Oklahoma Real Estate - Laws Rules Flashcards

Oklahoma Real Estate - Laws & Rules Flashcards

OREC appointed by:Governor with advice and consent of the Senate

License terms & renewalLicense expire at the end of the thirty-sixth (36) month including the month of issuance.Provisional sales associate license expire at the end of the twelfth (12th) month including the month of issuance.OREC consist of7 members - All US citizens - Residents 3 years prior to appointment.5 members - licensed brokers 5 years experience1 member - real estate school representative1 member - lay personNo more than 2 persons from same district OREC term of service4 years OREC Licensing of nonresidentsAny person who desires to perform licensed activities in Oklahoma but maintains a place of business outside Oklahoma may obtain a license by complying with all applicable provisions of this Code including the successful completion of the applicable Oklahoma state portion of the real estate examination.Bona fide offeran offer in writing Confidential information1. That a party is willing to pay more or accept less than what is being offered;2. That a party is willing to agree to financing terms that are different from those offered3. The motivating factors of the party purchasing, selling, leasing, optioning, or exchanging the property.Single-party brokerA broker who has entered into a written brokerage agreement with a party in a transaction to provide services for the benefit of that party."Resident referral fee" meansA nominal fee not to exceed One Hundred Dollars ($100.00), offered to a resident for the act of recommendingthe property for lease to a family member, friend, or coworker; Brokera sole proprietor, corporation, managing corporate broker of a corporation, association,managing broker member or manager of an association, partnership, or managing partners of a partnershipand shall be one and the same OREC EDUCATION & RECOVERY FUNDConsist of monies received by the OREC. The revolving fund shall be a continuing fund not subject to fiscal year limitations.May invest all or part of the monies of the fund in securities offeredthrough the "Oklahoma State Treasurer's Cash Management Program." Monies in the fund shall be used to reimburse any claimant who has been awarded a judgment.

Unlicensed violations - PENALTIESPersons shall be guilty of a misdemeanor punishable by a fine of not more than One Thousand Dollars ($1,000.00), orby imprisonment in the county jail for not more than six (6) months, or by both such fine and imprisonment. A fine of not more than FiveThousand Dollars ($5,000.00) or the amount of the commission or commissions earned, whichever is greaterfor each violation of the Code for unlicensed activity Shall be deposited in the Oklahoma Real Estate Educationand Recovery Fund.Psychologically impacted disclosureMay disclose with the CONSENT OF OWNER if the owner refusesto disclose, the licensee assisting the owner shall so advise the purchaser or lessee. (1.) HIV or AIDS (2.) that the real estate was, or was at any time suspected to have been the site of a suicide, homicide or other felony,is NOT a material fact that must be disclosed in a real estate transaction.Authority of ORECCreated January 1, 1950 - Sole governmental entity having the authority to regulate & issue real estate licenses.TransactionAny or all of the steps that may occur by or between parties when a party seeks to buy, sell, lease, rent, option or exchange real estate and at least one party enters into a broker relationship.Trade nameThe name a firm is to be known as and which is used in advertising by the firm to promote and generate publicity for the firm.Written brokerage agreementAgreement to provide services as either a single-party broker or a transaction broker.Eligibility requirements for license as real estate provisional

sales associate are:

Any person of good moral character, eighteen (18) years of age or older, and who shall submit to the Commission evidence of successful completion of ninety (90) clock hours or its equivalent.Nonresident license requirementsA nonresident applicant who has been actively licensed as a sales associate or broker respectively for a minimum of two (2) years out of the previous five (5) years.Expenditure of OREC Education & Recovery funds. When fund exceeds $250,000.00, the Commission may expend such excess funds each fiscal year for the following purposes (1)promote the advancement of education in the field of real estate for the benefit of the general public (2)underwrite educational seminars and other forms of educational projects for the benefit of real estatelicensees (3)establish real estate courses at institutions of higher learning (4) contract for a particular educational project in the field of real estate Provisional Sales associate post education requirements:The licensee shall submit to the Commission, prior to the expiration of the provisional license, evidence of successful

completion of forty-five (45) clock hours or its equivalent.

Functions of ORECMake & enforce rulesIssue licenseAdminister examsCollect FeesDiscipline & disciplinary proceedingsPrescribe penaltiesInitiate prosecution for unlicensed activityApprove instructors Licensed activity - Administrative Fines a. be less than One Hundred Dollars ($100.00) and shall not exceed Two Thousand Dollars ($2,000.00)for each violationb. exceed Five Thousand Dollars ($5,000.00) for all violations resulting from a single incident or transactionc.All administrative fines shall be paid within thirty (30) days of notificationd. All monies received shall be deposited in the Oklahoma Real Estate Education and Recovery Fund Notification of Commission of conviction or plea of guilty or nolo contendere to felony offense (30) days after the plea is taken and also within thirty (30) days of the entering of an order of judgment and sentencing.Required number of continuing education hours Each licensee shall have completed of said twenty-one (21) clock hours of continuing education (12) clock hours of required subject matter (9) clock hours of electives as approved by OREC.Issuance of OREC License-Term-FeesThe Oklahoma Real Estate Commission shall issue every real estate license for a term of thirty-six (36) months EXCEPT a provisional sales associate license whose license term shall be for twelve (12) months.The expiration date of thelicense shall be the end of the month, including the month of issuance. Fees shall be promulgated by rule, payable in advance, and nonrefundable.Transaction brokerA broker who provides services by assisting a party in a transaction WITHOUT being an advocate for the benefit of that party.License FeesSales associate license and renewal $150.00Inactive license & renewal $95.00Non-renewable original provisional sales associate $70.00Education and Recovery Fund fee,$15.00Provisional SA Education & Recovery fund $5.00 OREC Revolving FundCreated by Oklahoma State Treasury - Consists of all monies received by OREC EXCEPT Education & Recovery fund fees - Not subject to fiscal limitations - May invest all or part in approved securities - Accrued interest deposited in General operating fund.Purpose of ORECTo safeguard the public interest and provide quality services by assisting and providing resources; encouraging and requiring high standards of knowledge and ethical practices of licensees; investigating and sanctioning licensed activities;the prosecution of any unlicensed person.