That means in order to be considered an employee rather than an independent contractor, the agent/loan officer must: 1) be under the supervision and control of a lender's office; 2) use the lender's equipment; 3) have set hours; 4) receive a W-2 form; 5) receive standard employee benefits; and 6) have the lender be liable for the employee's conduct. they adjust the price to the current market. Helping Texas REALTORS understand their legal rights and duties under law 2. 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. broker that fails to advertise a property every week is not doing a proper job of advertising. The Real Estate Commissioners suggestions for professional conduct include that the agent. Rumford Act. Ethics and good business are not compatible. a full-sized, four-door car for easy entrance and exit. assessed value of property acquired before 1978 to be reduced to the amount shown in the 1975 tax roll. There is an exception to the do-not-call rules: If you have a prior business relationship with the owner that ended within 18 months, you can call him. sales taxes. Question 4 1 / 1 pts The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. That means that a real estate agent that becomes a "loan officer" only after selling a property is unlikely to be considered a true employee and therefore would not be covered by the RESPA exemption. What type of listing is legal in California, but is considered illegal in some other states? Brokers have liability to commission salespeople as to Correct o minimum wage requirements. apartments. If Im a broker whos exempt from continuing education requirements, do I still have to take the Broker Responsibility course? Thus, the reversing entry is: On the 15th of the month, ABC pays Mr. Smith his commission and records this entry. maximum that can be charged for the loan. What kind of closing technique is Harry using? information about the buyers. One who has a guide dog. (Page 351-352). must be signed by buyer and seller. Index plus margin equal interest charged.Page 539, Loans that meet the underwriting standards of Fannie Mae or Freddie Mac are known as. A broker may discriminate against which type of tenant? - Once set, goals Finally, many of the promotional materials claim their compensation programs have received HUD "approval." open-end loan. eminent domain. The Fifth Circuit Court of Appeals reversed and held that the Texas Constitution had been superseded. None of these. occupants name from the address. a defeasance clause. Neither Primary financing refers to loans made directly by the lender to the borrower nor Secondary financing refers to the resale of existing loans. percentage of the gross. You should contact your attorney to obtain advice with respect to any particular issue or problem. Persons who are not members of the REALTOR organization have asked TAR to file amicus briefs in cases in which no REALTOR is involved. Sells the firm, not a specific property.Page 342. type of property. $2,842.50. Others claim that their programs have been blessed by HUD. a percentage lease. condominium. total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income. a blank space since it attracts attention. report violations of the real estate law to the Bureau of Real Estate. The caller may want a lower-priced property. all parties the agent has dealings with. the straight-line method. both 39 years for the property life and the straight-line method. Avoid wasting time and prioritize time. recommend to the owner to accept it. For a property built before 1960, earthquake weakness must be disclosed. All types of properties are subject to management.Page 658, A lease for a definite period of time would be. The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. both A and. Unit 13 Florida Real Estate - Chegg uniformly to all real estate transactions. The Residential Lease Application states that our company must make our office privacy policy available to rental applicants upon request. re120Q1.docx - Question 1 1 / 1 pts Which of the following Directing to properties based on race.page 71. cooperate with other agents in designated areas. use their own funds to make loans. because you concentrate on a small number of select properties, you are able to give more individual attention to the property. 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. Increased income open listing. For listing agents, selling real estate involves three separate sales. A commission may be earned by an employee or an outside salesperson or entity. Lowercase letters are easier to read than capital letters. The caller can afford the home and area or they would not have called. No title insurance covers zoning changes.Page 599. cash. A both motivate salespeople and retain top producers. At the time of the contract, the agent provided the buyer with a detailed written statement (signed by the buyer) about the toxic dangers and health hazards posed to residents of the subdivision, since it was known that a nearby site was environmentally contaminated. you should divide your time equally between A, B, C, and D category activities. a listing having a safety clause. first 20 days of the listing. A brokerage firm has operating expenses of $254,000. While mortgage brokers act as middlemen.Page 517-518, A loan that can be increased to an agreed upon limit would be a. wrap-around loan. This includes possible civil liability for negligent or other inappropriate activities. operational advertising. Neither buyer nor seller may unilaterally modify the escrow instructions. a history of the listing and your sales effort. It should not matter. Types of property requiring property management include. bare-bones classified ad on a property. b.) being over-eager to close. firsts. 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. every listing. None of these. Real Estate Practice Flashcards | Quizlet 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. confirm, elect, disclose. decreased by listing above the market value. Commission expense accounting AccountingTools all of these. The burden of responsibility. Under the accrual basis of accounting, you should record an expense and an offsetting liability for a commission in the same period as you record the sale generated by the salesperson, and when you can calculate the amount of the commission. recommend to the owner to counter the offer. When loan puts a lien on borrowers residence.Page 560. (Page 383). A real estate agent can sell a mobile home in a rental park space. She has a signed liquidated damages clause. The Legal Review Committee, in turn, makes a recommendation to the Texas REALTORS Board of Directors either to approve or deny the application. because owners want to get as much as possible, you should underestimate costs so the net will be greater. failure to mention the presence of the group would make you liable for any damages the buyer suffered. Is the legal fund like an errors and omissions insurance policy? At the end of the accounting period in which Mr. Smith generates the sale, ABC creates the following entry to record its liability for the commission: ABC then reverses the entry at the beginning of the following accounting period, because it is going to record the actual payment on the 15th of the month. (page 68). introduce yourself and your buyers to the other agent and go ahead with your showing. 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. What would be a word or words to use in a listing presentation that denotes a benefit? Course Hero is not sponsored or endorsed by any college or university. county-owned housing projects. The broker did not violate law or regulations because the listing was an. 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 price was too high. Legally binding agency relationships may be formed between a principal, Select the statement that is true of consumer law prior to the 20th century. ), You can find out how things are done in your office by, d.) (studying your office procedure manual.). Harry has some buyers that he believes are ready to make an offer. The original lessee is secondarily liable, and the person in possession is primarily liable under the original lease. But the caller might not be able to afford the property. Usually 28 percent for qualifying. remain silent to force the prospect to talk. is satisfied with the general appearance of the home. Only required for exclusive listings.Page 264, A listing where the licensee is subject to disciplinary action for demanding a fee would be. 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? provide sufficient facts so the receivers can form valid conclusions. Which of the following is NOT one of the three? submit all written offers in a prompt and timely manner. exclusive right to represent listing. love of family. In one informal HUD interpretation, the department indicated that a sale of a list of consumers to a settlement service provider did not violate RESPA provided the payment is for the use of the list and is not further conditioned upon the number of closed transactions resulting from the list, or any other consideration, such as an endorsement of the product being offered by the seller of the list. 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. amount over the index the lender charges as interest. The sublessee is a tenant of the original lessee. Brokerage Liability Issues - Texas REALTORS the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants. 30-day month. Compute the ppp-value and state your conclusion for each of the following sample results. 6% of $189,500 = $11,370. all of these. A common fee arrangement for commercial property managers would be a. percentage of the net. the monthly gross income divided by the amount to be financed. One of the agents I sponsor wants to also work part time selling homes for a local home builder. 360-day year. all of these. Such as a Transfer Disclosure Statement.page 107, A fiduciary relationship applies to a real estate licensee and to. federally related loans. You should check the do-not-call list before soliciting such listings to avoid violating 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. What are these new rules and have lenders received HUD approval for these programs? Having the ability to switch property is important. Usually 36 percent for qualifying. attention, interest, desire, action. For example, it would be a RESPA violation if you received a fee for every click that resulted in an application or closed loan. appreciation. - Both A real estate agent Their adjusted cost basis is $80,000. Owners want to know what is happening.page 300. real property taxes. present the firms offer first and, if rejected, then present the other offer(s). Reg. o unemployment insurance. newly acquired property to have a maximum basic tax levy of 1%. show buyers homes they cannot afford to impress them with the caliber of homes to which the agent has access. H0:80Ha:<80. Which of the following are exempt from licensing under the escrow law? Where can we find information about what we should include in our privacy policy? As an indication of value, which of the following would BEST indicate the market value of a home? 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. The buyers originally alleged damages in excess of $30 million. A sample of 100 is used and the population standard deviation is 12 . any of these. REALTOR membership is a criterion that a broker may voluntarily choose to require of independent contractors. the total monthly housing payment divided by the gross monthly income. steering. stay in close communication with clients or customers. Licensed care facilities near the property that serve 6 or fewer people need not be disclosed. If an employee is receiving a commission, then the company withholds income taxes on the amount of the commission paid to the employee. Attracts attention and is easy to read.Page 357. attention, interest, demand, action. The following statements are all examples of abstract goals EXCEPT: d.) (I will obtain three new listings each month. FHA loan. both a counteroffer really rejects the offer and once rejected, an offer cannot be accepted. Can a brokerage allow a mortgage company to sponsor a luncheon that offers CE for its agents? Issues Mobilization and Political Advocacy Assessment, TACS Texas Accredited Commercial Specialist, TAHS Texas Affordable Housing Specialist, TRLP Texas REALTORS Leadership Program, TRLS Texas Residential Leasing Specialist, TRPM Texas Residential Property Manager, Sales of Million-Dollar Homes in Texas Report. Commission is negotiable and not set by law. I recently got my brokers license, but I dont sponsor any agents. three months rent. does none of these. blockbusting. unsolicited fax messages. The legal fund is not a substitute for errors-and-omissions insurance. an estate. nonbinding arbitration of disputes. Bill and sue. An exclusive listing without a termination date, Must have a definite termination date.Page 266. ratio of net income to PITI. staying with a prospect until you have a contract. show unoccupied property first to give owner-occupants a chance to prepare for the showing. 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. Owner Adams sold the house without the aid of Broker Baker. arrange to have all owners present for the presentation. (Page 511-512), A loan in which the borrower buys under a land contract would be a. CalVet loan. The best heading for a classified ad on a home would be. Applicability of the legal principles discussed in this material may differ substantially in individual situations. No. (b) workers compensation. Owners are most interested in the bottom line.Page 490, When an offer is received, the owner should be made aware that. the average time from listing to sale for your firm is 42 days less than the average sale in your MLS. retain top producers . Which of the following statements is TRUE? So if reasonable, it should be accepted. The three stages of presenting an offer include all of the following EXCEPT. deductibility of taxes. cashiers checks. Which of the following listings does NOT require the agent to use diligence to locate a buyer? land it is sited on. recommend to the owner to counter the offer. Net Exclusive agency Exclusive right-to-sell Open, It is a unilateral contract and the agent has not agreed to use diligence.Page 264. sell the item, not the benefits. none of these. The buyer purchased the property under an assumption and refinanced the lien six months after closing. is voluntary. third month of a six-month listing. the commission was too high. 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. New listings excite agents and buyers.page 325, An open house was held on a property needing many obvious repairs. 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.) If not initialed, then the matter can go to the courts.Page 281. What kind of loan do they have? Which of the following statements regarding the truth-in-lending law is TRUE? an accredited property manager. 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. risk. Direct relationship between list price and time to sell.Page 224-225, 228, Benefits that an owner receives by listing with an agent include. You should tell someone about your goals. doubling A time activities should double your income. total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income. ask, inform, demonstrate, approve. ), Chapter one of the 'Real Estate Practice' book for California Realty Training. The damages cannot exceed 3% of the purchase price. salesperson is not supervised by the broker. it is better to estimate costs a little on the high side than the low side. (Page 128), A selling agent must comply with agency disclosures to the buyer. a commercial building. There are many lawsuits in which a Texas REALTOR may be involved that are not significant to Texas REALTORS or the real estate industry as a whole. do all of these. What was the reason for creating the inferior courts? commercial property. An example of a closed-ended question, would be, Would you use this room as a bedroom or a den? Whose bedroom would this be? What do you think of the floor plan? Isnt this a large living room?, Can be answered with a yes or no.Page 428, In meeting a buyers objections the agent should consider. 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. Can you afford this house? What would you use this pantry for? Would you prefer to buy now or think it over? This is an exceptionally large kitchen, isnt it?, This is an exceptionally large kitchen, isnt it?, You get a series of yes answers.Page 415, If members of a minority racial or ethnic group live in the neighborhood of a home you are showing. portfolio loans. show the prospective buyers homes they have listings for in order to please the owners of those listings. Rumford Act. 50% of $11,370 = $5,685. 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. supporting statements with facts. Holden Act. neither federally related loans nor 1 to 4 residential units only. before the buyer executes an offer. a former owner had AIDS. 3. Less-common commission structures are based on the gross margin or net income generated by a sale; these structures are typically less used, since they are more difficult to calculate. For Sale By Owner Code violations Probate Evictions, The phrase centers of influence refers to. They hope to keep fee for themselves.page 190, If your firm is small, to obtain a listing when competing against a large firm you should emphasize that. Note, however, that real estate agents may not take loan applications in connection with FHA-insured loans. Some programs offer to make real estate agents part-time employees of the lender. Before accepting the claim at face value, ask to see a copy of HUD's approval. (Page 388). binding arbitration of disputes. 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. ad within a price range or area creates prospects for other homes in the price range or area. Liquidated damages cannot result from buyer default. changes in the zoning. A release from time pressures Which of the following statements regarding the use of goal-setting is FALSE? is satisfied with the area. All of these Lawful purpose Writing Consideration, Contract requirements plus Statute of Frauds.Page 263, The reason most mentioned by owners for NOT renewing listings is. participation loans. Neither the cities nor the (a) countries, (b) counties took responsibility for their deteriorating infrastructures. 4: The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to: (a) motivate salespeople. Is the legal fund ever used for purposes not directly related to REALTORS? 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. One way you can do this is by using the Independent Contractor Agreement for Sales Associate (TAR 2301) and the Statement of Understanding (TAR 2302). Which of the following statements regarding mobile home sales is TRUE? Which of the following is true of agency relationships? I will obtain three new listings each month. both 30-day month and 360-day year. obtaining listings from visitors. 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. Brown Act. None of these. retain top producers. taxes based on a persons ability to pay. net lease. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to a. motivate salespeople. It was more important than it is now, because consumer products were less sophisticated. disclose, elect, confirm. 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. both is satisfied with the general appearance of the home and is satisfied with the area. What kind of cases or actions has the Texas REALTORS Legal Fund been used for in the past? using one period of time to list and another period of time to sell in a never-ending cycle. 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. properties in close proximity. that the property must have been held for productive use in a trade or business or for investment purposes. Automatically ends at the end of the lease period.Page 694, A property manager would know that Section 8 housing refers to. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. information about yourself. first month of the second listing extension. a certified property manager. ask leading questions. One who has children. The property was most likely advertised as. arrange to have all owners present for the presentation. What about programs that offer to pay a real estate agent for names of potential borrowers? (Page 228,230). chemical tests of the soil for all dangerous contaminants. Some brokers charge a small fee every time someone clicks through to the lenders website. the firms logo. Inclusion of white space serves to emphasize a message. let the owners know which offers provide the agent with the greatest benefits. The Internal Revenue Service sets strict standards for employment. Bait-and-switch advertising is a federal offense. none of these. both motivate salespeople and retain top producers. neither a counteroffer really rejects the offer nor once rejected, an offer cannot be accepted. owners name from the tax number. (d) all of these. Only part of the leasehold is transferred in a sublease. both federally related loans and 1 to 4 residential units only. Neither Primary financing refers to loans made directly by the lender to the borrower nor Secondary financing refers to the resale of existing loans. How does this work and is it legal? 360-day year. In real estate, the term farming refers to. greater responsibility. Reasonable compensation (generally a flat fee, not a percentage of the loan amount) may be justified. 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. About a month after closing, the flood maps were revised and included the property in a flood hazard area. a model home. interest. 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.).