Real Estate Law Module 2 (Ohio Statutes-Licensure): Quiz

Which broker is required to take 30 hours of approved CE in order to renew her license? a. Ann, who is 72 years old. b. Betty, whose license is currently on deposit. c. Carol, whose license is in voluntary hold status. d. Dana, whose license is in resigned status.

A. A broker whose license is on deposit must complete the mandatory 30 hours or CE in order to renew the license and maintain it on deposit. A 70-year-old licensee does not need all 30 hours, just the 9 core hours. Licenses that are in voluntary hold or resigned status are not required to take CE.

Gene missed the deadline to renew his salesperson license. His license is now in _______ status and he has a ______ grace period to reactivate. a. inactive / 3-year b. resigned / 6-month c. suspended / 12-month d. terminated / 90-day

C. If he fails to renew prior to the filing deadline, his license is suspended. A suspended license may be reactivated within 12 months of the date of suspension.

Who promulgates the Ohio Canons of Ethics? a. Ohio Association of REALTORS® b. Ohio Division of Real Estate c. Ohio Real Estate Commission d. Secretary of the Division of Real Estate and Professional Licensing

C. The Ohio Real Estate Commission promulgates the Canons of Ethics for the Real Estate Industry, and all Ohio licensees are bound by it.

New licensee Lois is excited about placing her first advertisement in the local real estate circular. What must she be sure to include in the ad? a. her business address b. her license ID c. the name of her employing broker d. her phone number

C. When a salesperson posts an advertisement, the broker's name must be at least as prominent as the salesperson's name.

Tina is a principal broker at ABC Realty. She decides to go to school to get an MBA. If she wants to be a salesperson for awhile, the Superintendent can place her broker's license a. in inactive status indefinitely and reissue a new salesperson license. b. in suspended status for up to three years and reissue a new salesperson license. c. on deposit indefinitely and reactive her salesperson license. d. on hold for up to three years and reactivate her salesperson license.

C. The Superintendent can put her broker's license on deposit and reactivate her salesperson's license. Tina could also choose instead to be an associate broker.

Which is NOT an action that could result in discipline against a licensee? a. encouraging a homeowner to break his listing contract with ABC and sign a listing agreement with XYZ b. guaranteeing a buyer that the lakeside cottage he's considering will increase in value c. maintaining property management security deposits in an interest-bearing account d. making an offer on a listed property without telling the seller client that she is the buyer

C. While a brokerage trust account for real estate sales cannot be in an interest-bearing account, a licensee can maintain a property management trust account in an interest-bearing account. The other situations are specific prohibited acts.

Broker Rita likes to reward her employees for a job well done. Her unlicensed assistant Mark really helped keep her organized and on track to close several huge deals. To show her appreciation, Rita can a. give Mark a 10% split of her commission. b. pay Mark an annual bonus of 10% of his salary. c. pay Mark a bonus for every lead he passes on to her. d. pay Mark a referral fee for introducing her to the client.

B. A licensee cannot pay a transaction-based fee or split commission with someone who is unlicensed. She can, however, pay him a bonus based on his excellent work all year long.

Who is protected by the Broker Lien Law? a. licensee who sells or leases commercial real estate only b. licensee who sells or leases residential real estate only c. any property owner who contracts with a broker to sell or lease d. every real estate licensee

A. Any broker that enters into a written contract for services related to selling, leasing, or conveying any interest in commercial real estate has a lien on that commercial real estate.

A licensee is convicted of violating a local civil rights/fair housing ordinance. He must notify the Superintendent of the conviction a. before his next renewal date. b. within 15 days. c. within 60 days. d. He is not required to disclose local violations.

B. A licensee must notify the Superintendent within 15 days if the licensee is convicted of a violation of any federal, state, or municipal civil rights law pertaining to discrimination in housing.

Which is NOT one of the required core continuing education topics? a. 3 hours legal issues and recent legislation b. 3 hours civil rights updates c. 3 hours contract preparation techniques d. 3 hours Canon of Ethics

C. Contract preparation is not a required topic, but could be an appropriate topic for some of the 21 elective hours.

What is the renewal timeframe for an Ohio real estate licensee? a. Licenses must be renewed every two years on or before the date of original licensure. b. Licenses must be renewed every two years on or before December 31. c. Licenses must be renewed every three years on or before December 31. d. Licenses must be renewed every three years on or before the licensee's birthday.

D. Each broker and licensee must renew his own license every three years on or before his birthday.

Once you pass the state licensing examination and receive your salesperson license, what are your education requirements? a. 20 hours of approved post-licensing within 12 months b. 20 hours of approved continuing education within 3 years c. 30 hours of approved post-licensing within 12 months d. 30 hours of approved post-licensing within 3 years

A. Once a license is issued to a salesperson, the licensee has 12 months in which to complete a required post-licensure education course. That education must consist of 20 hours of state-approved study for those who were licensed after April 6, 2017.

The Superintendent CANNOT issue a citation for what type of violation? a. discriminatory housing language b. false advertising c. lack of agency disclosure d. trust account mismanagement

D. Citations may be up to $200 for each violation (up to a maximum total of $2,500) related to advertising, agency disclosure, or fair housing language. Citations could not be used in lieu of an investigation for charges of mishandling escrow accounts.

When salesperson Jack terminates his association with broker Barry, what happens to Jack's license? a. Barry must immediately return Jack's license to the Superintendent of the Division of Real Estate and Professional Licensing. b. Barry must immediately give Jack his license, and then Jack has 10 days to return it to the Superintendent of the Division of Real Estate and Professional Licensing. c. Barry must return Jack's license to the Superintendent of the Division of Real Estate and Professional Licensing within 10 days. d. Jack must immediately return his license to the Superintendent of the Division of Real Estate and Professional Licensing.

A. Immediately upon the salesperson's leaving the broker or termination of a real estate salesperson's association with the broker, the broker shall return the salesperson's license to the Superintendent of the Division.

What is the maximum fine that can be imposed on a licensee for violations of the Ohio Revised Code? a. $1,000 per violation, up to $2,500 b. $1,500 per violation, no limit c. $2,500 per violation, no limit d. $5,000 per violation, up to $50,000

C. A licensee may be fined up to $2,500 by the Commission for each violation of the Ohio Revised Code. There is no limit to the amount of fines that the Commission can levy.

Failure to include the __________ on all written agency agreements is grounds for discipline under Ohio Revised Code § 4735.18. a. expiration date b. legal description c. preferred title company d. salesperson's name

A. Failing to put expiration dates on all written agency agreements is grounds for discipline.

Ohio property manager Ned was found guilty in a court of law of a civil rights violation. A month later, a second civil rights suit was filed against him. His Ohio real estate license will be a. revoked. b. suspended if he's found guilty of the second charge. c. suspended for at least two months. d. suspended for at least one year.

C. A second or subsequent violation of any fair housing or civil rights law, regardless of final adjudication, is a violation that carries a minimum two-month suspension.

Broker Ben deposited a buyer's earnest money check into the general business account. Ben could be found guilty of a. blockbusting. b. commingling. c. redlining. d. steering.

B. Commingling is the act of mixing trust funds and brokerage business funds. This is grounds for discipline.

Licensee Tom shows one of his listed properties to a buyer client. The seller knew that the buyer was also Tom's client, but Tom did not tell the buyer that he was the listing agent. Did Tom do anything wrong? a. No, as long as buyer and seller agree on a price, Tom has done nothing wrong. b. No, as long as the seller has given consent, Tom has done nothing wrong. c. Yes, Ohio law does not allow a single agent to represent both buyer and seller. d. Yes, Tom is acting as an undisclosed dual agent without the consent of both parties.

D. Grounds for discipline under O.R.C. § 4735.18 includes acting for more than one party in a transaction without the knowledge and consent of all parties involved. Tom is an undisclosed dual agent. If both parties give informed written consent, dual agency is acceptable.

Broker Betty has three licensed salespersons working at her brokerage. What is Betty required to do with the licenses? a. All licenses must be displayed in a public area of Betty's business location. b. Only broker Betty's license must be displayed in a public area of her business location. c. No licenses are required to be displayed, but all must be on file at Betty's business location. d. Each licensee is required to maintain his or her own license somewhere on the premises.

B. The broker's license (and only the broker's license) must be displayed in a public area of the broker's place of business. The associated salespersons' licenses must be kept on file at Betty's principal office.