Chapter 19

Question 1

Net brokerage

Answer 1

Net brokerage engagements are prohibited. The client must be notified of the gross price of the property and brokerage services.

Question 2

Transferring licenses

Answer 2

When joining a firm a licensee must sign a contract that includes how the licensee will be compensated while with the firm and how the licensee will be compensated for unfinished business when leaving the firm.

Question 3

Trust Accounts

Answer 3

The broker shall place all client funds into a trust account properly, unless the contract states otherwise. Other items of value received must be placed in safekeeping. If funds are placed in an interest-bearing account, the contract must state who will receive the interest.

Question 4

Firm names and telephone numbers

Answer 4

The name of the firm as registered with the commission and the phone number of the firm must be included in the ad

Question 5

Offers to buy

Answer 5

A licensee, who offers to purchase the sellers property if not sold by a certain date, must first enter into a sales agreement to purchase the seller’s current property prior to entering into the listing agreement.