Presentation Transcript

1. TODAY’STOPICS
2. The Auditor Dropped In
3. Meet An Investigator
4. Come See Commissioners
5. Featured in the Newsletter
6. Find a New Line of Work
7. LICENSE LAW The Auditor Dropped In 10 15 20 25 5 5 10 15 20 25 Meet An Investigator 5 10 20 25 15 Come See Commissioners 10 15 25 5 20 Featured in the Newsletter Find a New Line of Work 25 5 15 20 10
8. Tim is an associate broker and does a little property management “on the side.” Since this is not through Tim’s company, can the property owner pay a fee directly to Tim? Answer
9. No way! All compensation for real estate activities must be paid through his broker. §34-27-36(a)(14) Back to Board
10. Jay Salesperson receives $1,000 in cash for earnest money on an offer to purchase. Jay takes it to Betty Broker who staples the bills to the contract and puts it in the company safe. After all, it is okay to keep it until the offer becomes a contract, isn’t it? Answer
11. It would be..... except not in cash! Go to the bank! Now! Deposit it! Now! 790-X-3-.03(3) Back to Board
12. Little Joe both listed and sold the house at 123 Ponderosa Drive. What are his responsibilities regarding the net sheet? Answer
13. What are you waiting for? Give it to both the buyer and seller. Who else is going to do it? 790-X-3-.04 Back to Board
14. As directed by Broker Jim, Bookkeeper Janie has been paying the rent and utilities out of the escrow account for the last 6 months. When the AREC auditor arrives, Janie quickly shreds the current contracts because the earnest money for them is not in the escrow account. Anybody in trouble here? Answer
15. Broker Jim...you are. What the heck were you thinking? §34-27-36(a)(8)(a)(b)(c) §34-27-36(a)(31) Back to Board
16. Judy owns a property management company for which she hires a broker. Judy does not have a real estate license but as the owner, she solicits renters, works out the terms of the leases, signs them and collects rents. Has the owner violated License Law? Answer
17. Judy is not a very smart owner. She is guilty of engaging in real estate activities without a license. There is no limit on the fine. OMG! It can be an amount equal to the gain or economic benefit derived from the violation. §34-27-36(c)(1)(2) Back to Board
18. Jane and Dave received a copy of their signed contract for the first time at closing. Did that satisfy the requirements of §34-27-36(a)(10)? Answer
19. Probably not. That does not sound like “reasonable promptness” to me. §34-27-36(a)(10) Back to Board
20. To induce Buyer Hoss to buy a 3000 acre ranch, Seller Hopsing agreed to throw in a 100 head of cattle and a new Mercedes. They didn’t think about telling the mortgage lender so Broker Jones didn’t say anything to the mortgage lender either. Should Broker Jones get a call from an AREC investigator? Answer
21. He may get several calls, plus a formal complaint! §34-27-36(a)(21) Back to Board
22. Steve Salesperson formed an LLC and asked his Qualifying Broker to disburse his commissions to his LLC. Can the broker do this? Answer
23. Well, of course. Isn’t that what LLC’s are for? §34-27-36(a)(21) Back to Board
24. Commission investigator, Mr. Kelly, called Broker Sassy to ask her questions regarding a recently received complaint. Broker Sassy told Mr. Kelly that she and the purchaser were working out their problems and specific information about the transaction was confidential. What happens to Broker Sassy now? Answer
25. Investigator Kelly will be going to visit Broker Sassy and then filing a formal complaint if she is not forthcoming with the requested information. §34-27-36(a)(28)(29) Back to Board
26. Joan is licensed with Thompson Realty. Joan decides to sell her house and advertises it “For Sale By Owner.” What will the Commission investigator have to say about this? Answer
27. Nothing! Fine with us as far as advertising goes. However, Joan must abide by all other provisions of License Law. 790-X-1-.03(2) Back to Board
28. Is it against the law for Carmen to say she took the real estate examination when she did not? Answer
29. Only if she says it to the Real Estate Commission. §34-27-36(a)(1) Back to Board
30. Jethro moves away and asks Broker Bill to sell his house. Jethro just wants enough to pay the mortgage plus $5,000 so Bill can keep anything above that. Bill can make some extra money and Jethro gets his house sold. This seems like a good deal for both. Any problem with this? Answer
31. Oh yes...there is a big ‘ole problem. This is a net listing and they are illegal. §34-27-36(a)(20) Back to Board
32. Sally is transferring from Super Realty to XYZ Realty. She has 5 listings, one of which is her cousin Jake’s house. The broker at Super Realty told Sally she could not take her listing with her. Sally convinces Jake to cancel his listing and transfer it to the XYZ company where she sells his house. Has a violation of License Law occurred? Answer
33. Yep, “Come See Commissioners” §34-27-36(a)(13) Back to Board
34. Mr. Kleen Carpet Service has an agreement with Trent Realty where Trent Realty receives $50 for each buyer or seller who uses Mr. Kleen. Since Mr. Kleen is a good reliable carpet cleaning service, this seems like a great arrangement for both. Agree? Answer
35. Ever heard of a kickback or rebate? Not good. §34-27-36(a)(12) Back to Board
36. Salesperson Jill had 2 open houses scheduled on the same day so she paid her unlicensed cousin Brenda to hold one of them for her. Jill carefully explained to Brenda how to show the house to generate interest but told Brenda if anyone wanted to make an offer to call her because only a licensed person can write the offer. Is Jill’s broker going to be proud of her? Answer
37. Maybe, but the Real Estate Commission is not. §34-27-36(a)(17) 790-X-1-.04 Back to Board
38. Is the fine for writing the Commission a bad check always $250? Answer
39. What makes you think that? It can be anywhere from $100 to $2,500 §34-27-36(a) Back to Board
40. Prospective Buyers Billy and Shirley Smith ask the listing agent, John, if the roof leaks or has ever leaked. Although John knows that it leaks, his seller has instructed him not to disclose it so John tells the buyers that he doesn’t think so. What has John just done? Answer
41. Besides lying, John has made a material misrepresentation. §34-27-36(a)(3) Back to Board
42. Broker George drives by a nice house that is vacant. After checking with neighbors, he finds the owners have moved out of town. He places a sign in the yard and gets an offer two weeks later. He calls the owner and tells him he has a buyer if he wants to sell the house. Has George violated License Law or is he just the seller’s hero? Answer
43. Asking forgiveness later instead of permission first does NOT work when it comes to License Law violations. Get permission before placing a sign on someone’s property. §34-27-36(a)(9) Back to Board
44. What does “prominently displayed” mean regarding advertising? Answer
45. Use common sense! Can you read that small print you just used for your company’s name? §34-27-36(a)(15) Back to Board
46. Susie is a salesperson for Risky Real Estate. Another salesperson with Risky lists a house at 849 Pleasant Ave. Susie and her husband decide they want to buy that house so what disclosure, if any, has to be made to the owner? Answer
47. You do know that Susie has to disclose to the owner her intention to acquire the property, don’t you? 34-27-36(a)(18) Back to Board
48. Broker Hall was fined $2,500 by the Commission for paying for repairs out of his property management escrow account. Broker Hall was given 30 days to pay the fine but he did not pay it. Attempts to collect it have failed. Now what? Answer
49. Duh! The Commission will file another formal complaint for failing to obey an order of the Commission. Broker Hall probably won’t have a license much longer. §34-27-36(a)(19) Back to Board
50. After having been licensed for 10 years, Sam got into a little scrape with the law. Although Sam said he was innocent of first degree theft, to avoid a very public trial, he pled guilty, received a fine, suspended sentence, and 500 hours of community service. What will the Commission do about this? Answer
51. File a formal complaint and let Sam come visit Commissioners during which time a hearing will be conducted and possible disciplinary action taken. §34-27-36(a)(23)(a) Back to Board
52. Broker Griffin of XYZ Realty was sued by Buyer Jackson for misrepresentation. As a result, a court judgment was entered against Broker Griffin that he did not pay. The recovery fund ultimately paid it. What is the Real Estate Commission going to do about this? Answer
53. File a formal complaint, hold a hearing and most likely relieve Broker Griffin of his license. §34-27-31(e)(6) Back to Board
54. Broker Jarrod Barkley was served notice to appear for a hearing on a formal complaint filed against him by the Commission. He failed to appear. What now? Answer
55. Commissioners take a dim view of this! The Administrative Procedures Act allows the Commission to proceed with hearing the case in his absence and take disciplinary action if Jarrod is found guilty of the charges in the complaint. Back to Board
56. Upon completion of a hearing, the Commission found Broker Brown guilty of violating License Law and revoked her license. Since she was not represented by an attorney, Broker Brown decides to hire one and appeal to circuit court so she can get direction on how to testify and to also get in additional information about her case. Is this a good plan? Answer
57. Not really, the appeal is confined to the Commission hearing record and is without a jury. §34-27-38(d) Back to Board