Free Rhode Island Real Estate Practice Exam Questions (November 2024) 50+

Rhode Island administrative code requires brokers to keep full and complete records of all their real estate transactions and escrow accounts for a minimum of three years. Per 5-20.5-26 Escrows

Rhode Island's Real Estate Recovery Account is administered by the Rhode Island Department of Business Regulation. Its primary purpose is to compensate members of the public for money they lost due to the wrongdoing of a licensed real estate agent (broker or salesperson).

All advertising must be made in the name of the employing broker, not the licensee. A telephone number is not sufficient, and the property owner does not have to be identified.

For a month-to-month tenancy, the landlord must provide a 30-day notice. For a year-to-year lease, the landlord must provide notice of at least three months. Per the Residential Landlord and Tenant Act of Rhode Island

Rhode Island is NOT a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

John must cease any real estate activities until he renews his insurance. “Cancellation or any other interruption in required insurance coverage shall require the licensee to cease any real estate activities requiring licensure immediately until such time as the licensee is in compliance with R.I. Gen. Laws § 5-20.5-25.” Per 2.28 Errors and Omission Insurance

“Every real estate broker, when renewing his or her license during the following calendar year, shall pay, in addition to his or her license renewal fee, a fee of twenty-five dollars ($25.00) for deposit in the real estate recovery account, and every real estate salesperson, when renewing his or her license during that year, shall pay, in addition to his or her license renewal fee, a fee of twenty-five dollars ($25.00) for deposit in the real estate recovery account.” Per 5-20.5-5 Real estate recovery account.

To renew your license, you must obtain 24 hours of continuing education during each full licensure renewal period.

“If a corporation, by a fine of not less than two thousand dollars ($2,000) nor more than five thousand dollars ($5,000).” Per 5-20.5-17. Penalties for violations

The Rhode Island Real Estate Commission consists of nine people. “consist of nine (9) persons at least one from each county to be appointed by the governor.” Per Rhode Island General Laws 5-20.5-12. Commission

“Provided, that pursuant to subsection (h) of this section the amount available for payments of claims is limited to fifty thousand dollars ($50,000) for any one licensee.” Per 5-20.5-5 Real estate recovery account.

Reselling mobile homes do not require a real estate license unless land or real property is part of the sale because. In Rhode Island, mobile homes are considered personal property. Selling or managing real estate for another is considered a real estate activity for which a license is required, and a person who collects rent must also be licensed.

Per Rhode Island Fair Housing Law, a person has one year to file a complaint with the Rhode Island Commission for Human Rights.

The authority to make and enforce the rules by which all real estate licensees must abide. The Rhode Island Department of Business Regulation director has the power to write and enforce the rules and regulations by which all real estate licenses must abide. The Rhode Island legislature enacts the law; the exam questions are written and administered by an independent testing service and reviewed by the real estate commission.

Unlike some states, in Rhode Island, there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

Placing a sign on any property offering it for sale or lease without the written consent of the owner or the owner’s authorized agent is a violation of Rhode Island. It's essential agents get written permission before they put down a for-sale sign.

“The landlord shall deliver the notice, together with the amount of the security deposit due to the tenant, within twenty (20) days after the later of either termination of the tenancy, delivery of possession, or the tenant's providing the landlord with a forwarding address for the purpose of receiving the security deposit.”

The statute of frauds refers to the requirement that certain kinds of contracts be in writing, and signed. Every state has a statute that requires certain types of contracts to be in writing and signed by the party to be charged. The most common requirements are for contracts that involve the sale or transfer of land, and contracts that cannot be completed within one year.

The broker accepted an illegal listing. This listing would be considered a net listing and is illegal per Rhode Island License Law.

“A licensee must notify the Department within five (5) business days if his or her insurance coverage is canceled or otherwise interrupted. Failure to provide the required notice to the Department shall subject the licensee to disciplinary action” Per 2.28 Errors and Omission Insurance

“If a corporation, is punishable by a fine of not less than one thousand dollars ($1,000) nor more than two thousand dollars ($2,000).” Per 5-20.5-17. Penalties for violations

Some states. Rhode Island has full reciprocity with Connecticut and Massachusetts.

The Rhode Island Department of Business Regulation issues licenses to real estate licenses.

A seller's disclosure of known property conditions is required by Rhode Island Law. Property disclosures must be made for the sale of all one- to four- dwelling units per law. Required disclosures cover a wide range of potential problems, and the agent should most definitely encourage the seller to be honest and disclose all known property conditions.

Two years. To obtain a broker’s license in Rhode Island, one must have two years of full-time experience as a real estate salesperson, validated by the employing broker, successfully complete 90 hours of approved real estate courses, be at least 21 years of age, and be of good moral character. Per Rhode Island Real Estate Licensing Requirements.

Anyone selling or renting their OWN property does not need a license to do so. People need a real estate license if they are selling someone else's property. Per Rhode Island Real Estate Law.

Rhode Island commission members must be Rhode Island residents for the ten years preceding their nomination to the commission in order to be eligible to serve. “..each of whom has been a citizen of this state for at least ten (10) years prior to the date of appointment.” Per Rhode Island General Laws 5-20.5-12. Commission

“A landlord may not demand or receive a security deposit, however denominated, in an amount or value in excess of one month's periodic rent.” Per 34-18-19. Residential Landlord and Tenant Act. Security deposits.

Under agency law in Rhode Island Dual Agency is legal but only with the consent of all parties to the transaction. Dual Agency is when the broker owes both the seller and buyer a duty to deal with them fairly and honestly. In this type of agency relationship, the broker represents each party.

“If, on December 31 of any year, the balance remaining in the real estate recovery account is less than two hundred thousand dollars ($200,000), every real estate broker….” Per 5-20.5-5 Real estate recovery account.

The salesperson will have to inform the owner in writing that the salesperson is a licensee before making the offer. Rhode Island license law requires agents to disclose that they have a license in a purchase agreement regarding themselves.

Rhode Island Fair Housing law probits landlords from refusing to rent apartments to visually impaired persons on the basis of the owner's "no pets" policy. It also prohibits charging extra for seeing eye dogs, like in Matts's situation. So Keith could only charge $1,000.

Property condition disclosures must be no later than prior to signing any agreement to transfer real estate. “As soon as practicable, but in any event, no later than prior to signing any agreement to transfer real estate, the seller of the real estate shall deliver a written disclosure to the buyer and to each agent with whom the seller knows he or she or the buyer has dealt in connection with the real estate.

Agents do. “When any person makes an application for an original license to practice as a real estate broker or salesperson he or she shall pay, in addition to his or her original license fee, a fee determined by the department for deposit in the real estate recovery account.” Per 5-20.5-5 Real estate recovery account.

The Rhode Island Real Estate Commission is composed of nine members, all of which are appointed by the Governor.

Rhode Island real estate license law requires that all listings must contain a definite termination date. “Failing to specify a definite termination date that is not subject to prior notice, in any listing contract” 5-20.5-14. Revocation, suspension of license.

The Rhode Island Department of Business Regulation requires all real estate licensees to provide proof of errors and omissions insurance in order to obtain or renew a broker's or sales license.

“Any person upon conviction of a second or subsequent offense is punishable by a fine of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000), or by imprisonment for a term not to exceed two (2) years, or both” Per 5-20.5-17. Penalties for violations

Rhode Island Leasees have the right to repair and deduct. Tenants can repair the issue themselves after 20 days of notice (or less in the case of an emergency). The tenant must first notify the landlord that they intend to fix the issue at the landlord’s expense. The tenant may deduct a reasonable amount for the repair following the next month’s rent if the reasonable cost of repairs is less than $125 and the tenant provides the landlord with an itemized list of the costs.

Military status is protected. Rhode Island's fair housing law prohibits housing discrimination on the basis of race, color, religion, sex, disability, familial status, national origin, age, sexual orientation, gender identity or expression, marital status, veteran or military status, status as a victim of domestic violence, and source of income.

Rhode Island is an intermediary theory state. Intermediary theory states function where the borrower retains the title however, the lender can take back the title if the borrower defaults on the loan (without judicial proceedings).

Fair housing complaints are directed to The Rhode Island Commission for Human Rights or the HUD. Private organizations and Attorney Generals do not receive discrimination complaints.

In Rhode Island, all of the following are legal except a Net listing. “No licensee shall enter into a “net listing” contract for the sale of real property or any interest therein.” Per Real Estate Brokers and Salespersons Regulation Text.

Potentially all of the above. “Any person acting as a broker or as a salesperson without first obtaining a license is guilty of a misdemeanor and, upon conviction, is punishable by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or by imprisonment for a term not to exceed one year or both” Per 5-20.5-17. Penalties for violations

The Rhode Island Residential Landlord and Tenant Act is designed to simplify and clarify, the laws governing the rental of dwelling units and the rights and obligations of both landlords and tenants. Essentially, it's the main law covering all landlord-tenant relations.

Commingling is when a licensee mixes funds held in care for a client with their own funds.

No, it is not. “The maintenance of nominal amounts of the licensee’s funds in escrow accounts solely to provide continuity in such accounts or to meet bank service charges shall not be construed to be commingling.” Per 2.18 Client Funds

Unless the commission agreement between the brokerage and licensee is different, all commission splits must be paid within ten days of the brokerage receiving their commission. Per Rhode Island License Law

Rhode Island's fair housing law prohibits housing discrimination on the basis of race, color, religion, sex, disability, familial status, national origin, age, sexual orientation, gender identity or expression, marital status, veteran or military status, status as a victim of domestic violence, and source of income. Hair color is not protected.

For a month-to-month tenancy, the landlord must provide a 30-day notice. For a year-to-year lease, the landlord must provide notice of at least three months. Per the Residential Landlord and Tenant Act of Rhode Island