SU # 01__License Law Overview Flashcards
When did the Real Estate License Act of 1983 undergo a major revision?
The Real Estate License Act of 2000 amended the existing laws.
When can confidential information be shared by the licensee?
- If the client permits the disclosure
- The disclosure is required by law
- The information becomes public from a source other than the licensee.
Which of the following is NOT a part of confidential information?
Client’s business holdings.
Minimum a seller will accept for a property.
Reason a property is listed on the market.
Physical condition of the property.
Physical condition of the property.
What is the purpose of the license laws?
To protect the public
Which of the following is NOT an activity included in the definition of Broker?
Sells, exchanges, purchases, rents, or leases real estate.
Negotiates the sale, exchange, purchase, rental, or leasing of real estate.
Holds a non-public open house.
Engages in the business of buying, selling, exchanging, renting, or leasing real estate.
Holds a non-public open house.
Which agency has oversight responsibilities regarding home inspectors?
Illinois Department of Financial and Professional Regulation
Which agency in Illinois has responsibility for licensing schools and instructors?
Division of Real Estate
In which of the following cases would a person probably be required to have a real estate license?
a. As a favor, John Smith helps his sister locate an apartment, since he knows the area.
b. Mary performs secretarial duties for her boss, a real estate investor.
c. Bruce gets hired to find an office suite for a friend who is relocating her business.
d. Laura lands a new job managing the reservations desk at a new hotel
c. Bruce gets hired to find an office suite for a friend who is relocating her business.
A license applicant signs up to take the state examination, but has failed to obtain an employer prior to the exam date. In this case, the applicant
a. must re-schedule the exam.
b. must find an employer before taking the exam.
c. may take the exam, but must find an employer before a license can be issued.
d. may take the exam and receive an inactive license
d. may take the exam and receive an inactive license
A broker operates an office in a town on the state line. A buyer from the adjoining state wants to see homes on both sides of the border. In this case, the broker
a. may operate in both states since the market’s boundaries overlap state lines.
b. may not show the buyer homes in the other state without a non-resident license.
c. may show homes in the other state so long as the closing takes place in his home state.
d. may not show homes in the other state unless accompanied by a licensee from that state.
b. may not show the buyer homes in the other state without a non-resident license.
A principal role of the real estate commission is to
a. enact the state’s real estate license law.
b. administer state licensing requirements.
c. adjudicate violations of license law in lieu of the state court system.
d. institute a system of private real estate schools to fulfill educational requirements.
b. administer state licensing requirements.
License regulators, empowered by state law to oversee brokerage practices, may
a. take punitive actions against fraud or misrepresentation.
b. limit the size of a brokerage to prevent possible monopoly.
c. dictate the commission structures of practicing brokers and salespeople.
d. disapprove a broker’s branch office location to maintain competitive balance in an area.
a. take punitive actions against fraud or misrepresentation.
A broker has her license suspended for violating state license law. In such a case, the licenses of her three salespeople are
a. automatically activated.
b. not valid.
c. placed temporarily under the control of the state.
d. unaffected.
b. not valid.
The purpose of a recovery fund is to
a. protect damaged licensees from clients who fail to pay earned commissions.
b. assist in the liquidity of a troubled brokerage through low-interest loans.
c. ensure that judgments against licensees will be collectible.
d. replenish losses in escrow accounts of brokerages found to have mismanaged impounded monies
c. ensure that judgments against licensees will be collectible.
