Financial responsibility

Question 1

Reconciling the trust account

Answer 1

1. Maintain a date sequential record of all deposits and dispersements from the account, including or cross reference to the respective client file number an actual file created by the principal broker
2. Maintain current running total of the trust account balance
3. Maintain records sufficient to detail the final disposition of all funds, balance to zero
   4. reconcile the brokerage trust account records with the bank or credit union records at least monthly
4. Upon request to make all trust account records, available to the division for auditing or investigation. 

Question 2

Commingling

Answer 2

Broker cannot place more than $1000 of their own money in the real estate property management trust account or the brokerage trust account 

Question 3

Deposits

Answer 3

All monies received by sales agents or associate brokers in a real estate. Transaction must be delivered to the broker and deposited in the real estate trust account within three days approved exception is REPC for four days. 

Question 4

Disbursements from trust account

Answer 4

1. In accordance with the terms of the agreement by either real estate, purchase contract, property management agreement or lease.
2. Proper written authorization of the parties. You have an interest in the funds or the broker teams it necessary.
3. Court

Question 5

Disputed funds

Answer 5

Must have their own separate trust account

Question 6

Disbursement from trust continued

Answer 6

Written authorization from parties ( REPC)
Closing or termination of account
Delivering settlement statement to both parties
Ensuring the buyer or seller has been paid as determined by the settlement statement
Making record of each disbursement
Depositing funds withdrawn into operation account before paying commission

Question 7

Failed contracts disbursement

Answer 7

When a contingency in the REPC is not met, the broker may disperse, the earnest money directed in the contract, which was signed by the party, not receiving the funds.

Question 8

Record keeping

Answer 8

Broker shall maintain and keep available copies of all records pertaining to real estate transactions. They must keep for at least three calendar years following year offer was rejected or the transaction closed or failed .

Question 9

If the broker dies

Answer 9

1. Cease operations
2. Submit to the division change form to inactivate
3. Submit a change form through RELMS to inactivate the license of any licensed affiliate with the entity.
4. Advise the division as to where the location of the records will be stored.
5. I notify each listing and management client that the entity is no longer in business. Another client may enter into a new listing or management agreement with a different brokerage.
6. Notify each party in cooperating broker to any existing contracts and retain money, held in trust under control of a signer on the trust account or administrator, executor until all parties to each transaction agree in writing to the disposition until the court or confident jurisdiction, Issues an order.

Question 10

Real Estate Recovery Fund Act

Answer 10

Provide protection to the public and establish funds for providing education and research for real estate licenses. 

Question 11

After receiving a judgment aging an agent

Answer 11

The sun will reimburse the public for damages incurred up to $15,000

Question 12

RERFA

Answer 12

Gets funded by licensing fees, and disciplinary fees must be $100,000 to start each year.
Agents can be fined up to $5k

Question 13

FIRREA

Answer 13

Financial institution, recovery reform and enforcement act. Enacted to prevent mortgage, abuses by lenders and appraisers.
1. 1M fine
2. Prison 30 years
3.10 year statutory period