KY Salesperson Pre-License Exam Prep Flashcards: State-Specific Content

KY Salesperson Pre-License Exam Prep Flashcards: State-Specific Content Agency Disclosure Statement ️Required confirmation of the agency relationship for seller and buyer; must be completed when making an offer and when an offer is received Aggrieved party ️The consumer who worked with the licensee (either as a client or customer) and was subject to the licensee's fraudulent activity Annual continuing education requirements ️Six hours by December 31 Article 1 of the National Association of REALTORS® Code of Ethics and Standards of Practice ️Requires REALTORS® to protect the interests of their clients, but they're still obligated to treat all parties honestly Broker ️A person who has been in real estate for an average of 20 hours per week for 24 months prior to becoming a broker and supervises other licensees Broker ️Licensee who has worked as a sales associate for at least 20 hours a week for the previous 24 months, and completes at least 21 hours of real estate broker education, including at least three hours of broker management skills Causes for immediate removal from KREC ️- A licensed member ceases to have an active real estate license - The citizen-at-large member acquires a real estate license or financial interest in real estate practice - A member pleas or is found guilty of felony fraud or a crime involving moral turpitude - A member moves out of state Commercial real estate ️Retail and wholesale, office, research, warehouse, institutional, industrial, manufacturing, property zoned for a business or commercial use, and multi-family residential buildings of five or more units Commingling ️Illegal combining of escrow funds with personal or other business accounts Condominium Seller's Certificate ️Required disclosure when selling a condominium; completed by the condo association and provided to buyers Consequence for failing to take required post-licensing education hours ️License cancellation Consumer Guide to Agency Relationships ️Required disclosure of agency relationships; brokerages may use the model policy for firms that offer both designated agency and dual agency, or for firms that offer only dual agency Contractual interference ️Inducing, or attempting to induce, a party to a contract to break that contract Cooperating agreement ️Written agreement that sets terms for a co-brokerage, referral, affiliation, or other arrangements between a Kentucky principal broker and an out-of-state principal broker; required when any type of valuable consideration is involved Date Kentucky real estate licenses expire ️March 31 Designated agency in Kentucky ️The brokerage represents both sides of a transaction, and the principal broker designates a licensee to represent each client Earnest money deposit ️An amount of money the buyer places in escrow or trust to show good faith in the buyer's intention to purchase the seller's property; Must be deposited within three days of contract signing Errors and omissions insurance ️Protects licensees from possible legal action; aka E&O insurance Escrow funds ️Money held for other people, such as tenant security deposits Escrow of license ️Returning a real estate license to KREC to hold Exclusive right to sell and exclusive buyer agency agreements ️Provide the highest service to the client and the most protection for the broker's commission Exclusive right to sell/lease agreement ️Allows the broker to list the property and receive a commission no matter who brings the buyer/lessee to the seller/landlord Fee for delinquency plan ️$500 Forfeit of Deposit ️A provision of the KREC Non-Exclusive Open Listing Agreement that specifies that the seller and broker split the earnest money deposit when the buyer defaults General warranty deed ️Provides the most assurance for the buyer of a marketable title Hearing officer ️An attorney KREC appoints to preside over hearings and submit recommendations for disciplinary actions to KREC for review/approval Holdover clause ️Protects the broker by requiring the seller to pay the total commiss