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LICENSE LAW

The Fined, The Suspended. and The Revoked. LICENSE LAW. TODAY’S TOPICS. The Auditor Dropped In. Meet An Investigator. Come See Commissioners. Featured in the Newsletter. Find a New Line of Work. LICENSE LAW. The Auditor Dropped in. 5. 10. 15. 20. 25. Meet an Investigator. 5.

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LICENSE LAW

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  1. The Fined, The Suspended and The Revoked LICENSE LAW

  2. TODAY’S TOPICS

  3. The Auditor Dropped In

  4. Meet An Investigator

  5. Come See Commissioners

  6. Featured in the Newsletter

  7. Find a New Line of Work

  8. LICENSE LAW The Auditor Dropped in 5 10 15 20 25 Meet an Investigator 5 10 15 20 25 5 20 25 Come see Commissioners 10 15 5 10 15 25 20 Featured in the Newsletter Find a New Line of Work 25 5 10 15 20

  9. Tim is an associate broker and does a little property management “on the side.” Since this is not through Tim’s company, can the property owner pay a fee directly to Tim? Show Answer

  10. No way! All compensation for real estate activities must be paid through his broker. §34-27-36(a)(14) Back to Board

  11. Jay Salesperson receives $1,000 in cash for earnest money on an offer to purchase. Jay takes it to Betty Broker who staples the bills to the contract and puts it in the company safe. After all, it is okay to keep it until the offer becomes a contract, isn’t it? Show Answer

  12. It would be….. except not cash! Go to the bank! Now! Deposit it! Now! Rule 790-X-3-.03(3) Back to Board

  13. Little Joe both listed and sold the house at 123 Ponderosa Drive. What are his responsibilities regarding the net sheet? Show Answer

  14. What are you waiting for? Give it to both the buyer and seller. Who else is going to do it? Rule 790-X-3-.04 Back to Board

  15. As directed by Broker Jim, Bookkeeper Janie has been paying the rent and utilities out of the escrow account for the last 6 months. When the AREC auditor arrives, Janie quickly shreds the current contracts because the earnest money for them is not in the escrow account. Anybody in trouble here? Show Answer

  16. Broker Jim…you are. What the heck were you thinking? §34-27-36(a)(8)(a)(b)(c) §34-27-36(a)(31) Back to Board

  17. Judy owns a property management company for which she hires a broker. Judy does not have a real estate license but as the owner, she solicits renters, works out the terms of the leases, signs them, and collects rents. Has the owner violated License Law? Show Answer

  18. Judy is not a very smart owner. She is guilty of engaging in real estate activities without a license. There is no limit on the fine. OMG! It can be an amount equal to the gain or economic benefit derived from the violation. §34-27-36(c)(1)(2) Back to Board

  19. Jane and Dave received a copy of their signed contract for the first time at closing. Did that satisfy the requirements of §34-27-36(a)(10)? Show Answer

  20. Probably not. That does not sound like “reasonable promptness” to me. §34-27-36(a)(10) Back to Board

  21. To induce Buyer Hoss to buy a 3000 acre ranch, Seller Hopsing agreed to throw in a 100 head of cattle and a new Mercedes. They didn’t think about telling the mortgage lender so Broker Jones didn’t say anything to the mortgage lender either. Should Broker Jones get a call from an AREC investigator? Show Answer

  22. He may get several calls, plus a formal complaint! §34-27-36(a)(21) Back to Board

  23. Steve Salesperson formed an LLC and asked his Qualifying Broker to disburse his commissions to his LLC? Can the broker do this? Show Answer

  24. Well of course. Isn’t that what LLC’s are for? §34-27-36(a)(21) Back to Board

  25. Commission investigator, Mr. Kelly, called Broker Sassy to ask her questions regarding a recently received complaint. Broker Sassy told Mr. Kelly that she and the purchaser were working out their problems and specific information about the transaction is confidential. What happens to Broker Sassy now? Show Answer

  26. Investigator Kelly will be going to visit Broker Sassy and then filing a formal complaint if she is not forthcoming with the requested information. §34-27-36(a)(28)(29) Back to Board

  27. Joan is licensed with Thompson Realty. Joan decides to sell her house and advertises it “For Sale By Owner.” What will the Commission investigator have to say about this? Show Answer

  28. Nothing! As far as advertising goes,It is fine with the Commission. However, Joan must abide by all other provisions of License Law. Rule 790-X-1-.03(2) Back to Board

  29. Is it against the law for Carmen to say she took the real estate examination when she did not? Show Answer

  30. Only if she says it to the Real Estate Commission. §34-27-36(a)(1) Back to Board

  31. Jethro moves away and asks Broker Bill to sell his house. Jethro just wants enough to pay the mortgage plus $5,000 so Bill can keep anything above that. Bill can make some extra money and Jethro gets his house sold. This seems like a good deal for both. Any problem with this? Show Answer

  32. Oh yes…there is a big ‘ole problem. This is a net listing and they are illegal. Don’t do this! §34-27-36(a)(20) Back to Board

  33. Sally is transferring from Super Realty to XYZ Realty. She has 5 listings, one of which is her cousin Jake’s house. The broker at Super Realty told Sally she could not take her listings with her. Sally convinces Jake to cancel his listing and transfer it to the XYZ company where she sells his house. Has a violation of License Law occurred? Show Answer

  34. Yep, “Come see Commissioners.” §34-27-36(a)(13) Back to Board

  35. Mr. Kleen Carpet Service has an agreement with Trent Realty where Trent Realty receives $50 for each buyer or seller who uses Mr. Kleen. Since Mr. Kleen is a good, reliable carpet cleaning service, this seems like a great arrangement for both. Agree? Show Answer

  36. Ever heard of a kickback or rebate? Not good. §34-27-36(a)(12) Back to Board

  37. Salesperson Jill had 2 open houses scheduled on the same day so she paid her unlicensed cousin Brenda to hold one of them for her. Jill carefully explained to Brenda how to show the house to generate interest but told Brenda if anyone wanted to make an offer to call her because only a licensed person can write the offer. Is Jill’s broker going to be proud of her? Show Answer

  38. Maybe, but the Real Estate Commission is not. §34-27-36(a)(17) Rule 790-X-1-.04 Back to Board

  39. Is the fine for writing the Commission a bad check always $250? Show Answer

  40. What makes you think that? It can be anywhere from $100 to $2500. §34-27-36(a) Back to Board

  41. Prospective Buyers Billy and Shirley Smith ask the listing agent, John, if the roof leaks or has ever leaked. Although John knows that it leaks, his seller has instructed him not to disclose it so John tells the buyers that he doesn’t think so. What has John just done? Show Answer

  42. Besides lying, John has made a material misrepresentation. §34-27-36(a)(3) Back to Board

  43. Broker George drives by a nice house that is vacant. After checking with neighbors, he finds the owners have moved out of town. He places a sign in the yard and gets an offer two weeks later. He calls the owner and tells him he has a buyer if he wants to sell the house. Has George violated License Law or is he just the seller’s hero? Show Answer

  44. Asking forgiveness later instead of permission first does NOT work when it comes to License Law violations. Get permission before placing a sign on someone’s property. §34-27-36(a)(9) Back to Board

  45. What does “prominently displayed” mean regarding advertising? Show Answer

  46. Use common sense! Can you read that small print you just used for your company’s name? 34-27-36(a)(15) Back to Board

  47. Susie is a salesperson for Risky Real Estate. Another salesperson with Risky lists a house at 849 Pleasant Ave. Susie and her husband decide they want to buy that house so what disclosure, if any, has to be made to the owner? Show Answer

  48. You do know that Susie has to disclose to the owner her intention to acquire the property, don’t you? §34-27-36(a)(18) Back to Board

  49. Broker Hall was fined $2500 by the Commission for paying for repairs out of his property management escrow account. Broker Hall was given 30 days to pay the fine but he did not pay it. Attempts to collect it have failed. Now what? Show Answer

  50. Duh! The Commission will file another formal complaint for failing to obey an order of the Commission. Broker Hall probably won’t have a license much longer. §34-27-36(a)(19) Back to Board

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