Unit 3 - Vocab Flashcards
(23 cards)
Two categories of complains about real estate
unlicensed individuals practicing real estate on the general public and licensed persons practicing real estate
The Pennsylvania Licensing and Registration Act provides for penalties if a person:
-Holds himself out as a licensed salesperson, etc., within the Commonwealth without a current real estate license;
-Employs a person who is acting as a salesperson but does not have a license;
-Advertises as a licensee.
If a person or entity is found guilty of unlicensed persons conducting real estate activities
-1st offense is a fine not to exceed $500 or suffer imprisonment for not more than three months;
-2nd or subsequent offense, is guilty of a felony of the third degree
Attorney-in-fact
is a competent person acting for another under the power of attorney, carrying with it the responsibilities of a fiduciary. It is not necessary to be an attorney to be an attorney-in-fact
Power of Attorney
A legal document which is signed and notarized for the express purpose of representing another to the extent indicated in the document
Comparative Market Analysis
a written analysis relating to the probable sale price of a specified piece of property in an identified real estate market at a specified time.
commingling
is placing other people’s money into a personal or operating account of the broker. it is expressly FORBIDDEN
nolo contendere
this plea does not indicate guilt or innocence on the part of the defendant.
complainant
person making the complaint to a licensing group such as the Pennsylvania Real Estate Commission
Order to Show Cause
court-ordered appearance to present to the court reasons why an order should not be confirmed. In this case, it applies to any penalties directed by the PA Real Estate Commission
Respondent
the person answering the charges brought to the complaints office
Final Adjudications, Orders and Commission-approved Orders usually represent disciplinary actions of some sort against a licensee or an unlicensed person. The commission, upon the proper hearings and due process may issue:
Reprimand, suspension, revocation, fines
Reprimand
by letter, becoming a permanent part of the licensee’s record
Suspension
temporary loss of license for a stated time period.
Revocation
a permant loss of license, although a person may apply after 5 years for reinstatement
Real Estate Recovery Act
it’s purpose is to provide relief and compensation for any aggrieved person who has been victim in a real estate transaction
The grounds for receiving this judgment are
-Fraud
-Misrepresentation
-Deceit in a real estate transaction
Aggrieved person
a person who has suffered loss or injury or whose rights were violated.
The aggrieved person shall be required to show:
-That he is not a spouse of the debtor or the personal representative of the said spouse;
-That he has obtained a final judgment as set out in this section
-That all reasonable personal acts, rights of discovery and other remedies at law and in equity as existed have been exhausted in the collection;
-That he is making the application no more than one year after the termination of the proceedings, including reviews and appeals in connection with the judgment.
The Commission, with a minimum of five member votes, can assess an additional civil penalty of up to $1000 per offense:
-On any current licensee who violates provisions of the Act
-On any person practicing real estate without being properly licensed to do so under the Act.
Who does not need a PA Real Estate License:
-An owner selling or leasing his own property. Employees of the corporation or partnership are not excluded.
-An employee of a public utility company performing utility work.
-An attorney-in-fact working as an attorney and receives fees as an attorney, not as a real estate broker.
-An attorney-in-fact, who is acting under the power of attorney, provided this is not used to avoid the law.
-A trustee, administrator, executor, or guardian who is acting under the authority of a court order, will or trust instrument;
Licensees are prohibited from:
-Failing to maintain proper escrow accounts, records of accounts, commingling money;
-Failing to preserve for three years following its consummation records relating to any real estate transaction;
-Acting for more than one party in a transaction without the knowledge and consent in writing of all parties for whom he acts;
-Advertising property without the written consent of the owner; Failing to voluntarily furnish a copy of any contract relevant to all signatories at the time of execution
The Real Estate Commission will not become involved in disputes over monetary disputes unless…
it involves an allegation that services were billed for, but were not rendered or that the person billing is not a licensed real estate professional.
When the court orders the judgment to be paid, the liability of the fund shall not exceed. ____ for any one claim and shall not exceed ___ per licensee.
$20,000 / $100,000
That licensee remains on suspension until the Fund is ____________________.
repaid plus 10% interest per year.
