TEXAS Real Estate Flashcards
When was TREC created?
1949
TREC administers the provisions of what act?
The License Act, passed in 1939
Out of TREC’s 9 commission members, how many are real estate brokers?
6
TREC’s commission members are appointed by who and approved by who?
Appointed by the governor and approved by the Senate
If a license holder fails to respond to a subpoena, what can TREC do?
TREC can file suit with the Attorney General to enforce the subpoena
An individual has how many years from the effective date of a contract or the date of the incident to file a complaint with TREC regarding the license holder involved?
4 years. Complaint must be written and signed
If a license holder, in violation, fails to respond to a summons from TREC, what will happen?
TREC will automatically schedule the revocation/ suspension hearing.
How are conflicts between license holders usually handled?
through the local Board of Realtors ©, by mediation, or in court
People engaged in the real estate brokerage business without having secured a license from TREC are guilty of and subject to what?
Class A Misdemeanor.
fine of not more than $4,000.00
or imprisonment in the county jail for not more than one year, or both.
Trials for this would be held in the county court.
persons guilty of a violation of the License Act and whoever profited there from are liable for what?
up to 3 times the amount of money received
TREC may assess an administrative penalty of up to how much for violation of the license act?
$5,000/ day
by any person, either licensed or unlicensed
30 days to pay
Real Estate Recovery Trust Account
- created to pay aggrieved parties who win an uncollectible judgment from an agent/broker
- may collect treble damages up to $50,000 per lawsuit and up to $100,000 per license number
- When any amount is paid out against a licensee, the amount must be paid back with interest and the license can be suspended/revoked.
Who is exempt from licensing?
- Texas licensed attorneys can handle a real estate transaction for a client for a fee as long as they do not participate in broker to broker commission splits
- Anyone engaged in or carrying out foreclosure sales
- Administrators and executors of a will
- New home sales agents working for one builder or owner
- Cemetery lot sales agents
- A person selling his own property
- An auctioneer calling a real estate auction.
- Anyone selling mobile homes.
+ more obvious ones
Broker Assumed Business Name (DBA)
is another name for the broker’s business that can be used by all sponsored sales agents and brokers associated with this broker. Another name that indicates a broker’s line of business, e.g. property management or commercial is also a DBA.
Team Name
- used only by a team or group of one or more sponsored sales agents or brokers associated with this broker.
- Team names must end in “team” or “group”
- cannot contain the words “brokerage”, “company”, or “associates” or other similar terms.
Alternate Name
a name used by an individual license holder other than the name on the individual’s license, such as a middle name, married name, maiden name or nickname.
All three name types must be registered with TREC by when?
BEFORE you start to use them in advertisements
The Texas Appraisers Licensing and Certification board – TALCB
regulates real estate appraisers and administers the Texas Appraiser Licensing and Certification Act
How many times can you fail the real estate license exam before having to take additional course work and resubmit an application?
3
How many hours of extra course work do you have to take after failing the exam 3 times?
National - 30 hours
State - 30 hours
Both parts - 60 hours
What are the 3 licensing requirements?
- Must be 18 years of age, or older
- Be a citizen of the United States or a lawfully admitted alien
- Criminal background check
How many course hours are required for a sales agent’s license?
180 hours
For how long is a real estate license valid for?
2 years
An on time renewal with late education completed within 60 days results in a penalty of how much?
$200
An on time renewal with late education completed after 60 days results in a penalty of how much?
$450 ($200 + $250)
TREC has how long to deny an application?
There is no time limit
What are the 6 canons of professional ethics and conduct included in the TX Administrative Code?
- Fidelity - license holder is fiduciary to client
- Integrity - prudence and caution to avoid misrepresentation
- Competency - knowledgeable
- Consumer Information Notice 1 - 3 - notifies public of recovery trust account
- Discriminatory Practices - no discrimination
- IABS -present at first substantive dialog
Consumer Information Notice 1 - 3
- Notifies the public of the recovery trust account
- Applies to both real estate license holders and inspectors
- Must be displayed in a prominent place in the broker’s office.
Grounds for suspension of license
- Guaranteeing future profits.
- Failing to specify a definite termination date in a Buyer’s Representation Agreement or a Listing contract that is not subject to prior notice.
- Selling real estate by lottery.
- Not advising a purchaser in writing to get an attorney’s opinion of title on the abstract or to obtain an Owner’s Title Policy.
- Placing a sign offering to sell, rent, or lease real estate without first obtaining the written permission of the owner.
- Must disclose if representing his spouse, parent, or child.
- Advertising without the brokerage information - broker or company name.
- Threatening to sue for a commission you have not earned.
- felony or a criminal offense involving fraud.
If a license is revoked by TREC, the individual must wait at least how long before trying to obtain a new license?
2 years
A license holder cannot write a contingency into a form, add “time is of the essence” to a form, or cross out provisions of a TREC form, except for when?
under the direction of a client
Who can accept earnest money/option fee deposits before depositing in some type of Escrow Account?
Title Companies, Attorneys and Brokers
Earnest money/option fee deposits must be delivered by when?
End of the 3rd day after the effective date of the contract; deadline may be extended if the 3rd day falls on a Saturday, Sunday or holiday
If the broker accepts the earnest money/option fee or security deposits and is using his/her own escrow account the funds must be deposited by when?
By the close of business of the second business day after the broker receives the money.
A license holder may give a referral gift up to what value?
A license holder may give a referral gift up to $50 in value (not cash) to an unlicensed individual who
provides a referral. Gift cards that cannot be converted to cash are acceptable.
All ads must contain what?
- the broker or company name.
- the license holder’s name or team name.
- the broker’s name in at least 1/2 the size of the largest contact information for any sales agent, associated broker, or team name contained in the advertisement.
How should brokers or salespersons with a website provide information about the IABS and Consumer Information Notice?
Post a link to the forms in at least 10-point font.
A link in 12-point font can be used with the following wording: “TREC Information About Brokerage Services.”
10-point font “Texas Real Estate…..
How can an IABS form be provided to consumers?
personal delivery, mail or email
What are exceptions of times an IABS form must be provided?
Open Houses, meeting with someone already represented by another license holder, transaction is for less than 1 year, and no sale is being considered.
Senate Bill 489
- IABS at the first substantive dialogue
- Disclose representation of party at first
contact with another party or license holder
Senate Bill 489 allows a broker to act as an intermediary in a transaction if?
they have the written permission of both parties including how the broker will be paid
The time frame that a broker or delegated supervisor has to respond to clients, agents, or other brokers is what?
2 days
Who can earn and sue for a commission?
A broker
When changing to a new broker, a license holder
is authorized to engage in the business as soon as when?
as soon as the sponsorship forms have been mailed to
TREC. This is also true when re-activating an inactive license
TREC has promulgated sales contract forms for most residential properties including Farm and Ranch. They do not have forms for what?
Commercial transactions, Co-ops or mobile homes.
COMMUNITY PROPERTY
- is a STATUTORY estate in Texas.
- All property acquired AFTER MARRIAGE,
whether purchased or earned, is JOINTLY OWNED by the husband and wife. - INCOME on separate property is considered community property.
- An increase in value of separate property is NOT community property. (For example, if a spouse has a house worth $150,000 at the time of marriage and its value rises to $300,000, the increase is not community property.) HOWEVER, once community efforts, credit, or funds are used to increase the value or improve the property, community property rights accrue.
Which statement about TX Homestead protection is FALSE?
a. Homestead protection is automatic, and may not be waived in TX
b. Homestead protection will prevent foreclosure for unpaid property taxes
c. an urban homestead can be as large as 10 acres
d. homestead protection will prevent the debots of one spouse from causing the sale of the property
b. Homestead protection will prevent foreclosure for unpaid property taxes
Property taxes create the highest priority lien. Not covered by Homestead protection
John sold his waterfront property to some buyers and provided the Notice of Coastal Area Property. The house on the property was behind the vegetation line at the time of the sale. Several months after the sale, a hurricane cause a considerable amount of beach erosion and the structure is now seaward of the vegetation line. What is true?
a. the buyers can sue John for damages
b. the state can force the removal of the structure
c. the buyers can sue john and the real estate brokers involved in the transaction for damages
d. the buyers can file a claim with the Title Insurance Company for loss of property
b. the state can force the removal of the structure
According to the TREC One to Four Family Residential Contract, who is responsible for paying the owner policy of title insurance?
a. the buyer
b. the seller
c. the title company named in the contract
d. the party stipulated in the contract
d. the party stipulated in the contract
Who is responsible for filling in the effective date of the real estate sales contract?
BROKER
When must the option fee be delivered?
a. the buyer must pay his agent the option fee within 3 days of the effective date of the contract
b. the buyer must deliver the option within 3 days after the effective date of the contract
c. the buyer must pay his agent the option fee within 7 days of the date of the contract
d. the buyer must pay the seller the option fee within 7 days of the date of the contract
b. the buyer must deliver the option within 3 days after the effective date of the contract
John has listed the property at 17 Oak St. The sellers have received an accepted an offer from the buyers. The buyers have received the survey and it shows an encroachment that the sellers did not previously disclose. The buyers are not willing to purchase the property in this condition. What action on the part of the buyers must be taken?
a. Within 10 days, the buyers can notify the sellers that the contract is cancelled and demand a refund of their earnest money
b. the buyers can sue the sellers for breach of contract
c. the buyers have the number of days mentioned in the contract to address survey problems with the sellers
d. the buyers must submit the survey to the sellers, checking the box on the survey form, indicating their intent to cancel the transaction
c. the buyers have the number of days mentioned in the contract to address survey problems with the sellers
A buyer is unable to obtain credit approval as described in the Third Party Financing Addendum for Credit Approval. If the buyer provides the seller with written notice within the agreed-to number of days, which of the following is FALSE?
a. the contract is terminated
b. the buyer will lose his earnest money
c. the buyer is entitled to a return of his earnest money and there is no remedy for the seller
d. the buyer is not entitled to a refund of any option fee he paid
c. the buyer is entitled to a return of his earnest money and there is no remedy for the seller
When married, when can property remain separate?
- if it was acquired prior to marriage.
- if it was received during marriage by inheritance
- if it was gifted
Is Homestead a common law or statutory estate in Texas?
Statutory
The homestead of a family is protected from forced sale by all creditors except:
- mortgage
- property taxes (ad valorem taxes)
- mechanics and materialmen’s liens (construction projects)
- homeowner/property owner associations
When a homestead is foreclosed on for unpaid property taxes, the owner has how long to redeem the property?
2 years to redeem the property
When a homestead is foreclosed on for unpaid homeowner/property owner association fees, the owner has how long to redeem the property?
6 months
Urban homestead has a max size of how many acres?
10 connected acres
A rural homestead has a max. size of how many acres?
200 acres
On a property greater than 200 acres, the owners have the right of what in regard to the homestead?
Designate which land will be considered the homestead. The 200 acres do not have to be connected
How many homesteads can a person/family have?
1
Homestead exemption vs homestead protection
- a tax benefit. must apply for the exemption and must own and occupy the home on January 1st to qualify
- homestead protection is automatic
The Deceptive Trade Practices Act (DTPA) allows for the recovery of how much in damages?
triple damages
Negligent misrepresentation of material fact would be an example of a license holder in violation of what?
The Deceptive Trade Practices Act (DTPA)
If a person dies instestate, property will be distributed according to the laws of what?
Laws of Descent and Distribution
Under the laws of descent, who has priority to the property?
Spouse and children
If a married couple has all adult children, and one spouse dies intestate, the surviving spouse can do what with the property?
sell his/her real property with only that spouse’s signature
Title by Devise
A party dies testate and the property is distributed to the heirs
Landlords must provide new locks on rental property no later than how many days after a new occupant takes possession of a leasehold premise?
7 days
When are foreclosure sales held in Texas?
First Tuesday of the month
Which foreclosures are judicial and non-judicial in Texas?
- most are non-judicial
- foreclosures for home equity loans are judicial
The Texas Veterans Land Board (TVLB) has how many programs for Texas veterans?
2 - the housing assistance program and loan program
TVLB housing assistance program
Allows veteran’s mortgage loan to be sold to the TVLB instead of to the secondary market.
Interest rate are significantly lower
TVLB loan program
- veterans can borrow up to $150,000 from the TVLB to purchase unimproved property.
- buyer must obtain a survey and pay 5% down for a 30-year loan.
- The minimum tract size is 1 acre.
Both TVLB programs are available for the surviving spouse of a veteran who……
- is listed as Missing in Action
- whose death was service connected
HOAs in Texas are permitted to regulate, but not ban:
- flying the flags of the US, the State of Texas, or any branch of the US armed forces.
- roof solar panels, the display of religious symbols, or political signs.
Professionals licensed by TREC are most often required to use standard form contracts drafted by?
TREC’s Broker-Lawyer Committee
I am a sales agent, Sally White. I am sponsored by a broker but want to use an assumed name for my advertisements. Can I use “Sally’s Spectacular Properties” or “White Real Estate” for my business name on my advertising?
You cannot use either company name because each implies that Sally, a sales agent, is in charge. An advertisement cannot in any way imply that a sales agent is the person responsible for the operation of a real estate brokerage. [TRELA §1101.652(b)(23) ]. A sales agent may use her name with the term “Team” or “Group,” so long as the advertisement also includes the broker’s name, and so long as the broker has registered the team or group name with the Commission.
If an applicant for a sales license engages in a brokerage transaction, the applicant:
may face criminal charges resulting in fine and or jail
When a sales agent’s sponsorship is terminated by his sponsoring broker, the broker must:
notify the sales agent of the termination in writing and return the license to TREC immediately
According to the TREC residential resale contract form, if a termination option fee is paid, day one of the option period is:
The day following the effective date of the contract
If a cash buyer would like to have an appraisal done to ensure that a property is priced at or below market value, the agent should:
Advise the client to talk to an attorney for the proper wording to put in the contract
If the buyer and seller agree to rely on an existing survey, the survey and the affidavit T-47 must be provided:
Within the negotiated number of days of the effective date of the contract
A license holder MUST use a TREC promulgated form except:
The principal requires the use of another form
When must a property owner declare their primary residence as their homestead to get homestead protection?
Never
Which of the following is requested through the HOA Addenda?
a resale certificate
What information is contained in Paragraph 7D of the 1-4 Family Contract?
“as is” provision
What information is contained in Paragraph 11 (Special provisions) of the 1-4 Family Contract?
business details
What type of information can you put in paragraph 11 of the 1-4 family Resale Contract?
business details
What is the criminal penalty for engaging in the real estate brokerage business in Texas without first becoming licensed by TREC?
$4,000 is the maximum criminal penalty for engaging in real estate without a license. Class A misdemeanor
An individual has successfully sued a license holder in connection with a single transaction and won a judgment for $110,000.
The license holder has declared bankruptcy and TREC has agreed to pay out of the recovery trust account on behalf of the license holder. How much will TREC pay?
$50,000 is the max. TREC will pay in connection with a single transaction
All approved CE classes include:
All CE (Continuing Education) classes include Legal 1 (4 hours) and Legal 2 (4 hours)
A broker from Colorado refers a buyer to a Texas broker. The Texas broker works with the buyer who finds a property to buy. The buyer then asks the Colorado licensee to represent his interest to the Texas broker. The Colorado broker reviews all the terms and conditions set forth in the buyer’s offer and makes some suggestions that are then included in the offer. The Texas broker presents the offer. It is accepted. The transaction closes and the Texas broker earns a commission. Can he pay the Colorado broker a commission?
Texas broker can pay an out of state broker a commission as long as the other broker does not negotiate in Texas. Preparing an offer and giving advice are not considered acts of negotiation. A referral gift of up to $50 in value, not cash, is given to an unlicensed person who provides a referral
What department of the Federal Government administers the Do Not Call list?
FTC
Disclosure of agency must be given:
Disclosure of agency (IABS form) must be given to a prospect at the first substantive dialogue.
A buyer has submitted an offer to purchase a seller’s property without receiving the seller’s disclosure of property condition. How many days does the buyer have to terminate the offer once he receives the disclosure?
7
According to the TREC contract form, when must the title company deliver the title commitment to the buyer?
20 days from the receipt of the contract
Which of the following statements is FALSE?
a. Real Estate Inspectors are licensed by TREC
b. Real Estate Inspectors must use promulgated inspection forms for all properties
c. Real Estate Inspectors must use promulgated forms for residential inspections
d. TREC Consumer Information Notice 1-2 applies to Real Estate Inspectors
b.
TREC does not have promulgated inspection forms for all properties. They only have forms for residential inspections.
A broker has several offers on one of his listed properties. What is true when presenting offers?
He must present all offers in whatever order he chooses
Which of the following statements regarding mold and mold remediation is false?
a. a property owner can assess and remediate mold on his own property without a license
b. if mold is visible, it must be remediated
c. a certificate of mold remediation must be provided no more than 10 days after the work is complete
d. all certificates no more than 5 years old must be provided by sellers to buyers
b. if mold is visible, it must be remediated
An unlicensed assistant prospects for leads for their agent employer. Who could be fined, and/or have license suspended or revoked by TREC?
The unlicensed assistant, agent and sponsoring broker
Outside of veterans, who is eligible for a TVLB loan?
Eligible spouses
How long does the buyer have to deliver the Earnest Money Deposit to an escrow agent?
within 3 days after the effective date of the contract, per paragraph 5 in the sales contract
Where should the consumer protection notice be?
displayed in the broker’s office
What is an example of something that could be entered in paragraph 11?
information from any TR addendum
a buyer’s agent rebates a portion of their commission to a buyer. who needs to approve this?
the sponsoring broker
How much CE may be carried over to the next renewal period?
None - CE Cannot be carried over and must be earned within the renewal period
The total hours required at the end of your SAE renewal period consist of:
270 qualifying hours plus 8 hours of legal 1 & 2 (278 total hours)
NOTE: 180 hours needed to earn a license.
90 qualifying hours of Sales Agent Apprentice Education (SAE) is needed for renewal.
The 90 hours added to the 180 gives a total of 270 qualifying hours.
CAUTION: watch the wording on this question. if they are asking for total hours needed 278 is correct. If they are asking for qualifying hours needed 270 is correct. the 8 hours of legal update: legal 1 and 2 do not count as qualifying hours
A buyer and seller have signed a texas sales contract. prior to signing, the buyer did not receive the Seller’s Disclosure. If he receives it within the negotiated number of days in the contract, the buyer can:
terminate the contract for up to 7 days after he receives the disclosure
A property has been listed for sale at $495,000. Several buyers are interested in the property and after a small bidding war the sellers have accepted an offer for $505.000. Included in the offer was the condition that the dining room furniture, washer and dryer be part of the sale. where can this information be covered to insure that all parties are protected.
in an addendum to the sales contract and bill of sale
The designated officer of a licensed real estate corporation owns 15% of the corporation. How much E&O insurance is required by TREC?
$0
An unlicensed assistant may do which of the following?
a. show a home
b. host an open house
c. give an overview of the market to a buyer
d. prepare a CMA
d. prepare a CMA
community property is that owned by
husband or wife when purchased with community funds
when real estate under a lease is sold, the lease:
remains binding on the new owner unless otherwise stipulated in the lease itself
Income approach for an appraisal would be most widely used:
on commercial and investment property rented to tenants
The right to cross over property owned by another is called
an easement
Taxes on real estate automatically become:
a lien
Deeds are recorded in the:
County courthouse
Real property owned by the husband or wife prior to marriage is
separate property
Eminent domain is:
the right to take property for public use
the deed which states that the title conveyed is good from the sovereignty of the soil to the grantee and that no one else can successfully claim the property is a:
general warranty deed
one who acquires property under a deed is:
a grantee
The tax on a given piece of real estate is determined by multiplying the tax rate of the assessing body by the:
assessed valuation
the law which requires certain contract to be in writing to be enforceable is called the:
statute of frauds
to ascertain the exact boundary lines of property, one should obtain a:
survey, with corners staked, by a licensed surveyor
amortization is the process of:
liquidation of debts by installments
an attorney-in-fact is the holder of:
a power of attorney
the amount of deposit money is fixed by:
agreement of the parties
If a broker received more than one bona fide offer for the same property at approximately the same time, he should:
submit all offers to the owner unless otherwise instructed
An instrument that is used to create a lien on real estate to secure the repayment of a loan is:
a mortgage
A contract that provides for the payment of a commission to a broker even though the owner makes the sale without the aid of the broker is called an:
exclusive right to sell
the broker must obey all instructions made to him by his principal. Should the principal instruct the broker to violate the law, the broker should:
withdraw from the transaction
the person who borrows the money and gives the mortgage is known as the
mortgagor
a listing to sell property and obtain a fixed specific price for the owner is:
a net listing
demand, utility, scarcity and transferability represent:
the characteristics of property value
a person who has real property willed to her by a relative is said to acquire title by:
devise
all of the following acts are forbidden by the Federal Fair Housing Law except:
a. racial discrimination in home repair financing
b. discrimination on the basis of national origin
c. racial discrimination in real estate board membership
d. discrimination on the basis of age
d. discrimination on the basis of age
charging an interest rate higher than the legal limit is:
usury
the person who conveys title to real property is the:
grantor
escrow accounts are open for the protection of the:
principals
if a governmental agency requires a certain property for public use, it may acquire title by:
condemnation under the right of eminent domain
When there is a mortgage on your home, and you pay it off, you receive:
a release of lien
A mortgage insured by the FHA is usually borrowed from:
a lending institution
recording a mortgage creates:
a lien
Excessive selling/lending activity to generate fees and commissions is:
churning
A deed passes evidence of title to real property at the time it is:
delivered
to be enforceable, a listing agreement must be signed by the:
seller
the number of acres in a section is:
640
Fannie Mae refers to:
the Federal National Mortgage Association
an agent is one who is employed by a:
principal
the party appointed by the court to settle the estate of a deceased person who died intestate is called the:
administrator
When dying intestate and leaving no heirs, a person’s property passes to the state by:
escheat
Refusal by a real estate broker on the grounds of race to cooperate with other brokers is covered
by the:
Federal Fair Housing Law
a mortgagee is a person who:
lends money to a mortgagor
When a notary public or other qualified official attests to the signature on a mortgage, it is called an:
acknowledgment
a judgment is a :
court decree
greenfield refers to:
land not previously developed
a quitclaim deed is generally used when?
to remove a defect in title
All listings shall be taken in the name of the:
sponsoring broker
Express means:
written or spoken
A broker can determine the average selling price of homes in a certain area by:
comparative analysis
Describing land boundaries using terminal points and angles is called
metes and bounds
Which of the following would not result in the termination of a listing?
a. Abandonment
b. Death of the broker
c. The acceptance of an offer by the seller
d. Revocation by the principal
a. Abandonment
The clause in a deed that sets forth the extent of the title being conveyed is the:
granting clause
Deed restrictions are created by the:
grantor
A listing on community property should be signed by:
both spouses
When should the Loan Estimate (LE) form be provided?
at the time of, or within 3 business days of loan application
Another broker has a listing on a property you wish to sell. As a broker, you should:
obtain permission from the other broker to show the property
The termination of a contract by mutual agreement of the parties is called:
rescission
An example of a fiduciary relationship is that which exists between:
broker and principal
An apartment building where apartment units are individually owned, and there is common
ownership of lobbies, elevators, etc., is known as a:
condominium
Truth in Lending, also called the Consumer Credit Protection Act, covers:
all real estate loans and all consumer loans up to $25,000
An “appurtenance” is:
something which passes with the land, such as a right of way
The person who executes a deed is:
the person whose property rights are transferred
If a couple wants to sell their home before their divorce decree is final, who must sign?
a. either spouse
b. both spouses and all adult children
c. both spouses
d. both spouses and their attorneys
c. both spouses
Breach of an oral agreement of sale results in:
no cause of action
A person who transfers title to another by deed is said to have divested title by:
voluntary alienation
Which of the following loans would NOT be subject to the provisions of RESPA?
a. a loan made from deposits insured by the FDIC
b. an FHA loan
c. a loan from a private investor who invites more than one million dollars per year in
such mortgages
d. a loan on a six-unit apartment house
d. a loan on a six-unit apartment house
The Deceptive Trade Practices Act (DTPA)
- TX law
- applies to TRADE AND COMMERCE
- aggrieved consumers can sue a seller of goods for damages.
- The act by the seller of the goods has to be deceptive or unfair for the consumer to sue for monetary damages successfully.
Texas practices dual agency or intermediary?
intermediary
A licensee misses the deadline for license renewal. What must they do?
Pay a deferral fee and complete any CE requirement within 60 days
With a proper application, late renewers filing within 60 days of expiration will not lose active status if
sponsored throughout the period between expiration and new license issuance
deactivating brokers must give sponsored sales agents how much of an advance notice from the date of the application?
30 days
which of the following is a license law violation?
failing to disclose a previous license tenancy from another state on the license application
The following is an UNAUTHORIZED practice of law
Advising a seller that her property has a title defect
The Jordans and the Curriers have jointly directed the broker Michael in writing to pay out the earnest money deposit to the Currier’s son, Stephen, despite the face that this action is not stated as a permitted disbursement in the sales contract. Michael refuses to disburse. Which of the following is correct?
Michael must disburse the funds as directed
A homeseller makes a legitimate written demand for a buyer’s earnest money deposit following an undisputed buyer default. In this case, the broker
Must disburse the requested funds within 30 days
Trust fund documentation must be maintained by the broker for what period of time?
4 years
two homebuyer prospects walk into an open house and start talking to the seller’s agent hosting the occasion. They inform the agent that they need help looking for properties in and around the neighborhood. What is the host’s responsibility in this scenario with regards to representation?
The host must tell the buyers that she represents the seller of the open house property. Agency disclosure must be completed to avoid any confusion about who the agent is representing with respect to the open house property
primary function of an appointed intermediary
to carry out specific instructions from the intermediary for the benefit of the principal party
