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Real Estate > Chapter 7 > Flashcards

Chapter 7 Flashcards

1
Q

Recovery Fund

A

Protects people screwed over by broker or salesperson.
Doesn’t protect licensee
May recover not more than $25,000 per transaction

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2
Q

467-14

A

Must have written consent when collecting commission or other compensation

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3
Q

Principal broker is absent for more than 30 days

A

They must notify the commission in writing

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4
Q

If seller rejects an offer by a buyer

A

The agent must have seller note on the offer such rejection or he must note it on the offer himself and return to the buyer

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5
Q

Responsibility of broker concerning moneys entrusted to him in a transaction

A

Deposit in a neutral depository or trust by the first business day after receipt
Provide full account to each party of all receipts

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6
Q

Renewal application deadline

A

Must be postmarked by 1st working day of the year

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7
Q

Advertisement

A

Broker may use a trade name or legal name of brokerage firm

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8
Q

Re-establishing terminated license

A

Must pay Real Estate Commission the amount paid out of the Recovery Fund

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9
Q

Broker may pay commission to:

A

Broker from another state but said broker can’t negotiate in this state (HI)

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10
Q

Working for two brokers

A

No

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11
Q

Broker may deposit into client trust account

A

Small amount of his money to keep clients accounting system open
Not commission paid to him

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12
Q

Licensee can

A

Be a party to the naming of a nominal consideration

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13
Q

Representing more than one party

A

Must have written consent from both

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14
Q

Salesperson cannot accept compensation

A

From anyone other than their employer/broker

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15
Q

Liability of the recovery fund

A

Shall not exceed $50,000 for any one licensee

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16
Q

Fine for violating licensing laws

A

$5,000 for each violation

17
Q

Failed to pay renewal when due

A

License is forfeited

18
Q

To reinstate a license that has been terminated because of payment out of the Reovery Fund

A

You must make full restitution to Recovery Fund all payments made on his behalf
Pay interest on the sum expended from recovery fund

19
Q

Entitled to hearing

A

When there is a potential fine, suspension or revocation

20
Q

Advertisement

A

Broker doesn’t have to show MLS #
Has to say if it’s leasehold
Doesn’t have to show phone #

21
Q

May begin practicing real estate when…

A

He receives notice from the real estate commission that he is authorized to do so.

22
Q

Revoked license

A

When failure to account for funds received that belong to others

23
Q

Bonus/tips

A

All payments must be paid to the employing broker

24
Q

Sole proprietor has license suspended for two years…

A

Affiliates licenses will be placed on involuntary inactive status

25
Q

Payments from third party vendors (like referral fees)

A

All payments received by licensees from third party vendors must be disclosed to clients

26
Q

Members of the commission

A

Selected by the governor

27
Q

Real estate commission has the authority to…

A

Made and enforce the rules

28
Q

Rico (regulated industries complaints office)

A

They conduct investigations of licensees in Hawaii

29
Q

Commingling

A

Mixing a clients money with personal funds.

30
Q

Finder’s Fee

A

A few paid to a person for the services of putting together the two parties in a real estate transaction.

31
Q

Nominal Consideration

A

One bearing no relation to the real value of the contract. An example is a property deeded for $10.

32
Q

Option

A

A right given for consideration to purchase or lease a property upon specified terms within a specified time. Purchaser is the optionee.

33
Q

Principal Broker

A

The employer of an agent or broker

34
Q

Revocation

A

The act of recalling sone agreement, power, or interest previously given.

35
Q

Site Office

A

A temporary place of business other than the principal place of business or branch office.

Real Estate (27 decks)

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