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47 Cards in this Set
- Front
- Back
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What is a broker? |
Any person, partnership, limited liability partnership, limited liability company, or corporation who, for a fee, sells, lists, leases, exchanges, negotiates, or otherwise deals in the real estate of others, or represents publicly that he does. |
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What is a salesperson? |
A licensed agent who is associated with a broker and may perform most of the acts of the broker on behalf of the broker. - A salesperson can never act independently of a broker. |
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What are the 8 exceptions to Ohio's real estate license requirements? |
1. A person who deals with their own property. (including partnerships, corporations, etc.) 2. A fiduciary who is duly appointed and acting in a fiduciary capacity. 3. A public official who acts in a official capacity. (sheriff's sale official) 4. Attorney-at-law who performs duties on behalf of his/her clients. 5. A person selling manufactured/mobile homes. 6. Brokering of the sale of business assets, not including the negotiation of the sale, lease, exchange, or assignment of any interest in real estate. 7. Out-of-state broker/agent who engages in the sale of commercial real estate. 8. An individual who works with residential rental property under the supervision of a broker and whose compensation is primarily salaried/hourly based. |
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What are the 4 main areas to consider when choosing a broker? |
1. Level of training 2. Broker services (staff support) 3. Compensation structure 4. Broker-salesperson relationship |
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What is an independent contractor? |
A self-employed salesperson paid on jobs completed rather than hours worked and responsible for setting their own hours and paying their own taxes. An independent contractor is hired to perform a specific assignment or complete a specific project but is free to accept or reject that particular assignment. |
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What is MLS (Multiple Listing Service)? |
A listing service whereby local member brokers agree to share listings and commissions on properties sold jointly. Members of the public may have access to the Multiple Listing Service but not to all of the features and content that a local member of the Board of REALTORS is able to access. |
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What is a Real Estate Licensee? |
A person licensed to practice real estate in Ohio. |
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What duties can an individual that works with residential rental property under supervision of the broker do? |
- Perform maintenance - Provide clerical/administrative support - Collect/accept rent or security deposits made to owner - Show residential rental units to tenants - Furnish published information - Supply applications and leases - Receive applications and leases for submission to the owner for approval. |
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What are the advantages of a real estate sales career? |
1. Compensation is based on commissions, so earnings are limited based on knowledge, experience, desire, and hard work. 2. You control your time. Very flexible. 3. Office time is kept to a minimum, contacting people is primary means of soliciting listings, showing properties, and making sales. 4. It's possible to own your own brokerage. |
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What are the disadvantages of a real estate sales career? |
1. Unsteady income 2. Seasonal/Cyclical swings 3. Most successful people work at least some evenings and weekends. |
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What is an auctioneer? |
A person with an auctioneer's license as well as a real estate license who can sell real estate through an auction. |
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What is the Education and Research Fund? |
A fund designed to offer scholarships and loans to students who are taking real-estate specific classes. |
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Foreign Real Estate Broker/Salesperson |
Any real estate broker/salesperson licensed to engage exclusively in real estate sales for land situated outside the state of Ohio. |
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Ohio Division of Real Estate |
Run by the Superintendent who is appointed by the Director of Commerce. |
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Ohio Real Estate Commission |
Consists of five members appointed by the Governor. Each serves a 5-yr term; 4 are practicing brokers; one is a non-broker, and no more than three can concurrently belong to the same political party. |
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What is reciprocity? |
The ability of a state department to give a real estate license to an applicant who received a real estate license in another state. Under certain arrangements, licensing testing, course study, or other requirements may be waived or modified. |
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What are the requirements in order for a salesperson to become a licensed broker? |
1. Been active as a full-time (30 hrs/week) salesperson for at least two of the preceding 5 years. 2. Participate in and completed at least 20 transactions (a listing/sale counts as 1/2, a rental is 1/4) 3. Completed additional education at an institution of higher education: Business Law, Business Economics, HR mgt, and Financial mgt. |
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What are the 5 requirements necessary to take the license exam? |
1. Non-education requirements 2. Pre-licensing education 3. Broker affiliation 4. Submitting a exam application 5. Scheduling the exam |
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What is the test format of the real estate exam? |
1. National portion - Focuses on RE law, principles and practices, finance, and appraisal. - 80 questions; 2-hour time limit. 2. State-specific portion - Covers Ohio law and practices; consists of 40 questions. - 1 hour limit. 70% on each part is required to pass, both parts must be passed to satisfy the licensure requirement. |
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What duties does the Ohio Division of Real Estate perform?
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- Administer license laws. - Issues licenses. - Issues Commission and other orders necessary to implement license laws. - Investigates written complaints against licensees. - Places brokers' licenses on deposit. - Audit brokers' records and trust accounts. - Subpoenas witnesses for investigations - Applies to appropriate courts of jurisdiction for injunctions to stop activities that violate real estate law. - Administers the Recovery Fund. |
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License Inactive |
The license status of any salesperson who returns his license to the Division of Real Estate, or whose broker does not want to maintain sponsorship of the licensee. A license may remain inactive indefinitely, as long as it is timely renewed and continuing education requirements are met. |
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License on Deposit |
A special license status that is available only to brokers who wish to return their broker's license to the Division of Real Estate in order to reactivate their license as a salesperson. A broker's license may remain on deposit indefinitely if timely renewed and continuing education requirements are met. Also a license status for any licensee who enters the military or whose reserve military status is activated. The license remains inactive until the new renewal date following honorable discharge from the military. |
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Real Estate Recovery Fund |
Used to satisfy unpaid judgments against real estate licensees for activities violating the license law that caused financial loss to the claimant. |
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Resigned |
The license status in which a license has been voluntarily and permanently surrendered to, or is otherwise in the possession of, the Division of Real Estate and Professional Licensing, is not renewed, and is not associated with a real estate broker. |
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What are the post-licensing requirements for a new licensee in the first 12 months? |
1. Complete an approved ten-hour post-licensing course. (No more than 8 hrs of post-licensing classes per day) 2. Provide evidence to the Division of Real Estate that the licensee satisfied this post-licensing course requirement. (Failure to submit proof for 10-hr post-licensing will result in license suspension.) |
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For new licensees, how many hours of CE do they need before when and after that when? |
All licensees must complete 30 hours of CE (continuing education) requirements on or before their 4th birthday after the date of initial licensure and on or before that birthday every 3 years until they reach the age of 70. |
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Revocation |
1. When the Real Estate Commission permanently withdraws a real estate agent's license. This is the status that is given when a licensee allows their license to remain in a state of suspension for more than 12 months. |
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Suspension |
The temporary withdrawal of a real estate agent's license for a certain and specified period of time. Usually reactivation is automatic the day after the suspension is lifted through fulfilling certain requirements by the person whose license has been suspended. 2. The automatic event that occurs when a licensee fails to renew a license on time, or turn in proof of post, or continuing education. |
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Voluntary Hold |
The license status in which a license is in the possession of the Division of Real Estate and Professional Licensing for a period of not more than 12 months. Caution should be exercised when placing a license on voluntary hold as doing so for longer than 12 months will cause the license to become resigned. |
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What are the main points of ethics in real estate? |
1. Carry out fiduciary responsibilities 2. Make proper disclosures 3. Do not take unfair advantage of people 4. Be honest with everyone 5. Treat everyone equally 6. Keep good documentation |
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What are the 6 most common pitfalls that can cause suspension/revocation of your RE license? |
1. Forgetting to put an expiration date on a listing agreement 2. Failing to give copies of contracts to parties as soon as they are signed. 3. Not submitting an agency disclosure form at the time an offer is presented. 4. Forgetting the Consumer Guide to Agency when prescribed by law. 5. Not disclosing material facts concerning listed properties. 6. Not keeping good records. |
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Condemnation |
Taking private property for public use, through the government's power of eminent domain. Also called appropriation. |
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Cost of Money |
The interest rate that consumers or businesses pay to use another's money for their own purpose. |
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Economic Base |
The main business or industry that a community uses to support and sustain itself. A good economic base is critical for home values. |
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Eminent Domain |
The government's constitutional power to take (appropriate or condemn) private property for public use, as long as the owner is paid just compensation. |
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Escheat |
When property reverts to the state after a person dies without a valid will and without heirs. |
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Immobility |
A physical characteristic of real estate referring to the fact that it cannot move from one place to another. |
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Inflation |
An increase in the cost of goods or services; or too much money chasing too few goods. |
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Inverse Condemnation |
When a landowner asks the government to take their land or loosen restrictions so that the owner may use their own land. |
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Land Use Controls |
Public/Private restrictions on how land may be used (e.g., zoning) |
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Police Power |
The constitutional power of state and local governments to enact and enforce laws that protect the public's health, safety, morals, and general welfare. |
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Taxation |
The process of a government levying a charge on people or things. |
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Business cycles |
General swings in business activity, resulting in expanding and contracting activity during different phases of the cycle. |
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Housing cycles |
General swings in real estate activity, resulting in increasing or decreasing activity and property values during different phases of the cycle. |
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What are the reasons for a seller's market? |
- People moving into a particular area. - Lack of new construction (perhaps from previous buyer's market) - High construction costs for labor/materials - Good economic conditions (e.g. new factory opening, increase in local employment thus lowering interest rates) |
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What are the reasons for a buyer's market? |
- Population or demographic shifts away from an area - Overbuilding by the construction industry - Bad economic conditions (e.g., factory closing, layoffs by a local employer). |
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What are federal governmental factors that influence real estate? |
1. Fiscal policy 2. Monetary policy 3. Secondary mortgage markets 4. Government programs |
