PSI Real Estate Exam MD State Portion Flashcards

PSI Real Estate Exam (MD State Portion) Flashcards Duties and powers of the CommissionTo administer and enforce the Brokers ActHas statutory authority- Approve CE classes- Adopt rules and regulations- Discipline Licensees- Investigate complaints of unlicensed brokerage activity- Investigate complaints about license behavior.- Conduct hearings and administer oaths- Issue subpoenas for attendance of witnesses or production of evidence- Take depositions- Seek injunctions Real estate hearing boardThe Commission establishes2 or 3 panelsmade up of at least one real estate member and one consumer member from the commissions members.A chairperson for each panel is designated.Client level serviceAre represented by broker under a written agreement as a buyers agentRepresenting them as presumed agentOr for sellers representing them as listing agents Returning licenses- on the request of a real estate salesperson or broker- on the death of an affiliate- after a hearing before the commission whether suspended or revoked Real Estate Teams- A broker is never to be on a Team- Must be made up of 2 or more licensee(and assistant and employee who work together on a reg basis.)- Team members must work from the same office where their license is retained- Must clearly advertise that it is part of a brokerage firmWhen signing documents in the course of brokerage activities the individual must sign his name not in the name of the team.Trust funds must go into the brokers office procedures not the Teams account.Must keep accurate and updated lists of members by the leader.Deceased BrokerFamily member has6 months to closeand terminate the business. The certificate of the deceased must be surrendered to the commission Qualifications for salesperson license- Good character and reputation- 18 years old- 60 hour + 3 block hours of real estate ethics- Pass the required examination- Obtain written commitment for a licensed real estate broker to accept the applicant as a salesperson Competitive market analysisMay also be called a " comparative market analysis" or " brokers price opinion"By ethics of the commission the analysis must stateThat it is not an appraisal, it is only intended for the purpose of assisting buyers and sellers, in deciding the listing and offering price.Claims not covered by the Guarantee Fund - Purchase in alimited partnershipthat invests in real estate-Joint venturefor investment in real

estate-Commercial papersecured by real estate-Spouseof the alleged- not for disputes betweenbrokers and or salespersons

Maryland has reciprocal license withPennsylvania and Oklahoma Inactive statusWhen on this status a salesperson is not allowed to provide brokerage services because they do not report to anyone and can not receive compensationTheir licenses and pocket card have been returned to the Commission.Their license expires 3 years after placed on inactive status.Renewal of an inactive license requires complying with CE requirements. Renewal does not mean reactivation.$50 reactivation fee.Trust MoneyBroker must promptly deposit within 7 business days after the acceptance of a contract of sale by both parties.*Must be separate from the brokers own accounts*Solely for trust money What are the terms of the boardBegin onJune 1st and end 4 years later, with reappointment or replacement.Members may be removed before the end of their term by the Governor in cases of incompetence or misconduct.terms are staggered 2 new 1st year, 2 new the 2nd year, 2 new the 3rd year and 3 new the 4th year, Licensee Sales Commision DisputesThe Real Estate Commission does NOT arbitrate disputes.Disputes May be submitted to association of REALTORS, or to the board of whom they are the same members, Maryland Association of REALTORS, or through other agencies Persons who must conform to the brokers act but are not required to hold brokerage license -Financial institutionsfor foreclosure-Lawyerswho do not regularly engage in the real estate business- Home builders- Agents of a licensed real estate broker property manager- Persons who negotiate the sale, lease or transfer of business when the sale does not include any interest in real property other than the lease of the property- Owners who subdivide and sell not more than six lots of their own unimproved property in one calendar year. If they or their family have owned the property for more than 10 years there is no limit.Maryland Realestate commission consists of 9 members,5 hold real estate licensechosen from each regionlicensed 10 year, reside 5 years.- Eastern Shore- Baltimore Metro area- Baltimore city- southern Maryland- western Maryland,4 are consumer membershave not been compensated by the commission in the last year and not a licensed realtor.Team namesDesignate themselves as a collective team so they should use words such as, team or group.They CAN NOT usereal estate, realty, brokeragein the name ClientLegal term principal

Summary ActionsAre hearings taken to protect the public quickly against imminent loss Penalties for violations of the brokers act The Commission has Statutory authority to impose penalties not to exceed.- $5,000 for the first proven violation of any title 17 provision-$15,000 and/or 2 years imprisonment for the second violation- $25,000 and/or 3 years imprisonment for the third or subsequent violation.Teams and Dual AgencyHas a separate form which must be presented to the buyer and seller.Persons making the designation of ICA's shall not be the Team Leader or member of the team. Should be from broker or designee of broker.Team SupervisionTeams are supervised by their- leader must have 3 years of license- branch manager- brokerAll simultaneous Qualifications for broker license- Good character- 18 years old- 135 hours + 3 hours real estate ethics (approved by commission)- Have been licensed and actively and lawfully for the past 3 years- Passed the broker pre-licensing exam Nonresidential property- 5 or more single family units- Zoned for commercial, industrial, or nonresidential- Zoned for but unimproved multi family property. Not single condominiums not agriculture Purpose of hearing board- May order a final and public hearing on a complaint- Reviews complaints and decides if they have a reasonable basis for disciplinary actions- Reviews claims against the guarantee fund- Meets publicly to hear licensee's responses on complaints- Then decides punitive actions if necessary Confidential informationCan be troublesome and long lasting with presumed buyer representation.Since the agents fiduciary responsibility of confidentiality continues even if client dies. Unless given written consent of prospect or it becomes public knowledge.

• types of broker companies- Single agency (do not perform dual agency)- Dual

agency- Hybrid Agency (will perform both dual and single agency) If discharged from a brokerA broker must- Mail to the licensee at the last known address notice- Submit written notice to the Commission- Return the license to the commission How much stock or ownership control may an affiliate have in a company?No more than50% may be held directly or indirectlyby salespersons or associate brokers otherwise they may be able to control the broker.Notice to buyerBrokers must include in each sales contract a written notice that buyers are protected by the Guarantee Fund in amount not exceeding $50,000