Unit 11: Review

Each licensee can choose courses in his or her area of expertise, as long as The education courses are approved by _______________ At least 2 hours of an education course per calendar year involve _____,___________, and ______________ regarding real estate

the department law, rules, and court cases

In addition to meeting Michigan 's education, exam and experience qualifications, brokers must Maintain a physical location in Michigan from which to __________________________. Keep their ______________________ at the Michigan location

transact their business books and records

During calendar year 2007 and thereafter, a licensee shall complete at least __________ hours per calendar year of the required 18 hours of continuing education courses.

two (2)

Members cannot serve more than _________ consecutive terms.

two (2)

The suspension or revocation of a broker's license will/will not also terminate any branch office licenses held by the broker.

will

Real Estate Education Fund The Department will deposit fifteen dollars ($15) of each license fee into this fund. The money will be used only for ______________________________________________.

the operation of programs related to the educational requirements of all licensees or license applicants

The broker prelicense education must have been completed not more than __________ months before the date of application, unless the applicant has held a salesperson license for that intervening period.

thirty-six (36)

A broker applicant must have the equivalent of ___________ years of full-time experience as a real estate salesperson or in a field that is determined by the Department to be relevant and related to real estate.

three (3)

Prior to November 1, 2003, Michigan real estate licenses were valid for one year. Starting on November 1, 2003, an amendment to the Occupational Code, specifically Section 2502A, revised licenses to a ______ year term.

three (3)

The governor has the right to remove a member of the Board in accordance with Section ___ of Article __ of the state constitution.

10, V

A student must attend _________ of a course to obtain credit for it. Credit for a distance education course requires completion of the entire course. A school or instructor must have a makeup policy for students who are absent or late.

100%

The salesperson exam consists of ____ questions, ___ relating to Michigan law and ___ general real estate questions.

110, 30, 80

Beginning November 1, 2003, a licensee shall complete not less than ____ hours of continuing education per 3-year license cycle.

18

Each member must be at least ___ years old.

18

A branch office which is located more than ____________________ in which the broker maintains his or her main office must be under the personal, direct supervision of an associate broker.

25 miles from the city limits

A person whose license has been revoked cannot apply for a new license for at least ______ after the service of the final order.

3 years

Upon receipt of the above items, the Department will consider the pocket card proper evidence of licensing for ___ days from the latest date written on the back of the card.

45

If a real estate salesperson or associate broker is fired or quits by giving the broker written notice, the broker has ___ days in which to deliver or mail the wall license to the Department.

5

_____ members must be real estate licensees. ______ members must be from the general public.

6, 3

Scoring is done on a pass/fail basis with a ____ passing score and ____ raw passing score.

70%, 77%

The Board consists of ______ voting members.

9

Renewal notices are mailed in July and August, approximately ____ days prior to the October 31 expiration.

90

There is only one type of associate broker's license. However, there are two categories of responsibility within an associate broker license:

A principal associate broker A nonprincipal associate broker

A salesperson or nonprincipal associate broker who wishes to transfer or change brokers must submit to the Department:

A signed statement that he or she has obtained the dated signature and license number of his or her new broker on the reverse side of the pocket card The completed application for transfer to a new broker, the proper fees and the old license

Unlicensed assistants MAY perform the following tasks.

Accompany licensees during the holding of an open house and perform the following functions as a "host" or "hostess." Open the door and greet prospects as they arrive at the open house. Hand out or distribute prepared printed material. Have prospects sign a register (guest book) to record names, addresses and phone numbers for the listing. Accompany prospects through the home for security purposes. Perform strictly clerical tasks. Function as a courier in picking up or delivering documents on behalf of the employing licensee.

Real Estate Enforcement Fund The Department will deposit fifteen dollars ($15) of each license fee into this fund. The money will be used only for the enforcement of ______________ and to reimburse the attorney general for expenses incurred in ____________________.

Article 25, conducting prosecutions of unlicensed practices

A broker can "employ" a salesperson in one of two ways.

As an "employee" with the federal and state tax requirements that apply As an "independent contractor"

These persons also do not need a license. Any person rendering services as a(an): (10)

Attorney at law Receiver Trustee in bankruptcy Administrator Executor Person selling real estate under a court order Trustee selling under a deed of trust Any person who is licensed under the Mortgage Brokers, Lenders and Servicers Licensing Act and who does not perform any other act requiring a license as a real estate broker, associate broker or real estate salesperson. Any person not engaged in the sale of real estate as a "principal vocation." An existing tenant of a rental property accepting a fee of one-half month's rent or less for the referral of a prospective tenant.

In order to apply for a license in Michigan, an individual must: (3)

Be at least 18 years old Be of good moral character Have successfully completed the appropriate education and exam requirements

The following licenses are available in Michigan. (4)

Broker Associate Broker Salesperson Branch Office

All advertisements to buy, sell, exchange, rent, lease or mortgage real estate or business opportunities by a broker must include the

Broker's name as licensed Telephone number or street address

A real estate school, sponsor or educational institution must apply for and obtain approval from the ___________ for real estate education courses before the courses are offered to the public.

Department

Any person denied a license may petition the _____________ for a review.

Department

Licensing duties are divided between the _____________ and the Board.

Department

The ______________________ consists of a director as its executive head and other officers and employees appointed or employed by the department.

Department of Licensing and Regulatory Affairs

The Occupational Code authorizes the ______________________________ to administer this law.

Department of Licensing and Regulatory Affairs (LARA)

A broker or associate broker must supervise the work of a licensee. Supervision includes, at a minimum, all of the following: _____________________ in person or by radio, telephone or electronic communication on a regular basis ______________ of the practice of the supervised licensee Review of the supervised licensee's ____________ ____________________ of the licensee's performance in regulated activities Provision of written operating ___________________

Direct communication Review reports Analyses and guidance policies and procedures

Many brokers and salespersons in Michigan hire unlicensed personal assistants as support for their activities. These unlicensed assistants MAY NOT perform the following tasks.

Independently show or demonstrate property to prospective buyers Make cold calls by telephone or in person to potential listers, purchasers, tenants or landlords Answer any questions on title insurance, financing or closings Independently hold open houses for brokers, or staff booths in home shows or fairs Solicit business through telephone prospecting Give additional information not included in prepared written promotional material that has been distributed to the public (e.g., newspaper ads, flyers, brochures) Represent themselves as an agent for a real estate broker or the owner/seller of property Have their name printed on business cards or stationery that would imply they are an agent for the real estate broker Conduct telephone solicitation calls. Perform any of the acts for which a license is required under Michigan Real Estate License Law. (339.2501)

The Department will deliver or mail to the employing broker the wall license and pocket card of any real estate salesperson or associate broker employed by the broker. He or she will

Keep the wall license in his or her custody and control. Give the pocket card to the licensee to carry when conducting real estate activities.

Related experience could be as any of the following: (6)

Licensed builder Land developer Investor Loan or trust officer of a bank Attorney Appraiser

It is the role of the _______________________________ to assist the Department in the implementation of the Code.

Michigan Board of Real Estate Brokers and Salespersons

The following persons do not need to have a real estate license. __________________ who sell what they have built - up to a quadruplex - that has never been occupied __________________________ selling his or her own property _________________________ leasing his or her own property Any______________, ________________, or _____________ selling their own property ______________________ acting under a legal power of attorney An ________________ who auctions real property to determine its price, provided that the closing of the sale is handled by a licensed Michigan real estate broker or an attorney

Michigan-licensed builders An individual owner An individual lessor partnership, association, or corporation Attorneys-in-fact auctioneer

Anyone performing these activities also requires a license.

Negotiates for the construction of a building on real estate Leases, rents or offers to lease or rent real estate Engages in property management Negotiates the purchase, sale or exchange of a business, business opportunity, or the goodwill of an existing business for others Engages in the sale of real estate as a principal vocation

A candidate who fails the exam may retake the exam by submitting a new registration form and fee to AMP. Is there a limit to the number of times an applicant my take the exam?

No

An "independent contractor" meets the following criteria:

No federal or state income taxes are paid by the broker At least 75% of the annual compensation paid by the broker to the salesperson is from commissions from the sale of real estate

What is the limit to the number of licensees that can be employed at a branch office? What is the limit of the number of branch offices.

None/None

When a broker mails the license to the Department, he or she must

Notify the licensee in writing of that fact by sending notice to the licensee's last known address. Send a copy of the notice mailed to the licensee to the Department with the license.

Public Act 299 of 1980, known as the _________________ , regulates the licensing of various occupations in Michigan.

Occupational Code

Real estate brokers and real estate salespersons are required to renew their licenses by _____________________ the year they expire.

October 31

A license may be renewed between November 1 and December 30 (60-day late renewal period) by doing all of the following: (3 things)

Paying the regular renewal fee Paying a late renewal fee Completing continuing education (if not already completed)

Michigan Law provides for two funds related to license fees.

Real Estate Education Fund Real Estate Enforcement Fund

Approved courses for salesperson and broker license applicants may be on the following topics:

Real estate license law and related regulatory laws Real property law, including property interests and restrictions Federal, state and local tax laws affecting real property Conveyances, including contracts, deeds and leases Financing, including mortgages, land contracts, foreclosure and limits on lending procedures and interest rates Appraisal of real property Design and construction Marketing, exchanging and counseling The law of agency Sales and office management, including listing and selling techniques Real estate securities and syndications Investments, including property management

Any person or entity performing the following activities with intent to collect or receive a fee, compensation or valuable consideration must have a real estate license. This includes:

Sells or offers to sell property Buys or offers to buy property Provides or offers to provide a market analysis Lists, offers or attempts to list properties Negotiates the purchase, sale, exchange or mortgage of real estate

Members are appointed by the governor with the advice and consent of the _________________.

Senate

Any individual whose license has been lapsed for more than three years must complete one of the following education requirements. ___________ hours of continuing education for every year the license was lapsed _____ hours of approved prelicensure education for broker licensees or ______ hours of approved prelicensure education for salesperson licensees The applicable broker or salesperson ________________

Six (6) 90 clock, 40 clock license exam

An applicant for renewal of a license may continue to operate as previously licensed, using the expired wall license and pocket card as evidence of proper licensing, if the applicant has met both of the following conditions by the October 31 expiration date:

Submitted a complete application for renewal and the required fee Completed the required continuing education

Effective November 10, 2003, an individual whose license has been lapsed for less than 3 years from the expiration date of the last license may be granted relicensure by doing the following: (3 things)

Submitting the appropriate application form Paying the appropriate fees Completing 6 approved clock hours of continuing education for each of the years the license was lapsed.

A salesperson can work for only one broker at a time and is prohibited from accepting commission or valuable consideration for any real estate activity from anyone other than his or her employing broker. T/F?

True

Any unexpended balance in either of these funds at the end of a fiscal year will carry forward to the next fiscal year. T/F?

True

New licenses will be issued without any additional charges, if each license is issued during the same term in which the original license was issued. T/F

True

Salespersons have no previous experience requirement. T/F?

True

The requirements for obtaining a broker or associate broker license are the same. T/F

True

When a broker's license is suspended or revoked, the licenses of all salespersons and associate brokers employed by the broker will automatically be suspended, pending _______________________________________.

a change of employer and the issuance of a new license

Articles 1- 6 of the code deal with general rules applying to _______________ in Michigan. Article 25 created the Michigan Board of Real Estate Brokers and Salespersons to regulate real estate brokers and salespersons. Article 25 contains the rules governing __________________________.

all license categories, real estate practices in Michigan

A broker's license may be issued to: (6)

an individual, sole proprietorship, partnership, association, common law trust or a combination of those entities.

Nonresident salesperson or associate broker applicants must: Meet the same education, exam and experience qualifications as ______________________ File a ____________________ form along with their application which stipulates that suits may be brought against the nonresident in the state of Michigan

any Michigan applicant, Consent to Service of Process

When making an appointment, the governor can seek nominations from a wide range of interested groups and persons, including ___________________________________________________.

appropriate professional associations, consumer associations, labor unions and other organizations or individuals.

If a real estate broker maintains more than one place of business within the state, the broker must have a ______________ license for each branch office he or she maintains.

branch office

However, the individual may not legally practice until the license and pocket card have been received by the ____________.

broker

Proof of education must be in the form of __________, ______________, or _______________ from the course provider. The 90 hours is in addition to any hours required to obtain a salesperson license.

completion certificates, transcripts or other official verification

The Department will accept courses for approval which Have met the Department's criteria for _______________________________ Are taught by instructors who have met the criteria for ________________

course content and number of clock hours instructors

The broker must conspicuously display his or her own broker's license and the license of __________ employed by the business.

each real estate salesperson

Any licensee who is on active duty in the armed forces of the United States in an area designated as a combat zone is _____________________ from the renewal license fee, continuing education requirements and any other related requirements.

temporarily exempt

The Department reserves the right to deny a license under certain circumstances. A broker's license will not be issued to a new applicant who has been convicted of _____________ or ________________ of funds. Applicants who have been convicted of any crime involving ______________, such as forgery, extortion, theft, conspiracy to defraud or a similar offense, might have a hard time proving good moral character. An applicant who makes a ______________ of a material fact on an application can be denied a license.

embezzlement, misappropriation moral turpitude false statement

When an applicant becomes licensed, he or she receives A real estate license, issued to the _________________ A pocket card, a wallet-sized replica of the license which the licensee must carry while __________________________________

employing broker, transacting real estate business

A salesperson applicant must have completed ____________ clock hours of approved instruction.

forty (40)

Terms are ______ years in length.

four (4)

The course must consist of instruction in fundamentals of real estate, including __________ hours of civil rights law and equal opportunity in housing.

four (4) clock

The director is appointed by the _____________, subject to the advice and consent of the Senate.

governor

Associate broker and salesperson licenses are issued only to __________________..

individuals

The use of blind ads is/is not illegal in Michigan.

is

A broker's license issued to a partnership, association, corporation, common law trust or a combination of those entities is/is not transferable.

is not

A principal associate broker's license is/is not transferable.

is not

To meet the broker education requirement, credit will be given for either of the following situations: Having a _____ degree will automatically earn 60 clock hours and six (6) hours of civil rights law and equal opportunity in housing. Having a ______________________________ from an accredited institution of higher learning will automatically earn 60 clock hours of real estate education.

law, Master's Degree in Business Administration

An associate broker is not required for branch offices that are within the same city, even if the office is more than 25 miles from the _____________. This situation could occur in the larger Michigan cities.

main office

A broker applicant must have completed _____________ clock hours of approved instruction, including ____________ hours of civil rights law and equal opportunity in housing.

ninety (90), nine (9)

A ________________ will not be issued more than one (1) associate real estate broker's license as a nonprincipal, but may hold one (1) or more associate real estate broker's licenses as a principal.

nonprincipal

A passing score on an examination, or on a portion of an examination if the examination is given in separate parts, is valid for ________ year(s) from the date of examination.

one (1)

Any real estate office opened in Michigan must be an actual and established ___________________ from which the broker can and does conduct business and where he or she maintains the _________________________..

physical location books and records

A _____________ may be issued more than one (1) associate real estate broker's license.

principal

If a licensee changes the address of either a ____________ or ___________________, he or she must give written notice to the Department.

principal or branch business location

There is no ___________________ between Michigan and any other state.

reciprocity

A person who fails to renew a license within 60 days of expiration cannot renew but must apply for __________________.

relicensure

If a licensee changes his or her home address, it's important to report the change to the Department since this is the address where the ___________________- will be mailed. There is a $10 charge for this change.

renewal application

A licensee can also change a home address as part of the renewal application process. There is no extra fee for the record change, if the change is made on the _________________________.

renewal application.

Each member must be a ____________ of Michigan.

resident

Anyone who is a licensed broker may open a real estate office. The broker can hire persons who hold either a __________________ or _________________ license as affiliates. However, the ___________ is the one who is ultimately responsible for the actions of the affiliated licensees.

salesperson's or associate broker's broker

The associate broker license of a principal who ends his or her connection with a partnership, association, corporation, common law trust or combination of those entities will be ________________________________-.

suspended automatically

Any individual appointed to fill a vacancy on the board will serve for __________________________________________.

the balance of the replaced member's term