MREC and PSI Exam Categories

Link to MREC copy

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.