Licensing Laws and Regulations Flashcards

A real estate licensee moves to a new address. Under most state licensing laws, within how many days must the licensee notify the state licensing board?

Answer: 30 days

Most states require licensees to notify the licensing board of an address change within 30 days.

Which of the following acts would most likely result in license revocation rather than suspension?

Answer: Failing to disclose a material defect knowingly

Knowingly concealing a material defect is fraud, which typically warrants revocation rather than a lesser penalty.

A salesperson who has passed the licensing exam but has not yet affiliated with a broker may:

Answer: Not practice real estate in any capacity

A salesperson's license is not activated until they are affiliated with a sponsoring broker, prohibiting any real estate practice.

Which of the following best describes 'reciprocity' in real estate licensing?

Answer: An agreement allowing licensees from one state to obtain licensure in another without full re-examination

Reciprocity allows out-of-state licensees to gain licensure in a new state, often waiving some or all examination requirements.

A real estate licensee is convicted of a felony. The licensing board is most likely to:

Answer: Revoke or suspend the license based on the nature of the crime

Most boards evaluate felony convictions on a case-by-case basis, with revocation or suspension depending on the nature and severity of the crime.

Under the license law, an unlicensed assistant may legally:

Answer: Schedule appointments and perform clerical tasks

Unlicensed assistants may perform administrative and clerical tasks but may not engage in activities requiring a license.

A broker's license is automatically revoked in most states if the broker:

Answer: Does not renew within the grace period after expiration

Operating on an expired license after the grace period has elapsed typically results in automatic revocation in most states.