MREC and PSI Exam Categories
Powers and Duties of the Real Estate Commission (Salesperson 4 Items, Broker 4 Items)
Hearings, including subpoena power
Purpose and jurisdiction
Violations
Penalties MREC can impose
Licensing Requirements and License Maintenance (Salesperson 4 Items, Broker 4 Items)
General licensing requirements
Continuing and Post-licensing ed req
E & O insurance
Disqualifying issues
Activities Requiring License (incl. time shares, auctions, prop mgmnt)
Exemptions from licensure
Inactive license
Rules about receiving and Sharing Commissions.
Property Condition Disclosures (Salesperson 4 Items, Broker 6 Items)
Disclosure form (delivery, who completes)
Stigmatizing factors
Licensee responsibility to advise client, ensure completeness?
Exemptions from Disclosure – no exemption for new construction
Disclosure form is not part of contract (see form) but is attached to listing
Material changes allow buyer to void contract
Agency Disclosure and Duties to Parties (Salesperson 8 items, Broker 8 items)
Dual Agency Disclosure
Working with a Real Estate Broker
Disclosure of licensed status if a principal
Timing of diclosure, Rules about parties to who disclosure must be made
Buyer may withdraw from Buyer-Broker agreement with15 days’ notice
General Duties to all Parties
Out-of-State Brokers and Developers (Salesperson 4 Items, Broker 3 Items)
Cooperative agreements
Reciprocal licenses
Trust Accounts (Salesperson 4 Items, Broker 3 Items)
Handling of earnest money
General acctg practices; no commingling
Broker is account holder; Salesperson may not establish prop mgt escrow acct independent of broker
Disbursement issues (interpleader)
Brokers Responsibilities Including Supervision of Sales Associates (Salesperson 6, Broker 5}
Supervision of associated licensees
Inform MREC of change in associate status/termination
Responsibility for acts of associates
License display; place of business
Broker Price Opinion
Associates’ Compensation
Records and Documents (Salesperson 3 Items, Broker 4 Items)
Length of time to keep (Routine, if litigation)
Records that are included in this requirement
Disposition of records after close of a business
Electronic records OK
Advertising/Marketing/Internet (Salesperson 3 Items, Broker 3 Items)
Social media and internet are advertising (part of “ALL advertising”)
Must advertise in broker’s name
Broker must permit/approve advertising
Private controls
The Real Estate Training Institute is approved to provide instruction in real estate courses.
