RE Regulation Flashcards
Real Estate License Law
It authorizes the
creation of a state agency to issue licenses and implement the other
provisions of the law
Real Estate Commissioner/Director
Heads RE licensing agency
Appointed by the governor
Affiliated Licensees
The ppl who work for the broker (brokers, associate brokers, and salespersons)
Associate Broker
A licensed broker working for another brokerage
RE Recovery Funds
A fund maintained specifically for reimbursing members of the public who have been injured by a licensee’s actions or omissions in a real estate transaction, and who have no other recourse against the licensee. Its funded with a portion of the license application and renewal fees
Trust Funds (escrow accounts)
money temporarily entrusted to a broker by clients or customers
The most common reason for disciplinary action against real estate licensees is the mishandling of trust funds
Commingling
mixing trust funds together with the broker’s own money
Conversion
the broker has converted the trust funds to his own
use
What to do with trust funds
- deliver them directly to a principal
- turn them over to an attorney or an escrow agent to hold in trust (in escrow)
- deposit them into a trust account maintained by the broker
False Advertising
a violation of the license law
Blind Ads
a violation of the license
law
one that fails to include the name of the broker that
the licensee who placed the ad works for, and/or fails to indicate that the ad was placed by a licensee
Internet Advertising
a violation of the license law if non-licensed individuals reply to inquiries
Inducements
a violation of the license law if not disclosed
the offer of a gift, prize, or rebate to encourage the recipient to attend a sales presentation
Do not call registry
a violation of the license law to cold call someone on this registry
