and perform basic maintenance). In addition, the answer options strongly suggest that this is a licensee working for a brokerage. The property manager here is liable for failing to exercise reasonable care in carrying out the duties she took on for her client. The property manager's designated broker may also be liable for failing to supervise the property manager adequately. Branch manager K has a bookkeeper, who is a licensed real estate agent. K gives an earnest money check in the amount of $3,000 to the bookkeeper for deposit. The bookkeeper records
it as a $1,000 deposit, and then deposits the balance of the earnest money in his personal account, which is grounds for disciplinary action. Who is subject to disciplinary action? D.The designated broker, the branch manager, and the bookkeeper The designated broker is responsible for all activity within her company; the branch manager is responsible for activity within his branch office. The bookkeeper is ultimately responsible and therefore subject to discipline by the Department of Licensing as well. A designated broker's supervisory duties do NOT include supervising: D.licensees affiliated with other brokerages in the same multiple listing service A designated broker is responsible for supervising all of his own affiliated licensees (brokers, managing brokers, and branch managers), but not licensees affiliated with other brokerages. A broker pays a desk fee each month and receives 100% of commissions. The broker commits an act that is grounds for
disciplinary action. The designated broker could be subject to disciplinary action: C.because the designated broker is responsible for all of the firm's brokerage activities A designated broker may be liable for an affiliated licensee's actions because she has ultimate responsibility for the firm's brokerage activities. If a designated broker wishes to terminate an affiliated licensee, or an affiliated licensee wants to terminate employment with a brokerage, which of the following statements is true? A.Either party may act unilaterally to end the relationship Either a designated broker or an affiliated licensee may act unilaterally in order to terminate their employment relationship. Broker T explains to her designated broker that
she is leaving the firm for a better opportunity with another brokerage. What must T's designated broker do? A.Immediately send her license to the Director of the Department of Licensing The designated broker must immediately return the individual's license to the Department of Licensing. A summary of the licensee's conduct while employed by the firm would be necessary only if that conduct could result in disciplinary action by the Director. When a licensee is terminated, the date of termination is the: A.postmark date or the date the license is hand-delivered to the Department of Licensing The termination date is the postmark date or the date the license is hand-delivered to the Department of Licensing. A managing broker asks his brokerage firm to release his license and listings so he can form his own firm. The firm must: B.surrender the license immediately, but not the listings If a licensee terminates a relationship with a brokerage firm, the firm must surrender the license immediately. The listings, however, belong to the firm and not to the individual licensee, so they will stay with the firm. An affiliated licensee requests that her designated broker release her license and her listings so that she can open her own brokerage.
The designated broker must surrender the license: A.immediately The brokerage must release the affiliated licensee's license at once, and without any conditions attached. H quits a broker position with XYZ Realty. When must H's designated broker return her license to the
Director? A.Immediately The license must be returned to the Director immediately, without conditions. A licensee is about to change her business location. Which of the following should she do? D.Surrender her license, and apply for an updated license with the correct location If a licensee plans to change her place of employment, the firm's designated broker or the licensee surrenders the license. The Director of the Department of Licensing will then issue a new license for the new location. A dual-state brokerage firm doing business in Washington must: A.maintain a trust account in Washington if holding any funds in trust A dual-state brokerage must maintain a trust account in a Washington depository institution if holding funds in trust for Washington clients. Which of the following statements about a blind ad is true? B.It fails to identify the advertiser as a real estate agent The license law requires licensee ads to include the name of their real estate firm as licensed (or use its assumed name). Omitting the firm name is called a blind ad and is prohibited. A licensee, with permission from his designated broker, sets up his own subsection S corporation, which he calls M Realty. He then rents a
billboard and advertises a listing on it, using only the M Realty name. Is this legal? A.No, because ads must give the name of the firm Under Washington's real estate license law, every advertisement placed by a licensee on behalf of others must contain the name of the real estate firm as licensed. This is true even if a licensee conducts his own operations under a separately named business entity. A group of affiliated licensees form a team, the XYZ Corporation, within the brokerage they work for (ABC Real Estate). ABC has a firm license, but XYZ does not. Whose name must appear in all the advertising of those
affiliated licensees? A.ABC Real Estate The license law requires that all advertising must include the brokerage firm's name, as licensed, so the name of ABC Real Estate would need to appear in all advertising. An affiliated licensee's business card lists the name under which
she does business as well as the brokerage firm's licensed name. The firm must require the licensee to: A.also include the licensee's name as licensed A licensee may do business under a different name other than the name on his or her license, if the Director gives written permission. An Internet website operated by a licensee displays the properties he has listed. The site must give the: B.brokerage's licensed name A licensee should fully disclose his licensed status in all Internet communications. This includes providing the name of his brokerage firm as registered with the Department of Licensing. The city and state where the firm's office is located is also required, but its physical location--a specific address--is not. Addresses of listed properties and an email address for the firm are also not required. If a real estate agent is sending out emails offering his services, the federal CAN-SPAM Act requires the
agent to: D.tell recipients how to opt out of receiving future emails The CAN-SPAM Act is a federal law that places limits on unsolicited emails. One requirement is that an email must give information on how recipients can avoid receiving further emails. A real estate agent would like to contact a buyer that he previously represented, to ask if that person would be interested in listing her home or if she has any referrals. Under what circumstances could the agent contact that person without having to consult the Do Not Call registry? B.He represented the buyer within the previous 18 months If an agent has an established business relationship with a previous client, he may call that person within the 18 months following that person's last transaction, even if that person has placed her name on the Do Not Call registry. (If that person then asks the agent to stop calling, though, the agent must honor that request.) A brokerage firm's trust accounts must be opened: A.in the firm's name, and must be designated as trust accounts A trust account must be opened in the firm's name (as trustee) and must also be designated as a trust account. The depository institution must be in Washington State. A real estate agent took a $3,000 cash earnest money deposit on Friday morning. She had another appointment on Friday afternoon and didn't want to misplace the money over the weekend, so she deposited it into her personal bank account. First thing on Monday morning, she
transferred the money to her firm's trust account. She has: C.commingled funds The real estate agent has violated state laws concerning trust fund handling, by commingling trust funds with her own personal funds. Which
of the following would not be considered a nominal earnest money deposit, subject to the pooled interest-bearing account requirement? D.$11,000 in the form of a cashier's check Nominal earnest money deposits are $10,000 or less. Which of the
following statements regarding pooled interest-bearing trust accounts is true? C.Earnest money deposits over $10,000 can be placed in separate trust accounts Earnest money deposits of $10,000 or less must be placed in a pooled interest-bearing trust account (property management accounts are exempted from this requirement). Deposits over $10,000 do not have to be placed in the pooled accounts, but they can be Which of the following is EXEMPT from the pooled interest-bearing account requirement? D.Property management trust funds Property management trust funds are exempt. The pooled interest-bearing account requirement applies to earnest money deposits of $10,000 or less. In the course of business, a firm earns property management fees that are to
be paid out of the trust account. The fees must be taken out of the account: A.monthly They must be removed from the property management trust account on a monthly basis. According to the Washington real estate license law, which of the following can be paid directly from a real estate firm's trust account? B.Commissions payable to the firm and any cooperating brokerage Commissions payable to the firm and to any cooperating brokerage can be paid directly out of a trust account. The firm cannot pay the commissions owed to affiliated licensees out of the trust account. It would transfer the entire commission payable to its office into the general account and pay the affiliate(s) out of that account. Real estate transaction records should be kept for a minimum of: C.three years Transaction records should be kept for at least three years after the transaction closes. Addenda to a purchase and sale agreement must be: B.kept in the brokerage's transaction file A transaction file should include all modifications or addenda to any agreement. The transaction file should be kept where the firm is licensed to have an office, not in a broker's home office. The addenda will be signed by the buyer and seller, not the broker. A firm's transaction file should include all of the following, except: D.the buyer's preapproval letter A transaction file should include the purchase and sale agreement, settlement statements, and any other agreements or documents relevant to the transaction. It would not need to include the buyer's preapproval letter. A brokerage manages a property. The property management records must be kept in: A.a location where the firm is licensed to have an office All property management records must be kept at a location where the firm is licensed to have an office, which can be either a main office or branch office. An affiliated licensee rarely works in the firm's main office. The records for the licensee's transactions must be kept in: B.the firm's office A firm must keep all records at its main office or a branch office. While it may be advantageous for a licensee who is rarely in the office to keep copies of the records for personal reference, the law makes the firm ultimately responsible for the custody and accuracy of all required records. A real estate agent sold
a home for $275,000. Prior to closing, the agent's license was revoked on grounds of moral turpitude. With respect to his eligibility for the commission, which of the following statements is true? A.He is eligible for the commission because he was duly licensed when the sale was made The commission is earned when the sale is made, not when it is paid (at closing). The agent's license was revoked after the sale was made, so the agent was eligible for a commission when the services were provided and is still entitled to collect it. To be entitled to sue for a commission, a person must be able to prove that at the time the real estate activities were performed, she: A.was licensed A person must have been validly licensed at the time she engaged in the real estate activities for which a commission is claimed. A broker arranges a transaction while working for ABC Realty. Before the transaction closes, the broker's license becomes inactive. Which statement about the broker's commission is true? B.ABC Realty can pay the commission to the broker A broker may receive a commission as long as she was properly licensed at the time she procured a promise for the payment of compensation. An affiliated licensee owns a wholly owned S corporation, A Realty. He instructs an escrow agent to issue a commission check directly to A Realty. How has he
violated the real estate license law? B.Commissions can be paid to licensees only via their firm A licensee may be paid a commission only by the real estate firm he is affiliated with.
Affiliated licensees are not designated brokers; they work for a firm. "A Realty" cannot be a brokerage because no designated broker has a controlling interest in the entity. Which of the following would NOT be grounds for disciplinary action against a licensee? A.An agent gives a copy of the sales agreement to the purchaser when it has been signed only by the offeror In regard to a purchase and sale agreement, the purchaser and the offeror are the same person. Thus, giving a copy of the agreement to the purchaser when it has been signed only by the offeror (i.e., the purchaser) is something the agent MUST do. Obviously, that would not be a license law violation. A licensee has obtained the signatures of the buyer and seller on a sales contract. Failure to do which of the
following could result in disciplinary action by the Director? B.Provide a copy of the sales contract to the buyer and the seller when they signed it A copy of the offer must be given to the buyer when she signs it, and a copy of the contract must be given to the seller when he signs accepting the offer (creating a contract). The completed contract must then also be given to the buyer. Who is ultimately responsible for the delivery of the earnest money? B.Designated broker While the licensee who receives the funds has initial responsibility for handling the deposit in compliance with the license law, as with all brokerage activities, the designated broker has ultimate responsibility. Unless the purchase agreement or other contract states differently, an earnest money check given to a real estate licensee shall be made out to the: A.licensee's firm, as licensed The question and answer correctly state the law; however, it is common practice for the buyer to name an escrow agent in the offer and make out the check to that person. The selling agent must NOT accept a promissory note as an earnest money deposit: B.unless the purchase and sale agreement discloses that the deposit is a note When preparing the buyer's offer to purchase, the selling agent must disclose on the purchase and sale agreement form that the deposit is in the form of a promissory note (or any other form that is not the equivalent of cash). The seller can then take this into account in deciding whether or not to accept the buyer's offer. A licensee can serve as a closing agent for a fee in the state of Washington, if the: A.licensee is a licensed escrow officer A licensee who is not a licensed escrow officer can act as closing agent for any transaction in which she is the agent of record, but she cannot collect a fee, other than her normal commission. However, if the licensee is also a licensed escrow officer, she may collect a fee for acting as a closing agent. A licensee manages a property for one of her friends for a fee of $70 per month. Which of the following is true? B.A written agreement is required between the licensee's firm and the property owner Regardless of the amount of the fees involved, there must be a written property management agreement between the owner and the real estate firm. The property manager represents the firm, so the agreement is between the owner and firm (as opposed to between the owner and property manager). According to Washington license law, a licensee who is acting as a property manager must give the owner a summary statement for all of the following, except: B.property condition A summary statement is a brief report showing the property's financial status over a certain period of time, such as one month or one quarter. It would not include a report on the managed property's physical condition. Q is a property manager. Q also owns a carpet cleaning company. Q's carpet cleaning company provides services for all of the
properties managed by Q. This is permissible if Q: B.discloses the arrangement in writing to all affected property owners Q must disclose his interest in the carpet cleaning company and obtain the written permission of all the owners whose properties are affected by this arrangement. When a broker attempts to renew his license, he intentionally lists a 3-hour course twice in order to reach 30 hours. The Director can: B.suspend the license and charge him with misrepresentation in obtaining or reinstating a license It is a violation of the license law, and grounds for disciplinary action, for a licensee to engage in misrepresentation or concealment of a material fact when obtaining or reinstating a license. A licensee hires an unlicensed assistant. While the licensee is on a two-week
vacation, the assistant helps negotiate contract addenda. The licensee could be disciplined under the Uniform Regulation of Business and Professions Act for: B.aiding and abetting unlicensed practice A licensee may be disciplined under the license law for aiding or abetting an unlicensed person to perform real estate activities that require a license. Under the Uniform Regulation of Business and Professions Act (URBPA), which of the following actions by a licensee would constitute unprofessional conduct? D.Failure to provide a buyer with a property disclosure form Depending on the circumstances, failure to provide a property disclosure form in a transaction where one is required could be considered incompetence, negligence, malpractice, or misrepresentation. In any case, it violates the Uniform Regulation of Business and Professions Act. An advertisement must include the firm's name as licensed, but not the name of the firm's designated broker or the telephone number. A licensee would not be disciplined for: D.offering to advertise a property, for a fee, for a "For Sale by Owner" seller It's legal for a real estate licensee to solicit business from a �For Sale by Owner� seller. If the FSBO seller agrees that the licensee will help sell the property by advertising it on the MLS and elsewhere, in exchange for a fee, then the seller and licensee would simply enter into a listing agreement. (In addition, the other three options can be discarded via process of elimination. Undisclosed receipt of compensation from both parties, failure to supervise employees, and blind ads are all illegal.) Under Washington license law, a licensee's license may be suspended if she hasn't: A.made timely payments on a federally guaranteed educational loan Washington law permits the Director of the Department of Licensing to suspend the license of any licensee who is not in compliance with payment requirements for a guaranteed student loan. Q falls behind on his child support payments. The matter is forwarded to the Director of the Department of Licensing. What
action is available to the Director? She can: A.suspend Q's license The Director can suspend Q's license until satisfactory arrangements are made to correct the delinquency. Z, a real estate licensee, has been certified by the Department of Social and Health Services as not in compliance with his
court-ordered child support payments. What disciplinary action is available to the Director of the Department of Licensing? A.Suspend Z's license The Director can suspend Z's license until Z has repaid the delinquency or otherwise complied with the order. The Director's authority to revoke a license or issue a cease and desist order doesn't extend to cases of failure to pay child support. A licensee fails to attend a scheduled disciplinary hearing. What happens? C.The hearing is held without the licensee present If a licensee does not show up for a disciplinary hearing, the hearing proceeds without the licensee present. If the licensee requests a hearing after receiving a statement of charges, the Director will order a hearing to be held. How much notice of this hearing must be given to the licensee? C.30 days' notice A licensee must be given at least 30 days' notice before a disciplinary hearing is held. The Director may impose all of the following penalties on a licensee for violating the license law, EXCEPT: D.requiring licensee to pay for costs of formal hearing A licensee may have her license revoked or suspended, or be required to complete additional education. However, a licensee is never required to pay for the costs of a disciplinary hearing (other than the costs of preparing a transcript, if she wishes to appeal the findings). S's license is temporarily suspended by the Director for a violation of the license law. S is also fined $500. The money collected as a result of the fine is: C.deposited in the real estate education account, to be used solely for education for the benefit of licensees Fines are deposited in the education account and used for the education of licensees. In a disciplinary action, the Director of the Department of Licensing can do any of the following, EXCEPT: A.award damages to individuals defrauded by real estate licensees The Director cannot award damages to victims of real estate fraud. Many states have what is called a "recovery fund" from which victims of real estate fraud can recover at least part of their losses. Washington doesn't have such a remedy for the consumer, however. A licensee is a defendant in a civil suit stemming from real estate activities. When must the licensee notify the Real Estate Program Manager? B.Within 20 days of learning of a verdict or judgment against her A licensee must notify the Department of Licensing's Real Estate Program Manager within 20 days of learning of any civil court order, verdict, or judgment entered against the licensee, if it involves real estate or business activities. A licensee is
criminally charged for stealing prescription drugs on July 2. He tells his designated broker about the charges on July 5. Who must notify the Real Estate Program Manager? B.The licensee must provide notice by July 22 A licensee must notify the Real Estate Program Manager within 20 days of learning of any criminal complaint or indictment in which the licensee is named as a defendant. (A conviction has yet to occur in this situation so answer A doesn't apply; if the licensee is eventually convicted, he will also have to notify the DOL of the conviction within 20 days.) Price fixing (including setting commission rates in a community) is prohibited by the: C.Sherman Antitrust Act and state antitrust laws The Sherman Antitrust Act and state antitrust laws prohibit price fixing, group boycotts, market allocation, and tie-in arrangements. Maya and Andrew are real estate agents who work for competing brokerages. They don't like a
new discount broker and decide together not to show any of the new broker's listings. This is a violation of the Sherman Act because it's: A.a group boycott A group boycott would include an agreement between two competitors to exclude other companies from fair participation in real estate activities. Darren and Martin
are agents for a large brokerage firm. They decide that Darren will specialize in listing and selling houses on the north side of the river and Martin will specialize in listing and selling houses on the south side of the river. Such a practice is: D.legal, because the prohibition against market allocation does not apply to agents working for the same firm If Darren and Martin worked for competing brokerage firms, this would be market allocation, and a violation of the Sherman Act. However, because they work for the same firm, they are technically not in competition with each other and their actions are legal. Sets with similar termsCalifornia Real Estate Chapter 16169 terms JeffreyAdamos NH State Material Real Estate Exam70 terms jackieperry9 Arkansas Real Estate License Law173 terms khadijah_walker4 Louisiana License Law65 terms Laura_Hartley6 Sets found in the same folderLesson 13: Closing Real Estate Transactions: Pop Q…21 terms giselle_gasca Lesson 15: Civil Rights and Fair Housing: Pop Quiz38 terms giselle_gasca Lesson 16: Essentials of Property Management: Pop…49 terms giselle_gasca Fundamentals Exam180 terms jennywhojennyvu Other sets by this creatorLesson 2: Listing Agreements7 terms giselle_gasca Lesson 1: Agency Relationships: Terms40 terms giselle_gasca Lesson 17: Real Estate Careers and the Real Estate…33 terms giselle_gasca Lesson 16: Essentials of Property Management: Terms54 terms giselle_gasca Recommended textbook solutions
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What entity investigates complaints against real estate licensees in Ohio?Ohio law provides for a voluntary, informal meeting of the licensee and the complaining party to try to reach a resolution of the complaint. If the parties do not agree to a meeting or fail to resolve differences, the Ohio Division of Real Estate investigates the complaint.
Who enforces Ohio real estate laws?The Ohio Division of Real Estate is responsible for the licensing and oversight of Ohio real estate salespersons, brokers, and brokerages. Failing to comply with the Division's rules and Ohio Law can cause serious consequences. Just one legal misstep may cause your license to be suspended.
Are real estate brokers regulated in Ohio?Regulating Real Estate Professionals. The Division of Real Estate and Professional Licensing is part of the Ohio Department of Commerce. This division is responsible for licensing Ohio's real estate brokers, salespeople, appraisers and foreign real estate dealers and salespeople.
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