Montana Law - state portion of exam Flashcards

Montana Law - state portion of exam Flashcards Who is NOT required to have a real estate license?>Owners or Lessors selling or leasing their OWN property.>Auctioneers employed by an owner.>Anyone acting under court order - e.g. A sheriff conducting a sheriffs sale.>People buying or selling road right-of-way or buying or selling oil and gas leases.What should you do fist? Disclose that you are a real estate licensee or provide the Relationship Disclosure Form?Disclose that you are a real estate licensee at first contact!As the listing agent, what is the dollar amount of the fine for violating an offerors confidentiality?$100-$500 for a first time violator$500-$2,000 for a subsequent violation*Note* $1,000 is a false option on the exam. DO NOT fall for it.Can a licensee perform an appraisal?NO! but they can do an informal comparative market analysis, competitive market analysis or a Broker Price Opinion.How many members are in on the Board of Realty Regulation, who appoints them, and where are they located?

• persons, the Governor, Helena

What is comingling and why is it important to avoid?Mixing trust account funds with the Broker's personal funds. The broker is allowed, however, to keep up to $1,000 personal funds in the trust account with the purpose of paying bank fees (so the bank fees won't be charges to the client's funds). The reason for prohibiting commingling in the trust account is to protect the funds from the broker's creditors.Who is required to have a broker or salesperson license?A broker or salesperson negotiating the sale or leasing of real estate with or without the expectation of getting paid.Before you place a "For Sale" sign or advertise a property, what must you first do?Obtain the listing!What is the Agency Relationship Disclosure Form and when must it be submitted to the appropriate parties?This form must be presented to each party disclosing whom the agent is representing before negotiations commence (vague), but as early as possible.What offers is the licensee required to present to the seller?ALL OFFERS. The licensee should present all offers to the seller prior to a contract being signed, and the continue to present offers received prior to closing, as back-up offers in the event something falls through.What is the magic number for most of the TQ's in the state portion of the exam?

10.A salesperson whose supervising broker dies, is disabled (no longer licensed) and they MUST notify the board within 10 days.If the salesperson desires to switch brokers they must notify the Board within 10 days and obtain a new license card prior to performing any license related activities for the new broker - all previous listings and transactions remain with the old supervising

brokerMoney held in the trust account, which is payable to the broker at closing must be withdrawn within 10 business days after closing (to not risk co-mingling bc now it is personal money).What should a licensee NEVER do?>Give legal advice>Communicate with another agent's client without consent from that agent>Act as a dual agent>Sell property by bribing or influencing purchaser.Door prizes may be awarded as long as the licensee is not committing the participant to a contract or some sort of

monetary consideration.What power does the board have?Subpoena documents and witnessesIssue an injunction against any licenseeReprimand a licenseePlace a license on probationSuspend a license for one yearPermanently revoke a license

What must the real estate agent make clear when running ads?State the ad is made by a brokerage firm or include the licensee's name and and that the ad is made by a real estate licensee. MUST be clear that this ad is not a FSBO ad!Within how many days of the broker or salesperson receiving the earnest money must it be deposited into the trust account?

• days. Unless the buyer's check is postdated or the

buy-sell agreement specifies otherwise.What is the process if the board receives a sworn written complaint about a licensee?>The board must conduct an investigation, even if the complaint seems frivolous.>The board must give notice and set the matter for hearing before revoking or suspending a license - Unless the licensee waives the right to a hearing.>Allow the licensee to subpoena witnesses and be represented by an attorney>Any license revocation or suspension may be appealed to the local MT District Court.The boards rules are laws, what is the charge for violating them?A misdemeanor offense, but not a felony.