The independent contractor agreement formally defines the obligations and rights of a broker and an agent and outlines provisions that make it clear the agent is not an employee. A court or TREC hearing officer might reach the same conclusion and assess liability or responsibility on the broker. A sales force of 13 people share 10 desks. Even if it is for just a few months.Page 675, A property manager who lives on the property and is employed by the owner, would be. She has a signed liquidated damages clause. all of these. $5,685.00. Both Primary financing refers to loans made directly by the lender to the borrower and Secondary financing refers to the resale of existing loans. You can find out how things are done in your office by - studying your office procedure manual. all of these. two months rent. Real Estate Practice Flashcards | Quizlet I recently got my brokers license, but I dont sponsor any agents. neither let the buyer know the price so they can consider it before the agent arrives nor arrange to have all owners present for the presentation. The buyer purchased the property under an assumption and refinanced the lien six months after closing. asking every prospect to recommend another prospect. I will obtain three new listings each month. chemical tests of the soil for all dangerous contaminants. A real estate agent can sell a mobile home with the land it is sited on. minimum wage requirements. allow buyers a chance to confer without the agent being present. both that the property must have been held for productive use in a trade or business or for investment purposes and that the exchange property must be of like-kind. A broker may discriminate against which type of tenant? With a constant stream of prospects.page 207, A major reason owners attempt to sell without an agent is to. The case proceeded to a jury which found for the defendant REALTOR. o unemployment insurance. ground lease. The Recovery Fund is funded by a $10 fee paid with every brokers or salesmans original license application. Secondary financing refers to the resale of existing loans. recommend to the owner to counter the offer. 30-day month. single-family residence. one months rent. arrange to have all owners present for the presentation. eminent domain. H0:80Ha:<80\begin{aligned} Buyers are attracted to bargains, not overpriced property. neither motivate salespeople nor retain top producers. The Statement of Understanding contains statements, agreed to by the agent, which would help confirm the existence of an independent contractor relationship under the law. apartments. salesperson is not supervised by the broker. The damages cannot be recovered by the seller. all of these. Which of the following statements regarding the use of goal-setting is FALSE? Reasonable compensation (generally a flat fee, not a percentage of the loan amount) may be justified. a commercial building. I will improve my communication skills. both motivate salespeople and retain top producers. Need adequate number of comparable sales.Page 222-223, The likelihood of a sale within 90 days is. What are the advantages of a good time-management program? In real estate, the term farming refers to. (Page 238-239), In preparing estimated seller proceeds, you should remember that. Thus, the reversing entry is: On the 15th of the month, ABC pays Mr. Smith his commission and records this entry. You should check the do-not-call list before soliciting such listings to avoid violating the law. occupants name from the address. all of these. Bill and sue. Neither Primary financing refers to loans made directly by the lender to the borrower nor Secondary financing refers to the resale of existing loans. Unruh Act. Where can we find information about what we should include in our privacy policy? Similar properties sold within the past 2 years, Similar properties sold within the past 3 months, A listing presentation manual should include. arrange to have all owners present for the presentation. both it is best to advertise properties in areas or price ranges where other properties are also available and prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised. why the owners should deal with your firm. Some brokers charge a small fee every time someone clicks through to the lenders website. real property taxes. Net Exclusive right-to-sell Exclusive agency Open, The broker did not give the principal a copy of the listing. greater responsibility. taxes. once rejected, an offer cannot be accepted. conceal the fact that the advertiser is an agent. Accepting the offer but conditioning the acceptance on a different escrow office than specified in the offer None of these Accepting the offer verbally with a promise of a later written confirmation Accepting an offer but changing the closing date, Must be accepted in writing without any conditions or variance.Page 497. return it to the offeror. All of these. These are all good pieces of advice.Page 415-416. the total dollar costs to take possession. does none of these. Texas REALTORS is committed to advocating for a strong real estate industry, advancing a culture of continued learning, and staying ahead of issues concerning members and their clients. ad will cover every major feature of a house. both motivate salespeople and retain top producers. I will become a better salesperson. The recovery fund is a state-run consumer protection fund used to reimburse aggrieved persons who suffer actual damages by reasons of certain acts committed by brokers, salesmen, or their unlicensed employees or agents. In fact, the Legal Review Committee recommends that a number of applications be denied each year. B. motivate salespeople . These rules come into play any time a real estate broker in a position to refer mortgage business to a lender is paid a thing of value by the lender. Directing to properties based on race.page 71. cooperate with other agents in designated areas. 360-day year. disclose, elect, confirm. However, while working as a salesperson under you as his sponsoring broker, he is covered by the provisions of the act and you are responsible for his real estate-related activities. conversion. Real Estate Practice - Chapter Two; Ethics, F, Real Estate Practice - Chapter Three; Mandato, Real Estate Practice - Chapter Four; Prospect, Real Estate Practice - Chapter 5; Listing Pre, Real Estate Finance - Chapter Fifteen; Mathem, Real Estate Finance - Chapter Fourteen; Inves, Real Estate Finance - Chapter Thirteen; Loan, Alexander Holmes, Barbara Illowsky, Susan Dean, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. military-based housing. It is primarily reserved for paying the legal expenses of cases that are significant to Texas REALTORS as a class or the real estate industry. buyers only. If it is unethical, it is illegal. Do I have to check the National Do Not Call Registry before soliciting listings of those who have a for sale by owner sign in their yard or sellers with expired listings in the MLS? Download a PDF of the Model Privacy Policy just for Texas REALTORS from theManuals & Guides page. FHA loan. Ultimately, the board of directors must make a determination if the use of the Legal Fund satisfies the purposes and intent of the fund. (Page 480-481). Under these guidelines, agents and brokers may receive fees for performing loan origination work on a lender's behalf, such as taking a loan application, counseling borrowers, ordering credit reports and appraisals, and completing loan documents used to process the loan. Instructions to an owner upon taking a listing should include all EXCEPT. Chapter 1 - Real Estate Practice Flashcards | Quizlet A brokerage firm has operating expenses of $254,000. both you must mention this to a prospective buyer and failure to mention the presence of the group would make you liable for any damages the buyer suffered. the exchange must be completed no more than 180 days after transfer of exchanged property. 4: The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to: (a) motivate salespeople. Texas brokers who are exempt from TRECs continuing education requirements do not have to take the Broker Responsibility course. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to both motivate salespeople and retain top producers I will obtain three new listings each month. The Texas REALTORS created a model privacy policy to help you develop your office's policy about the maintenance and destruction of customers' and clients' personal information. personal property. checking the regulations of the Bureau of Real Estate. it is best not to mention any problems with the property. a blank space since it attracts attention. love of family. Salesperson Andrews listing was sold by another office for $189,500. county-owned housing projects. There is no limit for the damages. none of these. The legal fund assisted the defendant in resolving the case favorably. The opposite of most advertising. showing owners you are working on their behalf. a family-oriented home. brokers have liability to commission salespeople as to redlining. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to a.) (Once set, goals should never be changed. a subsidized rent program for low-income tenants. It should be completed annually to reaffirm the relationship that exists between you and your agents. checks that have cleared. This is a debit to the commission expense account and a credit to a commission liability account (which is usually classified as a short-term liability, except for cases where you expect to pay the commission in more than one year). Am I still required to have a manual? ask, interact, demonstrate, approve. risk. What kind of cases or actions has the Texas REALTORS Legal Fund been used for in the past? The fund is used only for purposes authorized by the Texas REALTORS Board of Directors and may only be accessed by REALTORS through a formal application process. interest. Rumford Act. advertising by season. show the prospective buyers homes they have listings for in order to please the owners of those listings. Types of property requiring property management include. supporting statements with facts. gap loan. Which of the following listings does NOT require the agent to use diligence to locate a buyer? (Page 621). Inclusion of white space serves to emphasize a message. Lowercase letters are easier to read than capital letters. the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants. Properties listed above market value tend to sell faster than properties listed at prices closer to market value. The rules and regulations of the legal fund set forth specifically all of the application procedures and the requirements that must be met before assistance from the legal fund may be authorized. listings with your firm have a 30% greater chance of being sold than the average for your local MLS. insurance. The Fifth Circuit Court of Appeals reversed and held that the Texas Constitution had been superseded. both applies to 1 to 4 residential units and must be signed by buyer and seller. the factor that makes a neighborhood cohesive. (Page 228,230). 3. Legally binding agency relationships may be formed between a principal, Select the statement that is true of consumer law prior to the 20th century. upon delivery of the sellers acceptance. show buyers homes they cannot afford to impress them with the caliber of homes to which the agent has access. Commission expense accounting AccountingTools The Texas REALTORS strongly encourages members to maintain E&O insurance. Ads in an outside column will generate more interest than ads in an inside column. Which of the following statements regarding display advertising is TRUE? an estate from period to period. The buyers originally alleged damages in excess of $30 million. steering. institutions within an area that influence behavior. the straight-line method. you should divide your time equally between A, B, C, and D category activities. operational advertising. appearing confident. (Page 693-695), Security deposits for unfurnished residential rentals cannot exceed. You should tell someone about your goals. they want to quickly locate property that meets their needs. Prohibited by Civil Rights Act of 1968 and the Holden Act.page 71. steering. Adjust does not have the connotation of lowering.page 312, The period that tends to be the most productive sales period for listings is the. When a change is required to escrow instructions: the seller can amend the escrow instructions. being over-eager to close. Noncomforming loans are Jumbo loans.Page 514. Proposition 90 Proposition 58 Proposition 13 Proposition 60, Must cost the same, or less, than the home sold.Page 616, Tax benefits of a principal residence include all of the following EXCEPT. The REALTOR's errors-and-omissions insurance carrier refused coverage on the basis that the claim involved bodily injury that was excepted from the policy. Usually 36 percent for qualifying. assessed value of property acquired before 1978 to be reduced to the amount shown in the 1975 tax roll. undue influence. Brokerage Liability Issues - Texas REALTORS You should contact your attorney to obtain advice with respect to any particular issue or problem. The caller may want a lower-priced property. The association needs you to volunteer your voice and exper. (Page 231). all parties the agent has dealings with. mproved efficiency the monthly gross income divided by the amount to be financed. Even if I do not perform the requisite number of functions to be considered a mortgage broker or do not become a true part-time employee of the lender, can I still be paid something for the work I perform for the lender? all of these. For Sale By Owner Code violations Probate Evictions, The phrase centers of influence refers to. Disclose as soon as possible, confirm with offer.page 119-120. Primary financing is first trust deeds and secondary financing refers to junior liens. After careful review, the board of directors chose not to file the requested briefs. Requirements for a valid 1031 exchange include. you must mention this to a prospective buyer. first 20 days of the listing. they extend the listing for a longer period as price is related to time to sell. forgery in the chain of title. Brokers have liability to commission salespeople as to workers compensation. promotion and advertising paid by the agent. The caller may want a lower-priced property. neither use their own funds to make loans nor service loans they make. Applicability of the legal principles discussed in this material may differ substantially in individual situations. a licensed property manager. Which of the following statements regarding the use of goal-setting is FALSE? a subordination clause. it is better to estimate costs a little on the high side than the low side. Neither the cities nor the (a) countries, (b) counties took responsibility for their deteriorating infrastructures. Either Open or Exclusive agency Exclusive agency Exclusive right-to-sell Open, A commission paid only if agent makes sale.Page 264-272. (b) workers compensation. owners name from the tax number. A real estate agent can sell a mobile home in a rental park space. Such as a Transfer Disclosure Statement.page 107, A fiduciary relationship applies to a real estate licensee and to. No persuasion.Page 478, What the buyers will pay, not what sellers want.Page 490, An agent who receives an unreasonable offer on their principals property should generally. (page 38), The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. a credit on the sellers closing statement. At the time of the purchase, flood maps for the area showed the property not to lie in a flood hazard area. The Texas REALTORS Legal Fund is maintained by the association through the oversight of the Legal Review Committee. loan index. Very rarely. real property taxes. The best heading for a classified ad on a home would be. the price was too high. speed up your presentation. Brokers who carefully maintain independent contractor relationships and follow the terms of the agreement can reduce their risk of the IRS, the Texas Workforce Commission, or other government agencies asserting that there are employer-employee laws applicable to the relationship. that the Alquist-Priolo Act be complied with. If the flow rate of the river is F=2.3105m3/hrF=2.3 \times 10^5 \mathrm{~m}^3 / \mathrm{hr}F=2.3105m3/hr, use the formula you found in Question 4 to estimate the total amount of cadmium discharged from the plant during this 24-hour period. Or working an area for a type of property or buyer group.page 213, A reverse directory allows an agent to have the. service loans they make. For injuries. This letter, often referred to as the Retsinas Letter (after the former FHA Commissioner who issued the letter), was later incorporated by reference in a March 1, 1999, RESPA Statement of Policy Regarding Payments By Lenders To Mortgage Brokers, 64 Fed. a counteroffer really rejects the offer. present them in the order received, obtaining acceptance, rejection, or counteroffer for each offer before proceeding to the next offer. & H_{\mathrm{a}}: \mu<80 A release from time pressures a sports car to show you are a modern person. Incentive to do more and to stay.page 20 save paying the commission. Real Estate Practice, Edition 10, Chapter 1 Quiz Flashcards | Quizlet to disclosures to principals only. changes in the zoning. What about programs that offer to pay a real estate agent for names of potential borrowers? The Recovery Fund is funded by a $10 fee paid with every broker's or salesman's original license application. present the firms offer first and, if rejected, then present the other offer(s). Primary financing refers to loans made directly by the lender to the borrower. combination of percentage of the gross and minimum fee. the FHA. (Page 397). the total monthly housing payment divided by the gross monthly income. Which of the following statements regarding mobile home sales is TRUE? Yes, as long as you follow the rules set out in the Real Estate Settlement Procedures Act (RESPA). First-time visits to new listings by groups of agents are commonly known as. Properties listed below market value tend to take longer to sell than properties listed at market value. I will strive to improve my sales techniques. Telephone responses from a For Sale sign indicate what about the prospective buyer? failure to mention the presence of the group would make you liable for any damages the buyer suffered. accepting escrow instructions having blanks that are to be filled in after the instructions are signed. Most people read from the upper left to the lower right corner when looking at an ad. The caller can afford the home and area or they would not have called. his or her principal. It depends. It has also been used to fund the filing of analyses and comments before governmental agencies. sell the item, not the benefits. The statement, The price seems a little high. All of these A reluctance to leave a property An inquiry as to when possession would be possible, These are words or actions indicating an interest.Page 437-438, An example of an open-ended question would be, Do you like this house? What do you like about this neighborhood? Is there any more information you would like? Can you afford a $1,500 house payment?, What do you like about this neighborhood?, You want an explanation, not yes or no answers.Page 428, For effective communication it is BEST to. Which of the following would constitute an acceptance? Is the legal fund ever used for purposes not directly related to REALTORS? And the company must promote its services during the event to qualify for the Real Estate Settlement Procedures Act (RESPA) advertising exemption. ), Using time-management to increase income, you should realize that, b.) It saves time and buyers dont have to deal with owners directly. Case 2: The association filed an amicus brief in an Austin case in which a savings and loan association filed suit against the attorney general of Texas, arguing that federal regulations preempted the Texas Constitution regarding its homestead protection. These are suggestions not necessarily legal duties.page 66-67. What are the advantages of a good time-management program? The California Homeowners Exemption for property taxes is, But the Veterans exemption is $4,000.Page 617. both the exchange property must be identified within 45 days and the exchange must be completed no more than 180 days after transfer of exchanged property. (page 302), If a listing is overpriced, the agent should suggest to the owners that. avoid seller disclosures. exclusive right to sell net listing. a periodic tenancy. Any legal or other information found on this page or at other sites to which we link, should be verified before it is relied upon. information about yourself. Texas REALTORS provides content through various online platforms, including this blog. Increased income Chapter One; Getting Started in Real Estate - Quizlet Information about real estate agent and mortgage broker compensation first appeared in a 1995 HUD informal advisory opinion issued to the Independent Bankers Association of America. Advertising a property that is not available and you wont sell so you can find buyers that you hope to switch to other properties. Course Hero is not sponsored or endorsed by any college or university. If you are going to be buying a new car for real estate sales, you should consider - a full-sized, fourdoor car for easy entrance and exit. both blockbusting and steering. that the seller post a bond to cover damages by hazards discovered at a later date. The local association may forward the application to the Texas REALTORS Legal Review Committee recommending that the application be approved, or it may deny the application and return it to the applicant. is satisfied with the general appearance of the home. California Real Estate Practice Final Exam (Questions - Browsegrades retain top producers . A mobile home must be at least 2 years old for a real estate agent to sell it. Cost of sales is 45% of the gross commissions. a former owner had AIDS. Conceal the fact that the advertiser is an agent, But any indication, like Agt., meets the requirement.Page 366. Which of the following loans is MOST likely to have the highest initial interest rate? both buyer and seller must agree to amend the escrow instructions. Independent Contractor Agreement for Sales Associate, Texas REALTORS is stronger when members work together. submit all written offers in a prompt and timely manner. Residential real estate uses 27.5 years. all of these. Licensed care facilities near the property that serve 6 or fewer people need not be disclosed. include credit terms. conforming loans. taxes based on a persons ability to pay. Is it difficult for a Texas REALTOR to obtain assistance from the legal fund? $2,842.50. all of these. $3,411.00. (Page 580). a listing having a safety clause. neither paying a referral fee to anyone other than his or her own employees nor accepting escrow instructions having blanks that are to be filled in after the instructions are signed. Which of the following are exempt from licensing under the escrow law? three months rent. Which of the following statements regarding mobile home sales is TRUE? ethnic groups. advertise in designated areas. However, under the circumstances, the real estate agent should not promote the lender or its services to the customer, and the payment must be made to the agent, regardless of whether the lead ultimately turns into a closed loan. combination of percentage of the gross and minimum fee. A broker shall provide the name of each delegated supervisor to the Commission on a form or through the online process approved by the Commission within 30 days of any such delegation that has lasted or is anticipated to last more than three consecutive months. Which of the following statements is TRUE? wait to show the property until the other agent has left. because you concentrate on a small number of select properties, you are able to give more individual attention to the property. California Real Estate Law. An agent is required to disclose to a buyer that: the property has earthquake weakness if it was built before 1960. there was a death by murder or suicide on the property more than 3 years ago. broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes. The Legal Fund is used for a number of expressed purposes: 1. the condition of the property. keep in mind their first duty is to the owners, not to themselves or their firm. (Page 388). Agents must advertise their names and license status. (Page 397), When a caller wont give a name, the best approach would be to, hang up. Attorneys Savings associations All of these Banks, As well as brokers, under specified circumstances.Page 577. provides extended coverage for lenders. motivate salespeople. A purchaser of a $100,000 single-family home for her family refuses to close escrow after making a $40,000 deposit. is merely an offer to insure. The Internal Revenue Service sets strict standards for employment. Your answer is correct 3 Brokers have liability to commission elect, disclose, confirm. H0:80Ha:<80. A person employed by a builder to sell the builders homes is exempt from the Real Estate License Act. disclosure of deferred interest. particular ethnic group. (page 20), You can find out how things are done in your office by. Brokers have liability to their commissioned salespersons in respect to: a.) All of these. Keeping rent receipts until foreclosed.Page 489, When presenting multiple offers the agent should. avoid cooking with foods having strong and lasting odors. Ethics tends to precede the law. One risk you face is that the lines of activities, duties, and responsibilities between the two positions can become blurred, especially to a buyer. Through the Legal Fund, the Texas REALTORS was able to monitor and participate in the action. neither 39 years for the property life nor the straight-line method. open listing. Owner Adams has a listing in force with Broker Baker. ), Chapter one of the 'Real Estate Practice' book for California Realty Training. last 20 days of the listing. institutional advertising. Advertising one property brings in buyers for other properties. In addition to the Civil Rights Act of 1968.page 77, The California Act that prohibits discrimination by all California businesses is the.