Questions and Answers
What is required for an act defined as a broker activity?
What is included in being 'in the business' regarding promissory notes secured by real estate?
How many transactions can a person conduct in a year to remain exempt from real estate broker licensing?
Which statement is true regarding mineral oil and gas leases for resale without licensing?
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What can a person do to avoid licensing when buying and selling promissory notes?
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Under what condition must an officer of a corporation be licensed as a broker?
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What allows a person to deal in their own real property without needing a license?
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Which of the following is NOT a method to avoid licensing?
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What limitation exists for a person buying real property sales contracts to avoid needing a broker's license?
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What is true regarding the expectance of compensation in broker activities?
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Study Notes
Licensing Requirements Overview
- Broker activities require a license if performed for or in expectation of compensation.
- Engaging in the buying and selling of promissory notes secured by real estate falls under licensing if it involves a specific volume of transactions.
Promissory Notes and Real Estate Transactions
- Performing "in the business" of buying/selling real property sales contracts includes acquiring or exchanging eight or more contracts.
- Individuals may be exempt from licensing as a real estate broker if they engage in no more than 35 transactions in a year.
Mineral Oil and Gas Leases
- Individuals can buy up to seven mineral oil and gas leases or options for resale without needing a license.
Avoiding Licensing in Note Transactions
- To avoid licensing when buying and selling promissory notes, limit the number of annual transactions or refuse compensation.
Corporate Officers and Licensing
- A corporate officer must obtain a broker’s license if engaging in a significant number of transactions or receiving special compensation for leasing/selling corporate properties.
Appointing Unlicensed Representatives
- Individuals can appoint an unlicensed person to act on their behalf for their own property dealings under a power of attorney.
Conditions Requiring a Real Estate License
- Required licensing applies to principals managing high volumes of property transactions, attorneys taking exclusive listings, and those acting under a power of attorney.
Exemptions from Licensing Requirements
- Exemptions include individuals acting under court orders, trustees conducting deed of trust sales, and savings bank employees.
Additional Exemptions
- Individuals making collections on ten or fewer loans or performing strictly clerical duties may also be exempt from licensing requirements.
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Description
This quiz focuses on the requirements for obtaining a broker license as outlined in Chapter 5. It covers critical aspects of broker activities, licensing exemptions, and the buying and selling of promissory notes secured by real estate. Test your knowledge on these essential legal concepts.
