Chapter 15 - Getting & Keeping Your Real Estate License

Question 1

Initial license issued to real estate salesperson who has only completed the Real Estate Principles course.

Answer 1

18-month conditional license

Question 2

The illegal practice of inducing owners to sell their homes (often at a deflated price) by suggesting the ethnic or racial composition of the neighborhood is changing, with the implication that property values will decline as a result. Also called Panic Selling or Panic Peddling.

Answer 2

Blockbusting

Question 3

The illegal use of another’s funds or other property for one’s own personal or business purposes. – The appropriation of property or funds belonging to another; as in a broker using a client’s money.

Answer 3

Conversion

Question 4

A right or privilege awarded by law to operate a business using another company’s name and products. In real estate, there are franchised brokerages such as Century 21® and ERA®.

Answer 4

franchise

Question 5

Another term for the Real Estate Law.

Answer 5

license law

Question 6

A false or misleading statement

Making a false statement or concealing a material fact.

Answer 6

Misrepresentation

Question 7

Person bound by a legal obligation.

Ex., A person, delinquent in paying child support, whose name is listed by the Child Support Services.

Answer 7

Obligor

Question 8

A damages award that is added to compensatory damages to punish the defendant for malicious or outrageous conduct and discourage others from engaging in similar acts.

Answer 8

Punitive Damages

Question 9

Someone holding a broker license issued by the Bureau of Real Estate and permitted by law to negotiate real estate transactions between principals to employ persons holding salesperson or broker licenses.

Answer 9

real estate broker

Question 10

A person appointed by the governor to determine administrative policy and enforce the provisions of the Real Estate Law and the Subdivided Lands Law.

Answer 10

Real Estate Commissioner

Question 11

A separate account funded through collection of a fixed amount from each license fee. It was established to pay judgments against real estate licenses.

Answer 11

Real Estate Recovery Fund

Question 12

A person with a real estate license who must be employed by a real estate broker in order to perform any of the activities that requires a license.

Answer 12

real estate salesperson

Question 13

Any real estate licensee who is affiliated state/local boards.

Only members may use the term REALTOR® as it’s a registered trademark of this organization.

Answer 13

National Association of REALTORS® (NAR)

Question 14

A type of probationary license issued when a license has been suspended, revoked or denied after a hearing.

Answer 14

restricted license

Question 15

Undisclosed profit made by a broker at their principal’s expense.

Answer 15

secret profit

Question 16

Process to make a Licensee temporarily ineffective.

The Real Estate Commisioner may do this to a real esate licensee for a violation of the licensing law.

Answer 16

Suspend

Question 17

A period of time after the expiration of a license that renewal is allowed as long as all real estate activity has ceased during that time and a late fee is paid at the time of renewal.

Answer 17

two-year grace period