Rules Governing Licensees

Front 1

Blind Ad:

Back 1

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.

Front 2

Cash Basis:

Back 2

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.

Front 3

Commingling:

Back 3

Mixing money belonging to others with personal or business funds. Illegal commingling includes failing to maintain such money in identified escrow accounts.

Front 4

General Agency:

Back 4

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.

Front 5

Interpleader Action:

Back 5

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.

Front 6

Limited Agent:

Back 6

Also called a Single Agent, a broker hired to perform specified duties and obligations.

Front 7

Funds from property management must be

Back 7

put into escrow within 5 days

Front 8

A broker associate managing any type of property must

Back 8

use the employing broker's escrow account

Front 9

A broker may offer only the relationships permitted in the

Back 9

written office policy

Front 10

Prior to representation, the licensee is required

Back 10

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.

Front 11

Specific assistance occurs

Back 11

when the licensee asks for or accepts confidential information concerning the principal's real estate needs, motivations, or financial qualifications.

Front 12

Failure to discuss brokerage relationships before the entering into a transaction is

Back 12

a violation but does not affect the validity of a contract or of the transferred title.

Front 13

A single agent

Back 13

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.

Front 14

The duties of a single agent are

Back 14

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.

Front 15

A transaction broker is not

Back 15

an advocate for either party to a transaction though he may perform any written agreement made with a party to the transaction.

Front 16

When changing the type of broker agency (such as to transaction broker), the broker must

Back 16

inform the principal in writing before showing a property or conducting business.

Front 17

The duty of the employing broker to supervise includes

Back 17

employed brokers, secretaries, bookkeepers, and personal assistants of licensed employees.

Front 18

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

Back 18

all contracted services have been performed and there is no remaining right of recall by others for such money.

Front 19

The selling broker must

Back 19

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.

Front 20

Promissory notes or things of value should be delivered by

Back 20

the selling broker to the listing broker with the contract. Any check or note shall be payable to, or assigned to, the listing broker.

Front 21

A broker may maintain

Back 21

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.