Orientation Flashcards
Land and anything attached to land by a foundation
Real Estate
- multi-step process that results in a property being transferred from one party to another
- includes offers, counter-offers, inspections, etc
Real Estate Transaction
Final step of real estate transaction
Real Estate Closing
the process of bringing parties together
Brokerage
a real estate company or “real estate agency”
Real Estate Brokerage
oversees the entire operation at the main office and compensates everyone
Supervising Broker
- similar role to supervising broker
- responsible for operations at the branch office and the activities of licensees at that office
Branch Broker
- has broker’s license but is associated with/supervised by a supervising broker
- often acts as a salesperson
Associate Broker
generates business and provides services on behalf of the broker
Salesperson
perform administrative duties at the office
Staff
2 or more licensees in the same company that form a team with a team leader and team members
Team
computer-based system that allows brokers to share info about their listings and efficiently find properties for their buyers
Multiple Listing Service (MLS)
Commission rate is established by…
the listing broker
clarifies compensation available and promotes cooperation between real estate companies
MLS
Compensation must originate from…
the Broker
2 ways Licensee A can hire Licensee B and compensate them…
a) Broker pays A & B according to their agreement
b) Broker pays A and gives A written permission to pay B
Team forms LLC… how does the team get paid?
Broker pays LLC directly & gives team leader written permission to pay team members
Rebate
- an unlicensed person receiving money in some form for real estate activity
- ILLEGAL in KS
Referral Fee
- licensee recommends another licensee
- must pass between broker first
BRRETA
Brokerage Relationships in Real Estate Transactions Act of 1997
2 Objectives of BRRETA
1) Define roles of licensees
2) Ensure that consumers understand types of services available to them
2 types of services licensees can offer
1) Transaction Broker
2) Agent or Designated Agent
The BRRETA brochure must be given to a potential client at…
1st practical opportunity
Facilitation, information only, neutral
Transaction Broker
Coaching, representation, info and advice, acts on client’s behalf
Agent
Licensee represents both the buyer and the seller
Dual Agency
Licensee acts as transaction broker for both buyer and seller
Middleman
Principal
Client who signs a written agreement with a licensee
Customer
Buyer or seller who has not signed a written agreement
Creates a one-to-one relationship between a licensee and a client
Designated Agency
All licensees in a real estate company are tied to all clients
Agency
Agency agreements… (3 things)
1) copy must be given to a client in a reasonable amount of time
2) cannot authorize the agent to act as the legal rep of the client
3) cannot be changed without written consent of both parties
Document needed to change role from agent to transaction broker
Transaction Broker Addendum
A bank account in which the supervising broker or branch broker holds other people’s money
Trust Account
Violation in which more than $100 of the broker’s money is being kept in a trust account
Commingling
After contract is signed, deposit must be made into trust account or escrow account within ____ days
5 business days
3rd party option instead of trust account
Escrow agent
Services that are informative in nature, such as answering phone questions, giving information on a property during an open house, or setting an appt to show a property
Ministerial acts
A licensee being compensated by taking the difference between the sale price and the listing price
Net listings- ILLEGAL
Government agency that governs real estate licensees
Kansas Real Estate Commission (KREC)
KREC- # of members
5
KREC- # that must have been licensed brokers for at least 5 years
3 or more
KREC- keeps records but doesn’t vote
Director
Published names of licensees who have acted improperly
Censure
Licensee prevented from doing business; usually 30-90 days
Suspension
Possible consequence of serious infractions
Revocation
Restricted licensee activity
Restriction
Possible civil fine per violation
up to $1000
Possible civil fine per “aggravated” violation (extreme or intentional)
up to $5000
If enough facts are known, the KREC can take this step (eg. applicant didn’t meet the education requirements)
Summary Adjudicative Hearing
Willful violation of license law or BRRETA
misdemeanor
