Practice Test GeeksPSI - Exams Practice Test
← All PSI Flashcard Decks

Licensing Laws and Regulations Flashcards

7 cards from real PSI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Licensing Laws and Regulations flashcards as text

  1. A real estate license applicant is denied a license due to a prior criminal record. The applicant's best course of action is to:

    Answer: Request a formal hearing before the licensing board

    Applicants who are denied a license are entitled to request a formal administrative hearing to contest the decision.

  2. Which of the following is NOT typically a ground for disciplinary action under real estate license law?

    Answer: Representing only one party in a transaction

    Representing only one party is legal and common in real estate; it is the other listed acts that constitute license law violations.

  3. A salesperson wants to operate their own real estate company. What must they do first?

    Answer: Obtain a broker's license

    Only a licensed broker can operate an independent real estate brokerage; a salesperson must first upgrade to a broker's license.

  4. The primary purpose of state real estate licensing laws is to:

    Answer: Protect the public from incompetent and dishonest practitioners

    Licensing laws exist primarily as consumer protection measures to ensure practitioners meet minimum standards of competency and ethics.

  5. A real estate salesperson leaves Broker A and affiliates with Broker B. Pending transactions from the salesperson's time at Broker A are:

    Answer: Handled by Broker A since transactions are tied to the brokerage

    Transactions belong to the brokerage, not the individual salesperson, so pending deals stay with Broker A when the salesperson departs.

  6. A licensee is placed on probation by the state licensing board. This means the licensee:

    Answer: May continue to practice under conditions set by the board

    Probation allows the licensee to continue practicing while meeting specific conditions set by the board, such as supervision or education.

  7. A consumer files a complaint with the real estate licensing board. What is the board's primary role in this process?

    Answer: To investigate whether a license law violation occurred

    The licensing board's role is regulatory — it investigates violations and imposes professional sanctions, not financial damages.