Real Estate Express Unit 1 Flashcards
Describe the necessary qualifications for becoming a commissioner on the Louisiana Real Estate Commission.
A person must be an American citizen, reside in Louisiana, be registered to vote, and have worked as a licensed real estate broker for at least 5 years.
How many members are there, where do they reside, and how long do they serve?
The commissioners come from various districts as follows:
One from each of the seven Supreme Court Districts
Two at large
One from either the 4th or 5th Congressional District
One from either the 1st, 2nd, 3rd, 6th, or 7th Congressional District.
Commissioners serve one term of 6 years.
Compare the duties of the executive director with those of the commissioners.
The executive director runs the Real Estate Commission on a daily basis and directs its staff. The commissioners are volunteers with their own businesses who merely supervise the Commission’s activities, when they meet at least once every 3 months and no more than twice every month, if necessary.
What is the difference between what is covered by Errors and Omissions Insurance and what is covered by the Recovery Fund?
The Errors and Omissions Insurance covers damages from unwitting mistakes or omitted required actions, but nothing illegal. The Recovery Fund covers damages resulting from fraudulent or illegal activities of licensees.
How much is in the Recovery Fund? Where do the monies come from and where do excess funds go?
The Fund contains $400,000, no more, no less. Any surplus goes to the Education Fund. Applicants for real estate licenses or those renewing their licenses must each pay $10 into the Fund, which is then invested and dividends rolled back into it.
What is the first requirement for the eligibility of a claim against the Recovery Fund?
There must be a final judgment from a competent court declaring the licensee guilty of committing an act based on a violation of the license law.
What are the Recovery Fund’s payout limits for a violation by a single agent in a single transaction, and for violations by a single agent in multiple transactions?
The maximum amount paid out of the Fund if there is one transaction and one agent involved is $20,000. The maximum amount paid out of the Fund if there are multiple transactions and one agent involved is $50,000.
List the steps a claimant against the Recovery Fund must go through to be reimbursed by the Recovery Fund.
Someone who has suffered financial losses because of a broker’s fraud must have the supporting judgment of a court, and must make every effort to get reimbursed from the broker or any parties who owe that broker money. Only then can the person apply to the Commission for damages, and then only up to $20,000. And this application must be made within 180 days of the court’s judgment.
How is the claim process modified if the Commission has already investigated and disciplined the offending licensee?
If the Commission has already investigated the broker accused of fraud, found him or her guilty, and assigned punishment, then the injured party only has to submit a notarized affidavit to the Commission, stating the pertinent facts of the case. But this party’s claim cannot exceed $2,000, and the affidavit’s facts must match what the Commission already knows of the case.
What, specifically, is the Research and Education Fund used for?
This Fund pays for research projects in the field of real estate and also endows professorial chairs at colleges and universities in the real estate discipline.
Describe the primary regulatory powers of the Real Estate Commission.
It decides what is required to get a real estate license and what continuing education is needed to keep it; issues and renews licenses: and disciplines licensees who break the law by way of censure, license suspension, or license cancellation.
List the basic requirements for a real estate license.
Successfully complete a 90-hour pre-licensing course
Be at least 18 years old
Have a high school diploma or equivalent
Pass the state licensing exam
Find a sponsoring broker within 90 days of passing this state exam
Describe the main regulations a new licensee must know about real estate documentation and escrow accounts.
A licensee must keep accurate, legible documentation of all real estate transactions and be ready for the Commissioner to inspect them at any time. Money belonging to clients entrusted to a licensee must be held in a bank account kept strictly separate from the personal or business account of the licensee, the broker, or the firm. No Commingling.
What does the Recovery Fund do?
Reimburses persons adjudged to have lost money by the unlawful actions of Louisiana licensees.
When the Commission summons an individual to appear at a hearing, what right is it exercising?
subpoena.
