Brookerage Operation Flashcards
How long does the deposit stay in trust?
Until escrow closing
What happens if the earnest money deposit check bounces?
The broker informs all parities in writing
What if tue buyer asks you to hold their deposit check until the next payday?
Take a promissory note along with the check
To whom does a buyer write out a deposit check?
The responsible broker’s company trust account
A broker is holding the earnest money deposit in the firm’s trust account. Who disburses this deposit and when?
A broker when the transaction closes
An agent accused of “pulling” may be guilty of
Exaggerating a properties features
A broker who places entrusted funds into their brokerage checking account is guilty of
Commingling
Prior to a closing a broker uses trust account funds to pay the office lease. The broker is guilty of
Conversion
A salesperson without a law degree may be guilty of the unauthorized practice of law if they
Independently draft an offer to purchase for a buyer
H & W Corporation wishes to purchase a building for the general offices. How is the company vested into title?
Severalty
Johnson and Tillman each invest $100,000 in a business endeavor. The business fails after a few years and they each lose their investment, but Tillman is deemed liable for even more. What type of business structure did they form?
Limited partnership
A broker hires several sales associates. The broker trains and assists the sales associates to make them more productive. What is true if the associates are classified independent contractors?
The broker has the right to direct the result of the work but not the means of the accomplishing the result
If a buyer exercises due diligence in their purchase what are they doing?
Research and analysis of the property
A broker and her associates have a written commission policy which stipulates that the only compensation the agents will receive is 70% of the gross commission paid to the office for each closing they broker. Such a written agreement is
Illegal is the associates are employees
The commission amount an agent receives is determined by
Each broker for their office
A broker’s duty to advance their principal’s interests, even at the expense of their own interest is called
Good faith and loyalty
A broker distributes property information gathered from the county and city records. Relying on the information a buyer purchases the property. Later some of the information is found to be inaccurate and buyer sues the broker. What type of broker insurance may defend the broker?
Errors and omissions
A salesperson works for a broker and is assigned 40 hours work week at a particular subdivision. For IRS purposes what status is the salesperson
Employee
One of the disadvantages of using a corporation as a form of business ownership is that
Double taxation
A broker advertises a property for sale and deletes any reference to the company name. This style of ad is
A blind ad
A commercial property manager is usually an agent of the
Owner
The fee arrangement between a property manager and the owner is set by
Negotiated between manger and owner
Who should be aware of the provisions of the ADA when leasing property?
The landlord, the residential property manager, the commercial property manager
