Licensee Conduct 2 Flashcards
________ is issued by state governments. This allows agents the legal grounds to represent a home seller/ buyer in the transaction of buying or selling real estate property.
A: Real Estate License
B: Brokers License
C: State License
D: None Of The Above
A: Real Estate License
Pleading guilty or “nolo contender” to any felony charge requires a real estate licensee to inform the Utah Division of Real Estate, if that pleading occurred within the last:
A: 2 Years
B: 3 Years
C: 4 Years
D: 5 Years
D: 5 Years
Utah Division of Real Estate
Real Estate Licensing and Practices Act
Misrepresentation
To lie, deceive, mislead, or be dishonest in any way.
making a substantial misrepresentation,
including in a licensure statement;
* making an intentional misrepresentation
* pursuing a continued and flagrant course of
misrepresentation
* making a false representation or promise through an agent, sales agent, advertising, or otherwise; or
* making a false representation or promise of a character likely to influence, persuade, or induce;
The person responsible for the accuracy of all documents signed at Closing is the:
A: Client
B: Real Estate Agent
C: Real Estate Broker
D: Escrow Officer
C: Real Estate Broker
Seller Scott decides he doesn’t want to disclose to potential buyers that his roof is 20 years old and leaked last spring when the snow melted. When he hires his agent, Alexis, he tells her she can have his listing on the condition that she keeps the leaking roof confidential. This is an example of:
A: A Lawsuit Waiting To Happen
B: A Potential Failure Of The Seller To Fail To Disclose A Material Fact
C: A Potential Violation Of Law For The Agent, If She Fails To Disclose The Material Fact
D: All Of The Above
D: All Of The Above
- Acting for more than one party
in a transaction without the informed
consent of the parties
First offense
Class B Misdemeanor, Up to 6 Months
Second offense
Felony punishable by jail up to 2 years;
and/or fines
Limited Agency Contract
You must get a limited Agency Contract that is fully informed and disclosed with written consent of both parties and the details of everything must be included, then make sure everyone has a copy and understands it.
- Representation
(a) acting as an associate broker or sales agent while not affiliated with a principal broker; Your license must be registered with an affiliate
broker to do business.
(b) representing or attempting to represent a principal broker other than the principal broker
with whom the person is affiliated; or
(c) representing as sales agent or having a contractual relationship similar to that of sales
agent with a person other than a principal broker;
- Messing With Money
(a) failing, within a reasonable time, to account for or to remit money that belongs to another and comes into the person’s possession You must account for the Earnest Check.
The first time an agent fails to fully disclose Limited Agency and get the Limited Agency Consent Agreement signed BEFORE their client enters into a Real Estate Purchase Contract, that agent has committed:
A: A Class A Misdemeanor
B: A Class B Misdemeanor
C: A Class C Misdemeanor
D: No Crime
B: A Class B Misdemeanor
The second time an agent fails to fully disclose Limited Agency and get the Limited Agency Consent Agreement signed BEFORE their client enters into a Real Estate Purchase Contract, that agents has committed:
A: A Class A Misdemeanor
B: A Class B Misdemeanor
C: A Class C Misdemeanor
D: A Felony, Punishable By Jail Time
D: A Felony, Punishable By Jail Time
Agent Alice works for Sunshine Realty. She has a listing that she wants to hold an open house for on Saturday. Agent Amanda also works for Sunshine Realty and she offers to sit at the open house, in hopes of meeting buyers. What potential problems do you see?
A: Amanda Might Inadvertently Practice Undisclosed Dual Agency
B: Amanda Might Be Wasting Her Time
C: Amanda Might Get More Buyers Than She Has Time To Take Care Of
D: Amanda Might Not Have Brought Enough Business Cards
A: Amanda Might Inadvertently Practice Undisclosed Dual Agency
Commingling Money
b) commingling money with the person’s
own money; Not accurately accounting for the clients money or depositing into the wrong account
Diverting Money
(c) diverting money from the purpose for
which the money is received;
- Paying an Unlicensed Person
Exceptions: Another principal broker in another
area
- A Principal Broker
paying an agent not affiliated with that broker at the time the commission was earned.
- Incompetence
Being incompetent to act as a principal broker, associate broker, or sales agent in such a manner as to safeguard the interest of the public.
- Failing to voluntarily furnish
a copy of a document to the parties before and after the execution of a document.
- Failure to Keep Records
Must keep records AND make them available to the Division for inspection: The Division has a ten year period to go back to any transaction Names, the ID of real estate, the sale or rental price, money received in trust, agreements from the parties Any other information required by rule
- Failing to disclose in writing
in the purchase, sale, or rental of real estate, whether the purchase, sale or rental is made for that person or for an undisclosed principle.
VA Agent Dave does an outstanding job representing his seller, Joe. To thank Dave for his extraordinary service, Joe sends Dave a $1000 “Thank You” gift via Venmo. What should Dave do in this situation?
A: Keep The Money And Say Nothing To His Broker
B: Return The Money
C: Gift The Money To A Worthy Charity
D: Thank Joe, Return The Money, And Let Joe Know That He Can Only Receive Compensation From His Broker
D: Thank Joe, Return The Money, And Let Joe Know That He Can Only Receive Compensation From His Broker
The Utah Division of Real Estate issues their newsletter:
A: Monthly
B: Quarterly
C: Semi-Annually
D: Annually
B: Quarterly
The Utah Division of Real Estate Newsletter contains:
A: An Informative Article By The Director Of The Division Of Real Estate
B: Timely Articles Designed To Assist Licensees Better Serve Their Clients
C: Notification Of Licensing Law Violators And The Amount They Were Fined
D: All Of The Above
D: All Of The Above
Division Newsletter
Quarterly Publication
Online at
www.realestate.utah.gov
Directors Message
Great Articles
Photos
Licensing and disciplinary actions section
- Name, date and conviction, fines
Utah Administrative Code
It’s a violation of the rules to violate the statute, and it’s a violation of the statute to violate the rules.
R162-2f-401b
Prohibited Conduct As Applicable
to All Licensed Individuals.
(1) engage in any of the practices described
whether acting as agent or on the licensee’s own account, in a manner that:
(a) fails to conform with accepted standards of the real estate sales, leasing, or management industries;
(b) could jeopardize the public health, safety, or welfare; or (c) violates any provision or the rules of thischapter;
(2) require parties to acknowledge receipt
of a final copy of any document prepared by the licensee prior to all parties signing a contract evidencing agreement to the terms thereof
(3) make a misrepresentation to the division:
(a) in an application for license renewal;
or (b) in an investigation. Remember when they say EVER they mean have you EVER.
(4) (a) propose, prepare, or cause to be prepared
(a) a document, agreement, settlement statement, or other device that the licensee knows or should know does not reflect the true terms of the transaction; or (b) knowingly participate in a transaction in which such a false device is used;
(5) participate in a transaction
in which a buyer enters into an agreement that: (a) is not disclosed to the lender; and (b) if disclosed, might have a material effect on the
terms or the granting of the loan;
(6) use or propose
of a double contract;
(8) take a net listing
a guarantee a specific amount to a seller and the agent takes the difference
(8) take a net listing
a guarantee a specific amount to a seller and the agent takes the difference
(9) sell listed properties
other than through the listing broker
(10) subject a principal to paying
a double commission without the principal’s
informed consent
(11) enter or attempt to enter
into a concurrent agency representation when the licensee knows or should know that the principal has an existing agency representation
agreement with another licensee
(12) pay a finder’s fee
or give any valuable consideration to an unlicensed person or entity for referring a
prospect
Except that:
(a) a licensee may give a gift valued at $150 or less to an individual in appreciation for an unsolicited referral of a prospect that results in a real estate transaction; and (b) as to a property management transaction, a licensee may compensate an unlicensed employee or current tenant up to $200 per lease for assistance in retaining an existing tenant or securing a new tenant;
(13) accept a
referral fee from:
(a) a lender; or (b) a mortgage broker;
(14) act as a real estate agent or broker
in the same transaction in which the licensee also acts as a:
(a) mortgage loan originator, associate lending manager, or principal lending manager;
(b) appraiser or appraiser trainee;
(c) escrow agent; or
(d provider of title services
(15) act or attempt to act as a limited agent
agent in any transaction in which: (a) the licensee is a principal in the transaction; or 2 (b) any entity in which the licensee is an officer, director, partner, member, employee, or
stockholder is a principal in the transaction
(16) make a counteroffer
by striking out, whiting out, substituting new language, or otherwise altering: (a) the boilerplate provisions of the Real Estate Purchase Contract; or (b) language that has been inserted to complete the blanks of the
Real Estate Purchase Contract;
(17) advertise or offer
or lease property without the written consent of: (a) the owner of the property; and (b) if the
property is currently
(18) advertise or offer
to sell or lease property at a lower price than that listed without the written consent of the
seller or lessor;
(19 represent on any form or contract
that the individual is holding client funds without actually receiving funds and securing them
(20) when acting as a limited agent
disclose any information given to the agent by either principal that would likely weaken that party’s bargaining position if it were known, unless the licensee has permission from the principal to disclose the information
(21) disclose, or make any use
of a short sale demand letter outside of the purchase transaction for which it is issued
(22) in a short sale
have the seller sign a document allowing the licensee to lien the property
(23) charge any fee that represents
the difference between: (a) the total concessions authorized by a seller and the actual amount of the buyer’s closing costs; or (b) in a short sale, the sale price approved by the lender and the total amount required to clear encumbrances on title and close the transaction.
All Violations
Are Published In the Quarterly
Newsletter
Which of the following statements is TRUE?
A: Violating A State Statute Also Violates State Rules
B: Violating A State Rule Also Violates A State Statute
C: Licensees Must Value And Uphold State Statutes As Well As State Rules
D: All Of The Above
D: All Of The Above
The website to go to for locating the DRE newsletter that contains licensing infractions and disciplinary actions is:
A: The Local Board Of Realtors
B: The State Association Of Realtors
C: The National Association Of Realtors
D: The Utah Division Of Real Estate
D: The Utah Division Of Real Estate
The Utah Division of Real Estate regulates which type(s) of licensees?
A: Real Estate
B: Mortgage
C: Appraisal
D: All Of The Above
D: All Of The Above
Which online platform can provide you the instructions on how to renew your real estate license? This website is the:
A: The Local Board Of Realtors
B: The State Association Of Realtors
C: The National Association Of Realtors
D: The Utah Division Of Real Estate
D: The Utah Division Of Real Estate
Real estate license renewal is required:
A: Every Year
B: Every Two Years
C: Every Three Years
D: Every Four Years
B: Every Two Years
One of the most common violations of State Law for new licensees is:
A: Failure To Disclose Past Criminal History
B: Failure To Disclose Previously Holding A License In Another State
C: Failure To Disclose Their Broker Affiliation
D: Failure To Disclose Their Legal Name
A: Failure To Disclose Past Criminal History
It is not the role of the Utah Division of Real Estate to handle:
A: The Public’s Complaints Against Licensees
B: Agents’ Complaints About Each Other
C: Broker Complaints About Other Brokers
D: Agents’ Complaints Regarding Commission Disputes
D: Agents’ Complaints Regarding Commission Disputes
All violations are published in the _______ newsletter issued by the Real Estate division.
A: Quarterly
B: Monthly
C: Annual Report
D: None Of The Above
A: Quarterly
The practice of limited agency:
A: The Practice Of Limited Agency:
B: Is Only Allowed With Full Disclosure And Informed Consent
C: Is Not Allowed If The Agent Is A Principal In The Same Transaction
D: Both B And C
D: Both B And C
The most common reason agents get sued is:
A: Failure To Handle Earnest Money Properly
B: Failure To Execute Contracts Properly
C: Failure To Disclose
D: Blind Ads
C: Failure To Disclose
