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
A real estate broker is found to have violated license law. Which disciplinary action would allow the broker to continue practicing with oversight?
Answer: Probation
Probation is a sanction that permits continued practice subject to conditions, unlike revocation which terminates the license.
A licensee who has had their license suspended wishes to get it reinstated. They must generally:
Answer: Satisfy the conditions set by the board and apply for reinstatement
Reinstatement after suspension usually requires demonstrating compliance with board-imposed conditions and formally applying for reinstatement.
Under license law, a broker must keep transaction records for a minimum period, typically:
Answer: Three to five years
Most states require brokers to retain transaction records, including contracts and trust account records, for three to five years.
Which of the following individuals is typically EXEMPT from real estate licensing requirements?
Answer: An attorney-in-fact acting under a power of attorney for a family member's property sale
Individuals acting under a power of attorney to sell property on behalf of a family member are generally exempt from licensing requirements.
A broker who has been in business for 20 years applies for license renewal but has not completed required continuing education. The state board will most likely:
Answer: Deny renewal until the education requirement is satisfied
Continuing education is a mandatory renewal requirement regardless of experience, and the board will deny renewal if it is incomplete.
A state real estate license law is sometimes called a 'license law' rather than a 'licensing act.' What is the correct legal term for the body of rules adopted by the state commission to implement the license law?
Answer: Administrative rules or regulations
The statutes passed by the legislature are the license law, while the detailed implementing rules adopted by the commission are called administrative rules or regulations.
A licensee advertises a property on social media without including the name of their brokerage. This is a violation because:
Answer: All advertising must identify the licensed brokerage to avoid misleading the public
License laws require that all advertising clearly identify the brokerage so consumers know who is responsible for the representation.