Real Estate and Business Brokers Act Flashcards
6 cards from real OREA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Real Estate and Business Brokers Act flashcards as text
Under REBBA 2002, what is the penalty for a corporation convicted of trading in real estate without registration?
Answer: $250,000
A corporation convicted of trading without registration under REBBA 2002 faces a maximum fine of $250,000, compared to $50,000 for an individual.
Under REBBA 2002, which of the following best describes 'customer service'?
Answer: Providing information and assistance without fiduciary obligations
A customer receives information and services from a registrant but does not enter into a representation agreement. The registrant owes honesty and fair dealing but not the full fiduciary duties owed to a client.
What is the purpose of the representation agreement under REBBA 2002?
Answer: It formalizes the relationship between the brokerage and the client, outlining duties and terms
A representation agreement is a written contract between the brokerage and the client that outlines the services to be provided, the obligations of both parties, the term of the agreement, and the commission or remuneration.
Under REBBA 2002, what must a registrant do if they become aware of a latent defect in a property they are listing?
Answer: Disclose the latent defect to prospective buyers
Registrants must disclose known latent defects (hidden defects that may affect the property's value or safety) to prospective buyers. Failure to disclose can result in liability and disciplinary action.
Under REBBA 2002, how is the trust account reconciliation handled?
Answer: The brokerage must reconcile trust accounts monthly and maintain detailed records
Brokerages must reconcile their real estate trust accounts on a monthly basis and maintain detailed records of all trust transactions. This ensures deposits are properly accounted for and protected.
What happens if a brokerage closes or is terminated under REBBA 2002?
Answer: The Broker of Record must ensure all trust funds are properly disbursed and records are transferred or retained
When a brokerage closes, the Broker of Record has a continuing obligation to ensure all trust funds are properly disbursed, all parties to pending transactions are notified, and records are retained for the required period.