Principles 1

Question 1

Trust funds must be placed into a neutral escrow by the

Answer 1

Close of business of the second working day after execution of the contract by principals

Question 2

Trust funds may not be ______ (mixed) with funds belonging to the broker. _________ is strictly prohibited by real estate law and may be punished by revocation or suspension of a real estate license.

Answer 2

Commingled

Question 3

A licensed broker must retain the records of a real estate transaction at the main office for

Answer 3

At least 4 years

Question 4

What is the USPAP?

Answer 4

uniforms standards of professional appraisal practice

Question 5

What is the purpose of USPAP?

Answer 5

to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers.

Question 6

There are three types of statutory nonemployees

Answer 6

direct sellers, certain companion sitters, and licensed real estate agents.

Question 7

True or False: Texas law does not require a written sponsorship agreement (independent contractor agreement) between brokers and their associate licensees. However, a real estate broker may enter into a written sponsorship agreement with each licensee associated with the real estate broker to retain the licensee as a self-employed independent contractor. In addition, a written independent contractor agreement is mandatory to meet the IRS requirements concerning statutory nonemployee status.

Answer 7

True