Real estate Rhode Island Law

Testing/examination

$85 for brokers license $70 for salespersons license May be written or oral Request for an oral exam or time extension may be granted at the discretion of the department You have to keep retesting within one year and no longer without having to retake the course

Who is exempt from licensing?

1. Any person, partnership, association, corporations or any of their employees who want to acquire, lease, sell of deal in real estate that will be held for investment 1. Same as above just any owner, lessee, or lessor

Notice of eviction (week to week)

10 days notice

If you violate the rules and regulations how much money can the director levy an administrative penalty?

1000

The director can levy an admin penalty for any violation of the rules and regulations not to exceed

1000

Landlord must wait how many days before giving written notice to a tenant for nonpayment of rent

15 days

How many days does a landlord have to return security deposit

20 days

How many days does the landlord have to return the deposit

20 days

Landlord has how many days to fix things around the apartment

20 days

Notice of eviction (year to year)

3 months

How long do you have to keep all real estate records

3 years

What is the max amount allowed to be paid by the RERF

50,000 per licensee

Broker must get a property management trust account when handling how many units

6 or more

Real estate commission

9 people at least one from each county Citizen of the state for at least 10 years 3 current licensed brokers who have been brokers for at least 5 years in the state 4 have to be members of the general public

RI commission is made up of

9 people one from each county

Syndication

Acquiring real estate by multiple sponsors and investors

Commission

All commissions due to the licensee have to be paid within 10 days of the broker getting paid Every principal broker needs to write a written policy for the licensee upon termination: Broker will make a complete accounting in writing of what is paid to the salesperson If the broker doesn't pay commission on time he needs to complete a written explanation Accounting should be made within 30 days after the termination of employment Licensee can create a corporation or LLC to receive commission payments from the broker but can't sell real estate in his her own name

When listing a property one becomes

An agent of the seller

DBR vs commission

Commission is a subsidiary of the DBR DBR staffs the commission board DBR is federal government where the commission is locat DBR regulates real estate, banking, insurance, securities, charitable organizations, commercial licensing, athletes, health insurance, design

D.B.R.

Department of business regulation

DCR

Department of conservation and recreation

Real estate recovery act

Dept of business regulation establishes this account Covers anyone aggrieved by an act, misrepresentation, transaction or conduct of a licensed real estate broker upon the grounds of fraud, misrepresentation or deceit may recover no more than 50000 per one license Can't be used to reimburse any broker or salesperson Agents pay a fee for the deposit in the real estate recovery fund when they first get their license Dec 31 of any year if the recovery fund is less than 200000 agents pay a fee of $25 when renewing their license Agents/ brokers must pay back the recovery fund plus 12% a year

Who is a protected class victims of assault or victims of domestic violence

Domestic violence victims

What isn't a free hold estate

Estate for a period

When do licenses have to be renewed

Every 2 years on May 1 of each even numbered year

Lead inspection & asbestos mitigation requirements

Every real estate transaction built prior to 1978 needs to provide that buyers are given a 10 day period to conduct a risk assessment or inspection for lead, asbestos. If you don't give the buyer 10 days you can be penalized between 100-500 Buyer can void contract if not given 10 days and it is before the closing

Freehold estates

Fee simple Fee simple condition Life estate remainder

What can you do if agent isn't working hard enough

File a complaint with the department of business regulation

What isn't personal property

Fixtures

Expiration of license

For licenses that are expired it costs 100 dollars plus renewal fee for a broker or salesperson If a license is expired for more than one year you must complete a new application and retake the test. License needs to be examined if it has been expired for more than one year For each application to renewal there is a fee of $10

What has an indefinite duration

Freehold estate

Escrow agents

Funds placed in escrow held by a person legally authorized to do so Ex: real estate broker or attorney

What clause in the deed conveys the rights and privileges of ownership

Granting clause

Who has to sign a deed

Grantor

Involuntary alienation

Having a piece of land sold for delinquent taxes

At very first meeting licensee must disclose

He has ownership interest in property He is acting on behalf of a family member He has a business interest in the property

Abandonment

If landlord doesn't hear from tenant they have to send a notice to their previous address saying if they don't hear from him or her within 7 days then he will recent property

What does exclusive agency listing and open listing have in common

If the seller sells the property he or she does not owe the real estate agent a commission

Holdover

Living in the unit after evicted If tenant remains in possession after rental agreement then the landlord can evict which may be filed no earlier than the expiration of contract Complaint for reason other than nonpayment of rent Tenant has 20 days to file his or her answer to the complaint Landlord can recover 3 months of rent plus lawyers fees

RERF

Real estate recovery fund

Dual activities

Real estate transactions where the broker holds more than one title Ex: builder, contractor, insurance agent

What does a suit for specific performance usually do

Requires the seller to still sell the house

Rescission

Return to the status quo prior to the execution of the contract

Who is responsible for acquiring smoke detector and carbon monoxide detectors

Seller

What do you send to the tenant who is more than 15 days late in rent

Send a 5 day demand for payment

How does real property become personal property

Severance

Fee simple determinable

So long as

Who does the fire safety codes and inspection

State fire Marshal

What happens if the landlord doesn't return the security deposit

Sue landlord for the amount due and damages equal it twice amount withheld

What happens when a landlord excludes the tenant from the premises and interrupts the utilities

Tenant can recover possession of rental agreement. Recover 3 months rent for damages

In a joint tenancy if one sells interest to someone else....what is the relationship of the new owner to the old owner who still owns half

Tenants in common

When is a quitclaim deed most appropriate

To remove a cloud on the title

What is the purpose of a deed

To transfer title rights

What kind of contract exchanges a promise for an act

Unilateral

Protected class

Victims of domestic violence Gender identity or expression Familial status

If you alter an already signed contract it is considered

Void

When selling time shares when don't you need a real estate license

When your an owner and own more than 15% of stock

DBR vs. commission

Within DBR is RI real estate commission Commission adopts rules and regulations to carry out its purposes DBR with the assistance of the commission establishes rules that are appropriate for that program to ensure that education and practice requirement of license holders meet the public interest Commission doesn't receive pay only necessary compensation for expenses out of pocket Commission supervises operations in the real estate division within the DBR

Do you have to use your brokers name in your real estate ad?

Yes

When a salesperson contract is terminated

You must submit in writing to the director within ten days of any change in broker/salesperson affiliation

Who do you usually get e and o insurance from

Your broker/company working for

Buyers rights to inspection

purchaser gets a 10 day period to conduct inspections of the property and any structures there one before the purchase becomes obligated under contract to purchase Parties can choose to agree on a different period of time

Is seller, buyer etc. refuses to sign a mandatory disclosure form then....

The licensee needs to sign and date a written declaration of the facts of the refusal

Personal property

Chattel Trade fixtures Emblements

Unlawful appropriation

Licensee to whom any money or property is entrusted as escrow funds who uses the money or property from his or herself by transferring money to a company or personal account

When don't you have to disclose relationship

A new home just built

What is an option on real property

A contract

Homestead is....

A statutory right

Penalty for practicing without a license

Any broker or salesperson without a license is guilty of a misdeamenor and is punished no less than 100 dollars and no more than 500. Or can go to a prison for 1 year. Second offense is between 500 and 1000 and up to 2 years Corporation no less than 1000 and no more than 2000 the second offense is a fine of between 2000- 5000

If a buyer wants something to be tested he or she should

Ask for a 10 day extension

DBR subpoena powers and penalties

Before DBR refuses to issue/suspend a license they have to notice the licensee with reasoning Applicant can file a request for a hearing to fight their decision DBR has to set a date and notify licensee within 20 days DBR issues subpoena all over the state to attend court and can be served by whoever they want

When do you need E & O insurance

Before applying for real estate license

Who gets the interest from the escrow account

Broker unless negotiated otherwise

Any money that is made illegally:

Can be penalized up to three times the amount

What can creditors suing a homeowner that has homestead exemption do?

Can request a court ordered sale and apply the proceeds to debts

Errors and omissions insurance

In order to have a license you must have and maintain errors and omissions insurance covering all business activities Must obtain the insurance independently Dept of business regulation determine the terms and condition of coverage Certificate of coverage must be filed with the dept of business regulation by the annual license renewal date Min requirements for E&O Insurance: Individual licensee- insurance needs to be at least 50,000 and 150,000 aggregate For brokers blanket policy: The minimum coverage needs to be at least 50,000 x amount of salespersons and 150000 x Amount of salespersons Brokers blanket policy needs to be in total of 300000 and 1 million dollars in one case at any time

Nonpayment of rent

Landlord gives notice after 15 days Landlord gives 5 day demand for payment After 5 days can evict them

Notice of eviction (month to month)

Landlord has to give you 30 day notice of eviction

Statue of frauds

Law that requires real estate contracts need to be in writing

What does an abstract need with it to prove evidence of title

Legal Opinion of title

Mandatory disclosure

Licensee needs to provide copy of the disclosure form and needs to get a signed acknowledgement of receipt from the buyer, seller, tenant or landlord

How to lose your license

Misrepresentation Fraud False promise Misleading advertising Failing to deposit money into escrow Failing to keep 3 years of records Acting as a dual facilitator without consent Placing for sale sign without consent Failing to show a copy of records Not writing a termination date of contract Inducing someone to break contract so they can use me as a salesperson Accepting money for a referral Not disclosing intentions to a client Convicted of criminal felony Violating rules/regulations Broker not overseeing salesperson Refusing to provide info Soliciting real property Paying or accepting money for referral Failing to have listing agreements in writing No net listing Negotiating a property when someone is already in contract with another agent Accepting an agency and failing to make an effort to sell property Advising against use of an attorney Representing lenders/party interest of property's a false sales contract Commingling escrow money Advertising property of another in a manner is being made by a party not engaged in real estate business Can't advertise the property under anyone else's name but mine No advertisements in publications containing only address, phone number Have to hand over all records to broker Giving commission to someone who isn't a real estate licensee Soliciting the sale of a property because a specific race is in the neighborhood Broker needs to tell the director within 10 days that he or she is leaving the office The director can penalize up to 1000 for any of these violations t

What happens if person wants to change the agency relationship?

Must be established no later than the preparation of a sales agreement, offer to purchase or lease

What does a landlord do if he is a nonresident of the state

Must hire an agent that is registered with the state

Escrow deposit rules

Must maintain an escrow account under principal broker Can not commingle deposit money Need to keep deposit/withdrawal records for 3 years Office/admin needs to keep a monthly report of escrow account May be applied to the commission when earned by the listing company If there is a dispute about the money in the escrow the broker needs to give the money to the general treasurer within 180 days until the dispute is over

Do you have to be a resident of RI to obtain a license

NO

Continuing education

Need 24 hours in 2 years

If principal brokers status changes:

Need to notify the department within 10 days

Do you need motorized signatures in a contract

No

Do you need the grantees signature for a deed to be valid

No

Not renewing license on time or failing to do CE is that considered suspension of license

No

When is the latest you can disclosure your relationship

No later than the signing of a sales contract

How long can you revoke a real estate license

No longer than one year

Who is exempt from RI licensing

Nonresident real estate broker/salesperson doesn't need to go through all the same tastings as long as they're licensed in some other state and have a business in another state. Also the provisions have to be the same as RI law Broker from RI can pay a broker in MA to do business for him provided that the nonresident real estate broker doesn't conduct any RI business

How much money can a landlord take for a security deposit

One months rent

Who has the maps/records of the underground tanks

Owner of the house & dem may have a copy Some have been there for years...before dem so then there are no records

What does a life estate convey to a life tenant

Ownership for life

RERF paid for your judgement in order to gain your license back what do you have to do

Pay back the recovery fund plus 12% per year

Confidentiality

Principal broker shall implement reasonable procedures to protect the confidential information of all clients of the Designated client rep and facilitator

Who is exempt from fair housing laws

Private clubs Religious organizations Discriminating against loans because of bad credit Familial status 2+ units owner occupied 4 units of less owner occupied and one person is a senior citizen Elderly housing 55+ unit with 80% 55+