Licensing Requirements

Question 1

Errors and Omissions insurance is required when an active license is issued.

Answer 1

T.)

Question 2

CE requirements can be fulfilled by taking and passing the state portion of the licensing exam.

Answer 2

T.)

Question 3

An inactive broker may manage property as an employee of a subdivision developer.

Answer 3

T.) Since this is exempt from licensing, an inactive broker may do it.

Question 4

An inactive broker may sell new homes as an employee of a subdivision developer.

Answer 4

T.) Since this is exempt from licensing, an inactive broker may do it.

Question 5

An inactive broker may solicit buyers and sellers to sign listing agreements.

Answer 5

F.) An inactive broker may not do anything that requires a license.

Question 6

A broker with an inactive license does not need Errors and Omissions insurance

Answer 6

T.) Only active brokers or those applying for a license need E&O insurance.

Question 7

To sell options in real estate, one needs a broker’s license.

Answer 7

T.)

Question 8

An inactive broker does not need to maintain an office open to the public.

Answer 8

T.)

Question 9

All active brokers must have Error and Omissions insurance.

Answer 9

T.)

Question 10

Errors and omissions insurance is required only for brokerage firms.

Answer 10

F.) E&O insurance is required for all active licensed broker and brokerage firms.

Question 11

When a brokerage firm changes their business location, the employing broker must notify the commission.

Answer 11

T.)

Question 12

An associate broker moving to a different brokerage firm will inform the commission at the next license renewal.

Answer 12

F.) The associate and the employing broker must notify the commission immediately.

Question 13

In order to renew an active brokers license, each licensee must complete 24 hours of continuing education each year.

Answer 13

F.) 24 hours is required over each 3 year renewal period

Question 14

A broker may bypass all 3 years of required education by passing the state portion of broker licensing exam.

Answer 14

T.)

Question 15

Taking any 24 hour approved continuing education course will meet the 3 year requirement.

Answer 15

F.) The 24hr brokerage administration course may be used once to fulfill the entire 3 year requirement

Question 16

Active brokers must take a commission update course every 3rd year

Answer 16

F.) The update course is required every year for all active licensees.

Question 17

Business opportunity brokers are exempt from real estate licensing.

Answer 17

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,

Question 18

The sale of real estate options requires an active license.

Answer 18

T.)

Question 19

The on-site manager of an apartment complex must have a real estate license

Answer 19

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.

Question 20

An inactive licensee may provide advice to a friend as they don’t receive a fee

Answer 20

F.) An inactive licensee may not perform any services for others that require a license.

Question 21

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.

Answer 21

F.) The employing broker must enter into the management contract and set up any required trust accounts.

Question 22

An estate administrator selling the real property of the deceased party does not need a real estate license.

Answer 22

T.) As long as the administrator does not receive commission for the sale.