Real Estate License Types

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does an 'active license' refer to in real estate?

A license that is currently valid and operational (correct)

A license that is pending renewal

A license that has been temporarily suspended

A license that has been permanently revoked

What is an 'advance fee' in the context of real estate transactions?

A fee required for mortgage processing

A fee claimed for promoting the sale or lease of real estate (correct)

A fee charged for closing services

A fee that is only received after the sale closes

What does the term 'aggregate limit' mean in insurance contracts?

A limit on individual claims in real estate transactions

A restriction on claims made by licensed brokers

A cap on the fee an insurer can charge for services

A limit on the insurer's overall liability for multiple losses (correct)

What distinguishes an 'associate broker' from a regular broker?

An associate broker is licensed under a responsible broker without supervisory duties Signup and view all the answers

In real estate, what does 'auction' refer to?

A public solicitation for property in which bids are invited Signup and view all the answers

What characterizes a 'branch office' in real estate?

It must be separate from the principal office and supervised by a responsible broker Signup and view all the answers

Which of the following statements about the role of an auctioneer is correct?

An auctioneer has the right to accept offers to purchase Signup and view all the answers

What was the effect of Laws 2017, ch. 166, § 2 on specific terms within real estate regulations?

It repealed a previously established term or regulation Signup and view all the answers

Which term is defined as a person who receives an offer in a transaction?

Offeree Signup and view all the answers

What does the term 'prior acts coverage' refer to in insurance?

Coverage for claims made during a current policy period for acts prior to the policy period Signup and view all the answers

Which of the following is NOT included in the definition of 'material to the transaction'?

Health issues of previous occupants Signup and view all the answers

What is the primary function of a 'property management' role?

Managing real estate for compensation for another Signup and view all the answers

Which of the following entities qualifies as a 'person' under the defined terminology?

Public and private entities, including corporations Signup and view all the answers

What does 'office' refer to in the context provided?

A responsible broker's place of business where records are kept Signup and view all the answers

What is a 'qualified insurance carrier' required to maintain?

An A.M. Best rating of 'B' or better Signup and view all the answers

Which of the following activities qualifies as a 'real estate activity'?

Negotiating the sale, exchange, or lease of real estate Signup and view all the answers

What is an 'option' as defined in the context provided?

A right to acquire real estate at a specified price Signup and view all the answers

Which activity is specifically NOT classified under 'real estate activity'?

Performing routine maintenance on a property Signup and view all the answers

What does the term 'Buyer' encompass in real estate transactions?

Any person attempting to acquire real estate, including tenants. Signup and view all the answers

What is the role of a 'Buyer's agent' in a real estate transaction?

To act on behalf of the buyer in negotiations. Signup and view all the answers

What does 'Compensation' refer to in the context of real estate?

Any payment or item of value expected for real estate activities. Signup and view all the answers

Which situation defines a 'Cooperative transaction' in real estate?

A transaction involving licensees from multiple real estate companies. Signup and view all the answers

What constitutes an 'In-house real estate transaction'?

A transaction where both parties have a relationship with the same licensee. Signup and view all the answers

Which statement most accurately describes 'Errors and omissions insurance'?

Liability insurance covering mistakes in real estate transactions. Signup and view all the answers

What is meant by 'Grace period' in relation to a real estate license?

The period following expiration in which renewal is still allowed. Signup and view all the answers

What does 'Distance education course' imply?

Instruction occurring when teachers and students are separated by distance or time. Signup and view all the answers

Which of the following defines 'Material to the transaction'?

Factors important to decision-making in real estate deals. Signup and view all the answers

Which of the following accurately describes a 'Licensee'?

A person who has met the requirements for licensure as specified by the commission. Signup and view all the answers

What defines a 'real estate company'?

A domestic or foreign business entity licensed to conduct real estate activity in Wyoming. Signup and view all the answers

Who is considered a 'regular employee' in real estate?

Individuals employed by an owner on a salaried basis, subject to income tax withholding. Signup and view all the answers

What role does a 'responsible broker' play in a real estate company?

They supervise the activities of all licensees associated with the company. Signup and view all the answers

Which of the following best defines a 'short term rental'?

Rental of real estate for thirty-one days or less. Signup and view all the answers

What describes a 'seller's agent' in real estate transactions?

A licensee authorized to represent and act for the seller. Signup and view all the answers

What does 'single-limit liability' refer to?

The highest amount payable for damages from a single wrongful act. Signup and view all the answers

What does a 'transaction manager' do?

Supervises a transaction without being involved in it. Signup and view all the answers

What is meant by a 'written listing agreement'?

A real estate employment agreement that outlines authority and consent. Signup and view all the answers

What is the definition of 'seller' in real estate terms?

Anyone attempting to sell or exchange real estate, including landlords. Signup and view all the answers

Study Notes

License Types

Active license: A real estate license that is in good standing and not inactive, suspended or revoked.
Expired license: A license whose period of licensure has ended.
Inactive license: A license that has been placed on inactive status at the licensee's request, but is not expired, terminated, suspended, or revoked.
Suspended license: A license that has been temporarily suspended by the issuing authority.
Surrendered license: A license that has been voluntarily terminated or surrendered by a licensee who was under investigation or named in a formal administrative complaint.

Key Definitions

Advance fee: A fee charged for listing, advertising, or offering real estate for sale or lease, primarily to promote the sale or lease of real estate.
Associate broker: An individual licensed by the commission under a responsible broker who is qualified as an associate broker but does not have supervisory responsibilities.
Auction: A method of sale at a predetermined time and date, involving bids from prospective purchasers, either in person or electronically.
Branch office: An office location of a real estate company separate from the principal office and supervised by a responsible broker.
Buyer: A person attempting to acquire real estate, including tenants in rental, leasing, or management of real estate.
Buyer's agent: A licensee authorized to represent and act on behalf of the buyer in a real estate transaction.
Compensation: Any money, item of value, or payment provided, promised, or expected for the performance of a real estate activity.
Cooperative transaction: A real estate transaction where licensees from more than one real estate company participate, regardless of agency representation.
Customer: A party to a real estate transaction who has no intermediary or agency relationship with any licensee involved.
Designated licensee: A licensee designated in writing by a responsible broker to serve as an agent for a seller or buyer, or as an intermediary in a real estate transaction.
Distance education course: A course where instruction takes place when the teacher and student are not in a traditional classroom setting and are separated by distance or time.
Errors and omissions insurance: Professional liability insurance providing coverage for errors and omissions made during real estate transactions.
Funds holder: A title company, closing agent, or attorney licensed in the state who holds items of value in trust for parties to a real estate transaction.
Grace period: The time period from January 1 to March 1 of each year during which an expired license may be renewed.
Group program: An insurance policy from an insurer selected by the commission through a competitive process as specified in the act.
In-house real estate transaction: A real estate transaction where the buyer and seller have an agency, intermediary, or customer relationship with licensees from the same real estate company.
Interest in a transaction: Any advantage, benefit, or profit, other than agreed-upon compensation, that a licensee may realize from a purchase, sale, or lease of real estate.
Intermediary: A licensee who assists one or more parties throughout a real estate transaction without acting as an agent or advocate for any party.
License: The document issued by the commission certifying that a person has fulfilled all requirements for licensure under the act.
Licensee: Any person issued a license by the commission.
Like-license: A license from another jurisdiction that is at an equivalent level of experience and responsibility as a comparable Wyoming license.
Material to the transaction: Having importance, relevance, or consequence to a person making a decision regarding the purchase, sale, or lease of real estate. This does not include psychological considerations (health issues, suicide, murder, etc).
Offer: Any inducement, solicitation, or attempt to encourage a person to acquire an interest in real estate for gain or profit.
Offeree: The person to whom an offer is made.
Offeror: The person making an offer.
Office: A responsible broker's place of business where records are maintained.
Option: A right granted by an owner to another person to purchase or lease the owner's real estate at a specific price.
Owner: A person with the right to convey an ownership or leasehold interest in real estate.
Person: Individuals, corporations, partnerships, associations, or other public or private entities, foreign or domestic.
Prior acts coverage: Insurance coverage for any claim made during a current policy period if the act or acts causing the claim occurred before the inception of the current policy period.
Proof of coverage: A certificate of insurance demonstrating coverage of a policy equal to or exceeding the group coverage contracted for by the commission.
Property Management: The act of managing real estate for compensation for another, including rent collection, maintenance, and accounting of fees received.
Qualified Insurance Carrier: An insurance carrier that meets the following criteria:
- Provides the group plan of Errors and Omissions insurance as provided in the act.
- Maintains an A.M. Best rating of 'B' or better and a financial size category of class VI or higher.
- Is authorized by the Wyoming insurance department to do business in Wyoming.
- Is qualified and authorized by the Wyoming insurance department to write policies of errors and omissions insurance in Wyoming for the policy term.
- Has entered into a contract to provide the group plan of Errors and Omissions insurance in conformity with the contract, the act, applicable rules of the commission, and other applicable law.
- Collects premiums, maintains records, and reports names of those insured and a record of claims to the commission on a timely basis.
Real Estate: Leaseholds, as well as any other interest or estate in land, corporeal, incorporeal, freehold or nonfreehold, situated in Wyoming or elsewhere (excluding mineral lands, rights, or leases).
Real Estate Activity: When an individual performs any of the following for another and for compensation:
- Sells, exchanges, purchases, rents, manages, or leases real estate.
- Offers to sell, exchange, purchase, rent, manage, or lease real estate.
- Negotiates, offers, attempts, or agrees to negotiate the sale, exchange, purchase, rental, or leasing of real estate.
- Lists, offers, attempts, or agrees to list real estate for sale, lease, or exchange.
- Auctions, offers, attempts, or agrees to auction real estate.
- Collects, offers, attempts, or agrees to collect rent for the use of real estate.
- Advertises or holds himself out as being engaged in the business of buying, selling, exchanging, auctioning, renting, or leasing real estate.
- Engages in the business of charging an advance fee in connection with any contract undertaken to promote the sale, auction, or lease of real estate.
- Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or improvements thereon.
- Assists or directs in the procuring of prospects calculated to result in the sale, exchange, lease, or rental of real estate.
- Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, lease, or rental of real estate.
- Deals in timeshares.
- Provides a broker's price opinion.
Real Estate Company: A domestic or foreign business entity authorized to conduct business in Wyoming and licensed by the commission to conduct real estate activity.
Real Estate Transaction (or Transaction): Any real estate activity as defined in the act.
Regular Employee: An individual employed by an owner of real estate on a salaried basis or paid wages that are not performance-based, subject to income tax withholding and FICA, whose duties are performed in the ordinary course of the owner's business or the management or operation of the owner's investments.
Responsible Broker: An individual with an active responsible broker's license who is responsible for the supervision of licensees associated with the real estate company or a responsible broker who operates a single license office or sole proprietorship.
Retroactive Date: The date when the first real estate errors and omissions coverage was effective on a claims-made basis and since which time the insured has been continuously insured.
Salesperson: An individual qualified as a salesperson under the act and licensed by the commission under a responsible broker.
Seller: A person attempting to sell or exchange real estate, including landlords in rental, leasing, or management of real estate.
Seller's Agent: A licensee authorized to represent and act for the seller in a real estate transaction.
Short Term Rental: The rental of real estate for 31 days or less.
Single-Limit Liability: The maximum limit payable, per licensee, for damages arising from the same error, omission, or wrongful act.
Subagent: A licensee authorized to represent and act on behalf of a real estate company in performing real estate activity for a principal. A subagent owes the same obligations and responsibilities to the principal as a responsible broker.
Time Share: An arrangement, whether by membership agreement, lease, rental agreement, license, use agreement, or other means, whereby the purchaser receives a right to use or a freehold interest in accommodations, facilities, or other real estate for a specific period of time during any given year, but not necessarily for consecutive years, and which extends for more than one year.
Transaction Manager: A licensee designated in writing by the responsible broker to supervise a transaction. The transaction manager is not involved in the transaction and has the duties of an intermediary while supervising.
Written Listing Agreement: Any real estate employment agreement, including buyer's brokerage agreements, seller's listing contracts, and property management contracts. The authority created under a written listing agreement may not be assigned to another person without the written consent of all parties.
Broker's Price Opinion: An estimate prepared by a licensee that details the probable selling price of real estate and provides information about the real estate's condition, market, neighborhood, and comparable sales.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of different real estate license types and key definitions related to the industry. This quiz covers active, expired, inactive, suspended, and surrendered licenses, as well as important terms like advance fees and associate brokers. Perfect for real estate students and professionals alike!