Realty Unit 1-10

Cheryl, the aggrieved claimant on a complaint against a licensee, has just won her claim. She demonstrated that the licensee was responsible for her losing $60,000. She also paid for a lawyer, which was another $5,000. With other fees and incidentals, her total damages are $67,000. What is the amount she'll receive?

$25,000 Any one claimant can claim as much as $50,000, but the limit for damages rewarded for any one transaction is $25,000. If Cheryl wants to claim $50,000, she'll need to file at least two complaints and have both judgments go her way.

What are the steps to get a license transferred to a new broker?

-provide written notice to the commission (AREC) -give a copy of this notice to your current broker -the new broker must file a request for your license with AREC -pay AREC $25 -AREC issues you a new license that will expire at the same date as the old one

How many days do licensees have to request a hearing after AREC issues them a violation notice?

15

How many hours of continuing education does Alabama require?

15 hours of CE every 2 years (even numbered years) (post license coursework is 30, continuing education each year to renew is 15)

Those with temporary licensure must complete ____ hours of post-licensing education within ______ months to obtain an original license.

30 six

_________ members of AREC must have lived in Alabama and have been licensed in real estate for at least _____ years prior to appointment.

7 10

There are _____ total members on the board of the AREC (Alabama Real Estate Commission). All members serve _____-year terms. Typically, no member may serve for more than ____ consecutive terms.

9 5 2

Is licensing governed by laws or regulations?

A combination of both

Bob wants to reinstate his license. Which license status must he have to ask the commission to reinstate? A) Expired B) Inactive C) Revoked D) Suspended

A) Expired If Bob is otherwise still eligible for licensure, he can request that the commission reinstate his expired license after he completes 15 hours of CE.

Millie is a buyer who has given her agent an earnest money check for $10,000 with an offer to purchase. When will the check be deposited?

After the seller accepts the purchase offer Earnest money funds are typically deposited after the seller accepts the buyer's offer.

AREC stands for?

Alabama Real Estate Commission

Amy works under the supervision of Corinne at Rolling Hills Realty. Which of the following must be true?

Amy could be either a salesperson or a broker Only brokers can supervise others, but brokers can work independently, or they can be supervised by someone else. Since Amy is working under supervision, she can either be a salesperson or a broker.

If licensees don't receive a renewal form, they must notify the commission by _____________. Licensees must renew by ____________ to avoid paying a late renewal penalty.

August 10 August 31

Which license types must be renewed every two years? Select all that apply -Broker license -Temporary broker license -Salesperson license -License obtained through reciprocity -Temporary salesperson license

Broker license Salesperson license License obtained through reciprocity

Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed?

Commingling and conversion Jill is guilty of commingling and conversion. She commingled when she mixed the funds with her own, and then she converted the funds when she used them to pay the web developer.

_____________ are those established to ensure that the licensed professionals in a state treat consumers (including their customers and clients) with fairness. These laws (and their associated rules) are designed to protect consumers from unfair or unethical business practices, fraud, misrepresentation, and more. In real estate, the state real estate commission or department is often charged with one primary duty: ensuring that the professionals it licenses have the appropriate degree of professionalism, education, and training, as well as strong moral character, and a history free of moral turpitude and/or felonies, before those professionals are granted their real estate licenses.

Consumer protection laws

(T/F)Real estate professionals are licensed at the federal level.

F Licensing is at the state level

Your client submits an application to rent a condo unit. He has excellent credit and been in the same job for a long time. He uses a cane to help him with mobility. When his application is rejected, he feels it's due to his disability. He is protected under ______.

Fair Housing Amendments Act of 1988

_______________ covers the forms of ownership and tenancy in real property, and its distinction from personal property within the common law legal system. It also covers the rights of ownership and tenancy and the government's rights and authority under eminent domain and various police powers.

General Property Law

Related to reasonable accommodation of being allowed to have an assistance animal, what can the landlord not ask about?

If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.

Things really start rolling in mid-June of renewal years. Licensees may renew online starting ____________.

June 15

_____________ are those that—not surprisingly—address the landlord-tenant relationship. They establish everything from the duties and responsibilities of each party to the state laws for handling lease agreements to fair housing considerations for tenants and other tenants' rights issues.

Landlord-tenant laws

_____________ is all about your role relating to your clients. Agency law covers how an agency relationship is created, and the duties of an agent to the principal.

Law of agency

Do License Laws affect commission maximums?

No

Brenda is an Alabama broker who lives in the bustling city of Birmingham. Even though it's a short distance, her commute in the city is more than an hour door-to-door, and she'd like to work from a home office. According to Alabama license law, can she do this?

No Only brokers who live in rural areas are allowed to work from a home office. Since Brenda lives in the city, she must maintain an office in the city. The real estate commission does consider hardship cases on a case-by-case basis, though.

Daisy got her Alabama reciprocal real estate license nine months ago and provided her licensing history to the commission. Is she required to complete continuing education?

No Daisy doesn't need to complete CE requirements if she provides documentation to the commission that the license she earned in her home state is in good standing.

What is the primary purpose of license laws?

Protect consumers from unprofessional practices

What discriminatory lending practice by lenders resulted in the destruction of whole neighborhoods, with perfectly good housing left abandoned?

Redlining Different from block busting as this is a discriminatory "LENDING" practice

______________(laws that) relate to the requirements of a licensee when performing real estate activities within the state. License law, continuing education requirements, supervisory requirements, and prohibited conduct are all covered by license law.

State-specific license laws

(T/F)License laws often prescribe a standard of conduct for licensees.

T

(T/F)License laws protect the rights of buyers, sellers, tenants, and property owners.

T

________________ governs the use of contracts, and the required elements to make a contract valid. It also covers what happens in the case of a breach of contract, and how contracts may be terminated. You'll often see court cases cited in a discussion of contract law because the courts are used to determine contract validity, legality and enforceability. An important point to remember about contracts: You are not an attorney and may not legally draft a contract. Your role as a licensee is limited to the use of legally approved forms and standard clauses. You'll learn all about that later.

The law of contracts

What three courses make up the 15 hour CE (continuing education) requirement for salespersons in alabama?

Three hours of Level 1—Risk Management: Avoiding Violations Three hours of Level 2— Risk Management for Salespersons Nine hours—Commission-approved courses

Which of these professionals' type of activity is NOT covered by the Fair Housing Act? Jonah's real estate firm provides single-agency brokerage services to clients. Marsha, a landlord, owns several multi-unit buildings and rents one or more units daily. Michael is in charge of marketing for his real estate brokerage firm. Vickie's staging company works with investor clients to stage vacant properties.

Vickie The federal Fair Housing Act doesn't impact third-party providers who don't engage in real estate, financing, or appraisal services, though other anti-discrimination laws prevent businesses from discriminating.

Does each state have its own licensing authority?

Yes

A license suspension or revocation may require ______________ and/or any necessary restitution be made to trust accounts.

a continuing education course

Generally, activities performed for others, for ____________, require a real estate license.

a fee This can include listing or offering to list real estate for sale, selling or offering to sell real estate, and purchasing or offering to purchase real estate.

License laws ensure professionalism by establishing: (3)

basic requirements licensable activities conduct standards.

If an individual or entity is accused of practicing real estate without a license, the commission can impose a _________ and levy fines. If the accused does not request a hearing, the order becomes final ______ days after it's served.

cease-and-desist order 15

The commission comprises nine major departments, four of which have a direct impact on licensees, those departments are?

education legal investigations licensing

"On another's behalf, ______________" is a key concept here. If a real estate transaction fits that mold, you likely need a license to provide services for it.

for compensation

Real estate law covers what main four areas of law?

general property law State-specific laws law of agency law of contracts

A ___________ begins as legislation proposed by and voted into effect by a state legislature; also called a statute.

law

Aside from some exceptions for temporary license holders, all active real estate licenses in Alabama expire at ____________________________________. Licenses that aren't renewed by the deadline are placed on inactive status on October 1.

midnight on September 30 of even-numbered years

A _______________ is standard or rule adopted by a government agency, such as a state department of commerce or the Environmental Protection Agency

regulation

Who issues alabama broker and salesperson licenses and has the authority to renew, suspend or revoke said licenses?

the AREC ( Alabama Real Estate Commission)

The chief purpose of license laws is to ensure _____________.

the rights of consumers.

The commission may request additional information depending upon the applicant's circumstances. Applicants whose applications have been rejected or who have had a license revoked in another state are ineligible for licensure in Alabama for ______ years, unless the commission waives that decision.

two