Michigan real estate law Flashcards

Michigan real estate law Flashcards Which is not a type of agency recognized in Michigan?Undisclosed dual agency When a licensed broker changes his or her place of business The Department could choose to revoke the license if the broker fails to give proper notification of the change.Broker Gary opens a branch office. Gary must appoint an associate broker to supervise this office under what circumstance?If the office is more than 25 miles from the city limits which the broker maintains his main office.Broker James has a listing based on net price. Which statement is true?This listing is illegal in Michigan.Which of the following is a real estate licensee NOT allowed to perform under Michigan license law?Appraise property Elena's listing with Ben of Homeland Real Estate Group has expired, so she lists with Associated Realty. Ben finds a buyer for Elena's home. Which statement is true?Ben cannot disclose any information about offers that Elena received during her listing with him.Read each of the following situations and determine if the activity would require a real estate license Grace is selling her mother's home as executor of her estate.No. An executor is exempt from the license law in Michigan.what is the name of the recovery fund that helps consumers who have been damaged in a real estate transaction?Michigan doesn't have such a fund.

• specific real estate violations that could result in a

complaint?Failing to provide a written agency disclosure.Paying a fee to an unlicensed person.Failing to properly maintain a trust account.Which of the following is NOT exempt from the Seller's Disclosure Act?Sale of a two-unit residence by the owner Glenda is the office manager for a local real estate firm.She is responsible for coordinating the paperwork flow through the office, preparing ads and supervising the clerical staff. Glenda is Exempt from the license law Broker Karen received an earnest money check from buyer, Dan. What should Karen do with the money?Deposit the money in a non-interest bearing trust account that holds other escrow funds.What happens to listings, buyer's agency's agreements, and property management agreements if a brokers license is revoked?They are automatically canceled. They can not be transferred or sold. The sellers and lessors must be notified of their right to list or lease with someone else.If there is evidence of a violation, the attorney generals office may issue one of 4 notices. What are they?Formal Complaint, Cease and desist order, Notice of summary suspension, Citation.The Lead-Based Paint Disclosure Act has several requirements. Which of the following is NOT one of them?Remove any lead-based paint known or found to be on the property.Tom and Mary have just signed a lease on an apartment.The lease contained a provision to waive their rights to the security deposit. Which statement is true?The provision is unenforceable, but the lease is still good.

Read each of the following situations and determine if the activity would require a real estate license George manages a rental property and is responsible for securing and preparing leases and obtaining signatures.Yes. Any person who leases, rents or offers to lease or rent real estate must have a license.The Occupational Code authorizes the Department of Licensing and Regulatory Affairs to administer this law.Article 25 created the Michigan Board of Real Estate Brokers and Salespersons to regulate real estate brokers and salespersons.Who is responsible for preparing closing documents?Listing broker Who might file a complaint alleging violations of the code?Anyone from the public, private associations, department board or attorney generals office.The sale of a property can be marketed in many ways; however one of the following is prohibited in Michigan.Which is it?Selling chances What role does the Department have with regard to schools, courses and continuing education?The Department approves schools, courses, and continuing education Seller Gordon refuses to accept an offer to purchase his home from buyer Juan Valdez of Columbia, South America because Gordon feels the earnest money of $100.00 is not enough. Which of the following statements about Gordon's refusal is correct?Since Gordon refused on the basis of the earnest money, he is not in violation of Fair Housing.What is the makeup of the Board?There are 9 members - six are real estate licensees, the other three are members of the general public What is the maximum number of years a Board member may serve?

• years

What is the difference between Articles 1-6 and Article 25 of the Occupational Code?Articles 1-6 are general rules that apply to all license categories in Michigan,Article 25 applies specifically to real estate.Which of the following is not a requirement for obtaining a broker's license?Twenty-one (21) years old Broker Dan is required to keep seller Gary informed of all material facts pertinent to the sale of his home. Which of the following facts must Dan tell Gary?The buyer's lender will require the buyer to have private mortgage insurance (PMI).Seller Mitch took broker Adam to court for fraud. Mitch won and was awarded damages in the civil suit. If the Department finds out about this, what can they do?Initiate its own investigation against Adam.A non-resident applicant for a license must file which of the following with the license application?A "Consent to Service of Process" form allowing appropriate action to be brought against him or her in Michigan If the board assesses a civil fine as a result of its findings how much could that be?Up to $10,000 What role does the Board have in the same area? The Board recommends.who does not need a licenseMichigan-licensed builders (individuals, partnership, corporation or association) who sell what they have built - up to a quadruplex - that has never been occupied.An individual owner selling his or her own property.An

individual lessor leasing his or her own property.Any partnership, association, or corporation selling their own property.Attorneys-in-fact acting under a legal power of attorney.An auctioneer who auctions real property to determine its price, provided that the closing of the sale is handled by a licensed Michigan real estate broker or an attorney.Southtown Realty has entered into agency agreements with Sara, a seller and Tom, a buyer. Tom wants to make an offer on Sara's home. Is this possible?Yes, but only if Sara and Tom both give written consent to a dual agency arrangement.

List exemptions to the mortgage brokers, lenders and servicers act that applies to real estate licensees.

• a sales person acting as an agent for a licensed

residential builder.2. a licensee who acts as a mortgage broker in connection with a sale or lease without additional compensation beyond the customary commission on the sale or lease.3. a licensee who acts in this capacity on 10 or fewer mortgage loans in a 12 month period from July 1 to June 30.4. a salesperson who services 75 or fewer land contracts of which 10 or fewer require the collection of money for the payment of taxes or insurance.The phrase "engaging in the real estate business" means acting for another in exchange for a fee in all but which of the following situations?Building a home for another Which of the following would be in violation of license law if performed by broker Rhonda?Prepare a document to correct a title defect.To be entitled to receive a commission on her exclusive listing, the broker must prove all the following EXCEPT that

he/she:

that he/she belonged to the real estate board John is a licensed salesperson. He can hold a concurrent license with more than one broker under which circumstance?Under no circumstances If a salesperson fails to renew his or her license by the end of the grace period, but attempts to renew within the next 3 years, he or she may be granted relicensure by doing all of the following EXCEPT Submitting a letter explaining the circumstances in place of the application form License application fees are valid for how long? Twelve months How many of the 40 hours of approved salesperson instruction must be in the area of civil rights law and equal opportunity in housing?4 The members of the Michigan Board of Real Estate Brokers and Salespersons are selected by Governor appointment Which of the following situations in a listing agreement could lead to a suspended or revoked license?No expiration date When Broker Al represents a seller, the written disclosure of agency relationships must be given to The seller, prior to disclosure by the seller of any confidential information All Michigan real estate licensesAre renewed every three years What does the Department consist of?a director as its executive head and other officers and employees appointed or employed by the department.When a complaint is filed what does the department do first?Begin the investigation by opening a correspondence file and then notify the person who filed the complaint.How long does it take to normally complete an investigation?30 days.How long does the board have to assess a penalty after receiving a hearing report?60 days Since a broker has a duty to supervise all of her agents, Tammy would be in violation of license law if she Did not give written policies to her agents