Additional Law Questions Flashcards
Who must comply with the state license laws?
a. A farmer who conveys his farm to his son.
b. A person employed by a corporation specifically to anyone who prepares an opinion of value of real estate transactions.
c. A court appointed administrator who is required to sell the real estate involved assets of a probated estate.
d. A real property owner involved in a like kind exchange with another property owner who is represented by a licensee.
b. A person employed by a corporation specifically to anyone who prepares an opinion of value of real estate transactions.
A real estate licensee may have his/her license revoked for:
a. listing for less than the standard commission.
b. selling part-time.
c. accepting compensation for brokerage services from someone other than the employing broker.
d. changing employment from one broker to another.
c. accepting compensation for brokerage services from someone other than the employing broker.
Which of the following is /are regulated by the real estate license laws?
a. A receiver in a bankruptcy.
b. An individual charging a referral fee that is paid only if a closing takes place.
c. A sub-divider selling his/her lots.
d. A friend who gave information to another individual that resulted in a rental agreement.
b. An individual charging a referral fee that is paid only if a closing takes place.
A license may be suspended upon proof of:
a. charging more than the normal rate of commission.
b. an individual charging a finder’s fee for referral of information leading to a listing.
c. stating to a prospective client that the listing commission is set by state law.
d. representing both the buyer and seller in one transaction.
c. stating to a prospective client that the listing commission is set by state law.
As a salesperson involved in a real estate transaction, you may accept a commission from the:
a. grantee
b. grantor
c. employing broker
d. real estate commission
c. employing broker
A salesperson may advertise a property for sale only:
a. if he/she personally listed the property.
b. if the name of the employing broker is in the ad.
c. if the broker is entitled to use the term “Realtor®”
d. if the salesperson pays for the ad out of his/her commission.
b. if the name of the employing broker is in the ad.
The Rhode Island Department of Business Regulation has jurisdiction to do which of the following?
a. Establish the commission splits between co-operating real estate brokers.
b. Regulate rates of commission charged by real estate brokers.
c. Set the salespersons commissions with the employing broker.
d. Establish that all real estate commissions are negotiable.
d. Establish that all real estate commissions are negotiable
A broker can have his/her license revoked for:
a. establishing an office commission split policy that does not conform to Rhode Island License La10w.
b. paying a licensee a flat fee.
c. failing to pay salespeople their earned commissions.
d. establishing a commission bonus program for top producers
c. failing to pay salespeople their earned commissions.
A real estate broker hires an office administrator who does not have a real estate license. The broker agrees to pay the office administrator a fixed salary. Which of the following duties may the office administrator perform?
a. Giving information over the phone regarding the selling price of the property.
b. Showing units to lessees of property managed by the broker.
c. Telephone solicitation of sale listings from prospective sellers.
d. Typing contracts submitted by the salespeople in the broker’s office.
d. Typing contracts submitted by the salespeople in the broker’s office.
Which of the following requires a real estate license when performed for compensation?
a. Assisting a listing to find a tenant to rent a store.
b. Assembling an option contract on land for an interested buyer.
c. Selling stock for a real estate investment company.
d. Selling personal property items.
a. Assisting a listing to find a tenant to rent a store.
Which of the following is/are entitled to a hearing before the real estate licensing commission?
a. One who has failed the license exam three times.
b. One who has passed the state licensing exam and has been denied a license.
c. One who has failed the real estate pre-license training course.
d. One who has passed the real estate pre-license training course and fails the state licensing exam the first time.
b. One who has passed the state licensing exam and has been denied a license.
A broker is guilty of commingling if he/she maintains client’s monies:
a. in a special account that is separate from the broker’s personal and business accounts.
b. returns an earnest money deposit to a perspective buyer following a seller contract default
c. in a sealed envelope in the office safe.
d. in a client escrow account with accrued interest payable to the broker.
c. in a sealed envelope in the office safe
Which of the following actions on the part of a real estate broker or salesperson who represents the seller could result in license revocation?
a. Submitting a written offer to an owner that is lower than other offers the owner had previously refused.
b. Encouraging a prospective buyer to submit an offer that is below the listed price.
c. Quoting to prospective buyer’s a sale price that is lower than the listed price.
d. Advertising the fact that the seller has reduced the asking price for the property
c. Quoting to prospective buyer’s a sale price that is lower than the listed price.
A licensee could have his/her license revoked for:
a. failure to devote full time to the real estate business.
b. listing a property for an excessive commission.
c. failing to hold an open house at a property that has been listed with him/her for over 6 months.
d. failing to disclose to the buyer customer the agency relationship he/she has with the buyer.
d. failing to disclose to the buyer customer the agency relationship he/she has with the buyer.
- Which of the following is not required in an application for a real estate salesperson’s license?
a. U.S. citizenship.
b. Being 18 years or more in age.
c. Trustworthiness and honesty.
d. Competence.
a. U.S. citizenship.
A broker’s license can be revoked if he/she:
a. uses a corporation where the broker is a major stockholder to buy listed property, after disclosing this interest to the listed property owner.
b. following presentation to a property owner of a Mandatory Real Estate Relationship Disclosure stating that he/she is a Designated Seller Representative, buys the property that he/she personally listed.
c. directs a salesperson to make the first bid on the property without notifying the owner in writing that the prospective purchaser works for the broker.
d. orders a salesperson to refuse to accept a real estate relationship for an overpriced listing contract from an owner.
c. directs a salesperson to make the first bid on the property without notifying the owner in writing that the prospective purchaser works for the broker.
Which of the following is/are true of each broker licensed in the state?
a. The broker may engage in the business of real estate in less then a full time capacity.
b. The broker may describe himself/herself as a Realtor®.
c. The broker will work only with buyers as buyer’s agent.
d. The broker will not accept listings if the property is located in certain areas of the town.
a. The broker may engage in the business of real estate in less then a full time capacity.
Which of the following needs a real estate license?
a. A builder-developer who sells a home in his/her own development.
b. A salaried regular employee for the said builder–developer who sells only real estate owned by the builder-developer.
c. The owner of four homes who has placed all four homes “for sale”.
d. A builder/developer who is hired by you for a fee to locate a new home for you that was built by his/her competitors
d. A builder/developer who is hired by you for a fee to locate a new home for you that was built by his/her competitors.
A broker may deposit into the client escrow deposit account:
a. a small amount of the broker’s money to keep the account open.
b. commissions that have been paid to the broker.
c. amounts of monies that are required to advertise the properties of clients.
d. the current yearly budget amount to market properties of the clients.
a. a small amount of the broker’s money to keep the account open.
Which of the following is/are true?
a. A broker needs to present to the owner only the highest written offer.
b. A broker may place a “for sale” sign on the listed property without the written authorization of the owner to do so.
c. The broker must show all listings to any person wishing to see the listings.
d. A broker acting as a Designated Seller Representative, cannot divulge confidential personal information about the seller.
d. A broker acting as a Designated Seller Representative, cannot divulge confidential personal information about the seller.
What are the legal responsibilities of a broker concerning the monies entrusted to him/her in a real estate transaction?
a. Deposit all client/customers monies in a depository or trust account immediately after receipt of the funds.
b. Establish a separate trust account for each client the broker represents.
c. Provide a full accounting to each party of all receipts and distributions of any fund entrusted to him/her by the parties.
d. Pro-rate all accrued interest of the trust account to all the parties having monies in the account at the time the interest is earned.
c. Provide a full accounting to each party of all receipts and distributions of any fund entrusted to him/her by the parties.
Which of the following can file suit to collect an earned commission?
a. A presently inactive salesperson who wants to sue his/her former broker for payment of earned but unpaid commissions.
b. A license candidate permitted by the sponsoring broker to observe a successful real estate transaction as a part of their training.
c. A former client that referred a seller to the licensee, who collected a commission upon the sale of the property.
d. Any party that was involved in the real estate sales transaction.
a. A presently inactive salesperson who wants to sue his/her former broker for payment of earned but unpaid commissions.
If a salesperson makes a misrepresentation in selling property:
a. the prospective buyer is prohibited from buying the property as a result of the misrepresentation.
b. the contract can be voided by the buyer and the salesperson can be disciplined by the licensing authority.
c. the sale is automatically voided and the salesperson will be fined 5% of the earned commission by the listing authority.
d. The sale stands, but the licensee will have their license revoked.
b. the contract can be voided by the buyer and the salesperson can be disciplined by the licensing authority.
The purpose of the license law is to:
a. provide additional revenue for the state.
b. protect licensees from unfair competition.
c. protect the general public.
d. regulate the number of people entering the real estate industry
c. protect the general public.
The Rhode Island Real Estate Recovery Fund may be used to settle which of the following?
a. A claim by a real estate agent against a broker for unpaid commissions.
b. A monetary loss by a person who sold property to a licensee when the licensee did not disclose they were also the purchaser.
c. To compensate a seller for the loss sustained when the property sold for less than market value.
d. To compensate a seller when the broker charges more than the prevailing commission rate to market the property.
b. A monetary loss by a person who sold property to a licensee when the licensee did not disclose they were also the purchaser.
In Rhode Island, the real estate license law is administered by the:
a. R.I. Commission for Human Rights.
b. R.I. Department of Business Regulations.
c. R.I. Association of Realtors©.
d. R.I. Real Estate Commission.
b. R.I. Department of Business Regulations.
How are the members of the R.I. Real Estate Commission selected?
a. By the Governor of R.I.
b. By public election.
c. By the R.I. Association of Realtors®.
d. Election by the R.I. real estate licensees.
a. By the Governor of R.I.
The Director of the R.I. Department of Business Regulations has the authority to:
a. make and enforce rules and regulations by which R.I. real estate licensees must abide.
b. compose the examination questions on the R.I. licensing examination.
c. administer the examinations given at the testing sites.
d. enact laws that govern the R.I. real estate licensee.
a. make and enforce rules and regulations by which R.I. real estate licensees must abide.
The Director of the R.I. Department of Business Regulations may undertake an investigation of a licensee based on all of the following grounds EXCEPT:
a. the Department’s own initiative.
b. a random selection of licensees.
c. a motion from the members of the R.I. Real Estate Commission.
d. a verified written compliant submitted by a disgruntled customer.
b. a random selection of licensees.
In Rhode Island, a real estate license is required for a:
a. person who employs fewer than 3 apartment leasing agents.
b. licensed attorney acting under a power of attorney to convey real property.
c. resident apartment manager working for an owner, if the manager’s primary residence is in the building being managed.
d. a business partnership selling a building owned by the partnership.
a. person who employs fewer than 3 apartment leasing agents.
A real estate license is required for which of the following:
a. resident manager collecting rents on behalf of the building owner.
b. a company that matches individuals from different parts of the country who want to exchange properties and for a fee assists them in the exchange.
c. not-for-fee real estate referral service.
d. executor selling a decedent’s property under the provisions in a will.
b. a company that matches individuals from different parts of the country who want to exchange properties and for a fee assists them in the exchange
According to Rhode Island law, any person other than the owner who sells an individual co-operative unit must:
a. be licensed as a commodities broker.
b. have his/her securities license endorse by the R.I. Real Estate Commission.
c. be approved by the Securities and Exchange Commission.
d. There are no special requirements for a person to sell a single co-operative unit.
a. be licensed as a commodities broker.
According to R.I. License Law, a partnership, association or corporation will be granted a license only if:
a. the broker retains a current license.
b. every member and officer actively participating in the brokerage has a broker’s license.
c. all the proper papers are filed with the R.I. Secretary of State.
d. the brokerage business has paid a “one-time” guaranty fee.
a. the broker retains a current license.
“Engaging in the real estate business” consists of acting for another for a fee in all of the following EXCEPT:
a. managing real estate.
b. re-selling mobile homes.
c. selling vacant lots.
d. collecting rent for another’s use of real estate.
b. re-selling mobile homes.
The office manager for a local real estate firm is responsible for the following activities: preparing forms, advertising copy, and hiring and supervising clerical personnel. The office manager is:
a. violating the license law.
b. required to have a broker’s license.
c. required to have a sales-persons license
d. exempt from the real estate licensing requirements.
d. exempt from the real estate licensing requirements.
In Rhode Island applications for any real estate license must:
a. be completed and submitted to the Rhode Island Department of Business Regulations after taking the written real estate licensing examination.
b. contain a picture of the applicant.
c. be submitted before May 31st of each year.
d. be submitted to the Office of the Rhode Island Attorney General.
a. be completed and submitted to the Rhode Island Department of Business Regulations after taking the written real estate licensing examination.
All Rhode Island real estate licensee’s wishing to keep their real estate license active are required to renew their existing licenses prior to:
a. December 31 every 2 years.
b. Every 2 years on the date of their license was originally issued.
c. October 31 of every odd year.
d. Never
b. Every 2 years on the date of their license was originally issued.
Three weeks before N begins his real estate pre-license course, he offers to help his neighbor sell her house. The neighbor agrees to pay N a 5% commission. An offer to purchase is accepted while N is taking his class and the property closing takes place on the day N passes the salesperson licensing examination and subsequently receives his license. The neighbor refuses to pay N the agreed commission. Can N sue to recover the commission?
a. Yes, because N was formally enrolled in a course of study intended to result in obtaining a real estate license at the time an offer was procured and accepted, the commission is legal and binding.
b. No, in Rhode Island, a real estate salesperson must work in a permanent real estate office. In which his/her license is displayed in order to collect a commission.
c. Yes, while the Statute of Frauds prohibits recovery on an oral agreement for the conveyance of real property, Rhode Island law permits enforcement of an oral commission under these circumstances.
d. No, because N was not a legal licensee at any step in this real estate transaction.
d. No, because N was not a legal licensee at any step in this real estate transaction.
Which of the following must have a real estate license to legally conduct business?
a. A person that owns a six unit apartment building and personally manages the building, collects rents and shows vacant unit to perspective tenants, etc..
b. A person who negotiates the sale of entire businesses, including the land, buildings and equipment for a fee.
c. The resident superintendent of a large apartment building who shows apartments to perspective tenants as part of his/her duties.
d. A person who is an Attorney in Fact for the sale of his/her parents vacation home
b. A person who negotiates the sale of entire businesses, including the land, buildings and equipment for a fee.
An unlicensed individual who engages in activities for which a real estate license is required is subject to which of the following penalties for the first offense?
a. A fine not to exceed $5,000.
b. A fine not to exceed $500 and/or 1 year imprisonment or both.
c. A civil penalty of $5,000 in addition to other penalties provided by law.
d. A civil penalty of $1,000 and/or 2 years in prison or both.
b. A fine not to exceed $500 and/or 1 year imprisonment or both.
When does a R.I. real estate salesperson’s license expire as of January 1, 2020?
a. March 31 of every even numbered year.
b. Every 2 years on the anniversary of the date on your license.
c. December 31 of the third year of licensure.
d. January 31 of every odd numbered year.
b. Every 2 years on the anniversary of the date on your license.
- To renew a real estate license in R.I. a salesperson must:
a. pay a fee of $85.
b. be actively participating in the real estate industry.
c. have completed 24 hours of continuing education within the past period that they were licensed, 9 of those hours must come from designated core courses.
d. have completed 12 hours of continuing education within the past 2 years, 6 of those hours must come from certain core courses.
c. have completed 24 hours of continuing education within the past period that they were licensed, 9 of those hours must come from designated core courses.
A licensee who allows their license to remain inactive has how long to reinstate the license without re-examination?
a. There is no “free” time.
b. No more than 2 years.
c. One year from the last June 23, he/she had an active license.
d. Up to 1 year.
d. Up to 1 year.
In R.I., an unlicensed real estate assistant may perform all of the following activities EXCEPT:
a. enter conditions of a purchase offer as dictated by a perspective buyer on preprinted contract documents.
b. assemble legal documents required for a real estate closing
c. compute commission checks.
d. prepare and distribute promotional flyers
a. enter conditions of a purchase offer as dictated by a perspective buyer on preprinted contract documents.
Personal real estate assistants in Rhode Island:
a. must be licensed.
b. may insert factual information into pre-printed contract forms under the direct supervision of the supervising broker.
c. may independently host open houses and home show booths where the assistant provides information about the properties to inquirers.
d. must be unlicensed individuals; licensee’s must be either salespeople or associate brokers.
b. may insert factual information into pre-printed contract forms under the direct supervision of the supervising broker.
If a person obtains a reciprocal real estate broker’s license he/she must:
a. be licensed as a broker or salesperson in any reciprocal licensure state.
b. establish a permanent place of business in Rhode Island or be licensed under the supervision of a resident Rhode Island broker.
c. take all continuing education course requirements in Rhode Island.
d. file a Power of Attorney with the Rhode Island Director of the Department of Business Regulations.
d. file a Power of Attorney with the Rhode Island Director of the Department of Business Regulations.
In addition to an application for a reciprocal license. what additional documentation must anon-resident licensee file with the Director of the Department of Business Regulations to obtain a Rhode Island reciprocal license?
a. A certificate of specific performance and Copy of his/her birth certificate.
b. A Power of Attorney naming the Rhode Island Director of the Department of Business Regulations as their Attorney in Fact with respect to the applicants observance of Rhode Island laws. A letter of good standing and a record of continuing education courses attended from their states licensing authority. A copy of their current state real estate license.
c. Copy of his/her birth certificate. A corpus delicti statement.
d. A certificate of specific performance and Copy of his/her birth certificate and a corpus delicti statement.
b. A Power of Attorney naming the Rhode Island Director of the Department of Business Regulations as their Attorney in Fact with respect to the applicants observance of Rhode Island laws. A letter of good standing and a record of continuing education courses attended from their states licensing authority. A copy of their current state real estate license.
Which of the following statements about the Rhode Island Real Estate Commission is NOT true?
a. Members of the commission are selected by the Rhode Island Association of Realtors®
b. The Governor - State of Rhode Island selects the members of the commission.
c. The commission supplies License Law questions for the real estate Licensing examination.
d. Decisions reached by the commission are subject to approval of the Director of the Rhode Island Department of Business Regulation
a. Members of the commission are selected by the Rhode Island Association of Realtors®
The resident manager is a regular W-2 employee for Acme Apartments and is responsible for negotiating leases for the apartments. In this position, the on-site manager:
a. must have a salesperson’s license.
b. must have a broker’s license.
c. is exempt from the licensing requirements.
d. is violating license law.
c. is exempt from the licensing requirements.
A Mrs. K. wants to sell her own house. Which of the following is true?
a. In Rhode Island anyone who sells real property must first have a real estate license issued by the Rhode Island Department of Business Regulation
b. Mrs. K may obtain a temporary license in order to legally sell her property.
c. Mrs. K may sell her house without a license only if she is a licensed attorney.
d. Mrs. K does not need a real estate license to sell real property that she owns.
d. Mrs. K does not need a real estate license to sell real property that she owns.
Which is a requirement to obtain a real estate license in Rhode Island?
a. Successful completion of 12 credit hours of real estate law, investments, finance and appraisal.
b. An associate degree in real estate or certificate of successful completion from an accredited college, university or proprietary school.
c. United States and Rhode Island citizenship.
d. Attendance of 45 hours in an approved Pre-license course and successful completion of an examination covering the general principals of real estate and the Rhode Island License Law.
d. Attendance of 45 hours in an approved Pre-license course and successful completion of an examination covering the general principals of real estate and the Rhode Island License Law.
Which of the following situations would satisfy the Continuing Education requirements for license renewal every two years?
a. Attending approved CEU courses that result in the accumulation of 12 hours of classroom participation.
b. Attending approved CEU courses that result in the accumulation of 18 hours of classroom participation.
c. Attending approved CEU courses that result in the accumulation of 24 hours of classroom participation of which 9 of the 24 CEU hours are from the core subjects of, Real Estate License Law & Ethics, Fair Housing Law, Lead Hazard Mitigation, Law of Agency, Law of Contracts
d. Teaching a pre-license course several evenings a week.
c. Attending approved CEU courses that result in the accumulation of 24 hours of classroom participation of which 9 of the 24 CEU hours are from the core subjects of, Real Estate License Law & Ethics, Fair Housing Law, Lead Hazard Mitigation, Law of Agency, Law of Contracts
Which of the following statements is true for workers who are renovating a residential building that was built before 1978?
a. No special training is required
b. There must be a lead-free certificate
c. They must have two years of experience with lead mitigation
d. They must be lead-safe certified
d. They must be lead-safe certified
A broker who holds a Rhode Island license by reciprocity, but whose home state is Connecticut, will be exempt from the requirement that he/she maintain a definite place of business in Rhode Island if all of the following factors are met EXCEPT:
a. if the broker maintains a fixed office location in Connecticut.
b. if an active Broker’s license is maintained by the broker in the state of Connecticut.
c. if a least one Rhode Island licensee (salesperson or associate broker) is in the employ of the broker
d. if the broker files a Power of Attorney appointing the Director of the Rhode Island Department of Business Regulations (RIDBR) as his/her Rhode Island agent for service of process and submits to the RIDBR’s jurisdiction and agrees to abide by the provisions of the Rhode Island Real Estate Licensing Act.
c. if a least one Rhode Island licensee (salesperson or associate broker) is in the employ of the broker
A person must be licensed as a real estate salesperson or broker if that person is legally:
a. selling his/her own house.
b. for valuable consideration marketing real property owned by others.
c. buying a home for his/her own use.
d. contracting to construct new homes for clients.
b. for valuable consideration marketing real property owned by others.
A licensed broker, Broker Q, procures a ready, willing, and able buyer for Broker Q’s seller-principal. The seller accepts the buyer’s written offer, then experiences a change of heart and will not sell the property. In this situation the Broker Q:
a. is entitled to collect a commission.
b. is without recourse because the transaction was never completed.
c. must sue the buyer for the commission.
d. may retain the earnest money deposit as commission.
a. is entitled to collect a commission.
