Unit 1 - Nebraska Real Estate License Law Terms

Randall Study

Associate Broker?

Has broker’s license but works under another broker

Broker?

Work independently, manage a brokerage, and supervise other agents

How many types of brokers are there in Nebraska and what are they?

2, associate and designated broker

What is Broker’s Price Opinion (BPO)?

Written estimate of what a property is worth, opinion given about value of a specific property and used for setting price, helping lender start/renew/etc.

Is appraisal and BPO the same?

NO, BPO is not an appraisal but still an official pricing tool allowed under license law

What is commission?

Refers to Nebraska State Real Estate Commission, agency that is responsible for real estate license law. Regulates licensees, issues licenses, enforces law, investigates complaints and protects public

What is Comparative Market Analysis (CMA)?

Compares specific property to other similar properties that have been sold recently or on market currently

What is designated broker?

One individual in a real estate company who has full legal authority to run the business and oversee all real estate activities. Responsible for supervising every associate broker and salesperson.

How is the designated broker chosen?

Depends on business structure. Sole proprietorship: the owner- or a broker chosen by owner - is designated broker. Partnership, LLC, or Corporation; Partners, members, or board of directors must officially name designated broker.

What is federal financial institution regulatory agency?

Any federal government agency responsible for supervising and regulating banks, credit unions and other financial institutions

What does the federal financial institution regulatory agency do?

Helps ensure safe lending practices including those connected in real estate transactions

What does the federal financial institution regulatory agency include?

Federal Reserve, FDIC, OCC, CFPB, NCUA

What is federally related transactions?

Real estate transaction that meets two conditions: requires an appraiser. regulated, contracted for, or overseen by federal financial institution regulatory agency

What is inactive buyer?

Someone who holds a broker license but is not allowed to perform any real estate activities because license is not active

How does a broker/salesperson license become inactive?

License returned to commission, license put on inactive, newly license, violating law/rule

What is inactive salesperson?

Holds a salesperson license but can’t perform any real estate activities because license isn’t active

What is “Person”?

When the law refers to a “person” who is licensed, it always means an individual human being not a business entity.

What is purchaser?

Someone trying to own real estate or interest in real estate

What is real estate?

Condominiums, leaseholds, interest or estate in land, physical and non-physical rights in property, property located anywhere

What is regulatory jurisdiction?

Any place - inside or outside US - that has its own laws regulating brokers

What is Right-to-list-Homesale Agreement?

Special type of contract in which a homeowner gives someone else the exclusive right to list their home at a future date and receives money

For a right-to-list home sale agreement to qualify, what are the qualifications?

Claim agreement runs with land and claim to act as lien, encumbrance or other security interest on property

What is salesperson?

An individual who works under the supervision employed and supervised by broker

What is the difference between broker and salesperson?

Real estate agent can do activities only because licensed broker employs and supervises them

What is a subdivider?

Person who takes large piece of land and divides into smaller lots fr themselves or others and may oversee development of subdivision.

What is subdivision or subdivided land?

Certain types of real estate developments that meet specific legal conditions

What qualifies as subdivided land?

1. Property registered under the Interstate Land Sales Full Disclosure Act

2. Property outside Nebraska that has been divided or planned to be divided into 25 or more lots, parcels, or units.