PSI Licensing Laws and Regulations 2

Question 1

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?

Accepted Answer

30 days

Answer

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

Question 2

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

Accepted Answer

Failing to disclose a material defect knowingly

Answer

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

Question 3

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

Accepted Answer

Not practice real estate in any capacity

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

PSI - Exams Practice Test

PSI - Exams Practice Test

PSI Licensing Laws and Regulations 2