Understanding License Law: Key Topics and Disciplinary Actions in Real Estate

Presentation Transcript

1. License Law Game Show
2. TODAY’STOPICS
3. RECAD
4. DISCIPLINARY ACTIONS
5. ESCROW FUNDS
6. COMPANIES & BROKERS
7. MISC. PROVISIONS
8. LICENSE LAW RECAD 10 15 20 25 5 Disciplinary Actions 5 10 15 20 25 5 10 Escrow Funds 20 25 15 10 15 25 5 20 Companiesand Brokers Misc. Provisions 25 5 15 20 10 Big Point Question
9. RECAD When must the RECAD form be provided to a consumer? Answer
10. As soon as reasonably possible and before confidential information is disclosed. §34-27-82(c) Back to Board
11. RECAD What is the real name of the RECAD form? Answer
12. Real Estate Brokerage Services Disclosure form 790-X-3-.13 Back to Board
13. RECAD If no signed brokerage agreement is entered into, what is the licensee’s relationship to the consumer? Answer
14. Transaction Broker §34-27-82(e) Back to Board
15. RECAD Which RECAD relationship allows one company to act as an agent for both sides of the transaction? Answer
16. Limited Consensual Dual Agency §34-27-81(11) Back to Board
17. RECAD Name the two exceptions to the requirement that licensees must provide a RECAD form to the consumer? Answer
18. For rental or property management services 2. Consumer is acting on behalf of an artificial entity §34-27-82(c)(d) Back to Board
19. DISCIPLINARY ACTIONS What is the maximum fine per charge that the Commission may impose? Answer
20. $2,500 §34-27-36(a) Back to Board
21. DISCIPLINARY ACTIONS After a consumer has executed a document, what must the licensee do? Answer
22. Promptly furnish a copy to the consumer §34-27-36(a)(10) Back to Board
23. DISCIPLINARY ACTIONS What is it called when a licensee tells a lie about something significant in a transaction that causes damages? Answer
24. Material Misrepresentation §34-27-36(a)(3) Back to Board
25. DISCIPLINARY ACTIONS If you represent both the seller and the buyer, for whom do you prepare a net sheet? Answer
26. Both the buyer and the seller receive a net sheet 790-X-3-.04 Back to Board
27. DISCIPLINARY ACTIONS When a licensee knows that money is being given “under the table” in a transaction involving a mortgage loan, what should he do? Answer
28. Disclose this fact to the mortgage lender §34-27-36(a)(21) Back to Board
29. Escrow Funds When a shortage is found by an auditor, what is the charge filed by the Commission against the broker? Answer
30. Failure to deposit and account for funds at all times §34-27-36(a)(8)a&b Back to Board
31. Escrow Funds What must a salesperson or associate broker do immediately upon receiving earnest money? Answer
32. Turn money over to her Qualifying Broker 790-X-3-.03(2) Back to Board
33. Escrow Funds What keeps a broker from buying gold with escrow funds and holding the gold in trust for consumers? Answer
34. Law requires that funds be deposited into a federally insured bank account §34-27-36(a)(8)b Back to Board
35. Escrow Funds If a contract/offer calls for earnest money but doesn’t specify when it is to be deposited, when is it deposited? Answer
36. When the offer becomes a contract 790-X-3-.03(3) Back to Board
37. Escrow Funds What offense is committed if a broker deposits earnest money into her personal account? Answer
38. Commingling of funds §34-27-36(a)(8)a Back to Board
39. Companies & Brokers Who is required to make the company license application? Answer
40. Qualifying Broker §34-27-32(e) Back to Board
41. Companies & Brokers Besides having a broker license, what else is required for someone to act as a Qualifying Broker? Answer
42. His principal business must be as a real estate broker and he must be in a position to supervise §34-27-36(a)(8)b Back to Board
43. Companies & Brokers What happens to a company when a Qualifying Broker submits written notice to the company and the Commission that she is no longer the QB? Answer
44. The company is out of business §34-27-34(d) Back to Board
45. Companies & Brokers Can a Qualifying Broker serve as a QB at different locations? Answer
46. No, he may not §34-27-32(g) Back to Board
47. Companies & Brokers Is it okay for the QB not to have authority to deposit into and write checks out of escrow accounts if she is not the company owner? Answer
48. No, Qualifying Brokers MUST have these authorities 790-X-3-.03(1) Back to Board
49. Misc. Provisions Can individuals manage and lease residential apartments without being licensed? Answer
50. Yes, they are exempt from licensing requirements §34-27-2(b)(7) Back to Board
51. Misc. Provisions Is there ever a time that a Salesperson can serve as a Qualifying Broker of a company? Answer
52. Yes, if he applies for a temporary broker license after the death or disability of the Qualifying Broker §34-27-32(i) Back to Board
53. Misc. Provisions If a licensee does something REALLY bad, can the Commission revoke her license without a hearing? Answer
54. No, every licensee is entitled to a hearing §34-27-36 §34-27-37 Back to Board
55. Misc. Provisions Is an applicant automatically denied a license if he has a criminal record for a felony or crime involving moral turpitude? Answer
56. No, the Commission may or may not allow him to be licensed §34-27-32(a) Back to Board
57. Misc. Provisions When a licensee sells her own property that is owned with a relative in an LLC, is it acceptable to simply note in the contract that she has a real estate license? Answer
58. No, she must disclose the relationships to the buyer in writing before the buyer becomes contractually obligated §34-27-84(a)(6) Back to Board
59. What is the name of the newsletter in which your name will appear if you are found guilty of any of these provisions? Answer
60. The Update Back to Board