Module 9 Quiz (MGBU 371): National Text Chapter 8 & 9 + MD Chapter 2 & 6

What are the 3 main types of buyer agency contracts?

1. Nonexclusive Not-for-Compensation Contracts, 2. Nonexclusive Right-to-Represent Contracts 3. Exclusive Right-to-Represent Contracts

What are the 6 fiduciary duties that an agent owes to their principle?

1. Obedience 2. Loyalty 3. Disclosure 4. Confidentiality 5. Accounting 6. Reasonable Skill and Care

Verifying income

1. lender verification 2. Applicant documentation

What responsibility does a REALTOR® have to uncover latent defects?

(Article 2) A REALTOR® does not have any obligation to discover latent defects in a property.

What is the Agency Relationship in Real Estate?

-Seller may authorize a broker to help locate a buyer -Potential buyer may engage the services of a broker to search for available properties -Many brokers hire sales associates to assist in locating buyers and properties -Sales associate is an agent of the broker and subagent of the principal

What are the Buyer's Agent's Duty to Buyers?

-The broker is a fiduciary of the buyer -Failure to attempt to locate a property for the buyer would violate the buyer representation agreement

What are Indicators of Fraud?

-With the intention to mislead... -Makes a false statement material to a transaction that... -Is justifiably relied on by a client, resulting in... -Injury to that client

What is a Real Estate Broker?

-specialized broker: licensed by the state in which they operate, who arrange real estate or lease transactions for a fee or commission

Universal Agent

A person empowered to do anything the principal could do personally.

never

A salesperson or associate broker can [never, always] be the dual agent.

Cooperating agents

A subtype of a seller's agent, serving as a subagents of the seller, representing the seller through and under the seller's listing broker.

The ............ documents the relationship when an agent lists a property for sale. A. Listing Agreement for Sellers B. Buyer Representation Agreement C. Listing Agreement D. Real estate license

A. Listing Agreement for Sellers A listing agreement is signed between a seller and a broker.

Under the Broker Relationships Act, Brokerage service agreement shall include, but not be limited to, listing agreements, buyer broker agreements and property management agreements. Which type of agreement is included? A. Written agreements only. B. Oral agreements only. C. Both oral and written agreements. D. None of the Above.

A. Written agreements only.

An instrument that records the history of the property is called the

Abstract of title.

Nonagent

Also referred to as facilitator, intermediary, transactional broker, transaction coordinator, or contract broker. Someone who works with a buyer and a seller, assisting one or both parties with the transaction without representing either party's interests.

What is a buyer agent?

An agent who represents the buyer in a real estate transaction

Which of the following statements describe a multiple-listing service (MLS)?

An arrangement in which the participating brokers make their listings available to other members

Except as may be provided in a written brokerage agreement between the broker and a party to a transaction, the broker owes no further duties or responsibilities to the party after termination, expiration, or completion of performance of the transaction, except: A. To account for all monies and property relating to the parties. B. To keep confidential all confidential information received by the broker during the broker's relationship with a party. C. Both A and B. D. Neither A nor B.

B. To keep confidential all confidential information received by the broker during the broker's relationship with a party.

Upon termination, expiration or completion of performance of a brokerage relationship, a broker has no further duties or responsibilities to the party EXCEPT A. disclosure of vicarious liability. B. disclosure of brokerage relationships. C. to account for all monies and properties relating to the transaction. D. describe all material defects in the property.

C. All brokers must account for any money or property in his/her possession belonging to others when the transaction is terminated.

Article 16 Standards of Practice

16-1. Article 16 is not intended to prohibit aggressive or innovative business practices which are otherwise ethical and does not prohibit disagreements with other REALTORS® involving commission, fees, compensation or other forms of payment or expenses. 16-2. Article 16 does not preclude REALTORS® from making general announcements to prospects describing their services and the terms of their availability even though some recipients may have entered into agency agreements or other exclusive relationships with another REALTOR®. Article 16 is intended to recognize as unethical two basic types of solicitations: Telephone or personal solicitations of property owners who have been identified by a real estate sign, multiple listing compilation, or other information service as having exclusively listed their property with another REALTOR®. Mail or other forms of written solicitations of prospects whose properties are exclusively listed with another REALTOR® when such solicitations are not part of a general mailing. 16-3. Article 16 does not preclude REALTORS® from contacting the client of another broker for the purpose of offering to provide, or entering into a contract to provide, a different type of real estate service unrelated to the type of service currently being provided (e.g., property management as opposed to brokerage) or from offering the same type of service for property not subject to other brokers' exclusive agreements. 16-4. REALTORS® must not solicit a listing which is currently listed exclusively with another broker. However, if the listing broker refuses to disclose the expiration date and nature of such listing, a REALTOR® may contact the owner to secure such information and may discuss the terms upon which the REALTOR® might take a future listing. 16-5. REALTORS® may not solicit buyer/tenant agreements from buyers/ tenants who are subject to exclusive buyer/tenant agreements. However, if the broker refuses to disclose the expiration date of the exclusive agreement, the REALTOR® may contact the buyer/tenant to secure such information and may discuss the terms upon which the REALTOR® might enter into a future buyer/tenant agreement. 16-6. When REALTORS® are contacted by the client of another REALTOR® regarding the creation of an exclusive relationship to provide the same type of service, and REALTORS® have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement or may enter into an agreement which becomes effective upon expiration of any existing exclusive agreement. 16-7. The fact that a prospect has retained a REALTOR® as an exclusive representative or exclusive broker in one or more past transactions does not preclude other REALTORS® from seeking such prospect's future business. 16-8. The fact that an exclusive agreement has been entered into with a REALTOR® does not preclude or inhibit any other REALTOR® from entering into a similar agreement after the expiration of the prior agreement. 16-9. REALTORS®, prior to entering into a representation agreement, have an affirmative obligation to make reasonable efforts to determine whether the prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service. 16-10. REALTORS®, acting as buyer or tenant representatives or brokers, must disclose that relationship to the seller/landlord's representative or broker at first contact and must provide written confirmation of that disclosure to the seller/landlord's representative or broker not later than execution of a purchase agreement or lease. 16-11. On unlisted property, REALTORS® acting as buyer/tenant representatives or brokers must disclose that relationship to the seller/landlord at first contact for that buyer/tenant and must provide written confirmation of such disclosure to the seller/landlord not later than execution of any purchase or lease agreement. 16-12. REALTORS®, acting as representatives or brokers of sellers/landlords or as subagents of listing brokers, must disclose that relationship to buyers/tenants as soon as practicable and also provide written confirmation to buyers/tenants not later than execution of any purchase or lease agreement. 16-13. All dealings concerning property exclusively listed, or with buyer/tenants who are subject to an exclusive agreement, must be carried on with the client's representative or broker, and not with the client. Before providing substantive services (such as writing a purchase offer or presenting a CMA) to prospects, REALTORS® must ask prospects whether they are a party to any exclusive representation agreement. 16-14. REALTORS® are free to enter into contractual relationships or to negotiate with sellers/ landlords, buyers/tenants or others who are not subject to an exclusive agreement but may not knowingly obligate them to pay more than one commission except with their informed consent. 16-15. In cooperative transactions REALTORS® must compensate cooperating REALTORS® (principal brokers) and may not compensate nor offer to compensate any of the sales licensees employed by or affiliated with other REALTORS®. 16-16. REALTORS®, acting as subagents or buyer/tenant representatives or brokers, may not use the terms of an offer to purchase to attempt to modify the listing broker's offer of compensation to subagents. 16-17. REALTORS®, acting as subagents or as buyer/tenant representatives or brokers, may not attempt to extend a listing broker's offer of cooperation and/or compensation to other brokers without the consent of the listing broker. 16-18. REALTORS® may not use information obtained from listing brokers through offers to cooperate made through multiple listing services or through other offers of cooperation to refer listing brokers' clients to other brokers. 16-19. Signs giving notice of property for sale, rent, lease, or exchange cannot be placed on property without consent of the seller/landlord. 16-20. REALTORS®, prior to or after their relationship with their current firm is terminated, cannot induce clients of their current firm to cancel exclusive contractual agreements between the client and that firm.

Brokers' principals are called: 1. managers 2. clients 3. prospects 4. customers

2. clients Real estate brokers' principals are their clients Brokers are agents of their principals.

Which of the following does a licensee NOT owe to a customer? 1. due care 2. disclosure of material facts 3. obedience 4. honesty

3. obedience Agents must obey their clients, not their customers. The other three duties are owed to customers as well as clients.

Which of the following is TRUE of property descriptions used in most Maryland real estate transfers? 1. they refer to the government rectangular survey system 2. they consist of the street or mailing addresses of the properties 3. they are based on recorded plats of subdivision or metes-and-bounds data 4. they consist of post office box numbers

3. they are based on recorded plats of subdivision or metes-and-bounds data Most Maryland legal property descriptions use either the metes-and-bounds or the recorded plat of subdivision method. For convenience, street address and post office box numbers may appear, but they are not part of the actual legal description. Baltimore City, however, uses a system of parcels on numbered blocks.

Who may be members of the State Real Estate Commission? 1. only licensed salespersons 2. only licensed brokers 3. unlicensed persons and licensed brokers and salespersons 4. persons appointed by the Attorney General

3. unlicensed persons and licensed brokers and salespersons Membership of the Maryland Real Estate Commission is composed of five licensee members (either salespersons or brokers) and four consumer (non-licensee) members

Who issues Maryland real estate salesperson and brokers licenses? 1. local Board of REALTORS 2. providers of required real estate courses when applicants pass them 3. the Maryland Association of REALTORS 4. the Real Estate Commission

4. the Real Estate Commission Although passing the courses is required, not all who pass apply for a license and not all who apply are granted one by the Real Estate Commission. The Brokers Act (Title 17) empowers the State Real Estate Commission to issue salesperson, associate broker and broker licenses.

Who pays the sales associate?

The Broker and the broker only

Designated agency

The broker designates one sales associate to represent the seller and another sales associate to represent the buyer (this happens in a dual agency situation)

Which of the following statements about an open listing is NOT correct?

The listing broker is always entitled to the stated commission.

Client

The principal in an agency relationship or other form of representation.

A broker may earn a commission even though no sale occurs, as long as a ready, willing and able buyer is found and introduced to the seller.

True

Two federal acts govern electronic contracting

Uniform Electronic Transactions Act (UETA) and Electronic Signatures in Global and National Commerce Act (E-Sign)

Agency

____ is not determined by who pays but by who emplys the agent.

Which would not have to be in a deed?

date

Multiple Listing System

place where workers can share listings with each other

Analyzing income

quality quantity durability

Property Management

tend to specialize in only one type of property

Single agency

the agent represents only one party to a transaction.

Statutory law

the laws enacted by the legislature

Customer

the person assisted

the front-end ratio is

the total monthly housing payment divided by the gross monthly income.

intracompany agents (ICAs)

two agents within the same firm

What is Blockbusting?

using scare tactics to drive down home prices when minority owners begin moving into an area

Caveat Emptor Pages 182-184

"Let the buyer beware." Except in cases of fraud by the seller or the seller's agent, this doctrine basically holds that the seller has no affirmative obligation to disclose information about the property being sold to the purchaser and places the burden on the buyer to investigate the property before contracting to purchase the property. Under this doctrine, real estate buyers are not entitled to rely on advice or opinions of an agent concerning matters in which the agent possess no expertise and are expected to make their own inspection of the property. Although a purchaser's failure to verify information or inspect a property in some cases may relieve an gent of civil liability for misrepresentation or failure to disclose a material fact, it will not necessarily relieve the broker from legal responsibility for the broker's actions under the N.C. Real Estate License Law.

Nancy, a broker in Annapolis, is going over the listing agreement with her new client, Josie, who asks, "What if I need to cancel the agreement early?" What should Nancy tell her? "I'm always flexible. If we need to, we'll add an amendment to the agreement granting you permission to cancel early." "Listing agreements in Maryland must be for a definite amount of time. If it would make you more comfortable, we can set the expiration date for one month, then have it automatically renew unless you decide to cancel." "There's a provision right here that gives either of us permission to cancel the agreement early." "You may cancel early. But per Maryland law, since listing agreements must have a definite termination date, if you do cancel I'll have to charge you a nominal cancellation fee."

"There's a provision right here that gives either of us permission to cancel the agreement early."

Which of the following is an example of a tie-down?

"This is an exceptionally large kitchen, isn't it?"

Which of the following is an example of a tie-down?

"This is an exceptionally large kitchen, isn't it?" (You get a series of "yes" answers).

A sales contract specifies a 6 percent commission. 40 percent of this commission goes to the listing side, 60 percent goes to the selling side. Assume that the selling brokerage firm has an agreement to pay its sales associates a 60% cut. How much commission will the selling brokerage firm pay its sales associate on a $65,000 sale?

$1,404 65,000 x .06 =3,900 total commission paid by seller 3,900 x .60 = 2,340 paid to selling brokerage firm 2,340 x .60 =1,404 paid by selling brokerage firm to sales associate

Because her agent didn't tell her about the leaking roof he knew about, Dulce's had to pay $20,000 to repair her roof, $8,000 to repair the bedroom ceiling that caved in, $2,000 to repaint the bedroom, $10,000 to replace her ruined furniture and wardrobe, and $10,000 in legal fees pursuing her agent in court. She also wants to get back the $2,500 commission she paid him. How much can she seek from the Guaranty Fund?

$40,000 Guaranty Fund claims are limited to actual monetary damages suffered, up to $50,000. Attorney's fees and commission owed or paid to the licensee do not count. The cost of Dulce's actual damages comes to $40,000.

A sales contract specifies a 6 percent commission. 40 percent of this commission goes to the listing agent, 20 percent goes to the selling agent, and the selling brokerage firm has an agreement to pay its sales associates a 60% cut. How much commission will the seller pay when his or her property sells for $95,000?

$5,700 95,000 x .06 = 5,700

Blaire apparently hasn't learned her lesson. She paid a $5,000 penalty when MREC found her guilty of misrepresentation, a $10,000 penalty when she was found guilty of placing a for sale sign in someone's yard without permission, and now she's committed three more violations by placing a series of discriminatory ads. What's the maximum penalty MREC can levy for these new violations?

$75,000

Principal

(1) A sum loaned or employed as a fund or an investment, as distinguished from its income or profits. (2) The original amount (as in loan) of the total due and payable at a certain date. (3) A main party to a transaction - the person for whom the agent works.

The obligation to cooperate does not include the obligation to do what?

(Article 3) Share commissions, fees, or to otherwise compensate another broker.

REALTORS® may represent both parties in the same transaction provided what two elements are in-place?

(Standard 1-5) Only after full disclosure to and with informed consent of both parties

How long does the preservation of confidential information last?

(Standard 1-9) Confidentially continues after termination of agency relationships or any non-agency relationships recognized by law.

What type of demographic information cannot be given to a potential buyer?

(Standard 10-1) A REALTOR® cannot volunteer information regarding the racial, religious or ethnic composition of any neighborhood.

What types of demographic information can a REALTOR® share?

(Standard 10-2) A REALTOR® can provide demographic information related to a property, transaction or professional assignment to a party if such demographic information is: Needed to assist with or complete a real estate transaction or professional assignment Obtained or derived from a recognized, reliable, independent, and impartial source and that source is disclosed in reasonable detail.

When must a REALTOR®, acting as buyer's representative, disclose that relationship to the seller's representative?

(Standard 16-10) Disclosure must occur at first contact and must provide written confirmation of that disclosure no later than execution of a purchase agreement.

In a cooperative transaction, a REALTOR® can only compensate which other party?

(Standard 16-15) A REALTOR® can only give compensation to a principal broker and may not compensate nor offer to compensate any of the sales licensees employed by or affiliated with other REALTORS®.

What is the result when two REALTORS® file for litigation in an arbitrable matter and refuse to withdraw from the lawsuit?

(Standard 17-1) This action constitutes a refusal to arbitrate.

When are REALTORS® not required to mediate?

(Standard 17-2) REALTORS® are not required to mediate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to mediate through the Board's facilities.

What factors are not considered "pertinent" for purposes of Article 2?

(Standard 2-5) Factors defined as "non-material" by law or regulation or which are expressly referenced in law or regulation as not being subject to disclosure are considered not "pertinent" for purposes of Article 2.

What does the Licensing Process for Real Estate Brokers entail?

-A license is required if you engage in real estate transactions on behalf of someone else -All states and D.C. require that real estate sales associates and brokers obtain a license, although requirements vary from state to state -Sales associate must complete high school and additional education requirements, as well as pass a written exam administered by the state real estate licensing authority -To obtain a brokerage license, applicant must work for a specific period of time (usually 1+ years) as a licensed sales associate, complete additional education requirements, and pass a written test -Sales associates and brokers must now complete continuing education classes in an effort to keep them up to date of current developments in the field

What are the 7 Ways of Terminating an Agency Relationship?

-A transaction occurs -The terms of the contract expire -The parties agree to termination -One party breaches his/her duties -One party becomes contractually incapacitated -A listed property's improvements are destroyed -A listed property is taken by the government under the power of eminent domain

What is the Seller's Agent's Responsibility?

-After a listing agreement is signed, the broker's job is to locate a willing and able buyer -Broker must also keep the seller informed at all times and communicate any and all offers received to the buyer

What does Marketing the Property to Qualified Buyers entail?

-After listing, broker prepares a plan for marketing property to buyers, with things such as for sale signs, open houses, etc. -Qualifying the buyer: the process used by the broker in determining the truly qualified buyers from those who aren't

What is a Limited Service Listing?

-Broker agrees to place the property on the multiple listing service (like Loopnet or Zillow), which provides minimal support to the seller but allows property owners to advertise their properties for sale on the MLS, which is only available to paying members

What do Presentations and Negotiations entail?

-Can last anywhere from a few hours to a few months at a time -Buyers must remember that the broker is supposed to represent the seller's best interest, and a buyer may want to hire a broker as well to represent their interests

What is the History of Fair Housing?

-Civil rights act of 1866 says that all citizens have the right to inherit, own, or lease real property -1968 Supreme Court says that this law prohibits all racial discrimination, private as well as public, in the sale of rental property

What is the Multiple Listing Service Clause?

-If another broker sells the property, the listing broker stills receives a portion of the commission Requires uploading the property to a website such as Zillow or Loopnet -Service is advantage to the seller because it may reach more potential buyers

What do Contracts and Closings entail?

-If parties agree, a contract that spells out details of the transaction is created -Broker cannot provide legal advice unless they're a licensed attorney, but they can assist the parties in negotiations -After insurance is obtained, financing is arranged, and then once the rest of the papers are signed the transaction is closed and ownership is legally transferred

How does the Compensation for the Buyer's Broker work?

-In many cases, the agreement calls for a retainer fee at the time the contract is signed, with a commision due if the property is purchased -If property is identified through the MLS, the buyer's broker will receive a "commission split" from the listing agent

What is a Listing Agreement?

-Lets the broker begin to work on finding a specified property for the buyer -Most important aspect of the listing agreement is the determining of the listing price -Also defines the amount of compensation due to the broker for his services

What does Broker and Sales Associate Compensation Look Like?

-Normally, the commission is determined by a percentage of the gross transaction amount, though it can also be a flat fee -Commission on single family homes typically range from 2-6%, while commercial real estate ranges from 1-5%, but unimproved land can range from 6-10% -Commissions must be determined through broker-client interaction; even talk amongst brokers can be a criminal offense

What is an Exclusive Right to Sell Listing?

-Owner authorizes the broker to search for a buyer for the property and agrees to pay the broker a commission even if property is sold by anyone while listing agreement is active, including the owner -Gives broker best guarantee of getting money

How does the Broker Seller Relationship work?

-Property owners generally give real estate brokers authority to sell their property using a written document called a listing agreement -Only 20 states actually require the listing agreement to be in writing -Listing broker describes the property and states the asking price, the duties of the broker, the extent of authority granted, the duration of the agreement, and the rights of the broker to a commission

designated dual agency

-Requirements for appointing a ____ are as follows: 1) A provisional broker may not be designated as a agent in any transaction where the BIC would be the other ____ 2) Brokers who already possess confidential information about the other party in a transaction may not be ____ 3) Any other combination of ____ is allowed as follow: Broker opposite broker; provisional broker opposite provisional broker; broker opposite provisional broker; broker opposite BIC

What is a Net Listing?

-Seller is guaranteed a specific amount of money, while the broker receives the remainder of the sales price -Illegal; broker can lie about the fair market value to obtain a bigger commission

How does Brokerage Regulation work?

-State real estate licensing authority is responsible for ensuring that licenses obey laws and regulations, and will suspend or revoke licenses found guilty of things such as fraud, misconduct, etc. -If a legal judgement is pronounced, sometimes the defendant will be unable to pay because of poor financial condition, so about 40 states require that brokers be bonded/maintain a state sponsored recovery fund -Portion of each real estate license fee goes into the recovery fund, which is able to pay uncollectible judgements against licenses

What is an Open Listing?

-The broker is only entitled to commission if he successfully arranges a transaction -Entering into an open listing, the seller is authorizing the broker to attempt to find a willing buyer, but the owner reserves the right to authorize other brokers to locate a potential buyer -Seller can also sell his/her property without the aid of a broker -Sellers have greater flexibility in these agreements -The broker doesn't have as much of an incentive to concentrate on selling the property because there is no assurance of actually earning a commision if another broker beats him to the punch

What are the Seller's Agent's Duties to Buyers?

-The broker must look out for the buyer's best interests -Courts are increasingly holding that the broker must go further, having a responsibility to disclose any negative factors that might adversely affect the property's value -If a buyer gives a broker any money as deposit on a potential purchase, these funds must be kept separate from the broker's personal and other business funds and cannot be used for the broker's benefit

What is an Exclusive Brokerage Listing?

-The seller cannot authorize another broker to find a buyer without becoming obligated to pay the original broker commission even if another broker finds a buyer for the property -May seem most beneficial for the seller, because they have one exclusive agent looking for buyers but can still sell the property themselves -Broker may not be totally dedicated to marketing the property because they could still lose commission rights if the seller sells the property themselves

What are Desk Fee Arrangements?

-brokers/sales associates who work with other members of the firm must pay a monthly fee for the right to occupy spaces in the office (phone service, cooperative advertising, and other amenities come as a result) -Agents keep 100% of their commission they generate after paying the desk fee

What is a Real Estate Sales Associate?

-can carry out only those responsibilities assigned to them by their supervising broker

How am when should it first be revealed to prospects that they have presumed buyer representation? 1. Orally, at the initial interview between licensee and prospect. 2. In writing, when prospects signed a written agreement to be a client, 3. In writing, before the end of the first scheduled face-to-face meeting 4. In writing, when the possibility of dual agency arrises

1

Which statement about cooperating agents, as defined on the understanding home real estate agents represent form, is false? 1. Cooperating agents can represent the buyer. 2. Cooperating agents are subagents of the listing broker. 3. Cooperating agents bring in customer - buyers and are from a company other than the listing company. 4. A cooperating agent who brings in a buyer has a fiduciary duty to the seller/owner

1

Which statement is true about the use of a lot, block, section and similar references to a subdivision plat for property descriptions? 1. They are sufficient if the plat referred to was properly recorded. 2. They must be prepared by a licensed real estate broker. 3. They are not sufficient for sales agreements but are good enough for listings. 4. They are sufficient for listings but not for sales agreements

1

License Renewal

1) Every 4 years 2) 45 hours total 3) 15 in DRE-approved continuing education courses in ethics, fair housing, agency, trust fund handling, and risk management 4) 18 hours of consumer protection courses 5) 15 hours consumer service and consumer protection

Real Estate Activities for Brokers or Licensees

1) Residential income property 2) Commercial Property 3) Industrial Property 4) Manufactured Home Parks 5) Land and Farm Brokerage 6) Lot Sales 7) Site Sales 8) Auction Sales 9) Property Management 10) Licensees specializing in leasing 11) Loan Brokerage 12) Appraisal

IRS Criteria for Licensee to qualify as Independent Contractor for Tax Purposes

1) Salesperson is licensed real estate broker or sales person 2) Financial reimbursement to the salesperson is based solely on sales, not on hours worked 3) There is a written contract that states that the salesperson shall be treated as an independent contractor for tax purposes

Liabilities and Consequences of Agent's Breach of Duties Pages 202-203

1) The broker may be disciplined by NC Real Estate Commission which may be a public reprimand or a suspension or revocation of the broker's license. 2) The agent may be liable for his breach of duty in a civil action in court. -Where the broker violates a duty, the broker will usually lose the commission. -Any profits from undisclosed self-dealing go tot the property owner. -Undisclosed dual agency denies the broker of compensation and makes the contract voidable. -The broker is liable for damages caused by his negligence, misrepresentation or withheld information. 3) The agent may be subject to criminal prosecution for the breach. 4) The principal may be legally liable for the agent's breach of a duty to a third person.

Four key provisions for UETA

1) a contract cannot be denied its legal effect bc an electronic record was used 2) a record or signature cannot be denied its legal effect just bc it is an electronic format 3) if a states law requires a signature on a contract, an electronic signature is sufficient 4) if a state's law requires a written record an electronic record is sufficient.

A licensee is responsible to the customer for

1) provide due care 2) disclose material facts 3) offer honesty and fairness

What are the tree requirements that must be met under the Qulified Real Estate Agent category (PSI)

1) the individual must have a current real estate license 2) the individual must have a written contract with the broker that specifies that the individual will not be treated as an employee for federal purposes 3) a substantial portion of the individuals income as a real estate proffesional must be based on sales production or other output and not on the number of hours worked.

Role-Playing

1) with someone else 2) visualize

What are the 3 kinds of misrepresentations in real estate?

1. Fradulent 2. Negligent 3. Innocent

What are the 3 main duties a seller's agent owes to the buyer as a customer?

1. Full disclosure of material facts 2. Honesty 3. Reasonable skill and care

If a salesperson license is issued on January 2, 2014, when will it expire? 1. January 2, 2016 2. September 2, 2016 3. April 1, 2016 4. March 31, 2016

1. January 2, 2016 Licenses are issued for a period of two years from their date of issuance.

What are the 4 basic duties of a buyer's agent?

1. Locate the correct property 2. Negotiate the offer 3. Recommend other professionals when needed 4. Help resolve obstacles

How and when should it first be revealed to prospects that they have presumed buyer representation? 1. orally, at the initial interview between the licensee and prospect 2. in writing, when the prospect signs a written agreement to be a client 3. in writing, before the end of the first scheduled face-to-face meeting 4. in writing, when the possibility of dual agency arises

1. Orally, at the initial interview between the licensee and prospect In §17-533(i)(1), the Brokers Act requires this disclosure, orally, at a licensee's first meeting (not first, scheduled, face-to-face meeting) with a prospect. Licensee must also then disclose that the prospect can decline presumed representation. The prospect's signing a representation agreement would not reveal PBR; it would end it. If dual agency has arisen because prospect has been shown an in-house property, PBR has also ended. I learned it as answer (3. in writing, before the end of the first scheduled face-to-face meeting) check new requirements for this answer

What are the 5 types of required disclosures that should be discussed at the initial interview with a customer?

1. Type of Agency Relationship 2. Buyer/Seller Agent 3. Dual Agent 4. Designated Agent 5. Transaction Licensee

Lender's Risk

1. borrower might default 2. property might not provide adequate security for loan.

Three kinds of law for agency relationships in real estate transactions

1. common law 2. statutory law 3. administrative law

Which statement about cooperating agents (as defined on the Understanding Whom Real Estate Agents Represent form) is FALSE? 1. cooperating agents can represent the buyer 2. cooperating agents are subagents of the listing broker 3. cooperating agents bring in customers/buyers and are from a company other than the listing company 4. a cooperating agent who brings in a buyer has fiduciary duties to the seller-owner

1. cooperating agents can represent the buyer A cooperating agent is the subagent of the listing broker who represents the sellers; therefore, the cooperating agent cannot represent the buyers, only assist them by bringing them to the listing company. Cooperating agents' fiduciary duties are to sellers.

Real estate sales agreements and listings use property descriptions. Which of the following is TRUE about the use of lot, block, section -- and similar references to subdivision plat -- for such description? 1. they are sufficient if the plat referred to was properly recorded 2. they must be prepared by licensed real estate brokers 3. they are not sufficient for sales agreements but are good enough for listings 4. they are sufficient for listings but not for sales agreements

1. they are sufficient if the plat referred to was properly recorded References to the recorded plat of subdivision are sufficient to describe lots within that subdivision. They are used both in listing and in sales agreements.

When builders sell houses they have built and own, which of the following is TRUE? 1. they need not hold real estate licenses 2. they must be licensed if they sell more than six per calendar year 3. they must be licensed brokers 4. they may be licensed as salespersons but not affiliated with brokers

1. they need not hold real estate licenses

Article 10 Standards of Practice

10-1. When involved in the sale or lease of a residence, REALTORS® cannot volunteer information regarding the racial, religious or ethnic composition of any neighborhood nor can they engage in any activity which may result in panic selling; however, REALTORS® may provide other demographic information. 10-2. When not involved in the sale or lease of a residence, REALTORS® may provide demographic information related to a property, transaction or professional assignment to a party if such demographic information is: Needed to assist with or complete a real estate transaction or professional assignment Obtained or derived from a recognized, reliable, independent, and impartial source and that source is disclosed in reasonable detail. 10-3. REALTORS® may not print, display or circulate any statement or advertisement with respect to selling or renting of a property that indicates any preference, limitations or discrimination based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. 10-4. As used in Article 10 "real estate employment practices" relates to employees and independent contractors providing real estate-related services and the administrative and clerical staff directly supporting those individuals.

Article 11 Standards of Practice

11-1. When REALTORS® prepare opinions of real property value or price they must: Be knowledgeable about the type of property being valued, Have access to the information and resources necessary to formulate an accurate opinion, and Be familiar with the area where the subject property is located unless lack of any of these is disclosed to the party requesting the opinion in advance. When an opinion of value or price is prepared other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, the opinion shall include the following unless the party requesting the opinion requires a specific type of report or different data set: Identification of the subject property Date prepared Defined value or price Limiting conditions, including statements of purpose(s) and intended user(s) Any present or contemplated interest, including the possibility of representing the seller/landlord or buyers/tenants Basis for the opinion, including applicable market data If the opinion is not an appraisal, a statement to that effect Disclosure of whether and when a physical inspection of the property's exterior was conducted Disclosure of whether and when a physical inspection of the property's interior was conducted Disclosure of whether the REALTOR® has any conflicts of interest 11-2. The obligations of the Code of Ethics in respect of real estate disciplines other than appraisal shall be interpreted and applied in accordance with the standards of competence and practice which clients and the public reasonably require to protect their rights and interests considering the complexity of the transaction, the availability of expert assistance, and, where the REALTOR® is an agent or subagent, the obligations of a fiduciary. 11-3. When REALTORS® provide consultive services to clients which involve advice or counsel for a fee (not a commission), such advice shall be rendered in an objective manner and the fee shall not be contingent on the substance of the advice or counsel given. If brokerage or transaction services are to be provided in addition to consultive services, a separate compensation may be paid with prior agreement between the client and REALTOR®. 11-4. The competency required by Article 11 relates to services contracted for between REALTORS® and their clients or customers; the duties expressly imposed by the Code of Ethics; and the duties imposed by law or regulation.

Article 12 Standards of Practice

12-1. REALTORS® may use the term "free" and similar terms in their advertising and in other representations as long as all terms are clearly disclosed at the same time. 12-2. REALTORS® may represent their services as "free" even if they expect to receive compensation from a source other than their client provided that the potential for obtaining a benefit from a third party is clearly disclosed at the same time. 12-3. The offering of premiums, prizes, merchandise discounts or other inducements to list, sell, purchase, or lease is not, in itself, unethical. However, REALTORS® must exercise care and candor in any such advertising so that any party interested in benefiting from the offer will have clear, thorough, advance understanding of all the terms and conditions. 12-4. REALTORS® must not offer for sale/lease or advertise property without authority. 12-5. REALTORS® cannot advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR®'s firm in a reasonable and readily apparent manner either in the advertisement or in electronic advertising via a link to a display with all required disclosures. 12-6. When advertising unlisted real property for sale/lease in which they have an ownership interest, REALTORS® must disclose their status as both owners and licensees. 12-7. Only REALTORS® who participated in the transaction as the listing broker or cooperating broker may claim to have "sold" the property. Prior to closing, a cooperating broker may post a "sold" sign only with the consent of the listing broker. 12-8. REALTORS® have an obligation to present a true picture in representations to the public, which includes information presented, provided, or displayed on REALTORS®' websites. 12-9. REALTOR® firm websites must disclose the firm's name and state(s) of licensure in a reasonable and readily apparent manner. Websites of licensees affiliated with a REALTOR® firm must disclose the firm's name along with the licensee's state(s) of licensure in a reasonable and readily apparent manner. 12-10. In website advertising, REALTORS® are prohibited from: Engaging in deceptive or unauthorized framing of real estate brokerage websites Manipulating listing and other content in any way that produces a deceptive or misleading result Deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic Presenting content developed by others without either attribution or without permission Otherwise misleading consumers, including use of misleading images 12-11. REALTORS® intending to share or sell consumer information gathered via the Internet must disclose that possibility in a reasonable and readily apparent manner. 12-12. REALTORS® cannot use URLs or domain names that present less than a true picture, or register URLs or domain names which, if used, would present less than a true picture. 12-13. REALTORS® can use and display only professional designations, certifications, and other credentials to which they are legitimately entitled.

Article 17 Standards of Practice

17-1. The filing of litigation and refusal to withdraw from it by REALTORS® in an arbitrable matter constitutes a refusal to arbitrate. 17-2. Article 17 does not require REALTORS® to mediate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to mediate through the Board's facilities. The fact that all parties decline to participate in mediation does not relieve REALTORS® of the duty to arbitrate. Article 17 does not require REALTORS® to arbitrate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to arbitrate before the Board. 17-3. REALTORS®, when acting solely as principals in a real estate transaction, are not obligated to arbitrate disputes with other REALTORS® absent a specific written agreement to the contrary.

Brokers principles are called 1. Managers 2. clients 3. prospects 4. customers

2

Which is true of location drawings? 1. They are essentially the same as boundary surveys. 2. They are appropriate for typical residential resales. 3. They cost more than boundary surveys. 4. They can properly be used for placing fences and other improvements

2

Which of the following is true of brokers when they represent buyers of real estate? 1. They are regarded by the law as dual agents in such transactions. 2. They must disclose this agency relationship to sellers. 3. They are in violation of the brokers act. 4. They will not be compensated

2

Which statement about agency is true in Maryland? 1. Maryland does not allow a brokerage firm to represent both buyer and seller in the same transaction. 2. dual agency is permitted only in brokerage firms consisting of three or more licensees. 3. A licensees performance of ministerial duties for a customer justifies the claim by that customer that the licensee "... Acted in a way that indicated she was my agent" 4. The broker of a firm may act as one of the two intracompany agents required for dual agency

2

Article 2 Standards of Practice

2-1. REALTORS® shall only be obligated to discover and disclose adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. Article 2 does not impose upon the REALTOR® the obligation of expertise in other professional or technical disciplines. 2-4. REALTORS® shall not be parties to the naming of a false consideration in any document, unless it be the naming of an obviously nominal consideration. 2-5. Factors defined as "non-material" by law or regulation or which are expressly referenced in law or regulation as not being subject to disclosure are considered not "pertinent" for purposes of Article 2

What body sets ethical standards that must be observed by all Maryland real estate licensees? 1. National Association of REALTORS 2. State Real Estate Commission 3. Maryland Association of REALTORS 4. local boards and associations

2. State Real Estate Commission The State Real Estate Commission has authority over all Maryland licensees, while the Association of Realtors® has authority only over its members. Not all licensees are Realtors®.

When prospective purchasers first arrive at a brokerage office to find a house to buy, how does the Brokers Act require them to be treated? 1. as customers 2. as clients 3. as agents 4. as factors

2. as clients Based on presumed buyer/lessee representatoin, they are owed client-level duties'.

Which of the following statements about agency is TRUE in Maryland? 1. Maryland does not allow a brokerage firm to represent both buyer and seller in the same transaction 2. dual agency is permitted only in brokerage firms consisting of three or more licensees 3. a licensee's performance of ministerial duties for a customer justifies the claim by that customer that the licensee "...acted in a way that indicated she was my agent." 4. the broker of a firm may act as one of the two intra-company agents required for dual agency

2. dual agency is permitted only in brokerage firms consisting of three or more licensees Only firms with a minimum of three licensees may engage in dual agency under Maryland law because there must be two intra-company agents appointed by a broker.

When a salesperson whose license has not been renewed negotiates a sale of real property, who is the commission payable to? 1. the broker only 2. no one 3. the salesperson only 4. the broker and the salesperson according to prior agreement

2. no one No commission be claimed by a firm based on the activity of a person who should have been properly licensed but was not.

Which is TRUE of location drawings? 1. they are essentially the same as boundary surveys 2. they are appropriate for typical residential resales 3. they cost more than boundary surveys 4. they can properly be used for placing fences and other improvements

2. they are appropriate for typical residential resales A location drawing shows that the improvement is actually on the lot an shows other basic facts. Placing fences, however requires a boundary survey, which is usually more expensive.

Which of the following is TRUE of brokers when they represent buyers of real estate? 1. they are regarded by the law as dual agents in such transactions 2. they must disclose this agency relationship to sellers 3. they are in violation of the Brokers Act 4. they will not be compensated

2. they must disclose this agency relationship to sellers A broker who represents a client-buyer must disclose that fact to any seller or the agent of any seller he encounters.

When may brokerage lawfully perform dual agency? 1. When the firm has been certified by the commission for dual agency brokerage 2. When the firm has only two individual licensees in it 3. When the firms broker or the branch manager designates two company licensees, 1 to represents the seller and other for the buyer 4. When both sellers and buyers have agreed to dual agency on a particular property

3

When must a licensee who is representing a seller disclose this fact to the buyer or the buyers agent? 1. At first contact. 2. When an offer is made. 3. Not later than the first scheduled face-to-face meeting. 4. When the buyer or agent of the buyer asks

3

Which if the following does not end presumed buyer representation? 1. Prospects orally decline presumed representation. 2. Prospects decide to make an offer for property listed by a company other than the company representing them. 3. The licensee working with prospects fails to present a disclosure of representation form. 4. The licensee shows prospects a property listed with the licensees own firm

3

Which is true when brokers handle the purchase and sale of residential real property? 1. They are agents of the owner of the property being bought or sold. 2. They may not act as the agent of the buyer. 3. They may not represent both buyer and seller in the same transaction without designating 2 intracompany agents. 4. They may personally represent both buyer and seller if both parties agree

3

Which of the following does a licensee not Owe to a customer? 1. Due care. 2. Disclosure of material facts. 3. Obedience. 4. Honesty

3

Which of the following is most likely to be a sufficient legal description for the sale of land? 1. 142 Pinehurst Rd., Ocean Pines 2. That lot fronting 100 feet on Pinehurst and being 250 feet deep. 3. That 2 acres, shown on attached plat of subdivision survey as prepared by Landsman and Company, surveyors of Catonsville Maryland 4. 1776B Liberty St., Snowhill, MD being the north half of a duplex

3

Which of the following is true about the understanding whom real estate agents represent disclosure of agency representation form? 1. It constitutes a contract for buyer representation when the fourth box is checked and the prospect signs the form. 2. It ends presumed buyer representation whatever box is checked and whether or not the prospect signs it 3. Failure to properly present the form constitutes a violation of the brokers act by the licensee 4. The prospect is required by law to acknowledge receipt of the form by signing it

3

Which of the following is true of property descriptions used to most Maryland real estate transfers? 1. They refer to the government rectangular survey system. 2. They consist of the street or mailing address of the properties. 3. theyre based on recorded plats of subdivisions or meets and bounds data. 4. They consist of PO Box numbers

3

How many hours do salespeople need to complete for renewal?

3 hours in Ethics, 3 hours in Agency, and 3 hours in Legislative.Fair housing 1.5 4.5 electives

How many hours do Brokers need to complete for renewal?

3 hours in Legislative, 3 hours in Agency, 3 hours in Broker Supervision and 3 hours in Ethics.1.5 credit hour in Fair Housing. Elective Hours: 1.5

Which of the following is MOST likely to be a sufficient legal description for the sale of land? 1. "142 Pinehurst Road, Ocean Pines" 2. "That lot fronting 100 fee on Pinehurst and being 250 feet deep" 3. "That two acres, shown as prepared by Landsman & Co., Surveyors of Catonsville, Maryland" 4."1776B Liberty St., Snow Hill, MD, being the northern half of a duplex

3. "That two acres, shown as prepared by Landsman & Co., Surveyors ofCatonsville, Maryland" The description is dignified by reference to the recoded plat of subdivision for its details. The other choices lack material details such as adequate boundaries an other dimensions.

What is the maximum amount that a claimant may receive from the Guaranty Fund on losses from one transaction? 1. an unlimited amount 2. $250,000 3. $50,000 4. $25,000

3. $50,000 The maximum loss that is covered is $25,000 per transaction.

Which of the following is TRUE about the Understanding Whom Real Estate Agents Represent disclosure of agency representation form? 1. it constitutes a contract for buyer representation when the fourth box is checked and the prospect signs the form 2. it ends presumed buyer representation no matter what box is checked, whether or not the prospect signs it 3. failure to properly present the form constitutes a violation of the Brokers Act by the licensee 4. the prospect is required by law to acknowledge receipt of the form by signing it

3. failure to properly present the form constitutes a violation of the Brokers Act by the licensee The Brokers Act requires licensees to present the disclosure of representation form (Understanding Whom Real Estate Agents Represent) at the first scheduled, face-to-face meeting with buyer prospects. When licensees represent buyers, they must also present properly completed Understanding Whom forms to sellers at first contact. The disclosure of agency representation form, when delivered - whether signed by the prospect or not - never creates or ends a contract or a relationship.

Which of the following does NOT end presumed buyer representation? 1. prospects orally decline presumed representation 2. prospects decide to make an offer for property listed by a company other than the company representing them 3. licensee working with prospects fails to present a disclosure of representation form 4. licensee shows prospects a property listed with a firm other than the licensee's

3. licensee working with prospects fails to present a disclosure of representation form Whether or not the licensee presents the agency disclosure form, the prospect is still presumed by law to have presumed buyer representation (PBR) until either the prospect or the licensee refuses PBR, prospect is shown a property listed by the licensee's firm, prospect wants to prepare an offer on any property, or prospect enters into a formal representation (buyer broker) agreement.

When must a licensee who is representing a seller disclose this fact to the buyer? 1. at first contact 2. when an offer is made 3. no later than the first scheduled face-to-face meeting 4. when the buyer or agent of the buyer asks

3. no later than the first scheduled face-to-face meeting Title 17, the Brokers Act, requires disclosure not later than the firs scheduled face-to-face meeting with the buyer or seller prospects. The rule for REALTORS®, by contrast, is disclosure of representation at the first contact. To wait until an offer is made - or until a party requests disclosure of representation - is to violate the law and also risk possible collapse of a settlement, with consequent litigation, and costly disciplinary action by the Commission.

When a partnership owns a real estate brokerage firm, which statement is FALSE? 1. the broker is responsible for the real estate brokerage activities of the partnership 2. the broker must be one of the partners 3. the broker must be designated by the partnership as its broker of record 4. the broker must have a contractual or employment agreement with the partnership

3. the broker must be designated by the partnership as its broker of record

Which is TRUE when brokers handle the purchase and sale of residential real property? 1. they are agents of the owner of the property being bought or sold 2. they may not act as the agent of the buyer 3. they may not represent both buyer and seller in the same transaction without the designation of two intra-company agents. 4. they may personally represent both buyer and seller if both parties agree

3. they may not represent both buyer and seller in the same transaction without the designation of two intra-company agents. Such dual agency can be performed in Maryland real estate only when a broker appoints two such intra-company agents

Which of the following is TRUE of salespersons' real estate licenses? 1. they must be placed and kept in a safe place chosen by the salespersons 2. they are to be carried by the salespersons when performing acts of real estate brokerage 3. they must be retained in their broker's offices 4. they must be maintained in personnel files by their brokers

3. they must be retained in their broker's offices Salespersons' and associate brokers' licenses must be retained in the brokers' branch office out of which each works.

When may a brokerage lawfully perform dual agency? 1. when the firm has been certified by the Commission for dual agency brokerage 2. when the firm has only two individual licensees in it 3. when the firm's broker (or the branch manager) designates two company licensees -- one to represent (be the intra-company agent for) the seller and another for the buyer 4. when both sellers and buyers have agreed to dual agency on a particular property

3. when the firm's broker (or the branch manager) designates two company licensees -- one to represent (be the intra-company agent for) the seller and another for the buyer Lawful dual agency requires that the firm designate two licensees as intra-company agents (ICA's), one for each party. Agreement by the parties to dual agency is required but not, by itself, sufficient. A firm with only a broker and one agent cannot meet this requirement because the broker may not serve as an ICA. The Commission does not certify for dual agency; it merely enforces statutory requirements for its performance.

Arthur has been assigned by his broker, Bettina to work with Carlos to provide buyer representation for the purchase of a property listed by Dorene, a sales person with bettinas company. bettina Has named Doreen to represent the seller. In this situation, which of the following is true? 1. Carlos is a prospect, Arthur is his intracompany agent, Bettina is a single agency broker, and Doreen is the intracompany agent for the seller 2. Carlos is a client, Arthur is his intracompany agent, but bettina is a disclosed dual agent, and Doreen is the intracompany agent of the purchaser 3. Carlos is a customer, Arthur is his salesperson, Bettina is a intracompany agent, and Doreen represents the seller 4. Carlos is a client, Arthur is his intracompany agent, Bettina is not a single agency broker, and Doreen is the intracompany agent for the seller

4

Of which kind of legal description is this example? "Beginning at the intersection of the east line of Goodrich Boulevard in the south line of Jasmine Lane and running south along the east line of Goodrich Boulevard a distance of 230 feet, Then easterly parallel to the north line of Wolf Road, a distance of 195 feet, then north easterly on a course of N 22° east, a distance of 135 feet; And then northwesterly along the south line of Jasmine Lane to the point of beginning" 1. Block 2. rectangular survey 3. subdivision 4. meets and bounds

4

Which of the following is not a duty agents owe to their principles ? 1. Disclosure of all facts. 2. Loyalty. 3. Timely presentation of all written offers and counter offers. 4. Reporting to a client buyer that one of the sellers family members has AIDS

4

Which statement concerning agency is true? 1. a broker may properly be considered the agent of the party from whom the broker receives payment. 2. A broker is allowed to be a dual agent in a transaction if no harm is done. 3. A sales person may personally perform to agency if the buyer and seller agree in writing. 4. A broker who represents both buyer and seller in the same transaction must appoint 2 intracompany agents

4

Which statement is true concerning presumed buyer representation? 1. Presumed buyer representation begins when a licensee shows a prospective purchaser property listed by another brokerage firm 2. Presumed buyer representation ends when a licensee shows a prospective purchaser property listed with another brokerage firm 3. a prospective purchaser who declines to enter into a buyer representation agreement is no longer owed confidentiality about matters previously discussed 4. The licensee can no longer be the presumed buyer representative of a purchaser who makes an offer on a property

4

Arthur has been assigned by his broker, Bettina, to work with Carlos to provide buyer representation for the purchase of a property listed by Dorene, a salesperson with Bettina's company. Bettina has named Dorene to represent the seller. In this situation, which of the following is TRUE? 1. Carlos is a prospect; Arthur is his intra-company agent; Bettina is a single-agency broker; and Dorene is the intra-company agent for the seller 2. Carlos is a client; Arthur is his intra-company agent; Bettina is a disclosed dual agent; and Dorene is the intra-company agent for the purchaser 3. Carlos is a customer; Arthur is his salesperson 4. Carlos is a client; Arthur is his intra-company agent; Bettina is not a single-agency broker; and Dorene is the intra-company agent for the seller.

4. Carlos is a client; Arthur is his intra-company agent; Bettina is not a single-agency broker; and Dorene is the intra-company agent for the seller. The players are properly identified in choice (4). Bettina is not a single-agency broker because she is performing dual agency here through her company.

Which statement concerning agency is TRUE? 1. a broker may be considered the agent of the party from whom the broker receives payment 2. a broker is allowed to be a dual agent in a transaction if no harm is done 3. a salesperson may personally perform dual agency if both buyer and seller agree in writing 4. a broker who represents both buyer and seller in the same transaction must appoint two intra-company agents

4. a broker who represents both buyer and seller in the same transaction must appoint two intra-company agents The only way a firm may represent both buyer and seller in the same transaction is for its broker (or branch manager) to appoint tow intra-company agents - one to represent the buyer, the other to represent the seller. Neither a salesperson nor a broker can personally represent both the buyer and seller in a transaction, even with the parties' permission. "No harm" is no excuse for a broker's improperly conducting dual agency.

"Beginning at the intersection of the east line of Goodrich Boulevard and the south line of Jasmine Lane and running south along the east line of Goodrich Boulevard and distance of 230 feet; thence easterly parallel to the north line of Wolf Road, a distance of 195 feet; thence northeasterly on a course of N 22 degrees E, a distance of 135 feet; and thence northwesterly along the south line of Jasmine Lane to the point of beginning." What kind of legal description is this an example of? 1. block 2. rectangular survey 3. subdivision 4. metes-and-bounds

4. metes-and-bounds This description makes use of distances, compass directions, and monuments to describe a parcel in outline - all characteristic of metes-and-bounds surveys.

Which of the following is NOT a duty agents owe to their principals? 1. disclosure of all facts 2. loyalty 3. timely presentation of all written offers and counteroffers 4. reporting to a client-buyer that one of the seller's family members had AIDS

4. reporting to a client-buyer that one of the seller's family members had AIDS It is a violation of privacy under the Americans with Disability Act to state that a present or former occupant of a property under consideration by a purchaser had or is said to have had HIV, AIDS, or AIDS-Related Complex (ARC). No fiduciary duty is breached by withholding such information or opinion.

Which of the following is TRUE concerning presumed buyer representation? 1. presumed buyer representation begins when a licensee shows a prospective purchaser property listed by another brokerage firm 2. presumed buyer representation ends when a licensee shows a prospective purchaser property listed with another brokerage firm 3. a prospective purchaser who declines to enter into a buyer representation agreement is no longer owed confidentiality about matters previously discussed 4. the licensee can no longer be the presumed buyer representative of a purchaser who makes an offer on a property

4. the licensee can no longer be the presumed buyer representative of a purchaser who makes an offer on a property Presumed buyer representation (PBR) begins when a prospect seeks assistance to rent or buy residential property. PBR ends when a buyer asks to make a contract offer on a property. PBR also ends when the licensee shows the prospect a property listed with the licensee's firm. [Although this fact is ignored in the practice of many agents, 17-533(d) states, "A licensee who is acting as a presumed buyer'd or lessee's agent may show and assist the buyer or lessee only on real estate that is not listed by the broker of that licensee.] PBR does not end when a prospect is shown the property of another firm.

Under the Junk Fax Prevention Act, which of the following is TRUE of persons who send faxes? 1. they need not provide a way for the recipients to opt out of getting more faxes 2. they may use recipient addresses they receive from a fax-spamming company 3. they may send faxes only between 9:00 am and 5:00 pm 4. they must have an established business relationship with the recipients

4. they must have an established business relationship with the recipients Since 2005, the amended law has allowed unsolicited fax advertising if the sender has an established business relationship (EBR) with the recipient and the recipient has given the fax number to the sender with permission to use it.

How long to licensees keep copies of all such agency?

5 years from the date they are signed

Duties and Liabilities of Principals Pages 203-204

>The principal owes an agent the duties of good faith and compensation, whether the principal is the seller or the buyer. >A property owner has a duty not to misrepresent the property being sold or rented, and may have a duty to disclose known defects or other material facts to the prospective purchasers or tenants.

First substantial contact Pages 206-211

>When a customer, whether a prospective seller or buyer, begins to act as though an agency relationship exists and to disclose to a broker particular need, desires or wants about property to be sold or purchased or any confidential personal information about him or herself, such as financial circumstances, family matters, employment situations, etc. One of the primary goals of agency disclosure is to prevent a customer from revealing personal or confidential information to a broker before the customer is aware of who the broker represents and the duties the broker owes to his or her principal. >If the first contact is by telephone, the broker should provide the brochure no later that three days from the date of first substantial contact by mail or electronically. >The broker should advise the client to refrain from revealing confidential information until the broker and customer/client have had an opportunity both to review the brochure and agree on the capacity in which the broker will work with the individual. >Disclosure should always occur prior to searching for or showing property to a buyer. >Dual agency should be explained at the earliest possible time.

before

A "First signature on Dual Agency Consent form" acts as permission to show company inventory and must be signed [before, after]

before

A "Second signature -- affirmation at time of offer" acts as permission to sell company inventory and is reaffirmed by the parties [before, after] signing the contract.

dual

A _______ agency company has more than three licensees and will allow the broker to represent both the seller and buyer within the same transaction when appropriate consent is in place.

Single

A ________ -agency company offers to represent either buyers or sellers, but not both in any given transaction.

Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE act)

A bill covering, among other things, a notional licensing and regulatory program for mortgage loan originators (MLO)

In MD who is the designated as the dual agent and how do they handle each client?

A branch manager designated to be the dual agent They will select a intracompany agents for each client

Which statement concerning representation is TRUE?

A branch manager, who is designated to be the dual agent, will select ICAs for each client.

Which of the following arrangements does not qualify as an agency relationship in real estate transactions?

A broker has a relative unlock a property so a prospective buyer can examine it

Reasonableness Standard Pages 181-182

A broker is not required to discover and disclose all material facts. If a broker is not aware of a particular material fact, then that broker may or may not have a duty to discover that fact, depending upon whether a reasonably knowledgeable and prudent broker would have discovered the fact. If a broker has no knowledge of a fact and has not duty to discover the fact, then she has not duty to disclose it, even if it is material. An example is structural damage that would only be detected by a trained or experienced inspector.

Volunteer?

A broker or a sales associate of the broker (licensee) who causes or completes such a course of action without a contract or without having been promised payment is a volunteer and may not legally claim compensation.

dual agents

A broker who represents not only the sellers but also the purchasers in the same property transaction. All parties must sign a completed Consent for Dual Agency form for this to be conduct lawfully. In Maryland, only a broker can function; as a dual agent; salespersons and associate brokers can be assigned to either party as ICAs.

dual agents

A broker who represents not only the sellers but also the purchases in the same property transaction. All parties must sign a completed Consent for Dual Agency form for this to be conducted lawfully.

confidential information

A brokerage relationship disclosure form must be provided to the consumer (seller of buyer) at first substantial contact and before the broker receives any _____. 1. When representing a buyer, brokers must disclose this to the seller or the seller's representative before showing the property. 2. When representing a seller, brokers must disclose this to the buyer or the buyer's representative before scheduling a property showing

Negligent Omission Pages 180-181

A brokers has a duty to discover and disclose to all parties material facts relating to the transaction about which the broker reasonably should have known. This is a brokers's unintentional failure to discover and disclose (forgets or does not relay information in the listing) a material fact (such as a property defect) about which the broker had no actual knowledge, but should have reasonably known. This applies to information that is generally not a material fact, but the broker knows is a special concern to a party.

single-agency company

A company that either represents the buyer or the seller, but not both, in any given transaction.

client

A consumer who signs an employment contract with a broker becomes the broker's ________.

Listing Agreement

A contract between an owner (as Principal) and a real estate broker (as agent) by which the broker is employed as agent to find a buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission

Implied Agreement

A contract under which the agreement of the parties is demonstrated by their acts and conduct.

Which party would NOT need a real estate license to perform the following activities in Maryland? A daughter whose father granted her power of attorney to sell his home A developer who regularly subdivides and sells vacant lots A freelance "neighborhood specialist" who is paid to scope out properties for out-of-town parties An attorney who practices real estate as part of her regular duties

A daughter whose father granted her power of attorney to sell his home Parties who regularly engage in real estate activities, such as managing properties, selling lots, etc. typically require a real estate license in Maryland. A person granted a POA to sell a single property doesn't need to be licensed.

How must a firm use their designated name in advertising

A designated name is the name that appears on the license certificate of a licensee. Whenever brokers or affiliates or individuals acting on behalf of that firm advertise they must meaningfully present the designated name of that broker license see the firms name as identified to the commission. When affiliates publish their own name in an advertisement it must be exactly as shown on their pocket card or license certificate. If the licensee wants to use a variation of that name or a nickname it must be registered online with a commission along with the $25 name change cost. Advertising in a team name has to be connected to the brokers designated name and include at least one team members designated name.

Latent Defect

A hidden structural defect that could not be discovered by ordinary inspection and that threatens a property's soundness or the safety of its inhabitants. Some states impose on property sellers and real estate professionals a duty to inspect for and disclose latent defects.

A debt to income ratio measures the monthly mortgage payment plus any other regular installment debt payments against the monthly income.

A housing expense to income ratio measures the monthly mortgage payment alone against the monthly income.

Balloon payment abuses

A lender may make a low monthly payment loan that is either partially amortized or interest-only, without disclosing to a borrower that a large balloon payment is due later. **When the balloon payment is due, borrowers will be left with the choice of foreclosure or an expensive refinance.

Who is the fiduciary in an agency relationship and what can they do?

A licensee is a fiduciary and can speak for the client in real estate transactions

seller's agents

A licensee who is affiliated with the listing broker for a property. A seller's agent represents the sellers (the client) but may also assist a prospective buyer (a customer).

seller's agents

A licensee who is affiliated with the listing broker for a property; represents the sellers (the client) but may also assist a prospective buyer (a customer).

buyer's agents

A licensee who is working under a written agreement between the licensee's broker and the buyer's (the licensee's clients) in the purchase of real estate.

buyer's agents

A licensee who is working under a written agreement between the licensee's broker and the buyers (licensees clients) in the purchase of real estate. Buyer representation only occurs with a written buyer's agreement because presumed agency is no longer allowed

subagents

A licensee who works for a real estate firm other than the one that listed the property. Although not part of the listing company, the subagent still represents the seller (previously known as cooperating agent) through and under the listing broker. The subagent represent the seller client and assists the prospective buyer (the customer) acquiring the property

subagents

A licensee who works for a real estate firm other than the one that listed the property. Although not part of the listing company, these licensees still represent the seller through and under the listing broker; represents the seller client and assists the prospective buyer (the customer) in acquiring the property.

branch office manager

A manager, with at least three years' licensed experience, who oversees a secondary business location where real estate business is conducted. Their supervision is in addition to the broker.

Universal agent

A person empowered to do anything the principal could do personally. They have authority to act on behalf of the principal in an unlimited way

attorney-in-fact

A person given the authority to act on behalf of another under a power of attorney.

Marilyn Prohibition on commercial fax solicitations

A person may not intentionally make an electronic transmission for the purpose of commercial solicitation. Commercial solicitation means the unsolicited electronic or telephonic transmission in the state to a device to encourage a person to purchase goods, real property, or services there is a maximum penalty of $1000 for each such solicitation this does not include a transmission made in the course of continuing prior negotiations in a pre-existing business relationship with the person receiving the transmission

What is a customer?

A person that has an agent represent them If you are a buyer's agent, then your client (the buyer) is a customer of the seller's broker

salesperson

A person who performs real estate activities while employed by or associated with a licensed real estate broker.

place of business

A place of business in Maryland is required for all licensed brokers. It must be an office where regularly transacted real estate business occurs.

Buyer Representation Agreement

A principal-agent relationship in which the real estate professional acts on behalf of the buyer, usually as an agent, with fiduciary responsibilities to the buyer.

Designated Agency

A process that accommodates an in-house sale in which two different agents are involved. The broker designates one agent to represent the seller and one agent to represent the buyer.

7

A real estate broker has ______ business days after an acceptance of a contract to deposit trust money that is managed by the real estate broker.

Office signs criteria

A real estate broker must display a sign clearly visible to the public at each office and branch office that the real estate broker maintains the sign must include the worst Realty, real estate, or were authorized by the respective trade associations realtor or a realtist

Designated Agent

A real estate professional authorized by a broker to act as the agent for a specific principal in a particular transaction; also may be called assigned agent or appointed agent.

Buyers Agent

A real estate professional who is under contract to locate property for a buyer and represent the buyer's interests in a transaction.

team leader

A real estate team is required to have a team leader who is chosen by the team members and reports to the manager and the broker.

What is self-dealing?

A realtor or broker who acts in his own best interest in a real estate transaction rather than in the best interest of his client, to whom he owes fiduciary responsibility Ex. Sellers are willing to sell their home at a discount to an informed buyer made aware of the asbestos issue in the basement. Lionel (real estate agent) decides to make a heavily discounted offer on the home himself- minus his commission- and present the offer under his mother's name

Undisclosed dual agency

A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties. Undisclosed Dual Agency is illegal in all states.

Fiduciary Relationship

A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.

Category of representation or five roles played by licensees in Maryland real estate brokerage

A sellers agent is the listing broker and the agents license affiliate handling the property number to a sub agent is a property transaction that works for real estate firms other than one that listed the property the sub agent still represents the seller although under the listing broker number three a buyers agent is a broker who has a written agreement to represent a buyer in the acquisition of real estate dual agents number three represent both the seller client and the buyer client in the same property transaction and number five intra-company agent must be used when a firm performs residential dual ageny

Intra-company agents

A subtype under dual agents in which pairs of licensees affiliated with and appointed by a broker to deliver client-level service in a real estate transaction listed with their company in a dual agency relationship.

Define a team in real estate

A team is made up of two or more licensees i.e. sales persons and or associate brokers and their assistance and employees who work together on a regular basis to provide real estate services. Outings license members must be licensed under the same broker and have their licenses retained in the same office

subagent

A) A broker who is acting as a agent of an agent is a ___. B) The firm is the agent of the consumer-principal, and all the brokers associated with tht firm are automatically ____ of the same principal. C) A firm with all its licensees could also be a seller ___ if the firm is working with an unrepresented buyer as a customer and showing another company's listing; if the listing firm allows _____, the showing/selling firm would be a ___ of the listing firm, and through it, a ____ fo the seller

dual agent

A) A firm or a broker who represents both a seller and a buyer or a landord and a tenant in the same transaction is a dual agent. B) A firm or a broker acting as a dual agent must have a informed written consent signed by both parties. C) A firm or individula broker acting as a ____ owes fiduciary duties equally to both parties; there is considerable debate about how one can "serve two masters"

The broker has the duty to exercise skill and care which includes A. timely presentation of all written offers and counter offers. B. keeping only the seller fully informed regarding the transaction. C. keeping only the buyer fully informed regarding the transaction. D. keeping pertinent information to oneself if it may have negative effects on the transaction.

A. B, C and D may be waived, A cannot.

A ............ governs the relationship when a buyer's agent works to obtain a property listed by another agent on behalf of the client. A. Buyer Representation Agreement B. Listing Agreement C. Real estate license D. Deed

A. Buyer Representation Agreement

A buyer's agent may sign which of the following agreements with their client? A. Buyer Representation Agreement B. Exclusive right to sell agreement C. Net listing agreement D. All of the answer choices provided are correct

A. Buyer Representation Agreement As the name implies, a Buyer Representation Agreement is signed between a buyer and a broker.

The Oklahoma Broker Relationships Act requires which of the following is to be presented to either buyers and/or sellers prior to entering into a real estate transaction. A. Disclosure of broker duties. B. Lead paint disclosure. C. Home Warranty Plan. D. None of the Above.

A. Disclosure of broker duties.

4 of 10 - All of these questions could help you determine a prospect's capacity to make a purchase except which one? A. How much do you have in your savings account? B. Have you been pre-qualified or pre-approved by a lender yet? C. Do you need the equity from your current home for the new home purchase? D. Where do you and your spouse work?

A. How much do you have in your savings account?

5 of 10 - A buyer calls your office to inquire about a property he saw advertised. He sounds really excited about this property. Where is it that he likely found out the property was for sale? A. On the Internet B. In a classified ad C. From the For Sale sign D. From a direct mail flier

A. On the Internet

Under the 2013 Oklahoma Broker Relationship law, vicarious liability exists under which of the following? A. vicarious liability has been removed when providing the basic duties required in the act B. transaction broker C. written transaction broker agreement D. subagent of the seller

A. Vicarious liability has been removed when providing the basic duties required in the act

Customer level services

According to Komar and NARA code of ethics the obligation of absolute Fidelity to the clients interest as primary but it does not relieve the licensees from the statutory obligation to deal fairly with all parties to a transaction which is also to the customers. Customer should receive honest and fair dealing's, reasonable care, prom presentation of all offers and counter offers, honest answers to our questions except those that are properly declared to be confidential Aliti tea by the law, and affirmative voluntary disclosure of material facts aka ministerial acts

record keeping requirements

According to Maryland State law, deeds, mortgages, leases, and ground leases for longer than seven years must be recorded.

What must a place of business as a relates to a realty firm look like

According to Maryland is required by the brokers ask for all brokers licenses to be an office or headquarters where they and their employees regularly translate transact real estate business. It must have a specific street address keep records including records of the brokers escrow account kept in a secure location. It does not allow a commercial answering service mechanical recording devices or maildrop to satisfy the office location

Occurs when you intentionally deceive a person by misrepresenting a material fact that indices the person to rely upon fact. Intentional misrepresentation.

Active Fraud

............ happens when a real estate licensee makes a claim that they know is false.

Active fraud

Intentional misrepresentation is also known as...?

Active fraud

Code of Ethics

Addresses licensees' relations with the client, the public, and with other licensees.

Code of MD Regulations (COMAR)

Administrative law that includes regulations that govern the practive of real estate brokerages and implement the Brokers Act.

What is advertising in a brokerage firm

Advertising means all oral, written, and visual advertising down by the licensee or by others I'll be half of the licensee including telephone for solicitation by individuals or five machine. The commission standards apply to all advertising. This includes correspondence, mailing's, newsletters and brochures, business cards, sale or lease sign riders, promotional items, automobile signage, telephone directory listings, radio and television announcements, television solicitations telephone solicitations, video promotions, Internet voice overs or websites.

Income ratios

After calculating how much stable monthly income a loan applicant has, the lender must determine how large a mortgage payment that monthly income will support. * Remember, the lender is concerned not only about the quality of the applicant's income, but also about the quantity: Does the applicant earn enough income to make the monthly mortgage payment

Occurs when one person hires another to represent them for a lawful transaction involving a third party, the customer.

Agency Law

Single Agency

Agency relationship in which the agent represents only one party to a transaction.

universal agency

Agent is authorized to legally replace the principal. (Can accept/reject offers and sign for principal. Complete authority)

special agency

Agent is authorized to perform a particular act without the ability to bind the principal. (Can't bind buyer, seller)

general agency

Agent is authorized to perform acts associated with the continued operation of a particular business. Agent has limted ability to bind the principal. (Can Bind Firm)

unrepresented

Agent working with an ___ consumer (third party) A) Upon review of the various agency choices available, a consumer may choose to remain ___ in a real estate transaction-even if a real estate agent is representing the other party (fsbo) 1) The broker and the firm owe third party honest and fairness in all dealings. 2) Licensees ust clearly disclose their agency status to the unrepresented consumer no late than first substantial contract 3) all material facts known by the broker must be disclosed to the third parties. 4) Agents are obligated to tell their principal any information they learn about the customer that might ipac the principal's decision, including the customer's confidential informatioin. 5) The broker/agent will not be required to disclose potential benefits to the customer.

disclose

Agents duties to third parties include: must ____ material facts that are known or should be known, even if the principal asks the agent to lie or keep silent, Must _____ properties being sold "as is", and must _____ all material facts but not interpret impact or meaning

5

All documents from real estate transactions and attempted transactions must be maintained for at least ______ years.

factors impact the loan applicant's creditworthiness.

All of these factors fall into one of three categories: income, net worth, and credit reputation.

What is active fraud?

Also known as "actual fraud" INTENTIONAL MISREPRESENTATION!!! Intentionally, a real estate agent licensee makes a claim that they know is false Ex. Lionel (real estate agent) has a buyer who is seeking a home with at least 2,500 finished square feet The property Lionel suggests consists of 2,700 square feet, but 900 square feet of it is an unfinished basement that requires remediation to remove asbestos Lionel assures the buyer that the home contains 2,700 square feet of "move-in ready, finished space"

What is passive fraud?

Also known as "negative fraud" A real estate agent licensee purposely fails to disclose material information impacting a real estate transaction Ex. Lionel is a real estate agent representing seller Morty. Morty tells Lionel that the basement contains asbestos and cannot pay for the removal Morty is willing to accept a lower offer on the home, in exchange for an "as-is" offer where the buyer will handle the asbestos Lionel tells Morty to keep that information to himself. Lionel does not want to compromise the sales price and his commission by revealing this material defect They are committing passive fraud by failing to disclose a material defect in an attempt to trick someone into buying a defective home at full market price

Express agency

An agency relationship based on a formal agreement between the parties (oral or written agreement)

Express Agency

An agency relationship based on a formal agreement between the parties.

Listing agreement

An agency relationship between a seller and a sponsoring broker is generally created by a written employment contract, which authorizes the sponsoring broker (or designated licensees) to find a buyer or a tenant for the owner's property.

Allocation of Customers or Markets

An agreement among real estate companies to divide their markets and refrain from competing for each other's business. This is Illegal under antitrust laws.

Group Boycott

An agreement by two or more sellers to refuse to deal with a particular person or firm. This is illegal under antitrust laws

Buyer Representation Agreement

An express agency relationship between a buyer and a broker is created by this

independent contractors

An individual retained to perform certain services under a broker's or manager's supervision but not subject to work day constraints.

customer

An individual who has not secured rights of representation and can only be assisted by a license rather than represented.

customers

An individual who has not secured rights of representation and can only be assisted by a licensee rather than represented. Customers are entitled to honesty, fairness, timely presentation of offers, and disclosure of materials facts

Net worth

An individual's net worth is his bottom line—what he's worth in dollars and cents. To calculate someone's net worth, you simply subtract his liabilities from his assets.

Nonagent

An intermediary between a buyer and a seller, or a landlord and a tenant, who assists one or both parties with a transaction without representing either. Also known as a facilitator, transaction broker, transaction coordinator, and contract broker.

Express Agreement

An oral or written contract in which the parties state the contract's terms and express their intentions in words.

trust money

An upfront payment entrusted to a real estate broker or a title company to hold for the sake of a real estate transaction; also known as an earnest money deposit.

The role of a broker

And every Maryland real estate firm it only has one individual who is the broker. A licensed broker may provide services to any of these forms of business organization if they have been employed by the organization and have been designated as the broker. Owners may hire a broker under whose license the farm is to be operated. The broker is allowed to be the sole proprietor, partner, stockholder, board member, officer, or owner but they do not have to be. Before delivering brokerage services brokers must submit to the real estate commission notice of their intention to do so

Unlicensed persons may do the following

Answer the telephone at four calls with licensee, submit listings and changes to a multiple listing service, follow up on long commitments after a contract has been negotiated, assemble documents for closing, secure documents for court houses, public utilities and so forth, have keys made for the company listings, right in place as subject to the review and approval of a licensee and supervising broker, type contract forms at the direction of an approval of the broker or licensee, compute, commission checks, place signs on property, arrange the date and time of a home, termite and Wale septic inspection, mortgage application, pre-settlement walk-through and settlement, prepare flyers,, Act as a courier service, schedule an open house, schedule appointments for licensee, accompany a licensee to an open house, and contact clients and potential clients use an online communication methods such as web-based check in order to accomplish one of the previously listed tasks

Mike, a salesperson with Helping Hand Realty, listed Yvonne's home for sale. Brett, another salesperson with Helping Hand, has a buyer interested in purchasing Yvonne's property. Antoine, Helping Hand's broker, makes sure that both Mike and Brett have re-affirmed their clients' consent to dual agency. Who is the dual agent in this scenario? Antoine Brett Mike Yvonne

Antoine

What is a material defect?

Any fact that may have a significant and reasonable impact on the market value of the property is material

Who may use a listing agreement form published by a multiple listing service?

Any member of the organization that operates that listing system

Real Estate Brokerage Services

Any service relating to selling, buying, exchanging, or leasing real estate, including collecting rent on its use and the business of subdividing land and selling the subdivided lots

Articles has some number of Standards of Practice

Article 1 - 16 Standards of Practice Article 2 - 3 Standards of Practice Article 3 - 10 Standards of Practice Article 4 - 1 Standards of Practice Article 5 - 0 Standards of Practice Article 6 - 1 Standards of Practice Article 7 - 0 Standards of Practice Article 8 - 0 Standards of Practice Article 9 - 2 Standards of Practice Article 10 - 4 Standards of Practice Article 11 - 4 Standards of Practice Article 12 - 13 Standards of Practice Article 13 - 0 Standards of Practice Article 14 - 4 Standards of Practice Article 15 - 3 Standards of Practice Article 16 - 20 Standards of Practice Article 17 - 5 Standards of Practice

Article 1 Standards of Practice

Article 1 has 16 Standards of Practice. In summary, they are as follows: 1-1. REALTORS® remain obligated to the duties of the Code when acting as principals. 1-2. The duties imposed by the Code of Ethics encompass all real estate-related activities and transactions whether conducted in person, electronically, or through any other means. This Standard goes on to define the terms "client," "customer," "prospect," "agent," and "broker." 1-3. REALTORS may not deliberately mislead the owner as to market value. 1-4. REALTORS® may not mislead buyers or tenants as to savings or other benefits that might be realized through use of their services. 1-5. REALTORS® may represent both parties in the same transaction only after full disclosure to and with informed consent of both parties. 1-6. REALTORS® must submit offers and counteroffers objectively and as quickly as possible. 1-7. Listing brokers will continue to submit all offers and counteroffers until closing or execution of a lease unless the client has waived this obligation in writing but will not be obligated to continue to market the property after an offer has been accepted. 1-8. Buyer agents or brokers will submit all offers and counteroffers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. 1-9. Preservation of confidential information continues after termination of agency relationships or any non-agency relationships recognized by law. 1-10. REALTORS® will competently manage the property of clients with due regard for the rights, safety and health of tenants and others lawfully on the premises. 1-11. REALTORS® employed to maintain or manage a client's property must exercise due diligence and make reasonable efforts to protect it against reasonably foreseeable contingencies and losses. 1-12. When entering into listing contracts, REALTORS® must advise sellers/landlords of: Their company policies regarding cooperation and the amount(s) of any compensation that will be offered to any cooperating agents The fact that all cooperating agents, even if compensated by listing brokers or sellers, may represent the interests of buyers Any potential for listing brokers to act as disclosed dual agents 1-13. When entering into buyer/tenant agreements, REALTORS® must advise potential clients of: Their company policies regarding cooperation The amount of compensation to be paid by the client The potential for additional compensation from other brokers, the seller/landlord or from other parties Any potential for the buyer/tenant representative to act as a disclosed dual agent The possibility that sellers or sellers' representatives may not treat the existence, terms, or conditions of offers as confidential 1-14. Fees for preparing appraisals or other valuations are not contingent upon the amount of the appraisal or valuation. 1-15. REALTORS®, in response to inquiries from buyers or cooperating brokers will disclose the existence of offers on the property with the seller's permission. 1-16. REALTORS® will not use, or permit others to use, listed or managed property on terms or conditions other than those authorized by the owner or seller.

Article 11

Article 11 states that the services which REALTORS® provide to their clients and customers must conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage.

Article 3 Standards of Practice

Article 3 has 10 Standards of Practice. In summary, they are as follows: 3-1. REALTORS®, acting as exclusive agents or brokers of sellers/ landlords, establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. Compensation terms must be determined by cooperating brokers before beginning efforts to accept the offer of cooperation. 3-2. Any change in compensation offered for cooperative services must be communicated to the other REALTOR® prior to the time that REALTOR® submits an offer to purchase/lease the property. After a REALTOR® has submitted an offer to purchase or lease property, the listing broker may not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction. 3-3. Standard of Practice 3-2 does not preclude the listing broker and cooperating broker from entering into an agreement to change cooperative compensation. 3-4. REALTORS®, acting as listing brokers, have an affirmative obligation to disclose the existence of dual or variable rate commission arrangements, that is listings where one amount of commission is payable if the listing broker's firm is the procuring cause of sale/lease and a different amount of commission is payable if the sale/lease results through the efforts of the seller/ landlord or a cooperating broker. 3-5. It is the obligation of subagents to promptly disclose all pertinent facts to the principal's agent prior to as well as after a purchase or lease agreement is executed. 3-6. REALTORS® must disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation. 3-7. When seeking information from another REALTOR® concerning property under a management or listing agreement, REALTORS® must disclose their REALTOR® status and whether their interest is personal or on behalf of a client and, if on behalf of a client, their relationship with the client. 3-8. REALTORS® cannot misrepresent the availability of access to show or inspect a listed property. 3-9. REALTORS® must not provide access to listed property on terms other than those established by the owner or the listing broker. 3-10. The duty to cooperate established in Article 3 relates to the obligation to share information on listed property, and to make property available to other brokers for showing to prospective purchasers/tenants when it is in the best interests of sellers/landlords.

Liabilities

As we said earlier, to determine net worth, liabilities are subtracted from assets. So after listing all her assets, a loan applicant must list all her liabilities. * Liabilities include balances owing on credit cards, charge accounts, student loans, car loans, and other installment debts. Other debts, such as income tax that is currently payable, are also considered liabilities. * If the loan applicant owns real estate, the remaining principal balance on the mortgage and the amount of any other liens are considered liabilities.

Article 2

As you might remember, Article 2 belongs to the section of the Code that deals with the duties agents have to clients and customers. Article 2 says that REALTORS® must avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. That being said, REALTORS® do not have any obligation to do any of the following: Discover latent defects in the property. Advise on matters outside the scope of their real estate license. Disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law.

Additional advertising requirements for associate brokers and sales associates in their advertisements

Associate brokers and sales person is providing any contact information including their individual telephone numbers or email addresses and advertisements must also provide the telephone number of the broker or branch office manager. There is active enforcement of those requirements. Agents who include their email when promoting business on social media should also include a number that is identified as an office number. License category is not required to be used in the advertisement.

When must a licensee present the UWREAR agency disclosure form?

At a first face-to-face, if the other party does not have representation

Adesha made an offer on a three-bedroom townhouse in Hanover on April 5. The sellers accepted her offer on April 6, and all signatures were finalized by April 7. Adesha still hasn't received the property disclosure/disclaimer statement. Until when can Adesha rescind the contract without penalty? April 12 April 14 April 17 At any time before she receives the disclosure/disclaimer statement

At any time before she receives the disclosure/disclaimer statement

How much of the farm should the broker ownership control

At least 51%

Dual agency at the time of agreement

At the time of entering into a written buyer representation agreement buyers may or may not choose to sign a consent for dual agency form agreeing to the dual agency that could arise if they were showing a property listed with their buyer some lash brokers farm. They can revoke this consent at any time before actually entering into a sales contract that involves dual agency. Licensee should only show the client buyers properties listed with their firm when owners have consent it to dual agency

Except as may be provided in a written brokerage agreement between the broker and a party to a transaction, the broker owes no further duties or responsibilities to the party after termination, expiration, or completion of performance of the transaction EXCEPT A. to never reveal the commission rate. B. to keep confidential all confidential information received by the broker during the broker's relationship with the party. C. never reveal the price at which the property sold. D. to never disclose the brokerage relationship between the broker and the party.

B. A broker is required to keep all confidential information as confidential information even after the transaction is terminated.

A broker has the duty to A. represent only one party in a transaction. B. treat all parties with honesty and exercise reasonable skill and care.. C. represent only the seller in the transaction. D. represent only the buyer in the transaction.

B. All brokers have the duty to treat all parties with honesty and exercise reasonable skill and care.

When assisting one party in a transaction, a broker may A. act as a buyer's agent. B. do so after disclosing the broker's duties and responsibilities. C. do so as a single-party broker with only an oral agreement. D. work as a seller's agent only after signing a listing agreement..

B. All brokers have the duty to treat all parties with honesty and exercise reasonable skill and care.

Brokers that do not enter into any type of written agreement with the party or parties are considered A. Ostensible Agents. B. Brokers.. C. Seller's Agents. D. Limited Agents.

B. Brokers..

9 of 10 - Most buyers who see a newspaper ad that interests them: A. Drive by the property. B. Call your office. C. Check out your Internet site. D. Visit your office.

B. Call your office.

8 of 10 - Which of the following would be the least desirable phone handling technique? A. Answer a question with a question when possible. B. Give as much detailed information about the property as you can. C. Ask the caller "when" not "if" he or she wants to see the property. D. Arrange to meet the prospect at your office.

B. Give as much detailed information about the property as you can.

A broker shall disclose to the party for whom the broker is providing services that the party is A. Vicariously liable for the acts or omissions of the broker. B. Not vicariously liable for the acts or omissions of the broker. C. May be vicariously liable for the acts or omissions of the broker. D. No such disclosure is needed.

B. Not vicariously liable for the acts or omissions of the broker.

Under the provision of the broker relationship act, the party A. is vicariously liable for the acts or omissions of the licensee providing broker services.. B. is not vicariously liable for the acts or omissions of the licensee providing broker services. C. is vicariously liable for the acts or omissions of the licensee providing broker services only when the party initiates the relationship with the broker.. D. under the provisions of the Broker Relationship Act, vicariously liable is not an issue that must be discussed or disclosed.

B. is not vicariously liable for the acts or omissions of the licensee providing broker services.

Employment agreements need to

Be in writing and signed all necessary parties, state consideration or something of value specified as a dollar amount or as a percentage of the sales price, state when consideration is earned and paid, state a definite termination date, defined the duties and authority of the agent, including responsibilities of the client, include a require a cancellation clause, and require the copies be distributed to all signers. Consumer who size an employment contract with a broker becomes the brokers client note that the legal term for client is principal.

Respect for Property

Be responsible for everyone you allow to enter listed property. Never allow buyers to enter listed property unaccompanied. When showing property, keep all members of the group together. Never allow unaccompanied access to property without permission. Enter property only with permission even if you have a lockbox key or combination. When the occupant is absent, leave the property as you found it (lights, heating, cooling, drapes, etc.). If you think something is amiss (e.g., vandalism) contact the listing broker immediately. Be considerate of the seller's property. Do not allow anyone to eat, drink, smoke, dispose of trash, use bathing or sleeping facilities, or bring pets. Leave the house as you found it unless instructed otherwise. Use sidewalks; if weather is bad, take off shoes and boots inside property. Respect sellers' instructions about photographing or making video of their properties' interiors or exteriors.

Which of these incentives would be legal according to Maryland license law? After hosting a buyer education seminar, Khaaliq announces that anyone who signs an agency agreement with him that day will be entered to win a long weekend at a ski resort. Ben runs a "Spring into Summer" ad offering sellers a reduced commission rate for the next three months. Karen runs a "Clean Up the Competition" ad saying she'll buy a new washer/dryer set for the first 10 buyers who sign an agency agreement with her. Stanley's client can't decide between two properties; Stanley knows the first property is best for his client, so he offers to waive his admin fee if his client offers on that one.

Ben runs a "Spring into Summer" ad offering sellers a reduced commission rate for the next three months. Licensees can't use contests or offer prizes to influence someone to enter into a brokerage agreement. Nor can they use them to influence a buyer to make an offer. Incentives may be offered provided they are available to all on the same basis.

Salesperson Katie represents seller Suzie in a transaction. Bob and Janine are buying Suzie's home, and they're not represented. To whom does Katie need to disclose her agency relationship using the Understanding Whom Real Estate Agents Represent form? Bob and Janine only Suzie and either Bob or Janine Suzie, Bob, and Janine Suzie only

Bob and Janine only

Bridget represents Colin, who's buying Hugh's house. Darcy represents Hugh. Hugh completed and signed the Residential Property Disclosure/Disclaimer Statement, and Colin reviewed and signed it. Hugh and Colin also signed the Section 10-702 notice form, and their agents made sure a copy of the form and the disclosure statement were included in the finalized contract. What's missing from this scenario? Only the disclosure statement needs to be included in the final contract. Only the notice form needs to be included in the final contract. The buyer and seller don't need to sign the notice form, the licensees do. The licensees also need to sign the notice form.

Both the buyer and seller must sign the notice form to acknowledge that they have received the notice and that the licensee(s) have informed them of their rights under Section 10-702 of the Maryland Code. The licensees must also sign.

3

Branch office managers must have at least _____ years experience as a real estate salesperson.

3 Levels of MD Real Estate License

Broker, Associated Broker, Salesperson

Which of the following statements is true about brokers?

Brokers assist in negotiating agreements between buyers and sellers.

How to sales persons and associate brokers affiliate with a brokerage firm

Brokers may provide brokerage services personally and or through affiliates sales person and associate brokers license under them. Such affiliates template typically are statutory non-employees or IRS qualified real estate agents but employee status is also a possibility. Such qualified real estate agents or non-employee affiliates are often called independent contractors. Any individual including a licensed associate real estate broker who provides real estate services on behalf of a real estate broker is considered a real estate sales person except one serving as bridge branch managers or team leaders license associate brokers have noMore authority than sales persons and only perform the duties of a sales person

The types of institutions broker should deposit trust funds into

Brokers must deposit all trust money in an escrow account in a financial institution located in the state whose deposits are insured by the FDIC, the national credit union administration, the state of Maryland deposit insurance phon corporation, or the Maryland credit union insurance corporation

How are clients records to be kept secure in the brokerage firm

Brokers must keep in a secured area within their office all records of trust money they required to keep copies of all real estate transaction documents folder and the cost of the brokerage activities. The records of trust money activity or available to the commission on demand. On reasonable notice a licensee must allow a representative of the commission to access the records in the licensees place of business during business hours. Failure to have trust fund records available for audit could result in a summary suspension of the brokers license.

New Home Warranty

Builder must disclose to purchasers on a State-mandated form whether they participate in a new home warranty security plan and extent of the plan

An agent who represents the buyer in a real estate transaction.

Buyer Agent

A broker who is providing broker services assisting a party in a transaction should do so A. by representing an individual party in the transaction. B. by representing only one party in the transaction. C. by not being an advocate for either party in the transaction. D. by representing only the buyer in the transaction.

C. A broker offering basic may not act as an advocate for any party. A broker facilitates the transaction.

A broker who provides broker services to one party in a transaction A. must do so by representing either the husband or wife in the transaction. B. can only do so by representing the party in the transaction as a general agent.. C. will disclose to the party that the party is not viciously liable for the broker's acts or omissions D. can only represent only the buyer in the transaction.

C. A the party is not vicariously liable when a broker is offering minimal services.

A broker has previously entered into a written brokerage agreement to provide services for both the buyer and seller. To proceed, the broker must A. Enter into a Dual Agency Agreement with both parties. B. Enter into a non-compete clause with both parties. C. Disclose that the broker will be providing services to both parties and the broker duties shall remain in place for both parties. D. Neither of these.

C. Disclose that the broker will be providing services to both parties and the broker duties shall remain in place for both parties.

6 of 10 - Which of these is not a good technique to get the name of a caller who is reluctant to give you that information? A. Offer to mail the caller a set of fliers on interesting properties. B. Ask the caller if he or she would like to receive e-mails on newly listed properties. C. Offer to show the caller a newly-listed, not-yet-advertised property, even if one doesn't exist. D. Offer to call the prospect when new listings that meet his or her criteria come on the market.

C. Offer to show the caller a newly-listed, not-yet-advertised property, even if one doesn't exist.

When must a broker, that is performing services as a broker without a written brokerage agreement, describe and disclose in writing the broker's role to the party? A. Within 3 days after acceptance by a party of a contract to purchase, lease, option or exchange real estate. B. Any time before closing. C. Prior to the signing by a party of a contract to purchase, lease, option or exchange real estate. D. None of these.

C. Prior to the signing by a party of a contract to purchase, lease, option or exchange real estate.

A broker providing services to both parties shall disclose to the parties that A. all parties to all transactions are vicariously liable for the acts of everyone involved in the transactions. B. the party is vicariously liable for the acts or omissions of any transaction broker who may become involved in the transaction. C. the parties are not vicariously liable for the acts or omissions of the broker. D. there is no risk of vicarious liability in a relationship with

C. Vicarious liability is not present in the 2013 act when offering basic services.

When assisting both parties in a transaction, a broker may A. act as a single-party broker for both parties. B. assist both parties as a disclosed dual agent. C. do so only after disclosing the broker is assisting both parties and disclose the broker's duties and responsibilities to both parties D. never act for more than one party in any transaction.

C. must disclose and describe their duties and those duties will be the same for both.

When assisting both parties to a transaction, a broker A. shall act as a transaction broker for both parties. B. will act as a transaction broker for one and an ostensible agency is created for the other. C. will disclose and describe the brokers duties and affirm that the duties are the same for both parties.. D. must withdraw from providing services to one party.

C. will disclose and describe the brokers duties and affirm that the duties are the same for both parties..

A broker shall disclose to the party for whom the broker is providing services that the party A. may be vicariously liable for the acts or omissions of a broker. B. is vicariously liable for the acts or omissions of a broker. C. will not be vicariously liable for the acts or omissions of the broker D. will be vicariously liable for the acts or omissions of the broker when the party has hired the broker to market their property.

C. will not be vicariously liable for the acts or omissions of the broker

What are the six common law fiduciary duties of an agent?

Care Obedience Loyalty Disclosure Accounting Confidentially

Arthur has been assigned by his broker, Bettina, to work with Carlos to provide buyer representation for the purchase of a property listed by Dorene, a salesperson with Bettina company. Bettina has named Dorene to represent the seller. Who is the client? Who represents the buyer and the seller? What type of agency is in this example?

Carlos is the client Arthur is intracompany agent Bettina is a dual agency broker Dorene is the intracompany agent for the seller

Which of the following is NOT an example of legal dual agency in Maryland? Chet, the managing broker, represents a seller and designates one of his associated salespersons, Chanice, to represent the buyer in the same transaction. Damon, an associate broker with Sunshine Realty, represents the property seller, and Jake, a salesperson at the same firm, represents the property buyer. Patrice, the office manager of Nest Egg Homes, appoints salesperson Sharlene to represent the seller and salesperson Butch to represent the buyer of a property listed with Nest Egg. Ruthe, an associate broker with Fortunata Realty, represents a property seller, and Lisa, another associate broker at the same firm, represents that property's buyer.

Chet, the managing broker, represents a seller and designates one of his associated salespersons, Chanice, to represent the buyer in the same transaction.

Has a legal and binding relationship with the Realtor or Broker. The Buyer Representation Agreement has been signed.

Client, or Principle

Clients are...., and customers are...

Clients are represented by customers are assisted understand the difference between client level service and customer level service is fundamental to the effective unlawful provision of real estate brokerage services. Licensees must have a client and always represent someone within the transaction. They need to clearly understand who that someone is and what duties are owed to that person.

Client level services include

Cold AC care obedience loyalty disclosure accounting and confidential Aliti. Clients receive both statutory duties that are owed to all customers and they receive additional every duties also known as magisterial acts

OLD CAR

Common law of agency specifies fiduciary duties to the principal _______.

Truth in Lending Act

Comparing loan costs is made easier by the Truth in Lending Act (TILA). This federal law requires every lender to disclose the cost of their loans in the same way. Uniformity helps borrowers compare credit costs and select the best deal.

What does Compensation for Only Sales Associates Look Like?

Compensation for sales associates is often based on a percentage of the commissions earned for the broker

Four years ago, licensee Gustav assisted a buyer in her purchase of a foreclosed three-bedroom townhome in Hanover. The buyer recently called Gustav, telling him that she filed a complaint with MREC, claiming that Gustav knew the plumbing was faulty, but didn't disclose this to her. As a result, she's racked up more than $35,000 in plumbing bills since her home purchase. Panicked, Gustav begins searching for the transaction file until his broker tells him he can stop. Why? Because the property was a foreclosure and therefore sold "as-is," Gustav was exempt from disclosing that the plumbing was faulty. Complaints must be filed within three years of the transaction date, and this sale took place four years ago. MREC doesn't have jurisdiction in this case; the buyer needs to contact the Guaranty Fund. Records only need to be maintained for three years in Maryland; after that point, no complaints may be made against a licensee.

Complaints must be filed within three years of the transaction date, and this sale took place four years ago.

Which of the following notions best explains the continued existence of the real estate brokerage industry?

Complexity, size, and long-term nature of transactions

CLUE Report

Comprehensive Loss Underwriting Exchange

beneficial owner

Concerning earnest money deposits for a real estate transaction, the owner of earnest money is the purchaser, while the beneficial owner is the seller.

Residential Lead-Based Paint Disclosures Pages 197-202

Congress passed the Housing and Community Development Act of 1992, Title X entitled "Residential Lead-Based paint Hazard Reduction Act of 1992." HUD and the EPA developed rules, authorized by this law, that were effective in 1996. The rules apply to houses constructed before 1978. >A seller or lessor must provide the purchaser or lessee with a copy of the EPA pamphlet entitled Protect Your Family from lead in Your Home and must disclose any know lead-based paint or lead-based paint hazard along with any records or reports pertaining to lead-based paint or lead-based paint hazards. >Disclosure after an offer is made allows the purchaser to review the information and amend the offer. >buyers have a 10-day period, which they may waive, to conduct a risk assessment or inspection for lead-based paint. >This applies to tenants renewing leases.

If you think vandalism has occurred at a property that is not listed with your company, whom should you contact first?

Contact the listing broker immediately.

Which of the following is NOT a relief option that the nine-member Maryland Commission on Civil Rights may order if it determines that housing discrimination has occurred? A civil penalty awarded to the state An injunction to prevent further discriminatory behavior Criminal action against the party who discriminated Training for the party who discriminated

Criminal action against the party who discriminated

To provide services to one party in a transaction, a broker A. must not enter into a written agreement to provide services to any person. B. must not enter into a written agreement to provide services to a buyer or seller. C. may enter into a written agreement to provide services if convenient. D. shall disclose and describe their duties prior to the party entering into a binding agreement.

D. A broker shall describe and disclose their duties to the party PRIOR to signing a contract.

7 of 10 - Prospects Jim and Linda arrive with agent Bill at the first showing. When Bill pulls in front of the home, Linda decides immediately that she doesn't want to see the inside. What should Bill do? A. Tell Linda that the sellers will be very disappointed if they cancel the appointment. B. Launch into your list of the home's special features and hope she changes her mind. C. Emphasize that this home is a great buy and it would be a shame for them to dismiss it without looking first. D. Call the sellers immediately and let them know you won't be coming by.

D. Call the sellers immediately and let them know you won't be coming by.

2 of 10 - Which of these statements is not true about qualifying buyers? A. You'll know how much house they can afford. B. Lenders are in the best position to qualify buyers. C. Sellers are apt to choose qualified buyers over ones who have not been qualified. D. Collecting information and pre-qualifying buyers yourself is the easiest and best approach.

D. Collecting information and pre-qualifying buyers yourself is the easiest and best approach.

A Broker is acting for both Buyer Bob and Seller Sam. Bob wants to make an offer on Sam's property. The Broker, at this point must A. Convert both Bob and Sam from the Single Party Brokerage to a Transaction Brokerage agreement. B. Convert either Bob or Sam to the Transaction Brokerage agreement and disclose to the party that agrees to convert that the broker is still acting as a Single Party broker for the non-converting party. C. Withdraw from providing services to all but one party to a transaction if neither party consents to convert.. D. Describe and disclose the broker's responsibilities and duties to each party and note they are the same for both parties prior to the signing of any offer or contract to purchase.

D. Describe and disclose the broker's responsibilities and duties to each party and note they are the same for both parties prior to the signing of any offer or contract to purchase.

10 of 10 - Sara just bought her first new home. She put 20% down and got a mortgage for the remainder. The difference between what Sara owes and what her home is worth is known as what? A. Principal B. Capital gain C. Replacement cost D. Equity

D. Equity

A broker shall have the following duties and responsibilities except, A. Disclose information pertaining to the property as required by the Residential Property Condition Disclosure Act B. Timely accounting for all money and property received by the broker. C. To exercise reasonable skill and care. D. Following ALL instructions of their party.

D. Following ALL instructions of their party.

Which of the following information shall not be considered confidential? A. That a party is willing to pay more or accept less than what is being offered. B. That a party is willing to agree to financing terms that are different from those offered. C. The motivating factors of the party purchasing, selling, leasing, optioning, or exchanging the property. D. Information that is made public or becomes public as the result of actions from a source other

D. Information that is made public or becomes public as the result of actions from a source other

The Oklahoma Real Estate Commission's rules require that disclosure should be made at what time in the transaction phase between buyers and sellers? A. The first practical opportunity. B. Before any property is shown. C. Before the buyers have made any statements they would not have given the sellers directly. D. Prior to entering into a binding agreement.

D. Prior to entering into a binding agreement.

The Oklahoma Brokerage Relationships Act provides that confidential information may not be disclosed without consent of the appropriate party. Confidential information includes A. the brokerage relationship between the parties. B. material defects in the property. C. specific information about vicarious liability. D. that a party is willing to pay more or accept less than what is being offered.

D. That a party is willing to pay more or accept less is confidential information.

In a single transaction, a licensee offering broker services may provide services to A. the buyer. B. the seller. C. both the buyer and seller. D. all of these.

D. all of these.

It is difficult to prove false advertising because the consumer has to show that the statement was...?

Deceptive

Which of the following is NOT an example of a legal agency agreement in Maryland? Cybill enters into a listing agreement with Antwon and agrees to pay him 5% of the property's purchase price. Deirdre enters into a listing agreement with Peter and agrees to pay him all of the sale proceeds in excess of the $250,000 she needs to make off of the sale of her condo. Marijka enters into a buyer representation agreement with Timothy and agrees to pay him a flat fee of $3,500 if the listing agent doesn't share the commission. Paulo enters into a buyer agency agreement with Danika and agrees to pay her 1% of the purchase price.

Deirdre enters into a listing agreement with Peter and agrees to pay him all of the sale proceeds in excess of the $250,000 she needs to make off of the sale of her condo.

Title to real property passes to the grantee when the deed is ________ and ________

Delivered, Accepted (takes place at closing)

evon and Courtney both consented to dual agency when they signed their listing agreement with Chad from Crab Shack Homes, the Eastern Shore's premiere vacation home brokerage. But when another licensee from Crab Shack presented Chad with an offer, the couple got cold claws and decided they didn't want the potential conflict of interest with dual agency and withdrew their consent. Which of the following is NOT a potential outcome? Crab Shack may terminate the listing agreement. Devon and Courtney may terminate their agency relationship with Crab Shack and find another broker. Devon and Courtney will be held to their previous dual agency consent and the transaction will continue unhindered. The buyers may find another broker to represent them.

Devon and Courtney may terminate their agency relationship with Crab Shack and find another broker.

Corita is a salesperson with Maryland's Best Realty and is slammed with clients right now; so much so that she wants another agent with her firm, Spencer, to handle listing Corita's own home. What does Spencer need to make sure to do? Disclose that he and Corita work together at the same firm. Get their broker's approval. Have interested buyer's agents contact Corita directly, since she's licensed and knows the most about the property. Split his commission with Corita.

Disclose that he and Corita work together at the same firm.

When showing property, an agent should

Do all of these. Allow the prospective buyers to bring along a friend or confidant. Try to overcome objections raised. Allow buyers a chance to confer without the agent being present. (The opposite is true).

Unlicensed person is defined

Does not holding an active sales person associate broker a broker license under the farms broker, those license under the license of another company not active in the area or another brokerage, and office administrators employed by the farm whose licenses are in active even if they have an active license in a farms referral company

Which of the following statements about brokerage relationships is TRUE in Maryland?

Dual agency is permitted only in brokerage firms consisting of three or more licensees.

Open house requirements

During an open house a licensee is no longer using the understanding Vhome real estate agents representing form for open house visitors. As of 2006 the licensee hosting the open house is required to display the open house disclosure signed provided by the Merlin real estate commission. Licensee you should print this form out 8.5 x 11" paper in color and use it as is exactly it is shown on the commission's website.

Administrative regulations/ statutory law.

Each license authority had adopted a set of administrative regulations that administer the statutory law and set operating guidelines for licensees. The regulations have the same force and effect as statutory law through if they conflict the statue will prevail.

Statutory real estate law

Each state has a license authority, a commission, department, division, board and or agrncy for real estate proffesionals

Important feature that applies to commercial electronic mail messages is that?

Email solicitations must include a meand by which the recipient can UNSUBSCRiBE from future messages.

Broker

Employing broker

The bromer for whom the salesperson works is called?

Employing broker

A sales associate (salesperson, licensee) & a emplying broker make a what kind of agreement?

Employment agreement. Even when the salesperson is an independent contractor for tax and other purposes.

If a property owner dies without a will and no heirs, the State of Florida has the authority to determine the owner. This is called what?

Escheat

Ethical Key Points

Ethical standards are a minimum standard. Best practices require that a licensee exceed the minimum standards Ethical practices must not be compromised. The mere appearance of ethical misconduct may compromise ethical standards. The ethical misconduct of one licensee reflects negativity on all licensees. The Code must be reasonably and consistently construed with the law. The Code imposes duties above and in addition to the duties imposed by laws or regulations. The Code restates certain fundamental legal principles, for example those principles dealing with contracts, agency, and fair housing

Puffing

Exaggerated or superlative comments or opinions.

This is the most common buyer's broker contract. This agreement defines broker-agent relationship, which includes the obligations of the buyer and the broker. The buyer cannot retain another broker for the duration of the contract. The broker is due a commission even if the buyer or another broker finds the house the buyer purchases.

Exclusive Right-to-Represent Contracts

Which of the following types of listing agreements allows the seller to avoid paying a commission if he sells the property without the assistance of a broker?

Exclusive agency

If you were the listing broker, which of the various listings would you most prefer?

Exclusive right-to-sell listing

Which of the following is TRUE about the Understanding Whom Real Estate Agents Represent disclosure form?

Failure to properly present the form constitutes a violation of the Brokers Act by the licensee.

Few states have mandatory educational or experience requirements for real estate salespeople and brokers.

False False, ALL states in the US have mandatory educational or experience requirements for real estate salespeople and brokers.

A buyer representation agreement is a contract that defines the relationship between a property owner who wants to sell a property and a real estate broker who is willing to help locate a buyer for that property.

False False, a buyer representation agreement is a contract that defines the relationship between a prospective buyer and a real estate broker.

Commission rates for real estate firms are usually set by the local real estate board.

False False, commission rates are set by the individual real estate firms.

In the 2006 real estate market downturn, Florida commercial properties started to lose value before residential properties.

False False, in the 2006 market downturn, Florida commercial properties lagged behind the residential properties in regards to loss of their value.

Most real estate sales associates close more than one transaction per year and make more than the average income in the US.

False False, most associates close one or less transaction per year and make less than the average income.

A broker who is "voluntarily" inactive can still receive a commission.

False False, only a broker who is active can receive a commission.

Under an exclusive-agency listing agreement, the seller owes the broker a commission if the seller sells his or her own property.

False False, only under the exclusive right-to-sell listing agreement would the seller owe a commission to the broker in this case.

The sales associate who represents the seller is called the "selling" agent.

False False, the associate who represents the buyer is called the "selling" agent. The associate who represents the seller is called the "seller's" agent.

A sales associate gets paid a commission directly by the seller at closing.

False False, the broker gets paid by the seller at closing. The broker then pays the sales associate a pre-negotiated split.

A broker working as an agent of the seller should not disclose his or her knowledge of hidden termite damage in the seller's property to potential buyers because doing so might result in lower offers for the property.

False False, the broker has to disclose all material facts to the transaction.

A buyer's broker will not negotiate a low price because it would lower the commission earned.

False False, the buyer's broker has a fiduciary duty to the buyer and has to act in the buyer's best interest.

Coldwell Banker and Century 21 are examples of multiple-listing services (MLS).

False False, these are examples of franchises

Real estate brokers are always employed by the seller.

False False, they can also be employed by the buyer.

Assume a broker lists residential lots that are located partially on a flood plain that must be filled in before a home can be built. The broker need NOT inform potential buyers that fill work is necessary.

False False, this is information that is material to the transaction and needs to be disclosed by the broker.

A murder in a house is considered "material" information in a real estate transaction and needs to be disclosed.

False False, this is not a material fact to a transaction.

Fatima, a salesperson, is hosting an open house in Annapolis for her seller client Ramona. Two interested buyers come in, and after Fatima gives them a tour they tell her they'd like her to represent them in making an offer. Since her seller client has already consented to dual agency, she gladly offers to represent the buyers and helps them write an offer right there at the open house, making sure that they also sign a Consent for Dual Agency form. What's wrong with this scenario? Fatima doesn't need them to sign the Consent for Dual Agency form since her seller client already has. Fatima isn't permitted to act as a dual agent. Fatima must wait until the open house is finished to have her new clients sign the Consent for Dual Agency form. Fatima needs to reaffirm the seller's dual agency consent before she can help the buyers make their offer.

Fatima isn't permitted to act as a dual agent. Only brokers may act as dual agents. For this scenario to be legal, Fatima would represent one side of the transaction as an intra-company agent, and her broker would appoint another licensee in Fatima's brokerage to represent the other party.

In Maryland, you could be fined up to $1,000 per solicitation if you use this method to advertise and a prior business relationship does not exist. Fax machine Flyers For Sale signs Telephone

Fax machine

Fee Packing

Fee packing refers to the practice of charging interest rates, points, or other fees that far exceed market rates and aren't justified by the level of service provided.

When you act as an agent for a buyer, your duties include what?

Finding the appropriate property for the buyer- know what they want and their requirements Negotiating an offer with the listing agent Resolve setbacks that come up in the process Recommend other professionals when needed

Dual Agents

Firms that represent sellers and prospective purchasers in teh same property transaction.

Respect for the Public

Follow the "Golden Rule": Do unto others as you would have them do unto you. Respond promptly to inquiries and requests for information. Schedule appointments and showings as far in advance as possible. Call if you are delayed or must cancel an appointment or showing. If a prospective buyer decides not to view an occupied home, promptly explain the situation to the listing broker or the occupant. Communicate with all parties in a timely fashion. When entering a property, ensure that unexpected situations, such as pets, are handled appropriately. Leave your business card if not prohibited by local rules. Never criticize property in the presence of the occupant. Inform occupants that you are leaving after showings. When showing an occupied home, always ring the doorbell or knock—and announce yourself loudly—before entering. Knock and announce yourself loudly before entering any closed room. Present a professional appearance at all times; dress appropriately and drive a clean car. If occupants are home during showings, ask their permission before using the telephone or bathroom. Encourage the clients of other brokers to direct questions to their agent or representative. Communicate clearly; don't use jargon or slang that may not be readily understood. Be aware of and respect cultural differences. Show courtesy and respect to everyone. Be aware of—and meet—all deadlines. Promise only what you can deliver—and keep your promises. Identify your Realtor® and professional status in contacts with the public. Do not tell people what you think—tell them what you know.

Team involvement and disclosed dual agency

For dual agency within a team to correctly take place the parties must have been advised in writing that the licensees are part of the same team and that the team could have a financial interest in the outcome of the transaction. The notification of dual agency within a team form is in addition to the dual agency consent form and should be presented at the time and employment contract is signed to ensure that team listings can be shown by team members to their buyer clients. Remember a sales person or associate broker cannot directLee and personally represent adverse opposing parties in Maryland residential transactions, only the broker can.

What is expected for signs on ground rent properties for brokerage firms

For sale signs displayed by licensees on private property subject to ground rent must state the amount of the annual ground rent and the full cost of capitalization if the price of the property is shown the lettering showing the ground rent and capitalization must be at least as large as the lettering showing the property sale price. Capitalization is the same for which the land could be redeemed, purchased in fee, from its leasehold owner. Maryland ground rents require the licensee obtain permissionFrom the owner according to Komar regulations. Licensee should also check local laws regarding the use of sale, directional, and open house signs on public property

What is a Franchise?

Franchisees pay an initial fee plus a percentage of their annual gross income, and in return receive things such as brand recognition, but consumers must know that each branch is independently owned and operated

Fraud

Fraud involves misrepresenting or concealing unfavorable loan terms or excessive fees, or using other fraudulent means (such as falsifying documents) to get a borrower to agree to a loan.

What are the 3 different kinds of misinterpretations in real estate?

Fraudulent - Intentionally hiding a property flaw just to make a sale Negligent - Involved knowledge of material property defects that you fail to disclose out of ignorance Innocent - You are accused of misinterpretation that you did not know about

A type of misrepresentation that is the result of intentionally hiding a property flaw just to make a sale.

Fraudulent Misrepresentation

Magisterial acts

Functions performed by a licensee on behalf of their clients only that involve the licensee's expert judgment and negotiating skills. For example: preparing a CMA for your buyer-client at time of preparing an offer or preparing a home inspection repair addendum. Only ministerial acts can be provided to someone other than your client.

Ministerial Acts

Functions performed by a licensee that do not involve negotiation, discretion, or expert judgment by that licensee. For ex: unlocking the door to provide access for an agreed termite inspection to take place. They may be performed on behalf of both clients and customers. Magisterial acts can only be provided to a client because they require expertise and judgment.

The type of deed that transfers the greatest protection for the buyer is

General warranty deed

What has to be in a deed?

Grantor's signature Legal description Words of conveyance

What is a client?

Has a legal and binding relationship with the Realtor or Broker The principal- who pays the broker for their services This is a signed agreement called a Buyer Representation Agreement that governs the relationship when a buyer's agent works to obtain a property listed by another agent on behalf of the client Conversely, the Listing Agreement for Sellers documents the relationship when an agent lists a property for sale

To be considered the procuring casuse of a sale the broker must have?

Have started or caused an uninterrupted chain of events that resulted in the sale. For example procuring cause may include activities such as conducting an open house, placing and advertisement in the local real estate advertising magazine, making the property listing available on the internet and showing the house to the buyer.

Rumi was on vacation in St. Croix when he received a written offer, via email, for his seller client's property, which had been on the market for two months with no offers. He decided to hold onto it until he got back a week later, so he could present it to his client in person. The next day, his seller client called Rumi's office to cancel the listing. When Rumi told the former client that he'd had an offer, she complained to MREC about him. What are the possible penalties Rumi could face? He could be disciplined by the commission and receive a possible lawsuit for intentional interference. None; since the client cancelled the listing, Rumi is not at fault. Rumi could be subject to disciplinary action from local board of REALTORS®. Rumi could receive disciplinary action from the commission, including jail time.

He could be disciplined by the commission and receive a possible lawsuit for intentional interference.

Stanley, a broker, received notice from the Maryland Real Estate Commission that it was summarily suspending his license. What's the most likely reason that his license was immediately suspended? He didn't provide the commission with trust account records. He failed to pay his license renewal fee on time. He failed to report that he was charged with a misdemeanor last week. He held onto an earnest money check until the offer had been accepted.

He didn't provide the commission with trust account records.

Transaction Broker

Helps both the buyer and the seller with paperwork and formalities in transferring ownership of real property, but who is not an agent of either party.

Team advertising should include

I'll team advertising was clearly show the teams connection to the brokerage firm that is a part of advertisements in the teams name must contain the name of at least one of his license members. Because there is no license issued to Team's in Maryland, an advertisement that only mentions the team name violates the requirement to advertise using the name of the real estate license. The phone number of the brokerage office is to be included in any contact information effect of 2019 teams may use the phrase and associates in their advertising as long as all other requirements are met

Respect for Peers

Identify your Realtor® and professional status in all contacts with other Realtors®. Respond to other agents' calls, faxes, and e-mails promptly and courteously. Be aware that large electronic files with attachments or lengthy faxes may be a burden on recipients. Notify the listing broker if there appears to be inaccurate information on the listing. Share important information about a property, including the presence of pets, security systems, and whether sellers will be present during the showing. Show courtesy, trust, and respect to other real estate professionals. Avoid the inappropriate use of endearments or other denigrating language. Do not prospect at other Realtors®' open houses or similar events. Return keys promptly. Carefully replace keys in the lockbox after showings. To be successful in the business, mutual respect is essential. Real estate is a reputation business. What you do today may affect your reputation—and business—for years to come.

Implied Agency

If the actions of the parties imply that they have mutually consented to an agency relationship, an implied agency relationship is formed.

Swing loan

If the property won't sell in time for closing, the lender may be willing to arrange a swing loan (or bridge loan), which provides cash to close the purchase of the new home. When the old home sells, the borrower pays off the swing loan from the sale proceeds.

may

In a multi-office company, an office manager, designated by the firm's broker [may, may not] act as the dual agent and appoint ICA's but may not serve as one of them.

Violation of the MBPA may result in criminal prosecution and the victim can bring a civil action against the mortgage broker's bond.

In addition, a violation of the MBPA also violates the Consumer Protection Act (CPA). Individuals may bring actions under the CPA for three times actual damages.

Unfair or Deceptive Acts Page 182

Include the giving of a misleading opinion or false inducement, failure to disclose a material fact, using misleading advertising and misrepresentation. This law creates a separate legal cause of action in addition to common law causes of action such as fraud or breach of contract, and a person found to be injured by an unfair or deceptive trade practice may be entitled to treble damages.

advertising

Includes all oral, written and visual promotion done by a licensee or by others on behalf of the licensee.

Quality

Income quality refers to the reliability or dependability of the source. Stable monthly income is income from a reasonably reliable source.

What is puffing?

Incredulous claims made by sellers or seller's agents to attract potential buyers Excessive exaggerating the positive points of a home Opinions rather than facts A matter of opinion aimed at attracting buyers rather than a purposeful deception NOT ILLEGAL

"Indirect" Misrepresentation Through the Agent of a Third Person

Indirect misrepresentation such as one made to a party's agent that is them passed on to the party is the same as a misrepresentation made directly to that party.

Associate Brokers

Individuals who have met the educational experience and testing requirements for becoming real estate brokers but who request licenses that authorize them to provide real estate brokerage services only under a broker with whom they affiliate as associate brokers.

clients

Individuals who have signed an employment agreement with a brokerage firm. They can now expect to be represented (not just assisted) and are owed fiduciary duties and client-level services.

clients

Individuals who have signed an employment agreement with a brokerage firm. They can now expect to be represented and are now owed fiduciary duties and client-level services

Natural persons

Individuals who may hold Maryland real estate licenses.

A type of misrepresentation that simple means that an agent is accused of misrepresentation for a problem that you didnt know about.

Innocent Misrepresentation

How does a Maryland broker's license renewal differ from a salesperson's license renewal?

Instead of having 4.5 hours of electives, brokers must take three hours of broker supervision coursework and only 1.5 hours of electives.

Lenders selection criteria

Interest rates Overall costs - APR Lock-ins Lenders competence

Beverly's broker, Marquis, has assigned her to represent the seller in an in-house transaction. Beverly's colleague, Tyrone, will be representing the buyer. What's Beverly's role in this transaction? Dual agent Intra-company agent Non-agent Sub-agent

Intra-company agent

What is a tax lien considered?

Involuntary and Specific

Site Sales

Involves an employer/employee relationship with the builder or developer. Licensees work out of an on-site sales traders or model homes that have ben converted into sales offices. These salespersons are generally not involved in listing property, but rather show lots and "spec" homes to potential buyers and write purchase contracts. This type of position often calls for a "draw"

Electronic contracting

Is a growing part of real estate practice because it quickly and efficiently integrates information in a real estate transaction between clients, lenders and title and closing agents. The transactions are conducted through email or fax and can save both time and money.

price fixing

Is a practice in which competitors agree to set or other terms and conditions for products or services rather than letting competition in the open market establish those prices. Price fixing is illegal!!!

Trust money

Is defined as a deposit, payment, or other money that a person in trust for a real estate broker to hold for the benefit of the owner or a beneficial the person getting the money owner of that money and for a purpose that relates to a transaction involving real estate in this state.

Broker Pat was so busy enjoying her semi-retired life that she failed to supervise new salesperson Dina adequately and Dina engaged in unintentional discrimination. What might happen to Pat's license?

It could be suspended or revoked.

What are acts of brokerage

It involves bringing parties together and helping them negotiate agreements in return for a fee, they merely facilitate transactions. Maryland law does not recognize or permit transactional brokerage and which licensees act Solely as a middleman

Who completes the Residential Property Disclosure/Disclaimer Statement?

It is completed by the client/seller

A license brokerage business may takr many forms as permitted by law

It may be sole proprietorship, a corporation, a limited liability company, or a partnership with another real estate broker. The business may be independent of other business or it may be part of regional or national franchise organization.

residential agency law

Law that applies to sale or lease of real property that is improved by one to four single family units; agency requirements apply for all residential transactions including residential leases of more than 125 years.

Statues

Laws established by legislative bodies, such as the Maryland General Assembly

Which advertisement most likely complies with Maryland's real estate advertising law? James's ad, which includes his firm's logo, his name as it appears on his salesperson's license, and his phone number. Katie's ad, which includes her firm's logo, her broker's name, and her name and phone number. Leslie's ad, which includes her broker's name and phone number, her firm's logo, and her name and phone number. Petra's ad, which includes her broker's name, her name, and her firm's logo.

Leslie's ad, which includes her broker's name and phone number, her firm's logo, and her name and phone number.

Artie, a real estate licensee, is a convicted felon, and although he served his time, he has had some administrative sanctions that call into question his trustworthiness to serve the public. What is the maximum sanction the MREC may impose? License revocation License suspension One year in prison Three years in prison and license revocation

License revocation The commission will revoke a license of a convicted felon if the licensee demonstrates continued issues with trustworthiness.

Who can be appointed a branch manager in a real estate firm

Licensed real estate brokers may maintain branch offices in the state. They must appoint managers for each branch office who are either associate broker or sales persons with three years of active experience. Branch office license and their renewals are for two year. There is a five dollar fee for each certificate. Licenses of all licensees register with a branch office are retained in that branch office together with a branch office license that shows among other things the name of the broker as registered with the commission and the address of the main office. Applications for branch office certificates must identify the other individuals appointed as managers of the branchOffice and be accompanied by payment of the required fees

Which of the following is NOT true regarding compensation and Maryland licensees? Licensees may not accept compensation from more than one transaction party without all parties' knowledge. Licensees may not share commissions with licensees in other states, even if their brokers know about it. Licensees may offer prizes at open houses. Unlicensed assistants may not be paid on a commission/contingency basis.

Licensees may not share commissions with licensees in other states, even if their brokers know about it.

everyone, noone

Licensees should disclose material facts to _________ and should disclose confidential client information to _________.

What are the Steps of the Real Estate Sales Process?

Listing Marketing the property and qualifying buyers Presentations and negotiations Contracts Settlement or Closing

Loan flipping

Loan fipping: Loan flipping involves reducing a homeowner's equity by charging high fees on unnecessary repeat refinances

Loan underwriting

Loan underwriting is the process a lender goes through to evaluate a mortgage loan applicant and the property she wants to buy, to determine whether the proposed loan is a good risk.

unlicensed person

MREC has strict guidelines for what an unlicensed assistant can do on behalf of a real estate licensee.

The Commission may choose to revoke or suspend any license and/or fine any person holding a license for doing any of the following:

Making any misrepresentation concerning any real estate transaction Making any false promises concerning any real estate transaction Pursuing a continued and flagrant course of misrepresentation, or making of false promises through advertising Accepting any commission from any person other than the real estate salesperson's employer Acting as a real estate broker when licensed as a salesperson Failing, within a reasonable time, to account for any moneys belonging to others Any fraudulent or dishonest dealings Failing as a salesperson to file with the Commission a written statement setting forth the name of the real estate broker by whom the licensee is employed Splitting fees with non-exempt and/or non-licensed individuals Commingling money or other property Failing to ascertain and disclose all material facts concerning every property transaction Failing to maintain a reputation for competency, honesty, truthfulness, financial integrity, and fair dealing Acquiring an ownership interest, in any distressed property that is listed with the licensee or within three hundred sixty-five days after the licensee's listing agreement for the distressed property has expired or is terminated

Which choice correctly identifies the three classes that Maryland protects in addition to the seven federally protected classes? Age, disability, and employment status Disability, sexual orientation, and gender identity Familial status, marital status, and sexual orientation Marital status, sexual orientation, and gender identity

Marital status, sexual orientation, and gender identity

Mark lives in Maryland and purchased property in Pennsylvania. His real estate agent gave him poor advice, which cost him $52,000. Which of the following is true? Mark can file a claim with the Guaranty Fund, but he can only recover $50,000 of his loss. Mark can file a claim with the Guaranty Fund to recover his loss. Mark can file a claim with the Guaranty Fund to recover his loss, but only after he has exhausted other methods. Mark cannot file a claim with the Guaranty Fund because the property purchased was in Pennsylvania.

Mark cannot file a claim with the Guaranty Fund because the property purchased was in Pennsylvania.

Payment is not the deciding factor

Maryland law now clearly states that brokerage relationships and responsibilities are not determined by which Party pays for the brokerage services within the buyers agreement the agent is authorized to except commission from the seller the buyers agent remains fully lowered loyal to the buyer who employed the broker. The payment a promise of payment of compensation to a licensed real estate broker by seller etc. acting for the seller or buyer etc. is not determinative on whether a brokerage relationship has been created or exist and does not create or determine the existence of a brokerage relationship between a broker and a seller lease or buy or less he or licensee. It is not necessary for a brokerage fee to be promised or paid to incorrectly create a brokerageRelationship with a customer

Residential property

Maryland residential brokerage relationship law applies only to the sale or lease of real property that is improved by 1 to 4 single-family units. This includes a condominium, a townhouse, or a single-family home. It also applies to residential properties that have been divided into up to four apartments. Residential brokerage relationship law applies to residential leases only when the rental is more than 125 days.Maryland. Licensees who handle residential transactions will now be required to take the three hour continuing education class called brokerage relationships and disclosure for their license renewal.

What would terminate an easement?

Merger of the two properties

Mike has been selected by his broker, Mary, to represent a buyer for the purchase of a property listed by Angela. Both Mike and Angela are high performing salespeople with Mary's firm. In this situation, which of the following is TRUE?

Mike is the intracompany agent for his buyer; Mary is not a single-agency broker; and Angela is the intracompany agent for her seller.

Amelia's portfolio is on fire! She's got four upcoming listings and each of them will list for at least $500,000. Before she can count her commissions, though, she's got some paperwork to get through. Since she wants to stay on the right side of the Maryland Property Condition Disclosure Law, which of these sellers does Amelia need to remind about completing the Residential Property Disclosure/Disclaimer Statement? Bryce, who, as the executor of his deceased mother's will, is selling her house Erica, who's selling her five-unit apartment building to an investor who will be converting it to retail space Mikey, an investor who's selling a property that he converted into a three-unit apartment building Tessa, who represents a lender that's selling a foreclosed four-bedroom ranch-style home that sits on three acres

Mikey, an investor who's selling a property that he converted into a three-unit apartment building

What is the #1 reason why brokers and agents are sued by clients and customers?

Misinterpretation of property conditions

Independent Contractors

Most licensees are hired as independent contractors. One who is rendering services, exercises an independent employment or occupation and is responsible to the employer only as to the results of her work. However, look at Section 10177(h) of the Business and Professions Code.

How does Disclosure of Agency Work?

Most states have enacted laws and regulations that require that real estate brokers and associates disclose the nature of any agency relationships at the first substantive contact with clients and customers

What are the Buyer's Agent's Duty to Sellers?

Must treat sellers fairly

A type of misrepresentation that involves knowledge of material property defects that the agent failed to disclose out of ignorance.

Negligent Misrepresentation

If members of a minority racial or ethnic group live in the neighborhood of a home you are showing

Neither you must mention this to a prospective buyer nor failure to mention the presence of the group would make you liable for any damages the buyer suffered. (It should not matter. Mentioning it could be steering).

Often, a buyer is selling one home in order to buy another (usually more expensive) home. In that case, the buyer can use her net equity in her current home as a liquid asset.

Net equity is the difference between the market value of the property and the sum of the liens against the property, plus the selling expenses. * In other words, the buyer's net equity is the money she expects to get from selling her current home.

Which type of residential listing agreements is illegal for a broker to use in Maryland?

Net lisitng

The Maryland Commission on Civil Rights consists of how many members? Four Nine Six Thirteen

Nine

Important regarding discussion with other brokers

No discussion of commission or fees should ever take place at any gathering of two or more real estate proffesionals from different brokerages.

3 of 10 - Which of the following is not an advantage of home ownership? A. Increase in property value B. Increase in equity C. Repairs and maintenance D. Tax deductions

C. Repairs and maintenance

1 of 10 - A reference list of alternative comparable properties is sometimes referred to as the: A. Cheat sheet. B. Telephone answering register. C. Switch sheet. D. Alternative list.

C. Switch sheet.

The Oklahoma Brokerage Relationships Act, A. supplements the common law of agency. B. increases a broker's fiduciary responsibilities. C. replaces and abrogates the common law of agency. D. None of the above.

C. The Oklahoma Broker Relationships Act replaces and abrogates the Common Law of Agency.

When assisting one party to a transaction, a broker shall A. only do so as a general agent. B. act as a single-party broker through a written brokerage agreement C. describe and disclose their duties to the party D. enter into an agency relationship to provide serves as a special agent.

C. describe and disclose their duties to the party

A Broker is one who: A. Can serve as an advocate for the buyer and seller in a single transaction. B. Has one party per year for the agents. C. provides broker services.. D. must enter into a written agreement with the party.

C. provides broker services..

This is what a client is called before the relationship between Realtor or broker has been made officially formal.

Customer

Fraud

Deception intended to cause a person to give up property or a lawful right.

Any broker who is "voluntarily" inactive for more than 2 years loses his or her license.

False False, any broker who is "involuntarily" inactive for more than 2 years loses his or her license.

If you sell your house and "intentionally" fail to disclose that you have covered all signs of a leaky basement by painting over the walls, you are probably guilty of a misrepresentation.

False False, this would be fraud as the intention to mislead is present.

Income:

First, the lender determines how much stable monthly income the applicant has. Then the lender decides if this stable monthly income is enough for mortgage payments on the proposed loan.

Charlie and her girlfriend, Frankie, are buying a house together. Having found the perfect home, they made an offer without first having seen the seller's property disclosure/disclaimer statement. The statement arrived two days after they entered into the contract with the seller. How many days do Charlie and her girlfriend have to rescind their offer if they find something in the disclosure that makes them uncertain about the property?

Five days

Assets - account verification

For each one of her bank accounts, the buyer signs a form allowing the lender to verify the account's balance. This form is called a "Request for Verification of Deposit."

In a deed, the words which clarify the purpose of the deed with the phrase "to have and to hold" is called a

Habendum clause

What does the consumer have to show to prove false advertising?

Has to show the statement was deceptive A representation must be motivated by a deliberate desire to deceive the consumer or general public

According to the IRS who are affiliate employees at the brokerage firm

I need the IRS code the IRS will likely consider unlicensed person's whom the affiliates hire as personal assistance to be the affiliate employees

1

In every Maryland real estate firm, no matter how many branch offices and agents it has, only ________ individual is the broker.

Fraud is behavior that is _____________________________ deceptive.

Intentionally

————-means the owner or lessor of a dwelling unit.

Landlord

supervision

MREC regulations require that brokers supervise all licensed and unlicensed affiliates with their brokerage firm.

are not

Maryland law now clearly states that agency relationships and responsibilities [are, are not] determined by which party pays for brokerage services.

reasonable skill, care, and diligence

OLD CAR: _R_

Article 1

REALTORS® will promote and protect their clients' interests. The obligation to the client is primary. However, even when serving in a non-agency capacity, REALTORS® must treat all parties honestly.

business entity

Real estate licensees are now permitted to organize as any legal business entity with the consent of their broker.

4 Subtypes of MD Real Estate License

Resident, Nonresident, Reciprocal, Temporary/For Commercial Only (Broker only)

Does a real estate broker has to charge a fee? If yes, for what

Yes, broker charges a fee for services like to buy, sell, exhange, or lease real property.

Is a broker fully responsible for the actions performed of all persons licensed?

Yesss!!! Broker is fully responsible for actions performed in the course of the real estate business by all persons licensed under the broker...

Can Court may prevent the real estate broker from a commission?

Yesss.. court may prevent the real estate broker from receiving a commission if the real estate broker knew the buyer was unable to perform.

Calculating monthly income:

You also should look at a buyer's income in monthly terms. Hourly wages can be changed into monthly income by multiplying the hourly wage by 173.33. *For example, if a buyer makes 17.50 an hour, multiply 17.50 by 173.33. The answer, $3,033, is the buyer's monthly income. *If a buyer gets paid twice a month, multiply the paycheck amount by two. For example, if a buyer gets paid $2,000 twice a month, multiply 2,000 by 2. The answer, $4,000, is the buyer's monthly income. *If a buyer gets paid every two weeks, multiply the payment by 26 to get the annual income. Then divide the annual income by 12 to get the monthly income. *For example, if a buyer gets paid $1,900 every two weeks, multiply 1,900 by 26. The answer, $49,400, is the buyer's annual income. Divide the annual income by 12. The answer, $4,117, is the buyer's monthly income.

The most commonly used credit scoring model is the FICO model.

You might also hear FICO scores referred to as Fair Isaac scores. FICO scores range from around 300 to 850. A higher score (for instance, over 700) is interpreted as a sign of creditworthiness.

What is Exclusive buyer agency?

You only receive commission if you find a property the buyer purchases

implied

___ agency is created through an agent's actions. a) Advising an unrepresented third pary, such as a listing agent who represents a seller recommending an offer price to an unrepresented buyer, is known as undisclosed dual agency. b) Undisclosed dual agency is ALWAYs illegal and could result in license revocation in NC.

single agent

___: The firm and all its licensees represent only one (single) party in a transaction. a) sell agency only (not common) b) buyer ageny only c) both sell and buyer agency practied in same firm (most common)

express

______ agreement is created by direct statement. A) Can be oral B) Only written commission agreements are enforceable

Unlicensed

__________ assistants can't show property, discuss property/contracts with the public or provide other licensed services.

The primary function of the real estate brokerage industry is to

a and b only a) match buyers and sellers of properties. b) guide buyers and sellers through the complexities of real estate transactions.

Express agreement

a contract in which the parties formally state their intention to establish an agency relationship and state its terms and conditions

The commission on a seller-broker agreement may be either a percentage of the transaction amount or

a fixed fee.

Latent defect

a hidden structural defect that would not be discovered by ordinary inspection

lease purchase option agreements

a lease agreement containing a clause that gives the tenant some power to purchase the landlord's interest in real property

A "Draw"

a monetary allowance paid to the site sales licensee by the builder or developer as an advance against future commissions earned from new home sales

sales associate

a salesperson or broker employed by a broker

equitable title

a title the buyer receives when a contract of sale has been signed by both parties

What is the maximum penalty that the Maryland Real Estate Brokers Act authorizes the Commission to impose on a licensee? a. $25,000 b. $15,000 c. $5,000 d. $1,000

a. $25,000

If a salesperson license is issued on January 2, 2016, when will it expire? a. January 2, 2016 b. September 2, 2016 c. April 1, 2016 d. March 31, 2016

a. January 2, 2016

Which of the following is NOT one of the evidences of reasonable and adequate supervision by a broker listed in the Brokers Act? a. a proven pattern of the broker's physical presence in the broker's office, 9:00 am to 5:00 pm, seven days per week b. availability of company policy and procedure manual in each office containing, among other things, rules for handling funds of others and the requirements of fair housing laws c. existing records of every-other-month training meetings provided for all the broker's affiliates together with a record of those attending and a list of topics presented d. a paper trail showing that all contracts are approved by an experienced supervisor before being presented

a. a proven pattern of the broker's physical presence in the broker's office, 9:00 am to 5:00 pm, seven days per week

Which of the following does NOT define the term team? a. a team must have at least two licensee members, one of whom may be the firm's broker b. members of a team hold themselves out (present themselves) to the public as a being part of one entity c. members of a team designate themselves by a term such as "group" or "team" and work together on a regular basis to provide brokerage services d. at least two members of a team must be licensees, whose license certificates are retained in the same office or branch office

a. a team must have at least two licensee members, one of whom may be the firm's broker

Which of the following is NOT something for which licenses may be suspended or revoked by the Commission? a. drunken driving convictions b. accepting net listings c. performing acts of brokerage on an expired license d. failure to be current in court in court-ordered child support payments

a. drunken driving convictions

What is the effect of a licensee presenting the Understanding Whom Real Estate Agents Represent form? a. it informs prospective purchasers and lessees of the various ways they can be served by real estate brokerage firms b. it creates a representation agreement between the agent who presents the form and the prospect to which it is presented c. it gives a licensee the prospect's permission to engage in a transaction involving dual agency d. it ends a licensee's presumed buyer representation of a prospect

a. it informs prospective purchasers and lessees of the various ways they can be served by real estate brokerage firms

Maryland's requirements for a real estate broker licensee's office include all the following EXCEPT: a. it must be a place where the firm regularly conducts insurance sales b. it must have a sign visible to the public that includes the words Real Estate, REALTORS, or Realist, whichever is applicable c. records of all trust monies must be kept there in a secured area and available to the Commission's inspectors on demand d. it must have available the license of the broker and every affiliate who works out of that office

a. it must be a place where the firm regularly conducts insurance sales

Which is TRUE of a Maryland condominium declaration? a. it must be recorded before the property can be placed under a condominium regime b. it cannot be rescinded once it is recorded c. it can be changed only with the unanimous approval of the council of unit owners d. it must be printed in a daily newspapers before changes may be made

a. it must be recorded before the property can be placed under a condominium regime

Which of the following is FALSE concerning the required three-hour continuing education course in supervision and Agency courses for license renewal? a. it must be taken by all licensees for every alternate license renewal on or after January 1, 2012 b. it must be taken by all brokers for every alternate license renewal on or after January 1, 2012 c. it must be taken by team leaders beginning with their first renewal n or after January 1, 2012 d. it must be taken by branch managers at alternate renewals on or after January 1, 2012

a. it must be taken by all licensees for every alternate license renewal on or after January 1, 2012

In which of the following situations is deficiency judgment permitted when a property sells at foreclosure for less than the mortgage debt? a. judicial foreclosure b. nonjudicial foreclosure c. FHA loans d. all of the above

a. judicial foreclosure

In which of the following situations must the licensee present the Commission's disclosure of agency representation form? a. purchase prospect refuses presumed buyer representation b. transaction involves unimproved property zoned commercial c. brokerage services are for a residential leasehold of three months (90 days) d. prospect wants to lease a property improved by five single-family units

a. purchase prospect refuses presumed buyer representation

What may brokers NOT do in dealing with contested earnest money deposits? a. put their clients' interests ahead of the other parties' because of their fiduciary duties b. let the money remain in their trust accounts c. notify both buyers and sellers how they intend to distribute the contested funds d. distribute the money as they proposed in their notice if neither of the parties gives proper notice of protest

a. put their clients' interests ahead of the other parties' because of their fiduciary duties

11. Which of the following team names would be permissible under the Brokers Act? a. the ABC service team b. the ABC realty service team c. the ABC real estate expert team d. ABC service associates

a. the ABC service team

Associate Broker John Buonasera, known as Mr. B. has published a flier to attract business. This is the entire ad: Come to me, Mr. B. for all your real estate needs: Buying, Selling, or Renting. Use my services and you will be pleased. Results guaranteed! I charge 2% less than most other REALTORS for my excellent service. My personal assistants and I are available to you 24/7 to answer your real estate questions and meet your brokerage needs. Call my cell phone, toll free: 1-888-555-5555. Which of the following statements about the advertisement is FALSE? a. the ad makes it clear that Mr. B is not the broker of a firm b. the ad is improper because Mr. B doesn't mention the designated name of the broker whose firm he works for c. the ad is improper because Mr. B gives his own phone number and not that of the firm d. the ad is improper because, although a nickname may be used if it is registered with the Real Estate Commission, his full name, John Buonasera, must also be shown as it appears on his license

a. the ad makes it clear that Mr. B is not the broker of a firm

When advertising, what must a broker include? a. the designated name of that broker as registered with the Commission b. the name of the broker's REALTOR board or association or Realist organization c. the legal name of the licensed real estate broker d. the name of the licensee who listed the property

a. the designated name of that broker as registered with the Commission

Which of the following is TRUE of ads in which licensees advertise real property they have listed? a. the name of the salesperson need not be included in the advertisement, but the designated name of the broker must be shown b. only the broker's name is permitted in advertisements c. the price of the property must be included in all advertisements d. members of multiple listing services may advertise any of the services' listings

a. the name of the salesperson need not be included in the advertisement, but the designated name of the broker must be shown

Which of the following is a requirement for team advertising? a. the name of the team must be directly connected with the full name of the brokerage firm of which it is a part b. the name of the team must be the same size as or smaller than the name of the firm of which it is a part c. the address of the office out of which the team works must be shown d. the phone number of the team leader must be shown

a. the name of the team must be directly connected with the full name of the brokerage firm of which it is a part

Which of the following statements about usury in Maryland mortgage loans is TRUE? a. there is no interest limit on first mortgages involving Maryland real estate b. there is no interest limit on second mortgages involving Maryland real estate c. there is no interest limit on land (installment) contracts involving Maryland real estate d. Interest limits imposed on mortgages are not imposed on deeds of trust

a. there is no interest limit on first mortgages involving Maryland real estate

Which of the following is TRUE of a pair of prospects who enter a Maryland brokerage office and ask help in finding a house to rent? a. they are considered by Maryland statute to be represented by that brokerage firm b. they are considered customers by Maryland statute c. they will owe a reasonable and customary brokerage fee if the firm finds them a property that they lease d. they must be given the Commission's form, Understanding whom Real Estate Agents Represent, immediately upon their arrival

a. they are considered by Maryland statute to be represented by that brokerage firm

When builders sell houses they have built and own, which of the following is TRUE? a. they need not hold real estate licenses b. they must be licensed if they sell more than six per calendar year c. they must be licensed brokers d. they may be licensed as salespersons but not affiliated with brokers

a. they need not hold real estate licenses

Which is TRUE of licensees representing client buyers? a. they owe certain statutory duties to sellers b. they cannot be compensated by sellers c. they can be regarded as cooperating agents d. they may tell the seller's agent that their client is highly motivated

a. they owe certain statutory duties to sellers

In which states do lenders receive defeasible fee interests in mortgaged land? a. titled theory states b. lien theory states c. modified lien theory states d. trust theory states

a. titled theory states

Under what circumstances may salespersons use their own names and phone numbers in advertising listed property? a. when the designated name of their firm is clearly and meaningfully shown, as well as the firm's phone number b. when their office manager's name is shown in letters at lease half the size of the salesperson's c. when different colors are used for the broker's and salespersons' names d. when the owner-seller gives permission

a. when the designated name of their firm is clearly and meaningfully shown, as well as the firm's phone number

Competency

age, state of mind, authority of act

In MD what counties must the "Critical Areas" be included in real estate sales contracts

all counties regardless of whether they are affected by such regulation

To be an "active" broker, one has to

all of the above a) fulfill all continuing education requirements b) pay all license renewal fees c) have a registered office

When showing property, an agent should

allow buyers a chance to confer without being present. allow the prospective buyers to bring along a friend or confidant. try to overcome objections raised.

Special agent

also known as limited agent; authorized to represent the principal in one specific act or business transaction only. Usually a broker

Implied agency

an agency that occurs when a principal and an agent do not expressly create an agency, but it is inferred from the conduct of the parties

An improvement which crosses over the adjacent property without the permission of the owner is

an encroachment

MD Residential Agency Law

applies to residential properties that have been divided into up to 4 units and to residential leases only when the rental is more than 125 days

Tie-in agreements also called Tying agreements

are agreements to sell one product only if the buyer purchases another product as well. The sale of the first (desired) product is "tied" to the purchase of a second, less desirable, product. Tie-in agreements are illegal.

What advance notice must developers give to those who desire to convert apartment buildings more than five years old into time-share projects? a. 180 days' notice to each tenant b. 120 days' notice to each tenant c. no prior notice d. notice to each tenant within 10 days from filing the Public Offering Statement

b. 120 days' notice to each tenant

Which statement about State of Maryland fair housing law is TRUE? a. State law permits local governments to pass fair housing laws more permissive than the State's b. In a multifamily community that is advertised for, and occupied exclusively by, persons 62 years of age or older, sellers may refuse to sell a unit for occupancy to a family with minor children c. in a multifamily community that is advertised for, and occupied exclusively by, persons 62 years of age or older, sellers may refuse to sell a unit to a family with minor children to hold as investment property d. in a multifamily community that is advertised for adults and in which 80% of the units are occupied by at least one person aged 50 or older, sellers may refuse to sell (or rent) for occupancy to a family with minor children

b. In a multifamily community that is advertised for, and occupied exclusively by, persons 62 years of age or older, sellers may refuse to sell a unit for occupancy to a family with minor children

What body sets ethical standards that must be observed by all Maryland real estate licensees? a. National Association of REALTORS b. State Real Estate Commission c. Maryland Association of REALTORS d. local boards and associations

b. State Real Estate Commission

When prospective purchasers first arrive at a brokerage office to find a house to buy, how does the Brokers Act require them to be treated? a. as customers b. as clients c. as agents d. as factors

b. as clients

Which statement is TRUE about the mandated Supervision and Agency courses for license renewal? a. both must be taught by attorneys b. both must be presented by teachers identified by the Commission c. each is in addition to the basic 15 hours of continuing education required of most licensees d. unlike other continuing education courses, both will have a final exam

b. both must be presented by teachers identified by the Commission

Which of the following statements regarding rental security deposits is FALSE? a. the landlord must credit the tenant with 3% per annum simple interest on these funds at the end of the lease b. interest on security deposits is computed and compounded at six-month intervals c. the portion of the deposit not withheld must be returned to the tenant within 45 days of end of occupancy together with an accounting of how any withheld portion was spent d. tenants may recover three times the amount of security deposit improperly withheld by the landlord, plus reasonable attorney fees

b. interest on security deposits is computed and compounded at six-month intervals

What is required by law on any outdoor sign or advertisement displayed on property for sale subject to ground rent? a. it must, if price is shown, also show the annual ground rent but need not show any other details until an inquiry is made by a prospective purchaser b. it must, if price is shown, show ground rent and cost of capitalization in lettering no smaller than the lettering used for the price c. it must show only sale price d. it must show only sale price and the phrase "plus GR."

b. it must, if price is shown, show ground rent and cost of capitalization in lettering no smaller than the lettering used for the price

From which of the following may agency relationships be legally inferred? a. ministerial actions of a licensee b. magisterial guidance from a licensee c. payment or promise of payment to a licensee d. a prospect's expectations of a licensee

b. magisterial guidance from a licensee

When a salesperson whose license has not been renewed negotiates a sale of real property, who is the commission payable to? a. the broker only b. no one c. the salesperson only d. the broker and the salesperson according to prior agreement

b. no one

Which statement about teams is incorrect? a. members select their own team leader b. persons licensed under different brokers may be members of one team c. the team leader may be a salesperson d. team advertising must show the name of at least one licensee team member

b. persons licensed under different brokers may be members of one team

Which of the following may an unlicensed person working in a brokerage firm NOT do? a. compute commission checks b. submit listings and changes to a multiple listing service c. conduct an open house d. schedule appointments for a licensee to show listed property

b. submit listings and changes to a multiple listing service

Which of the following is NOT required in advertising for a team? a. the advertisement must contain the name of at least one licensee on the team b. the advertisement must contain the name of the team leader c the advertisement must follow branch office and company wide requirements d. the advertisement must include the phone number of the office out of which the team works

b. the advertisement must contain the name of the team leader

In Maryland, who is the person primarily responsible for the real estate brokerage services provided through a corporation? a. the president of the corporation b. the licensed real estate broker of the firm c. the chairperson of the corporate board d. the majority stockholder of the corporation

b. the licensed real estate broker of the firm

Which statement about team leaders is TRUE? a. the team leader is appointed (designated) by the firm's broker b. the team leader may be an office manager c. the team leader has an additional continuing education requirement at each renewal because of being a team leader d. a team leader may select which team members will serve as intra-company agents in delivery of dual agency services

b. the team leader may be an office manager

When there are no instructions to the contrary from their owner and beneficial owner, what does the Brokers Act require be done with earnest money deposits? a. they may be commingled with the broker's funds b. they must be deposited in an insured and approved financial institution in Maryland c. they are to be placed in an interest-bearing account d. they may be withdrawn at any time prior to settlement, as long as a licensee's signature appears on the escrow check

b. they must be deposited in an insured and approved financial institution in Maryland

The illegal practice of encouraging owners to sell their properties for lower prices when minorities begin moving into a neighborhood is known as

blockbusting.

When you receive For Sale sign inquiries you can assume that the caller

both is satisfied with the general appearance of the home and is satisfied with the area. (But the caller might not be able to afford the property).

What is the Exclusive Right to Represent?

broker is entitled to a commission if the potential buyer purchases a property with or without the assistance of a broker

What is an open arrangement?

broker is entitled to a commission only if the buyer purchases a property identified and suggested by the broker

What is the maximum amount that a claimant may receive from the Guaranty Fund on losses from one transaction? a. an unlimited amount b. $250,000 c. $50,000 d. $25,000

c. $50,000

Which statement about advertising by a team is FALSE? a. advertisements for the team must not even give the impression that the team is itself a brokerage firm b. advertisements for a team must give the name of at least one member of the team c. advertisements for a team must include the phone number of the team leader d. advertisements for a team must clearly show the designated name of the brokerage firm and indicate that the team is part of the firm and not a separate unit

c. advertisements for a team must include the phone number of the team leader

What is required for most Maryland real estate licensees to renew their licenses? a. completion of at lease 3 hours of continuing education in fair housing b. completion of at least 1.5 hours of continuing education in ethics c. completion of a total of at least 15 hours of approved continuing education courses d. completion of at least 6 hours of continuing education on changes in federal, State and local laws

c. completion of a total of at least 15 hours of approved continuing education courses

Which of the following is NOT the responsibility of Maryland real estate licensees? a. fair treatment of third parties b. competence in performance of duties c. giving of legal guidance d. loyalty to their principals

c. giving of legal guidance

What determines the amount of commission set in a listing agreement? a. Maryland statute b. the local Board or Association of REALTORS c. mutual agreement between the parties to the agreement d. the Real Estate Commission sitting in executive session

c. mutual agreement between the parties to the agreement

When a broker receives a full-price offer from a prospect and, at the same time, a less-than-full-price offer through a cooperating agent, what must the broker do? a. submit only the full-price offer b. submit only the offer from the other broker's customer c. submit both offers d. submit the first offer received and then, if it is rejected, the other offer

c. submit both offers

When a partnership owns a real estate brokerage firm, which statement is FALSE? a. the broker is responsible for the real estate brokerage activities of the partnership b. the broker must be one of the partners c. the broker must be designated by the partnership as its broker of record d. the broker must have a contractual or employment agreement with the partnership

c. the broker must be designated by the partnership as its broker of record

Which of the following statements about a team leader is incorrect? a. the team leader is designated by the firm's broker (or branch manager) b. the team leader is responsible for reasonable and adequate supervision of the team c. the team leader can appoint intra-company agents (ICAs) when dual agency involves two team members d. the team leader can be the branch manager

c. the team leader can appoint intra-company agents (ICAs) when dual agency involves two team members

Which of the following is TRUE of salespersons' real estate licenses? a. they must be placed and kept in a safe place chosen by the salespersons b. they are to be carried by the salespersons when performing acts of real estate brokerage c. they must be retained in their broker's offices d. they must be maintained in personnel files by their brokers

c. they must be retained in their broker's offices

Who may be members of the State Real Estate Commission? a. only licensed salespersons b. only licensed brokers c. unlicensed persons and licensed brokers and salespersons d. persons appointed by the Attorney General

c. unlicensed persons and licensed brokers and salespersons

Which of the following statements about tenancy by the entirety in Maryland is FALSE? a. if husband and wife divorce, the tenancy is terminated b. both spouses' signatures are required to sell such property if both are living c. upon death of either spouse, the form of ownership converts to tenancy in common d. only a legally married husband and wife can own property as tenants by the entirety

c. upon death of either spouse, the form of ownership converts to tenancy in common

What is Steering?

channeling minority prospects only to minority neighborhoods

Broker's principle are called

clients

Brokers' principals are called

clients

The Broker's principal are called

clients

A difference between residential and commercial real estate brokerage is that

commercial brokers typically dress more formally.

Which of the following satisfies the requirement that a broker maintain an office? a. a telephone answering service b. a post office box c. a mechanical answering machine d. a definite place of business

d. a definite place of business

Who may operate a real estate brokerage firm? a. a real estate salesperson b. an associate broker c. any person holding a valid real estate license issued by the State Real Estate Commission d. a licensed real estate broker

d. a licensed real estate broker

Which of the following statements about teams is FALSE? a. a team must have at least two licensee members b. members of the team regularly work together c. the team identifies itself to the public with some name d. a salesperson cannot be a team leader

d. a salesperson cannot be a team leader

When must all licensees take the three-hour required course in agency? a. before becoming licensees, as part of their 60-hour required pre-license course b. as continuing education for renewing their licenses every two years c. in addition to the 15 hours of continuing education required for each license renewal d. at alternate license renewals as part of the 15 hours of required continuing education

d. at alternate license renewals as part of the 15 hours of required continuing education

How must a check down on a brokerage firm's escrow (trust) account be signed? a. by the associate broker of the firm using her designated name b. by at least two licensees in the firm c. it may be cosigned by an appointed non-licensee, if signed by a nondesignated licensee d. it does not necessarily need a second signature if signed by the broker of the firm

d. it does not necessarily need a second signature if signed by the broker of the firm

Which is TRUE of an agency agreement listing a Maryland property for sale? a. It may contain a provision for the broker to keep all the sale proceeds above a certain amount as the brokerage commission b. it is binding if signed by the owner of the largest share in a property that is owned by several owners c. it may indicate that the amount of brokerage commission to be paid will be negotiated between owner and broker after an offer is presented d. it may not require notice from either party to activate its termination date

d. it may not require notice from either party to activate its termination date

Which of the following is NOT a Maryland requirement for a residential land installment contract? a. it must be recorded by the vendor within 15 days after it has been signed b. it must include all terms of the transaction c. it must be signed by the vendor and vendee d. it must be filed with the Real Estate Commission

d. it must be filed with the Real Estate Commission

Which is NOT a duty of the team leader? a. maintain an up-to-date list of team members b. provide an up-to-date list of team members to the firm (manager or broker) c. supervise members of the team d. keep any trust funds received during team activity in an account totally separate from the team leader's of any other team member's funds

d. keep any trust funds received during team activity in an account totally separate from the team leader's of any other team member's funds

When does Title 17 require the Commission's form, Understanding Whom Real Estate Agents Represent, to be presented? a. at first contact with a prospective purchaser or lessee b. at the first face-to-face contact between the licensee and a prospect c. no later than the moment a prospect expresses the desire to look at a property listed with a licensee's company d. no later than the first scheduled face-to-face meeting between the licensee and the prospect

d. no later than the first scheduled face-to-face meeting between the licensee and the prospect

In purchasing a condominium, the most important document given to the buyer is the declaration. Which of the following does the declaration NOT do? a. authorize a board of directors to administer the condominium affairs pursuant to the bylaws and to assess the owners so as to maintain the condominium adequately b. describe the condominium units and the common areas and any restrictions on their use c. establish the undivided interest percentages d. set forth rules for behavior of unit occupants

d. set forth rules for behavior of unit occupants

Who issues Maryland real estate salesperson and brokers licenses? a. local Board of REALTORS b. providers of required real estate courses when applicants pass them c. the Maryland Association of REALTORS d. the Real Estate Commission

d. the Real Estate Commission

What law requires certain contracts for the transfer of an interest in realty to be in writing to be enforceable? a. the Written Instrument Law b. the Parol Evidence Law c. the Statute of Limitations d. the Statute of Frauds

d. the Statute of Frauds

What is done with earnest money deposits received by salespersons of a firm? a. they deposit them in their trust accounts b. they give them to the sellers of the property c. they place them in their broker's safe d. they give them to their broker for prompt deposit in the firm's trust account

d. they give them to their broker for prompt deposit in the firm's trust account

What may be done with rental security deposits? a. they may not be withheld by the landlord for unpaid rent b. they may be kept during the lease in the landlord's personal savings account to earn interest c. they may be withheld by the landlord to cover estimated damages at the end of the lease d. they may be withheld by a landlord for the actual amount expended to repair damages caused by tenants

d. they may be withheld by a landlord for the actual amount expended to repair damages caused by tenants

Under the Junk Fax Prevention Act, which of the following is TRUE of persons who send faxes? a. they need not provide a way for the recipients to opt out of getting more faxes b. they may use recipient addresses they receive from a fax-spamming company c. they may send faxes only between 9:00 am and 5:00 pm d. they must have an established business relationship with the recipients

d. they must have an established business relationship with the recipients

How long must confidential matters leaned from a client remain confidential? a. until the client dies and the estate is probated b. until the agency relationship (either presumed or contractual) is terminated c. until the Statute of Limitations has expired d. until those matters become common knowledge from other sources

d. until those matters become common knowledge from other sources

Internal Revenue Code Section 1031

deals with tax-differed exchanges on investment property

A person died intestate. His property would pass according to

descent and distribution.

An income ratio is expressed as a percentage. For instance, if your buyer's proposed mortgage payment (PITI) is $957 and her stable monthly income is $3,300, her housing expense to income ratio would be 29%. The mortgage payment equals 29% of her monthly income.

divide income by mortgage payment

Professional Designations

earned by taking course, an exam and sometimes by a minimum number of closings

Puffing

exaggeration of a property's benefits

A broker is most likely to list a property in the Multiple Listing Service (MLS) when he or she has a(n)

exclusive right-to-sell listing.

The most common type of listing agreement used today is the

exclusive right-to-sell listing.

Industrial Property

factories, warehouses, research and development parks and manufacturing plants

A buyer's agent owes a prospective seller

fair dealing, but no loyalty.

In the typical agency relationship between a seller and a broker, the broker is the ________ of the seller and must protect his/her clients' best interest at all times.

fiduciary

A local brokerage firm that pays a fee and a percentage of gross receipts in order to be affiliated with a national brokerage firm is called a

franchise.

A local brokerage firm that pays an initial fee plus a percentage of gross receipts in order to be affiliated with a national firm is called a

franchise.

Who can acquire property through eminent domain?

government entities

Article 3

hat REALTORS® must cooperate with other brokers except when cooperation is not in the client's best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.

In MD, dual agency is permitted only

in brokerages with three or more licensees

Graduate REALTORS Institute (GRI) designation

involves several classses

Client

is represented party in the agreement. The principle

Worker's Compensation Insurance

is required by all employing workers

When you receive For Sale sign inquiries you can assume that the caller

is satisfied with the general appearance of the home. is satisfied with the area.

Confidential information must remain confidential until

it becomes public information

Confidential information must remain confidential until

it becomes public information.

In Md for a valid real estate sales contract

it must be in writing

Licensees Specializing in Leasing

leasing fees are usually a percentage of the gross rental income received per lease agreement.

uniform underwriting standards

lenders use uniform underwriting standards established by the major secondary market entities, Fannie Mae and Freddie Mac. * If the lender doesn't apply the uniform standards, the loan is considered nonconforming, and the lender won't necessarily be able to sell it on the secondary market.

When a single broker represents both parties in a real estate transaction, _______ representation exists.

limited

The contract that defines the relationship between the property owner and the real estate broker is the

listing agreement.

An agent does NOT owe the duty of

loyalty to the dealer's best interests.

A "transaction" broker does not owe the duty of

loyalty to the principal's best interests

material facts

material defects in real property or an improvement to real property that 1) the purchaser did not know 2) would pose a direct threat to health and safety

Which is a voluntary lien against a person's property?

mortgage lien

If members of a minority racial or ethnic group live in the neighborhood of a home you are showing

neither

Unacceptable forms of income

not acceptable to a lender, either because they are not reliable or because they are not durable. *unemployment *family members earnings *temporary employment

nonagent

not an agent of either party; simply helps the buyer and seller with paperwork and formalities involved in transferring ownership of real property

Electronic Professional (ePRO) course

offered by the National Association of REALTORS

Errors and Omissions Insurance Policy

offers protection for both the employing broker and the licensees. However, they do not cover acts of fraud or malfeasance

principal

one who employs another to act on his behalf; may or may not be the person who pays the agent

In MD oral contract for the sale of real estate are called

parol agreements

The commission paid in the real estate brokerage industry is usually

percentage of the gross sales price.

What is a Fiduciary?

person who occupies a position of trust and confidence in relation to another person or his property

In the legal relationship known as "agency," the _____ authorizes the _______ to transact business on his or her behalf.

principal, agent

Self-Regulation

process whereby members of an industry or trade monitor their own adherence to legal, ethical, or safety standards, rather than have an outside, independent agency such as a third-party entity or governmental regulator monitor and enforce standards.

The process of evaluating a potential buyer's ability to purchase a listed property is called

qualifying.

The process of evaluating a prospective buyer's ability to purchase a listed property is called

qualifying.

The primary difference between a real estate broker and a real estate sales associate is that

real estate sales associates must work under the supervision of a licensed real estate broker rather than operate their own brokerage operation.

Durability

refers to likelihood that the income will continue. * By contrast, unemployment benefits are an example of income that is not considered durable. Unemployment benefits, by their very nature, are not expected to continue for a long period of time.

Disclosed dual agency

representing both the buyer and seller in the same transaction with the informed consent of both

General agent

represents the principal in broad range of matters related to a particular business or activity. This type of agent can bind the principal to a contract within the scope of the agent's authority

Section 10177(h) of the Business and Professions Code

requires that workers supervise their salespeople. As such salespeople and associate workers are considered employees of the employing broker by the state of California and not as independent contractors

When a caller won't give a name, the best approach would be to

say, "Would it be all right if I sent you some information and photos of that property and several others?"

When a caller won't give a name, the best approach would be to

say, "Would it be all right if I sent you some information and photos of that property and several others?" (It is not threatening and most will agree).

The listing agreement will NOT contain the

selling price.

A real estate license is required for anyone who

sells or leases property for other people for compensation.

A state license is required for anyone who

sells property for other people.

When showing a property to a prospective buyer, the agent should

show unoccupied property first to give owner-occupants a chance to prepare for the showing.

When showing a property to a prospective buyer, the agent should .

show unoccupied property first to give owner-occupants a chance to prepare for the showing. (And get buyer reactions which might alter showings).

latent

something that is hidden by seller and broker does not know about

100% commission plan

start at 50-60% until reach threshold earnings level at which time you get 100%, minus some type of transaction fee for the balance of their fiscal year, at which time it would start over.

A mechanics lien is a/an ———-lien.

statutory

Magisterial acts

tasks the contain expertise and can only be performed on behalf of a client. Ex. fiduciary responsible, COLDAC

Board and Association sanctions for ethical violations

tend to be educational in nature requiring the licensee to obtain additional education to prevent future violations but can also include fines and suspension from the association. A local association can NOT impose sanctions that would include things like cancelling a real estate purchase contract or forcing a licensee to pay for alleged damages to a property.

dual or variable rate commission arrangements,

that is listings where one amount of commission is payable if the listing broker's firm is the procuring cause of sale/lease and a different amount of commission is payable if the sale/lease results through the efforts of the seller/ landlord or a cooperating broker.

Failure to properly present UWREAR is a violation of

the Broker's Act by the licensee

Dual agency

the agent represents two principals in the same transaction

When the parties agree to terms on a specific property, a sales contract spelling out the agreement is drawn up and signed by

the buyer and the seller.

Telephone responses from a For Sale sign indicate what about the prospective buyer?

the caller may want a lower-priced property.

What is a Commission Agreement?

the document used to create open listing agreements

Agency

the fiduciary relationship between the principal and the agent by which the agent is authorized to represent the principal in one or more transactions

Principal

the individual who hires the agent and delegates to that agent the responsibility of representing the principal's interests

Fraud

the intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person

The mortgagee's title policy protects

the lender.

Designated agent

the only sales associate in the company who has a fiduciary responsibility toward the principal

Graduated Split

the percentage of the total commission received by the broker is paid to you in ever-larger percentages as your annual earnings increase

What is a principal?

the person who authorizes the agent to act on his or her behalf

Client

the principal in a real estate transaction for whom a real estate broker acts as agent. The term client is also used when a broker represents someone in a relationship other than an agency

The listing agreement defines the relationship between

the property owner and the real estate broker.

The primary purpose of a listing agreement is to define the relationship between

the property owner and the real estate broker.

Fiduciary

the relationship in which the agent is held in a position of special trust and confidence by the principal

Administrative law

the rules and regulations created by real estate commissions and departments, as authorized by legislature

Common law

the rules established by tradition and court decisions

Law of agency

the rules of law that apply to the responsibilities of a person who acts as an agent for another

Customer

the third part or nonrepresented consumer who is not a principal but for whom some level of service may be provided and who is entitled to fairness and honesty. The customer may be represented by a separate agent

The front-end ratio is

the total monthly housing payment divided by the gross monthly income. (Usually 28 percent for qualifying).

Stigmatized properties

those that society has found undesirable because of events that occurred there or because of proximity of the property to a known nuisance

What is the Role of Real Estate Brokers?

to advertise and market the property and assist the seller in finalizing the transaction once a buyer is found

The back-end ratio is the

total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income.

The back-end ratio is the

total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income. (Usually 36 percent for qualifying).

penalties for violating antitrust laws

under the federal sherman antitrust act people who fix prices or allocate markets may be subject to a maximum of a one million dollar fine and ten years in prison. for corporations the fine may be up to 100 million

When arriving at a property for a showing, if another agent is showing the property, you should

wait to show the property until the other agent has left.

When arriving at a property for a showing, if another agent is showing the property, you should

wait to show the property until the other agent has left. (Common courtesy).

What is a dual agent?

when the broker has fiduciary duties to both parties simultaneously

Implied Agreement

when the parties act as though they have mutually consented to an agency, even if they have not entered into a formal agency agreement.

Negligent misrepresentation

when the real estate professional should have known that a statement about a material fact was false

Article 17

with the duties agents have to other REALTORS®. Article 17 deals with the resolution of disputes that arise between REALTORS®.

Disclosure of Agency Relationships Pages 205-206

• All brokers must give to and review with all sellers and buyers at "first substantial contact" the Commission's Working with Real Estate Agents brochure. • A seller's agent or subagent must disclose in writing his or her agency status to a prospective buyer at "first substantial contact" with the prospective buyer. • A buyer's agent must at least orally disclose his or her agency status to the seller or seller's agent at "initial contact" with the seller at seller's agent. • The consent and authorization for dual agency must be reduced to writing not later than the time one of the parties wants to extend an offer to any other party. • The rule applies to all sales transactions, residential and commercial.

Fumiko hosted an open house for her new seller client. She gave away door prizes to attendees, including pens, mousepads, USB drives, and other items with her brokerage's contact information on them. Did Fumiko do anything wrong? No. She didn't do anything wrong. Yes. All prizes must have her contact information, not her brokerage's. Yes. Licensees aren't allowed to offer prizes or incentives to consumers. Yes. The prizes are considered advertising and must be approved by the commission first.

No. She didn't do anything wrong.

This contract specifies commission is not due to the broker. The buyer can retain multiple brokers and revoke the contract at any time. If the broker does find a suitable home, commission is paid at that time.

Nonexclusive Not-for-Compensation Contracts

You find a buyer for a single-family 3-bedroom, 2-bath home in a good area. When you present a contract to the owner, they call your clients up and make a side deal. You try to get them to pay your commission, knowing that your clients had never met the owners before. Since you are the only one with anything to gain, no one backs you up. With no contract, you have no recourse to fight for the commission you have earned. This is the least desirable type of contract and most brokers avoid it altogether. It is called the...?

Nonexclusive Not-for-Compensation Contracts

What are the 3 types of buyer agency contracts?

Nonexclusive Not-for-Compensation Contracts - Specifies commission is not due to the broker - Buyer can have multiple brokers and revoke contract at any time - If broker does find home, commission is paid - Least desirable contract and Realtors avoid it - Good for 1-2 months Nonexclusive Right-to-Represent Contracts - Broker only receives compensation of the broker finds the home - Buyer may obtain a home on their own or through another broker - Agreement can only be cancelled under special conditions - Good for 1-2 months Exclusive Right-to-Represent Contracts - Most common buyer's broker contract - Buyer cannot retain another broker for the duration of the contract - Broker receives commission even if the buyer or another broker finds the house - Usually good for several months- 1 year

This contract provides the terms of compensation due if the broker finds a suitable home for the buyer. The buyer may obtain a home on their own or through another broker. This agreement can only be prematurely canceled under specified conditions.

Nonexclusive Right -to-Represent Contracts

The Maryland Real Estate Commission received a complaint claiming that Michael, a licensed electrician, was receiving referral fees from Own It Realty Group in exchange for giving sub-par wiring the green light during inspections. What's the maximum penalty MREC can impose upon Michael? MREC may issue a cease-and-desist order against Michael and recommend the case for a formal hearing before an administrative law judge. MREC may levy a fine of $5,000 for the first violation, $15,000 for the second violation, and $25,000 for each additional violation. MREC may suspend or revoke his license or require that he take additional continuing education classes. Nothing; MREC doesn't have jurisdiction over licensed electricians.

Nothing; MREC doesn't have jurisdiction over licensed electricians.

After the licensee has explain the options of representation the unrepresented buyer or tenant has three choices when being presented with the understanding home real estate agents represent form

Number one sign a buyer/tenant agreement and receive client services number two do not sign a broker agreement, waiving the right to representation and to receive customer services and number three receive no services from the licensee at this time. Licensees can also have a policy that they only offer client level services and do not work with customers. They cannot miss lead a buyer into thinking that they have to hire the licensee. The manager could help the customer select another agent who will offer customer services

accounting

OLD CAR: _A_ A) Agents money or personal property entrusted to agents must be accounted for.

confidentiality

OLD CAR: _C_ a) agents must keep principal's ______ information private b) agens may release ___ information with permission from the principal

loyalty

OLD CAR: __L__ An agent must plact the interest of the principal above all others including the agent's own.

obedience

OLD CAR: __O___ a) An agent must obey the lawful directions of the principal. b) if a principal requests that the agent do something unlawful, then the agenct should decline the listing

disclosure

OLD CAR:_D_ A) All known material facts about the property must be disclosed to the principal and all parties. B) Full disclosure must be made to the principal of all kknowledge about the transaction C) Disclosure of benefits of the transaction, as well as the riskk or defects, must be made.

Which of the following does a licensee NOT owe to a customer?

Obey lawful instructions

Negligent Misrepresentation

Occurs when the broker should have known that a statement about a material fact was false.

Maryland salesperson Seema is new to the real estate business, and she's having trouble getting her sales off the ground. She's considering offering some incentives. Which of the following incentives would be legal according to the Maryland Code of Ethics? Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days Offering a 1% reduction in her commission rate to the first 10 seller clients who list with her Offering to buy a washer/dryer set for the first 10 buyer clients who sign on with her Offering to waive the administrative fee for the first 10 buyers who sign on with her

Offering a 1% reduction in her commission rate if her seller clients' homes don't sell within the first 90 days Licensees may not use contests or offer prizes to induce a consumer to enter into a brokerage agreement or to influence a buyer to make an offer on a particular property. Incentives may be offered provided they are available to all on the same basis.

Single agency company

Office to represent either buyers or sellers but not both in any given transaction. It does not participate in dual agency. A single agency company can be an exclusive seller agency company or an exclusive buyer agency company. A dual agency company has more than three licenses and will allow the broker to represent both the seller and buyer within the same transaction when appropriate consent is in place

ready, willing, and able buyer

Once a seller accepts an offer from a ready, willing, and able buyer, the real estate broker is entitled to a Commission..

What is the dual agency

One house for sale, two people involved, and the same company is a part of both transactions

Fiduciary

One in whom trust and confidence is placed; a reference to a broker employed under the terms of a listing contract or buyer agency agreement.

Understanding home real estate agents represent UWREAR

One message of the uwrearwas created to deliver to unrepresented parties is that the licensee has already been assigned a role in this transaction, another message that uwrear form helps to deliver to an unrepresented party is it the licensee is not already obligated to the owner of the property that an unrepresented purchase or or tenant wants to view

Agent

One who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent. A prospective property buyer may authorize a real estate broker t act as the buyer's agent to find a suitable property.

Special Agent

One who is authorized by a principal to perform a single act or transaction; a real estate broker is usually a special agent authorized to find a ready, willing, and able buyer for a particular property, when representing a seller, or a special agent authorized to find a suitable property, when representing a buyer.

General Agent

One who is authorized by a principal to represent the principal in a specific range of matters.

Independent Contractor

One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. An independent contractor is not an employee but may be an agent.

What are some of the most forgotten disclosures?

Ones involving... Renovations completed with the appropriate permits The existence of easements that complicate property improvements Environmental issues and title issues

You (a Maryland licensee) represent April, the seller, who is your Uncle Clyde's girlfriend. You receive an offer from Barry on behalf of a prospective buyer. Whose interests do you represent, and in what order? April's first, then Clyde's, then Barry's Clyde's first, then April's, but not Barry's Only April's Your Uncle Clyde's first, then April's, then Barry's

Only April's

Maryland sponsoring broker Sandrine has five salespersons working under her supervision. Whose license must be displayed in the brokerage office? one are required to be displayed. Only Sandrine's license is required to be displayed; the salesperson licenses must be retained. Only the licenses of the five salespersons must be displayed. Sandrine's license must be displayed, as well as the licenses of the five salespersons.

Only Sandrine's license is required to be displayed; the salesperson licenses must be retained.

A listing agreement whereby the seller reserves the right to sell the property himself without having to pay a commission and also allows other real estate agencies to sell the property and earn a commission best describes what type of listing?

Open

In which of the following settings is a prize offering permitted in Maryland? Buyer education seminar Closing Listing presentation Open house

Open house

If you were the listing broker, which of the following types of listings would you least prefer?

Open listing

Happens when a real estate licensee purposely fails to disclose material information impacting a real estate transaction. Intentional Non-disclosure.

Passive Fraud, or Negative Fraud

first contact

Per representation requirements, a licensee will disclose existing brokerage relationships within the same medium that the first contact was made. For example: disclose that you represent the seller within the email response to the online inquiry requesting to see one of your listed properties

first contact

Per the agency requirements, a licensee will disclose existing agency relationships within the same medium that the first contact was made. For example; disclose that you represent the seller within the email response to the online inquiry requesting to see one of your listed properties.

Under what circumstances can a buyer representation agreement be terminated early in Maryland? If the buyer finds another buyer to replace them. If the buyer finds out that their agent is representing other buyers. If the buyer notifies the agent in writing that they have a contract on a home found for them by another broker. Per the early cancellation provision agreed to by both the broker and the client as listed in the agreement.

Per the early cancellation provision agreed to by both the broker and the client as listed in the agreement.

real estate brokerage

Performing real estate services for another person in return for consideration. This includes selling, assisting with purchase, leasing, collecting of rent, dealing with options, subdividing and selling lots, or promoting your capabilities to perform any of those services.

confidential information

Personal finances, bargaining strategy, and motivation must be kept confidential for all clients throughout the transaction.

confidential information

Personal finances, bargaining strategy, and motivation must be kept confidential for all clients throughout the transaction. Confidentiality applies to an individual licensee's clients and to the brokers clients as well. Licensees must disclose material facts to everyone and not disclose their client's confidential information to anyone

Privacy and personal information

Personal information is defined as an individual so security number drivers license number, financial account or a credit card number, or tax payer ID. This includes information in hardcopy or unencrypted digital form that retrieved could easily be read. This is a major challenge for Brooke with brokerage firms mini brokerage firms are using wire fraud disclosure's warning customers not to provide the personal information upon request through emails or unverified participants to the transaction.

Phyllis is a real estate salesperson in Maryland. The commission recently summarily revoked her license because of fraudulent conduct. Which of the following is true? Phyllis can never practice real estate in Maryland again. Phyllis may not reapply for a real estate license for three years. Phyllis may request a hearing to appeal the summary revocation. The commission must also investigate Phyllis's broker to see if he is also guilty of misconduct.

Phyllis may request a hearing to appeal the summary revocation.

Types of antitrust laws volations

Price fixing The group of boycott Allocation of customers Allocation of markets, and Tie in agreements

presumed representation

Prohibited in Maryland. Brokerage relationships are only created by written agreements.

presumed agency

Prohibited in Maryland; agency relationships are only created by written agreements.

What is one of the easiest ways to avoid misinterpretation?

Provide all the necessary disclosures during the sale of a property

Workplace discrimination

Provided by state article 20 Dash 602 every Maryland or is guaranteed equal opportunity in receiving employment and all labor relations. Additional protective categories to the federal and state fair house and protection include age and genetic information. Marilyn commission of civil rights does not enforce fair housing practices it handles employment discrimination. Marlo's employment anti-discrimination laws only apply to employers with 15 or more employees.

Refers to incredulous claims made by sellers or seller's agents to attract potential buyers. Exaggerating the positive points of a home, etc. This practice gives unsubstantiated opinions rather than verifiable facts, and it's generally not determined to be a legally binding promise.

Puffing

Puffing Page 173

Puffing is an expression of a broker's opinion about the property and does not constitute misrepresentation.

Which of these documents does NOT establish an agency relationship between a client and a licensee? Brokerage agreement Buyer representation agreement Listing agreement Purchase agreement

Purchase agreement

Which step in the sales process determines whether prospects are ready, willing, and able to buy a particular property?

Qualifying

Article 10

REALTORS® must not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity nor can they be parties to any plan or agreement to discriminate against such persons.

Article 16

REALTORS® must not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients.

Article 12

REALTORS® must: Be honest and truthful in their real estate communications and present a true picture in their advertising, marketing, and other representations. Ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations. Ensure that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.

Was established by the Real Estate Licensing and Registration Act to reimburse people who are victims of real estate fraud or misrepresentation committed by the real estate licensee in any transaction requiring a real estate licensee.

Real Estate Recovery Fund

Price fixing for Brokers (illegal)

Real estate brokers must independently determine commission rates or fees for their own firms only. These decisions must be based on a brokers business juedgement and revenue requirements.

Purpose of License Laws

Real estate license laws protect the public by ensuring a standard of competence and professionalism in the real estate industry. The laws achieve this goal by◾establishing basic requirements for obtaining a real estate license and, in most cases, requiring continuing education to keep a license;◾defining which activities require licensing;◾describing the acceptable standards of conduct and practice for licensees; and◾enforcing those standards through a disciplinary system. The purpose of these laws is not merely to regulate the real estate industry.

FTC (Federal Trade Commission)

Real estate proffesionals must comply with the provisions of the NATIONAL DO NOT CALL REGISTRY which is managed by the Federal Trade Comission FTC

Nonresidential Property

Real property improved by 5+ single-family units, real property zoned for commercial, industrial, or nonresidential use, unimproved real property zoned for improvement as multifamily units other than single-family, condominiums, co-ops, or agricultural.

Commercial property

Real property improved by five or more single-family units, improved or unimproved real property zoned for commercial, industrial, or non-residential use by the zoning authority, and unimproved real estate property zoned for improvement as multi family units by the local zoning authority. Commercial real estate does not include properties on for agricultural use single-family units including condominiums or co-op units, for sale or for lease, or otherwise conveyed or to be conveyed on a single basis

Administrative Law

Regulations adopted by 1 of 18 Maryland's licensing boards, including the MD Real Estate Commission, that apply statues to particular situations, including real estate brokerages.

What is the Broker Buyer Agent Relationship?

Relationship between a broker and a buyer should be clearly specified in a buyer representation agreement when a buyer hires a broker to help him locate properties

Dual Agency

Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states

How should you handle a buyer who has a pet with him or her when showing a property?

Request that the pet be left safely outside or in a vehicle.

Disclosure Forms Pages 185 - 193

Residential Property and owners' Association Disclosure Statement and Mineral and Oil and Gas Rights Disclosure may not be altered or amended in any way and no other disclosure form may be used. The forms contain instructions to property owners, including a summary of the owner's duties under the law and directions fro completing the form. space is provided for the seller's signature on each form and includes a note to purchasers regarding their cancellation rights and a space for buyers to sign acknowledging receipt of the form. There is also a recommendation that purchaser obtain a property inspection from a licensed professional. Delivery (by hand, fax or email) of the disclosure forms must be made no later than the time the buyer makes an offer to purchase. However, it should ideally be done immediately after the buyer contacts the listing firm to make an appointment to show the property.

courtesy or etiquette

Respect for the Public Respect for Property Respect for Peers

compensation by who? To a sales associate (licensee)

Sales associate can only carry out those responsibilities delegated by the employing broker and can only receive compensation from that BROKER

brokers

Salespersons are general agents of their ________, always representing and working on behalf of the broker who holds their license.

Involes a Realtor or broker who acts in his own best interest in a real estate transaction rather than in the best interest of his client, whom he owes fiduciary responsibility.

Self-Dealing

Which two Maryland protected classes, while not specified in federal fair housing law, may still qualify for protection under the federal Fair Housing Act under certain circumstances? Age and marital status Gender identity and marital status Marital status and sexual orientation Sexual orientation and gender identity

Sexual orientation and gender identity

Dorothy, a Maryland broker, deposited her buyer client's earnest money funds a month ago. The seller backed out of the contract two days before closing and claimed she was owed the earnest money because of the time the property had been taken off the market during contract negotiations. The buyer wants his earnest money back. Which of the following is NOT an option that Dorothy has regarding the dispute?

She can file a claim with the Maryland Real Estate Commission, which would then decide how the funds should be disbursed.

Dorothy, a Maryland broker, deposited her buyer client's earnest money funds a month ago. The seller backed out of the contract two days before closing and claimed she was owed the earnest money because of the time the property had been taken off the market during contract negotiations. The buyer wants his earnest money back. Which of the following is NOT an option that Dorothy has regarding the dispute? She can file a bill of interpleader and deposit the funds with the courts, which would then decide their disbursement. She can file a claim with the Maryland Real Estate Commission, which would then decide how the funds should be disbursed. She can hold onto the funds until one of the parties files suit and a court orders the funds' disbursement. She can hold the funds until she receives both parties' authorization to disburse them.

She can file a claim with the Maryland Real Estate Commission, which would then decide how the funds should be disbursed. Brokers may: hold disputed funds until both parties authorize their disbursement, file a bill of interpleader and deposit the funds with the courts to decide their disbursement, or hold the funds until one party files suit and a court orders disbursement.

Monica's business is booming. She's representing an owner who's selling a $500,000 home on one side of town, and a buyer who's purchasing a $300,000 property on the other side of town. As it happens, the seller and buyer both know each other from church and have been talking to others about Monica's talents, which has brought in several new leads for her to pursue. What type of agency relationship does Monica have with the seller and buyer? She is each party's agent. She's a dual agent, since the seller and buyer know each other. She's the buyer's agent and the seller's sub-agent. She's the seller's agent and the buyer's sub-agent.

She is each party's agent.

Brokerage offices that practice dual agency should provide what for data security

Should provide log files or other security arrangements so that confidential information about buyers or sellers in the same transaction is kept the curly segregated and does not fall into the hands of an intra-company agent. The broker who is actually the dual agent has full access to all this information but it's for bidden by law to share it with adverse parties in any transaction unless mandated by court order or buy the requirement to disclose newly discovered material facts

MREC received a complaint from Rose, stating that licensee Stan had placed a sign on her property without her permission. As a result, she received a $250 fine from her homeowners association for illegal signage. MREC notified Stan and his broker about the complaint, and Stan's broker responded by sending a copy of an email from Rose, stating that the firm could have a sign installed. As a result, the hearing panel dismissed the claim. What can Rose do now?

Since the hearing panel found no merit to Rose's case, it's rejected the claim, and Rose may not file an appeal. Guaranty Fund claims are considered separately, but only actual monetary damages may be claimed.

Disregarding buyers capacity to pay

Some lenders may make a loan based only on the property's value, without considering whether the buyer will be able to afford the loan payments **The lender collects the loan fee and then sells the loan, making the probability of default someone else's problem.

What does the duty to cooperate, as established in Article 3, mean?

Standard 3-10) It relates to the obligation to share information on listed property, and to make property available to other brokers for showing to prospective purchasers/tenants when it is in the best interests of sellers/landlords.

This is the statement telling sellers and buyers they have a choice whether to request an agency relationship with the broker or not. Further, customers and clients cannot assume that an agency relationship exists.

Statement to Request Agency Relationship

Which of the following terms refers to the illegal practice of showing minority buyers only those properties that are located in areas dominated by minorities?

Steering

Predatory Steering

Steering a buyer toward a more expensive loan when the buyer could qualify for a less expensive one

Which statement about subagents (as shown on the Understanding Whom Real Estate Agents Represent form) is FALSE?

Subagents can represent the buyer.

Subprime borrowers often have poor or limited credit histories

Subprime financing is also used by buyers who can't meet standard income and asset documentation requirements, have good credit but carry a large amount of debt, or want to purchase nonstandard properties that regular lenders won't accept as collateral

single-agency company

Such a company does not participate in dual agency because of its small size, its policies, or because it is an exclusive buyer or seller agency

Supervision define in real estate

Supervision requires direction and review of professional real estate activities brokers are required to supervise all license affiliated licensee's with them whether those affiliates or employees, qualified real estate agents, or independent contractors. I'll Filion may not operate on supervised no matter how they are related to the firm. Supervision also applies to unlicensed assistant administrative employees of the brokerage firm affiliates are never independent from their broker brokers can tell their affiliates not only what to do but how to do it.

Lenders housing expense to income ratio

Suppose that for the type of loan Henry wants, the lender won't allow a housing expense to income ratio over 28%. $3,880 times .28 (or 28%) equals $1,086. * This is the maximum monthly housing expense that Henry would qualify for under the lender's housing expense to income ratio.

Ministerial acts

Tasks specified within the contract that need to be performed and do not involve any show of loyalty or acts of negotiation.

Magisterial acts

Tasks that contain expertise and can only be performed on behalf of a client.

If a real estate agent is buying or selling real property for themselves what are they required to do?

Tell the other party of that fact that they are a real estate licensee

Which of the following is NOT a duty agents owe to their principals?

Telling a buyer client that a family member of the seller has AIDS

Chelsea represents the buyer of a For Sale by Owner townhome in Bowie. When the seller stops by Chelsea's office to deliver the homeowners association resale packet, the two get to chatting. What does Chelsea need to make sure to tell the seller?

That Chelsea may share any information the seller tells her with her buyer client Unrepresented parties must be made aware that any information they choose to share with the licensee may be shared with the licensee's client.

What three ways does the Code support the law?

The Code must be reasonably and consistently construed with the law. The Code imposes duties above and in addition to the duties imposed by law or regulation. The Code restates certain fundamental legal principles, for example those principles dealing with contracts, agency, and fair housing.

—————————is the lead agency in the state government for environmental management and stewardship. The department administers regulatory programs and issues permits for air, water and waste management. It oversees the State's land and water conservation program, Florida Forever, and manages the nationally award winning Florida Park Service. The department is the main architect of the $7.8 billion funding and management plan to restore America's Everglades-the largest water restoration project in the history of the world.

The Florida Department of Enviormental Protection

This is the first meeting between a real estate licensee and a consumer of real property for sale or rental. An in depth discussion about the real estate agent's roles and responsibilities must be discussed.

The Initial Interview

Maryland Real Estate Commission

The Maryland licensing board consisting of 5 licensed members and 4 consumer members that adopts and enforces the Code of Ethics and General Regulations in COMAR to implement the Brokers Act.

mandatory

The NCREC has provided a ___ agency disclosure brochure of simplified definitions, Workng with Real Estate Agents, to help the broker explain the agency relationships available to the public.

brokerage

The ___ owns all contracts.

What does the brokers notice to the commission to perform real estate brokerage at a firm need to include

The address of the place of business, the brokers name, theCommission regulation requirements, the firm name, list of all associates in the firm, the statement of designation or designated broker.

Which of the following is NOT a required inclusion in a Maryland buyer representation agreement?

The address of the property the buyer is purchasing

The principal is the person represented by who?

The agent

compensation

The amount of compensation a sales associate receives is set by mutual agreement between the broker and the sales associate. No matter how the sales associate compensation is structured as a rule only the employing real estate broker can pay it!!!

Brokerage

The bringing together of parties interested in making a real estate transaction. A real estate broker is licensed to Buy, sell, exchange, or lease real property for others and to charge a fee for those setvices

Timing of presentation

The brokers act requires a brokerage relationship disclosure's occur at first contact and first face-to-face contact. At the time of first contact if not face-to-face the licensee will disclose any existing representation in the same medium that the contact with me number two written disclosure is not needed until the time of face-to-face contact this is only required if the licensee is meeting with an unrepresented party they will use the understanding Vhome real estate agent represent form to disclose existing brokerage relationships and or representations to the unrepresented party

What must a broker do when he receives the trust money

The brokers act requires that when brokers receive trust money or earnest money deposit, they must properly no later than seven business days after formation of the contract of sale deposit those funds in a non-interest-bearing checking or savings account or a combination of these accounts that they maintain for that purpose and authorize financial institutions in Maryland. The account must've been exclusively for the funds of others and contain none of the brokers or firms funds no commingling. Required forms include the escrow holding agreement. The brokers are required to reportThe banks name and the account numbers to the commission as soon as they start depositing trust monies there

Disclosure of bonuses in dual agency

The brokers act states the following if a real estate broker offers any financial bonuses to licensees affiliated with the broker for the sale or lease of real property listed with a real estate broker, the real estate broker shall provide to each party to a real estate transaction a statement that discloses that financial bonus that is offered. The existence of financial incentives or bonuses offered within a team must also be disclosed to all parties

Define real estate brokerage

The brokers active fires real estate brokerage is performing certain services for another person in return for consideration. The services are acting as a consultant, assisting in locating and obtaining any residential real estate for purchase, buying exchanging leasing or selling real estate property, collecting rent for the use of any real estate, listing and promoting the sale of real estate property, and subdividing land and selling the divided lots.

Maintaining records in a brokerage service

The brokers ask requires all real estate licensee's to keep copies of representation agreement and all other documentation obtain a connection with the transaction involving brokerage services for at least five years starting from the date of closing, the date of employment, or the date of the end of a property management agreement.

Buyer's right to Cancel Contract Page 193

The buyer has a 3-day right to cancel a sales contract when either of the disclosure statements is not delivered to the buyer prior to or at the time the purchaser makes an offer.

Which of these is NOT a circumstance that would result in a Maryland broker releasing trust money she was holding? The beneficiary of the trust money failed to complete the contract terms. The broker received a court order instructing her to disburse the trust money. The buyer needed his earnest money back in order to pay the down payment. The transaction closed.

The buyer needed his earnest money back in order to pay the down payment.

Telephone responses from a For Sale sign indicate what about the prospective buyer?

The caller may want a lower-priced property. (They like it and hope they can afford it).

There was a judgment lien against a person for his debts. He owned a car, boat, farm house and some land. On which would the judgment lien be placed?

The car, boat, farm house and the land

Junk fax prevention act of 2005

The center of an unsolicited advertisement sent to an individual fax machine is liable for a minimum of $500 per page, damages may be trebled At the courts discretion upon a finding that the violation was deliberate. The fax must still contain a no-cost opt out number to call available 24/7

The principal is also called what?

The client Who pays the realtor for their services

Who maintains current information regarding every corporation partnership LLC and soul proprietorship through which Maryland real estate brokerage services are provided

The commission

Which of the following is NOT true regarding the Maryland Commission on Civil Rights? Commission members serve four-year terms. The commission is made up of nine members. The commission is managed by an executive director. The governor appoints members to the commission.

The commission is made up of nine members.

According to Maryland disclosure guidelines, upon which of the following events is it NOT appropriate to give the buyer the opportunity to review the seller's disclosure/disclaimer statement? The day of the home inspection When the buyer expresses interest in purchasing the property When the buyer makes an offer When the property goes on the market

The day of the home inspection

Note that credit problems in the last two years have the greatest impact on the applicant's score.

The derogatory factors we discussed earlier—from late payments to bankruptcies—all take a toll on a person's credit score. In addition, other factors can have a negative impact on a credit score. For instance, if a person constantly carries a credit card balance that is near the maximum amount ("maxing out" the card), that will have a negative impact on his credit score even if he always makes the payments on time.

Procuring Cause

The effort that brings about the desired result. Under an open listing, the broker who is the procuring cause of the sale receives the commission.

designated name

The exact name that appears on the certificate of a licensee.

must

The existence of financial incentives (bonuses) offered within a team [must, must not] be disclosed to all parties.

Authority to sign trust account checks for a brokerage firm

The farms real estate broker must be the signer or at least one of the signers on checks drawn on escrow accounts that the broker is required to maintain the broker may designate an alternate signer to sign checks this designated alternate sign or however must be a licensee. A non-licensee may be a required cosigner on the brokers escrow account provided all the checks are also signed by licensee designated by the broker. At least one licensee must sign every check

11,000

The federal penalty for a pattern of violations is $________ per call.

Telemarketing and broadcast fax solicitation in real estate

The federal trade commission has maintained a national do not call registry certain categories of collars are exempt from the prohibition on calling these listed numbers charities, surveys, political organizations and companies with which the recipient has done business during the last 18 months. However businesses are required to have their own registry of numbers for persons who have specifically asked them to stop calling. The federal penalty for a pattern of violations is $11,000 per car. It is a farms duty to inform is affiliates of the farms policies and data resources to ensure to avoid expense of violation

Consent followed by affirmation for dual agency

The first signature on dual agency consent form access permission to show company inventory this must be signed before showing any listing. The consent is given to allow licenses to show the company inventory and allows listing agents to invite licensees with their firm to show the property to their clients. The second signature the affirmation at the time of offer access permission to sell company inventory consent is affirmed by the parties before signing the sales contract

Agent

The individual who is authorized and consents to represent the interests of another person in dealings with a third person

Law of Agency

The law that governs the relationship between a principal and his or her agent.

Pre-approval

The lender analyzes the buyer's credit reputation, income, and net worth. If the buyer is creditworthy, the lender issues a preapproval letter.

Pre-approval letter

The letter is typically valid for only a certain time, such as one or two months, since changes in interest rates may affect how much the buyer can afford.

Commission disputes how are they handle

The licensing law does not authorize the real estate commission to arbitrate any disputes between brokers between brokers and sales persons over distribution distribution of commissions. Such disputes may be submitted for arbitration to the respective board Association of realtors, if the party started to dispute our members of the same board or members of different boards or associations. To prevent commission dispute the percentage and distribution of commissions should be agreed to in writing especially those setting forth the agreement between brokers and their sales person. Division of compensation between brokerage firmsHowever it's usually based on information in the published multiple listing system and typically confirmed orally

What is the minimum number of separate licenses needed for disclosed dual agency and who are the people involved

The minimum number of separate license is needed in an inner disclosed dual agency or three one is a dual agent which is the broker to I see is one for the seller and one for the buyer to make a total of three. The door agent can never be one of the ICA's only the dual agent has the authority to appoint the ICA's

Broker's designated name

The name under which the broker is operating, typically a company name.

Ministerial acts

The necessary paperwork and formalities that need to be performed do not involve any show of loyal or negotiation. Ex. open home for access to inspectors or appraisers as provided within the sale contract. Provided to customer

ground rent

The net rent paid for a period of unimproved land; that portion of the total rental is considered to represent a return upon the land only.

17-5

The obligation to arbitrate established in Article 17 includes disputes between REALTORS® (principals) in different states in instances where, absent an established inter-association arbitration agreement, the REALTOR® (principal) requesting arbitration agrees to submit to the jurisdiction of, travel to, participate in, and be bound by any resulting award rendered in arbitration conducted by the respondent(s) REALTOR®'s association, in instances where the respondent(s) REALTOR®'s association determines that an arbitrable issue exists.

What is requires to be disclosed in a MD real estate sale contract?

The owner/seller is a real estate licensee The existence of possible tax charges for agricultural land development The name and title insurance company

The broker-owner agency relationship may be terminated without liability when which of the following occurs?

The parties mutually agree to terminate

Beneficial owner

The person getting the money, the person receiving the funds in a trust account other than the owner of the trust money, for his benefit a licensee holes the money. In summary the owner of an earnest money deposit is the purchaser while the beneficial owner is the seller!

Licensed property managers in Maryland must maintain related records for at least five years, beginning on the date ______. The last tenant moves out The property management agreement commences The property management agreement terminates The property management agreement was signed

The property management agreement terminates

What is the consequence when purchasers receive no Residential Property Disclosure and Disclaimer Statement before, at, and after entering into a purchase agreement?

The purchasers may rescind the contract before they apply for a mortgage loan

Managing Broker

The real estate professional who is responsible for supervision of the real estate professionals who act on behalf of the brokerage; may also be called a (supervising broker. ) important

The brokers ask requires that real estate brokers maintain trust money and an authorized account until one of four things happens

The real estate transaction is consummated or terminated and the money paid out as intended, the real estate broker receives proper written instructions from the owner and the beneficial owner agreeing on with drawl or other disposition of the trust money, a courtdirects disposition of bonds after a brokers filing an action of interpleader, and or when the owner or beneficial owner of the trust money fails to complete the real estate transaction for which the trust money wasn't trusted before distributing the trust money the real estate broker must notify both the owner and beneficial owner of the brokers intention to distribute the trust money to the party who in the brokers good faith opinion is entitled toReceive it in accordance with the terms of the real estate contract. Brokers may not be held liable for exercising the fourth option

Federal Trade Commission (FTC)

The registry is a list of telephone numbers from consumers eho have indicated their preference to limit the telemarketing calls they receive. But can send email

Agency

The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.

What is the most common type of agency?

The right to sell agency Buyer's broker receives commission if a property is found for the buyer It does not matter if the buyer or another realtor found the property; the broker is still compensated per the agreement

Who can be held responsible for material defects if he does not make them known before a closing?

The seller

Information that a licensee learns from clients must be kept confidential throughout the chat transaction and indefinitely some examples of these are

The seller/landlord being willing to except less than the advertise price, the buyer tenant being willing to pay more than the price reflected in the offer application, and any need of urgency, additional motivations, or information about either Party's personal life that could influence a negotiating price. Agents are for bidden to reveal confidential information to other clients customers team members fellow licensees neighbors and their own personal circle of friends and family the instruction is to tell no one during and after the transaction. This is a part of the companies regular training sessions for staff and personnel.

predatory lenders

The term predatory lending refers to mortgage practices that are used to take advantage of unsophisticated borrowers. * target elderly or minority groups, limited income

Credit reputation

The third part of the underwriting process is analyzing the loan applicant's credit reputation. The lender does this by obtaining a credit report, usually paid for by the applicant.

Customer

The third party or nonrepresented consumer for whom some level of service is provided.

The most important disclosure required by TILA is the loan's annual percentage rate (or APR). The APR is the relationship of the total finance charges to the total amount financed.

The total finance charges used in calculating the APR include interest, points paid by the borrower, the loan origination fee, and mortgage insurance or guaranty fees. * To accurately compare the cost of two loans, a buyer should compare the APR of the loans. * If the buyer simply compares the interest rates of the two loans instead, he will be misled. A lender may quote a low interest rate, but charge substantial loan fees, making the overall cost of the loan much higher than the quoted interest rate.

affirmative disclosure

The voluntary (affirmative) offering of relevant information or material facts that are known or "should have been known".

What should a teen name not include

The words real estate realty properties brokerage and the lake may not be used in the teams name although a broker is not a team member team members present themselves to the public as being part of one entity they doesn't make themselves buy a collective name such as team group or some similar term.The commission has indicated that it would welcome to use of prepositions like off or width between the name of the team and the name of the firm or and associates.

antitrust laws

These laws prohibit monopolies and any contracts combinations and conspiracies among competitors that unreasonably retrain trade that is behavior that interfere with the free flow of goods and services in a competitive marketplace.

When brokers handle the purchase and sale of the same residential real property, what can they do?

They may designate two intracompany agents if the principal consent has been given

Which is TRUE when brokers handle the purchase and sale of the same residential property?

They may designation two intracompany agents if proper consent has been given.

What is the effect on purchasers who have received the Residential Property Disclosure and Disclaimer Statement before signing their contract offer?

They may not rescind the contact based on any facts the statement discloses

Which of the following is TRUE of brokers when they represent buyers of real estate?

They must disclose this brokerage relationship to unrepresented sellers.

customer

Third party: a party to a transaction who is not a party to athe particular agency aggreement. Consumer third party is a ____ and not represented by any broker.

The federal Americans with disabilities act requirements for realty offices

This act requires their places of public accommodation be made reasonable modifications to meet the needs of persons with disabilities every firm with 15 or more employees and each of 20 weeks per year and this number includes affiliates must make reasonable accommodation to the needs of any person with a disability who works for the firm the farm should also have written policies on how to serve disabled customers and clients

Interpretations and Procedures Subcommittee

This body frequently makes recommendations to the Professional Standards Committee about enhancements to professional standards procedures and to the Code of Ethics. All changes that are proposed to the Code and to the policies and procedures by which the Code is enforced must be approved by the Board of Directors. Amendments to the 17 Articles must also be approved by the Delegate Body.

Willful Misrepresentation Page 173-175

This is treated s a fraudulent and illegal practice. • The broker has actual knowledge of a material fact and intentionally misinforms a party concerning such fact • The agent does not have actual knowledge of a material fact and provides incorrect information

Washington has an anti-predatory lending law called the Mortgage Broker Practices Act (MBPA).

This law prohibits mortgage brokers from engaging in fraudulent lending practices.

Sale of Property "As Is" Page 184

This means that the seller does not intent to make repairs. This does not affect a broker's duty to discover and disclose material facts to prospective buyers.

When does the Residential Property Disclosure/Disclaimer Statement need to be completed?

This must be completed at the time the licensee list the property

Residential Property Disclosure Act Page 185

This statute was effective January 1, 1996. It was amended January 1, 2012 to address information about owners' association and mandatory covenants and amended again January 1, 2015 to address mineral, oil and gas rights. The central requirement is that sellers of residential one-to-four-unit properties provide prospective buyers with a "residential property and owners' Association Disclosure Statement" and a "Mineral and Oil and Gas rights Disclosure." This is a mandatory form but is a voluntary disclosure. The seller can choose yes, no or no representation. This form is required whether the transaction is with or without a broker.

Both regulations and statutory law are usually enforced by?

Through fines and the denial, suspension, or revocation of licenses. CIVIL and criminal court actions also can be brought against violators in some serious cases

MD Real Estate Brokers Act

Title 17 of the Business Occupations and Professions Article of the Annotated Code of Maryland, a statutory law that governs real estate brokerages.

Team leader qualifications selection and duties

To be a team leader and licensee must either be an associate broker I have held a sales person license for three years team leaders are chosen by the members of the team, they must keep an accurate list of the team members and provide the roster to the branch manager and update the list as needed. The team leader must exercise reasonable and adequate supervision of all members of the team and conform to all relevant governmental rules and regulations as well as the firms policies and procedures. Teams can have their own policies but they must run in accordance with the office and company policies teams are supervised not just by the team leader but also by the higher levels of supervision to include the branch manager and the broker.

The underwriting standards

To help buyers arrange financing, real estate agents need to understand the criteria lenders use to evaluate potential borrowers. These criteria are known as qualifying standards or loan underwriting standards.

Realtors, multiple listing services and other proffesional organization

Trade groups such these... may neither set fees or commission splits nor deny memebership to a real estate broker belased on the fees that the broker charges.

Offers real estate services with no agency relationship. They have no duty of loyal or confidentiality.

Transaction Licensee

A broker is under no obligation to seek a buyer for a house that has been condemned for a highway right-of-way, as the listing agreement was terminated upon the condemnation.

True

A desk fee gives a sales associate the right to occupy space in a real estate firm's office.

True

A listing contract is a written agreement between a property owner and a real estate broker authorizing the broker to sell or lease property owned by the owner.

True

Commissions in the real estate brokerage industry tend to be larger as a percentage on residential properties than on commercial properties.

True

Getting a listing agreement signed is usually a process that involves two meetings with the seller.

True

Referral fees are allowed in real estate transactions and range between 20-25% of the commission earned by the broker representing the referred buyer or seller.

True

The broad exposure offered by franchised real estate firms often makes them attractive to property owners.

True

A seller pays a $5,225 sales commission on a house which sold for $95,000. This indicates that the listing agreement called for a 5.5 percent brokerage commission.

True 5,225/95,000 = .055 or 5.5%

True

True of False? Licensees must display the MREC Open House Disclosure sign when hosting an open house.

True

True or False? In Maryland, only a broker can function as a dual agency; sales persons and associate brokers can function as IPA's.

False

True or False? Statutory duties are not owed to non-clients, customers, and third parties.

If defects are found by the buyer after the preliminary inspection, but not brought to the attention of the seller, the buyer cannot sue for material defects at a later date. True or false.

True!

In Maryland, reasonable and adequate supervision includes a broker's responsibility to make training and educational sessions available to affiliated licensees at least every ______.

Two months

IRS (Internal Revenue Service)

Under the Qualified Real estate agent category set out in the Internal revenue code 26 USC 3508 the followingn three requirements must be met for a sales associate to establish a nonemployee status with the employing broker for tax pursposes..

UWREAR

Understanding Whom Real Estate Agents Represent Disclosure

Negligent Misrepresentation Pages 175-179

Unintentional misinformation concerning a material fact that should reasonably have been known. The question is whether the broker acted reasonably in relying on the source without independently investigating the matter to verify the accuracy of the information. Even if a disclaimer statement is provided when giving information to a party, the agent still has a duty to investigate facts whenever a reasonably prudent broker should have questioned the accuracy of the information. The seller's listing agent is expected to take reasonable steps to verify all property data when taking the listing and to accurately report such information to prospective buyers and other brokers. This can include mistakes compiling or communicating information about a property.

Common Law

Unwritten law founded by judges from the courts of appeal.

What is a mortgage lien considered?

Voluntary and Specific

Affirmative disclosure

Voluntary disclosure of material facts

affirmative disclosure

Voluntary offering of relevant information or material facts that are known or should have been known by a licensee

17-4-3

Were a buyer or tenant representative is compensated by the buyer or tenant and, as a result, the listing broker reduces the commission owed by the seller or landlord and, subsequent to such actions, another cooperating broker claims to be the procuring cause of sale or lease. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.

What is a designated agent?

When a broker represents both the seller and the buyer, the broker automatically acts in dual agency role Select designees within the same brokerage to exclusively represent both the buyer and the seller

intracompany agents (ICAs)

When a firm performs dual agency, ICAs must be appointed. A broker would appoint an ICA to represent the seller client and an ICA to represent the buyer client in the sale of a specific property.

intracompany agents (ICAs)

When a firm performs dual agency, ________ must be appointed. A broker would appoint one of these individuals to represent both the seller client and buyer client in the sale of a specific property.

fiduciary duties

When acting as an agent to the client, the licensee owes the following duties: care, obedience, loyalty, disclosure, accounting and confidentiality. Asa fiduciary, an agent is to put a client's interests first

fiduciary duties

When acting as an agent to the client, the licensee owes the following duties: care, obedience, loyalty, disclosure, accounting and confidentiality; to put a clients needs first.

Willful Omission Pages 179-180

When any broker has actual knowledge of material facts and intentionally fails to disclose those facts to all parties.The broker cannot withhold material facts about the property from a third party even if the buyer does not inquire about them and even if the property owner instructs the broker not to disclose them.

first face-to-face meeting

When meeting with an unrepresented party, a licensee will use the UWREAR agency disclosure form to either disclose an existing agency relationship or explain options of representation for an unrepresented party to consider.

first face-to-face contact

When meeting with an unrepresented party, a licensee will use the UWREAR disclosure form to either disclose a existing brokerage relationship or explain options of representation

When does agency law occur?

When one person hires another to represent them for a lawful transaction involving a third person, the customer

The use of the understanding whom real estate associates represent a form written disclosure is only needed when the meeting is with unrepresented parties here are examples of when the licensee will present the disclosure

When showing one of their listings to an unrepresented buyer, when assisting a buyer who has declined representation, or when approaching an unrepresented seller to arrange showing for a buyer client of the property. If this licensee submitted an offer to this under unrepresented seller the licensee would include the form with the offer this can also apply to a small builder who is not promoting the property within the MLS system

What is the best practice when showing a property to small groups?

When showing property, keep all members of the group together.

17-4-2

Where a buyer or tenant representative is compensated by the seller or landlord, and not by the listing broker, and the listing broker, as a result, reduces the commission owed by the seller or landlord and, subsequent to such actions, another cooperating broker claims to be the procuring cause of sale or lease. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. When arbitration occurs between two (or more) cooperating brokers and where the listing broker is not a party, the amount in dispute and the amount of any potential resulting award is limited to the amount paid to the respondent by the seller or landlord and any amount credited or paid to a party to the transaction at the direction of the respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.

17-4-5

Where a buyer or tenant representative is compensated by the seller or landlord, and not by the listing broker, and the listing broker, as a result, reduces the commission owed by the seller or landlord and, subsequent to such actions, claims to be the procuring cause of sale or lease. In such cases arbitration shall be between the listing broker and the buyer or tenant representative and the amount in dispute is limited to the amount of the reduction of commission to which the listing broker agreed.

17-4. Specific non-contractual disputes that are subject to arbitration pursuant to Article 17 are: 1

Where a listing broker has compensated a cooperating broker and another cooperating broker subsequently claims to be the procuring cause of the sale or lease. In such cases the complainant may name the first cooperating broker as respondent and arbitration may proceed without the listing broker being named as a respondent. When arbitration occurs between two (or more) cooperating brokers and where the listing broker is not a party, the amount in dispute and the amount of any potential resulting award is limited to the amount paid to the respondent by the listing broker and any amount credited or paid to a party to the transaction at the direction of the respondent. Alternatively, if the complaint is brought against the listing broker, the listing broker may name the first cooperating broker as a third-party respondent. In either instance the decision of the hearing panel as to procuring cause shall be conclusive with respect to all current or subsequent claims of the parties for compensation arising out of the underlying cooperative transaction.

17-4-4

Where two or more listing brokers claim entitlement to compensation pursuant to open listings with a seller or landlord who agrees to participate in arbitration (or who requests arbitration) and who agrees to be bound by the decision. In cases where one of the listing brokers has been compensated by the seller or landlord, the other listing broker, as complainant, may name the first listing broker as respondent and arbitration may proceed between the brokers.

Misrepresentation and Omission Terms Pages 172-173

Willful - done intentionally and deliberately Negligent - unintentionally done, but with a failure to exercise reasonable care Misrepresentation - communication of false or incorrect information Omission - failure to disclose material information Material fact - facts about the property itself or directly affecting the property or the principal's ability to complete the transaction

If a real estate brokerage firm decides to change its location what must you do

Within 10 days of changing the location of any office a real estate broker must submit written notice on a form provided by the commission of such a change of address, the license certificate in pocket card of the broker for the branch office is certificate and the required fee. Upon receipt of these things to commission issues a new certificate and card to the broker for the unexpired. Of the brokers license or branch office certificate. If a real estate broker change the address of the principal office and fails to submit the required notice the license of the broker is automatically suspended until the proper notice has been submitted

Unlicensed personal assistants:

Working for a sales associate (licensee) can be paid by the licensee( sales associate)

Licensed personal assistant

Working for a sales associate must be paid by the employing broker

Jim's had one heck of a time getting his latest listing sold. His seller client nitpicked every single item that the buyers asked her to repair after the home inspection. She was about to let the deal fall through over it until Jim offered to rebate 0.5% of his commission back to the seller. Does Maryland license law permit Jim to do this?

Yes, as long as he documents the commission reduction in writing and discloses it to all parties.

Jim's had one heck of a time getting his latest listing sold. His seller client nitpicked every single item that the buyers asked her to repair after the home inspection. She was about to let the deal fall through over it until Jim offered to rebate 0.5% of his commission back to the seller. Does Maryland license law permit Jim to do this? No. Licensees aren't permitted to pay (or rebate) compensation to unlicensed individuals. No. The commission rate written into the listing agreement is binding. Yes, as long as he documents the commission reduction in writing and discloses it to all parties. Yes, but only if the listing agreement is also updated to reflect the new commission rate.

Yes, as long as he documents the commission reduction in writing and discloses it to all parties.