Deck 18: Licensing Laws and Professional Affiliation

Question 1

Over time, states have established licensing requirements dealing with all EXCEPT

A) minimum age.
B) education.
C) residency.
D) Intelligence Quotient (IQ).

Answer 1

D
States do not have IQ requirements.

Question 2

When moving to a new state, a licensed real estate agent in one state can presume his license status in the former state will be given credit in his new state of residence

A) always.
B) sometimes.
C) never.
D) when moving to Texas only.

Answer 2

B
When moving to a new state, a licensed real estate agent in one state sometimes can presume his license status in the former state will be given credit in his new state of residence.

Question 3

The first state to legislate licensing requirements for real estate agents was

A) Texas.
B) Rhode Island.
C) California.
D) New York.

Answer 3

C
The first state to legislate licensing requirements for real estate agents was California in 1917.

Question 4

A real estate broker differs from a real estate salesperson under the law in that the

A) broker is liable for the acts of the salesperson.
B) salesperson may take a listing with him when he changes brokers.
C) law recognizes no differences.
D) salesperson is responsible for the acts of the broker.

Question 5

A real estate broker's or salesperson's license would most likely be revoked for

A) failure to pay REALTORS® dues.
B) misrepresentations.
C) failure to practice real estate.
D) failing to split a commission with an unlicensed individual.

Question 6

A nonexempt person who sells real estate for others

A) must always be licensed.
B) need not be licensed if there is no listing agreement..
C) must be a licensed broker.
D) can sell real estate to people in other states.

Question 7

In most states, a person is exempt from licensure as a real estate agent when performing which of the following activities, even if receiving a fee?

A) Renting resort condominiums for the owner as a commissioned rental agent
B) Negotiating an exchange of properties where no cash changes hands
C) Selling real property as an executor of an estate
D) Dealing in land options

Question 8

Real estate commissions typically do all of the following EXCEPT

A) review license exam answers.
B) hold hearings in response to complaints of improper actions of licensees.
C) enact new real estate legislation or amend existing legislation.
D) determine the number and location of exam testing sites.

Question 9

Who can sell real property WITHOUT a license?

A) Anyone, as long as they only sell one property per year
B) An attorney, acting within his duties as an attorney
C) Anyone, as long as they do not sell more than $100,000 worth of property in any one year
D) A judge who is helping out a friend

Question 10

Which of the following is responsible for processing license applications, issuing real estate licenses, and collecting license fees?

A) State legislature
B) Federal Department of Real Estate Licenses
C) Attorney General
D) State Real Estate Commission or Department

Question 11

Since real estate agents will be handling other people's money, some states will examine licensee's

A) bank account.
B) credit history.
C) age.
D) financial statement.

Question 12

When a broker joins a franchise organization, the financial arrangements usually include

A) a salary paid to the broker.
B) a percentage of income paid to the franchiser.
C) free jackets to the sales associates.
D) salary to the agents.

Question 13

A typical broker-salesperson employment contract should include all of the following EXCEPT

A) sales commission splits and earned bonuses.
B) services to be supplied by the broker.
C) tax withholding requirements.
D) employment status.

Question 14

Real estate commissions or departments act to protect the public by regulation and education. The following would be the usual activity of these organizations EXCEPT

A) requiring a specific number of answers on a real estate license exam.
B) requiring all licensees to be reexamined every two years.
C) holding public hearings in response to complaints of improper actions of licensees.
D) requiring a licensee to post a bond or contribute to a recovery fund.

Question 15

The basic intent for real estate license laws and regulations was to

A) help brokers settle their disputes.
B) protect the public.
C) protect the broker
D) control the real estate market.

Question 16

A residential real estate salesperson can usually expect from his or her principal broker all of the following EXCEPT

A) supervision, training and advice.
B) signs, advertising, office space and supplies.
C) payment of dues to the local REALTORS® Association.
D) access to multiple listing services.

Question 17

A state-run program where real estate license fees are used, in part, to pay uncollected judgements against licensees is a

A) bonding program.
B) recovery fund.
C) multiple listing service.
D) equalization fund.

Question 18

In which states are licensing examinations required for a real estate license?

A) Only the western states
B) All but the New England states
C) All but Texas, Hawaii and Alaska
D) Every state

Question 19

In the following examples, who needs a real estate license?

A) Trustees selling foreclosed property for a lender
B) Government employees finding tenants for government properties
C) An attorney at law selling his clients property to settle an estate
D) A nonexempt person dealing in real property for others for compensation

Question 20

Who, of the following would be required to have a real estate license?

A) A secretary who answers the phone in a real estate office
B) An attorney who specializes in real estate law
C) An escrow officer
D) A person who solicits buyers and sellers for a broker

Question 21

The National Association of REALTORS® has sponsored many groups to further enhance the industry;they include all of the following EXCEPT

A) Society of Industrial REALTORS®.
B) Farm and Land Institute.
C) Society of Real Estate Appraisers.
D) Institute of Real Estate Management.

Question 22

The sales associate, affiliated with a broker, who brings about a sale is paid by the title company.

Question 23

The term "REALTOR®" is synonymous with

A) real estate broker.
B) real estate license.
C) a member of NAR.
D) a real estate company.

Question 24

A real estate listing is a contract between

A) the owner and the listing broker.
B) the owner, the broker, and the listing salesperson.
C) the owner and the listing salesperson.
D) the broker and the listing salesperson.

Question 25

Which of the following is NOT a real estate license category?

A) Salesperson
B) Broker
C) Attorney-in-fact
D) Both a and c

Question 26

Real estate brokers may operate a business as a sole proprietorship under their own name only.

Question 27

A listing is a contract between a property owner and the salesperson taking the listing.

Question 28

When a broker fell on hard times, he stopped paying his dues to NAR for two years. He still uses the REALTOR® designation in his advertising and on his business cards. Which of the following is true?

A) NAR can do nothing
B) The broker can be sued by NAR
C) The broker can be disciplined by the Real Estate Commission
D) The broker is a member for life, so he is free to use the REALTOR® designation

Question 29

For a corporation to be granted a license as a real estate broker, all officers must be licensed as real estate brokers.

Question 30

Typically there is no specific educational requirement for obtaining a salesperson license.

Question 31

The ultimate responsibility for a mistake in a document prepared by a real estate salesperson rests equally upon the salesperson and the employing broker.

Question 32

Which of the following may conduct a real estate brokerage business without a proper license?

A) Members of the state bar
B) Attorneys-in-fact
C) Both a and b
D) Neither a nor b

Question 33

A duly qualified person who has passed the real estate license exam and joined a brokerage firm is most properly referred to as a licensee.

Question 34

Pat has a license and contractual rights to sell real estate in a typical state. This licensee may be presumed to be all of the following EXCEPT

A) an agent or subagent.
B) a licensee.
C) a broker or salesperson.
D) a REALTOR®.

Question 35

Which of the following could be licensed as a real estate broker?

A) A corporation
B) A partnership
C) An actual person
D) Any of the above

Question 36

Which of the following is a copyrighted term owned by NAR?

A) Realty
B) Realtist
C) REALTOR®
D) Narob

Question 37

A person who sells real estate for others

A) must be licensed in order to collect compensation.
B) need not be licensed if no compensation is involved.
C) both a and b.
D) neither a nor b.

Question 38

Brokers who wish to operate outside their home state will usually be required to file a notice of consent with the secretary of state in each state in which they wish to operate.

Question 39

Continuing education requirements exist for the purpose of requiring licensees to stay up-to-date in their field.

Question 40

In most states, a branch office maintained by a licensed brokerage firm must secure a branch office license in the firm's name.

Question 41

Real estate salespeople may reasonably be expected to work for a salary.

Question 42

The broker in charge of an office is called the ____________________ broker.

Question 43

A ____________________ is a person or legal entity license to act independently in conducting a real estate brokerage business.

Question 44

A license may be revoked upon proof of violation of fair housing laws.

Question 45

In most states, members of the real estate commission are full-time employees appointed by the governor.

Question 46

The term REALTOR® applies to any licensed real estate salesperson.

Question 47

The GRI designation is offered by the state real estate commissions.

Question 48

When the property being sold is an investment contract in real estate rather than real estate itself, the broker may be required to have a securities license in addition to a real estate license.

Question 49

A(n)____________________ contractor is one who contracts to do work according to their own methods and is responsible to his employer only for the results of that work.

Question 50

To recall and make void is to ____________________.

Question 51

Executors of estates are specifically exempt from holding a real estate license.

Question 52

A designation awarded for completion of real estate courses sponsored by Boards of REALTORS® is the GRI or Graduate of the REALTORS® ____________________.

Question 53

A recovery fund is a state-operated fund that can be tapped to pay real estate brokers who have claims against other brokers.

Question 54

A ____________________ license is required of a real estate broker in order to conduct negotiations within another state.

Question 55

Property owners who want to sell their home are interested in how much it will cost to sell it.

Question 56

A real estate ____________________ is a state board that advises and sets policies regarding real estate licensees and transaction procedures.

Question 57

Any person who earns a real estate commission and is not licensed is guilty of breaking the law.

Question 58

To temporarily make ineffective is to ____________________.

Question 59

Interpretations of various articles of the REALTORS® Code of Ethics is known as the ____________________ of Practice.

Question 60

The party holding a franchise such as a franchised brokerage office is called a ____________________.

Question 61

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
required when selling an investment contract

Question 62

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
a registered trademark owned by the National Association of REALTORS® for exclusive use by its members

Question 63

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
a salesperson or broker employed by a broker

Question 64

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
one who holds a license

Question 65

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
one who uses his own methods and is responsible only as to results

Question 66

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
a state board that advises and sets policies regarding real estate licensees and real estate transaction procedures

Question 67

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
formalizes the working arrangement between the broker and his salespersons

Question 68

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
to recall and make void

Question 69

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
membership designation for salespersons and broker licensees working for REALTORS®

Question 70

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
the party holding a franchise such as a franchised brokerage office

Question 71

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
to temporarily make ineffective

Question 72

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
a person who is licensed to bring about real estate transaction for a fee, but who do so only in the employment of a real estate broker

Question 73

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
a requirement for license renewal in many states, its purpose is to help licensees keep up to date in real estate

Question 74

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
permits the secretary of state to receive legal summonses on behalf of a nonresident broker

Question 75

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
a state-operated fund that can be tapped to pay for uncollectible judgments against real estate licensees

Question 76

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
a local trade organization for real estate licensees and other persons allied with the real estate industry

Question 77

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
a business operated under any name other than the owner's name

Question 78

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
required of a real estate broker in order to conduct negotiations within another state

Question 79

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
an independent agent who negotiates transactions for a fee

Question 80

Choose the one most appropriate answer for each.
a.broker
k.real estate commission
b.continuing education
l.real estate salesperson
c.employment contract
m.REALTOR®
d.fictitious business name
n.REALTOR-Associate®
e.franchisee
o.realty board
f.independent contractor
p.recovery fund
g.licensee
q.revoke
h.nonresident license
r.sales associate
i.notice of consent
s.securities license
j.principal broker
t.suspend
broker in charge of an office