Real Estate Brokerage Flashcards
1
Q
As it pertains to a real estate brokerage firm, a “company dollar” is:
A
The income of the brokerage firm after paying licensee commissions.
2
Q
A broker collects a non-refundable fee from the seller when the listing is signed to cover the advertising of the property for sale. Such a fee is called an “advance fee” and is considered trust funds.
A
True.
- An advance fee given by the seller to cover advertising costs is considered trust funds. Most states have very strict rules governing the handling of trust funds. Generally the funds must be used only for their intended purpose; and an accounting of all expenditures must be provided to the principal. If the money is not used for its intended purpose, it must be returned to the principal.
