Licensing Requirements Flashcards
Errors and Omissions insurance is required when an active license is issued.
T.)
CE requirements can be fulfilled by taking and passing the state portion of the licensing exam.
T.)
An inactive broker may manage property as an employee of a subdivision developer.
T.) Since this is exempt from licensing, an inactive broker may do it.
An inactive broker may sell new homes as an employee of a subdivision developer.
T.) Since this is exempt from licensing, an inactive broker may do it.
An inactive broker may solicit buyers and sellers to sign listing agreements.
F.) An inactive broker may not do anything that requires a license.
A broker with an inactive license does not need Errors and Omissions insurance
T.) Only active brokers or those applying for a license need E&O insurance.
To sell options in real estate, one needs a broker’s license.
T.)
An inactive broker does not need to maintain an office open to the public.
T.)
All active brokers must have Error and Omissions insurance.
T.)
Errors and omissions insurance is required only for brokerage firms.
F.) E&O insurance is required for all active licensed broker and brokerage firms.
When a brokerage firm changes their business location, the employing broker must notify the commission.
T.)
An associate broker moving to a different brokerage firm will inform the commission at the next license renewal.
F.) The associate and the employing broker must notify the commission immediately.
In order to renew an active brokers license, each licensee must complete 24 hours of continuing education each year.
F.) 24 hours is required over each 3 year renewal period
A broker may bypass all 3 years of required education by passing the state portion of broker licensing exam.
T.)
Taking any 24 hour approved continuing education course will meet the 3 year requirement.
F.) The 24hr brokerage administration course may be used once to fulfill the entire 3 year requirement
Active brokers must take a commission update course every 3rd year
F.) The update course is required every year for all active licensees.
Business opportunity brokers are exempt from real estate licensing.
F.) A brokers license is required to sell a business opportunity that includes any interest in real estate such as a tenants rights under an existing lease,
The sale of real estate options requires an active license.
T.)
The on-site manager of an apartment complex must have a real estate license
F.) The law provides an exemption if the manager reports to the owner or to a licensed broker, is salaried, and does not negotiate leases, but performs only the duties of an on site manager.
An inactive licensee may provide advice to a friend as they don’t receive a fee
F.) An inactive licensee may not perform any services for others that require a license.
An associate broker in an office that does not normally do property management may manage a few properties for a friend without informing the employing broker.
F.) The employing broker must enter into the management contract and set up any required trust accounts.
An estate administrator selling the real property of the deceased party does not need a real estate license.
T.) As long as the administrator does not receive commission for the sale.
