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21 Cards in this Set

  • Front
  • Back
Blind Ad:
An illegal ad that does not identify the brokerage firm, leading readers to believe that the advertised property is for sale by a private party.
Cash Basis:
Recording income and expenses as the funds are received or disbursed. In the absence of a written agreement to the contrary, the cash basis of accounting is used when maintaining all required escrow or trust accounts and records.
Mixing money belonging to others with personal or business funds. Illegal commingling includes failing to maintain such money in identified escrow accounts.
General Agency:
Created when an agent is given broad ranging power to represent a principal in a particular business or activity. The general agent may bind the principal to any contract within the scope of the agency agreement. A property manager is usually a general agent.
Interpleader Action:
When a civil action is filed to determine the disposition of earnest money , a broker may seek a court authorization , called an Interpleader action , to deposit the funds with the court.
Limited Agent:
Also called a Single Agent, a broker hired to perform specified duties and obligations.
Funds from property management must be
put into escrow within 5 days
A broker associate managing any type of property must
use the employing broker's escrow account
A broker may offer only the relationships permitted in the
written office policy
Prior to representation, the licensee is required
to obtain a signed agency relationship disclosure from the principal(s). The disclosure must be made at the time that specific assistance is given to the buyer, seller, landlord or tenant.
Specific assistance occurs
when the licensee asks for or accepts confidential information concerning the principal's real estate needs, motivations, or financial qualifications.
Failure to discuss brokerage relationships before the entering into a transaction is
a violation but does not affect the validity of a contract or of the transferred title.
A single agent
is a limited agent who must perform the terms of the written agreement, exercise reasonable skill and care, and promote the interests of the principal with utmost good faith, loyalty, and fidelity.
The duties of a single agent are
to the principal who hires the agent not to a third party. The seller's agent owes no loyalty to the buyer except to disclose adverse material facts. Likewise, the buyer's agent owes no duty or obligation to the seller.
A transaction broker is not
an advocate for either party to a transaction though he may perform any written agreement made with a party to the transaction.
When changing the type of broker agency (such as to transaction broker), the broker must
inform the principal in writing before showing a property or conducting business.
The duty of the employing broker to supervise includes
employed brokers, secretaries, bookkeepers, and personal assistants of licensed employees.
In the absence of a specific written agreement to the contrary, commissions, fees and other charges collected by a broker for performing any service on behalf of another are considered "earned" only after
all contracted services have been performed and there is no remaining right of recall by others for such money.
The selling broker must
deliver the contract and the earnest money to the listing broker who deposits the earnest money in the broker's escrow or trustee account in a recognized depository not later than the third business day following the day on which the broker receives notice of acceptance of such contract.
Promissory notes or things of value should be delivered by
the selling broker to the listing broker with the contract. Any check or note shall be payable to, or assigned to, the listing broker.
A broker may maintain
any number of separate accounts from zero to unlimited for money belonging to others and if the broker is not in possession of money belonging to others, there is no obligation to maintain a separate account.