Chapter 7 Flashcards
Recovery Fund
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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Must have written consent when collecting commission or other compensation
Principal broker is absent for more than 30 days
They must notify the commission in writing
If seller rejects an offer by a buyer
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
Responsibility of broker concerning moneys entrusted to him in a transaction
Deposit in a neutral depository or trust by the first business day after receipt
Provide full account to each party of all receipts
Renewal application deadline
Must be postmarked by 1st working day of the year
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Broker may use a trade name or legal name of brokerage firm
Re-establishing terminated license
Must pay Real Estate Commission the amount paid out of the Recovery Fund
Broker may pay commission to:
Broker from another state but said broker can’t negotiate in this state (HI)
Working for two brokers
No
Broker may deposit into client trust account
Small amount of his money to keep clients accounting system open
Not commission paid to him
Licensee can
Be a party to the naming of a nominal consideration
Representing more than one party
Must have written consent from both
Salesperson cannot accept compensation
From anyone other than their employer/broker
Liability of the recovery fund
Shall not exceed $50,000 for any one licensee
Fine for violating licensing laws
$5,000 for each violation
Failed to pay renewal when due
License is forfeited
To reinstate a license that has been terminated because of payment out of the Reovery Fund
You must make full restitution to Recovery Fund all payments made on his behalf
Pay interest on the sum expended from recovery fund
Entitled to hearing
When there is a potential fine, suspension or revocation
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Broker doesn’t have to show MLS #
Has to say if it’s leasehold
Doesn’t have to show phone #
May begin practicing real estate when…
He receives notice from the real estate commission that he is authorized to do so.
Revoked license
When failure to account for funds received that belong to others
Bonus/tips
All payments must be paid to the employing broker
Sole proprietor has license suspended for two years…
Affiliates licenses will be placed on involuntary inactive status
