Licensing Requirements

Question 1

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

Answer 1

T

Question 2

2.) CE requirements can be fulfilled by taking and passing the State portion of the licensing exam.

Answer 2

T

Question 3

3.) An inactive broker may manage property as an employee of the landlord.

Answer 3

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

Question 4

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

5.) An inactive broker may solicit buyers and sellers to sign listingg agreements.

Answer 5

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

Question 6

6.) A broker with an inactive license does NOT need Errors and Omissions insurance.

Answer 6

T) Only active brokers or those applying for an active license need errors and omissions insurance

Question 7

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

Answer 7

T

Question 8

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

Answer 8

T

Question 9

9.) All active brokers must have Errors and Omissions insurance.

Answer 9

T

Question 10

10.) Errors and omissions insurance is required only for brokerage firms.

Answer 10

F) E&O is mandatory for every active licensed broker and brokerage firm

Question 11

11.) When a brokerage firm changes their business location, the employing broker must notify the Commission.

Answer 11

T

Question 12

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

13.) In order to renew an active broker’s 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

14.) A broker may bypass all 3 years of required continuing education by passing the State portion of broker licensing exam.

Answer 14

T

Question 15

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

Answer 15

F) The 24 hour brokerage Administration course may be used once to fulfill the entire 3 year requirement

Question 16

16.) Active brokers must take a Commission update course every 3 year.

Answer 16

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

Question 17

17.) Business opportunity brokers are exempt from real estate licensing.

Answer 17

F) A broker’s license is required to sell business opportunity that includes any interest in real estate such as a tenant’s rights under an existing lease.

Question 18

18.) The sale of real estate options requires an active license.

Answer 18

T

Question 19

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 onsite manager

Question 20

20.) An inactive licensee may provide advice to a friend as they dont receive a fee.

Answer 20

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

Question 21

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

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 a commission for the sale