REAL ESTATE RHODE ISLAND LAW QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY GRADED A+
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Module
REAL ESTATE
Institution
REAL ESTATE
Real estate recovery act
Ans: Dept of business regulation establishes this account
Covers anyone aggrieved by an act, misrepresentation, transaction or
conduct of a licensed real estate broker upon the grounds of fraud,
misrepresentation or deceit may recover no more than 50000 per one
lic...
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REAL ESTATE RHODE ISLAND LAW 2025- 2026
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT ANSWERS) /ALREADY GRADED A+
Real estate recovery act
Ans: Dept of business regulation establishes this account
Covers anyone aggrieved by an act, misrepresentation, transaction or
conduct of a licensed real estate broker upon the grounds of fraud,
misrepresentation or deceit may recover no more than 50000 per one
license
Can't be used to reimburse any broker or salesperson
Agents pay a fee for the deposit in the real estate recovery fund when they
first get their license
Dec 31 of any year if the recovery fund is less than 200000 agents pay a fee
of $25 when renewing their license
Agents/ brokers must pay back the recovery fund plus 12% a year
Quiz: Real estate commission
Ans: 9 people at least one from each county
Citizen of the state for at least 10 years
3 current licensed brokers who have been brokers for at least 5 years in the
state
,4 have to be members of the general public
Quiz: Who is exempt from licensing?
Ans: 1. Any person, partnership, association, corporations or any of their
employees who want to acquire, lease, sell of deal in real estate that
will be held for investment
1. Same as above just any owner, lessee, or lessor
Quiz: If you violate the rules and regulations how much money can the
director levy an administrative penalty?
Ans: 1000
Quiz: Errors and omissions insurance
Ans: In order to have a license you must have and maintain errors and
omissions insurance covering all business activities
Must obtain the insurance independently
Dept of business regulation determine the terms and condition of coverage
Certificate of coverage must be filed with the dept of business regulation by
the annual license renewal date
Min requirements for E&O Insurance:
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,Individual licensee- insurance needs to be at least 50,000 and 150,000
aggregate
For brokers blanket policy:
The minimum coverage needs to be at least 50,000 x amount of salespersons
and 150000 x Amount of salespersons
Brokers blanket policy needs to be in total of 300000 and 1 million dollars in
one case at any time
Quiz: How to lose your license
Ans: Misrepresentation
Fraud
False promise
Misleading advertising
Failing to deposit money into escrow
Failing to keep 3 years of records
Acting as a dual facilitator without consent
Placing for sale sign without consent
Failing to show a copy of records
Not writing a termination date of contract
Inducing someone to break contract so they can use me as a salesperson
Accepting money for a referral
Not disclosing intentions to a client
Convicted of criminal felony
Violating rules/regulations
Broker not overseeing salesperson
Refusing to provide info
Soliciting real property
Paying or accepting money for referral
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, Failing to have listing agreements in writing
No net listing
Negotiating a property when someone is already in contract with another
agent
Accepting an agency and failing to make an effort to sell property
Advising against use of an attorney
Representing lenders/party interest of property's a false sales contract
Commingling escrow money
Advertising property of another in a manner is being made by a party not
engaged in real estate business
Can't advertise the property under anyone else's name but mine
No advertisements in publications containing only address, phone number
Have to hand over all records to broker
Giving commission to someone who isn't a real estate licensee
Soliciting the sale of a property because a specific race is in the
neighborhood
Broker needs to tell the director within 10 days that he or she is leaving the
office
The director can penalize up to 1000 for any of these violations t
Quiz: Escrow deposit rules
Ans: Must maintain an escrow account under principal broker
Can not commingle deposit money
Need to keep deposit/withdrawal records for 3 years
Office/admin needs to keep a monthly report of escrow account
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