Chapter 16 - Licensing Law Flashcards
After passing the state exam what is required for a broker to practice real estate?
A sponsor card
Who is responsible for each branch office?
A sponsoring broker.
Can a licensee serve as a dual agent when she has an ownership interest?
No, they may not serve as a dual agent in any transaction in which she has an ownership interst, whether direct or indirect.
Does compensation determine agency?
No, compensation does not determine agency.
Ledger
Dsed to show the receipt and disbursement of funds affecting a single particular transaction, such as between buyer and seller, or landlord and tenant, or respective parties to any other relationship.
How many members sit on the real estate administration and disciplinary board?
Nine members. Six must be brokers for at least 10 years, three unlicensed/unconnected representatives.
How long can a leasing agent work before having a license?
120 consecutive days
How much time do agents have to deposit earnest money or security deposits?
Within one business day of contract or lease acceptance.
How long is a sponsor card valid for?
45 days while the license and pocket card are being processed.
For how long must a broker be practicing before applying for reciprocity?
Two years
Is it possible for a broker licensed in IL to practice in other states?
Yes, if we have reciprocity with the respective state.
What are three requirements of a broker office?
- Must maintain a storefront in Illinois.
- Sponsoring broker license must be displayed.
- Office may not be located in a retail or financial establishent.
What types of activities is The Department responsible for?
Exams + issuing licenses. Hearings and suspensions resulting from violations of The Act.
What are the non-required disclosure items?
- Any medical condition, especially HIV and AIDS
- If a property was “the site of an act or occurance that had no effect on the physical condition of the property or its environment or the structures located thereon.”
- Factual situations for properties other than the “subject of the transaction”.
- Physical conditions on nearby properties that “do not have a substantial adverse effect on the value of the real estate subject to the transaction.”
What are the continuing education requirements for brokers and managing brokers?
Brokers: 12 hours per renewal period (6 hours per year).
Managing brokers: 18 hours per period (9 per year).
What are the names the the real estate governing bodies?
IDFPR: Illinois Department of Financial and Professional Regulations
DPR: Department of Professional Regulation
How much does a broker and managing broker pay to renew their licenses, and when do they renew?
Broker: $150 every EVEN year
Managing: $200 every ODD year
Journal
Used to show funds received and disbursed for each escrow account.
How long after receipt of a bank statement must accounts be reconciled? (broker office)
Within 10 days
Who may sponsoring brokers compensate?
Agents they sponsor and other sponsoring brokers
Cooperative commission arrangement
When seller agency pays commission to the firm with the buyer.
When is disclosure required re: referring a client to a service?
If agent has a greater than 1% interest in service provider.
What is the maximum civil penalty that may be imposed upon an agent who violates their duties?
$25,000 for an one cause or combination of causes.
What is the Real Estate Recovery Fund?
Designed to provide a means for compensation for monetary losses suffered by persons as a resilt of actions by a licensee.
How much will the ‘Real Estate Recovery Fund’ pay out?
Up to $25,000 per act
Up to $100,000 in total
What specific time periods govern the ‘Real Estate Recovery Fund’?
- IDFPR must be notified within 7 days of suit filing againt licensee
- Legal action must commence within 2 years after acts or ommissions are identified
