Orientation

Question 1

Land and anything attached to land by a foundation

Answer 1

Real Estate

Question 2

• multi-step process that results in a property being transferred from one party to another
• includes offers, counter-offers, inspections, etc

Answer 2

Real Estate Transaction

Question 3

Final step of real estate transaction

Answer 3

Real Estate Closing

Question 4

the process of bringing parties together

Answer 4

Brokerage

Question 5

a real estate company or “real estate agency”

Answer 5

Real Estate Brokerage

Question 6

oversees the entire operation at the main office and compensates everyone

Answer 6

Supervising Broker

Question 7

• similar role to supervising broker

- responsible for operations at the branch office and the activities of licensees at that office

Answer 7

Branch Broker

Question 8

• has broker’s license but is associated with/supervised by a supervising broker
• often acts as a salesperson

Answer 8

Associate Broker

Question 9

generates business and provides services on behalf of the broker

Answer 9

Salesperson

Question 10

perform administrative duties at the office

Answer 10

Staff

Question 11

2 or more licensees in the same company that form a team with a team leader and team members

Answer 11

Team

Question 12

computer-based system that allows brokers to share info about their listings and efficiently find properties for their buyers

Answer 12

Multiple Listing Service (MLS)

Question 13

Commission rate is established by…

Answer 13

the listing broker

Question 14

clarifies compensation available and promotes cooperation between real estate companies

Answer 14

MLS

Question 15

Compensation must originate from…

Answer 15

the Broker

Question 16

2 ways Licensee A can hire Licensee B and compensate them…

Answer 16

a) Broker pays A & B according to their agreement

b) Broker pays A and gives A written permission to pay B

Question 17

Team forms LLC… how does the team get paid?

Answer 17

Broker pays LLC directly & gives team leader written permission to pay team members

Question 18

Rebate

Answer 18

• an unlicensed person receiving money in some form for real estate activity
• ILLEGAL in KS

Question 19

Referral Fee

Answer 19

• licensee recommends another licensee

- must pass between broker first

Question 20

BRRETA

Answer 20

Brokerage Relationships in Real Estate Transactions Act of 1997

Question 21

2 Objectives of BRRETA

Answer 21

1) Define roles of licensees

2) Ensure that consumers understand types of services available to them

Question 22

2 types of services licensees can offer

Answer 22

1) Transaction Broker

2) Agent or Designated Agent

Question 23

The BRRETA brochure must be given to a potential client at…

Answer 23

1st practical opportunity

Question 24

Facilitation, information only, neutral

Answer 24

Transaction Broker

Question 25

Coaching, representation, info and advice, acts on client's behalf

Answer 25

Agent

Question 26

Licensee represents both the buyer and the seller

Answer 26

Dual Agency

Question 27

Licensee acts as transaction broker for both buyer and seller

Answer 27

Middleman

Question 28

Principal

Answer 28

Client who signs a written agreement with a licensee

Question 29

Customer

Answer 29

Buyer or seller who has not signed a written agreement

Question 30

Creates a one-to-one relationship between a licensee and a client

Answer 30

Designated Agency

Question 31

All licensees in a real estate company are tied to all clients

Answer 31

Agency

Question 32

Agency agreements... (3 things)

Answer 32

1) copy must be given to a client in a reasonable amount of time 2) cannot authorize the agent to act as the legal rep of the client 3) cannot be changed without written consent of both parties

Question 33

Document needed to change role from agent to transaction broker

Answer 33

Transaction Broker Addendum

Question 34

A bank account in which the supervising broker or branch broker holds other people's money

Answer 34

Trust Account

Question 35

Violation in which more than $100 of the broker's money is being kept in a trust account

Answer 35

Commingling

Question 36

After contract is signed, deposit must be made into trust account or escrow account within ____ days

Answer 36

5 business days

Question 37

3rd party option instead of trust account

Answer 37

Escrow agent

Question 38

Services that are informative in nature, such as answering phone questions, giving information on a property during an open house, or setting an appt to show a property

Answer 38

Ministerial acts

Question 39

A licensee being compensated by taking the difference between the sale price and the listing price

Answer 39

Net listings- ILLEGAL

Question 40

Government agency that governs real estate licensees

Answer 40

Kansas Real Estate Commission (KREC)

Question 41

KREC- # of members

Answer 41

5

Question 42

KREC- # that must have been licensed brokers for at least 5 years

Answer 42

3 or more

Question 43

KREC- keeps records but doesn't vote

Answer 43

Director

Question 44

Published names of licensees who have acted improperly

Answer 44

Censure

Question 45

Licensee prevented from doing business; usually 30-90 days

Answer 45

Suspension

Question 46

Possible consequence of serious infractions

Answer 46

Revocation

Question 47

Restricted licensee activity

Answer 47

Restriction

Question 48

Possible civil fine per violation

Answer 48

up to $1000

Question 49

Possible civil fine per "aggravated" violation (extreme or intentional)

Answer 49

up to $5000

Question 50

If enough facts are known, the KREC can take this step (eg. applicant didn't meet the education requirements)

Answer 50

Summary Adjudicative Hearing

Question 51

Willful violation of license law or BRRETA

Answer 51

misdemeanor