Real estate Winner
Lisa knows that Alabama law requires every real estate license that has expired to be renewed during the
12-month period following the license period for which the license was current.
All individual licensees are required to complete _____ hours of CE every two years?
15
Associate broker
A licensee who has passed the broker exam but does not act as the qualifying broker of a brokerage and is not responsible for the actions of other licensees.
Commissioner
A member of the Commission.
What compensates members of the public for the misconduct of licensees practicing real estate?
Recovery Fund
when an individual applies for an active temporary license, he is required to pay a onetime
$30 fee to the Recovery Fund.
Place of business rule A
(a.) A licensed broker living in a rural area of this state who operates from his or her home, provided that he or she sets up and maintains an office for the conduct of the real estate business, which shall not be used for living purposes or occupancy other than the conduct of the real estate business. The office shall be used by the broker only and not as a place of business from which any additional licensee operates under his or her license. The office shall have a separate business telephone, separate entrance, and be properly identified as a real estate office.
In Alabama, an expired license may be renewed during the?
12 months following the period for which the license was current
Place of Business rule B
(b.) All licensees located within the city limits or police jurisdiction of a municipality shall operate from a separate office located in the city limits or police jurisdiction. The office shall have a business telephone, meet all other regulations of the Real Estate Commission, and be properly identified as a real estate office. Hardship cases may be subject to waiver of this regulation upon application and approval by the commission
place of business rule C
(c.) All business records and files shall be kept at the place of business as required by law or Real Estate Commission rules.
Post-License Course Rules
-All salesperson licensees must complete the 30-hour post-license course within the first year of licensure. -To maintain an active license, a licensee must complete the course and be issued an original (permanent) license within the first six months of licensure.
There are certain situations in which a licensee is exempt from the biannual 15-hour CE requirement:
-If she has completed the 30-hour post-license course within a renewal period -If she has completed the 60-hour broker prelicense course within a renewal period -If she served in the state legislature while licensed.
Prelicense Course Rules
-The 60-hour prelicense course must be completed within one year. -Students must pass the prelicense exam within six months of the date of prelicense course completion.
A salesperson or associate broker is allowed to change his qualifying broker by taking the following steps:
-The licensee must give notice in writing to the Commission. He must also send a copy of the notice to his current qualifying broker. -The new qualifying broker must file with the Commission a request for the transfer and a statement assuming liability for the licensee. -The licensee must pay $25 for the Commission to issue a new license certificate for the unexpired term of the original license.
A licensee must notify the Commission in writing by certified mail within how many days of receiving notice that a criminal prosecution against her has begun?
10
How soon must a licensee notify the Commission after he receives notice of a civil complaint against him regarding the goodwill of an existing real estate business?
10
A licensee must notify the Commission within____in writing by certified mail after he receives notice of any criminal prosecution or civil summons and complaint starting against him.
10 days
f residing outside of the state, a licensee must notify the Commission in writing of any change in their personal residence address within
10 days
How many hours of Commission-approved continuing education elective courses are required during each renewal period?
12
Remember that all salesperson licensees must complete the ?
30-hour post-license course within the first year of licensure. To maintain an active license, a licensee must complete the course and be issued an original (permanent) license within the first six months of licensure.
A salesperson may only accept a commission from A his qualifying broker. B his clients. C his customers. D his associate broker.
A
Which of the following is a violation of Alabama real estate license law? A Acting for more than one party in a transaction without the knowledge and consent in writing of all parties B Not presenting the Consumer Information Booklet to a consumer C Failing to keep a record of a client's funds for a minimum of five years D Accepting valuable consideration from one's own qualifying broker
A
Which of the following is considered acceptable subject matter for continuing education courses? A Real estate ethics B Motivational training C Social media advertising D Real estate photography
A
Which of the following is true of a qualifying broker? A She has supervisory responsibility for her affiliated licensees. B She has an employee-employer relationship with her affiliated licensees. C She does not need to supervise her licensees but must be their qualifying broker in name and on paper. D Licensees do not need to be affiliated with a qualifying broker
A
Which of the following is true of a qualifying broker? A She has supervisory responsibility for her affiliated licensees. B She has an employee-employer relationship with her affiliated licensees. C She does not need to supervise her licensees but must be their qualifying broker in name and on paper. D Licensees do not need to be affiliated with a qualifying broker.
A
Qualifying broker
A broker under whom a sole proprietorship or other business organization is licensed, or a broker licensed as a company to do business as a sole proprietorship, who is responsible for supervising the acts of the company and all real estate licensees licensed with the company.
Inactive license
A license that is being held by the Commission, not by a qualifying broker. Any licensee with an inactive license may not practice real estate.
The Research and Education fee goes to support?
ACRE, the Alabama Center for Real Estate.
The following acts are considered violations of Alabama license law:
Acting negligently or incompetently in performing an act for which a person is required to hold a real estate license. (A licensee has an obligation to exhibit reasonable care and diligence when carrying out her duties.) Failing or refusing on demand to produce a document, book, or record in his or her possession concerning a real estate transaction conducted by him or her for inspection by the Alabama Real Estate Commission or its authorized personnel or representative. Failing within a reasonable time to provide information requested by the commission during an investigation or after a formal complaint has been filed. (A licensee is always obligated to respond to a request for documents and other information when the Commission is conducting an inspection, investigating, or responding to a complaint.) Failing without cause to surrender to the rightful owner, on demand, a document or instrument coming into his or her possession. (Earlier, you learned that a licensee must deliver a copy of any signed real estate transaction document to the signing parties. A licensee must also turn over any documents he receives that belong to others.) If a qualifying broker or company, failing to keep in their files copies of all contracts, leases, listings, and other records pertinent to real estate transactions for a period of three years. (Other documents that need to be retained include offers, closing statements, agency agreements, agency disclosure documents, property disclosure forms, correspondence, and notes.)
Licensee
An individual who holds a real estate license, including either a salesperson or broker license.
If for any reason a licensee fails to receive a renewal form, it is the licensee's responsibility to notify the Commission by
August 10 of the renewal period.
The deadline for renewing a license without penalty is
August 31 of even-numbered years. When renewing a license after that date, a licensee must pay a late fee of $150.
A qualifying broker has a great deal of supervisory responsibility for her licensees, and A she has an employer-employee relationship with them. B she does NOT have an employer-employee relationship with them. C she must always be present wherever her employees are working. this relationship creates a common law employment situation.
B
The Commission begins a disciplinary action against an accused licensee by serving him with a A subpoena. B formal complaint. C certified letter. D letter of reprimand.
B
A licensee may accept a commission for real estate activity from a(n) A engaged broker. B approved supervising broker. C qualifying broker. D client.
C
The qualifying broker is responsible to the
Commission and to the public for the actions of the salespersons and associate brokers licensed under her.
The following acts are considered violations of Alabama license law:
Conduct which constitutes or demonstrates dishonest dealings, bad faith, or untrustworthiness. (This provision gives the Commission the broad authority to address any conduct that could harm the public.) Establishing an association, by employment or otherwise, with an unlicensed person who is expected or required to act as a licensee, or aiding, abetting, or conspiring with a person to circumvent the requirements of this chapter. Failing to voluntarily furnish a copy of each listing, contract, lease, and other document to each party executing the document with reasonable promptness. (A licensee must promptly deliver a copy of any signed real estate transaction document to the signing parties.) Engaging in misrepresentation or dishonest or fraudulent acts when selling, buying, trading, or renting real property of his or her own or of a spouse or child or parent. (A license must be honest with all parties in transactions involving her own property or property owned by her spouse, child, or parent.) Making a material misrepresentation, or failing to disclose to a potential purchaser or lessee any latent structural defect or any other defect known to the licensee. Latent structural defects and other defects do not refer to trivial or insignificant defects but refer to those defects that would be a significant factor to a reasonable and prudent person in making a decision to purchase or lease. (Specifically, a licensee must voluntarily disclose to a buyer any defect that might pose an immediate health or safety risk.)
CE Is short for-
Continuing education
Engage
Contractual relationships between a qualifying broker and an associate broker or salesperson licensed under him or her whether the relationship is employer-employee, independent contractor, or otherwise.
Before placing a for-sale sign on any property, a licensee must obtain A the consent of his qualifying broker. B the necessary financial data. C an offer to purchase. D the consent of the owner.
D
Which of the following people is committing a license law violation? Salesperson A Mike is working as a listing agent. He tells the owner that he is thinking of buying the house himself. B Broker Phoenix frequently enjoys smoking marijuana after she gets home from work. C Broker Imani is working as a listing agent. She tells a potential buyer about a recently discovered flaw in the foundation of a home for sale. D Salesperson Alyssa is working as a listing agent. She has an agreement with the owner that she will receive any excess over $150,000 from the sale.
D
What is the effective date of a license transfer, provided the licensee has submitted all necessary forms and fees?
Date of mailing
The following acts are considered violations of Alabama license law:
Failing to notify the Commission within 30 days in writing of a change of business address. When notifying the Commission, the licensee must include both the old and new addresses of the company. This completes the long list of possible violations for which a licensee in Alabama could be found guilty and face disciplinary action.
FSBO
For Sale By Owner
The following acts are considered violations of Alabama license law:
Having entered a plea of guilty or nolo contendere to, or having been found guilty of or convicted of a felony or a crime involving moral turpitude. (While not every crime a licensee commits would result in administrative discipline, the Commission will seriously consider whether someone who has committed a felony or any crime involving moral turpitude is trustworthy enough to hold a real estate license and work with the public.) Having a final money judgment rendered against him or her which results from an act or omission occurring in the pursuit of his or her real estate business or involves the goodwill of an existing real estate business. Offering free lots or conducting lotteries for the purpose of influencing a party to purchase or lease real estate. Failing to include a fixed date of expiration in a written listing agreement or failing to leave a copy of the agreement with the principal. (Note: According to rule 790-X-3-.05, listing contracts may not contain a provision for an automatic extension.) Placing a sign on any property offering it for sale, lease, or rent without the consent of the owner.
Each license certificate must be:
Kept by the qualifying broker. Publicly displayed at the brokerage's address.
A real estate licensee found guilty of receiving which of the following from any party in a real estate transaction will face disciplinary action?
Rebate
When an aggrieved person decides to begin an action for a judgment that may result in collection from the Recovery Fund, the aggrieved person must:
Notify the Commission in writing that she is commencing an action. Send the notification by certified mail with return receipt requested.
Which of the following is NOT required to change a salesperson's qualifying broker?
Paying a $25 transfer fee to the original qualifying broker
the Commission mails a renewal form to the licensee's place of business (brokerage), if she is an active licensee, or to her residence, if she is an inactive licensee.
Prior to August 1 in a renewal year
The following acts are considered violations of Alabama license law:
Procuring or attempting to procure, a license, for himself or herself or another, by fraud, misrepresentation, or deceit, or by making a material misstatement of fact in an application for a license. (If the Commission learns that a licensee lied or misrepresented facts when applying for her license—or renewing her license—she could be subject to sanctions.) Making any false promises likely to influence, persuade, or induce any person to enter into any contract or agreement. (A licensee must be honest about his abilities and authority as it relates to his brokerage activities and never make promises he cannot personally keep. He should never promise a seller, for example, that he'll sell a house in a week for more than the listing price just to entice that seller to sign a listing agreement.) Pursuing a continued and flagrant course of misrepresentation or the making of false promises through agents or salespersons or any medium of advertising or otherwise. (An ongoing pattern of misrepresentation and a string of false promises could certainly land a licensee in some hot water, subject to disciplinary action from the Commission. And even a single instance of misrepresentation in an advertisement would be grounds for sanctions.)
The following acts are considered violations of Alabama license law:
Publishing or causing to be published any advertisement which deceives or which is likely to deceive the public, or which in any manner tends to create a misleading impression or which fails to identify the person causing the advertisement to be placed as a licensed broker or salesperson. (A blind ad is one in which a broker attempts to advertise a property for sale without disclosing the fact that she is a licensed real estate broker, or when a broker attempts to mislead the public into believing a property is for sale by owner, or FSBO, by not including the brokerage company name.) Acting for more than one party in a transaction without the knowledge and consent in writing of all parties for whom he or she acts. (Dual agency requires the informed, written consent of both parties.) Failing, within a reasonable time, to properly account for or remit money coming into his or her possession which belongs to others, or commingling money belonging to others with his or her own funds. (Money belonging to others received by a licensee in a real estate transaction is referred to as trust money. Licensees who accept trust money must follow proper procedures for holding and disbursing these funds. Commingling of funds is prohibited. Commingling refers to maintaining funds belonging to others in the same bank account that contains the licensee's personal or business funds.) Failing to deposit and account for at all times all funds belonging to, or being held for others, in a separate federally insured account or accounts in a financial institution located in Alabama. Failing to keep for at least three years a complete record of funds belonging to others showing to whom the money belongs, date deposited, date of withdrawal, and other pertinent information.
What is the final deadline for renewing a real estate license?
September 30 of each even-numbered year
Every real estate license expires at midnight on
September 30 of each even-numbered year.
The final deadline for completing the required 15 hours of continuing education is
September 30th of even-numbered years. *If a licensee does not meet this deadline, his active license will be placed on inactive status the following October 1.
Furnish
Supply
The Recovery Fund paid an aggrieved party $10,000 on behalf of broker Leah. She repaid the Commission $5,000 but has since filed bankruptcy. She must still pay the remaining balance plus interest to the Commission. T or F
T
Commission
The Alabama Real Estate Commission, except where context requires that it means the fee paid to a broker or salesperson.
According to Alabama law, a licensee may request that the Commission place his license on inactive status. The following rules apply to a situation of this nature:
The Commission holds inactive licenses at its office until (re)activation. A licensee may not practice real estate while holding an inactive license.
Who determines the amount to be paid by the Recovery Fund to an aggrieved party?
The court
License period
The two-year period that licenses are valid. The licensing period begins on October 1 of even-numbered years and runs for two years. The license period ends on September 30. All licenses must be renewed by the end of the two-year license period in even-numbered years
A licensee can face disciplinary action if he does not keep a complete record of funds belonging to others for a minimum of how many years?
Three
What continuing education course is required for all individual licensees?
Three hours of Risk Management
The fund is not liable for any judgment or settlement resulting from the acts of a licensee in conjunction with what type of project?
Timeshare
If residing inside the state
a licensee must notify the Commission in writing of any change in their personal residence address within 30 days.
licensees cannot take the 30-hour post-license course until they have received either their
active or inactive temporary salesperson license.
Since Lisa did not renew her license within the allotted 12-month period, she will
again be subject to all requirements applicable to anyone who has never been licensed. *The Commission can renew Lisa's license if it makes a determination of hardship, in which case Lisa must still pay all fees and penalties.
The licensee must repay to the Commission
any amount paid from the fund on her behalf plus interest at the rate of 12% per year.
The Commission charges a $25 fee for changing a
company's qualifying broker.
If an individual applies for an inactive temporary license, then the Commission
does not collect the $30 Recovery Fund fee.
Filing bankruptcy
does not relieve a licensee from having to repay the Commission.
If the Recovery Fund's balance drops below $500,000, then the Commission will charge
each active broker or salesperson another $30 fee to bolster the balance.
abetting
encourage or assist (someone) to do something wrong, in particular, to commit a crime or other offense. "he was not guilty of murder but was guilty of aiding and abetting others"
circumvent
find a way around (an obstacle). - bypass
discretion
good judgement/ choice
In Alabama, if a salesperson is issued a broker license
his salesperson license automatically terminates upon the issuance of the new license certificate
If the Commission has revoked the licensee's license,
it may refuse to issue a new license to her until she has repaid in full. Filing bankruptcy does not relieve a licensee from having to repay the Commission.
latent
of a quality or state) existing but not yet developed or manifest; hidden or concealed. -future
A "net listing" is
one that stipulates a net price to be received by the owner with the excess due to be received by the broker as his or her commission.
A licensee may accept a commission for real estate activity from a(n)
qualifying broker
A qualifying broker has a great deal of supervisory responsibility for her licensees, and
she does NOT have an employer-employee relationship with them.
company license includes
the name of the qualifying broker and the physical business address of the company.
If the Commission makes such a determination?
then the individual in question may be allowed a later renewal
subpoena (/səˈpiː.nə/;[1]
witness summons is a writ issued by a government agency, most often a court, to compel testimony by a witness or production of evidence under a penalty for failure. There are two common types of subpoenas: subpoena ad testificandum orders a person to testify before the ordering authority or face punishment. The subpoena can also request the testimony to be given by phone or in person. subpoena duces tecum orders a person or organization to bring physical evidence before the ordering authority or face punishment. This is often used for requests to mail copies of documents to requesting party or directly to court.