Unit 2 - Commission Rules and Regulations

Question 1

Branch Office

Answer 1

Secondary place of business apart from the principal or main office from which real estate business can take place

Question 2

Commingling

Answer 2

The mixing of broker’s funds with escrow deposits

Question 3

Duplicate Original

Answer 3

Copy of a real estate contract with original signatures

Question 4

Escrow Account

Answer 4

Place for money belonging to clients and customers. Also known as a trust account.

Question 5

Guilty Knowledge

Answer 5

Awareness of wrongdoing without any attempt to stop it.

Question 6

Letter of Intent

Answer 6

A usually nonbinding letter reciting the intentions of the parties involved prior to entering a contract. Offers for dwellings of 4+ units, commercial, industrial, or mixed use are usually presented in a Letter of Intent (LOI) form

Question 7

Probation

Answer 7

The least severe disciplinary action available to the Real Estate Commission

Question 8

Revocation

Answer 8

Cancellation of a Real Estate License

Question 9

Suspension

Answer 9

The temporary lifting of a real estate license by the Real Estate commission

Question 10

Trust Account

Answer 10

Escrow account for money belonging to others

Question 11

Waiver of Broker Cooperation

Answer 11

Seller’s statement that only one office will be marketing the property. This statement prohibits the listing broker from cooperating with other brokers to procure a buyer.