Unit 6 Exam

Question 1

For a license expired more than 120 days but less than one year, a licensee must either attend a two-day commission meeting or pay a civil penalty of $1,500.

Answer 1

F

Question 2

Brokers must have a sign outside the office identifying it as a real estate office.

Answer 2

T

Question 3

TREC could revoke the license of a licensee who gives the consumers a copy of a contract that they sign when they sign it.

Answer 3

F

Question 4

Calling oneself a REALTOR® if one has not joined NAR could be considered misleading and untruthful advertising.

Answer 4

T

Question 5

A licensee is likely to be sued for failing to disclose to a buyer that the property the buyer purchased through the licensee was the site of a homicide.

Answer 5

F

Question 6

If directly asked whether an owner died or is currently afflicted with HIV, licensees must answer honestly what they know about it.

Answer 6

F

Question 7

Match the following with its definition:

Circuit or chancery

Affiliate broker

Executor

Time-share salesperson

Errors and omissions

Class B misdemeanor

A)
A person engaged under contract by or on behalf of a licensed broker

B)
The violation for acting as a broker or affiliate broker without first obtaining a license

C)
One who is exempt from the requirement of having a license to sell real estate for compensation

D)
Insurance all active licensees must have

E)
Courts that normally hear real estate cases

F)
One who is licensed to sell time-shares only

Answer 7

Circuit or chancery = E

Affiliate broker = A

Executor = C

Time-share salesperson = F

Errors and omissions = D

Class B misdemeanor = B

Question 8

In order for the consumer to get money from the Education and Recovery Account, a four-step process must be followed.

A)
Obtain a judgement

B)
Notify the commission in writing

C)
Exhaust all remedies at law

D)
Apply to the court for an order directing payment

Answer 8

B, A, C, D

Question 9

Match the following:

Resident manager

One

Two

Contract

Seventy

Property manager

A)
One who usually is not required to have a real estate license

B)
Number of Tennessee Real Estate licenses that may be held at one time

C)
One who is required to have a real estate license

D)
Number of commissioners without a real estate license

E)
Creates the broker-affiliate broker relationship

F)
Minimum percentage passing grade on affiliate tests

Answer 9

Resident manager = A

One = B

Two = D

Contract = E

Seventy = F

Property manager = C

Question 10

Match:

Payee of the funds

During normal daytime working hours

Reactivate errors and omissions insurance

Cease transacting real estate business

Pay the biannual renewal fee

Interpleader

A)
Required of a retired licensee

B)
An escrow account requirement

C)
Action prior to reactivating an inactive license

D)
Court action to determine how earnest money should be disbursed

E)
Affiliate’s immediate response to a broker’s death

F)
Time brokers must be accessible to their affiliate brokers

Answer 10

Payee of the funds = B

During normal daytime working hours = F

Reactivate errors and omissions insurance = C

Cease transacting real estate business = E

Pay the biannual renewal fee = A

Interpleader = D

Question 11

Match:

Tennessee state attorney general

Zero

18

Three from each grand division of the state

Sign outside

Five years

A)
A full term as a commissioner

B)
Minimum age to become a broker

C)
Recovery amount for licensees in the Education and Recovery Account

D)
Required of a broker to maintain a home office

E)
Defender of commissioners in court

F)
From where commissioners are selected

Answer 11

Tennessee state attorney general = E

Zero = C

18 = B

Three from each grand division of the state = F

Sign outside = D

Five years = A

Question 12

The director of education of the Commission

A)
must be member of a racial minority.
B)
must have passed the broker's exam.
C)
must have a college degree.
D)
must have been appointed by the governor.

Answer 12

Explanation
The answer is must have a college degree. The college major is not specified, only that the director of education have a college degree.

Question 13

A licensee is selling a property where a convicted sex offender once lived. The house would be considered a stigmatized property. Regarding stigmatized properties, licensees

A)
may disclose if they morally feel it is the right thing to do.
B)
are prohibited from such disclosure.
C)
must disclose their knowledge only under a court order.
D)
must only disclose with seller permission.

Answer 13

Explanation
The answer is may disclose if they morally feel it is the right thing to do. Disclosure of a social or psychological fact is not required, but it also is not prohibited.

Question 14

A licensee is selling a house that is known in the area as haunted. Such a property is known as a

A)
a starter home.
B)
bungalow.
C)
latent defect.
D)
stigmatized property.

Answer 14

Explanation
The answer is stigmatized property. A stigmatized property is one that the public has branded as undesirable because of the belief that some negative event occurring there.

Question 15

The liability of the education and recovery account to a consumer per transaction does NOT exceed

A)
$5,000.
B)
$15,000.
C)
$10,000.
D)
$20,000.

Answer 15

Explanation
The answer is $15,000. The maximum payout to the consumer who attempts to recover a monetary loss as a result of a real estate transaction is $15,000.

Question 16

To obtain a broker’s license, one must be at LEAST

A)
16 years of age.
B)
25 years of age.
C)
21 years of age.
D)
18 years of age.

Answer 16

Explanation

The answer is 18 years of age. Eighteen is the age of majority in Tennessee.

Question 17

A physical location will be considered a branch office if the broker

A)
allows affiliate brokers to work there.
B)
can still supervise those working there.
C)
has a mail box there registered with the post office.
D)
ensures that it is not the sole sales office for the firm.

Answer 17

Explanation
The answer is has a mail drop there registered with the post office. Examples of a physical location are a model home or a modular at a new construction site.

Question 18

Another name that Tennessee allows instead of facilitator is

A)
transaction broker.
B)
transaction manager.
C)
facilitator agent.
D)
facilitator person.

Answer 18

Explanation

The answer is transaction broker. The terms facilitator and transaction broker are synonymous in Tennessee.

Question 19

After TREC gives a firm 30 days plus a grace period to find a replacement broker for one who has died or has been absent for an extended period, the firm will MOST likely be shut down if a replacement broker is not found by the

A)
end of the month.
B)
end of the year.
C)
61st day.
D)
25th day.

Answer 19

Explanation
The answer is 61st day. TREC will give a firm and initial 30 days plus an additional 30 days to locate a replacement broker; if none is found by the end of the 61st day, it is most likely that the firm will be shut down.

Question 20

Sellers must complete a property and environment condition disclosure if they currently live in the residence for sale or have lived there at any time in the past

A)
four years.
B)
two years.
C)
three years.
D)
one year.

Answer 20

Explanation
The answer is three years. If the owners have resided in the home anytime in the past three years, they must complete a property and environmental condition disclosure.

Question 21

The two fiduciary duties that the Commission has stated are due to clients are

A)
disclosure and accounting.
B)
obedience and loyalty.
C)
care and obedience.
D)
confidentiality and care.

Answer 21

Explanation
The answer is obedience and loyalty. Under the scope of agency there are other fiduciary obligations, but TREC has specifically stated that obedience and loyalty are due clients in Tennessee.

Question 22

Brokers must keep records of all monies placed in the escrow account for a minimum of

A)
one year.
B)
six months.
C)
six years.
D)
three years.

Answer 22

Explanation
The answer is three years. The records include depositor of the funds, date of deposit, date of withdrawal, payee of the funds, and so on.

Question 23

A stigmatized property is one that has been branded as

A)
an undesirable property.
B)
an unaffordable property.
C)
a desirable property.
D)
a commercial property.

Answer 23

Explanation
The answer is an undesirable property. A stigmatized property is a property that has acquired an undesirable reputation because of an event that occurred on or near it, such as violent crime, gang-related activity, illness, or personal tragedy. Some states restrict the disclosure of information about stigmatized properties.

Question 24

When affiliated with a franchise or cooperative advertising group, and advertising something other than a property, the ad must include

A)
reference to the company that printed the ad.
B)
the fact that the licensee is an independent contractor and not an employee.
C)
the broker’s personal name.
D)
a disclosure saying, “Each (name of franchise) is independently owned and operated.”

Answer 24

Explanation
The answer is a disclosure saying, “Each (name of franchise) is independently owned and operated.” TREC does not require this disclosure when advertising property, only when advertising other than property.

Question 25

An agent told a buyer that a property the buyer purchased was zoned for a certain school district, when in fact it was zoned for another school district. The agent’s license could be revoked or suspended because his actions could be interpreted as

A)
negligent misrepresentation.
B)
nondisclosure.
C)
advice.
D)
negligence.

Answer 25

Explanation
The answer is negligent misrepresentation. The agent’s actions could constitute substantial and willful misrepresentation.

Question 26

Once released from a real estate firm, the licensee must find another real estate firm at which to affiliate within

A)
21 days.
B)
7 days.
C)
14 days.
D)
10 days.

Answer 26

Explanation
The answer is 10 days. Licensees who wish to transfer to a new firm must do so within 10 days of being released from their former firm.

Question 27

An agent has been offered a listing agreement at an estate sale because the owner committed suicide in the home. The agent

A)
is prohibited from disclosing the suicide.
B)
must disclose knowledge of the suicide.
C)
does not have to disclose knowledge of the suicide.
D)
should reject the listing because of the suicide.

Answer 27

Explanation
The answer is does not have to disclose knowledge of the suicide. Tennessee license law does not require disclosure of a stigmatized property.

Question 28

TREC could suspend or revoke an agent’s real estate license for any of the following reasons EXCEPT

A)
accepting a commission from someone who is not the licensee’s employing broker.
B)
accepting, giving, or charging a disclosed commission.
C)
untruthful advertising.
D)
engaging in the unauthorized practice of law.

Answer 28

Explanation
The answer is accepting, giving, or charging a disclosed commission. As long as the commission is disclosed in writing upfront, this is not an unlawful practice. An undisclosed commission would be an act that TREC could suspend or revoke one’s real estate license.

Question 29

State law says that should licensees fail to disclose their knowledge of a stigma on a property,

A)
no cause of action shall arise against the licensees.
B)
a major cause of action shall arise against the licensees.
C)
their licenses shall be immediately suspended pending a hearing by TREC.
D)
their licenses shall be immediately revoked.

Answer 29

Explanation
The answer is no cause of action shall arise against the licensees. Licensees are not obligated to disclose their knowledge of a stigma unless asked directly.

Question 30

If the Commission notifies a licensee that it has received a complaint about the licensee, the licensee must respond to the Commission with the licensee’s side of the issue. If mailed, the licensee’s response letter must be

A)
emailed to the Department of Commerce and Insurance.
B)
written on Commission-approved stationary.
C)
sent by registered mail.
D)
mailed within 60 days of the postmark on the Commission’s envelope.

Answer 30

Explanation
The answer is sent by registered mail. The Commission requires that all responses be delivered personally or by registered mail.

Question 31

Should a transaction not close and the buyer and the seller do not agree to disbursement of escrow funds, the broker can ask the court to decide how to disburse by filing

A)
an injunction.
B)
an interpleader action.
C)
a lis pendens.
D)
a laches.

Answer 31

Explanation

The answer is an interpleader action. Interpleader asks the court to decide how the escrow funds should be disbursed.

Question 32

An affiliate broker wishes to retire her license. Before that action, she must

A)
renew her errors and omissions insurance.
B)
complete required education.
C)
turn the license backwards on the office wall.
D)
pay the commission a $100 application fee.

Answer 32

Explanation
The answer is complete required education. Retirement will not be allowed until all required education has been completed. You may not retire a license without completing the educational requirements in effect at that time.

Question 33

The client is the party in a transaction that is represented by means of a

A)
option agreement.
B)
written bilateral agreement.
C)
written and signed unilateral agreement.
D)
unilateral contract.

Answer 33

Explanation
The answer is written bilateral agreement. The agreement is in writing and signed by the client and the broker or the broker’s representative.

Question 34

A buyer wants to give an affiliate broker $1,000 as a bonus for all his extra work. The broker should tell the buyer

A)
that he cannot accept it because he is receiving a split from the listing broker.
B)
he cannot accept a commission from his employing broker.
C)
to make it cash because he cannot accept a personal check.
D)
to make the check payable to his wife.

Answer 34

Explanation
The answer is he cannot accept a commission from his employing broker. Accepting a commission from anyone other than the licensee’s employing broker could result in TREC suspending or revoking his license.

Question 35

Licensees may have their license revoked by the Commission if they are found to have

A)
accepted a commission from their broker.
B)
disclosed the amount of a commission in a transaction.
C)
used misleading or untruthful advertising.
D)
preserved records of transactions for at least three years.

Answer 35

Explanation
The answer is used misleading or untruthful advertising. Licensees may have their license revoked if they use misleading or untruthful advertising.

Question 36

The Commission has an affirmative vote of a majority. Enough commissioners are present to establish a quorum. With this vote, the Commission can

A)
revoke a license.
B)
reinstate a license revoked by the court.
C)
send a licensee to a work farm because the Commission has no authority to send one to prison.
D)
send a licensee to prison for violation of license law.

Answer 36

Explanation
The answer is revoke a license. A majority vote of the commissioners is necessary for the Commission to revoke a license. Enough commissioners must be present for a quorum.

Question 37

The Commission has an affirmative vote of a majority. Enough commissioners are present to establish a quorum. With this vote, the Commission can

A)
revoke a license.
B)
reinstate a license revoked by the court.
C)
send a licensee to a work farm because the Commission has no authority to send one to prison.
D)
send a licensee to prison for violation of license law.

Answer 37

Explanation
The answer is revoke a license. A majority vote of the commissioners is necessary for the Commission to revoke a license. Enough commissioners must be present for a quorum.

Question 38

An agent has withheld information about a mold problem in a property. His actions could result in suspension or revocation of his real estate license because his actions constitute

A)
fraud.
B)
puffing.
C)
latent defects.
D)
representation.

Answer 38

Explanation
The answer is fraud. Fraud is the intentional misrepresentation of a material fact to harm or take advantage of another person. Continued and flagrant misrepresentation would be actionable by TREC.

Question 39

Once authorized by buyer and seller to disburse funds from the escrow account, the broker must do so within

A)
10 calendar days.
B)
21 calendar days.
C)
two weeks.
D)
3 business days.

Answer 39

Explanation
The answer is 21 calendar days. TREC has set a time period to prevent the broker from holding the escrow money for a prolonged period.

Question 40

To become a designated agent, one must be

A)
appointed as such by the managing broker.
B)
a member of the National Association of REALTORS®.
C)
a dual agent.
D)
at least 21 years old and licensed.

Answer 40

Explanation
The answer is appointed as such by the managing broker. The only way Tennessee license law allows one to become designated is appointment by the managing broker.

Question 41

Because real estate means and includes leaseholds,

A)
personal assistants must be licensed.
B)
resident managers must be licensed.
C)
rental location agents do not have to be licensed.
D)
property managers must be licensed.

Answer 41

Explanation
The answer is property managers must be licensed. Because property managers negotiate management agreements and are paid a fee for leasehold services, they must be licensed.

Question 42

In addition to having an active real estate license and complying with continuing education requirements, all active licensees must have

A)
a relocation network.
B)
errors and omissions insurance.
C)
a membership in the MLS.
D)
a clean, late-model automobile.

Answer 42

Explanation
The answer is errors and omissions insurance. If the license is active, the licensee must be covered by errors and omissions insurance.

Question 43

In addition to having an active real estate license and complying with continuing education requirements, all active licensees must have

A)
a relocation network.
B)
errors and omissions insurance.
C)
a membership in the MLS.
D)
a clean, late-model automobile.

Answer 43

Explanation
The answer is errors and omissions insurance. If the license is active, the licensee must be covered by errors and omissions insurance.

Question 44

After one year of someone’s license being expired, the only way to have it reinstated is to

A)
complete 12 hours of penalty education and be retested.
B)
pay a $2,500 late penalty and be retested.
C)
apply for relicensure.
D)
attend prelicensing again and be retested.

Answer 44

Explanation
The answer is apply for relicensure. After a license has been expired for 60 days, the only way for a licensee to be renewed is to apply for licensure unless the Commission waives the requirement and requires payment of the renewal fee and penalties not to exceed $100 per month.

Question 45

A house was the scene of a drug arrest and a violent murder last year. When it was listed on the market, many people considered it to be

A)
a property with a material defect.
B)
a latent property.
C)
a damaged property.
D)
a stigmatized property.

Answer 45

Explanation
The answer is a stigmatized property. Presuming that the property is physically intact, the drug arrest and violent murder may create psychological reactions to the property, rendering it stigmatized.

Question 46

If a professional real estate agent includes listings on his website that belongs to other real estate firms, there must also be on the website

A)
an invitation to check out some of the firm’s other websites.
B)
a statement that some of the listings advertised do not belong to the firm.
C)
a link to the listing firm’s home office.
D)
a photograph of the broker.

Answer 46

Explanation
The answer is a statement that some of the listings advertised do not belong to the firm. In order for the ad not to be misleading, such a statement is required.

Question 47

A licensee can remain retired indefinitely by paying the $80 renewal fee once every two years; a licensee can remain inactive

A)
only for the remainder of the 24-month renewal period.
B)
indefinitely, without the requirement of paying the renewal fee.
C)
until death.
D)
indefinitely, but must pay the $80 renewal fee once every two years.

Answer 47

Explanation
The answer is only for the remainder of the 24-month renewal period. By the end of the renewal period, the licensee must have completed required education and either reactivated the license or placed it into retirement status.

Question 48

When considering whether or not to reveal information regarding a stigmatized property, a real estate professional should be aware of

A)
and disclose all facts concerning the property.
B)
the desire of a potential buyer or tenant to know the information.
C)
the possible reaction of potential buyers or tenants.
D)
any relevant state laws.

Answer 48

Explanation
The answer is any relevant state laws. Many states provide statutory direction to real estate professionals by identifying stigmas that are not considered material facts and that therefore do not require disclosure.

Question 49

In Tennessee, unsubstantiated selling claims

A)
must be documented in writing.
B)
can only be supported with noncash gifts or prizes.
C)
are made only with written approval of the broker.
D)
are prohibited.

Answer 49

Explanation

The answer is are prohibited. “I can sell any property for any price” is an example of an unsubstantiated selling claim.

Question 50

A licensee is currently covered by E&O at no additional charge in the sale of his primary residence consisting of

A)
larger than a four-family residence.
B)
two units or less.
C)
more than seven rooms, not including bathrooms.
D)
more than eight occupants at the same time.

Answer 50

Explanation
The answer is two units or less. Errors and omissions insurance now has an automatic endorsement that makes the policy apply to the sale or listing of the licensee’s primary residence (consisting of two units or less), which serves as the licensee’s principal residence. Certain qualifications must be met. Additionally, an endorsement may be purchased that makes the policy apply to the sale or listing of a residential property of up to four units. Again, certain qualifications must be met.

Question 51

To keep a license from expiring during the time it is retired, the licensee must

A)
renew errors and omissions insurance.
B)
pay the $80 renewal fee.
C)
complete 16 hours of continuing education every 24 months.
D)
complete 120 hours of continuing education every three years.

Answer 51

Explanation
The answer is pay the $80 renewal fee. While a license is in retirement, the only requirement to keep it from expiring is to pay the $80 renewal fee once every 24 months.

Question 52

One who is exempt from licensure requirement and may receive compensation for being involved in a real estate transaction is

A)
a broker listing a property for rent.
B)
an attorney in fact.
C)
an attorney listing a property for sale.
D)
an affiliate broker listing a short sale.

Answer 52

Explanation

The answer is an attorney in fact. An attorney is fact is one who has received power of attorney.

Question 53

Broker A and broker B have agreed to charge the same commission rate when seeking business in a new subdivision only. Their actions

A)
are permitted because they are limiting them to one subdivision only.
B)
are not permitted and violate antitrust laws.
C)
are not permitted and violate settlement procedures laws.
D)
are permitted if they are the only companies doing business in that subdivision.

Answer 53

Explanation
The answer is are not permitted and violate antitrust laws. Their actions are illegal and constitute price-fixing and could result in TREC revoking or suspending their licenses.

Question 54

The official address of a real estate office may NOT be a

A)
P.O. box or telephone answering service.
B)
rural address.
C)
urban address.
D)
street address.

Answer 54

Explanation
The answer is P.O. box or telephone answering service. The broker can have both, but neither can be the official address of the firm.

Question 55

Deed restrictions are also known as

A)
pur autre vie fees.
B)
environmental issues.
C)
restrictive covenants.
D)
title possessions.

Answer 55

Explanation
The answer is restrictive covenants. Deed restrictions are placed on a property by a previous owner and restrict the usage of the property by future owners. Subdivision deed restrictions are intended to maintain the quality and character of the subdivision.

Question 56

The license application fee for a broker, affiliate broker, or time-share license is

A)
$80.
B)
$50.
C)
$100.
D)
$200.

Answer 56

Explanation

The answer is $100. The application fee is $100 plus $10 for the education and recovery account.

Question 57

An individual has just passed her broker’s exam. In order to get her broker’s license, she must pay a $100 application fee and an additional fee to the real estate education and recovery account not to exceed

A)
$100.
B)
$30.
C)
$10.
D)
$50.

Answer 57

Explanation

The answer is $10. The current required contribution to the education and recovery account is $10.

Question 58

When advertising properties on a licensee’s personal website, the firm’s name and phone number

A)
do not have to be included if the affiliate's name and phone number are listed.
B)
must always be in letters larger than those identifying the affiliate.
C)
must be on each webpage.
D)
must be included on the main page.

Answer 58

Explanation

The answer is must be on each webpage. The same rules of advertising apply to print media and internet advertising.

Question 59

The Commission has an affirmative vote of a majority. Enough commissioners are present to establish a quorum. With this vote, the Commission can

A)
send a licensee to prison for violation of license law.
B)
reinstate a license revoked by the court.
C)
revoke a license.
D)
send a licensee to a work farm because the Commission has no authority to send one to prison.

Answer 59

Explanation
The answer is revoke a license. A majority vote of the commissioners is necessary for the Commission to revoke a license. Enough commissioners must be present for a quorum.

Question 60

The executive director of education is a full-time employee of the state, has a four-year renewable contract, and

A)
must have passed the broker's exam.
B)
must be at least 60 years of age.
C)
is appointed by the governor.
D)
is one of the nine commissioners.

Answer 60

Explanation
The answer is must have passed the broker’s exam. TREC has an executive director of education, who is not a commissioner, but a full-time employee of the state. The position is appointed by the Commission, must have a broker’s license, and is given a four-year renewable contract. The director of education must have a college degree.

Question 61

Should TREC vote to revoke someone’s real estate licensee, to do so would take a consenting vote of at LEAST

A)
five or more.
B)
six or more.
C)
majority vote.
D)
less than majority vote.

Answer 61

Explanation
The answer is majority vote. The majority vote must be a majority of those in attendance as long as there is at least enough to establish a quorum.

Question 62

Conditions that have a negative impact on the value of real estate, reduce the structural integrity of improvements, or present a health risk to occupants are

A)
latent defects.
B)
adverse facts.
C)
stigmatized properties.
D)
detrimental determinants.

Answer 62

Explanation
The answer is adverse facts. An adverse fact is a physical or environmental problem with the property that, if known, must be disclosed.

Question 63

Within how many days must a licensee, who is convicted of an unlawful activity, notify TREC of the conviction?

A)
7 days
B)
30 days
C)
120 days
D)
60 days

Answer 63

Explanation
The answer is 60 days. A licensee who is convicted of any of these must notify TREC of the conviction within 60 days of conviction date. After a hearing, TREC will notify the licensee of its decision to allow the licensee to remain active, or TREC will suspend or revoke the license.

Question 64

If the principal broker dies, the firm must notify TREC within

A)
7 days.
B)
3 days.
C)
5 days.
D)
10 days.

Answer 64

Explanation

The answer is 10 days. If notified within 10 days, TREC will give the firm time to locate another broker.

Question 65

A licensee can remain retired indefinitely by paying the $80 renewal fee once every two years; a licensee can remain inactive

A)
until death.
B)
only for the remainder of the 24-month renewal period.
C)
indefinitely, without the requirement of paying the renewal fee.
D)
indefinitely, but must pay the $80 renewal fee once every two years.
Explanation

Answer 65

The answer is only for the remainder of the 24-month renewal period. By the end of the renewal period, the licensee must have completed required education and either reactivated the license or placed it into retirement status.

Question 66

If an owner is afflicted with HIV, the disclosure of such information about the owner is protected under the rights of the handicapped or disabled under the

A)
National Association of REALTORS®.
B)
Americans with Disabilities Act.
C)
Fair Housing Act.
D)
Tennessee Real Estate Commission.

Answer 66

Explanation
The answer is Fair Housing Act. If a licensee is asked whether the owner is afflicted with HIV, the licensee should respond with a statement such as “I cannot comment on that,” because the owner is protected under the rights of the handicapped or disabled under the Fair Housing Act. If asked directly about the agent’s knowledge of the items on the previous screen, the agent must answer honestly what is known.

Question 67

The government’s charge to a developer to regulate new development on real property is

A)
pur autre fee.
B)
impact fee.
C)
capital gains tax.
D)
excise tax.

Answer 67

Explanation
The answer is impact fee. The fee is charged to gauge the impact of new development on existing sewers, water lines, electricity, et cetera.

Question 68

An affiliate broker wishes to retire her license. Before that action, she must

A)
pay the commission a $100 application fee.
B)
turn the license backwards on the office wall.
C)
renew her errors and omissions insurance.
D)
complete required education.

Answer 68

Explanation
The answer is complete required education. Retirement will not be allowed until all required education has been completed. You may not retire a license without completing the educational requirements in effect at that time.