WA – Real Estate License law, lesson 17 – Flashcards
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real estate managing brokers with at least 5 years.They are appointed by the governor for a term of 6 years.
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Members of the Real Estate Commission are usually
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1. on behalf of another person 2. for a commission & or other compensation (car or a trip, something of value & therefore should be reported to the IRS.)
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A real estate designated broker is a person who performs certain activities (selling and negotiating the sale of real estate)
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Business opportunities, where an interest in real property is included.
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A real estate license is required not only for selling real estate, but for the selling of
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1. Offering to buy real estate. 2. Offering to sell real estate. 3. Negotiating a lease of real estate. 4. Offering to negotiate a lease of real estate. 5.Offering to negotiate an exchange of real estate. 6. Offering to negotiate an exchange of business opportunities.
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Definition of a real estate broker who act as agents for the compensation in performing
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1. To ensure the agent has a minimum level of competence. 2. Regulation of the daily business activities of the real estate activities.
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What are the two primary purposes of the license law?
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Is not a violation of the licensing law as long as the person does not receive any compensation. He is called an Attorney in fact.
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A person who does not have a real estate license, but is acting under a power of attorney to negotiate the sale of a property on behalf of another person.
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Is not a violation of the licensing law if 1. he is the resident manager of the building. 2. his parents own the building 3. he is not doing 3rd party activities.
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A person who does not have a real estate license, and is showing prospective tenants an apartment in a building he does not own.
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1. when a license is issued to a business entity 2. Have a managing brokers license. 3. Has a controlling interest (must have some ownership or interest in the company such as shares).
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Designated Broker
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1. Has met the qualifications for the broker's license. 2. Is an Affiliated licensee of a designated broker. (An affiliate not an employee).
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A real estate broker
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1. Brokers 2. Managing Brokers. 3. but not a designated broker.
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The term Affiliated licensee refers to
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1. can take over the responsibility for managing the 2nd firm. 2. must have a controlling interest in the firm. 3. A managing / designated broker can only hang their license in one location, but can have multiple locations.
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In the event of a death or incapacitation of the designated broker, another designated broker
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one year from the exam date, and will have to redo the exam if not licensed with in that year. ( Can put license on inactive status with the state).
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The results of your passed brokers exam is valid for
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90 clock hours of approved courses within 3 years. ( Accumulated years of experience with in the last five years, and can be in another state). 1. Advanced real estate law. 2. brokerage management 3. business management.
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To qualify for a managers brokers license, an applicant must have completed
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1. arithmetic, 2. agency relationships, 3. real estate license law, 4. business ethics, 5. real estate economics, 6. appraisal, 7. civil rights, 8. property rights
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Subjects taught tested in the real estate brokers exam.
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6 months, or redo and pass the full exam again.
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If one portion of the exam is passed, but not the other. They must pass the second portion with in
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18
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The minimum age requirements for a real estate license is
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1. Need active evidence in the last 6 months. 2. If they are a commercial broker who does business in another state, the broker must find a company who writes a letter on their behalf. All money transaction goes through that company and the company sends a letter to the government about the activity.
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A broker who is actively licensed in Idaho is automatically eligible to take the WA Brokers exam, and does not need to satisfy the requirements for education and experience.
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must have a high school diploma or equivalent.
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An applicant for a brokers license
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3 years full time within the last 5 years.
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An application for a manager brokers license is required to be a real estate broker with at least
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1. Must submit fingerprint identification to the department of licensing. 2. Will be asked to provide full details.
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Anyone who has been convicted of a crime with in ten years before applying for a license
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is not permitted to engage in activities that require a license, and is still subject to disciplinary actions for violations of the license law.
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A person with an interactive real estate license
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30 clock hours of approved continuing education courses including a 3 hour core curriculum course.
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To get a real estate license renewed, the licensee must take
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on his birthday in 1997. Prior to July 1, 2010. You renewed in the 2nd year on your birthday. After July 1, 2010. you renew your license every two years after your activation date.
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If a broker obtained his real estate license on December 31, 1995. He will renew his license
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90 clock hours. 1. 30 hours of advanced real estate practices. 2. 30 real estate law. 3. 30 continuing education & a 3 hour core curriculum course.
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In addition to the regular continuing education requirements for licensing renewal, the first renewall of the brokers license requires completion of approved
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Must renew the license by its renewal date.
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The holder of an inactive real estate license
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1. The Designated broker 2. The managing broker.
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A real estate broker has just violated the licensing law. Who in addition to the broker may be subject to disciplinary action?
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surrenderd to the DOL immediately, and the license cannot be reactivated until the broker has become affiliated with a new firm. Affiliated - independent contractor not and employee).
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When a brokers affiliation with a firm is terminated, the brokers license must be
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Where a managing / designated broker allows someone else to operate a firm using their license in a designated capacity for a fee with no direct supervision. This is a violation of the license law.
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Fee broker
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be terminated at any time by either party.
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The relationship between a designated broker and an affiliated licensee may
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The designated broker is required to surrender the brokers license to the DOL with an explanation as to why the license was terminated.
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If a broker has been terminated because of conduct that would be grounds for disciplinary action under the licensing law.
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even if the licensee's activities were in violation of the brokers written policies.
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A designated broker may be liable for harm caused by the actions of an affiliated licensee
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The licensee should notify the DOL in writing.
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If a broker refuses to surrender the license of an affiliated licensee after termination of affiliation,
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office here.
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A firm licensed in Washington is generally required to have an
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own designated broker.
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A broker is not allowed to accept compensation from anyone other than his
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is a blind add, and is a violation of the law.
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A real estate advertisement that fails to include the name of the broker
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1. Is deceptively similar to that of another licensed real estate firm. 2. Creates the impression that the brokerage is a nonprofit organization. 3. Would tend to mislead the public.
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A real estate firm may not do business under a name that
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trust account in a Washington depository, and must keep records of their Washington transactions at a registered location, title company, or attorney in Washington.
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R.E. licensees who are actively licensed in another state as well as in Washington must maintain a
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main office, and the licenses of affiliated licensees must be displayed at the office where they work.
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When a firm has more than one office, the designated broker license must be displayed at the
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brokerage businesses are kept apart from the other businesses and records are completely separate.
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A firm may operate two businesses out of the same office if the
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only a particular subdivision or tract. This exception applies only if the subdivision is with in 35 miles of a licensed office.
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A separate license is not required for a branch office whose sales activity concerns
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1. Website: Each viewable page should include or link to (via a single click) a full disclosure. 2. Email, Newsgroups, discussion lists, bulletin boards: Each should include a full disclosure at the beginning or end of each message, except when the licensee is in communication with a member of the public and the licensee's initial communication contained a full disclosure. 3. Instant messages: Full disclosure is not necessary in this format if the licensee provided a full disclosure in another format before providing or offering to provide real estate services. 4. Chat: Full disclosure should be given before providing or offering to provide real estate services during the chat session, or it should appear in text visible on the same web page that contains the chat session if the licensee controls the web page that contains the chat session if the licensee controls the website hosting the chat session. Banner ads: Each ad should link to ( via a single click) a website that has a full disclosure, unless the banner ad itself has a disclosure.
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Five categories for commission guidelines on prospecting over the internet
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Fails to state brokers name.
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blind add
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Must not engage in real estate activities
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Inactive licensee
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All deposits of 10000 or less. accumulated Interest goes to the state treasurers. 75% goes to the Washington housing trust fund. 25% goes towards real estate education. Separate trust accounts may be used if over 10000 if necessary. In a separate account the interest is paid to the customer or client. The designated broker must inform the client or customer of these alternatives in writing.
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pooled trust account
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must be kept for at least three years, however Federal law requests transaction records to be on file for 5 years.
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transaction folder
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deposits more than 10000.
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separate account
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commingling and is a violation of the licensing law.
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A broker who places funds belonging to the broker into the brokers trust account is an example of
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from closing. Not the date of listing.
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Transaction records must be kept for at least 3 years after the date
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a separate ledger sheet for each client.
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Trust account records must include
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unless the split is handled by their designated broker(s).
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It is a violation of the licensing law for two brokers to split a commission
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the 1st banking day.
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Trust funds must be deposited into the brokers trust account no later than
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any documents they have they have signed at the time of signature.
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A real estate licensee is required to give clients and customers copies of any documents they have
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compensation from the seller. The licensee gets paid through the designated broker.
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A licensee who is representing the buyer in a transaction may not receive any
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The broker who first receives it, typically the selling agent.
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When there is more than one broker involved in a transaction, who is responsible for handling the earnest money deposit in accordance with the requirements of the licensing law
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1. The broker is a certified escrow agent. 2. The broker is also an attorney.
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A designated broker is allowed to charge a separate fee for the handling the close of a transaction if
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real estate licensing law.
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Any violation of the state federal anti discrimination law is also a violation of the
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receive a complete, detailed settlement at closing.
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The designated broker is responsible for insuring that the parties to every transaction
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in writing and must state the brokers compensation.
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A property management agreement between a designated broker and a property owner must be
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is required to keep a copy of the settlement statement in the brokers transaction folder.
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If someone other than the designated broker(such as a certified escrow agent) handles the closing for the transaction, the broker
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They are designated as the closing agent in the purchase & sale agreement.
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The license law allows a broker to close a transaction in which he or she is already representing the buyer or the seller ( or Both) if
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is grounds for disciplinary action under the license law.
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failing to give a seller a copy of the listing agreement after it is signed
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formal written complaint from an anonymous or member of the public.
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The DOL can investigate a licensee's conduct if it has received a
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the licensee does not attend the hearing.
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After the licensee has been notified, a disciplinary hearing can be held even if
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required to notify the DOL
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A licensee who is being prosecuted for drunk driving is
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$5000 for violation of the license law.
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A licensee can be fined up to
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an injunction (cease & assist)
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When the director of the DOL issues an order directing someone to stop certain conduct that violates the real estate license law, the order is called
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1. A fine up to $5000 per offense. 2. require the licensee to take classes for correct trust fund procedures.
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If the DOL suspends a licensee's licensee for failure to handle a clients trust fund properly, two other penalties could be imposed
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"In law, commingling is a breach of trust in which a fiduciary mixes funds that he holds in the care of a client with his own funds, making it difficult to determine which funds belong to the fiduciary and which belong to the client. This raises particular concerns where the funds are invested, and gains or losses from the investments must be allocated. In such circumstances, the law usually presumes that any gains run to the client and any losses run to the fiduciary who is guilty of commingling." ( From Wikipedia)
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commingling
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20 days after receiving the statement of charges. or he will be considered in default, and the director will make a decision on the facts available.
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If the director notifies the licensee of a violation of the license law, the licensee must request a hearing within
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30 days after notice of charges were originally sent on the licensee.
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Once the hearing has been requested by the licensee the director may select a date that must be at least
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30 days following the decision, and the licensee who files such an appeal is required to post a bond of $1000. to cover the court costs in the event the judge decides against the licensee.
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The deadline for filing an appeal of a disciplinary decision is
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the superior court.
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The appeal will be heard in
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Sherman Antitrust act." It prohibits certain business activities that federal government regulators deem to be anticompetitive, and requires the federal government to investigate and pursue trusts / large business." ( From Wikipedia)
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In 1890 an anti trust law was passed and is known as the
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1. Price fixing 2. Group Boycotts 3. Tie-in arrangements (such as a list-back agreement) 4. Market Allocation
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The four main categories of activities that are prohibited by the antitrust laws are
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1. A professional real estate association publishes a list of the average commission rates charged by its members. 2. A broker has the commission rate preprinted on his or her listing agreement forms.
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Two examples of antitrust law violations are
