Q. Who are the current real estate commissioners?
Q. What is the New Broker Relationships Act and when did it go into effect?
Q. What is the psychological impact law and when did it go into effect?
Q. What are the grounds for having a license revoked or suspended?
Q. What are the Prohibited Dealings?
Q. What are the rules regarding broker trust accounts?
Q. What are the rules for closing your real estate operation?
The current real estate commissioners are: (As of 10 SEP 02 )
|
E. R.
Andrew |
Bud
Engstrom |
|
Pat
Schafer |
Bill
Mizener |
|
John
Mosley |
John
Snodgrass |
|
Martin
VanMeter |
Anne M. Woody, Executive Director.... Staff
Connie Miller, Education Program Director.... Staff
Q. What is the new Broker Relationship Act and when did it go into effect?
The new law went into effect on 1 November
2000. Check my web site for complete information.
Q. What is the psychological impact law and when did it go into effect?
605:10-15-3. Guidelines for furnishing psychological factors Psychologically impacted property is any property whereof the existence of certain circumstances, suspicions or facts may create emotional or psychological disturbance or concerns to a prospective purchaser/lessee, with the potential of influencing a buying/leasing decision. Therefore, the obligation of a real estate licensee to obtain information as stated in Title 59,0.5., Section 858-513A (1) and (2) shall be performed in the following manner:
(1) Purchaser/lessee must be in the process of making a bona fide offer;
(2) Licensee must receive request in writing from purchaser/lessee;
(3) Purchaser's/Lessee's written request must state that such factor is important to the decision of the purchaser/lessee;
(4) Licensee shall make inquiry of the owner by submitting the written request to the owner;
(5) Licensee shall report any findings to the purchaser/lessee with the consent of the owner;
(6) If the owner refuses to furnish information requested, the owner's agent shall so advise the purchaser/lessee;
(7) Further, if a purchaser/lessee is requesting information as to whether or not an occupant of the real estate is, or was at any time suspected to be infected, or has been infected with Acquired Immune Deficiency Syndrome, or any other disease which falls under the privacy laws, the information can only be obtained in accordance with the Public Health and Safety Statute, Title 63, 0.S.. 1988, Section l-502.2A.
For the most updated version of this information go to the new OREC web site.
§858-312. Investigations--Cause for suspension or revocation of license. The Oklahoma
Real Estate Commission may, upon its own motion, and shall, upon written complaint filed
by any person, investigate the business transactions of any real estate broker or real
estate sales associate, and may. upon showing good cause, impose sanctions as provided for
in Section 858-208 of this title. Cause shall be established upon the showing that any
licensee has performed, is performing, has attempted to perform, or is attempting to
perform any of the following acts:
1. Making a materially false or fraudulent statement in an application for a license;
2. Making substantial misrepresentations or false promises in the conduct of business, or through real estate licensees, or advertising, which are intended to influence, persuade, or induce others;
3. Acting for more than one party in a transaction without the knowledge of all parties for whom the licensee acts;
4. Accepting a commission or other valuable consideration as a real estate associate for the performance of any acts as a real estate associate, except from the real estate broker with whom the licensee is associated;
5. Representing or attempting to represent a real estate broker other than the broker with whom the licensee is associated without the express knowledge and consent of the broker with whom the licensee is associated;
6. Failing. within a reasonable time, to account for or to remit any monies, documents. or other property coming into possession of the licensee which belong to others;
7. Paying a commission or valuable consideration to any person for acts or services performed in violation of this Code;
8. Any other conduct which constitutes untrustworthy, improper, fraudulent, or dishonest dealings;
9. Disregarding or violating any provision of this Code;
10. Guaranteeing or having authorized or permitted any real estate broker or associate to guarantee
future profits which may result from the resale of real estate;
11. Advertising or offering for sale, rent or lease any real estate, or placing a sign on any real estate offering it for sale, rent or lease without the consent of the owner or the owner's authorized representative:
12. Soliciting, selling, or offering for sale real estate by offering "free lots," conducting lotteries or contests, or offering prizes for the purpose of influencing a purchaser or prospective purchaser of real estate;
13. Accepting employment or compensation for appraising real estate contingent upon the reporting of a predetermined value or issuing any appraisal report on real estate in which the licensee has an interest unless his or her interest is disclosed in the report. All appraisals will be in compliance with the Oklahoma real estate appraisal law, and the person performing the appraisal or report will disclose to the employer whether the person performing the appraisal or report is licensed or certified by the Oklahoma Real Estate Appraisal Board;
14. Paying a commission or any other valuable consideration to any person for performing the services of a real estate broker or associate as defined in this Code who has not first secured a real estate license pursuant to this Code;
15. Unworthiness to act as a real estate broker or associate, whether of the same or of a different character as specified in this section, or because the real estate broker or associate has been convicted of a crime involving moral turpitude;
16. Commingling with the licensee's own money or property the money or property of others which is received and held by the licensee, unless the money or property of others is received by the licensee and held in an escrow account that contains only money or property of others;
17. Having been convicted in a court of competent jurisdiction of having violated any provision of the federal fair housing laws, 42 U.S.C. Section 3601 et seq.;
18. Failing, within a reasonable time after the receipt of a commission by a real estate broker, to render an accounting to and pay to a real estate licensee his or her earned share of the commission received;
19. Having been convicted in a court of competent jurisdiction in this or any other state of the crime of forgery, embezzlement, obtaining money under false pretenses, extortion, conspiracy to defraud, fraud, or any similar offense or offenses, or pleading guilty or nolo contendere to any such offense or offenses;
20. Advertising to buy, sell, rent, or exchange any real estate without disclosing that he or she is a real estate licensee;
21. Paying any part of a fee, commission, or other valuable consideration received by a real estate broker or associate licensed pursuant to this Code for services performed by the licensee in buying, selling, exchanging, leasing, or renting of any real estate, to any person not licensed;
22. Offering, loaning, paying, or making to appear to have been paid, a down payment or earnest money deposit for a purchaser or seller in connection with a real estate transaction; and
23. Violating the Residential Property Condition Disclosure Act.
Q. What are the Prohibited Dealings?
For the most updated version of this information go to the new OREC web site.
605:10-17-4. Prohibited dealings -- Within the meaning of Subsection 8 of Section 858-312 of the "Code," untrustworthy, improper, fraudulent or dishonest dealing shall include, but not be limited to, the following:
(1) The making of a listing, agency or service contract without a date of termination.
(2) Purchasing of property by a broker or associate for himself or another entity in which he has interest as defined in 605:10-15-1(c), if such property is listed with him or his firm, without first making full disclosure thereof and obtaining the approval of the owner, or the failure by the principal broker or an associate to exert his best efforts in order to later purchase or acquire the property for himself or another entity in which he has interest as defined in 605:10-15-1(c).
(3) Repeated misrepresentations, even though not fraudulent, which occur as a result of the failure by the principal broker or associate to inform himself of pertinent facts concerning property, as to which he is performing services.
(4) Procuring the signature to a purchase offer or contract or to any lease or lease proposal which has no definite purchase price or lease rental, or no method of payment, termination date, possession date or property description.
(5) The payment of any fees or amounts due the Commission with a check that is dishonored upon presentation to the bank on which the check is drawn.
(6) Lending a broker's license to a sales or broker associate; permitting a sales or broker associate to operate as a broker; or failure of a broker to properly supervise the activities of a sales or broker associate. A broker permitting the use of his license to enable a sales or broker associate licensed through him to, in fact, establish and conduct a brokerage business wherein the broker's only interest is the receipt of a fee for the use of his sponsorship.
(7) Failure to make known in writing to any purchaser any interest the licensee has in the property he is selling.
(8) Failure of the licensee to inform the buyer and seller at the time the offer is presented that he will be expected to pay certain closing costs, such as discount points and approximate amount of said costs.
(9) Failing, upon demand in writing, to disclose any information within licensee's knowledge, or to produce any document, book or record in licensee's possession or under licensee's control that is real estate related and under the jurisdiction of the Real Estate Commission, for inspection to a member of the Commission staff or any other lawful representative of the Commission.
(10) Failure to reduce a bona fide offer to writing, where a proposed purchaser requests such offer to be submitted.
(11) Failure to submit all written bona fide offers to an owner when such offers are received prior to the seller accepting an offer in writing.
(12) Any conduct in a real estate transaction which demonstrates bad faith or incompetency.
(13) Failing to act, in marketing his own property, with the same good faith as when acting in the capacity of a real estate licensee.
Q.What are the rules regarding broker trust accounts?
(a) Deposit and account of trust/escrow funds.
(1) The obligation of a principal broker to remit monies, valuable documents and other property coining into his possession within the meaning of subparagraph six (6). Section 858-312 of the "Code" shall be construed to include but shall not be limited to the following:
(A) Shall deposit all checks and monies of whatever kind and nature belonging to others in a separate bank account and is required to be a signor on the account;
(B) Such account must be styled as a trust or escrow account and shall be maintained by the broker as a depository for deposits belonging to others;
(C) All escrow funds shall be deposited before the end of the next banking day following acceptance of an offer by an offeree unless otherwise agreed to in writing by all interested parties;
(D) Shall maintain such funds in said bank account until the transaction involved is consummated or terminated and proper accounting made; and
(E) Shall at all times, maintain an accurate and detailed record thereof.
(2) Funds referred to in this subsection shall include, but are not limited to earnest money deposits. money received upon final settlements, rents, security deposits, money advanced by buyer or seller for the payment of expenses in connection with closing of real estate transactions, and money advanced by his principal or others for expenditures on behalf of subject principal.
(b) Commingling prohibited. A broker may not keep any personal funds in the trust account. except amounts sufficient to insure the integrity of the account and cover any charges made by the bank for servicing the trust or escrow account.
(c) Interest bearing account. A broker shall not be prohibited from placing escrow monies in an interest bearing account; however, he must disclose in writing to all parties that the account bears interest and identify the party receiving the interest. The Commission does not prohibit the broker from receiving the earned interest. In the event the interest is credited to the broker, the broker should, upon final consummation of the transaction, immediately disburse the interest from the account or insure that the amount does not exceed a reasonable amount to cover normal bank charges. The broker is required to maintain complete and accurate records of the interest earned on each trustor's funds. The interest bearing account must be a demand type account; this prohibits the use of certificate of deposit or other types of time deposits as trust/escrow accounts.
(d) Trust account not mandatory unless funds or items are held. A broker shall not be required to maintain a trust or escrow account unless monies or other depositable items belonging to others are accepted by the broker and require the broker to place the monies or items in the broker's trust account
(e) Trust accounts must be registered with commission. A broker shall be required to notify the Commission in writing of all trust or escrow accounts. security deposit accounts. rental management operating trust accounts, and interest bearing accounts in which trust funds are held. Further, a broker shall inform the Commission in writing of any accounts that are closed and no longer in use.
(f) Settlement statement to be furnished. A broker shall insure that a signed settlement statement is furnished in each real estate transaction wherein he acts as principal broker, at the time such transaction is consummated.
(g) Payment of funds. A broker shall pay over all sums of money held by him promptly after the closing of any transaction. provided, that upon any hearing to suspend or revoke his license under this section. the failure to pay over any sums of money held by him within three (3) days after a closing shall be prima facie evidence of a violation by such person under the provisions of this section.
(h) Earnest money returned to purchaser. A broker shall return the deposit or earnest money to the purchaser, if any owner should fail, refuse, neglect or be unable to consummate a transaction as provided for in the contract. and there has been no fault or neglect on the part of the purchaser. He shall not make claim to any portion of the earnest money or deposit money placed in his hands by the purchaser, even though a commission has been earned. In such event, he may not look to the purchaser for his compensation.
(i) Documents furnished to all parties. A broker shall insure the delivery of a duplicate original of all instruments to any party or parties executing the same, where such instrument has been prepared by him or his associates and relates to the employment by his principal or pertains to the consummation of a transaction in which he or one of his associates has participated. A duplicate original shall mean a document, no matter how prepared or reproduced, bearing the original signatures placed on the document after reproduction or entry of all other information.
(j) Inform all parties pertaining to escrow being held. A broker shall insure that all parties of each transaction are informed of the details relating to the escrow including, but not limited to, a statement as to the nature of a non-depositable item, the value of the item, and in whose custody the item is being placed.
(k) Bookkeeping system required. A broker shall maintain a bookkeeping system which will accurately and clearly disclose full compliance with the Law relating to the maintaining of trust accounts.
(1) Record retention. A broker shall maintain all records and files for a minimum of five (5) years after consummation or termination of a transaction. In the case of trust account records the five years shall commence with the date of disbursal of funds.
Q. What are the rules for closing your real estate operation?
Guidelines for cessation of real estate activities. Upon a firm ceasing a portion of real estate activities or ceasing all real estate activities the broker shall:
(1) Notify the Commission in writing of the effective date of such action and advise as to the location where records will be stored and comply with the following:
(A) Return all wall certificates and pocket identification cards under the broker's control to the Commission and advise the Commission as to the circumstances involving any not returned;
(B) Release forms must be filed for all licensees affiliated with the firm; and
(C) The principal broker must either transfer to a new firm or place his license on inactive status.
(2) Notify in writing all listing and management clients, as well as parties and co-brokers to existing contracts advising them of the date of cessation of real estate activities;
(3) All advertising in the name of the firm must be terminated and offering signs removed within thirty (30) days of cessation of real estate activities;
(4) Funds in trust accounts and pending contracts must be maintained by the responsible broker until consummation of transaction and final proper disbursal of funds. The Commission is to be notified in writing of any accounts that are closed.
(5) Under an emergency situation, funds and/or pending contracts may be required to be transferred to another authorized broker, entity or legal representative until consummation and proper disbursal of funds. In the event of an emergency, the broker must submit a request in writing to the Commission for approval to transfer the contracts and/or funds. Upon written approval by the Commission, the broker must secure approval and obtain new agreements from all parties for transfer of the contracts and/or funds;
(6) If funds, items and/or contracts are transferred to another authorized broker, entity or legal representative and approved by the Commission, the broker transferring such shall be required to compile a record of the following, retain a copy for his files and give a copy to the receiving authorized broker, entity or legal representative:
(A) a copy of the written approval from the Commission authorizing the transfer of the contracts and/or funds;
(B) the name and address of the authorized broker, entity or legal representative;
(C) a trust account reconciliation sheet indicating ledger balance and bank balance at time of transfer to include the name of each depositor, amount of deposit, date, and purpose of the deposit;
(D) a statement indicating that written agreements were obtained from all parties to each transaction agreeing to the transfer of the funds and/or contracts to another responsible broker, authorized entity or legal representative and that each depositor was notified of the effective date of transfer, and the name of the responsible person or entity.
Last Update: 10 SEP 02
Web Author: Vince Mooney, Office: 918-665-0478
Copyright ©2001 by Vince Mooney Real Estate School & Seminars, Inc. - ALL RIGHTS
RESERVED