Ch. 15 Michigan Real Estate License Law Flashcards

Ch. 15 Michigan Real Estate License Law Flashcards Issues real estate licensesDepartment of Licensing and Regulatory Affairs (LARA) BrokerAn individual or business entity that, with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses of, lists or offers or attempts to list, or negotiates the purchase, sale, or exchange of real estate; that negotiates the mortgage of real estate; that negotiates for the construction of a building on real estate; that leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; that engages in property management as a whole or partial vocation; that sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or that, as owner or otherwise, engages in the sale of real estate as a principal vocation.CorporationA legal structure authorized by state law that allows a business to organize as a separate legal entity from its owners for liability or tax purposes.Minerva is a candidate for a salesperson's license in Michigan. How many hours of pre-license education must she take?40 Pocket CardA wallet-sized replica of the actual real estate license that serves as a portable proof of licensure, and thatmust becarried whenever a licensee is engaging in the practice of real estate.Jerome is the employing broker of Brilliant Homes Realty. If his license is suspended, the licenses of all his associate

brokers and salespersons are:

also suspended.In order to retain one's status as an independent contractor for the purpose of income taxation, a Michigan real estate licensee must make at least _______ of their annual compensation from the sale of real estate.75% The Board revoked a salesperson's license for gross negligence. How many years must she wait before she can apply for reinstatement?Three years CitationThe issuance of a violation notice, including actions that the respondent must take to remedy the violation, often including afine.

Licensee Louisa opens a new brokerage firm under the name Louisa's Land Sales. She is the sole proprietor.Which statement is TRUE?Louisa has an individual broker's license issued under an assumed business name.The board of Real State Brokers and Salespersons is responsible for aiding the Department of Licensing and Regulatory Affairs (LARA) in carrying out the requirements set forth in the Occupational Code, such as setting penalties when licensees commit a violation.Consent to Service of ProcessAn irrevocable consent signed by nonresidents agreeing to allow legal action to be brought against a licensee in the State of Michigan.Principal Associate BrokerAn individual control person who is licensed as an associate real estate broker and is designated as a principal.Regulates real estate practiceBoard of Real Estate Brokers and Salespersons Chip rents an apartment from Maurice and pays $1,200 a month in rent. If Chip refers a new tenant to Maurice, what is the maximum referral fee Maurice can pay him under Michigan license law?$600 If a real estate licensee loses their license for violating the Occupational Code, they CANNOT also face possible criminal charges.False RevocationThe permanent withdrawal of a licensee's license; aminimumofthreeyears.Which activity would NOT require a real estate license?devoting more than 12 hours per week in any 6-month period to selling real estate Olive has met all of the requirements to be a real estate broker. When she joins Victory Realty, she will MOST

LIKELY be licensed as a:

nonprincipal associate broker.Unless she is an owner of Victory Realty, Olive cannot be licensed as a principal associate broker.All salespersons affiliated with Bigger Better Realty had their licenses suspended at the same time. What is the MOST likely reason?Their broker's license was revoked.You are accused of misappropriating funds and the Department filed a formal complaint against you on May

• By when must you respond?

May 25 A licensed salesperson can have only one employing broker.true A real estate company can have only one principal associate broker.false Which action may NOT be performed by someone who has a real estate salesperson's license?Provide a formal appraisal What is the purpose of license law?Protect the public Your license has been revoked. When is the soonest you could apply to have it reinstated?Three years If the Department requires a salesperson to post a bond, what's the maximum length of time the Department may

impose?Five years

Ralph has been a successful agent for XYZ Estate Sales for 15 years, and he decides that it's time to start his own real estate company. At least initially, Ralph will be the only employee of Rich Ralph Realty, Inc. Which statement defines the license requirements for the new company?The company is a broker and Ralph is a principal associate broker.Jack received his real estate license on September 1,

• He must complete 18 hours of continuing education

before August 31, 2026, in order to renew his license.true How many hours of education on real estate legal updates must Jack complete each year in order to renew his license?

• hours

Which of the following licensees has met Michigan's continuing education requirements?Dee, who completed two hours of statutes, rules, and court cases each year of her three-year renewal cycle, and 12 hours of approved coursework in her third year, for a total of 18 hours Control PersonAn individual who is a sole proprietor, is a partner in a partnership or limited partnership, is an officer, director, or shareholder in a corporation, is a member or manager in a limited liability company, or holds a responsible position in any other form of business entity authorized under the law.SuspensionA real estate agent's license being temporarily withdrawn for a specifiedperiodoftime.The Department revokes the license of ABC Realty'snonprincipalassociate broker Josh for gross misconduct. What is the status of the 12 licensed salespersons at ABC?Their licenses are unaffected.If the Department determines that your conduct poses an imminent threat to the public, it can take these actions.Suspend your license, issue a cease-and-desist order, issue a citation Enforces Michigan Occupational CodeDepartment of Licensing and Regulatory Affairs (LARA) Dani transferred her license to a new broker. Her new broker endorsed her pocket card and she's waiting for her certificate of license from the Department. Is she allowed to practice real estate while she waits?Yes, but her pocket card is only valid for 45 days from the date of the endorsement.Cease and Desist OrderAn injunction telling the licensee that he or she must immediately stop some specific action.Buyer Yvonne filed a complaint against her agent, Otis, accusing him of refusing to show her houses in an exclusive neighborhood. The Department's investigation determines there is some merit to her accusation. What is the next step?The Department will file a formal complaint.Licensee Sophie opens her own brokerage, I-Sell Realty.Which is NOT an acceptable licensing scenario for her situation?Sophie can be a nonprincipal associate broker, I-Sell can be the broker, and she can hire any number of salespersons.Kim is the executor of her sister's will. She is generously compensated when she sells her sister's house. Must Kim