Unit 26 Exam Flashcards
Determine whether each of the following is considered a violation of the license law that can result in disciplinary action.
A)
Making a willful and substantial misrepresentation
B)
Charging an undisclosed commission for a principal
C)
Engaging in the unauthorized practice of law
D)
Failing to preserve records for ten years
E)
Having a high price for a property
Violation = A,B,C
No Violation = E,F
The purpose and mission of the Commission is to protect the public.
True
The purpose and mission of the Commission is to protect the public.
False
Match the following: Hearing will still be held, Registered mail, TREC, Before the date of the scheduled hearing, Ten days, Tennessee Administrative Procedures Act
A)
Person or entity who sets time and place of hearing
B)
How notices are usually sent and received between TREC, the accused, and the complainant
C)
Action taken if licensee fails to appear at a hearing
D)
Allows for the possibility of appeal of TREC decision at a hearing
E)
Time period TREC must receive a request for continuance of a hearing
F)
Licensee’s response time to TREC when notified of a complaint
Hearing will still be held = C
Registered mail = B
TREC = A
Before the date of the scheduled hearing = E
Ten days = F
Tennessee Administrative Procedures Act = D
The time and place for a disciplinary hearing are set by the licensee.
False
When a licensee is notified by TREC of a complaint filed against the licensee, the licensee must respond to the Commission with an answer to the complaint within 10 days.
True
Match the following: Majority, Placed on inactive status, Six, Voided, One thousand dollars, Returned to TREC
A)
Commission vote necessary to reinstate a license revoked by the court
B)
Commission vote necessary to revoke a license
C)
Disposition of a revoked license
D)
Maximum per day per violation civil penalty
E)
Effect on brokerage agreements if firm license is revoked
F)
Effect on affiliate’s license if the broker’s license is revoked
Majority = B
Placed on inactive status = F
Six = A
Voided = E
One thousand dollars = D
Returned to TREC = C
Should a licensee obtain a listing and the firm license is revoked with no one to take over the business, the listing is considered void.
True
Should a broker’s license be revoked, all affiliated licenses under the broker are considered to be void.
False
Match the following: Rice Insurance Agency, Maximum award per defense under E&O, Two years, Errors and omissions insurance, Maximum deductible per award under E&O, None
A)
Licensees must obtain before activating a real estate license
B)
Renewable term for E&O insurance
C)
Requirement that Tennessee licensees be bonded.
D)
$100,000
E)
State-endorsed E&O insurance vendor
F)
$1,000
Rice Insurance Agency = E
Maximum award per defense under E&O = D
Two years = B
Errors and omissions insurance = A
Maximum deductible per award under E&O = F
None = C
Licensees are NOT covered by E&O insurance when listing or selling their own personal residence.
False
E&O insurance does NOT cover the sale of a property built or developed by the licensee.
True
Because Tennessee now has errors and omissions insurance, the Education and Recovery Account has been terminated.
False
Errors and omissions insurance must be carried whether a license is active, inactive, or retired.
False
If it is discovered that a licensee failed to timely renew E&O insurance, TREC will immediately revoke the licensee’s real estate license.
False
Which of the following would subject a licensee to discipline?
A)
Preserving records of real estate transactions for longer than three years
B)
Failing to give a copy of a signed document to the signor upon signing
C)
Timely accounting for trust fund deposits
D)
Using the term REALTOR® when authorized to do so
Explanation
The answer is failing to give a copy of a signed document to the signor upon signing. It is a violation of license law to use or promote the use of any real estate listing agreement form, real estate sales contract form, or offer to purchase real estate form that fails to specify a definite termination date.
Jolene falsified information on her real estate license application. In this case, TREC has the authority to
A) have Jolene imprisoned. B) send Jolene back to her country of national origin. C) modify the information on the application. D) refuse a license to Jolene.
Explanation
The answer is refuse a license to Jolene. If TREC determines that a violation has occurred, it has the authority to reprimand, suspend, or revoke an existing license or to refuse a license to the applicant.
Should a firm license be revoked, the status of the brokerage agreements between the affiliated licensees and the firm is
A) extended. B) inactive. C) retired. D) void.
Explanation
The answer is void. The firm owns the contracts. Thus, all brokerage agreements become void if no other broker can be found to take over responsibility for the office and to conduct business. If the firm license is revoked, the firm is out of business.
For TREC to revoke a license, the necessary vote is
A) a majority vote. B) six or more commissioners voting to revoke the license. C) nine. D) nine plus the vote of the executive director.
Explanation
The answer is a majority vote. For TREC to revoke or suspend a license takes a majority vote as long as there are enough commissioners present to establish a quorum.
The maximum civil penalty that TREC may impose on unlicensed persons per violation per day is
A) $3,000. B) $2,000. C) $1,000. D) $4,000.
Explanation
The answer is $1,000. As of 1998, TREC can punish unlicensed persons. TREC may impose a $50–$1,000 fine per transaction per day. Each day of a continued violation constitutes a new violation.
Allegations of inappropriate activity are communicated from TREC to the accused licensee by
A) registered mail. B) phone call. C) regular mail. D) email.
Explanation
The answer is registered mail. All communications regarding allegations of a licensee’s inappropriate activity are communicated between TREC, the consumer, and the licensee by registered mail.
Once a licensee is notified of an allegation of inappropriate activity, the licensee must respond to TREC with an answer to the allegation within
A) 30 days. B) 60 days. C) 2 weeks. D) 10 days.
Explanation
The answer is 10 days. The licensee must respond to TREC within 10 days of the date on the postmark on TREC’s letter.
The state-endorsed provider of E&O will defend a licensee
A) up to three times per license period. B) once a year. C) twice per license period. D) up to three times in any coverage period.
Explanation
The answer is up to three times in any coverage period. Coverage periods run from January 1 of odd years through December 31 of even years. Rice’s attorneys will defend licensees up to three times in any one coverage period.
If TREC determines there is no reason to conduct a hearing resulting from an allegation against a licensee,
A)
TREC will still hold a hearing if the complainant requests it.
B)
a letter is sent to each party and the case is closed.
C)
the complainant will have to pay a civil penalty of $1,000.
D)
TREC will still hold a hearing if the accused requests it.
Explanation
The answer is a letter is sent to each party and the case is closed. If TREC determines that there was no probable cause that warrants discipline, a letter is sent and the case is closed.
