Additional Law Questions Flashcards
1
Q
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.
A
b. A person employed by a corporation specifically to anyone who prepares an opinion of value of real estate transactions.
2
Q
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.
A
c. accepting compensation for brokerage services from someone other than the employing broker.
3
Q
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.
A
b. An individual charging a referral fee that is paid only if a closing takes place.
4
Q
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.
A
c. stating to a prospective client that the listing commission is set by state law.
5
Q
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
A
c. employing broker
6
Q
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.
A
b. if the name of the employing broker is in the ad.
7
Q
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.
A
d. Establish that all real estate commissions are negotiable
8
Q
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
A
c. failing to pay salespeople their earned commissions.
9
Q
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.
A
d. Typing contracts submitted by the salespeople in the broker’s office.
10
Q
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
a. Assisting a listing to find a tenant to rent a store.
11
Q
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.
A
b. One who has passed the state licensing exam and has been denied a license.
12
Q
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.
A
c. in a sealed envelope in the office safe
13
Q
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
A
c. Quoting to prospective buyer’s a sale price that is lower than the listed price.
14
Q
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.
A
d. failing to disclose to the buyer customer the agency relationship he/she has with the buyer.
15
Q
- 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
a. U.S. citizenship.
16
Q
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.
A
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.
17
Q
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
a. The broker may engage in the business of real estate in less then a full time capacity.
18
Q
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
A
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.
19
Q
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. a small amount of the broker’s money to keep the account open.
20
Q
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.
A
d. A broker acting as a Designated Seller Representative, cannot divulge confidential personal information about the seller.
21
Q
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.
A
c. Provide a full accounting to each party of all receipts and distributions of any fund entrusted to him/her by the parties.
22
Q
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. A presently inactive salesperson who wants to sue his/her former broker for payment of earned but unpaid commissions.
23
Q
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.
A
b. the contract can be voided by the buyer and the salesperson can be disciplined by the licensing authority.
24
Q
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
A
c. protect the general public.
25
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.
26
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.
27
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.
28
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.
29
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.
30
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.
31
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
32
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.
33
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.
34
“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.
35
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.
36
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.
37
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.
38
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.
39
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.
40
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.
41
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.
42
42. 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.
43
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.
44
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.
45
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.
46
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.
47
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.
48
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®
49
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.
50
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.
51
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.
52
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
53
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
54
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
55
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.
56
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.
57
A real estate licensee X working for a real estate company is working with seller A as a Designated Seller Representative and with Buyer B as a Designated Buyer Representative with both seller A and buyer B. Buyer B is interested in making an offer on seller A’s property. Can this legally occur?
a. No, because this would put the real estate company in dual agency.
b. Yes, as long as written Real Estate Relationship disclosures have been entered into with both seller A and buyer B.
c. No, not unless buyer B agrees to pay the commission owed by seller a.
d. Yes, if seller A ,buyer B, the licensee and company A’s broker give their consent in writing to the Dual Facilitator Representation of licensee X.
d. Yes, if seller A ,buyer B, the licensee and company A’s broker give their consent in writing to the Dual Facilitator Representation of licensee X.
58
Seller listed his property with salesperson J who is affiliated with real estate company A. The listing agreement with real estate company A has expired and seller R lists the property with a different brokerage firm. J now has a buyer who is interested in seller R’s property. Which of the following described the position that J is in?
a. J is a Dual Facilitator.
b. J cannot disclose to the buyer offers received on the seller R’s property while it was listed with salesperson J.
c. J cannot disclose information about the physical condition of the property to the buyer.
d. J cannot represent the buyer.
b. J cannot disclose to the buyer offers received on the seller R’s property while it was listed with salesperson J.
59
A real estate salesperson has been working with Buyers H. After helping them find their dream home, Buyers H ask the salesperson to help them find and secure a moving company. The salesperson knows a moving company that will pay a referral fee directly to the salesperson for referring buyers to them. Should the salesperson refer the buyers to this moving company?
a. No, not if the licensee is going to accept the referral fee from the moving company. All compensation for real estate transactions must come from the employing broker.
b. Yes, if the salesperson and the Buyers H have entered into a written Exclusive Buyers Representation Agreement.
c. Yes, if the salesperson discloses the referral fee to the buyers.
d. Yes, if the moving company has a good reputation and charges rates comparable to other moving companies.
a. No, not if the licensee is going to accept the referral fee from the moving company. All compensation for real estate transactions must come from the employing broker.
60
A buyer prospect is interested in seeing a home listed with a real estate company, but does not wish to enter into a Exclusive Buyer’s Representation Agreement with a salesperson of the company. The salesperson from the company can show the buyer the in-house listing if the:
a. salesperson obtains the seller’s permission.
b. buyer verbally agrees to Exclusive Buyer Representation Agreement.
c. salesperson provides the buyer with a Mandatory Real Estate Relationship Disclosure that the salesperson represents the buyer as a Neutral Transaction Facilitator.
d. salesperson provides the buyer with a Consensual Dual Agency Disclosure form.
c. salesperson provides the buyer with a Mandatory Real Estate Relationship Disclosure that the salesperson represents the buyer as a Neutral Transaction Facilitator.
61
In Rhode Island, an Exclusive-Buyers Representation Agreement is:
a. required to state this fact in the body of the contract.
b. not equivalent to a property listing agreement.
c. required to have the signature of the principal only.
d. illegal.
a. required to state this fact in the body of the contract.
62
In Rhode Island Exclusive Buyer Representation Agreements:
a. must be on a specific form.
b. must be in writing to be legally enforceable.
c. are not regulated under R.I. laws.
d. are illegal.
b. must be in writing to be legally enforceable.
63
All of the following provisions are required by license law to be in a Rhode Island real estate listing contract EXCEPT the provision that:
a. a listing agreement must state the commission the broker will earn upon completion of the hired task.
b. a listing agreement must be accompanied by a qualified expert’s report of the properties condition.
c. a listing agreement must be in writing and signed by both the seller(s) ( or authorized representative) and the broker ( or authorized representative).
d. the seller(s) must receive a true copy of the listing agreement “as soon as possible” after signing the agreement.
b. a listing agreement must be accompanied by a qualified expert’s report of the properties condition.
64
In Rhode Island upon first contact with a consumer the licensee has what type of Real Estate Relationship with that consumer?
a. Consumers Agent
b. Designated Buyer’s Representative if the consumer is a buyer.
c. Designated Seller’s Representative if the consumer is a seller.
d.Transaction Facilitator
d.Transaction Facilitator
65
In a Dual Facilitation situation, a broker may collect a commission from both the buyer and the seller if:
a. the broker has a state issued Dual Facilitation license.
b. the buyer and seller are related by ancestry or marriage.
c. All parties (seller, buyer, licensee, licensee’s broker) give their written consent to the Dual Facilitation.
d. both parties are represented by licensed attorneys.
c. All parties (seller, buyer, licensee, licensee’s broker) give their written consent to the Dual Facilitation.
66
A buyer walks into an open house of a property that is listed by XYZ Realty. The listing licensee is a designated client representative for the seller. The listing licensee’s relationship to the buyer would be
a. As a transaction facilitator for the buyer
b. As a dual facilitator
c. As a designated client representative for the buyer
d. As a transaction facilitator for both the buyer and seller
a. As a transaction facilitator for the buyer
67
A seller is required to give a buyer a real estate sales disclosure in all of the following transactions EXCEPT:
a. when the seller is not assisted by a real estate agent.
b. if the seller has not lived in the house for the past year.
c. a sale of commercial property.
d. if the buyer has lived on the property as a tenant.
c. a sale of commercial property.
68
A Real Estate Sales Disclosure must be delivered to the buyer:
a. at the time of the home inspection.
b. prior to closing.
c. at the time the seller agrees to an offer.
d. prior to the buyer making a written offer.
d. prior to the buyer making a written offer.
69
A seller has no knowledge of any plumbing system problems in the property she is selling. In actuality, the pipes are seriously corroded and will need replacement soon. In the Real Estate Disclosure when she responds to the question as to whether the seller has any knowledge of plumbing problems, she should answer:
a. “yes”.
b. “no”.
c. “unknown”.
d. the seller should leave the question un-answered.
b. “no”.
70
In Rhode Island, when a broker is listing a home and asks the seller to complete a Real Estate Disclosure, which of the following is true unless exempt?
a. The disclosures are optional, and the seller may avoid liability by refusing to make any disclosures about the condition of the property.
b. The standard disclosures cover only a narrow range of structural conditions.
c. The seller is allowed to make choices about which conditions they disclose and which conditions they do not disclose.
d. Real Estate Disclosures are mandated by R.I. law for sales of 1 to 4 family residences unless exempt..
d. Real Estate Disclosures are mandated by R.I. law for sales of 1 to 4 family residences unless exempt..
71
A salesperson represents a seller in a transaction. When prospective buyers are prepared to make a written offer on the property, the salesperson must:
a. inform them that they must first enter into a Buyer’s Agency Agreement with another licensee.
b. inform them in writing that the salesperson represents the seller.
c. verbally inform them that the salesperson is an agent of the seller.
d. write the offer without any disclosures about the salesperson’s agency relationship with the seller. Such disclosure would be a violation of the fiduciary with the seller.
b. inform them in writing that the salesperson represents the seller.
72
Five years ago Unit 7A in a condominium community was the scene of a brutal and highly publicized murder. The unit was later sold to an elderly woman who contracted the AIDS virus in a blood transfusion. She died in the unit last year. As the designated client representative for the woman’s estate what are your disclosure responsibilities to prospective purchasers of Unit 7A?
a. You must disclose both the murder and the woman’s death due to the AIDS virus.
b. If asked by a prospective purchaser about either event you cannot answer untruthfully if you choose to answer at all.
c. You are specifically prohibited by law from disclosing either event.
d. You do not need to disclose the murder, but you must disclose the circumstances of the elderly woman’s death.
b. If asked by a prospective purchaser about either event you cannot answer untruthfully if you choose to answer at all.
73
A real estate licensee must give the mandatory relationship disclosure to prospective buyers or tenant’s:
a. before they are shown any properties.
b. at an open house.
c. at the closing table.
d. Before the disclosure of any confidential information
d. Before the disclosure of any confidential information
74
All newly licensed salespersons shall pay a fee of $25.00 to be deposited into:
a. The Department of Business Regulations Fund
b. The Rhode Island Resource Recovery Fund
c. The Rhode Island Real Estate Commission Fund
d. The Real Estate Recovery Fund
d. The Real Estate Recovery Fund
75
A Principal Broker may return a deposit to a buyer or renter only after:
a. A minimum of 180 days have passed from the original contract date
b. The Principal Broker makes a good faith determination that the Seller or Landlord has forfeited his or her rights to the deposit.
c. Not less than three years from the date of receipt of funds
d. The Buyer or Renter has requested so in writing.
b. The Principal Broker makes a good faith determination that the Seller or Landlord has forfeited his or her rights to the deposit.
76
In order to take a commission, a licensee shall, at the first point of personal contact disclose all of the following except:
a. The Brokerage of which the licensee is affiliated
b. The Licensee's status as Sales Person, Broker or Broker Associate
c. That the Licensee is acting on behalf of a family member
d. That the Licensee has sold the property previously
c. That the Licensee is acting on behalf of a family member
77
When accepting deposit funds from a buyer, the salesperson must immediately:
a. Make a copy of the check and forward it to the lender
b. Place it in the clients folder for safe keeping
c. Turn over the deposit monies received promptly to his or her Principal Broker
d. Deposit the funds into the escrow account that has been designated by the Broker.
c. Turn over the deposit monies received promptly to his or her Principal Broker
78
Every Principal Broker shall ensure that their affiliated Licensees keep records of all funds and property of others received by them for not less than:
a. 3 years
b. 1 year
c. 7 years
d. 5 years
a. 3 years
79
What type of listing agreement is illegal in the State of Rhode Island:
a. Rental Listing
b. Exclusive Right of Brokerage Listing
c. Net Listing
d. Exclusive Right to Sell Listing
c. Net Listing
80
Every 2 years, Licensees must complete, unless specifically exempted, how many hours of continuing education
a. 24
b. 45
c. 90
d. 36
a. 24
81
Under Rhode Island General Law 5-20.5-14, Revocation, Suspension of License, the Director is authorized to levy an administrative penalty for any violation of the Rules and Regulations, in the amount not to exceed:
a. $10,000
b. $500
c. $3,500
d. $2,000
d. $2,000
82
A Licensee may have their licensed revoked or suspended for all of the following except:
a. Making any substantial mis-representation
b. Acting for more than one party in a transaction without the knowledge and written consent of all parties for who he or she acts.
c. Failure to providing Buyers and Sellers of real property with disclosure regarding Real Estate Agency Relationships
d. Failure to report all oral offers to the owners prior to the signing of a purchase and sales agreement by the owner.
d. Failure to report all oral offers to the owners prior to the signing of a purchase and sales agreement by the owner.
83
Under the RI Fair Housing Practices Act, which of the following is not a protected class:
a. Gender identity or expression
b. Familiar status
c. Smokers
d. Victims of domestic violence
c. Smokers
84
How many days must a landlord wait to give written notice to a tenant for non-payment of rent:
a. 15
b. 20
c. 30
d. 5
a. 15
85
After a tenant gives a landlord notice of a repair request, how many days does the landlord have to cure the defect:
a. 15
b. 20
c. 30
d. 5
b. 20
86
What is the maximum amount of a Security deposit a landlord can request from a tenant :
a. ½ month’s rental payment
b. Any amount that the landlord and tenant agree upon
c. 1 month’s rent
d. 3 months rent
c. 1 month’s rent
87
If a landlord is a non-resident of the State, what much he do:
a. Hire a handy man in case repairs need to be made
b. Get a Post Office Box for the Tenants to send their monthly rents
c. Visit the property at least once per month to make sure all is well
d. Hire an in-state Agent that is registered with the State and Municipality.
d. Hire an in-state Agent that is registered with the State and Municipality.
88
A landlord has how many days to return a tenant’s security deposit after the later of either the termination of the lease, delivery of possession, or receipt of forwarding address:
a. 15
b. 20
c. 30
d. 5
b. 20
89
The Real Estate Sales Disclosure should be presented:
a. At time of closing, signed by attorney
b. As soon as practicable, but no later than the signing of a sales contract
c. Not required in Rhode Island
d. Anytime during inspection period.
b. As soon as practicable, but no later than the signing of a sales contract
90
The Real Estate Sales Disclosure is required for all of the following EXCEPT:
a. Vacant land
b. An owner occupied two family home
c. A new home just built
d. Single family home
c. A new home just built
91
A property you have listed for sale was the location of a recent suicide. You should:
a. Disclose this information to all
b. Refer the buyer to the local law enforcement agency
c. Refuse to answer any questions about it
d. Do nothing unless asked specifically about it.
d. Do nothing unless asked specifically about it.
92
Twelve days after a property was under contract, the buyer asks for well to be tested .
a. Seller must comply with the new state law
b. Buyer should have asked for an extension within 10 days
c. Wells only require testing if under 200 feet in depth
d. Not applicable, wells were phased out in 2013
b. Buyer should have asked for an extension within 10 days
93
A licensed sales person has a judgment against them paid by the Rhode Island Recovery Fund. In order for the agent to regain a license, they must:
a. Take the license test again
b. Pay back the Recovery Fund
c. Apologize to the broker in their office
d. Pay back the Recovery Fund plus 12% per year
d. Pay back the Recovery Fund plus 12% per year
94
The maximum amount allowed to be paid from the real estate Recovery Fund as an award is
a. $25,000 total
b. $50,000 total
c. $25,000 per licensee
d. $50,000 per licensee
d. $50,000 per licensee
95
The RI Real Estate Commission is composed of
a. 9 people from across the State
b. 9 people from across that State that have lived in RI for 6 years or more
c. 8 people, one with a degree in engineering
d. 9 people, at least one from each county
d. 9 people, at least one from each county
96
Real estate transaction deposit funds must :
a. Be held by buyer's agent account until sales contract signed
b. Be held by seller's broker until sales contract signed
c. Be deposited in brokers account or account of attorney or builder, as mutually agreed
d. Be held by buyer until sales contract signed
c. Be deposited in brokers account or account of attorney or builder, as mutually agreed
97
The person responsible for acquiring the smoke detector/carbon monoxide inspection is:
a. The listing agent
b. The buyer's agent
c. The seller
d. The buyer
c. The seller
98
In Rhode Island, there are additional protected classes under the Fair Housing laws and they include all of the following EXCEPT:
a. Gender Identity and Expression,
b. Victims of Assault
c. Sexual Orientation
d. Marital Status
b. Victims of Assault
99
In Rhode Island, the following are exempt from all the Fair Housing Laws:
a. An owner occupied four family with elderly residents in the other units
b. A private or religious organization renting to its own members
c. The owner of a single family home selling without the use of a licensee who owns four other homes
d. The owner of a two family looking for a tenant of the same sexual orientation.
b. A private or religious organization renting to its own members
100
In all forms of print media, including but not limited to yard signs, billboards, business cards, business and legal forms, automobile signage, promotional items, etc. the Brokerage’s informational shall:
a. Include Principal Brokers license number
b. Be in a font size larger than any Licensee or Team name in the advertisement
c. Display the REALTOR® ‘R’ trademark
d. List Brokerage’s business hours
b. Be in a font size larger than any Licensee or Team name in the advertisement
101
E & O insurance must be acquired:
a. From an insurance company designated by DBR
b. From an insurance broker
c. Prior to taking the state exam
d. Prior to applying for a real estate license
d. Prior to applying for a real estate license
102
In order to obtain a real estate license in Rhode Island, the applicant must have all of the following EXCEPT:
a. Be 18 years of age or older
b. Be a resident of the State of Rhode Island
c. Complete 45 hours of classroom time
d. Provide a criminal background check.
b. Be a resident of the State of Rhode Island
103
A tenant vacated his rental unit on March 31st and supplied the landlord with his forwarding address. The landlord has how many days to return the deposit?
a. 20
b. 24
c. 14
d. 10
a. 20
104
If a tenant removes all her possessions, not paid rent in more than 15 days and has no intention of returning, the property is considered
a. forfeited
b. abandoned
c. unconscionable
d. to have a voidable lease
b. abandoned
105
If a landlord fails to return the security deposit in a timely manner, the tenant may
a. move back in for one periodic term, rent free
b. sue the landlord for ‘equitable settlement’
c. sue the landlord for the amount due + damages equal to twice amount withheld
d. sue the landlord for the amount of the security deposit
c. sue the landlord for the amount due + damages equal to twice amount withheld
106
If a tenant is more than 15 days late in paying rent, the landlord may
a. immediately sue for eviction
b. send a 5 day demand for payment
c. terminate the lease agreement
d. shut off the utilities
b. send a 5 day demand for payment
107
The tenant may arrange for repairs of up to $125 and deduct the cost from his/her rent EXCEPT
a. when tenant notifies landlord of his intention to do so at landlord’s expense
b. when landlord fails to make repairs within 20 days
c. when tenant itemizes fair and reasonable value of the repairs
d. when repairs are needed as a result of tenant's negligent or intentional acts
d. when repairs are needed as a result of tenant's negligent or intentional acts
108
If a tenant is unlawfully excluded or their services diminished their recourse is to
a. recover possession or terminate the rental agreement.
b. recover up to 3 months' periodic rent or 3 times actual damages
c. both A and B
d. neither A or B
c. both A and B
109
A landlord must reasonably accommodate a qualified physically disabled tenant if the tenant
a. provides an estimate and deposit to modify the unit for their needs
b. requests the modifications in writing
c. signs an Americans with Disabilities Act rider
d. deposits an amount equal to three times the modification work
a. provides an estimate and deposit to modify the unit for their needs
110
How much may a landlord collect as a security deposit
a. no more than two months + pet and/or cleaning deposit
b. no more than one month + pet and/or cleaning deposit
c. no more than two months/two times the periodic rent
d. no more than one month/the periodic rent
d. no more than one month/the periodic rent
111
Dual agency is
a. Against the law in Rhode Island
b. A great way to make more commissions
c. Not applicable
d. Requires the buyers and sellers permission.
c. Not applicable
112
Every purchaser of any interest in residential real property on which a residential dwelling built prior to 1978 must be notified
a. that smoking indoors is a fire hazard
b. where smoke alarms are located
c. that property may present exposure to lead from lead-based paint
d. If there has been mold remediation in the dwelling
c. that property may present exposure to lead from lead-based paint
113
Earnest deposit checks must be
a. Deposited in an interest bearing account
b. Held by the licensee until contract signed by all parties
c. Given to the broker
d. Deposited in the listing agent's escrow account.
c. Given to the broker
114
To renew your Real Estate license, you must show proof of completion of how many hours of continuing education credits?
a. 6
b. 24
c. 45
d. 12
b. 24
115
The Rhode Island Real Estate Commission consists of how many members?
a. 9
b. 3
c. 10
d. 4
a. 9
116
Any person acting as a Broker or Salesperson without obtaining a Real Estate License is guilty of a misdemeanor, and if convicted will be punished with a fine of?
a. Not less than $100; nor more than $500
b. Not less than $1000; nor more than $2000
c. Not less than $1000; nor more than $5000
d. Not less than $2000; nor more than $10000
a. Not less than $100; nor more than $500
117
If a Real Estate licensee receives a deposit from a client or customer, puts it in a file folder and fails to turn it into the Principal Broker, the licensee can have their license revoked for?
a. Coercion
b. Escrow Fraud
c. Commingling
d. Theft
c. Commingling
118
The Real Estate Recovery Fund was created to protect?
a. The Salesperson who is being sued
b. The Real Estate Commission
c. The Broker with whom the Salesperson is Associated
d. The Public
d. The Public
119
An express written contract between a Principal Broker and their affiliated licensee, and the client that authorizes the Broker or their designee to act as a client representative for a buyer, seller, tenant, or landlord is known as?
a. A Purchase and Sales Agreement
b. A Mandatory Relationship Disclosure
c. A Client Representation Agreement
d. An Agency Relationship in Real Estate
c. A Client Representation Agreement
120
As a transaction facilitator, you may?
a. Advise and counsel
b. Perform ministerial acts
c. Complete a comparative market analysis
d. Suggest an offer price to a buyer
b. Perform ministerial acts
121
A Mandatory Relationship Disclosure should be presented to a prospective buyer, seller, tenant, or landlord at?
a. Upon making an offer
b. Within a maximum of 2 weeks after the initial contact
c. At the first personal contact, or prior to an offer to purchase, whichever is first to occur
d. When the Broker's office policy states that it must be presented.
c. At the first personal contact, or prior to an offer to purchase, whichever is first to occur
122
A Real Estate license can be revoked for all of the following, EXCEPT?
a. Advising against the use of an Attorney
b. Putting a "for sale" sign in the yard of your listing with the Seller's permission
c. Receiving a commission from someone other than your Broker
d. Substantial misrepresentation
b. Putting a "for sale" sign in the yard of your listing with the Seller's permission
123
The term "Blockbusting" refers to?
a. Selling all homes on a particular block
b. Removing load-bearing walls
c. Urging Sellers to "sell now" on the grounds of loss of value due to a prospective entry into the neighborhood of another race, religion, or ethnic origin
d. Creating urgency in different neighborhoods because their home values are diminishing.
c. Urging Sellers to "sell now" on the grounds of loss of value due to a prospective entry into the neighborhood of another race, religion, or ethnic origin
124
In the case of a buyer and seller dispute regarding monies held in escrow, the Broker must deposit the monies with the General Treasurer after how many days from the date of the original deposit?
a. 180
b. 30
c. 90
d. 360
a. 180
125
In addition to the completion of a minimum of 45 hours of classroom instruction in a Real Estate course, an applicant for a Real Estate Salesperson's license, must complete 3 hours of?
a. Home Staging
b. Rhode Island Rules and Regulations
c. Multiple Listing Education
d. Lead Hazard Awareness
d. Lead Hazard Awareness
126
You meet a potential buyer at an open house that you are conducting for another Agent in your office. You are not a Designated Client Representative for the Seller. The Buyer wishes to "hire you" as their Designated Client Representative, to make an offer on this home. You may?
a. Help the buyer fill out the offer by filling in the blanks only
b. Provide advice and counseling, and conduct a competitive market analysis to prove value
c. Not disclose confidential information that you know about the Seller's motivation to sell.
d. Acts as a transactional coordinator for the purchase of the property.
b. Provide advice and counseling, and conduct a competitive market analysis to prove value
127
Acting as a broker or salesperson without first obtaining a license is guilty of a misdemeanor, upon conviction they may:
a. Face a fine between $100 - $500
b. Imprisonment for up to a year
c. Be liable to a penalty equal or 3 times the sum of monies received
d. All of the above
d. All of the above
128
An application for a Broker's license, must be accompanied by all of the following, EXCEPT?
a. Proof of completion of 90 hours of education unless exempt
b. A Brokers signature stating the applicant has been a salesperson for at least 2 years
c. Applicant must be at least 24 years of age
d. Provide names and email addresses of at least three (3) Rhode Island Residents who have known the applicant for a minimum of 3 years, who are not related to the applicant to attest to the applicant’s reputation of honesty and trustworthiness.
c. Applicant must be at least 24 years of age
129
The default Agent Relationship with a potential real estate buyer is:
a. Transaction Coordinator
b. Designated Client Representative
c. Transaction Facilitator
d. Neutral Dual Facilitator
c. Transaction Facilitator
130
Designated Client Representative owes the client:
a. Honesty
b. Good faith
c. Confidentiality
d. All of the above
d. All of the above
131
Which of the following statements is true, regarding Escrow Accounts:
a. A licensee shall turn over deposit monies promptly to the principal broker
b. A principal broker may add personal funds of the escrow account doesn’t balance
c. In the event of a dispute, the broker will turn over funds to the state within 18 days
d. A principal broker may decide whether or not to open an escrow account
a. A licensee shall turn over deposit monies promptly to the principal broker
132
Earnest deposits must be deposited in...
a. An interest bearing account
b. The broker's trust account
c. A FDIC insured savings and loan account
d. The closing attorney's trust account
b. The broker's trust account
133
Which of the following statements is true?
a. The seller must disclose the presence of convicted felons in the neighborhood
b. The listing broker must disclose the presence of convicted felons in the neighborhood
c. The buyer can contact the local police department to find out whether there are convicted felons in the neighborhood.
d. The cooperating broker has a duty to investigate whether there are convicted felons in the neighborhood.
c. The buyer can contact the local police department to find out whether there are convicted felons in the neighborhood.
134
Smoke detectors and carbon monoxide detectors are the responsibility of the _________ which is performed by the local fire marshal.
a. The listing broker
b. The seller
c. The selling broker
d. The state fire inspector
b. The seller
135
Offering a prize or gift to induce the purchase of a property
a. Can be done by the seller
b. Can be done by the listing agent
c. Is illegal in all cases
d. Can be done by the mortgage company
a. Can be done by the seller
136
A net listing...
a. Is a great way to make more money
b. Is illegal in Rhode Island
c. Is authorized with consent by all parties
d. Is another way of saying open listing
b. Is illegal in Rhode Island
137
A property listing in a window advertise a monthly mortgage payment. The advertisement must include:
a. The terms and conditions of the purchase
b. That the mortgage is available to qualified individuals only
c. Is a great way to advertise a property
d. Is prohibited
b. That the mortgage is available to qualified individuals only
138
In the case of revocation or suspension of a license by the Department of Business Regulations, an Licensee can seek a review of the decision by the:
a. Superior court
b. Rhode Island Association of REALTORS
c. National Association of REALTORS
d. Rhode Island Real Estate Commission
a. Superior court
139
In order to obtain a real estate license, an individual must
a. Complete 24 hours of classroom time
b. Be a citizen of the United States
c. Complete a criminal background check
d. Be recommended by three people who own their own homes and reside in the State of Rhode Island
c. Complete a criminal background check
140
The real estate recovery fund will pay out for damages no more than
a. $50,000 per transaction where damages were incurred
b. $50,000 per licensee involved in the transaction causing the damages
c. $100,000 per transaction
d. $25,000 per licensee involved in the transaction
b. $50,000 per licensee involved in the transaction causing the damages
