Real Estate Law Flashcards
For you to learn something hopefully
1
Q
Who does not need to have a License?
A
A public official holding an auction
2
Q
These people may be excluded from holding a real estate license except…
A
a person who places an ad on the internet under their responsible broker
3
Q
The five commissioners appointed by the Governor with advise and consent from the senate have the power to do all except
A
Appoint a Commissioner
4
Q
Can the real estate commissioners issue subpoenas
A
Yes
5
Q
A broker applicant who has not held a salespersons license for a period of 12 months immediately prior to submitting an application, must
A
have successfully completed 150 class room hours in real estate courses that are acceptable for credit towards a degree
6
Q
A nonresident may apply for a nonresident’s license in Mississippi provided the
individual is a licensed broker or is a broker salesperson or salesperson affiliated with a
resident or nonresident Mississippi broker.
A
provided a nonresident who applies for a
broker’s license and who will maintain an office in Mississippi.
provided the nonresident not maintain a place of business within Mississippi provided he
is regularly actively engaged in the real estate business and maintains a place of business
in the other state.
7
Q
It is unlawful to carry out the business of a broker or salesperson without;
A
a license.
8
Q
The following may be exempt from having a license
A
Attorneys and executed power of attorney.
Receiver, trustee, administrator, and public officers.
Those dealing in oil/gas leases and mineral rights.
9
Q
Licensee following notification of action resulting from a Commissioner hearing
A
has 30 days to appeal any ruling and post a required $500 bond for any costs which may be adjudged
against him.
10
Q
Whenever a Mississippi broker enters into a cooperating agreement with a nonresident
broker, the Mississippi broker
A
must file two copies of the cooperating agreement within 10 days with the Mississippi Real
Estate Commission.
11
Q
When a broker has an agreement with a nonresident broker, involving a property
located in Mississippi all advertising must have the name and telephone number of the
Mississippi broker.
A
and the Mississippi broker shall be given equal prominence.
12
Q
The Mississippi broker in a nonresident cooperating broker agreement
A
shall be liable for all acts of the cooperating broker
shall be liable for his own acts.
13
Q
An earnest money deposit pertaining to a cooperative agreement must be held in escrow
A
by the Mississippi broker
unless both the buyer and seller agree in writing to relieve the Mississippi broker of this
responsibility.
14
Q
All licenses of real estate salespersons or broker salespersons,
A
shall designate the responsible broker of such salesperson or broker salesperson.
15
Q
When a broker has an agreement with a nonresident broker, involving a property
located in Mississippi all advertising must have the name and telephone number of the
Mississippi broker.
A
and the Mississippi broker shall be given equal prominence.
16
Q
Notice in writing shall be given to the Commission by any real estate salesperson with a change of responsible broker within
A
3 days
17
Q
When within 3 days a salesperson notifies the Commission of a change of broker.
A
The salesperson must give the name of his responsible broker and the name of the principal
broker into whose agency the salesperson is about to enter.
18
Q
When changing responsible brokers
A
A new license shall thereupon be issued by the Commission to such salesperson for the
unexpired term of the original license upon the return to the Commission of the license
previously issued.
19
Q
Brokers may give legal advice
A
Never.
20
Q
Licensees may obtain errors and omissions coverage independently if the coverage
contained in the policy follows the minimum requirement of;
A
a per claim limit is not less than $100,000.
21
Q
All (5) five commissioners appointed by the Governor with advise and consent of the
Senate;
A
Must be a resident for 6 years and a managing broker for 5 years.
22
Q
Real Estate Commissioners;
A
are from each congressional district and one at large.
23
Q
Commissioners are vested with power of court to issue and enforce subpoenas, levy
fines and?
A
Levy jail terms.
23
Q
All license fee funds must be submitted to the State Treasury with detailed explanation
A
on a weekly basis.
24
Any applicant or licensee or person aggrieved shall have the right of appeal from any
adverse or order or decision the Commission to the circuit court of the county of the
residence of the applicant, licensee, or person or of the First Judicial District of Hinds
County within ___________ days from the service of notice of the action of the
Commission.
thirty
24
All monies which shall be paid into the state treasury are credited;
to the “real estate license fund”.
24
Any person taking appeal shall post a satisfactory bond in the amount of
_________dollars for the payment of any costs which may be adjudged against him.
$500
24
Any person charged with a violation shall be given ____________ days’ notice of the
hearing upon the charges filed, together with a copy of the complaint.
Fifteen days
25
Licensees who do not show proof of E and O Insurance have 30 days to correct the
deficiency. If the deficiency is not corrected within the 30 days;
the licensees licenses will be placed on inactive status.
25
Funds received by the Commission are used to;
fund Mississippi Real Estate Commission operations.
26
Monies from the “real estate license fund” are used for;
salaries and expenses.
printing an annual directory of licensees.
educational purposes and maintenance of a searchable internet based web site which shall
satisfy the requirement for publication of a directory of licensees.
27
No fee, commission or other valuable consideration may be paid to a person for real
estate brokerage activities unless the person provides evidence of;
a license or a cooperating agreement.
27
A broker wants to pay his neighbor a referral fee for sending the broker the neighbors
sister who purchased a home through that broker.
The broker cannot pay his neighbor a fee unless the neighbor is a licensed real estate agent
and then the broker would need to pay his broker.
28
IREBEA (Interest on Real Estate Broker’s Escrow Accounts) is?
voluntary
29
The determination of whether a client’s funds are nominal in amount or to be held for a
short period of time;
rest in the sound judgment of each broker, and no charge of ethical impropriety or other
breach of professional conduct shall attend a broker’s exercise of judgment in that regard.
30
The interest in a IREBEA account for nominal or short term deposits shall be made
quarterly to;
the Mississippi Housing Opportunity Fund.
31
Participation in IREBEA is accomplished by;
A broker written notice to an authorized financial institute.
32
Transfer Disclosures are mandatory for all of the following except?
A transfer from one co-owner to one or more other co-owners.
33
The transferor of a duplex shall deliver to the prospective transferee the written
property disclosure statement;
as soon as practicable before the transfer of title.
34
In the case of transfer by a real property sales contract, or by a lease together with an
option to purchase, or a ground lease coupled with improvements, delivery of the Transfer
Disclosure Statement is delivered ;
as soon as practicable before the execution of the contract.
35
The transferor shall indicate delivery of the Property Disclosure Statement on;
The receipt for deposit or the real property sales contract or the lease.
Any addendum attached thereto or on a separate document.
36
Delivery of the Real Estate Transfer Disclosure is mandatory in all of the following
cases except;
a transfer to a government entity.
37
If any disclosure, or any material amendment of any disclosure, required to be made is
delivered after the execution of an offer to purchase;
the transferee shall have three (3) days after delivery in person or five (5) days after
delivery by deposit in mail to terminate his or her offer by delivery of a written notice of
termination to the transferor or the transferor’s agent.
38
Neither the transferor nor any listing or selling agent shall be liable for an
error, inaccuracy or omission of information delivered;
if the error, inaccuracy, or omission was not within their personal knowledge.
39
An agent without personal knowledge will not be held responsible for an error when the
error was by a;
licensed engineer, land surveyor or geologist.
structural pest operator or contractor
experts dealing in matters within the scope of the professional’s license or expertise.
40
Delivery to a spouse of a property disclosure transferee;
shall be deemed delivery to the transferee unless provided otherwise in the contracts.
41
Any person who willfully and negligently does not deliver the needed disclosures shall
be liable;
in the amount of actual damages suffered by a transferee.
42
Real Estate Transfer Disclosures are needed for;
residential stock cooperatives of one to four units when a real estate professional is involved.
43
A nonmaterial fact which need not be disclosed is
the seller or any resident of the property died or is sick from AIDS.
44
A salesperson has a listing with his responsible broker, Broker A. The salesperson
decided to transfer to a new broker before the listing expires. When the agent moves to
the new broker, who owns the listing?
Broker A
45
It is not the duty of the responsible broker;
to make sure each agent has completed their post licensing education and kept their license
current.
46
An affiliated broker cannot act independently of his employing broker;
without the full consent and knowledge of his employing broker.
47
Applicants for a real estate license;
may take the exam but have ten days to find a responsible broker.
48
A licensed Mississippi broker may cooperate with a broker licensed in another state
who does not hold a Mississippi license;
through the use of a cooperative agreement.
49
A change of responsible broker requires the salesperson
to within 3 days give written notice to the Commission
50
A separate cooperating agreement must be filed for each property, prospective user, or
transaction with said writing;
reflecting the compensation to be paid to the Mississippi licensed broker.
51
When there is a cooperative agreement with a non-resident broker, the listing or
property management agreement for the Mississippi property;
must remain in the name of the Mississippi broker.
52
How many copies of a cooperative agreement must a Mississippi broker file with the
Mississippi Real Estate Commission?
two
53
The nonresident broker cannot place any sign on real property located in Mississippi
without the written consent of the cooperating Mississippi broker. When both brokers
place signs on the property.
They should be placed side by side in a prominent place and in close proximity.
54
When advertising a property shared by an out of state broker
the name of the Mississippi broker must be listed.
55
A responsible broker must maintain an office and display the license therein. If the
broker has more than one office
the broker shall display a branch office license in each branch office.
56
No licensee shall pay any part of a fee, commission or other compensation received by
such licensee in buying, selling, exchanging, leasing, auctioning, or renting any real estate
except
to a licensee through the licensee’s responsible broker.
57
The responsible broker must
hang in the office all licenses of the licensees he is responsible for.
58
Peggy, a salesperson for broker Bob listed and sold a property. Before being paid for
that executed transaction, Peggy changed responsible brokers. Broker Bob;
can pay Peggy her commission directly.
59
Any licensee who fails in a timely manner to respond to official Mississippi Real Estate
Commission written communication or who fails or neglects to abide by Mississippi Real
Estate Commission Rules and Regulations shall be deemed;
prima facie, to be guilty of improper dealing.
60
A real estate broker or salesperson in the ordinary course of his business may give an
opinion as to the price of real estate for the purpose of a prospective listing or sale, however
this opinion as to the listing price or sale price;
must not refer to this as an appraisal.
61
When an offer is made on a property owned by a party with whom the broker has
entered into a listing agreement, such broker shall document and date an acceptance
or rejection of the offer and;
upon written request, shall provide a copy of such document to the person making the offer.
62
A real estate licensee shall deliver a true and correct copy of any instrument to any
party or parties executing the same;
immediately (at the time of signing).
63
All exclusive listing agreements shall be in writing, properly identify the property to be
sold and contain all of the terms and conditions under which the transaction is to be
consummated including the sales price, the considerations to be paid, the signatures of all
parties to the agreement and ;
a definite date of expiration.
64
All exclusive buyer representation agreements shall be in writing and properly identify
the terms and conditions under which the buyer will rely on the broker for the purchase of
real estate including the sales price, the considerations to be paid, the nature of all parties
to the agreement and a definite date of expiration.
The buyer may terminate the agreement upon fifteen (15) calendar days written notice to the
buyer’s exclusive agent.
65
Broker Bob received an offer this morning for a property he has listed. Bob promptly
called his client and then faxed the offer to his client. Later that day Bob received a second
offer that was lower and had bad credit terms for financing. What should Broker Bob do?
Present the second offer because the seller has not accepted the first offer and any
other written offer received by the broker in a sale shall be presented to the owner.
66
Every contract must reflect whom the broker represents by a statement;
over the signatures of the parties to the contract.
67
A real estate broker must keep on file following its consummation complete records
relating to any real estate transaction for;
three years.
68
The use of any copyrighted term or insignia on stationary, office signs, or in
advertisement by any licensee not authorized to do so, will be considered;
as substantial misrepresentation” and cause for refusal, suspension, or revocation of the
license.
69
A salesperson wants to advertise on an internet web page.
All advertising must be under the direct supervision and in the name of the responsible broker
or in the name of the real estate firm.
70
In addition to disclosing their licensed status on all advertisements, licensees are
required to disclose their license status;
on all contracts for real estate in which they have an ownership interest.
70
When a licensee is advertising their own property for sale, purchase or exchange which
is not listed with a broker, the licensee must?
The licensee must indicate he or she is licensed.
71
An agent made real estate signs to put in the front yard of his client’s home. He did not
put the name of his responsible broker or name of his real estate firm on the sign.
This is a “Blind Ad” and is in violation of license law.
72
Earnest money accepted by the broker or any licensee for which the broker is
responsible and upon acceptance of a mutually agreeable contract is required to deposit
the money;
Into a trust account prior to the close of business of the next banking day.
73
When a broker is agent for the seller and for any reason the seller fails or is unable to
consummate the transaction, the broker has no right to any portion of the money deposited
by the purchaser;
even if the commission was earned.
74
When the broker is agent for the seller and for any reason the seller fails or is unable to
consummate the transaction, the broker has no right to any portion of the money deposited
by the purchaser, even if the commission has been earned. The money must be returned to
the purchaser and the broker;
should look to the seller for compensation.
75
Monies received in a trust account on behalf of clients or customers are not assets of the
broker; however, a broker may deposit and keep in each escrow account or rental account
some personal funds for the express purpose;
of covering service charges and other bank debits related to each account.
76
If a broker, as escrow agent, accepts a check and later finds that such check has not
been honored by the bank on which it was drawn, the broker shall;
immediately notify all parties involved in the transaction.
77
Special situations, where unusual facts exist or where one or more parties involved are
especially vulnerable, could require additional disclosures not contemplated. In such cases,
brokers;
should seek legal advice prior to entering into an agency relationship.
78
“Disclosed Dual Agent” is when;
an agent representing both parties to a real estate transaction with the informed consent of
both parties, with written understanding of specific duties and representation to be afforded
each party.
79
Brokers who practice disclosed dual agency;
c. should do so with the utmost caution to protect consumers and themselves from inadvertent
violation of demanding common law standards of disclosed dual agency.
80
“Fiduciary Responsibility” are those duties due the principal (client) in a real estate
transaction are;
Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Skill, Care and Diligence and
Full Accounting.
81
When the broker is the agent for the seller, “first substantive meeting” shall be before
or just immediately prior to the first of any of the following;
showing the property, eliciting confidential information and the execution of any agreements.
82
For the seller’s agent, the first substantive meeting does not include;
a bona fide open house or model home showing, small talk concerning price range, location
and property styles and responding to general factual questions.
83
For the buyer’s agent, the first substantial meeting shall not include;
a bona fide open house or model home.
preliminary conversations or small talk concerning price range, location, and property styles.
responding to general factual questions from a prospective buyer concerning properties that
have been advertised for sale or lease.
83
When the broker is the agent for the buyer, first substantive meeting is;
Showing the property of a seller to a represented buyer, Eliciting any confidential information from a seller concerning their real estate needs,
motivation, or financial qualifications,The execution of any agreements. All of these
84
In dual agency;
the buyer shall give his/her consent by signing the MREC Dual Agency Confirmation
Form which shall be attached to the offer to purchase.
85
In the event the agency relationship changes between the parties to a real estate
transaction;
new disclosure forms will be acknowledged by all parties involved.
86
In the event one or more parties are not available to sign one or more disclosures forms,
the disclosure will be accomplished orally. The applicable form will be so noted by the
broker and said forms will be forwarded for signatures as soon as possible.
written electronic transmission will fulfill this requirement.
87
The Commission mandated disclosure form;
may be duplicated in content and size but not altered.
88
Every licensee shall notify the Real Estate Commission of any adverse court decisions in
which the licensee appeared as a defendant;
within 10 days
89
The expiration, suspension or revocation of a responsible broker’s license shall
automatically suspend the license of every real estate licensee currently under the
supervision of that broker. In such cases
a licensee may transfer to another responsible broker.
90
Any seller of a timeshare plan with the state of Mississippi must be a licensed Real
Estate Broker or Real Estate Salesperson except;
The developer and his regular employees.
91
A person who offers a timeshare plan located outside of Mississippi in a national
publication or by electronic media, which is not directed to or targeted to any
individual located in Mississippi and contains appropriate disclaimers;
is exempt from licensee requirements.
92
A purchaser of a time share may cancel the contract;
within 7 calendar days of signing the contract or 7 calendar days of receiving the public
offering statement.
93
The MREC will issue a (timeshare) preliminary permit in 20 days
unless deficiencies are found on the application.
94
Developers of timeshares and any of his agents cannot practice
timeshare;
without meeting registration requirements of the MREC.
95
The responsible broker must report any licensee for whom that broker is responsible
to the commission if
he/she believes that a licensee has violated laws rules or regulations.
96
A licensee shall not be required to comply with disclosure requirements when engaged
in transactions with;
corporation, nonprofit corporation, professional corporation
professional association, limited liability company, partnership, real estate investment trust,
business trust, charitable trust, family trust
any governmental entity in transactions involving real estate.
97
Every applicant for a resident license as a real estate salesperson shall be;
18 years of age or older and be a bona fide resident of the state of Mississippi prior to filing
his application.
98
Legal action by the Commission for a violation may take the form of a fine of not more
than $1,000 and or up to 90 days in jail, or both. The second violation can be;
up to a $2,000 fine and up to 6 months in jail or both.
99
What was the primary reason for the Mississippi Real Estate Commission was
established?
To safeguard the public
100
The extent of cooperation of reciprocity with other states;
vary
101
Failure to renew your license on time will result in a penalty of double fee. 30 days
late, will result;
in the license being canceled.
102
What year was the Mississippi Real Estate Commission established?
1954
103
When a buyer acknowledges a Dual Agency Agreement, must a notary be available to
attest to the signature?
No because it is not required.
104
When an agent transfers to a new broker and within 3 days gives written notice to the
Commission the name of the principal broker into whose agency he is about to enter
he mails his license to the
Commission and a new license will be issued for the unexpired term of the original license.
