Chapter 6 Flashcards
What penalty do you receive for a first degree misdemeanor?
up to 1 year in prison and/or a $1000 fine
What is an example of a first degree misdemeanor?
Charging for a rental listing that isn’t available
What is a second degree misdemeanor?
Disseminating false or misleading information
What is a third degree felony?
Acting as a broker or sales associate without an active license
What is the penalty for a third degree misdemeanor?
up to 5 years in prison and/or a $5000 fine
What is concealment?
When a broker fails to disclose material information
What is culpable negligence?
when a licensee operates in a reckless, careless, or negligent manner
Example: Broker does not answer the call from his agent, costing them a sale
Example: Sales agent forgets to deposit an escrow check
What is misrepresentation?
Misstatement or omission of a fact.
Example: entering incorrect # of bedrooms in an MLS listing
If a buyer asks for advice regarding the title of the property, what is required of the broker/sales associate?
They are required by law to advice the buyer to obtain title insurance or insist upon obtaining an abstract and an attorney’s title opinion
What must a broker do if a property has a lien or mortgage on it?
They must inform the buyer
Who can use a lottery for a property sale?
Only developers. If a broker uses a lottery, it is considered fraud
In a complaint, what is the person making the complaint called?
Complainant
In a complaint, what is the person being made a complain about called?
Respondent
What does a complaint need to be in order to be valid?
it needs to be legally sufficient
At what stage in the complaint process does the administrative judge issue subpoenas for witnesses and compel the attendance of a witness?
During a formal hearing
