Chapter 27 Maine Real Estate Laws question n answers graded A+

Chapter 27 Maine Real Estate LawsYou are a real estate licensee in Maine. Your friend Andrew, who is not a real estate licensee, asks if you will pay him $250 for every sales lead he sends you. What do you tell Andrew? - correct answer I can't pay referral fees to someone who is not a real estate licensee Elwood holds a Maine auctioneer license. He wants to call bids at a real estate auction and take custody of the earnest money from the highest bidder. Does Elwood need a real estate license in addition to his auctioneer license in order to do this? - correct answer Yes What are the maximum penalties that the Maine Real Estate Commission may impose for violating real estate license law? - correct answer $2000 per violation plus the amount of compensation received in the subject transaction, revocation or suspension of license Each industry member of the commission must have been a broker or associate broker in Maine for at least how many years prior to appointment? - correct answer 5 years A licensee may be disciplined by the commission for making any substantial misrepresentation by omission or commission. May a licensee also be disciplined for innocent misrepresentation? - correct answer No. A licensee may not be disciplined for innocent misrepresentation In addition to fines up to $2000 per violation, suspension or revocation of license, what other penalties might the commission impose? - correct answer Reprimand, require person to comply with terms and conditions, report findings to Attorney General The Director concludes an investigation into wrongdoing by licensee Roberta. What three actions may the Director take? - correct answer Dismiss, execute a consent agreement, issue a petition for a hearing Marcus has the great idea to establish a real estate brokerage agency that only has an internet presence - no "bricks and mortar" location. Is this allowed? - correct answer No, an agency must have a fixed and definite place of business The Remarkable Real Estate Company is expanding to two new locations that it will advertise as its branch offices. Does each branch office need a license? - correct answer Yes, they must be licensed as branch offices Michelle was convicted of embezzlement of clients' funds when she worked in an accounting office. Is she allowed to own a real estate brokerage agency? - correct answer Probably not. Owners or officials may not have been convicted of any Class A, B or C crime or any crime which bears directly on the practice of real estate Justine wants to open a real estate brokerage agency and call it ReMacks. Do you think she will be able to do this? - correct answer No as this name is too similar to ReMax What 5 items must be included in a written brokerage agreement? - correct answer Signature of client being charged, terms and conditions, method/amount of compensation, expiration date, statement that this creates an agency-client relationship For a maximum of how many months may a brokerage agreement carry over? - correct answer 6 months unless client subsequently lists with another agency What may be deposited in a trust account? - correct answer Earnest money deposits and all other money held by it as an agency in which its clients or other persons have an interest What words must be on a check drawn from the trust account? - correct answer Name of the agency, and "real estate trust account" Designated Broker Joe fires licensee Eduardo. Whose duty is it to inform the Maine Real Estate Commission that Eduardo is no longer affiliated with Broker Joe's real estate brokerage agency? - correct answer It is the Designated Broker's duty. Joe must inform the Maine Real Estate Commission Which license must be conspicuously displayed at the agency's place of business? - correct answer The agency license How old must a licensee be? - correct answer At least 18 years old Griffin's legal residence is in South Carolina. May he apply for a Maine license? - correct answer Yes, you do not have to be a Maine resident to apply for a Maine real estate license Marianna moves from Yarmouth to Cumberland. Within how many days must she notify the commission of her change of address? - correct answer 10 days In order to renew a license, how many clock hours does an associate broker or broker licensee must have completed in the 2 years prior to renewal? - correct answer 21 hours What are two requirements for applying for a broker license? - correct answer Affiliated with an agency as an associate broker licensee for 2 of the last 5 years, complete a course of study What are two requirements for applying for an associate broker license? - correct answer Practiced as a sales agent for the 2 of the last 5 years, complete a course of study What is an associate broker licensee not allowed to do? - correct answer Serve as Designated Broker What are two requirements for applying for a sales agent license? - correct answer Complete a course of study, take a written sales agent exam What four roles may an agency assume in Maine? - correct answer Seller agent, buyer agent, subagent, disclosed dual agent Carmelita is the agent of the seller. After two months on the market, the seller accepts an offer and the property is under contract. Is Carmelita obligated to continue marketing the property? - correct answer No, unless the brokerage agreement so provides While the property is under contract, the agent of the seller receives yet another offer from a different buyer. Must the agent present this offer to the seller? - correct answer Yes, all offers must be presented to the seller right up until the minute of closing How must the agent of the seller treat the buyer? - correct answer honestly