Ch. 2 Flashcards
Advertising
Includes all oral, written, and visual promotions done by a licensee or by others on behalf of the licensee.
Beneficial Owner
Concerning earnest money deposits for a real estate transaction, the owner of earnest money is the purchaser, while the beneficial owner is the seller.
Branch Office Manager
A manager, with at least three years’ licensed experience, who oversees a secondary business location where real estate business is conducted. Their supervision is in addition to the broker.
Business Entity
Real estate licensees are now permitted to organize as any legal business entity with the consent of their broker. Salespersons and associate brokers were previously limited to only two choices: either a limited liability company (LLCs) or a professional service company (PSCs).
Designated Name
The exact name that appears on the certificate of a licensee. In advertising, the broker’s designated name is conspicuously shown. Licensees appearing in the ad must use their designated name.
Independent Contractors
An individual retained to perform certain services under a broker’s or a manager’s supervision but not subject to work day constraints. Unlike an employee, an independent contractor pays for all expenses, including Social Security and income taxes, without receiving any employee benefits. Most licensees are independent contractors, meeting the IRS definition for a qualified real estate agent (also known as statutory nonemployees).
Place of Business
A place of business in MD is required for all licensed brokers. It must be an office where regularly transacted real estate business occurs.
Recordkeeping Requirements
Real estate licensees must keep copies of listings and any other documents obtained in connection with a transaction for at least five years.
Supervision
MREC regulations require that brokers supervise all licensed and unlicensed affiliates with their brokerage firm. In addition to the broker’s supervision, branch managers will supervise the branch offices and team leaders will supervise their team members.
Team Leader
A real estate team is required to have a team leader who is chosen by the team members and reports to the manager and the broker. A team leader can never be the broker and must have a minimum of 3 years’ licensed experience.
Trust Money
An upfront payment entrusted to a real estate broker or a title company to hold for the sake of a real estate transaction; also known as an earnest money deposit.
Unlicensed Person
MREC has strict guidelines for what an unlicensed assistant can do on behalf of a real estate licensee. Also, individuals with a license are considered unlicensed if they are providing services for a broker other than the one with whom they affiliated.
