10080. legal description from the address. 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. 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. neither use their own funds to make loans nor service loans they make. information about yourself. 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. The sublessee is a tenant of the original lessee. Which of the following statements regarding the use of goal-setting is FALSE? Your answer is correct. both federally related loans and 1 to 4 residential units only. redlining. Similar properties sold within the past 2 years, Similar properties sold within the past 3 months, A listing presentation manual should include. 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. A real estate agent can sell a mobile home in a rental park space. How can I help make clear to the IRS that my agents are independent contractors, not employees? 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. settlement sheet issued on closing a transaction. 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. (Page 427), When dealing with a prospect who is silent, the BEST approach would be to. Direct relationship between list price and time to sell.Page 224-225, 228, Benefits that an owner receives by listing with an agent include. Defraying all or a portion of legal expenses for pending litigation in which a member is a party 4. assessed value of property acquired before 1978 to be reduced to the amount shown in the 1975 tax roll. cashiers checks. To catch the eye of buyers who desire that feature.Page 352. both motivate salespeople and retain top producers. Nonresidential real estate purchased since 1987 must be depreciated using: both 39 years for the property life and the straight-line method. ask, inform, demonstrate, approve. type of property. home solicitation phone calls. Lowercase letters are easier to read than capital letters. arrange to have all owners present for the presentation. allow buyers a chance to confer without the agent being present. If Im a broker whos exempt from continuing education requirements, do I still have to take the Broker Responsibility course? that the Alquist-Priolo Act be complied with. 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. waive their rights to arbitrate. Press release Yellow pages of a telephone directory Direct mail Billboard, A billboard that states Thomas RealtyA Name You Can Trust would be regarded as. both buyer and seller must agree to amend the escrow instructions. upon delivery of the sellers acceptance. recommend to the owner to accept it. mentioning a potential objection before the customer does. operational advertising. Brokers have liability to commission salespeople as to workers compensation. 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. working an area for buyers and sellers. let the owners know which offers provide the agent with the greatest benefits. Reg. delegating paperwork to others. (Page 369), In advertising, the real estate agent should know that it is illegal to. participation loans. blockbusting. 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 (page 302), If a listing is overpriced, the agent should suggest to the owners that. a particular subdivision. the price was too high. Commission is negotiable and not set by law. a licensed property manager. - Once set, goals maximum that can be charged for the loan. newly acquired property to have a maximum basic tax levy of 1%. (Page 351-352). For a property built before 1960, earthquake weakness must be disclosed. Yes. I know that Texas Real Estate Commission rules require a broker to maintain written policies and procedures for the brokers sponsored salespersons. speed up your presentation. One large picture is generally more effective than several smaller pictures. The three stages of presenting an offer include all of the following EXCEPT. keep in mind their first duty is to the owners, not to themselves or their firm. once rejected, an offer cannot be accepted. land it is sited on. 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. 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. 79 of 100 Bill and Sue secured a mortgage loan that is tied to an index which fluctuates over the life of the loan. Which of the following is NOT an institutional lender? recommend to the owner to counter the offer. insurance. 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. Disclosure of AIDS is never required. his or her principal. sales taxes. Which of the following statements regarding mobile home sales is TRUE? portfolio loans. the exchange property must be identified within 45 days. A brief summary of three recent cases is noted below. present them in the order received, obtaining acceptance, rejection, or counteroffer for each offer before proceeding to the next offer. While a written independent contractor agreement and statement of understanding are not required by law to establish and maintain an independent contractor relationship, its a good idea for brokers to use both. people are attracted to fixer-upper ads because they sense a bargain. Which of the following is NOT one of the three? Keeping rent receipts until foreclosed.Page 489, When presenting multiple offers the agent should. & H_{\mathrm{a}}: \mu<80 (a full-sized, four-door, car for easy entrance and exit. ), Using time-management to increase income, you should realize that, b.) 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. 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. third month of a six-month listing. If it is unethical, it is illegal. I will obtain three new listings each month. New listings excite agents and buyers.page 325, An open house was held on a property needing many obvious repairs. The commission may be based on a flat fee arrangement, or (more commonly) as a percentage of the revenue generated. Which of the following would constitute an acceptance? Present all offers together fairly. firsts. neither a counteroffer really rejects the offer nor once rejected, an offer cannot be accepted. list in designated areas. motivate salespeople and retain top producers. The earthquake safety disclosure statement. A lease that needs no notice for termination, would be. real property taxes. Owners presence inhibits buyers. What type of listing did the broker have? A court or TREC hearing officer might reach the same conclusion and assess liability or responsibility on the broker. why the owners should deal with your firm. Such as an equity line of credit.Page 531, A rescission right until midnight of the 3rd day after signing is provided for by. a history of the listing and your sales effort. property taxes to be increased up to 2% each year. These are suggestions not necessarily legal duties.page 66-67. neither 39 years for the property life nor the straight-line method. federally related loans. a credit on the buyers closing statement and a debit on the sellers statement. neither 30-day month nor 360-day year. office buildings. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to a.) I will improve my communication skills. both the worse you make the property appear, the greater your response is likely to be and people are attracted to fixer-upper ads because they sense a bargain. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to motivate salespeople and retain top producers Using time-management to increase income, you should realize that doubling "A" time activities should double your income. ad within a price range or area creates prospects for other homes in the price range or area. The entire leasehold must be transferred. Automatically ends at the end of the lease period.Page 694, A property manager would know that Section 8 housing refers to. Course Hero is not sponsored or endorsed by any college or university. an estate. No. A number of statutory elements must be satisfied by the consumer before he can file a claim for payment out of the recovery fund, including first obtaining a judgment against the broker or salesman that is not satisfied. 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. Agents must advertise their names and license status. conversion. the down payment divided by the purchase price. If the agent advertises the APR, the agent must include all credit terms. the total monthly housing payment divided by the gross monthly income. percentage of the gross. No. every nonresidential listing. 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. 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. use abbreviations such as Agt. or Bro. instead of the name of the firm. it is best not to mention any problems with the property. all of these. In a sublease, the sublessor is liable to the owner. loan in designated areas. 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. Residential real estate uses 27.5 years. institutional advertising. Brokers have liability to commission salespeople as to workers compensation. 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. downpayment. ad will cover every major feature of a house. Net Exclusive right-to-sell Exclusive agency Open, The broker did not give the principal a copy of the listing. reading the information on the back of your real estate license. there is a licensed care facility that serves three people across the street from the property. Rumford Act. (page 308). binding arbitration of disputes. (Page 231). 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. Question 4 1 / 1 pts The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. ignore the other agent and go ahead with your showing. o unemployment insurance. the exchange must be completed no more than 180 days after transfer of exchanged property. I keep hearing about new RESPA rules that allow real estate agents to sell a buyer a home and earn a loan-origination fee from the lender. taxes based on a persons ability to pay. The association needs you to volunteer your voice and exper. (Page 630), The dates November 1, December 10, February 1, and April 10 relate to. More than two typefaces in an ad will likely have a negative effect on the ad. both motivate salespeople and retain top producers. What type of listing is legal in California, but is considered illegal in some other states? And the company must promote its services during the event to qualify for the Real Estate Settlement Procedures Act (RESPA) advertising exemption. an estate for years. first month of the second listing extension. introduce yourself and your buyers to the other agent and go ahead with your showing. an FHA home-purchase plan for renters. uniformly to all real estate transactions. Agency relationships require an exchange of consideration to be formed. institutions within an area that influence behavior. A release from time pressures both a counteroffer really rejects the offer and once rejected, an offer cannot be accepted. Fair Housing Month signifies a recommitment to advancing equitable opportunities and expanding homeownership. (Page 693-695), Security deposits for unfurnished residential rentals cannot exceed. Which of the following statements BEST describes a sublease? Their adjusted cost basis is $80,000. 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. a defeasance clause. net lease. remain silent to force the prospect to talk. Buyers resist pressure before they are ready.Page 447, Disadvantages of home-ownership include all of the following EXCEPT. A mobile home must be at least 2 years old for a real estate agent to sell it. B. . You will not post any defamatory, discriminatory, libelous, threatening, vulgar, sexually explicit, abusive, profane, rude, or obscene content (including comments); b. Attorneys Savings associations All of these Banks, As well as brokers, under specified circumstances.Page 577. provides extended coverage for lenders. they extend the listing for a longer period as price is related to time to sell. your average sale is at 94.5% percent of list price while the average for your MLS is 87.3%. the Truth in Lending Act. You may assume that the concentration is 0 when the cadmium is first discharged; that is, C(0)=0C(0)=0C(0)=0. an estate from period to period. 3: Brokers have liability to commission salespeople as to: (a) unemployment insurance. flyer pointing out attractive features about a property. 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. An unhappy seller could mean a sale that does not close. Compute the ppp-value and state your conclusion for each of the following sample results. ask leading questions. 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). Bait-and-switch advertising is a federal offense. a warning as to balloon payments. the monthly gross income divided by the amount to be financed. provides insurance coverage until the title insurance policy is issued. lack of liquidity. both, the agents have inventory and the buyers want to quickly locate property that meets their needs. (Page 480-481). a debit on the buyers closing statement. No. These show that you understand the buyers concerns.Page 439-441. What is legal but unethical now might be illegal tomorrow. Disclosure law that also prohibits lender rebates. The Texas REALTORS Legal Fund is maintained by the association through the oversight of the Legal Review Committee. 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. try to overcome objections raised. return it to the offeror. It saves time and buyers dont have to deal with owners directly. (doubling "A" time activities should double your income.). real property taxes. all of these. before the buyer executes an offer. $3,411.00. forgery in the chain of title. Ethics and good business are not compatible. Telephone responses from a For Sale sign indicate what about the prospective buyer? ad within a price range or area creates prospects for other homes in the price range or area. applies to 1 to 4 residential units. a.) all of these. Which of the following statements regarding ethics is TRUE? (Page 621). What is the best test to evaluate if an act is ethical? The best heading for a classified ad on a home would be. The legal fund is not a substitute for errors-and-omissions insurance. all of these. conceding before answering. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to neither motivate salespeople nor retain top producers. In real estate, the term farming refers to. showing owners you are working on their behalf. (Page 486), In making an appointment to present an offer, the agent should. (page 63), The Seller Financing Disclosure Statement provided to both buyer and seller provides. The application is submitted to the applicants local association for review. an unknown spousal interest. special assessments. neither it is best to advertise properties in areas or price ranges where other properties are also available nor prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised. 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. A broker may discriminate against which type of tenant? Advertising one property brings in buyers for other properties. commercial property. deductibility of taxes. What kind of listing did Broker Baker have if Owner Adams has no commission obligation to Broker Baker? - Both A real estate agent (Page 580). county-owned housing projects. 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. Which of the following is NOT a legal notice? Although HUD has never published criteria, it's likely the IRS rules would prevail. Only part of the leasehold is transferred in a sublease. using one period of time to list and another period of time to sell in a never-ending cycle. (Page 397), When a caller wont give a name, the best approach would be to, hang up. retain top producers . The legal fund assisted the defendant in resolving the case favorably. A real estate agent who spends an hour with a customer taking a preliminary credit application and collecting certain credit documents (i.e., W-2s, pay stubs, bank statements) has performed a genuine service for the lender that is actual, necessary, and distinct from the agent's normal duties. nonbinding arbitration of disputes. If the price quoted is too high, you can be sure the caller will let the agent know. being over-eager to close. A broker may require salespeople to be members of the REALTORS association, as it indicates to the broker the sales agents' commitment to the real estate profession and to high ethical standards of practice. A broker never saw, talked to, or corresponded with a buyer, yet earned a commission. You can find out how things are done in your office by - studying your office procedure manual. In each of these cases, the board of directors determined that there was a significance to REALTORS as a class. locating prospective buyers. a percentage lease. For copies of the procedures or applications, contact the Legal Affairs Department. price. both applies to 1 to 4 residential units and, Residential Earthquake Hazards Report.Page 124, The proper order of the steps taken in agency disclosure is. Cost of sales is 45% of the gross commissions. If you are going to be buying a new car for real estate sales, you should consider. REALTOR membership is a criterion that a broker may voluntarily choose to require of independent contractors. ratio of net income to PITI. This appears permissible under RESPA guidelines as long as the fee is minimal and not tied to whether that click results in a loan. About a month after closing, the flood maps were revised and included the property in a flood hazard area. She has a signed liquidated damages clause. It has also been used to fund the filing of analyses and comments before governmental agencies. 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. 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.) Yes, as long as you follow the rules set out in the Real Estate Settlement Procedures Act (RESPA). welcoming the objections. Without all owners, it cant be accepted.Page 479. Some brokers charge a small fee every time someone clicks through to the lenders website. appearing confident. neither the exchange property must be identified within 45 days nor the exchange must be completed no more than 180 days after transfer of exchanged property. The caller may want a lower-priced property. universal exclusion. the commission was too high. 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. prior to qualifying the buyer. For example, litigants in one case involving antitrust issues asked the association to file briefs with the court. 30-day month. 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. subordination. Owner Adams has a listing in force with Broker Baker. the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants. Because buyers seldom offer the list price, the list price has no effect on time to sell. the offer itself. Where can we find information about what we should include in our privacy policy? 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. disclose, elect, confirm. both applies to 1 to 4 residential units and must be signed by buyer and seller. 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. For injuries. 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. Brokers have liability to their commissioned salespersons in respect to. (Once set, goals should never be changed. amount over the index the lender charges as interest. provide sufficient facts so the receivers can form valid conclusions. Helping Texas REALTORS understand their legal rights and duties under law 2. does none of these. What are the advantages of a good time-management program? Bait-and-switch advertising is a federal offense. (page 14-15), Using time-management to increase income, you should realize that. bare-bones classified ad on a property. the most desirable feature. First, there are no new changes to RESPA. 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. Which of the following statements regarding the use of goal-setting is FALSE? Flyer pointing out attractive features about a property. a counteroffer really rejects the offer. I will obtain three new listings each month. The Legal Fund is used for a number of expressed purposes: 1. 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. Brokers have liability to commission salespeople as to unemployment insurance. undue influence. present the firms offer first and, if rejected, then present the other offer(s). 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. occupants name from the address. neither federally related loans nor 1 to 4 residential units only. But the caller might not be able to afford the property. 360-day year. minimum wage requirements. 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. If the person receiving the commission is not an employee, then that person considers the commission to be revenue, and may pay taxes if there is a resulting profit. (Page 128), A selling agent must comply with agency disclosures to the buyer. 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. Noncomforming loans are Jumbo loans.Page 514. Index plus margin equal interest charged.Page 539, Loans that meet the underwriting standards of Fannie Mae or Freddie Mac are known as. If it is legal, it is ethical. 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. all of these. ), You can find out how things are done in your office by, d.) (studying your office procedure manual.). both paying a referral fee to anyone other than his or her own employees and accepting escrow instructions having blanks that are to be filled in after the instructions are signed.
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