Unit 1 - Nebraska Statutes 81-885.15 - 81-885.24

81-885.15?

Fees and NREC fund

What is 81-885.15?

Fees collected under NREL are deposited into state real estate commission’s fund to support operations, administration, etc.

81-885.16?

Real property appraiser and broker price opinions

Can a real estate agent proceed a broker’s price opinion?

Yes but these opinions must never be called an appraisal

What must a BPO have if it’s more than just part of a commission based?

In writing, signed by agent who prepared it, date it was made, 14 point disclosure. Without these elements agent can’t charge for a fee

When a BPO or CMA is prepared for a lender or potential lien holder, originating, extending, renewing, or modifying a loan what are the limitations?

Cannot be used as sole basis for determining value of real estate securing loan, broker/sp providing opinion must be engaged directly by lender or lender authorized agent, licensee has no duty to investigate or verify any other valuation methods used by lender

81-885.17?

Nonresident licensing

What is 81-885.17?

Nebraska allows real estate agents from other state to get nonresident license but only if they meet specific requirements

What requirements must a nonresident salesperson meet?

Must be employed by a broker who already holds a NE nonresident broker’s license, NREC approves application

What is the reciprocal agreements with other states

They help Nebraska residents obtain licenses in other states. If NE makes it easier for residents to get licensed here then that state has to make it easier for NE residents to get licensed there

What is the required affidavit?

Before commission issues your non-resident license you must review NRELA. familiar with rules and regulations by comm., agree to bound by NRELA rules and regulations

What is affidavit?

A legal document, when signed you acknowledge the you understand laws and agree to follow them

81-885.18?

Application refusal, hearing rights, and commission decisions

What is 81-885.18?

If the commission refuses an application then applicant has a right to a hearing

When must the director notify applicant for hearing?

20 days before

How to request a hearing?

Applicant submit a written request within 30 days after receiving notice of refusal

When must the commission schedule a hearing?

Within 90 days

81-885.19?

License forms, branch offices, and public verification

What is 81-885.19?

If a broker operates more than one office then it’s considered a branch office.

What are branch fees capped at?

$50

Can a sales person manage a branch office?

No they can’t

81-885.20?

Changes in business location or license status

What is 81-885.20?

If a broker changes the location of their business they must notify NREC in writing

81-885.21?

Broker trust account requirements

What is a trust account?

Is for money belonging to other people

Who must have a trust account?

Every broker, except inactive and must maintain a trust account in NE

What is the first requirement the trust account should have?

Maintained at a bank, savings bank, building and loan association or savings and loan association

What is the second requirement the trust account should have?

separated, insured checking account

What is the third requirement the trust account should have?

in broker’s name or name under which broker does business

What is the fourth requirement the trust account should have?

designated as “trust account” located in NE

What must be deposited in trust accounts?

down payments, earnest money deposits, rents collected, other money received by client or any others

How long do funds remain in trust accounts?

Until transaction is closed, transaction is terminated, all parties that have interest in funds agreed otherwise in writing

What is non-interest bearing account?

Type of trust account that a broker may maintain that does not earn interest, a simpler option with few restrictions

What is interest-bearing account?

Another type of trust account that a broker may maintain but only under strict conditions. Any broker who uses this account must comply with all requirements for distribution of interest

What must a broker do about the trust account?

They must notify the commission

What does the notification requirement ensure?

Commission knows where each broker’s trust account is located for examination and enforcement purposes

Can the commission examine trust accounts?

Yes

When can the commission examine trust accounts?

Annually and at the other time as commission my direct

Can a broker have more than one trust account?

Yes, commission must know about each one

Where must the interest go from interest-bearing accounts?

Nonprofit organizations that promote housing in NE and that are exempt

Who can ONLY receive interest

Non profit housing organizations

Why does trust account requirements exist?

To protect consumers and other parties in real estate

TRUE OR FALSE: trust account violations are among most serious offenses under NRELA and can result in license suspension

TRUE

82-885.21?

Trust Account Violations - Enforcement by attorney general

When does the commission have a mandatory reporting duty

When a report shows that a broker failed to comply with trust account provisions and broker refuses to submit books, papers and inspection

What does it mean to appoint a receiver?

Court can appoint a receiver to take control of brokers property/business, books, papers, docs, as much of the brokers assets comm. deems

81-885.23?

Attorney hires special counsel

What is 81-885.23?

Attorney general is allowed a special counsel to handle the case

81-885.24?

Commission’s power to investigate and disciplines licensees

When can the commission investigate licensees?

On their own initiative without anyone complaining or when any person files a written complaint

What is housing discrimination?

An unfair trade practice where agent refuses to sell, show or rent real estate to one because of who they are

What is false or misleading advertising?

This is intentionally using advertising that is misleading or inaccurate in any important material or misrepresents property, terms, values, or policies, services

What is failing to account for and remit money?

Not accounting for or returning money that belongs to others such as earnest money

What is commingling funds?

Mixing clients money or property with brokers

What is trust account violations?

Failing to maintain and deposit all money in a separate trust account as required

What is undisclosed compensation?

Accepting, giving, or charging any form of compensation, consideration, rebate or direct profit on expenditures made for a principal that is not disclosed

What is dual representation without consent?

Representing or trying to represent another broker without knowledge and consent of employer

What is accepting compensation from non-employer?

Accepting any form of compensation from anyone other than employing broker without said broker knowing

What is undisclosed principal?

Acting as both agent and undisclosed principal in the same transaction

What is guaranteeing future profits?

Guaranteeing or authorizing anyone to guarantee future profits from reselling property

What is unauthorized signs?

Placing for sale or for rent on property without WRITTEN consent or authorized agents written consent

What is unauthorized listings or terms?

Offering real estate for sale or for lease without owners knowledge

What is inducing contract breaking?

Convincing a buyer to back out of their purchase contract so they can buy a different property the agent is trying to sell

What is interfering with exclusive listings?

there are 2 violations.

1) negotiating with owner/lessor directly knowing the owner has a written exclusive agency or exclusive right to sell with another broker

2) negotiating with owner to withdraw or break an exclusive listing contract to substitute new listing contract

What is disclosing future listings during exclusive period?

Talking about a future listing after current listing expires

What is violating condo/HOA laws?

Violating any sections of 76-2401-76-2430

What is lotteries and free lot schemes?

Offering free lots and conducting lotteries to influence people to buy real estate

What is paying unlicensed people?

Paying compensation for services of a broker, associate broker, salesperson when they don’t have a license. referral fee and person who is nonresident licensed in their home state is only exception

What is listing agreement violations?

failing to include an expiration date and failing to leave copy with client

What is failing to deliver purchase agreements?

Failing to deliver a completed and dated copy of any purchaser agreement or offer to buy or sell real estate to both purchaser and seller within reasonable time

What is closing statement violations?

Failing to deliver seller complete detailed of closing statement, failing to deliver the buyer a complete statement showing all money received from buyer and failing to retain true copies of these statements in the brokers files

What is undisclosed agency (dual)

Acting fro more than one party in a transaction without both parties knowing

is dual agency illegal in NE?

Not if it is disclosed but if it kept secret, yes.

What is no delivering deposits to broker?

Associate broker or salesperson failing to place deposit money or other funds in the employing brokers custody

What is filing false liens

Filing a listing contract or document claiming to create a lien based on a listing contract to create a cloud on title when no valid claim exists

What is violating commission rules?

Violating any rule or regulation by commission can be grounds for discipline

What is subdivider noncompliance?

Subdivider filling to comply with all license act requirements after certificate has been given

What is felony conviction?

Conviction of a felony or entering a pleas of guilty or no contest to a felony charge

What is negligence, incompetence or unworthiness?

Demonstrating negligence, incompetence, or unworthiness to act as a broker, associate broker or salesperson

What is blockbusting and panic selling?

Inducing/attempting someone to sell their property or discourage someone from buying property by representing a change has occurred or will regarding race, color, etc.

What is team leader record keeping failure?

team leader failing to provide a current list of all team member to their designated broker

What is designated broker record keeping failure?

Designated broker failing to maintain record of all team member and leader under them

What is inadequate advertising disclosure?

A team’s ad doesn’t show clearly what brokerage they work for

What is taking earnest money as compensation

Charging/collecting any part of earnest money as compensation before transition closes or terminates

What is not providing licensure exemption info?

failing to provide unlicensed people with info about licensing exemptions

What is right to list home sale agreements?

Offering/entering into right to list home sale agreement, which is where homeowner pays someone for the exclusive right to list their home for sale in the future

Is right to list home sale agreements legal in NE?

NO

What is substantial misrepresentation?

False statement about important facts