re U2 ch16-19

define agency relationship and then give 2 examples of the relationship not existing when a licensed broker is working with and representing an individual in a real estate transaction.

define a limited agent and describe when a broker can act as a limited agent.

explain when an agency relationship ends if the relationship is not fulfilled or completed.

If broker fails to perform duties and another broker does perform the duties, there still is

In-house agency relationship:

broker has____ responsibilities to client as in any other agency relationship

How long does an agency relationship last?
Until an agreed-upon termination by all parties
1 year and is then renewable for additional 6-month periods of time
1 year
Until the property is sold

A broker representing the seller or landlord in an agency relationship
must tell the buyer or tenant any adverse facts the broker knows about the property's physical condition.
must tell a prospective buyer why the seller is selling the property.
to help sell or lease the property, must tell the buyer or tenant the seller or landlord will take less than the asking price for the property.
has equal responsibility to any buyer or tenant as the broker does to the seller or landlord.

Which of the following is prohibited in an agency relationship?
A licensed broker refusing to cooperate with a subagent in a real estate transaction
A licensed broker compensating another broker who is not acting on behalf of a client
A licensed broker cooperating with another broker who is not acting on behalf of a client
A licensed broker agreeing to compensate a subagent in the real estate transaction

A broker representing the buyer or tenant in an agency relationship
must not tell the buyer or tenant any adverse facts about the real estate transaction.
must promote the interests of the seller or landlord.
must account for any money received from the buyer or tenant.
is obligated to find other properties to purchase or lease even after the buyer or tenant is under contract to buy or lease one property in case the contract is cancelled.

Which of the following is required after the termination of an agency relationship?
The broker must continue fulfilling any obligations agreed upon during the relationship.
The broker must account for any money or property received during the relationship.
The broker must disclose all information that had been deemed confidential during the relationship.
The broker must reimburse the client for any difference between listing price and actual selling price of the property.

In an agency relationship, the broker
represents both the seller and the buyer.
advises the client on all issues, so there is never a need for advice from someone else.
must explain the nature of the relationship to the client.
must seek additional offers to purchase even after an offer has been accepted by the seller in case that offer is withdrawn.

In an agency relationship, the broker
represents both the seller and the buyer.
must immediately present all offers to purchase to the seller.
must seek additional offers to purchase even after an offer has been accepted by the seller in case that offer is withdrawn.
advises the client on all issues, so there is never a need for advice from someone else.

A limited agent represents
only buyers and sellers with opposing interests.
only landlords and tenants with different interests.
landlords and tenants with either opposing or similar interests.
only buyers and sellers with similar interests.

Is a practitioner allowed to continuing practicing real estate if the practitioner becomes injured and must use a wheelchair to get around?
yes
no

Can a person who practices real estate without a broker's license have monetary sanctions ordered in addition to the imposed fines?

Can someone who has been issued an injunction for attempting to corrupt an appraiser be subject to a civil penalty of $15,000?

Can the Commission order a civil penalty against a practitioner who is convicted of possession of a controlled substance?

If a practitioner fails to pay court ordered child support, can his or her license be suspended?

Is responding to an inquiry a student makes of a broker a violation of a recruiting prohibition?

When a broker company is advertising online, is there any circumstance when the company's name is not required to appear in the electronic display?

Is a broker allowed to advertise using only his/her phone number?
yes
no

Does the Commission immediately have jurisdiction over any complaint against a real estate practitioner?
yes
no

Is a licensee required to report any criminal convictions to the Division of Consumer Protection within 30 days of conviction?
yes
no

Can a practitioner's license be suspended because he/she has been convicted of an offense other than illegal drugs or sexual conduct?
yes
no

Revoked license cannot be reinstated. Must wait _ years to reapply

Who notifies the Commission that a real estate practitioner is delinquent on court ordered child support payments?
Attorney General
Child Support Bureau
Department of Child Welfare
Child Protective Services

When the Commission sends the practitioner a notice regarding delinquent child support payments, which of the following options is available to the practitioner?
Promise the Commission in writing that the practitioner will begin making payments
Do nothing and have license placed on probationary status
Wait 20 days and then contact the Attorney General to request a hearing
Immediately make one payment

What consequence must be imposed on a practitioner who is in violation of an order to pay child support?
License suspension
License revocation
License on probation
Letter of reprimand

If a practitioner's license has been suspended for delinquent child support payments, how can the practitioner get the license reinstated?
Voluntarily begin making the support payments
Contact the Commission immediately to request reinstatement
Have payments withheld from the practitioner's income
Wait 20 days and apply for reinstatement

A person who performs the acts of a real estate broker without a broker's license commits
Class A infraction
an act of incompetent practice
an injunction violation
Class E infraction

What fund?
Established to pay for investigating and taking action against real estate and appraisal fraud
Administered by Attorney General
Funded by civil penalties against appraisers and appraisal management companies, by collections from brokers, appraisal management company registration fees

Which fund?

Established to pay claims against embezzlement and unlawful obtaining of money or property by brokers
Administered by Commission
Required minimum balance of $600,000
Surcharge applied to licensees to maintain minimum balance
Excess funds over $750,000 go to state general fund

Claims and judgments;
Payment not to exceed ___per judgment
Aggregate lifetime limit on one licensee of $_____

Claims and judgments:
Victim files claim in court against licensee
Victim must first exhaust all appeals and other related proceedings
Victim to notify Commission in____
Victim must file claim within __year of termination of other proceedings
Amount paid is actual loss and court costs, not _______

Payments:
Court investigates and issues payment order if conditions are met
Commission makes payments ____a year

Commission's roles:
When broker cannot be found,_____ is agent for service of process
When application is filed for payment from fund,______) is party defendant
When court orders payment from fund,____ becomes subrogate to licensee
When payment is made from fund,_____ suspends broker's license
When Commission enforces recovery fund related codes,___ __)_) office provides assistance

Which of the following is not covered by the Indiana Real Estate Recovery Fund when the act results in actual cash loss to the aggrieved person?

Claims against brokers for use of forgery to obtain property
Claims against brokers for obtaining property unlawfully
Claims against brokers for embezzlement of money

If the amount in the Indiana Real Estate Investigative fund exceeds $650,000 at the end of the fiscal year, what happens to the excess funds?
There are no excess funds at that dollar amount.
The excess funds go to the Attorney General's office for additional investigations.
The excess funds to into the state general fund.
The excess funds are invested to increase the funds available for investigations.

What is one purpose of the Indiana Real Estate Recovery Fund?
To recover funds used to impose sanctions against real estate practitioners
To cover claims against real estate practitioners for embezzlement of money that results in a cash loss to someone.
To recover funds used for real estate education and examinations
To cover claims against real estate licensees for practicing while unfit due to drug or alcohol additions

Why was the Indiana Real Estate Investigative Fund established?
To fund the Real Estate Commission's investigations of individuals practicing real estate without a license
To pay the Real Estate Commission to investigate complaints.
To fund investigations of illegal drug use by real estate brokers
To pay for real estate fraud investigations

What happens if the Real Estate Recovery Fund falls below the required minimum balance of $100,000?
An increase in licensure application fees is imposed to increase the funds.
Nothing happens because the minimum required balance is not $100,000.
A surcharge is collected from real estate licensees.
The existing balance is invested to increase the funds.

At the end of the fiscal year, what happens to the excess funds if the amount in the Indiana Real Estate Investigative fund exceeds $650,000?
The excess funds to into the state general fund.
There are no excess funds at that dollar amount.
The excess funds go to the Attorney General's office for additional investigations.
The excess funds are invested to increase the funds available for investigations.

Oftentimes, the selling or listing broker within an agency relationship will encourage other brokers to sell a particular property. As an incentive to the other broker(s), the listing broker is allowed by law to offer a portion of the commission to the selling broker. This is called

Brokers with waived continuing education requirements can remain affiliated with a managing broker for the sole purpose of referring business to a licensed broker. This broker is known to be in "______ _______"

(USPAP

If a real estate broker owns an interest in a property and wishes to sell the property, what must the broker do?
Sign an agency relationship with the broker company where the owner broker works
Disclose that the broker him/herself is a limited broker representing both the buyer and him/herself as the seller.
Disclose the broker's interest in the property and the fact that the broker holds a valid real estate license
Find another licensed broker to list the property