a vacant lot. the down payment divided by the purchase price. the straight-line method. You can find out how things are done in your office by studying your office procedure manual. (Page 294), In describing sales successes, it would NOT be advantageous to point out that. 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. What type of listing is legal in California, but is considered illegal in some other states? unemployment insurance . c. minimum wage requirements. Usually 36 percent for qualifying. neither that the property must have been held for productive use in a trade or business or for investment purposes nor that the exchange property must be of like-kind. 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. What is the best test to evaluate if an act is ethical? working an area for buyers and sellers. 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. it is best not to mention any problems with the property. d. salesperson not be supervised by the broker. a recapture clause. Through the Legal Fund, the Texas REALTORS was able to monitor and participate in the action. The damages cannot exceed 3% of the purchase price. lack of liquidity. The damages cannot exceed 3% of the purchase price. (Page 238-239), In preparing estimated seller proceeds, you should remember that. unsolicited fax messages. federally related loans. exclusive agency listing. percentage lease. settlement sheet issued on closing a transaction. First-time visits to new listings by groups of agents are commonly known as. Should cover what is expected and how.page 48, The Civil Rights Act that applied only to race was the, The Civil Rights Act of 1866 gave rights to recently freed slaves. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to a.) Which of the following statements regarding ethics is TRUE? Liquidated damages cannot result from buyer default. office buildings. A married couple sells their principal residence of 30 years for $650,000. A mortgage company sponsoring an educational event to promote its services can do so as long as the cost associated with the event doesnt cover any of the agents other expenses they would otherwise have to pay, such as the cost of the CE credit. I will obtain three new listings each month. One who has AIDS. (Page 410-411), When arriving at a property for a showing, if another agent is showing the property, you should. 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. The Residential Lease Application states that our company must make our office privacy policy available to rental applicants upon request. 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. 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. Real Estate Practice Wednesday Afternoon RE 141 Section 3303 MSJC.edu For example, it would be a RESPA violation if you received a fee for every click that resulted in an application or closed loan. Either Open or Exclusive agency Exclusive agency Exclusive right-to-sell Open, A commission paid only if agent makes sale.Page 264-272. Law provides that agents are not liable for failure to disclose any deaths on the property that occurred more than three years ago. Are there any risks I should be aware of before agreeing to this? say, I will give you the address if you give me your name. say, Would it be all right if I sent you some information and photos of that property and several others? say, Im sorry; office policy prohibits me from discussing any properties if I dont know with whom I am talking., say, Would it be all right if I sent you some information and photos of that property and several others?, It is not threatening and most will agree. condominium. 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 they want to quickly locate property that meets their needs. exclusive right to represent listing. c. You will not post content or take any action on our blog posts that infringes someone elses rights or otherwise violates the law. caravans. What are the advantages of a good time-management program? Disclosure of AIDS is never required. Helping Texas REALTORS understand their legal rights and duties under law 2. the Truth in Lending Act. There are no do-not-knock or do-not-mail laws that would prohibit these methods of soliciting business, so you could consider sending a nicely worded letter to the owner or making a personal visit to the home. both blockbusting and steering. For listing agents, selling real estate involves three separate sales. By interacting with any of our blog posts, you agree to comply with the following terms and conditions: Texas REALTORS, in its sole discretion, reserves the right to remove any content you have uploaded, posted, or submitted onto any of our blog posts if we believe that it violates these terms or conditions. keep in mind their first duty is to the owners, not to themselves or their firm. price. arbitrate disputes if directed to by the court. (Page 397). Every six months, the Texas REALTORS Legal Review Committee reviews applications and requests for funding from the Legal Fund from Texas REALTORS and litigants involving cases that significantly affect the entire real estate industry. neither blockbusting nor steering. What would be a word or words to use in a listing presentation that denotes a benefit? the monthly gross income divided by the amount to be financed. all of these. taxes. A broker may discriminate against which type of tenant? subordination. do all the talking yourself. B. motivate salespeople . What are the advantages of a good time-management program? Without all owners, it cant be accepted.Page 479. Advertising a property that is not available and you wont sell so you can find buyers that you hope to switch to other properties. conforming loans. Both a real estate agent can sell a mobile home in a rental park space and a real estate agent can sell a mobile home with the land it is sited on, But a real estate agent cant sell a mobile home that must be moved. sell the item, not the benefits. an estate for years. CA Real Estate Practice Flashcards Preview - Brainscape (Page 369), In advertising, the real estate agent should know that it is illegal to. If he were working exclusively for the builder, he would be exempt from the act and you would not be responsible for his activities. What type of listing did the broker have? No. Providing legal assistance for matters pending in court or governmental agencies 3. Brokers have liability to their commissioned salespersons in respect to: If you are going to be buying a new car for real estate sales, you should consider: b.) must be signed by buyer and seller. information about yourself. information about your firm. a licensed property manager. Harry has some buyers that he believes are ready to make an offer. people are attracted to fixer-upper ads because they sense a bargain. 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? an estate from period to period. conceding before answering. The Internal Revenue Service sets strict standards for employment. Owner Adams sold the house without the aid of Broker Baker. you must mention this to a prospective buyer. use technical terms wherever possible. misrepresentation. neither agents have inventory nor they want to quickly locate property that meets their needs. Which of the following statements regarding the use of goal-setting is FALSE? talk fast if the customer talks slowly. Am I still required to have a manual? Keeping rent receipts until foreclosed.Page 489, When presenting multiple offers the agent should. None of these. ), You can find out how things are done in your office by, d.) (studying your office procedure manual.). All of these. In another case, litigants in a city-zoning dispute asked the Texas REALTORS to file briefs with the court. blockbusting. While Texas REALTORS has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, Texas REALTORS makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to - However, only bona fide employees are covered by this exemption. minimum fee. both use their own funds to make loans and service loans they make. particular subdivision. What about programs that offer to pay a real estate agent for names of potential borrowers? both, the agents have inventory and the buyers want to quickly locate property that meets their needs. Net Exclusive right-to-sell Exclusive agency Open, The broker did not give the principal a copy of the listing. total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income. broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes. Which promotion would have the lowest cost to the broker? neither federally related loans nor 1 to 4 residential units only. the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants. both a debit on the buyers closing statement and a credit on the sellers closing statement. neither is satisfied with the general appearance of the home nor is satisfied with the area. Neither Primary financing refers to loans made directly by the lender to the borrower nor Secondary financing refers to the resale of existing loans. You should tell someone about your goals. More than two typefaces in an ad will likely have a negative effect on the ad. ad will cover every major feature of a house. You should consult an attorney regarding the risks involved and how to protect yourself from liability before agreeing to this situation. because you concentrate on a small number of select properties, you are able to give more individual attention to the property. (Page 591). For copies of the procedures or applications, contact the Legal Affairs Department. Nonresidential real estate purchased since 1987 must be depreciated using: both 39 years for the property life and the straight-line method. risk. Having the ability to switch property is important. Which of the following statements BEST describes a sublease? You will not use our blog posts or posted content to do anything unlawful, misleading, malicious, or discriminatory; and. If you are going to be buying a new car for real estate sales, you should consider . once rejected, an offer cannot be accepted. A listing office typically gives 50% of the gross commission to the selling office and splits the remainder with 40% to the broker and 60% to the listing salesperson. One of the requirements for a real estate salesperson to be regarded as an independent contractor by the IRS is that the, d.) (broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes. Which proposition makes it possible for taxpayers 55 years or older to transfer current base-year value of their principal residence to a replacement home within the same county? The commission may be based on a flat fee arrangement, or (more commonly) as a percentage of the revenue generated. Things such as car signs, business cards, and client referrals could lead a buyer to believe that your agent was acting as a real estate salesperson while working for the builder. While real estate agents will find it difficult to serve as both real estate agents and mortgage brokers, or real estate agents and part-time lender employees, agents may still be paid under a RESPA exemption that permits persons (even ones that refer lenders business) to be paid for services rendered, so long as the payment is commensurate with the services provided. that the seller post a bond to cover damages by hazards discovered at a later date. What kind of loan do they have? Disclose as soon as possible, confirm with offer.page 119-120. You can find out how things are done in your office by - studying your office procedure manual. an exculpatory clause. With a constant stream of prospects.page 207, A major reason owners attempt to sell without an agent is to. Defraying legal expenses for cases in which the association intervenes or files briefs as a friend of the court 5. a former owner had AIDS. Before accepting the claim at face value, ask to see a copy of HUD's approval. Brokers have liability to their commissioned salespersons in respect to: a.) Very rarely. Properties listed above market value tend to sell faster than properties listed at prices closer to market value. changes in the zoning. REALTOR membership is a criterion that a broker may voluntarily choose to require of independent contractors. neither use their own funds to make loans nor service loans they make. a sports car to show you are a modern person. At the time of the refinance a survey incorrectly stated that the property did not lie in a flood hazard area. In real estate, the term farming refers to. He says to them, "Would you prefer to take possession on September 1 or October 1?" (b) workers compensation. Probably, the most crucial requirement to satisfy in the application process is that the case must be of significance to REALTORS as a class or the real estate industry as a whole. is voluntary. loan index. Which of the following statements regarding the time it takes for a property to sell is TRUE? Only required for exclusive listings.Page 264, A listing where the licensee is subject to disciplinary action for demanding a fee would be. downpayment. Rumford Act. asking every prospect to recommend another prospect. With reasonable expertise of a licensee.page 124. to buyer disclosure only. you should concentrate more on possibilities than probabilities. open-end loan. always selling a new home to the seller. forgery in the chain of title. the property has earthquake weakness if it was built before 1960. neither 30-day month nor 360-day year. particular ethnic group. chemical tests of the soil for all dangerous contaminants. both motivate salespeople and retain top producers. any of these. nonbinding arbitration of disputes. all of these. supporting statements with facts. amount over the index the lender charges as interest. It is also acceptable to classify it as part of the expenses of the sales department. 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. can sell a mobile home in a rental park space and A real estate agent can sell a mobile home with the (page 63), The Seller Financing Disclosure Statement provided to both buyer and seller provides. a defeasance clause. (Page 580). Ads in an outside column will generate more interest than ads in an inside column. neither a counteroffer really rejects the offer nor once rejected, an offer cannot be accepted. Residential real estate uses 27.5 years. salesperson is not supervised by the broker. Thus, a real estate agent could receive nominal compensation, for supplying a lender with certain basic information about a customer (i.e., name, address, telephone number, price of the newly purchased home, etc.). The property was most likely advertised as. county-owned housing projects. How can I help make clear to the IRS that my agents are independent contractors, not employees? institutional loans. 1031 exchange. you will work just as hard as the large firm. is satisfied with the area. There is still the possibility of a sale.Page 493, A purchaser who obtains owner-financing and fails to apply rent payments to the loan payments may be guilty of. When a change is required to escrow instructions: the seller can amend the escrow instructions. Your answer is correct. Which of the following statements regarding mobile home sales is TRUE? (Once set, goals should never be changed. show unoccupied property first to give owner-occupants a chance to prepare for the showing. interest. eminent domain. blockbusting. To be enforceable, which element is required in an exclusive right-to-sell listing? The following statements are all examples of abstract goals EXCEPT. In each of these cases, the board of directors determined that there was a significance to REALTORS as a class. title insurance costs. ), Using time-management to increase income, you should realize that, b.) the most desirable feature. While HUD may provide general guidance, the department does not approve individual business plans, and generally does not opine as to what amounts constitute fair and reasonable compensation. The three stages of presenting an offer include all of the following EXCEPT. 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. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to motivate salespeople and retain top producers The following statements are all examples of abstract goals I will improve my communication skills. cashiers checks. What was the reason for creating the inferior courts? Is the legal fund ever used for purposes not directly related to REALTORS? d. You will not post any information intended to sell or advertise a business, product, or service. Is the legal fund like an errors and omissions insurance policy? Turn perceived negative into a positive. motivate salespeople. being over-eager to close. let the buyer know the price so they can consider it before the agent arrives. a subordination clause. 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. Neither Primary financing refers to loans made directly by the lender to the borrower nor Secondary financing refers to the resale of existing loans. meeting objections half-way. (Page 486), In making an appointment to present an offer, the agent should. a. Your answer is correct. should never be changed. both a counteroffer really rejects the offer and once rejected, an offer cannot be accepted. both A and. you should concentrate on D category activities before proceeding to B and C activities. . ratio of current rental costs to estimated housing costs. using one period of time to list and another period of time to sell in a never-ending cycle. These are all good pieces of advice.Page 415-416. the total dollar costs to take possession. waive their rights to arbitrate. Brokers have liability to commission salespeople as to unemployment insurance. every listing. (Page 397), When a caller wont give a name, the best approach would be to, hang up. locating prospective buyers. c.) both a and b. d.) neither a nor b. Increased income Thus, the reversing entry is: On the 15th of the month, ABC pays Mr. Smith his commission and records this entry. (Page 352). all of these. primarily for 1 to 4 residential units. Yes, as long as you follow the rules set out in the Real Estate Settlement Procedures Act (RESPA). Course Hero is not sponsored or endorsed by any college or university. - Once set, goals the Real Estate Settlement Procedures Act. all of these. Records that include the independent contractor agreement and annual statements of understanding would provide persuasive evidence about the nature of the relationship between the parties. The Legal Review Committee, in turn, makes a recommendation to the Texas REALTORS Board of Directors either to approve or deny the application. greater responsibility. universal exclusion. 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. a.) industrial parks. deductibility of taxes. both 30-day month and 360-day year. Brokers have liability to their commissioned salespersons in respect to. A mobile home must be at least 2 years old for a real estate agent to sell it. The Real Estate Recovery Fund is a fund created by the Real Estate License Act that is maintained by the Texas Real Estate Commission (the state agency regulating Texas real estate brokers and salesmen). both motivate salespeople and retain top producers. I will improve my communication skills. The Texas REALTORS strongly encourages members to maintain E&O insurance. Requires a subject heading, indicating that it is an advertisement with an opt-out mechanism, etc.page 193, The fine for making a single unauthorized solicitation call to a residential number listed on the do-not-call registry can be up to, However, recently updated to $40,000 per call.page 189. special interest of buyers. Plus they must be licensed and paid only for success. both 30-day month and 360-day year. You can classify the commission expense as part of the cost of goods sold, since it directly relates to the sale of goods or services. Reasonable compensation (generally a flat fee, not a percentage of the loan amount) may be justified. 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. why the owners should deal with your firm. No title insurance covers zoning changes.Page 599. cash. obtaining listings from visitors. When loan puts a lien on borrowers residence.Page 560. Similar properties sold within the past 2 years, Similar properties sold within the past 3 months, A listing presentation manual should include. Unruh Act. Three years after the purchase, the property flooded and the buyers then learned that the property had previously flooded. Which of the following listings does NOT require the agent to use diligence to locate a buyer? use their own funds to make loans. Owner Adams has a listing in force with Broker Baker. Which of the following is an example of a tie-down? (Page 427), When dealing with a prospect who is silent, the BEST approach would be to. the factor that makes a neighborhood cohesive. Instructions to an owner upon taking a listing should include all EXCEPT. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to a. motivate salespeople. Owners want to know what is happening.page 300. stay in close communication with clients or customers. they extend the listing for a longer period as price is related to time to sell. No. retain top producers. personal property. A commission is a fee that a business pays to a salesperson in exchange for his or her services in either facilitating, supervising, or completing a sale.The commission may be based on a flat fee arrangement, or (more commonly) as a percentage of the revenue generated. both, an owner who gets less than they expected to receive from a sale is likely to be unhappy with you, and it is better to estimate costs a little on the high side than the low side. ask leading questions. allow buyers a chance to confer without the agent being present. Salesperson Andrews listing was sold by another office for $189,500. doubling A time activities should double your income. A broker never saw, talked to, or corresponded with a buyer, yet earned a commission. a debit on the buyers closing statement. the total monthly housing payment divided by the gross monthly income. increased by a list price below that indicated by the comparative market analysis. report violations of the real estate law to the Bureau of Real Estate. Which of the following statements regarding the use of goal-setting is FALSE? open listing. both buyer and seller must agree to amend the escrow instructions. all parties the agent has dealings with. If Im a broker whos exempt from continuing education requirements, do I still have to take the Broker Responsibility course? (Page 584), A standard policy of title insurance protects the purchaser from all EXCEPT. before the buyer executes an offer. I will obtain three new listings each month. So if reasonable, it should be accepted. a percentage lease. Holden Act. (c) minimum wage requirements. Flyer pointing out attractive features about a property. appearing confident. include credit terms. 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. All types of properties are subject to management.Page 658, A lease for a definite period of time would be. ad within a price range or area creates prospects for other homes in the price range or area. that the property must have been held for productive use in a trade or business or for investment purposes. It should be completed annually to reaffirm the relationship that exists between you and your agents. Although showing owners you are working on their behalf is least important.page 327-331. procedure for showing a property to prospective buyers. A battery plant begins discharging cadmium into a river at midnight on a certain day and the concentration CCC of cadmium at a point 1,000 meters downriver is subsequently measured at 3-hour intervals over the next 24 hours, as indicated in the accompanying table. submit all written offers in a prompt and timely manner. all of these. There is a formal application and certification that an applicant, or his attorney, must complete. The fees must be "reasonably related to the value of the services performed." conversion. list in designated areas. An agents inspection under Easton v. Strassburger (as codified by state statutes) applies to. all of these. restrictions on e-mail solicitations. both a counteroffer really rejects the offer and once rejected, an offer cannot be accepted. Under the cash basis of accounting, you should record a commission when it is paid, so there is a credit to the cash account and a debit to the commission expense account. The entire leasehold must be transferred. In a sublease, the sublessor is liable to the owner. 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. A Transfer Disclosure Statement must be provided to the buyer when the sale involves. Texas brokers who are exempt from TRECs continuing education requirements do not have to take the Broker Responsibility course. If the price quoted is too high, you can be sure the caller will let the agent know. Reimbursing travel expenses of Texas REALTORS who participate in form-development task forces. Persons who are not members of the REALTOR organization have asked TAR to file amicus briefs in cases in which no REALTOR is involved. Principal residence does not qualify for a tax deferred exchange.Page 628. none of these. A court or TREC hearing officer might reach the same conclusion and assess liability or responsibility on the broker. maximum that can be charged for the loan. If you are going to be buying a new car for real estate sales, you should consider. 4: The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to: (a) motivate salespeople. Which of the following statements is TRUE?