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Quiz
Question 1/101/10
Duties and Powers of the Kansas Real Estate Commission
Duties and Powers of the Kansas Real Estate Commission
Duties and Powers of the Kansas Real Estate Commission
Which statement accurately describes the statutory composition of the Kansas Real Estate Commission?
Select the answer:Select the answer
1 correct answer
A.
Seven members appointed by the governor, one from each judicial district, each serving a six-year term.
B.
Five members appointed by the governor, all of whom must have been licensed Kansas brokers for at least five years.
C.
Five members appointed by the governor, one from each congressional district and the remainder from the state at large, serving four-year terms.
D.
Five members elected by a vote of Kansas licensees, at least two of whom must never have been brokers.
Explanation: K.S.A. 74-4201(a) provides that the Kansas real estate commission consists of five members appointed by the governor, with one member appointed from each congressional district and the remainder from the state at large. Because Kansas has four congressional districts, that produces four district members plus one at-large member. Under 74-4201(b) the governor appoints a successor for a term of four years and until a successor is appointed and qualifies, and a vacancy is filled only for the unexpired portion of the vacated term. Each member must have been a citizen and resident of Kansas for the five years immediately preceding appointment, and each must take and file an oath with the commission before entering upon the duties of office. The membership is deliberately mixed: not less than three members must have been real estate brokers for five years, and not less than one member must never have engaged in business as a real estate broker and may not be so engaged while serving, which is the consumer seat. That consumer requirement is why an all-broker commission is impossible, and the members are appointed by the governor rather than elected by licensees.
Right Answer: C
Quiz
Question 2/102/10
Licensing Requirements
Licensing Requirements
Licensing Requirements
An auctioneer conducting a real estate auction in Salina hires an unlicensed helper who, for a flat fee, works the crowd spotting and calling out bids on the tract being sold. How does the Kansas license act treat the helper's conduct?
Select the answer:Select the answer
1 correct answer
A.
No license is required because auctioneers and persons assisting auctioneers are exempt under K.S.A. 58-3037.
B.
A license is required because assisting an auctioneer by procuring bids at a real estate auction is one of the activities listed in K.S.A. 58-3035(f).
C.
A license is required only if the helper also signs the purchase contract on the seller's behalf.
D.
No license is required because the helper participated in a single transaction rather than conducting a continuing business.
Explanation: K.S.A. 58-3036 makes it unlawful to perform, offer, attempt or agree to perform any act described in K.S.A. 58-3035(f) without a license, and it says so whether the act is part of a transaction or an entire transaction, so a one time engagement is not a free pass. The fifth activity in the definition of broker expressly reaches a person who auctions or offers, attempts or agrees to auction real estate or who assists an auctioneer by procuring bids at a real estate auction. Spotting and calling bids for compensation on behalf of the seller is exactly that conduct. Kansas deliberately omitted any auctioneer exemption from the closed list in K.S.A. 58-3037, which runs from owners acting on their own property through agricultural leases; neither an auctioneer nor an auctioneer's assistant appears anywhere in it. Nothing in the act keys licensure to who signs the contract, because the listed activities include negotiating, procuring prospects and procuring bids long before any signature. Unlicensed activity exposes the person to a cease and desist order under K.S.A. 58-3065(c), the criminal penalty of K.S.A. 58-3065(a), and the loss of any right to sue for the fee under K.S.A. 58-3038.
Right Answer: B
Quiz
Question 3/103/10
Requirements Governing Activities of Licensees
Requirements Governing Activities of Licensees
Requirements Governing Activities of Licensees
Under K.S.A. 58-3060(a), where must a licensed resident Kansas broker and a licensed nonresident broker each maintain a primary office?
Select the answer:Select the answer
1 correct answer
A.
Both must maintain a primary office physically located within the state of Kansas
B.
A resident broker in Kansas or in an adjoining state; a nonresident broker in the broker's state of residence or in the state of Kansas
C.
A resident broker only in Kansas; a nonresident broker only in the nonresident's state of residence
D.
Either may maintain the primary office in any state so long as a Kansas registered agent is designated with the commission
Explanation: K.S.A. 58-3060(a) sets two parallel rules. Each licensed resident broker must have and maintain a primary office in the state of Kansas or in an adjoining state, and each licensed nonresident broker must have and maintain a primary office in the broker's state of residence or in the state of Kansas. Kansas therefore does not confine resident brokers to in-state locations; a Kansas resident broker whose brokerage sits just across the line in Missouri, Nebraska, Oklahoma or Colorado satisfies the statute. Conversely, a nonresident broker is not forced into Kansas; the broker's home state qualifies. Candidates often assume the strictest possible reading, that every office must be inside Kansas, or the mirror error that a nonresident may never register a Kansas location. Both misread the statute. Note also the vocabulary: Kansas uses the term primary office, defined in K.S.A. 58-3035 as the supervising broker's principal place of business for each company the broker creates or establishes. Kansas does not use the phrase definite place of business found in some other states' license laws. There is no registered agent substitute for the office requirement, and commission guidance requires a physical street address, with a post office box permitted only as a supplement.
Right Answer: B
Quiz
Question 4/104/10
Prohibited Acts
Prohibited Acts
Prohibited Acts
An associate broker in Salina manages rental houses and deposits every tenant payment into the supervising broker's trust account, keeping accurate ledgers, but for five months the broker has sent the owners neither their proceeds nor any statement. Which prohibited act does this conduct most directly establish?
Select the answer:Select the answer
1 correct answer
A.
Commingling money or property of principals with the licensee's own money
B.
Failing to account for and remit money that comes into the licensee's possession and belongs to others
C.
Failing without just cause to surrender a document or instrument to the rightful owner
D.
Misappropriating money required to be deposited in a trust account by converting it to the licensee's personal use
Explanation: K.S.A. 58-3062(a)(1) prohibits a licensee from failing to account for and remit any money which comes into the licensee's possession and which belongs to others. The paragraph imposes two linked obligations, and satisfying only one does not cure the violation. Here the ledgers show the money is accounted for internally, but nothing has been remitted to the people who own it and no accounting has been rendered to them, so the prohibition is squarely violated. Nothing in the facts shows the funds were mixed with the broker's operating money, which is what commingling means, and nothing shows the funds were taken for the broker's own benefit, which is what misappropriation and conversion mean; those are separate wrongs described in K.S.A. 58-3062(a)(2). The refusal-to-surrender prohibition addresses documents and instruments, not funds. Candidates should also recognize that proper deposit under K.S.A. 58-3061 is not a defense to nonpayment, because the trust account is a custodial device rather than a permanent holding place. Money held for others must be paid out to the beneficiaries as their agreement requires, and the broker must be able to show, transaction by transaction, whose money is in the account and what became of it.
Right Answer: B
Quiz
Question 5/105/10
Brokerage Relationships in Real Estate Transactions Act (BRRETA)
Brokerage Relationships in Real Estate Transactions Act (BRRETA)
Brokerage Relationships in Real Estate Transactions Act (BRRETA)
A Lawrence salesperson shows homes to a prospective buyer for three weeks, tells the buyer orally that she will look out for his interests, and gives him advice on price strategy, but nothing is ever signed. What is the buyer's status under BRRETA?
Select the answer:Select the answer
1 correct answer
A.
The buyer became a client when the licensee orally agreed to look out for his interests, because oral agency is permitted for buyers.
B.
The buyer is a customer, because BRRETA defines agency as a relationship in which a broker acts for or represents another by that person's express written authority.
C.
The buyer is a client, because a course of dealing over several weeks creates an implied agency in Kansas.
D.
The buyer is neither a client nor a customer until the licensee furnishes the real estate brokerage relationships brochure.
Explanation: K.S.A. 58-30,102(b) defines agency as every relationship in which a broker acts for or represents another, by the latter's express written authority, in a real estate transaction. Written authority is the only route into agency, with one narrow addition: the definition also covers a relationship created by verbal authorization under K.S.A. 58-30,103(d)(2) for an agency of the federal government in the sale of property owned by that federal agency. Kansas therefore has no implied agency, no oral buyer agency, and no agency by course of conduct. K.S.A. 58-30,102(c) reinforces the point by defining an agency agreement as a written agreement setting forth the terms and conditions of the relationship between a broker and the broker's client. The client and customer definitions turn on that same distinction: under subsection (g) a client is a seller, landlord, buyer or tenant who has an agency with a broker, and under subsection (j) a customer is a seller, landlord, buyer or tenant in a transaction in which a broker is involved but who has not entered into an agency with the broker. Because nothing was signed, this licensee is working with a customer, and under K.S.A. 58-30,103(c) she is considered a transaction broker.
Right Answer: B
Quiz
Question 6/106/10
Broker Only Topics
Broker Only Topics
Broker Only Topics
An elderly Salina landowner gives her nephew a durable power of attorney and asks him to sell her farmstead. The nephew, who holds no real estate license, advertises the tract, negotiates with buyers, and signs the contract for his aunt. At closing the aunt directs the title company to pay the nephew $4,000 out of her proceeds "for his time and mileage." Is the nephew within the licensure exemption?
Select the answer:Select the answer
1 correct answer
A.
Yes, because a power of attorney is a recorded instrument and the holder of a power of attorney is exempt from licensure without qualification.
B.
Yes, because the payment came from the owner's own sale proceeds rather than from a commission split with a licensed broker.
C.
No, because the exemption for a person acting under a power of attorney applies only if that person receives no commission or other compensation, direct or indirect.
D.
No, because a power of attorney holder is never exempt unless a court appoints the holder as a fiduciary for the owner.
Explanation: K.S.A. 58-3037(b) exempts a person acting under a power of attorney from the owner, but only "provided that such person receives no commission or other compensation, direct or indirect." The words direct or indirect are the trap. It does not matter that the payment was labeled reimbursement for time and mileage, that it came out of the owner's own proceeds, or that no licensed broker was involved. Once value flows to the attorney in fact for performing activities described in K.S.A. 58-3035(f), the exemption evaporates and the nephew has engaged in unlicensed activity under K.S.A. 58-3036, exposing him to the criminal penalties of K.S.A. 58-3065 and barring any court action for compensation under K.S.A. 58-3038. The separate exemption in K.S.A. 58-3037(d) covers a receiver, trustee in bankruptcy, administrator, executor or guardian, and a person acting under a court order or under the authority of a will or a trust instrument, and that exemption is not conditioned on being uncompensated. A power of attorney is not a court appointment and is not a will or trust instrument, so borrowing the fiduciary exemption does not work here. The list of exemptions in K.S.A. 58-3037 is exclusive and each subsection must be satisfied on its own terms.
Right Answer: C
Quiz
Question 7/107/10
Duties and Powers of the Kansas Real Estate Commission
Duties and Powers of the Kansas Real Estate Commission
Duties and Powers of the Kansas Real Estate Commission
At a Kansas Real Estate Commission meeting in Topeka the chairperson is absent and only three of the five members are present. Which statement is correct?
Select the answer:Select the answer
1 correct answer
A.
Three members constitute a quorum, and the vice-chairperson may exercise all of the powers of the chairperson.
B.
Four members must be present because the commission may act only by supermajority.
C.
No business may be transacted, because a quorum requires all five members whenever discipline is considered.
D.
The director may vote in the chairperson's absence in order to establish a quorum.
Explanation: K.S.A. 74-4202(a) states that a majority of the members of the commission constitutes a quorum for the exercise of the powers or authority conferred upon it, so three of five members is enough to act, including on disciplinary matters. That same subsection requires the members, at the first meeting after January 1 of each year, to elect a chairperson and a vice-chairperson from their own membership for terms of one year, and it provides that the vice-chairperson exercises all of the powers of the chairperson in the chairperson's absence. Meetings are held in the city of Topeka or at such other places as the commission determines, at times it designates and on the request of two or more members, and the commission must maintain an office in the city of Topeka under 74-4202(e). The director employed under K.S.A. 74-4203 keeps the record of all proceedings, hearings, meetings, communications and official acts, and must call a meeting upon written request of two or more members, but the director is staff and holds no vote. The attorney general renders legal opinions and acts as attorney for the commission under 74-4206.
Right Answer: A
Quiz
Question 8/108/10
Licensing Requirements
Licensing Requirements
Licensing Requirements
A salaried on site manager of an office building in Overland Park shows suites, negotiates lease terms and signs leases for the owner, and holds no ownership interest in the owning company. Does the manager need a Kansas real estate license?
Select the answer:Select the answer
1 correct answer
A.
No, because an employee performing acts with reference to the employer's property is exempt in every case.
B.
No, because the resident manager exemption in K.S.A. 58-3037 applies whenever compensation is a fixed salary rather than a commission or bonus.
C.
Yes, because the employee exemption requires the employee to own a 5% or greater interest in the owning person or entity.
D.
No, because the definition of lease in K.S.A. 58-3035(j) reaches only residential occupancy.
Explanation: Kansas has no resident manager or property manager exemption. The only employee exemption is K.S.A. 58-3037(i), which excuses the sale or lease of real estate by an employee of the owning or leasing person or entity only if that employee owns a 5% or greater interest in the entity or its stock. A salaried manager with no ownership stake therefore performs licensed activity when negotiating and closing leases, because negotiating and leasing appear among the activities in K.S.A. 58-3035(f) and are done for compensation on behalf of the owner. The exemption list in K.S.A. 58-3037 is exhaustive, so an exemption that is not written into it does not exist no matter how the pay is structured. The definition of lease in K.S.A. 58-3035(j) points the opposite way from the common misconception: it means to rent or lease for nonresidential use, so commercial office leasing is squarely covered while residential occupancy falls outside that defined term, and agricultural leases are separately exempt under K.S.A. 58-3037(k). Managers in this position ordinarily must hold a salesperson or broker license placed with a supervising broker, or restructure to fit an actual statutory exemption.
Right Answer: C
Quiz
Question 9/109/10
Requirements Governing Activities of Licensees
Requirements Governing Activities of Licensees
Requirements Governing Activities of Licensees
A Kansas supervising broker whose primary office is in Topeka opens a second staffed location in Lawrence where three salespersons regularly meet clients and hold themselves out as an office. What does K.S.A. 58-3060(b) require?
Select the answer:Select the answer
1 correct answer
A.
The Lawrence location may operate as an extension of the primary office because the supervising broker continues to supervise every affiliated licensee
B.
The Lawrence location must be registered with the commission as a second primary office under its own trade name
C.
The Lawrence location is a branch office, and a branch broker must be designated to supervise that office and the activities of the salespersons and associate brokers assigned to it
D.
The supervising broker must obtain a commission waiver because a supervising broker may not supervise more than one office
Explanation: K.S.A. 58-3060(b) provides that the supervising broker oversees the primary office and the licensees assigned there, and that each additional office or place of business other than the primary office shall be designated a branch office, with a branch broker designated to supervise that office and the activities of the salespersons and associate brokers assigned to it. A permanent second location where licensees regularly conduct real estate business cannot simply be treated as an informal satellite of the primary office; the statute forces a formal branch designation and a named branch broker. Only one primary office exists per company created or established by the broker, so registering a second primary office is not the mechanism, and a branch office must use the same trade name as the primary office under K.S.A. 58-3079(b) rather than adopting its own. Nothing in K.S.A. 58-3060 or K.A.R. Agency 86 caps the number of offices a supervising broker may supervise, so no waiver is needed; a broker may supervise more than one office. The branch structure matters for records too, because K.S.A. 58-3061(b) makes a branch broker responsible for branch trust account records and the related transaction files.
Right Answer: C
Quiz
Question 10/1010/10
Prohibited Acts
Prohibited Acts
Prohibited Acts
An associate broker in Wichita buys a two-family dwelling at a time when the mortgage loan on it is already in default. She gives written notice of the purchase to the mortgage holder within 20 days and applies the rent she collects to the mortgage loan as payments come due. She then rents the upstairs unit to a tenant. What further duty does K.S.A. 58-3062(a)(24) impose on her?
Select the answer:Select the answer
1 correct answer
A.
She must give the renter written notice within 20 days after the lease is signed stating the amount still owing on the mortgage loan.
B.
She must notify the renter, at the time of rental, of the extent and nature of her interest in the dwelling and the probable time until possession will be taken by the mortgage holder.
C.
No further duty arises, because notice to the mortgage holder and application of the rent proceeds satisfy the subsection in full.
D.
She must deposit the rent and the tenant's security deposit in her supervising broker's trust account and give the tenant a copy of the foreclosure petition.
Explanation: K.S.A. 58-3062(a)(24) restricts a licensee's purchase of equity in one-, two-, three- or four-family dwellings, including condominiums and cooperatives, and it is built from three independent subparagraphs. Two of them protect the creditor. Where the dwelling is subject to a right of redemption from mortgage foreclosure at the time of purchase, or is subject to a mortgage loan in default at the time of purchase or in default within one year after the purchase, the licensee must give written notice of the purchase to the mortgage holder or judgment creditor within 20 days after the purchase and must apply rent proceeds to the judgment lien or the mortgage as payments come due, regardless of whether the licensee is obligated on the loan. The third subparagraph protects the occupant instead of the creditor: the licensee must notify any renter, at the time of rental, of the extent and nature of the licensee's interest in the property and the probable time until possession will be taken by the mortgage holder or judgment creditor. Satisfying the creditor-side duties does not excuse the tenant disclosure, because each subparagraph stands on its own. The 20-day clock runs to the creditor after the purchase, not to a tenant after a lease, and the handling of rents and security deposits in a trust account is governed separately by K.S.A. 58-3061.
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Quiz name:ReKS-Broker: KS Broker
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