State Law Flashcards
(297 cards)
1
Q
who are rules and policies written by?
A
written by commissioners
2
Q
who are laws written by?
A
written by legislation
3
Q
To apply for a real estate license
A
- at least 18 years old
- for an affiliate broker license you must complete 60 hours of prelicensing courses
- Proof of prelicensing education
- certificate of course completion
- 30-hour course for new affiliates with certificate of completion
- Affiliate brokers must pass exam with a minimum of 70% for each part; brokers need 75% for each part
4
Q
Documents required for an affiliate broker’s license
A
- application with picture
- proof of high school graduation
- proof of completion of pre-license education
- proof of errors and omissions insurance policy
- payment of all fees due ($91)
- Eligibility Verification
- electronic fingerprinting
5
Q
Acquisition Agent
A
requires a special license which allows the agent to solicit and encourage people to attend special presentations for timeshare program. This solicitation must be done off-site from the timeshare location
6
Q
Adverse Fact
A
condition recognized by licensees that have a negative impact on a property that must be disclosed
7
Q
Affiliate broker
A
a licensee that is engaged under a licensed broker to provide real estate services
8
Q
Broker
A
a licensee who may be paid directly by the consumer for negotiating a listing, sale, purchase, lease or options. One who acts as an intermediary on behalf for others for a fee or commission
9
Q
Client
A
a party to a transaction with whom the broker has entered into a specific written agency agreement to provide services
10
Q
What is another word for agreement?
A
contract
11
Q
customer
A
any party to a transaction that is not a client from whom the real estate agent provides services; assisting, not representing
12
Q
Designated Agent
A
a licensee who has been chosen by the managing broker to serve as the agent to a party of a transaction; only appointed by broker
13
Q
Dual agent
A
a licensee that has an agreement to provide service as an agent to more than one party in a specific transaction
14
Q
Facilitator
A
any licensee who assists but does not represent one or more party in a transaction.
15
Q
What is a facilitator called in TN?
A
transaction broker
16
Q
Timeshare Salesperson
A
a licensee who only sells timeshares
17
Q
Material
A
any statement, representation or fact relative to a transaction that would affect a reasonable person’s decision to enter into an agreement and that has been identified by the person as being of significance to a particular party
18
Q
What are the pre-licensing fees?
A
- PSI Exam
- Fingerprinting
- E&O Insurnace
19
Q
What does the PSI Exam cost?
A
$39
20
Q
What does fingerprinting cost?
A
$45
21
Q
What does E&O insurance cost?
A
$220-250 with the 2 year renewal fee is pro-rated based on licensure date
22
Q
What are the application fees?
A
- License application
2. Education & Recovery
23
Q
What does the license application cost?
A
$90
24
Q
What does Education & Recovery cost?
A
$1
25
What are the renewal fees?
two year renewal fee
26
What does the 2 year renewal fee cost?
$75
27
What are other fees you might pay?
1. change of principal broker
2. Transfer of affiliation or transfer in or out of retirement status
3. Certification of licensure
28
What does the change of principal broker cost?
$25
29
What does the transfer of affiliation or transfer in and out of retirement status cost?
$25
30
What does the certification of licensure cost?
$25
31
Any person who acts as a licensee for another party with the intention or promise of receiving any valuable consideration must have what kind of license
broker, affiliate broker or timeshare license
32
Who may engage in real estate transactions without a required license?
1. an owner of real estate (FSBO)
2. An attorney-in-fact acting under a duly executed and recorded power of attorney from the owner
3. An attorney at law performing duties as an attorney at law
4. A receiver, trustee in bankrupcy, administrator, executor or guardian or trustee acting under a trust agreement, deed of trust or will or acting under a court order
5. A resident manager whose duties are limited to supervision, showing the units, collecting security deposits and rents from the property.
6. A corporation who has a duly authorized salaried offier to handle leases or sale of property owned by the corporation provided the officer or can be paid on a per transaction basis
33
what does FSBO mean?
For Sale By Owner
34
The commission of a single act by a person that is required to be license and is not licensed is considered what?
constitutes a violation of this chapter
35
May a reisdnet manager negotiate finances?
no
36
Is an LLC considered a corporation under TN state law?
no, so not considered part of the exemptions
37
Action by broker to collect compensation
there shall be no action or suit nor recovery by any court in the state for services rendered if the person was not duly licensed
38
Can you sue for commission if you don't have a real estate license?
no
39
What is the penalty for someone acting as a licensed real estate agent with out first obtaining a license?
Guilty of a Class B misdemeanor; must give back money received in commission no more than 3x the amount received
40
Treble damanges
have to give back 3x the amount of damages
41
What is the amount of civil penalties
$50-1000 per violation per day
42
What is the Tennessee Real Estate Commission under?
Department of Commerce and Insurance
43
Tennessee Real Estate Broker License Act of 1973
designed to protect the public from irresponsible or unscrupulous persons dealing in real estate
44
Where can the Tennessee Real Estate Broker License Act of 1973 be found?
title 62 chapter 13
45
How many members are in the TREC
9 members
46
Who appoints the commissioners of TREC?
Governor
47
How long is a term for a commissioner?
5 years
48
Can commissioners be reappointed?
for 1 more 5 year term but no longer
49
Who makes up the 9 TREC commissioners?
7 real estate agents, 2 non-real estate related industry
50
Where must TREC commissioners be from?
3 from each grand division: east, middle and west tennessee
51
Who can the 2 non-real estate commissioners not be?
real estate development of finance
52
Are TREC commissioners paid?
no
53
What are the 3 grand divisions of the state?
East, Middle, West
54
How old must at least 1 commissioner of TREC be?
60 years or older
55
What is the diversity makeup of TREC commissioners
at least 1 racial minority
56
When does the commission meet?
once a month for no more than 3 days with at least 1 meeting a year in each grand division
57
What does a majority of the commission constitute?
a quorum
58
How often does the commission have a meeting in each grand division
once a year
59
Quorum
the number needed to vote on a matter
60
What are the powers of the commission
1. power to do all things necessary and proper for carrying out the laws and rules and regulations
2. promote adn adopt bylaws, rules and regulations that are reasonably necessary for such purpose
61
Who chooses the Director of Education?
the commission votes on it
62
Who chooses the executive director
the commission votes on it
63
What are the requirements to be the Executive Director
passed the Broker's exam
64
What are the requirements for the Director of Education
a college degree from an accredited university
65
How long is the Exeutive Director's term?
4 years, renewable indefinitely
66
What are the Executive Director's and Director of Education's employement status?
full-time employees of the commission, paid positions
67
Who is the general counsel of the commission?
licensed attorney licensed to practice law in Tennessee who grated from an accredited law school
68
What can the commission not do by law?
to set fees or commissions for real estate contracts or transactions
69
What happens if the commission tries to set fees or commissions?
forfeit their licenses
70
Injunction
a notice from a court to stop doing something wrong
71
Injunctions authorized for enforcement
the commission is empower to petition any circuit or chancery court having jurisdiction of any person in this state who is violating laws, rules and regulations of the commission
72
where do injunctions come from (what court)?
1. Circuit Court
| 2. Chancery Court
73
Reasons for Notice-Hearing?
commission receives a complain against an applicant or licensee, the commission will notify in writing the accused applicant or licensee of a complaint, closing a copy
74
How long does an accused applicant or licensee to respond to the commission?
10 days
75
Where are hearings held?
in any of grand divisions
76
Who must go with an affiliate broker to a hearing?
their broker
77
How are complaints filed with the commission
1. 2 years from the date of committing the alleged violation or the date that the complaintant actually became aware of the violation
2. The applicable statue of liminations set out also constitutes a criminal offense
3. 10 days after a successful criminal prosecution becomes final
78
how are written notices delivered?
personally or by registered mail
79
How many votes does the commission need to reinstate someone's license revoked by the court?
6 or more
80
How long do you have to wait to apply for your license after a complaint was filed from you?
2 years
81
How long do you have to wait if you went to prison to reapply for your license?
2 years
82
Reasons why the commission would refuse, suspend or revoke a license
1. substantial and willful misrepresentation
2. making a real estate promise that you cannot or do not intend to keep
3. Continued and flagrant misrepresentation
4. misleading and untruthful advertising
5. failing within a reasonable time to account for money we get that belongs to someone else
6. for brokers, if you don't keep records that go through the company for a minimum of 3 years and electronic records must be given within 24 hours
6a. records of listings, offers, contracts, closing statements, agency agreements, agency disclosure documents, property disclosure forms, correspondence, notes nad other relevant information
7. dual agency without consent
8. failing to give someone a copy of what they signed when they sign it
9. having someone sign a contract wihtout a definite termination date
10. encouraging someone to break one contract in favor of a different contract so we can make more money
11. accepting a commission or any kind of valuable consideration from anyone other than your own broker
12. being convicted in court of a serious crime
13. violating any discrimination law, federal state or local
14. violating any provision of this chapter
15. for broker, failing to adequately supervise their affiliates
16. for a broker, failing to complete administrative vendors in a timely manor
17. paying and accepting, giving or charging an undisclosed commission, rebate or compensation or profit or expenditures
18. fail to disclose to an owner of a property of our true intent to purchase our own listing
19. engaging in unauthorized practice of law
20. any conduct that is impropert, fraudulent, or dishonest in dealings
21. violating any provisions of the TN Time-Share Act
83
How long does a broker need to keep records
3 years
84
How long does a broker have to give over electronic records
24 hours
85
When can the commission withhold their decision in a hearing?
If there is a court case invovling the same matter as the complain, the commission may withhold the decision until the court case has concluded
86
Examples of things you can lose your license for
theft, forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud or any crime or similar offenses, or pleading guilty or pleading no contest to any such offense
87
How do hearings with the commission pass?
The affirmative vote of majority of the commission to revoke or suspend a license or to establish a quorum
88
If a licensee pleads guilty to or is convicted in court of an offense that would make them lose their license, they must...?
1. notify the commission and provide within 60 days certified copies of the conviction
2. the licensee's license will automatically be revoked unless licensee makes a request for a hearing within 60 days
3. following the hearing, the commission may impose any sanction permitted by this chapter
89
How quickly must the licensee notify the commission of a conviction?
60 days
90
When must you sign up for your exam?
must sign up in advance
91
What happens if a person fails their exam?
1. the unsuccessful applicant will be given a written analysis of his or her test results
2. the unsuccessful applicant must follow reexamination procedures published by the testing service
92
When would you be excused from the "uniform principles of real estate" portion of the exam
1. holds a license in another state and has successfully completed an examination approved by TREC
2. has attained on the uniform principles portion of such examination at least the minimum passing score requirement
93
What happens if you're caught cheating?
forfeit their right to grading of the examination and could be subject to further disciplinary action by the commission
94
What are the prerequisites for licensing?
1. good reputation for honesty, trustworthiness, integrity, and competence
2. to get a broker's license, you must have had an affiliate broker's license for at least 36 months (nonconsecutive)
95
What are requirements for a broker's license?
1. 90 horus of the affiliate broker license requirements
2. 30 hours covering office brokerage management
3. minimum of 120 hours
(4. 3 years as an affiliate broker)
96
How long do you have to submit your application for your license?
6 months from the date of the exam or retake and pass the exam
97
What are the continuing education requirements for an affiliate broker?
2 year renewal period:
1. 16 hours TREC approved education
2. 10 hours elective and 6 hours TREC core course
98
What is the continuing education license renewal period?
2 years
99
What are the continuing education requirements for a broker's license?
within 3 years of license issuance:
1. 120 horus TREC approved continuing education
at fourth year and every 2 years after:
1. 16 hours TREC approved education
2. 10 hours elective and 6 hours TREC core course
100
Can you repeat continuing education course content?
not within the same renewal period; not with a repeat for duplicate hours
101
Fingerprinting
if you are applying for your first real estate license, before you can apply you must get fingerprinted; if you already have your license in another state, you still have to get fingerprinted for TN
102
When you get your broker's license, do you need to get fingerprinted?
no
103
Who does not need to submit fingerprints?
1. renewals
| 2. a TN affiliate broker applying for a TN broker's license
104
If you have already been fingerprinted in TN for another reason, do you need to get re-fingerprinted for your real estate license?
yes
105
What can't an unlicensed real estate employee, assistant or secretary do?
1. Make cold calls by telephone or in person to potential clients
2. show properties for sale and/or lease to prospective purchasers
3. host open houses, home show booths or fairs
4. discuss or explain listings, offers, contracts, or other similar matters with persons outside the firm
5. negotiate any temrs of real estate transaction
6. negotiate or agree to any commission split or referral fee on behalf of a licensee
7. be paid any compensation which is dependent upon, or directly related to, a real estate transaction
106
What can an unlicensed employee, assistant or secretary do?
1. answer the phone, forward calls and give information contained only on the listing agreements limited by the broker
2. fill out and submit listings and change to any MLS
3. Follow up on loan commitments after a contract has been negotiated and generally secure status reports on the loan progress
4. assemble documents for closing
5. secure public information from courthouse records, utilities districts, etc.
6. have keys made for listings
7. place ads which have been approved by the principal broker
8. receive, record and deposit earnest money, security deposits and advance rents under the direct supervision of the principal broker
9. Type contract forms for approval by the licensee and principal broker
10. monitor licenses and personal files
11. calculate, print or distribute commission checks
12. place signs on property
13. order repairs as directed by the licensee
14. prepare for distribution fliers and promotional information which have been approved by the principal broker
15. deliver documents
16. place routine telephone calls on late rent payments
17. gather information for a CMA
18. unlock property under the direction of the licensee
19. Disclose the current sales status of a listed property
107
What can an unlicensed employee, assistant or secretary generally do?
follow up on preexisting business
108
What can an unlicensed employee, assistant or secretary generally not do?
generate new business
109
Military applicants
if what it took for them to get a license in another state is equivalent to what it takes to get a license in TN, they will issue the military applicant a license without testing; if cannot prove same requirements they will submit a temporary license
110
What is the application process for a military spouse?
same as military member
111
What happens when the affiliate broker wants to terminate their contract with their broker
broker immediate signs and dates the change of affiliation form
112
What is the change of affiliation form called by TREC
TREC 1 form
113
What does the affiliate broker have 10 days to do when they want to change affiliations?
1. change firms or
| 2. retire the license
114
Where is the change of affiliate broker's name submitted?
TREC 1 Form
115
What must the affiliate broker promptly assure is completed when changing affiliation?
the form is completed and payment of $25 are both promptly submitted to TREC
116
When can the affiliate broker begin to work under a new broker?
when the transfer is complete and the affiliate broker's license is prominently displayed in the new broker's office
117
Must every real estate office have a full time principal broker in charge of that office?
no
118
Must every office have a principal broker?
yes
119
When must the principal broker be full time?
if they have other licensees to supervise
120
What does full-time principal broker mean?
real estate is their primary occupation and they are accessible to their affiliates during normal day time business hours
121
Broker Release status
if signed TREC form is not received within 5 days
122
What happens if the broker is decreased and the affiliate wants to go to another brokerage?
Have to go to commission and get a notorized Affidavit for Release
123
If a licenseee requests a release from a firm, when does the broker have to grant it?
promptly with return of license
124
Can a licensee take or use any listings or buyer's representations agreement from their previous firm?
not unless authorized by the broker in writing
125
what will the commission not intervene with when a licnesee is leaving their brokerage?
settlement of debts, loans, draws, or commission disputes between firms, brokers and/or affiliates
126
How does a licensee get their license back from the broker if it cannot be located?
broker can return license to commission
127
When does the broker have to return the affiliate's license when they leave the brokerage?
promptly upon demand
128
How long does the licensee have to change affiliation or retire license?
10 days after release date
129
When can the licensee engage in business again after disaffiliating?
once change of affiliation is received and processed
130
When are the principal broker's responsibilities and supervision of a former affiliate terminated?
upon receipt by the commission
131
Should a broker retain a copy of the TREC 1 form?
yes
132
Can a licensee take or use property listings or buyer represntation agreements secured through their previous firm?
not unless specifically authorized by their previous broker in writing
133
When must a completed TREC Form 1 be received by TREC
within 5 days of the date of the online transfer request
134
What must the principal broker verify before submission of a termination request
verfiy that the affiliate licensee has an active license and current E&O insurance
135
Where can a termination transfer be completed?
online
136
When is a termination transfer considered completed?
when the transfer confirmation is printed
137
What form do you need to fill out if you want to terminate your contractual agreement with your firm?
TREC 1 Form
138
How must the TREC 1 form be sent to be considered effective?
faxed, mailed, e-mailed, delivered personally to the Commission
139
When is the time and place for a hearing set?
after the commission determines that the matter should have a hearing
140
What happens in a hearing if the commission decides that the complain was not filed in a timely manner or there was no cause to believe the licensee has engaged in allged violation?
the commission shall issue an order and furnish a copy to the complainant, applicant, licensee and person that the commission deems proper
141
What must every office have?
1. firm license
2. principal broker
3. fixed location with adequate facilities
5. location conforming with zoning laws
142
Where must licenses be displayed at a brokerage?
prominently displayed at broker's principal place of business
143
What shall each office branch comply with?
the requirements of the main office
144
When does TREC need to be notifed by of a change of any ofice location
within 10 days by the principal broker with fee
145
What form do you use to change the office location?
TREC Form 1
146
What must each real estate office have?
a sign outside the office according to zoning ordinances and TREC that clearly indicates the broker is engaged in the real estate business
147
Can a broker have a real estate in their residence?
yes, if zoning allows a sign outside
148
What must every branch office have
1. firm license
2. principal broker
3. under direction adn supervision of the principal broker
149
How many TN license can be issued to any broker or affiliate broker?
no more than 1 at one time
150
When a broker starts a new brokerage, what must the provide proof of?
Escrow account
151
When can a broker act as broker for two firms?
are both in the same location and use the same physical address
152
What must a firm provide proof of upon license renewal?
escrow account
153
What must each office have if the broker has more than one place of business within the state
must be a firm license for each location
154
retirement
have real estate license but don't want to practice real estate for a while, but may want to come back into it
155
How to put license in retirement
1. complete TREC 1 form with broker, pay $25
2. pay license renewal fee prior to license expiration date
3. cannot engage in an act in the definitions
4. let the commission know your current mailing address
156
What happens if you retire your license but didn't complete all 16 hours of continuing education?
cannot pull out of retirement until finish continuing education
157
How can you reactivate your license from retirement?
submit the TREC 1 form and pay change of status fee
158
When is the reactivation of a temporarily retired license permitted?
until the licensee provides proof of completion of 16 classroom hours in real esate course durin gthe curren tlicense renewal period
159
When do you need to notify the commission of a change of new business address?
within 10 days
160
What do you need to submit when you change your business address?
pay required fee and notify in writing
161
When do licenses expire?
2 years from the date issued or renewed
162
What are the penalties for letting your license expire?
1. $50/month penalty months 1-4
2. $100/month penalty for months 5-12
3. If no fees paid for a year, license is revoked
4. all fees
163
What happens if the renewal fee is not paid within the first 60 days
1. pay a civil penalty of $750
2. sign reinstatement order
3. provide proof of compliance and pay all fees and penalties
164
Reinstatement order
affiliate signs a document saying that whatever it takes to reinstate a license will be done including all late fees and civil penalty
165
What must you do if you license is expired for more than 1 year?
1. reapply licensure
2. meet current education requirements
3. pass all required exams
166
How long do you have to reinstate your license without examination
within 60 days after the expiration date of the license
167
What do you need to provide to reinstate your license after failture to pay renewal or retirement fee?
1. provide proof of compliance with the prerequisites or conditions
2. payment of any penalty fee of $50/month or portion for first four months
3. pay $100/month, month 5-12
168
What might the commission require of a person desiring to reinstate their license
1. waive reexaminatino or additional education requirements for such an application
2. reinstate a license subject to payment of a penalty fee, in addition to other penalty fees, of not more than $100/month from the time the license expired
169
Do licensees need E&O insurance?
yes
170
Do you need E&O insurance if you're in retirement?
no
171
Do firms need E&O insurance
no
172
How can you get E&O insurance?
1. from commission company
| 2. comparable insurance independently
173
Who sets the terms and conditions of E&O coverage?
the commission
174
What happens if you don't maintain your E&O coverage?
license is suspended and broker notified
175
If you are suspended for not having E&O coverage, what are you limited to do?
cannot engage in real estate activites with require a license
176
What is the penalty for renewing your E&O insurance within 30 days?
no penalty with proof compliant insurance
177
What is the penalty for renewing your E&O insurance 31-120 days
penalty $200 is coverage backdated or $400 if not backdated
178
What is the penalty for renewing your E&O insurance6 months - 1 year?
$500 + $100 per month 6-12 months
179
What is the penalty for renewing your E&O insurance after 12 months?
license revoked and must retest and reapply. Must pay all fees and penalties, pass exams and meet education requirements
180
Who is responsible for making sure you have E&O insurance?
broker
181
What happens if your broker does not keep track of E&O insurance?
constitutes failture ot exercsie adequate supervision
182
education and recovery account
like a slush fund for when licensees had E&O problems; pays for agent errors
183
How much money must the Education and Recovery account?
$500,000
184
What is the fee wiht the license application?
$1
185
How much can a licensee be assessed to maintain the Education and Recovery account?
$30
186
What is the liability for the Education and Recovery account?
$15,000 per transaction and an aggregate of $30,000
187
How do you recover money from teh Education and Recovery account?
1. notify the commission
2. obtain a valid judgement from the court
3. exhaused all remedies to get judgement paid
4. TREC holds onto judgement for 60 days
5. If not paid within 60 days from other methods, TREC would pay
188
How long does TREC have before having to pay from Education and REcovery account?
60 days
189
If you have a client or customer from Education and Recovery account, what can happen to your license?
suspended or revoked
190
If your license is suspended or revoked because of Education and Recovery account, how can you get your license back?
can't apply for new license until the account is repaid in full
191
What are the two types of advertising?
1. true advertising
| 2. promotional material
192
What mus tbe on all advertising?
company name and phone #
193
What does true advertising include
Print, signs, e-mail signatures, video or audio recordings, radio, flyers, websites, television, letterheads, social media
194
What are some promotional materials?
hats, name tags, pens, t-shirts, notepads, sponsorship of charitable and community events, business cards
195
What must be on business cards?
firm name and #
196
Who needs to supervise all advertising?
broker
197
How big does the firm name and licensee's name need to be on advertisements?
firm name needs to be same size or larger than name of licensee or team/group
198
How can a licensee advertise on a property listed by another licensee
with written permission from the owner
199
What do you have to do to post signs on a property advertising yourself as an agent?
firm's name appears on the sign in letters the same size or larger than those selling out the name of the licensee
200
What are examples of false, misleading or deveoptive advertisements?
1. only showing franchise name without firm name
2. advertising for franchise or cooperative advertising groups
3. using a franchise trade name or cooperative group without clearly showing licensee name, firm name and #, name of franchise, adjacent to any specific properties advertised for sale or lease in any media
201
What must licensees who are part of a team, group or similar entity do?
1. be licensed within the same firm
2. not be located in a separate office from the main office
3. not receive compensation from anyone other than the principal broker
4. not represent themselves as a separate entity
5. prinicipal broker cannot designate their supervisory duties
6. not determine designated agents within the team or group
202
What terms can teams not use to advertise themselves?
real estate brokerage, realty, company, LLC, Corp, Inc., Associates
203
"First Generatoin" advertising
your original input of a listing
204
Can a broker employ or compensate someone who is unlicensed?
no
205
Can a broker employ or compensate a licensed broker in another state?
yes
206
Can a broker be involved in negotiations with an out of state broker?
no
207
How does TREC define social media?
internet based applications or platforms that allow the public to create and share content and information
208
What is a FULL TIME broker?
1. primarily in real estate
| 2. accessible during normal business hours
209
can a licensee engage in real estate activity in any office if there is no principal broker?
no
210
How long do brokers need to keep docyments
3 years
211
What do records need to contain?
listing, offers (even those that do not become contracts), contracts, closing statemnets, agency agreements, agency disclosure document, property disclosure forms, correspondance, notes, any other relevant information (text and emails)
212
When do electronic records need to be available within?
24 hours
213
When can the commission examine electronic records?
at any time without advance notice
214
Commingling
the act of a licensee maintaining funds belonging to others in the same bank account that contains his or her personal business funds
215
Trust money
monly belonging to others received by a licensee who is acting as an agent or facilitator in a real estate transaction; any money held by a licensee who acts as the temporary custodian of funds belonging to others
216
If there are multiple offers, what order do they need to be presented in?
no particular order; doens't have to be in order received
217
When can the principal broker properly disburse trust money?
1. upon a reasonable interpretation of the contract with authorizes him to hold the trust money
2. getting a written agreement signed by all parties separate from authrotizing them to hold trust money
3. at closing
4. upon rejection of an offer
5. if an offer is withdrawn
6. filing an interpleader action in a court of competence jurisdiction
7. order of a court of competence jurisdiction
8. trust money is disbured without reasonable delay
9. needs to be turned over within 21 days
218
When is a property disclaimer state given
when the purchaser waives in writing their right to the Disclosure Statement
219
Can a licensee assist an owner in completing a Disclosure Statement?
no
220
Exempt property transfer (exempt from disclosure)
1. transfers - court order, tax sale, bankruptcy, foreclosure, eminent domain, public auction
2. transfers - estate beneficiary, legal heirs, trustee, one owner to co-owner, spouse in divorce
3. owners has not occupied the property within 3 years
221
Sinkhole
a subterranean void created by the dissolution of limestone resulting from groundwater erosion, causing a surface subsidence of soil, sediment or rock. It is indicated through the contour lines on the property's recorded plot mat
222
Septic System Inspection Letter
must tell the buyer that for a fee a septic system inspection letter is available
223
How close do you have to live to your main office?
no milage requirements
224
How much money can a broker keep in an escrow account?
as much needed to keep the account open
225
What form does a client sign with all the information they need to legally disclose?
Tennessee Residential Property Condition Disclosure From
226
What must licensees do within 10 days of any change of location of the office?
notify the commission in writing of their new business address and shall pay the required fee
227
What can the commission do if a person wants to reinstate their license after failing to pay the renewal or retirement fee within 1 year?
1. waive reexamination or additional education requirements for such an applicant
2. reinstate a license subject to payment of a penalty fee, in addition to the penalty fee provided in subsection (1), of not more than $100/month or portion of a month from the time the license expired
228
When is a reinstated license issued back?
to the original expiry date upon satisfaction of all requirements
229
What must a licensee do if they fail to renew their license within 60 days after expiration becasue of a personal or family health issue and wishes to request a medical waiver from the Commission?
1. proide a signed doctor's statement attesting to teh nature and length of the illness
2. submit a statement explaining the lapse, which must be signed by the person seeking reinstatement
230
What are the requirement payments if the commission grants a medical waiver request?
renewal fees must be paid and all other conditions for licensure must be met, but late penalty fees will not be assessed
231
Is reinstatement for expired licenses dur to health issues or medical problems public or private information?
information submitted will be public record unless otherwise prohibited by law
232
A principal broker whose licensee failed to hold E&O insurance and has the license suspended, there will be not penalty for the broker if:
1. the licnesee provides proof of insurance
2. the principal broker releases the affiliate
3. after 30 days, if the affiliate has neither provided proof of insurance nor been released by the broker, the Commission shall hold a formal hearing for the principal broker's failure to provide adequare supervision and determinatino of penalties
233
What are fines for the broker if a licensee fails to have E&O Insurance?
1. 30-120 days $200 if insurance carrier back-dates the licensee's E&O insurance
2. $400 if the insurance carrier did not back-date licensee's E&O insurance
3. $1000 for more than 120 days
234
Can a licensee advertise to sell, purchase, exchange, rent or lease property in a manner indicating that the licensee is not engaged in the real estate business?
no
235
Can a team use similar terms that lead the public to believe that those licensees are offering real estate brokerage services independent of the firm or principal broker?
no
236
What are team rules around webpages?
any webpage that contains a link to an unlicensed entity's website where said entity is enaged or appears to be engaged in activities which require licensure by the Commission
237
Internet Advertising rules for licensees including, but not limited to, social media
1. the firm name and firm phone number as listed with the Commission must conspicuously appear on each page of the website
2. Each page displaying listings from an outside database of available properties must include a statement that some or all listings may not belong to the firm whose website is being visited
3. Listing information must be kept current and accurate on "first generation" advertising meaning placed by the licensee
238
Rules for licensees for cash rebates, cash gifts, or cash prizes
a real estate licensee shall not give or pay cash rebates, cash gifts, or cash prizes in conjunction with any real estate transaction
239
Who regulates the practices of real estate licensees regarding gifts, prizes, or rebates that are not otherwise prohibited by law
The Commission
240
When can a licensee offer a gift, prize, or other valuable consideration as a inducement to the purchase, listing, or lease of real estate
Only if the offer is made
1. under the sponsorship and approval of the firm
2. In writing, signed by the licensee with disclosure of all perminent details
241
What must be included in a gifts and prizes disclosure
1. accurate specifications of the gift, prize or other valuable consideration offered
2. fair market value
3. the time and place of delivery
4. any requirements which must be satisfied by the prospective purcahser or lessor
242
How accessible must the firm name and phone number be in social media adversiting by the licensees?
no more than 1 click away from the viewable page
243
For social media advertising, listing information must be kept current and accurate for whom?
"First Generation" advertising as it is placed by the licensee and does not refer to such advertising by third parties outside of the licensee's control and ability to monitor
244
What types of claims and statements are prohibited in advertising on social media?
unsubstantiated selling claims and misleading statements or inferences
245
For social media advertising, Any offer, guarantee warranty or the like, made to induce an individual to enter into an agency relatinoship or contract, must be
1. made in writing
2. disclose pertinent details (accurate specifications of the gift for prize, fair market value, time and place of delivery, requirements to qualify for the gift or prize)
246
In broker/affiliate relationships, what would the commission hold a hearing for reprimand, suspension or revocation for?
accepting a commission or any valuable consideration by an affiliate broker for acts specified in this chapter from any person, except teh licensed real estate broker with whom the licensee is affiliated
247
When can teh commission examine and copy books, accounts, documents or records
at any time when they are relevant to determine if a licensee has promptly deposited and disbured funds from escrow to trustee accounts
248
What should the licensee do if an offer is rejected?
request the seller note the rejection on the offer adn return to the offeror's agent
249
What should licensees make certain of in all offers to purchase?
that all terms and conditions of the transaction are included in the transaction
250
What should a licensee do upon acceptance of an offer or counteroffer?
promptly deliver executed copies, signed by all parties
251
A licensee shall promptly present every written offer to purchase or sell obtained on a property until when?
a contract is signed by all parties
252
Does every broker need to keep an escrow or trustee account of funds deposited with the firm?
yes
253
How long must the broker retain accurate records for escrow/trustee accounts?
3 years
254
What must esrow/trustee account records show?
1. depositor of the funds
2. date of deposit
3. date of withdrawl
4. payee of the funds
5. other pertinent information that the commission may require
255
How much money must be kept in a copmany's escrow account?
as much to keep the account "open"
256
What is comingling?
improper use of trust/escrow funds
257
Is comingling allowed?
it is expressly prohibited
258
Where must all trust money received that relates to the lease of a property be held
in a separate escrow or trustee account
259
Depository and Account Requirement
the earnest money account should clearly state that it is an earnest money or trust account adn those words should appear on all deposit slips and checks; affiliate brokers shall pay to their prinicpal broker all trust money immediately upon receipt
260
Time requirement for deposit of escrow funds
trust money shall be deposited into the escrow or trust account promptly upon acceptance of the offer unless the offer contains the statement "trust money to be deposited by"
261
Escrow account waiver
the principal broker of a real estate firm that does not egage in activities that require the acceptance of any funds belonging to others may receive from TREC a waiver from the provisions
262
Provisions on interest bearing escrow or trust accounts
1. the licenseeshall disclose to the buyer that his or her deposit will be placed in an interest-bearing account and the licensee and buyer shall execute a signed agreement stating the manor of disposition of any interest earned
2. as depositor, the licensee does not own the trust money or interest earned until properly disbured to the licensee
3. the licensee shall keep a detailed and accurate account of the precise sum of interest earned for each separate account
4. non-liquid valuables such as a diamond ring can be used as earnest moneyif agreed upon by all parties
263
Commission stance on interest-bearing escrow or trust accounts
neither required nor prohibited
264
Creation of Agency Relationship
1. a licensee shall not be considered an agent for a buyer, seller or owner without a written adn a signed Agency agreement
2. Until an agreement is signed with one or more parties, the licensee shall be considered a facilitator, not agent
3. an agency relationship shall not be assumed, implied or created without bilateral written agreement
265
Duty owed to all parties
1. diligently exercise reasonable skill and care to all parties of the transaction
2. disclosure of any adverse facts the licensee has actual notice or knowledge to each party
3. maintain to each party the confidentiality of any information obtained by a licensee prior to disclosure to all parties of a written agency agreement to represent either or both of the parties
4. honesty and good faith
5. disclose to each party timely and accurate market information that could affect a transaction
6. timely account for trust fund/earnest money deposits
7. prior disclosure in writing of licensee or any licensee's immediate family or any organization or business entity in which the licensee has a personal interest and written consent by all parties to the transaction
8. prior disclosure if the licensee may receive a referral fee or other compensation, for the recommended action of the use of service other than referrals to other lecensees for real estate services
266
Duty owed to licensee's client
1. obey all lawful instructions of the client
2. be loyal to the interest of the client and place them above all others including self
3. Assist the client (unless duties are waived in writing by the client): scheduling all property showings, receiving all offers and counter offers and forwarding them promptly to the client, answering any questions that the client may have in negotiation of a successful purchase agreement, advising the client as to forms, procedures, and steps needed for a successful closing
267
What does a licensee need to verbally disclose to an unrepresented buyer or seller
the licensee's agecy status, facilitator, agent status prior to providing real estate services
268
What does a licensee have to disclose for adverse facts and latent defects?
licensee shall disclose known adverse facts but are not obligated to discover or disclose latent defects
269
How must disclosure of agency be confirmed?
in writing prior to the preparation of an offer to purchase
270
Is disclosure of agency a substitute for a written agency agreement?
no
271
When does a licensee need to disclose any change of agency status?
immediately
272
What does a licensee need to do upon initial contact with another licensee involved in the same transaction?
immediately disclose any agency relationship or other role in the transaction
273
Duties of real estate license
the listing broker is to inform the owner of his or her rights and obligations of disclosures. A licensee representing a purchaser or if the purchaser is not represented, the licensee representing the owner has a duty to inform the purchaser of the purchaser's rights. The real estate licensee must disclose any "adverse facts" of which the licensee has actual knowledge or notice.
274
Who does residential property disclosures apply to?
1-4 dwelling units whether or not a licensed real estate broker or salesperson is involved
275
Is a residential property disclosure a warranty of any kind by the seller?
no
276
Is a residential property disclosure a substitute for anything?
not a substitute for inspections either by the individual purchasers or by a professional home inspector
277
What are the required disclosures or disclaimers, delivery of disclosure or disclaimer statement for owners?
1. disclosure to buyer prior to acceptance of real estate purchase contract
2. at or before closing owner to disclose any change in condition
278
Delivery of disclosure or disclaimer
failures to provide the disclosure or disclaimer statement to a purchaser shall not permit termination of a real estate purchase contract; however, a purchaser may bring action permitted by law
279
Adequare factilities tax
any privilege tax that is a development tax imposed by a county or city
280
Development
the construction, building, reconstruction, erection, extension, betterment, or improvement of land providing a building or sturcture, or the addition to any building or structure or any part of any building or structure that provides, adds to, or increases the floor area of a residential or nonresidential use
281
Disclosures of adequate facilities, taxes, and impact fees
in transfers involving the first sale of a dwelling, the owner of residential property shall furnish to the purchaser a statement disclosing the amount of any impact fees or adequate facilities taxes paid to any city or county on any parcel of land subject to transfer by sale, exchange, installment land sales contract, or lease with an option to buy.
282
Impact fee
means a monetary charge imposed by a county or municipal goverment pursuant to any act of general or local application, to regulate new development on real property. The amount of impact fees are related to teh costs resulting from a new development and the revenues for this fee are earmarked for investment in the area of the new development
283
Bylaws
guidelines for the operation of a homeowner's association that define the duties of the various offices of the board of directors, the terms of the directors, the membership's voiting rights, required meetings and notices of meetings and the principal office of the association, as well as other specific items that are necessary to run the homeowner's association as a business
284
Planned Unit Developemnt (PUD)
an area of land that is
1. controlled by one or more landowners
2. to be developed under unified control or unified plan of development for a number of dwelling units, commercial, educational, recreational, or industrial uses
3. the plan for which does not correspond in lot size, bulk or type of use, density, lot coverage, open space or other restrictions to the existing land use regulations
285
Restrictive covenant
any written limitations or conditions on some aspect of use of the property, such as size, location, or height of structures, materials to be used in structure exterior, activities carried out on the property or restrictions on future subdivision or land development
286
What must the seller do prior to entering into a contract with a buyer regarding percolation tests or soil absorption test?
disclose the contract or the writing including acknowledgement of receipts the presence of any known exterior injection well and the results of any known percolation test or soil absorption rate performed on the property that is determined or accepted by the department of environment and conversation
287
What must the seller do prior to entering into a contract with a buyer regarding foundation move?
where such information is known to teh seller, whether any single-family residence located on the property has been moved from an existing foundation to another foundation
288
What must the seller do prior to entering into a contract with a buyer regarding the presence of sinkhole?
disclose in the contract or in writing, including the acknowledgement of receipt, the presence of a known sinkhole on the property
289
What must the seller disclose to the buyer regarding properties located in planned unit developments?
the owner of the residential property shall disclose if the property is located in a PUD, and make available to the buyer a copy of the development's restrictive covenants, homeowner bylaws and master deed upon request
290
Liability for nondisclosure of a stigmatized property
no cause of action shall arise against an owner or real estate licensee for failure to disclose that an occupant of the real property, whether or not such real property is subject to this part, was afflicted with HIV or other disease which has been determined by medical evidence to the highly unlikely to be transmitted thorugh the occupancy of a dwelling place or thta the real property was the sit of an act or occurance which had no effect on the physical structure of the real property, its physical environment or the improvements located thereon, or a homicide, felony or suicide.
291
Do licensees have to identify themselves as a licensee when buying or selling property for themselve?
yes
292
Rules for a licnesee trying to acquire interest or option to purchase property listed with their company
no licensee shall directly or indirectly through a third party, purchase, acuire any interest in, or option to purchase or attempt to purchase property listed with their company without full disclosure of their true position to the owner of the property or any prospective purchaser (client or customer)
293
Rule around managing broker appointing designated broker
the managing broker may appoint a licensee the represent any party in a real estate transaction to the exclusion of all other licensees employed by the managing broker.
294
When can a managing broker not be considered a dual agent?
if the designated agent does not represent interest of any other party in the same transaction
295
Designated agency and managing broker's contractual rights to listings
the use of designated agency does not abolish the managing broker's contractual right to any listing or advertising agreement between the firm and a property owner nor does it lessen the managing broker's responsibilities to supervise all licensees affiliated with the managing broker and their compliance with the law
296
What is a facilitator?
any licensee who assists one or more parties in a transaction who has not entered a specific written agreement representing one or more parties
297
A licensee is deemed a facilitatior and not a dual agent in a specific written agency agreement providing teh licensee or someone associated with teh licensee in teh same transaction provided that?
1. the notice of facilitator status changed is provided to teh buyer and seller immediately
2. to be confirmed in writing prior to execution of a contract
3. a facilitator may advise either or both parties but cannot be considered a representative or advocate of either party.
