Michigan Real Estate Review Flash Cards Flashcards

Michigan Real Estate Review Flash Cards Flashcards

Chapter 1. Michigan Occupational Code:Brokers as

Non-Living Entities:Who / What may a Broker's license be

issued to? If the broker is an entity, there must be what?A broker license may be issued to an individual or any entity legally able to do business in Michigan.If the broker is an entity, there must be one living licensed principal associate broker.How many members of the Board represent the occupation?How many represent the general public?6,3 Reinstatement is when a license is granted after being

revoked.If the board approves the applicant must:1. Pay a

license fee for the license period2. No credit will be given for education granted, examinations, or experience obtained before revocation.

Chapter 1. Michigan Occupational Code:How long must

someone wait once their license has been revoked to apply for a new license?One is said to possess a lack of good moral character ifThey have committed a felony or demonstrated an inability to serve the public in a fair, honest and open fashion.If the Department denies one's application for license, is there any recourse?One may go before the Board for a review of this decision.

Chapter 1. Michigan Occupational Code:What is the name

of the Michigan Real Estate Board?The Board of Real Estate Brokers and Real Estate Salespersons.

Chapter 1. Michigan Occupational Code:What is a Principal

Associate Broker?What is a Non-Principal Associate Broker?A Principal Associate Broker is either

a:MemberManagerOwner orOfficerof an entity legally able

to do business in the state (brokerage).A Non-Principal

Associate broker is not a:MemberManagerOwner

orOfficerEvery active officer of a real estate corporation who practices the occupation must be licensed as an associate broker.Yes if they are supervising others then they must.Brokers have to have the ability to supervise agents so they may not include any clauses contractually in which they lose their ability to govern agents.

Chapter 1. Michigan Occupational Code:Who may a real

estate salesperson receive commission from?The broker who accepts the deposit must retain such deposit until the closing or the termination of the transaction.

Chapter 1. Michigan Occupational Code:Although either

broker may close the sale and furnish closing statements, it is the final responsibility of whom to close the sale and furnish signed closing statements to the buyer and seller?Name as any as possible of the board imposed penalties a licensee may face.Denial, suspension, limitation, revocation, civil fine not to exceed $10,000, censure, probation, making restitution, posting a bond.If a broker decides to open a branch office in a nearby town, what is required?The broker needs to apply for a branch office license and if the branch is more than 25 miles from the city limits of the main office, an additional associate broker will be needed to manage that office.the salesperson must give the broker written notice of termination.The broker is then responsible for sending the

salesperson's license by CERTIFIED MAIL to the department (LARA) within 5 days.

Chapter 1. Michigan Occupational Code:What must a

broker do to discharge a salesperson?

A fee title policy must be offered to the purchaser by the agent at the time of the offer to purchase, and must be for the purchase price and issued or certified to the approximate date of closing.

Chapter 1. Michigan Occupational Code:Disclosure of

Material Facts (Material = Direct Effect):Is the licensee

allowed to fully disclose Material Facts about the condition of real estate being offered?

Chapter 1. Michigan Occupational Code:Each Michigan

occupation is represented by a what?By a board.Blind ads are an advertisement that does not include the identity of the person placing the ad. Only a phone number or P.O box number.They are illegal in Michigan

Chapter 1. Michigan Occupational Code:Licensees must

not use misleading advertising.Are games of chance for promotion legal?Six hour classes are required for salespersons, individual brokers, and associate brokers each year. It must include economic conditions, law, rules, court cases, and interpretations related to real property.

Chapter 1. Michigan Occupational Code:How many hours

of continuing education must you go through to renew your license?Must you disclose the property was the site of a murder, suicide or paranormal event?Michigan requires no such disclosure and does not consider it a material fact.Which broker is responsible for the earnest money deposit?Whoever receives the deposit is responsible for bringing it to the closing.

Chapter 1. Michigan Occupational Code:What is the role of

a Real Estate Salesperson?

• Any person who does any of the above things that a

broker does, just underneath of a broker2. Must be licensed under a broker3. Cannot be licensed with more than one broker at a time4. May be either an employee or independent contractor of the broker What is the name of the individual who, in a formal hearing, determines guilt or innocence.The Administrative Law Judge.The disbursement of an earnest money deposit shall be made in accordance with the agreement signed by the parties.If there is a situation in which the buyer and seller assert claims to the earnest money deposit, the broker may file an inter - pleader action which has him join the parties to determine who is entitled to the earnest money.

Chapter 1. Michigan Occupational Code:Who can close a

transaction ?IMMEDIATELY!The broker who accepts the deposit must retain the deposit until the settlement or termination of the transaction.**A salesperson cannot accept checks for escrow fund that are made out to them personally**

Chapter 1. Michigan Occupational Code:How long does a

broker have to deposit the earnest money deposit after receiving it?

• Which are received after the seller accepted an offer and

the sales agreement is fully executed.2. Unless the service provision contract (listing agreement) requires that subsequent offers be presented (this does not relieve a licensee from civil liability).

Chapter 1. Michigan Occupational Code:When must a

salesperson give the deposit to the broker after having received it?Brokers who accept earnest money deposits shall maintain them in a trust or escrow account and retain these deposits until consummation or termination of the transaction.1. The trust or escrow account must be maintained in a non-interest bearing, demand account only2. Only brokers or associate brokers can sign checks to withdraw money

from the trust account (cosignatories may be used, but the signature of the broker or associate broker must also be used).3. Brokers may maintain more than one trust account.4. The account shall designate the broker as the trustee.Brokers may maintain their own funds in the trust account but it cannot exceed $2000 and only be used for bank service charges, and to keep the account open.Trust account records must be kept for 3 years.

Chapter 1. Michigan Occupational Code:Trust Accounts

(Escrow Accounts, Custodial Accounts):How must a

property management escrow account be managed?

Chapter 1. Michigan Occupational Code:What are the

specific real estate salesperson licensure requirements?

• You must have proof that you have passed a 40 hour

approved real estate course (at least 4 hours on civil rights).2. You must provide a statement of the period of