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Real Estate > License Law > Flashcards

License Law Flashcards

1
Q

What is the purpose of license law?

A

To protect the public from incompetent agents

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2
Q

Who has authority over all Real Estate Licenses?

A

The Real estate commission

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3
Q

In any case a broker does not have a trust account and receives an earnest money. How many days does the broker have to open an account?

A

One business day

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4
Q

By law who does a person wanting to buy or sell a house enter into a contract with?

A

The broker

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5
Q

The courts can punish an unlicensed person performing Real Estate services. What are the fines or consequences?

A

$1,000 or 1 year in jail

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6
Q

Who is in charge of issuing licenses, setting fees, of passing rules and regulations and taking any disciplinary actions?

A

The Real Estate Commission

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7
Q

How many members does the governor appoint to form the R. E. commission?

A

6 members

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8
Q

All members of the commission need to be licensed and residents of GA for at least 5 year prior to their selection. What is the purpose of the 6th member?

A

They bring expertise in consumer affairs with zero R.E connections

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9
Q

The full-time executive who takes care of the day to day business and hires staff on behalf of the commission?

A

The commissioner

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10
Q

Is the commissioner allowed to vote in with the commission?

A

No

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11
Q

How many years is the commission required to keep a licensee’s record?

A

5 Years

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12
Q

What age requirement is needed for a person intending to get a Broker or an associate broker’s license and what are the amount of approved course hours?

A

21 years old and they need 60 hours

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13
Q

Who passed license law?

A

The state legislature

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14
Q

What is a qualifying broker in a corporation?

A

An officer

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15
Q

What is an associate broker?

A

One who has a broker’s licence but works as an agent for the broker in a brokerage firm.

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16
Q

What age requirement is needed for a person intending to get a R.E. salesperson license and what are the amount of approved course hours?

A

18 years old and they need 75 hours

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17
Q

A person applying for a broker’s license must have been licensed as a salesperson for how many years?

A

At least 3 of the last 5 years

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18
Q

How many hours of continuing education must all licensees complete within their first year?

A

25 hours of continuing education

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19
Q

If you failed to complete your first year required continuing education hours; what is the time frame to complete the course in order to have your license reinstated, if you’ve paid for the course but for whatever reason failed to complete it?

A

6 months

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20
Q

What age requirement is needed for a person intending to get a community association license and what are the amount of approved course hours?

A

18 years old and they need 25 hours

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21
Q

Licensees need to renew their license every 4 years. How many hours of continuing education per year are required every time your license is renewed?

A

9 hours per year, a total of 36

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22
Q

If you’ve completed the required hours of continuing education per year but have not paid your 4 year renewal fee. How long do you have to complete the payment and have your license reinstated?

A

2 years but no more than 5 or you’ll have to start over.

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23
Q

How many days do you have, to advise the commission of any changes? Ex: address, new brokerage or trust accounts.

A

30 days

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24
Q

Is there a time limit for your license to stay inactive?

A

No limit as long as the renewal fees are paid every 4 years

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25
Q

What power does the commission have when an unlicensed person is practicing as a broker?

A

They have the power to cease and desist orders, but cannot send anyone to jail.

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26
Q

In case anyone is denied a license, what entity entitles the applicant to a hearing and an appeal for a judicial review?

A

The GA administrative Procedures Act

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27
Q

If a licensee violates the law, the broker is still considered responsible. How can any broker be excused from that responsibility?

A

By proving there was supervision to the agent, that he had nothing to do with it and that he did not ratify the issue.

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28
Q

What is a qualifying broker in partnership?

A

A general partner

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29
Q

When can salespeople or CAMs work for two brokers?

A

During a transition from one broker to another and both brokers need to agree in writing

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30
Q

Where are earnest money deposits, security deposits, rents, etc deposited?

A

In a trust account

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31
Q

In what type of bank can a broker open a trust account?

A

In a federally insured bank

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32
Q

Licensees, who sell/rent their property should deposit all their earnest or security money in theirs or their broker’s trust account?

A

Their broker’s trust account

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33
Q

At what point are brokers entitled to any money from the transaction?

A

Until the transaction is consummated or terminated

34
Q

What is the initial license activation fee?

A

$20

35
Q

What is the quantity paid per transaction if a salesperson breaks the law and inconveniences the principal/client?

A

No more than $$25,000 per transaction and up to $75,000 per transaction.

36
Q

What are the consequences for a salesperson, if a client/principal is paid a settlement out of the commission recovery fund?

A

License is revoked until all money is paid with interests

37
Q

If a broker has an office in Gwinnett county but sells a property in Dekalb county. What type of tax can the local government (or Dekalb county) charge the broker?

A

Gross receipts sales tax

38
Q

Would violating any Fair Housing Laws be considered illegal or an unfair practice?

A

Unfair practice

39
Q

Intentional misrepresentation on behalf of a salesperson in advertising or the terms of a property. Illegal or an unfair practice?

A

Unfair practice

40
Q

A salesperson or a broker commingles a client’s funds with their own. Illegal or an unfair practice?

A

Unfair practice

41
Q

Failure to maintain trust funds in an escrow trust account is an unfair practice unless all parties with an interest in the funds agree otherwise in writing. Is this true or false?

A

True

42
Q

Failure to disclose anything in writing to the principal or client as far as any monetary purchases or services that require reimbursement is an unfair practice. True or false?

A

True

43
Q

It is good practice to represent another broker without the permission of the broker who holds your license. True or false?

A

False. Permission from your broker is always needed to represent any other brokers

44
Q

It is illegal to receive compensation without your broker’s permission

A

It is not illegal but it is an unfair practice

45
Q

You are acting as the agent and the principal but you have failed to disclose these details in writing. Is this transaction illegal?

A

It’s an unfair practice. Always advise in writing that you are the agent and the principal.

46
Q

It is good practice to guarantee that a property will generate a profit in a future sale.

A

No, it is an unfair practice. I can never guarantee any future profits

47
Q

Is it illegal to place a sign on an owner’s property without written permission or failing to remove it within 10 days of expiration?

A

It is an unfair practice to do both but not illegal

48
Q

Are you allowed to offer a property to a prospect without permission from the owner, the owner’s agent or on the terms other than those authorized?

A

No, that is an unfair practice

49
Q

Is it illegal for you to convince a seller to break a contract because a better one came in?

A

Not illegal but it is also not a good practice

50
Q

Can you negotiate with an owner, lessor, or buyer while you are aware that another exclusive agency relationship exists?

A

No. That is an unfair practice unless you are only helping the client but not negotiating on their behalf.

51
Q

As a salesperson, you can give your opinion of value as an “appraisal” true or false?

A

False. Only a licensed appraiser can do that. It is also an unfair practice.

52
Q

It is good practice to act as a licensed agent in another state without meeting the state’s requirements.

A

No, it is an unfair practice.

53
Q

Is it illegal to pay a commission to an unlicensed person?

A

Not illegal but it is an unfair practice.

54
Q

When can you pay a commission to an unlicensed person?

A

You can make payment to heirs of a deceased agent or a referral fee to a foreigner

55
Q

It is an unfair practice to write a listing with no expiration date and failing to leave a copy of the listing agreement with the client.

A

Yes, that is true

56
Q

Will you be judged legally if you fail to deliver completed copies of a contract or an offer within a reasonable time to the buyer or seller?

A

No, not legally but it is an unfair practice

57
Q

Who executes the closing of a listing sale?

A

A closing attorney

58
Q

Dual agency is an unfair practice. Unless?

A

Unless there is written consent from both the buyer and the seller

59
Q

Is it considered illegal or an unfair practice if you, an associate broker o a CAM, fail to turn in trust funds to the broker as soon as possible?

A

It is considered an unfair practice

60
Q

Are you allowed to file a lien or a document that could cloud a title without justification?

A

Of course not, that is an unfair practice

61
Q

You are excused from being incompetent or dishonest?

A

No one is excused. Being incompetent or dishonest is an unfair practice

62
Q

It is good practice for brokers to bid on Community Associations’ business when requested to do so in writing by its Board of Directors, even if the association is under contract.

A

Correct, not illegal nor an unfair practice

63
Q

How long should you keep records of sale contracts, closing statements, and any other documents that resulted in the deposit of trust funds? And if you don’t, is that considered illegal?

A

For 3 years and it is an unfair practice if you don’t

64
Q

The law can take you to jail if you put false information into a contract or a document.

A

False. That is an unfair practice, not illegal

65
Q

As far as trust accounts go. Can you place trust funds into an interest-bearing trust account?

A

Yes, but I need a written agreement by all parties stating who will receive the interests earned

66
Q

What happens to a CAM licensee if they perform R.E. brokerage or salespeople services?

A

They are not taken to jail but it is an unfair practice

67
Q

Are CAM licensees allowed to list, sell or lease units in the complex they work in?

A

Yes, as long as they have written permission from the association

68
Q

It is good practice for a CAM licensee to turn in all records, documents, and funds to the owners or Owner’s Association within 30 days of terminating their employment contract.

A

Yes, if not done so, it is considered an unfair practice

69
Q

You will be taken to jail if you choose to change the amount of commission a cooperating agent is to receive before receiving written permission.

A

No jail time as it is considered an unfair practice

70
Q

You can refer a prospect and not tell them you are getting a referral fee anytime you want.

A

False. That is an unfair practice unless you have their written consent

71
Q

Contracts created by attorneys are required to have, what specifics?

A

Property description, method of payment, any special stipulations (conditions) or addenda and specific dates

72
Q

Does a ”Letter of Finding” appear on the licensee’s permanent record?

A

No

73
Q

The commission is to take disciplinary action against the salesperson who has unfairly practiced in GA or any other state. What is the action to be taken?

A

The agent will be sanctioned (penalized)

74
Q

Unfair practices lead the commission to sanction the agent who practiced. In addition, what else can the commission punish the agent with?

A

With courses of study, filing periodic trust account reports and paying fines but no more than a 1,000 per infraction or 5,000 for multiple infractions

75
Q

If the agent who practiced unfairly caused no harm to the public or third parties, what is another action the commission may take?

A

They might send a confidential warning letter called a “Letter of Finding”

76
Q

Before a license is suspended, censured, or revoked; the licensee is entitled to a hearing under a law that is entirely separate from license law, named?

A

The GA Procedures Act

77
Q

If a licensee is not okay with the process the commission takes when they are punishing (sanctioned) him/her. Who can the agent appeal the case to?

A

The courts

78
Q

If an investigation occurs against a licensee, the commission will take certain steps that will remain confidential until the hearing. Explain the possible steps?

A

The investigators can subpoena documents and question witnesses

79
Q

When a license is suspended or revoked, the name of the holder can be published on the commission’s site, true or false?

A

True

80
Q

Whenever the commission judges there has been a violation, to stop the activity the Attorney General will take what action?

A

The attorney general will issue an injunction

81
Q

Who is exempt from license law?

A

Anyone acting on behalf of their own property or investment

82
Q

A person acting as an R.E. agent without a license would be guilty of?

A

A misdemeanor

Real Estate (2 decks)

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