Regulation of Business Conduct Flashcards
Provide real estate brokerage services means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker may retain a licensee as an independent contractor, employee, or otherwise
Commissions and Rebates
An individual licensed by this State may divide a fee that is earned in this State with an out-of-state licensee if the other state so allows.
A licensee must include in every advertisement
・ Real estate licensees must include their name or designated name and the name of the business they are affiliated with in a meaningful and conspicuous way.
・ A designated name is an individual name other than the licensee’s full legal name.
・ A designated name can include a first name, nickname, or last name.
・ Licensees must have their designated name approved by the Commission before using it.
Trust account
▪ “trust money” is money that a person entrusts to a real estate licensee to hold for someone for the benefit of the owner and a purpose that relates to real estate
▪ a real estate licensee must promptly deliver trust money to the broker
Trust account
▪ the broker must deposit earnest money in a non-interest bearing escrow or special account (trust account) not more than 7 business days after a sales contract is entered, unless the broker receives written instructions otherwise
Trust account
Provide real estate brokerage services means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ “beneficial owner” means a person, other than the owner of the trust money, for whose benefit, a real estate licensee is entrusted to hold trust money
for example, a buyer is the “owner” of an earnest money deposit, and the “beneficial owner” is the seller
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker must submit notice of business entity to the Commission
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker may provide real estate brokerage services through a corporation, limited liability
company, or partnership
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ operation as a business entity does not relieve broker or any affiliated licensee of individual liability
Trust account
･･The real estate transaction is consummated or terminated.
･･The broker receives proper written instructions from the owner and beneficial owner.
･･An interpleader is filed by the broker.
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker must submit notice of business entity to the Commission
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ operation as a business entity does not relieve broker or any affiliated licensee of individual liability
Trust account
▪ “beneficial owner” means a person, other than the owner of the trust money, for whose benefit, a real estate licensee is entrusted to hold trust money
for example, a buyer is the “owner” of an earnest money deposit, and the “beneficial owner” is the seller
▪ a real estate broker must maintain trust money in a trust account until
･･The real estate transaction is consummated or terminated.
･･The broker receives proper written instructions from the owner and beneficial owner.
･･An interpleader is filed by the broker.
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker must submit notice of business entity to the Commission
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker may provide real estate brokerage services through a corporation, limited liability
company, or partnership
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker must submit notice of business entity to the Commission
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ operation as a business entity does not relieve broker or any affiliated licensee of individual liability
Trust account
▪ “beneficial owner” means a person, other than the owner of the trust money, for whose benefit, a real estate licensee is entrusted to hold trust money
for example, a buyer is the “owner” of an earnest money deposit, and the “beneficial owner” is the seller
▪ a real estate broker must maintain trust money in a trust account until
･ The real estate transaction is consummated or terminated.
･The broker receives proper written instructions from the owner and beneficial owner.
･ An interpleader is filed by the broker.
Distribution of trust money
▪ if the owner or beneficial owner of the trust money fails to complete the real estate transaction, in the broker’s sole discretion, the broker may distribute the trust money
Distribution of trust money
Before distributing the trust money when the owner or beneficial has failed to complete the real estate transaction, the real estate broker must notify both principal parties that the real estate broker intends to distribute the trust money and specify the intended distribution
▪ either party may prevent distribution by filing a protest within 30 days
▪ if neither party submits a timely protest, the money is distributed according to
the broker’s notice
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker must submit notice of business entity to the Commission
A real estate broker must maintain trust money in a trust account until
･ The real estate transaction is consummated or terminated.
･The broker receives proper written instructions from the owner and beneficial owner.
･ An interpleader is filed by the broker.
Trust account
▪ “beneficial owner” means a person, other than the owner of the trust money, for whose
benefit, a real estate licensee is entrusted to hold trust money
for example, a buyer is the “owner” of an earnest money deposit, and the “beneficial owner” is the seller
Account termination
When the duty of the real estate broker to maintain trust money in an account terminates, the real estate broker must promptly account for all trust money
Provide real estate brokerage services” means to engage in any of the activities for which a license is required
(see activities requiring licensure in previous section)
▪ broker must submit notice of business entity to the Commission
