Although showing owners you are working on their behalf is least important.page 327-331. procedure for showing a property to prospective buyers. Others claim that their programs have been blessed by HUD. blockbusting. bare-bones classified ad on a property. A broker who sponsors salespeople is subject to this rule regardless of how long the broker sponsors the salespeople. Types of property requiring property management include. asking every prospect to recommend another prospect. reading the information on the back of your real estate license. So if reasonable, it should be accepted. a licensed property manager. A release from time pressures confirm, elect, disclose. & H_0: \mu \geq 80 \\ all of these. I will obtain three new listings each month. B. motivate salespeople . Only required for exclusive listings.Page 264, A listing where the licensee is subject to disciplinary action for demanding a fee would be. Salesperson Andrews listing was sold by another office for $189,500. a warning as to balloon payments. unrecorded liens. The property was most likely advertised as. 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. 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? The association needs you to volunteer your voice and exper. a family-oriented home. (Page 294), In describing sales successes, it would NOT be advantageous to point out that. Harry has some buyers that he believes are ready to make an offer. Turn perceived negative into a positive. 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. both federally related loans and 1 to 4 residential units only. the worse you make the property appear, the greater your response is likely to be. Owners want to know what is happening.page 300. Incentive to do more and to stay.page 20 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. One who has AIDS. The mortgage company cant sponsor the luncheon on the condition that it will receive referrals, either. Because buyers seldom offer the list price, the list price has no effect on time to sell. 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. report violations of the real estate law to the Bureau of Real Estate. both blockbusting and steering. upon delivery of the sellers acceptance. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. (Page 427), When dealing with a prospect who is silent, the BEST approach would be to. Under the terms of his commission agreement, he receives a 5% commission on the revenue generated by the transaction, and will be paid on the 15th day of the following month. Some brokers charge a small fee every time someone clicks through to the lenders website. independent contractor for tax purposes. What are the advantages of a good time-management program? If it is unethical, it is illegal. all of these. welcoming the objections. county-owned housing projects. Usually 28 percent for qualifying. subordination. before the buyer executes an offer. A court or TREC hearing officer might reach the same conclusion and assess liability or responsibility on the broker. prior to qualifying the buyer. Flyer pointing out attractive features about a property. apartments. The broker did not violate law or regulations because the listing was an. rights of parties in possession. What kind of closing technique is Harry using? conceding before answering. (Page 351-352). ratio of net income to PITI. A broker may discriminate against which type of tenant? the factor that makes a neighborhood cohesive. a full-sized, four-door car for easy entrance and exit. Disclose as soon as possible, confirm with offer.page 119-120. an estate. chemical tests of the soil for all dangerous contaminants. Plus credit information, cash out sellers, warnings, etc.page 144-149, Compliance with environmental hazards disclosure requires. What was the reason for creating the inferior courts? 360-day year. a credit on the buyers closing statement and a debit on the sellers statement. H0:80Ha:<80\begin{aligned} Note, however, that real estate agents may not take loan applications in connection with FHA-insured loans. open listing. $2,842.50. Properties listed above market value tend to sell faster than properties listed at prices closer to market value. Residential real estate uses 27.5 years. none of these. 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.). 79 of 100 Bill and Sue secured a mortgage loan that is tied to an index which fluctuates over the life of the loan. Both Primary financing refers to loans made directly by the lender to the borrower and Secondary financing refers to the resale of existing loans. a defeasance clause. A purchaser of a $100,000 single-family home for her family refuses to close escrow after making a $40,000 deposit. 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. (Page 561), The margin on an adjustable rate loan refers to the. Buyers are attracted to bargains, not overpriced property. use abbreviations such as Agt. or Bro. instead of the name of the firm. 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. pre-showings. get a higher gross price. 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. More than two typefaces in an ad will likely have a negative effect on the ad. Plus they must be licensed and paid only for success. No. Increased income using one period of time to list and another period of time to sell in a never-ending cycle. The damages cannot be recovered by the seller. doubling A time activities should double your income. Mentioning it could be steering. maximum that can be charged for the loan. Open listing Exclusive agency listing Any of these Exclusive authorization to acquire real property listing, If any agent sells the listing, the agent is paid.Page 274, Written notice that the amount of commission is negotiable is required in. Thus, the reversing entry is: On the 15th of the month, ABC pays Mr. Smith his commission and records this entry. firsts. retain top producers . 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. None of these. Your answer is correct. it is better to estimate costs a little on the high side than the low side. meeting objections half-way. Defraying legal expenses for cases in which the association intervenes or files briefs as a friend of the court 5. both increased by a list price below that indicated by the comparative market analysis and decreased by listing above the market value. One risk you face is that the lines of activities, duties, and responsibilities between the two positions can become blurred, especially to a buyer. B. . (Page 228,230). The Recovery Fund is funded by a $10 fee paid with every brokers or salesmans original license application. conversion. Case 3: A REALTOR was sued by a buyer alleging that the agent did not disclose that the property lay in a flood-prone area or that the property had previously flooded. A lease that needs no notice for termination, would be. The caller may want a lower-priced property. If an employee is receiving a commission, then the company withholds income taxes on the amount of the commission paid to the employee. What about programs that offer to pay a real estate agent for names of potential borrowers? being over-eager to close. 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. $570,000 $70,000 $650,000 None of these, They have a gain of $570,000 and a $500,000 exclusion.Page 634, A clause in a percentage lease whereby the landlord has a right to regain the premises if the tenant fails to achieve a stated gross would be. 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. a listing having a safety clause. changes in the zoning. These show that you understand the buyers concerns.Page 439-441. retain top producers. the Real Estate Settlement Procedures Act. 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? Owners presence inhibits buyers. 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. portfolio loans. Liquidated damages are limited by law.Page 465. comfort and convenience. One of the agents I sponsor wants to also work part time selling homes for a local home builder. price. eminent domain. single-family residence. You should tell someone about your goals. The caller may want a lower-priced property. For a property built before 1960, earthquake weakness must be disclosed. the average time from listing to sale for your firm is 42 days less than the average sale in your MLS. \end{aligned} once rejected, an offer cannot be accepted. you must mention this to a prospective buyer. A clear description of the copyrighted work infringed; A statement that you have a good faith belief that the use of the content identified in your DMCA notice is not authorized by the copyright owner, its agent or the law; Your contact information (such as your name, email address and telephone number); A certification, under penalty of perjury, that the DMCA notice is accurate, signed (either electronically or physically) by the copyright owner or the copyright owners legal representative. c. minimum wage requirements. The damages cannot exceed 3% of the purchase price. motivate salespeople and retain top producers. Or working an area for a type of property or buyer group.page 213, A reverse directory allows an agent to have the. (doubling "A" time activities should double your income.). have a hard and fast rule to never show more than three properties. The Fifth Circuit Court of Appeals reversed and held that the Texas Constitution had been superseded. commercial property. Proposition 90 Proposition 58 Proposition 13 Proposition 60, Must cost the same, or less, than the home sold.Page 616, Tax benefits of a principal residence include all of the following EXCEPT. that the seller post a bond to cover damages by hazards discovered at a later date. an FHA home-purchase plan for renters. An agents inspection under Easton v. Strassburger (as codified by state statutes) applies to. all of these. both applies to 1 to 4 residential units and must be signed by buyer and seller. address from the occupants name. a fixer-upper. a sports car to show you are a modern person. 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. (page 14-15), Using time-management to increase income, you should realize that. 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. property taxes to be increased up to 2% each year. You should check the do-not-call list before soliciting such listings to avoid violating the law. 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. advertise in designated areas. It should not matter. there is a licensed care facility that serves three people across the street from the property. Which of the following is NOT an institutional lender? In addition to the Civil Rights Act of 1968.page 77, The California Act that prohibits discrimination by all California businesses is the. I recently got my brokers license, but I dont sponsor any agents. assessed value of property acquired before 1978 to be reduced to the amount shown in the 1975 tax roll. all of these. Present all offers together fairly. The caller can afford the home and area or they would not have called. The sublessee is a tenant of the original lessee. every residential listing. He says to them, "Would you prefer to take possession on September 1 or October 1?" taxes. Attracts attention and is easy to read.Page 357. attention, interest, demand, action. 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. taxes based on a persons ability to pay. checks that have cleared. Which of the following statements BEST describes a sublease? recommend to the owner to counter the offer. I will become a better salesperson. (Page 388). However, only bona fide employees are covered by this exemption. Applicability of the legal principles discussed in this material may differ substantially in individual situations. ask, inform, demonstrate, approve. 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. 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. a certified property manager. Independent Contractor Agreement for Sales Associate, Texas REALTORS is stronger when members work together. The fees must be "reasonably related to the value of the services performed." One who has children. Neither Primary financing refers to loans made directly by the lender to the borrower nor Secondary financing refers to the resale of existing loans. c.) both a and b. d.) neither a nor b. ), Using time-management to increase income, you should realize that, b.) let the owners know which offers provide the agent with the greatest benefits. prospecting your farm area on a continuous basis. both is satisfied with the general appearance of the home and is satisfied with the area. disclosure of deferred interest. exclusive right to sell net listing. ask, interact, demonstrate, approve. to disclosures to principals only. It has also been used to fund the filing of analyses and comments before governmental agencies. health. Goals must reflect current desires.page 39. Law provides that agents are not liable for failure to disclose any deaths on the property that occurred more than three years ago. ad within a price range or area creates prospects for other homes in the price range or area. All are protected by 1988 Amendment.page 73, Advertising a home in an area occupied solely by members of a minority group only in newspapers directed toward that minority group would be regarded as. (Page 580). ratio of current rental costs to estimated housing costs. None of these. you will work just as hard as the large firm. as expensive a car as possible to impress others. The sellers MOST common objection to an offer is. both buyer and seller must agree to amend the escrow instructions. an exclusive listing without a termination date. prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised. Which of the following are exempt from licensing under the escrow law? Which of the following statements regarding the truth-in-lending law is TRUE? try to overcome objections raised. First, there are no new changes to RESPA. the price was too high. 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. The Internal Revenue Service sets strict standards for employment. because owners want to get as much as possible, you should underestimate costs so the net will be greater. cashiers checks. when property is shown, follow the agent closely and provide information to the prospective buyers. Rumford Act. 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. But the caller might not be able to afford the property. If Im a broker whos exempt from continuing education requirements, do I still have to take the Broker Responsibility course? Rumford Act. avoid seller disclosures. All of these. You can find out how things are done in your office by - studying your office procedure manual. paying a referral fee to anyone other than his or her own employees. nonbinding arbitration of disputes. insurance. This is a debit to the commission expense account and a credit to a commission liability account (which is usually classified as a short-term liability, except for cases where you expect to pay the commission in more than one year). The Texas REALTORS Legal Fund is maintained by the association through the oversight of the Legal Review Committee. the most desirable feature. the condition of the property. What are the advantages of a good time-management program? (Page 511-512), A loan in which the borrower buys under a land contract would be a. CalVet loan. (Page 128), A selling agent must comply with agency disclosures to the buyer. all of these. What are these new rules and have lenders received HUD approval for these programs? They like it and hope they can afford it.Page 383, When you receive For Sale sign inquiries you can assume that the caller. Brokers have liability to their commissioned salespersons in respect to: a.) Agents must advertise their names and license status. both A and. an estate from period to period. 3: Brokers have liability to commission salespeople as to: (a) unemployment insurance. 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. the IRS is that the - broker-salesperson contract states that the salesperson shall be treated as an (Page 277), By initialing the dispute resolution clause in the exclusive right-to-sell listing the seller and broker agree to. The burden of responsibility. This includes possible civil liability for negligent or other inappropriate activities. forgery in the chain of title. Persons who are not members of the REALTOR organization have asked TAR to file amicus briefs in cases in which no REALTOR is involved. Prohibited by Civil Rights Act of 1968 and the Holden Act.page 71. steering. 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. (page 20), You can find out how things are done in your office by. Is the legal fund ever used for purposes not directly related to REALTORS? For injuries. For example, litigants in one case involving antitrust issues asked the association to file briefs with the court. Is the legal fund the same as the recovery fund? You should consult an attorney regarding the risks involved and how to protect yourself from liability before agreeing to this situation. a resident manager. Helping Texas REALTORS understand their legal rights and duties under law 2. it is best to advertise properties in areas or price ranges where other properties are also available. visual inspections. An unhappy seller could mean a sale that does not close. a model home. (page 302), If a listing is overpriced, the agent should suggest to the owners that. For Sale By Owner Code violations Probate Evictions, The phrase centers of influence refers to. 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. REALTOR membership is a criterion that a broker may voluntarily choose to require of independent contractors. 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. neither blockbusting nor steering. all parties the agent has dealings with. 6% of $189,500 = $11,370. At the time of the refinance a survey incorrectly stated that the property did not lie in a flood hazard area. A fee based on a transaction between the lender and a consumer is prohibited by RESPA. Bait-and-switch advertising is a federal offense. occupants name from the address. 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. Ultimately, the board of directors must make a determination if the use of the Legal Fund satisfies the purposes and intent of the fund. The Texas REALTORS strongly encourages members to maintain E&O insurance. Advertising one property brings in buyers for other properties. redlining. (Page 584), A standard policy of title insurance protects the purchaser from all EXCEPT. 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 vacant lot. The opposite of most advertising. The seller entitled to it and the buyer pays. - Both A real estate agent Which of the following loans is MOST likely to have the highest initial interest rate? Lowercase letters are easier to read than capital letters. have a quicker sale. Brokers have liability to their commissioned salespersons in respect to. 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. neither 39 years for the property life nor the straight-line method. mentioning a potential objection before the customer does. the property has earthquake weakness if it was built before 1960. Reimbursing travel expenses of Texas REALTORS who participate in form-development task forces. listings with your firm have a 30% greater chance of being sold than the average for your local MLS. And the company must promote its services during the event to qualify for the Real Estate Settlement Procedures Act (RESPA) advertising exemption. both motivate salespeople and retain top producers. 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. all of these. a. 1 to 4 residential units. Since it indicates that you fail to sell 50 percent of your listings.Page 253, Serious buyers contact real estate agents because. participation loans. Most people read from the upper left to the lower right corner when looking at an ad. What kind of cases or actions has the Texas REALTORS Legal Fund been used for in the past? 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? The Civil Rights Act of 1968 prohibited discrimination in housing based on national original, race, religion, and color. ask leading questions. ethnic groups. (Page 486), In making an appointment to present an offer, the agent should. Brokers have liability to commission salespeople as to a. unemployment insurance. waive their rights to arbitrate. Either Open or Exclusive agency Exclusive agency Exclusive right-to-sell Open, A commission paid only if agent makes sale.Page 264-272. A married couple sells their principal residence of 30 years for $650,000. an estate at will. a recapture clause. The case was ultimately moot as a result of Congressional action initiated by Rep. Gonzales of San Antonio that amended the Home Owner Loan Act so that it was clear that Congress did not intend to supersede the Texas Constitution. Telephone responses from a For Sale sign indicate what about the prospective buyer? (Page 621). appearing confident. 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. Yes, as long as you follow the rules set out in the Real Estate Settlement Procedures Act (RESPA). flyer pointing out attractive features about a property. Primary financing refers to loans made directly by the lender to the borrower. neither is satisfied with the general appearance of the home nor is satisfied with the area. I will strive to improve my sales techniques. Commission is negotiable and not set by law. $5,685.00. workers compensation. Buyers resist pressure before they are ready.Page 447, Disadvantages of home-ownership include all of the following EXCEPT. Primary financing is first trust deeds and secondary financing refers to junior liens. Owner Adams sold the house without the aid of Broker Baker. you should concentrate more on possibilities than probabilities. Are there any additional restrictions or limitations for access to the legal fund? 15-year amortized loan 30-year loan due in 5 years Adjustable rate mortgage 30-year-term amortized loan, But the rate is guaranteed for 30 years.Page 533-536, Mortgage companies differ from mortgage loan brokers in that mortgage companies. The entire leasehold must be transferred. percentage of the gross. b. workers compensation. The legal fund is not a substitute for errors-and-omissions insurance. is merely an offer to insure. the down payment divided by the purchase price. direct mail solicitations. (Page 231). What kind of listing did Broker Baker have if Owner Adams has no commission obligation to Broker Baker? disclose, elect, confirm. conforming loans. broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes. restrictions on e-mail solicitations. influential people in the community. Which of the following is NOT a legal notice? 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. a blank space since it attracts attention. Conceal the fact that the advertiser is an agent, But any indication, like Agt., meets the requirement.Page 366.
brokers have liability to commission salespeople as to