SCh3 unauthorized Practice Of Law And Trust Accounts

Question 1

When a license holder is working with a client on an already prepared form, such as TREC or the Texas realtor form, what is the agent’s responsibility?

Answer 1

helps the client to fill in the blanks

provides an explanation of all pre-printed paragraphs

Question 2

What are the three entities that may accept earnest money/option fee deposits?

Answer 2

Title companies, attorneys, and brokers

Question 3

If the earnest money/option fee payment goes to the title company when must it be delivered?

Answer 3

By the close of business the 3rd day after the effective date on the contract

Question 4

If the BROKER accepts the earnest money/option fee or security posit, and is using his or her own escrow account when must the funds be deposited?

Answer 4

By the close of business on the 2nd business day after the broker receives the money

Question 5

Can a license holder share or rebate a portion of the commission to a client within a transaction?

Answer 5

Yes

Question 6

What can a license holder give to an unlicensed individual who provides a referral?

Answer 6

A gift up to $50 in value, but not cash