REAL ESTATE RHODE ISLAND LAW
EXAM TEST QUESTIONS WITH
VERIFIED ANSWERS
RealHestateHrecoveryHactH-HCORRECTHANSWERS-
DeptHofHbusinessHregulationHestablishesHthisHaccountH
CoversHanyoneHaggrievedHbyHanHact,Hmisrepresentation,HtransactionHorHconductHofHaHlicensedHrea
lHestateHbrokerHuponHtheHgroundsHofHfraud,HmisrepresentationHorHdeceitHmayHrecoverHnoHmoreHth
anH50000HperHoneHlicenseH
Can'tHbeHusedHtoHreimburseHanyHbrokerHorHsalespersonH
AgentsHpayHaHfeeHforHtheHdepositHinHtheHrealHestateHrecoveryHfundHwhenHtheyHfirstHgetHtheirHlicens
eH
DecH31HofHanyHyearHifHtheHrecoveryHfundHisHlessHthanH200000HagentsHpayHaHfeeHofH$25HwhenHrene
wingHtheirHlicenseH
Agents/HbrokersHmustHpayHbackHtheHrecoveryHfundHplusH12%HaHyear
RealHestateHcommissionH-HCORRECTHANSWERS-9HpeopleHatHleastHoneHfromHeachHcountyH
CitizenHofHtheHstateHforHatHleastH10HyearsH
3HcurrentHlicensedHbrokersHwhoHhaveHbeenHbrokersHforHatHleastH5HyearsHinHtheHstateH
4HhaveHtoHbeHmembersHofHtheHgeneralHpublic
,WhoHisHexemptHfromHlicensing?H-HCORRECTHANSWERS-
1.HAnyHperson,Hpartnership,Hassociation,HcorporationsHorHanyHofHtheirHemployeesHwhoHwantHtoHac
quire,Hlease,HsellHofHdealHinHrealHestateHthatHwillHbeHheldHforHinvestmentH
1.HSameHasHaboveHjustHanyHowner,Hlessee,HorHlessor
IfHyouHviolateHtheHrulesHandHregulationsHhowHmuchHmoneyHcanHtheHdirectorHlevyHanHadministrativ
eHpenalty?H-HCORRECTHANSWERS-1000
ErrorsHandHomissionsHinsuranceH-HCORRECTHANSWERS-
InHorderHtoHhaveHaHlicenseHyouHmustHhaveHandHmaintainHerrorsHandHomissionsHinsuranceHcovering
HallHbusinessHactivities
MustHobtainHtheHinsuranceHindependentlyH
DeptHofHbusinessHregulationHdetermineHtheHtermsHandHconditionHofHcoverageH
CertificateHofHcoverageHmustHbeHfiledHwithHtheHdeptHofHbusinessHregulationHbyHtheHannualHlicense
HrenewalHdateH
MinHrequirementsHforHE&OHInsurance:H
IndividualHlicensee-HinsuranceHneedsHtoHbeHatHleastH50,000HandH150,000HaggregateH
ForHbrokersHblanketHpolicy:H
TheHminimumHcoverageHneedsHtoHbeHatHleastH50,000HxHamountHofHsalespersonsHandH150000HxHA
mountHofHsalespersonsH
,BrokersHblanketHpolicyHneedsHtoHbeHinHtotalHofH300000HandH1HmillionHdollarsHinHoneHcaseHatHanyHti
me
HowHtoHloseHyourHlicenseH-HCORRECTHANSWERS-MisrepresentationH
FraudH
FalseHpromiseH
MisleadingHadvertisingH
FailingHtoHdepositHmoneyHintoHescrowH
FailingHtoHkeepH3HyearsHofHrecordsH
ActingHasHaHdualHfacilitatorHwithoutHconsentH
PlacingHforHsaleHsignHwithoutHconsentH
FailingHtoHshowHaHcopyHofHrecordsH
NotHwritingHaHterminationHdateHofHcontractH
InducingHsomeoneHtoHbreakHcontractHsoHtheyHcanHuseHmeHasHaHsalesperson
AcceptingHmoneyHforHaHreferralH
NotHdisclosingHintentionsHtoHaHclientH
ConvictedHofHcriminalHfelonyH
ViolatingHrules/regulationsH
BrokerHnotHoverseeingHsalespersonH
RefusingHtoHprovideHinfoH
SolicitingHrealHpropertyH
PayingHorHacceptingHmoneyHforHreferralH
FailingHtoHhaveHlistingHagreementsHinHwritingH
NoHnetHlistingH
NegotiatingHaHpropertyHwhenHsomeoneHisHalreadyHinHcontractHwithHanotherHagentH
, AcceptingHanHagencyHandHfailingHtoHmakeHanHeffortHtoHsellHpropertyH
AdvisingHagainstHuseHofHanHattorneyH
RepresentingHlenders/partyHinterestHofHproperty'sHaHfalseHsalesHcontractH
ComminglingHescrowHmoneyH
AdvertisingHpropertyHofHanotherHinHaHmannerHisHbeingHmadeHbyHaHpartyHnotHengagedHinHrealHestat
eHbusinessH
Can'tHadvertiseHtheHpropertyHunderHanyoneHelse'sHnameHbutHmineH
NoHadvertisementsHinHpublicationsHcontainingHonlyHaddress,HphoneHnumberH
HaveHtoHhandHoverHallHrecordsHtoHbrokerH
GivingHcommissionHtoHsomeoneHwhoHisn'tHaHrealHestateHlicenseeH
SolicitingHtheHsaleHofHaHpropertyHbecauseHaHspecificHraceHisHinHtheHneighborhoodH
BrokerHneedsHtoHtellHtheHdirectorHwithinH10HdaysHthatHheHorHsheHisHleavingHtheHofficeH
TheHdirectorHcanHpenalizeHupHtoH1000HforHanyHofHtheseHviolationsHt
EscrowHdepositHrulesH-HCORRECTHANSWERS-
MustHmaintainHanHescrowHaccountHunderHprincipalHbrokerH
CanHnotHcommingleHdepositHmoneyH
NeedHtoHkeepHdeposit/withdrawalHrecordsHforH3HyearsH
Office/adminHneedsHtoHkeepHaHmonthlyHreportHofHescrowHaccountH
MayHbeHappliedHtoHtheHcommissionHwhenHearnedHbyHtheHlistingHcompanyH
EXAM TEST QUESTIONS WITH
VERIFIED ANSWERS
RealHestateHrecoveryHactH-HCORRECTHANSWERS-
DeptHofHbusinessHregulationHestablishesHthisHaccountH
CoversHanyoneHaggrievedHbyHanHact,Hmisrepresentation,HtransactionHorHconductHofHaHlicensedHrea
lHestateHbrokerHuponHtheHgroundsHofHfraud,HmisrepresentationHorHdeceitHmayHrecoverHnoHmoreHth
anH50000HperHoneHlicenseH
Can'tHbeHusedHtoHreimburseHanyHbrokerHorHsalespersonH
AgentsHpayHaHfeeHforHtheHdepositHinHtheHrealHestateHrecoveryHfundHwhenHtheyHfirstHgetHtheirHlicens
eH
DecH31HofHanyHyearHifHtheHrecoveryHfundHisHlessHthanH200000HagentsHpayHaHfeeHofH$25HwhenHrene
wingHtheirHlicenseH
Agents/HbrokersHmustHpayHbackHtheHrecoveryHfundHplusH12%HaHyear
RealHestateHcommissionH-HCORRECTHANSWERS-9HpeopleHatHleastHoneHfromHeachHcountyH
CitizenHofHtheHstateHforHatHleastH10HyearsH
3HcurrentHlicensedHbrokersHwhoHhaveHbeenHbrokersHforHatHleastH5HyearsHinHtheHstateH
4HhaveHtoHbeHmembersHofHtheHgeneralHpublic
,WhoHisHexemptHfromHlicensing?H-HCORRECTHANSWERS-
1.HAnyHperson,Hpartnership,Hassociation,HcorporationsHorHanyHofHtheirHemployeesHwhoHwantHtoHac
quire,Hlease,HsellHofHdealHinHrealHestateHthatHwillHbeHheldHforHinvestmentH
1.HSameHasHaboveHjustHanyHowner,Hlessee,HorHlessor
IfHyouHviolateHtheHrulesHandHregulationsHhowHmuchHmoneyHcanHtheHdirectorHlevyHanHadministrativ
eHpenalty?H-HCORRECTHANSWERS-1000
ErrorsHandHomissionsHinsuranceH-HCORRECTHANSWERS-
InHorderHtoHhaveHaHlicenseHyouHmustHhaveHandHmaintainHerrorsHandHomissionsHinsuranceHcovering
HallHbusinessHactivities
MustHobtainHtheHinsuranceHindependentlyH
DeptHofHbusinessHregulationHdetermineHtheHtermsHandHconditionHofHcoverageH
CertificateHofHcoverageHmustHbeHfiledHwithHtheHdeptHofHbusinessHregulationHbyHtheHannualHlicense
HrenewalHdateH
MinHrequirementsHforHE&OHInsurance:H
IndividualHlicensee-HinsuranceHneedsHtoHbeHatHleastH50,000HandH150,000HaggregateH
ForHbrokersHblanketHpolicy:H
TheHminimumHcoverageHneedsHtoHbeHatHleastH50,000HxHamountHofHsalespersonsHandH150000HxHA
mountHofHsalespersonsH
,BrokersHblanketHpolicyHneedsHtoHbeHinHtotalHofH300000HandH1HmillionHdollarsHinHoneHcaseHatHanyHti
me
HowHtoHloseHyourHlicenseH-HCORRECTHANSWERS-MisrepresentationH
FraudH
FalseHpromiseH
MisleadingHadvertisingH
FailingHtoHdepositHmoneyHintoHescrowH
FailingHtoHkeepH3HyearsHofHrecordsH
ActingHasHaHdualHfacilitatorHwithoutHconsentH
PlacingHforHsaleHsignHwithoutHconsentH
FailingHtoHshowHaHcopyHofHrecordsH
NotHwritingHaHterminationHdateHofHcontractH
InducingHsomeoneHtoHbreakHcontractHsoHtheyHcanHuseHmeHasHaHsalesperson
AcceptingHmoneyHforHaHreferralH
NotHdisclosingHintentionsHtoHaHclientH
ConvictedHofHcriminalHfelonyH
ViolatingHrules/regulationsH
BrokerHnotHoverseeingHsalespersonH
RefusingHtoHprovideHinfoH
SolicitingHrealHpropertyH
PayingHorHacceptingHmoneyHforHreferralH
FailingHtoHhaveHlistingHagreementsHinHwritingH
NoHnetHlistingH
NegotiatingHaHpropertyHwhenHsomeoneHisHalreadyHinHcontractHwithHanotherHagentH
, AcceptingHanHagencyHandHfailingHtoHmakeHanHeffortHtoHsellHpropertyH
AdvisingHagainstHuseHofHanHattorneyH
RepresentingHlenders/partyHinterestHofHproperty'sHaHfalseHsalesHcontractH
ComminglingHescrowHmoneyH
AdvertisingHpropertyHofHanotherHinHaHmannerHisHbeingHmadeHbyHaHpartyHnotHengagedHinHrealHestat
eHbusinessH
Can'tHadvertiseHtheHpropertyHunderHanyoneHelse'sHnameHbutHmineH
NoHadvertisementsHinHpublicationsHcontainingHonlyHaddress,HphoneHnumberH
HaveHtoHhandHoverHallHrecordsHtoHbrokerH
GivingHcommissionHtoHsomeoneHwhoHisn'tHaHrealHestateHlicenseeH
SolicitingHtheHsaleHofHaHpropertyHbecauseHaHspecificHraceHisHinHtheHneighborhoodH
BrokerHneedsHtoHtellHtheHdirectorHwithinH10HdaysHthatHheHorHsheHisHleavingHtheHofficeH
TheHdirectorHcanHpenalizeHupHtoH1000HforHanyHofHtheseHviolationsHt
EscrowHdepositHrulesH-HCORRECTHANSWERS-
MustHmaintainHanHescrowHaccountHunderHprincipalHbrokerH
CanHnotHcommingleHdepositHmoneyH
NeedHtoHkeepHdeposit/withdrawalHrecordsHforH3HyearsH
Office/adminHneedsHtoHkeepHaHmonthlyHreportHofHescrowHaccountH
MayHbeHappliedHtoHtheHcommissionHwhenHearnedHbyHtheHlistingHcompanyH
