Chapter 22 Flashcards
Why is getting a real estate license crucial before starting a career in real estate?
To signify legitimacy and readiness to guide clients
brokers
license
credential granted by the
state licensing authority that
allows an individual to work
independently as a real
estate broker, overseeing real
estate transactions and
managing other agents
license
status
refers to the
current standing or condition
of a real estate license,
indicating whether it is
active, inactive, expired, or
revoked
real estate
commission
fee paid to a real estate
broker for their services in
facilitating a real estate
transaction, typically
calculated as a percentage of
the property’s sale price
recovery
fund
financial
resource established by state
real estate regulatory
agencies to compensate
consumers who have
suffered financial losses due
to the actions of a licensed
real estate professional.
salesperson’s
license
credential issued by the state
licensing authority permitting
an individual to engage in real
estate transactions under the
supervision of a licensed
broker.
In assisting a party to prepare a purchase contract, it is essential for a licensee to
make sure the information in the contract is accurate and that all agreed terms are included
Insurance is a method of
risk outsourcing
In performing a comparative market analysis, a licensee must be careful to
avoid creating a false impression that the licensee is a certified appraiser
The main danger in the area of handling trust funds is the possible commission of
commingling and conversion
Which of the following actions can a real estate licensee perform without risking the commission of an unauthorized practice of law?
Fill in blanks on a lawyer-prepared contract form
Even after giving buyer and seller the required information about property condition disclosures, the licensee may still be subject to legal action for
failing to disclose known adverse facts
How does sharing the qualifying function with a lender protect a licensee?
It reduces the chance of presenting an offer from an unqualified buyer
The best way to minimize the risk of violating fair housing laws is to
obtain education in the content and intent of the laws
All of the following are areas of risk for unintentional misrepresentation EXCEPT
measuring and reporting property dimensions
describing properties and amenities
stating that a client should seek legal counsel
making statements about the presence or absence of hazardous substances
stating that a client should seek legal counsel
