Nebraska Real Estate Broker Exam — All Questions

Under the Nebraska Real Estate License Act, the State Real Estate Commission is made up of:

• a.Nine members chosen by the Legislature from a list the state association submits
• b.Seven licensed brokers appointed by the Governor, two from each congressional district
• c.The Attorney General as chairperson plus six members elected by Nebraska licensees
• d.The Secretary of State as chairperson plus six members appointed by the Governor✓

Section 81-885.07(1)(a) creates the commission as the Secretary of State, who chairs it, and six gubernatorial appointees. Three of those six must be active licensed brokers with at least five years in the business, one from each congressional district; the other three are at large — one representative of the public, one salesperson with at least three years, and one broker with at least five. The Attorney General holds no seat: under section 81-885.09 that office supplies the commission with legal opinions instead. Commissioners are appointed by the Governor rather than elected by licensees, and the Legislature does not make the appointments.

What is the term of a member appointed to the Nebraska Real Estate Commission?

• a.Six years, and the member may serve only one full term of that length✓
• b.Three years, and the member may serve two consecutive terms in a row
• c.Five years, and the member must sit out one year before reappointment
• d.Four years, and the member may serve any number of consecutive terms

Section 81-885.07(2) directs the Governor to appoint a successor for a term of six years and limits an appointed member to one six-year term in addition to any partial term served filling a vacancy. The same subsection requires at least four members to be present at any official meeting, and treats the action of a majority of members as the action of the commission. A member may not hold any other elective or appointive state or federal office while serving.

When must the Nebraska Real Estate Commission investigate the actions of a licensee?

• a.Whenever a court has first entered a civil judgment against that licensee
• b.On the sworn written complaint of any person; it may also act on its own motion✓
• c.Whenever a client of that licensee files a sworn written complaint, but not otherwise
• d.Whenever the licensee's designated broker files a sworn written complaint

Section 81-885.24 opens by providing that the commission may act upon its own motion and shall act upon the sworn complaint in writing of any person. Two things follow. The duty is triggered by any person, so the complainant need not be a client or the licensee's broker. And no court judgment is a precondition — the commission's investigative and disciplinary track runs independently of civil litigation, which is why Clark v. Tyrrell held that double jeopardy has no application to discipline under this section.

How far in advance must the Commission notify a Nebraska licensee of a disciplinary hearing?

• a.At least sixty days before the date set for the hearing
• b.At least thirty days before the date set for the hearing
• c.At least twenty days before the date set for the hearing✓
• d.At least ten days before the date set for the hearing

Section 81-885.25(2) requires written notice of the date and place of the hearing at least twenty days before that date. Under subsection (1) the commission must first send the licensee a copy of the complaint containing the charges and give a hearing, unless the licensee waives the hearing and executes a consent order. Where the licensee is an associate broker or salesperson, the commission also mails a copy of the notice to the employing broker's last known business address.

What limits the total civil fine the Nebraska Real Estate Commission may impose on one complaint?

• a.A flat five hundred dollars for every separate violation the complaint alleges
• b.The greater of five thousand dollars or the commission earned in each transaction at issue✓
• c.A flat ten thousand dollars, without regard to the transactions the complaint covers
• d.The lesser of one thousand dollars or the commission earned in the transaction at issue

Section 81-885.10(1) lets the commission fine a licensee for each violation alleged in a complaint on which it finds guilt, capping the total for each complaint at the greater of five thousand dollars or the total commission the licensee earned in each transaction the complaint covers. The fine may stand alone or accompany censure, suspension, revocation, or a consent decree. A different ceiling governs unlicensed activity: under section 81-885.03(3), violating a cease and desist order exposes the violator to the greater of one thousand dollars per day or all money earned as commission.