Questions and Answers
What must broker compensation be?
What is required for someone to be defined as a broker?
Which of the following acts does NOT require a real estate license?
Which action for compensation would require a real estate license?
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Which actions require a real estate license for compensation?
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Which of the following actions performed for compensation requires a real estate license?
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Under which condition must a principal be licensed as a real estate broker?
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Which of the following is NOT an act that requires a real estate license?
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Which of the following acts would require a real estate license?
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Which scenario indicates a person must have a real estate license?
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Study Notes
Broker Compensation
- Broker compensation must be monetary and can be a percentage of the sale price or loan.
- Both requirements must be met for proper broker compensation.
Broker Definition
- A broker is defined by the necessity of compensation or the expectation thereof.
- They must also act on behalf of another party.
Activities Not Requiring a License
- Soliciting purchasers for real property does require a license.
- Negotiating the sale or exchange of real property or a business opportunity requires a real estate license.
Actions Requiring a License
- Assisting in filing applications to lease government land mandates a real estate license.
- Negotiating leases and soliciting property owners also requires a real estate license.
License Requirement for Loan-Related Actions
- Real estate licenses are necessary for soliciting borrowers and lenders for loans secured by real property.
- Collecting mortgage payments for lenders also requires licensure.
Acts Requiring a License
- Offering to sell, exchange, or buy promissory notes secured by a lien on real property all require a real estate license.
Principal Licensing
- A principal must be licensed if engaging in leasing, buying multiple real estate loans for resale, buying properties to resell for profit, or providing financing on owned property.
Advance Fees
- An advance fee is a charge for promoting the sale or lease of real property.
- It is not a payment for costs incurred or a loan against commissions; commissions are paid upon securing a buyer.
Exceptions for Advance Fees
- Advance fees do not apply to costs associated with video production, magazine advertising, general newspaper advertising, or sales brochures.
Collecting Advance Fees
- Advance fees for securing loans can be collected by real estate brokers, banks, lenders licensed by the Department of Corporations, or any of these entities.
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Description
Test your knowledge on the activities requiring a license in real estate as covered in Chapter 4. This quiz addresses broker compensation and definitions, ensuring you understand the essential concepts for licensing. Get ready to assess your grasp of real estate regulations.
