Maine Real Estate Law Exam Questions & Answers Verified 100% Correct!!

Maine Real Estate Law Exam Questions & Answers Verified 100% Correct!! A client must be informed as to the real estate brokerage agency's appointed agency policy and: Give written consent to that policy in advance of entering into a brokerage agreement. A disclosed dual agent may disclose any information to one party that the licensee gains from the other party if the information is relevant to the transaction except: Confidential negotiating strategy not disclosed in the sales offer as terms of the sale. The Maine Real Estate Commission may not impose disciplinary sanctions when a person is guilty of: Innocent misrepresentation. Joanna has been an active associate broker licensee in Maine for 7 years. She may: Serve on the Maine Real Estate Commission as an industry member. The Real Estate Brokerage Relationship Form #3 does not need to be provided by a licensee to a prospective buyer: Interested in purchasing land without a residential dwelling unit. A licensee must provide a copy of a newly signed listing agreement to his or her designated broker within: 5 calendar days after execution of the document. A buyer's agent anticipates receiving a bonus of $3000 from the seller of a property. Which of the following is true? The buyer's agent must disclose this bonus in writing to the buyer client. To apply for an associate broker license, the licensee must: Attend 60 hours of training. The maximum amount of time that a listing agreement may "carry over" is: 6 months. Which government entity has jurisdiction over zoning for over 10 million unincorporated acres in Maine? LUPC George is a licensee who is convicted of embezzlement of funds from his employer. George must: Report his conviction to the Maine Real Estate Commission within 10 days. An auctioneer needs a real estate license to: Take custody of the earnest money from the winning bidder. An attorney must hold a real estate license if: The attorney is regularly engaged in real estate brokerage. Jill wants to install a septic system on her lakefront property. The property must: Have at least 100 feet of frontage on the lake. Andrew is a veteran of World War II. He may be eligible for a property tax exemption of: $6000. Jenny wants to apply for a sales agent license. She must be: At least 18 years old. Peter's sales agent license expires on June 30. Which of the following is true? (Which is the BEST answer?) He can apply for a one year extension due to documented extenuating circumstances. What words must be imprinted on a trust account check? Real Estate Trust Account. A location where business is regularly conducted or that is advertised as where the public may contact the real estate brokerage agency is called a: Branch office. What type of location must every real estate brokerage agency maintain? A fixed and definite place of business. How many people serve on the Maine Real Estate Commission? 6 Sally is a sales agent licensee at the Sunshine Real Estate Company. Which of the following is true? Sally's designated broker must review and initial her market analyses for her first 90 days at Sunshine Real Estate Company. The minimum size lot required for a single family residence to have a septic system is: 20,000 square feet. A licensee is required to provide copies of contracts to all parties: At the time of their signatures. Edward is selling his property that is totally located in a shoreland zone. The property includes a septic system. What must Edward provide to the buyer? A written statement as to whether or not the septic system has malfunctioned during the 180 days prior to closing Jenny wants to build a garage on a piece of land that borders a great pond. The garage would be 200 feet away from the normal high-water line of the great pond. Her town does not allow any building in the shoreland zone. Will Jenny be allowed to build the garage? No, the garage would be in the shoreland area that is within 250 feet of the great pond. The designated broker is responsible for having a written company policy covering: The type of real estate relationships in which the agency may engage. You 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? 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? Yes What are the maximum penalties that the Maine Real Estate Commission may impose for violating real estate license law? $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? 5 years Two years ago, Susan's massage therapist license was suspended because she misused a client's credit card. When may Susan be considered eligible for a Maine real estate license? She must wait one more year for a total of 3 years, and the commission may or may not approve her real estate license. In addition to fines up to $2000 per violation, suspension or revocation of license, what other penalties might the commission impose? 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? 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? 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? 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? 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? No as this name is too similar to ReMax. What 5 items must be included in a written brokerage agreement? 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? 6 months unless client subsequently lists with another agency What may be deposited in a trust account? 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? Name of the agency, and "real estate trust account" Broker Joe fires licensee Eduardo. What is Joe required to do with Eduardo's license? Immediately deliver it to the commission Which license must be conspicuously displayed at the agency's place of business? The agency license How old must a licensee be? At least 18 years old Griffin's legal residence is in South Carolina. May he apply for a Maine license? 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? 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? 21 hours What are two requirements for applying for a broker license? 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? 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? Serve as Designated Broker or branch office manager What are two requirements for applying for a sales agent license? Complete a course of study, take a written sales agent exam What four roles may an agency assume in Maine? 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? 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? 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? Honestly Gregory is the agent of buyer Andrea. Gregory is also the agent of another buyer, Cathy. May Gregory show 14 Myrtle St. to both Andrea and Cathy (at different times, of course)? Yes, the agent of the buyer is able to promote other properties in which the buyer is interested to other buyers. Buyer agent Eileen knows that her buyer's financing just fell through on a property which the buyer has under contract. What is Eileen's duty to the seller? Eileen must report this material fact about the buyer's financial ability to perform the terms of the transaction. What must the real estate brokerage agency receive from all parties in order to act as a disclosed dual agent in a transaction? Informed written consent