Chapter 14 - Broker Operational Procedures

Question 1

Who supervises the broker’s branch office?

Answer 1

The broker needs to hire a managing broker to oversee the office. The broker may supervice the main office and can be broker for one than one firm, but firms must be in the same office

The broker open’s branch offices and will need a license for each location

Question 2

Where can a broker keep their place of business?

Answer 2

A location w/ at least one enclosed room or building where negotiations and closing of transactions can be conducted in privacy. Must be able to maintain books, records, and files

Office may be in the residence of the broker. Broker must have a sign on or about the entrance of the office, which can be easily seen and read

Question 3

What happens if a branch office broker dies, is disabled, retires, or leaves company?

Answer 3

Broker must appoint a new branch officer broker and file appropriate docs within 10 days of event

Question 4

What are the obligations of the broker to all parties in a transaction (may not be waived)?

Answer 4

• treat all parties w/ honesty and reasonable care/diligence
• unless specifically waived in writing by party:
  
  • receive all written offers and counteroffers
  • reduce all offers/counters to written form on requrest
  • present timely all written offers/counters
• timely account all written offers and counters
• keep confidential info confidential
• disclose info as required by disclosure act
• comply w/ requirements in cod

Question 5

The brokers has obligations to party whom he is providing brokerage services (may not be waived):

Answer 5

• inform when offer is made and expected to pay costs

- keep party informed of transaction

Question 6

What responsibilities does a broker still have after a relationship has terminated?

Answer 6

• account for all monies and property
• keep confidential info confidential during broker’s relationship w/ party
• any provisions specified in the broker’s agreement

Question 7

What accounting of services must a broker do if he accepts fees in advance of providing services?

Answer 7

• provide a detailed accounting of expenditures to client within 10 days after time specified to perform services or on written request from client
• but no longer than 1 year from date of contract

Question 8

What are the rules around a broker’s trust or escrow account?

Answer 8

• a broker doesn’t have to maintain a trust or escrow account unless monies or other items are accepted
• a broker can accept money into a trust or escrow account, or have funds made payable to the title company
• examples of fund are earnest money, rents and security deposits, and money advanced for expenses

Question 9

What are the requirements and rules pertaining to a broker who maintains a trust account?

Answer 9

A) broker shall deposit all checks/money in a separate account in a financial institution insured by agency of fed gov
B) broker is required to be a signor on account
C) account must be in name of broker as it appears on the license or trade name
D) all escrow funds shall be deposited before the end of the 3rd banking day following acceptance of an offer by an offeree unless otherwise agreed to in writing by all parties
E) broker must maintain funds in account until transaction involved is consummated or terminated
F) broker shall maintain an accurate and detailed record at all times

Question 10

What is conversion in terms of a broker’s trust and funds?

Answer 10

Spending of clients funds for broker’s own use - illegal

Question 11

What are rules around broker’s funds in trust accounts?

Answer 11

• broker can not keep personal funds in the account except amounts sufficient to insure integrity of account and cover any charges by financial institution
• broker can put money in interest-bearing account as long as it’s disclosed in writing to all parties. Broker can keep the earned interest
• brokers must notify Commission of all trust or escrow accounts, security deposit accounts, rental management operating accounts, and interest accounts in which trust funds are held and inform of any closed or no longer in use

Question 12

What happens to funds in a broker’s account when there is a dispute regarding disbursement?

Answer 12

Broker shall retain said money or valuables in excros until has a written release from all parties or civil action is filed

Question 13

What are the associate’s duties to money, documents, and property?

Answer 13

• turn over all docs, files and money deposited, payments, or valuable things to his/her broker promplty
• deliver a copy of all instruments to any party executing same when has been prepared by an associate or pertains to a consummation of transaction

Question 14

What are rules around bookkeeping systems and document storage?

Answer 14

• Broker must keep reliable bookkeeping system
• Broker must maintain all records and files for a min of 5 years after consummation or termination of transaction
• Brokers can use alternative media (electronic or device storate) to maintain files after a minimum of 2 years - but still has to keep original records for 5

Question 15

What is the OK Fair Housing Law and what are the penalties for breaking it?

Answer 15

• Identifies unlawful discrimanatory housing practices - same as federal legislation
• $10k for first time, $25k for second time if one happened within last 5 years, $50k if two or more have happened in last 7 years
• Attorney General may file civil action with stiffer penalties