. 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. neither paying a referral fee to anyone other than his or her own employees nor accepting escrow instructions having blanks that are to be filled in after the instructions are signed. (page 38), The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. Monitoring and participating in the actions of governmental agencies 6. Neither Primary financing refers to loans made directly by the lender to the borrower nor Secondary financing refers to the resale of existing loans. The Legal Review Committee, in turn, makes a recommendation to the Texas REALTORS Board of Directors either to approve or deny the application. people are attracted to fixer-upper ads because they sense a bargain. Primary financing refers to loans made directly by the lender to the borrower. neither use their own funds to make loans nor service loans they make. exclusive right to sell net listing. Brokers have liability to commission salespeople as to: The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to: All of the following are all examples of abstract goals EXCEPT: Which of the following statements regarding the use of goal-setting is FALSE. 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. Both Primary financing refers to loans made directly by the lender to the borrower and Secondary financing refers to the resale of existing loans. o unemployment insurance. The Civil Rights Act of 1968 prohibited discrimination in housing based on national original, race, religion, and color. Assuming a 6% commission, Salesperson Andrews share would be: $11,370.00. a family-oriented home. The Austin Federal District Court disregarded the savings and loans claims and upheld the Texas Constitution. Prohibited by Civil Rights Act of 1968 and the Holden Act.page 71. steering. The entire leasehold must be transferred. total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income. What kind of loan do they have? 79 of 100 Bill and Sue secured a mortgage loan that is tied to an index which fluctuates over the life of the loan. (Page 410-411), When arriving at a property for a showing, if another agent is showing the property, you should. 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. none of these. both a debit on the buyers closing statement and a credit on the sellers closing statement. restrictions on e-mail solicitations. ad within a price range or area creates prospects for other homes in the price range or area. appreciation. 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. insurance. a licensed property manager. 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. The caller may want a lower-priced property. (page 14-15), Using time-management to increase income, you should realize that. it is best not to mention any problems with the property. Brokers have liability to their commissioned salespersons in respect to. The association needs you to volunteer your voice and exper. a subsidized rent program for low-income tenants. Which of the following statements is TRUE? unemployment insurance . open-end loan. redlining. (Page 352). Reasonable compensation (generally a flat fee, not a percentage of the loan amount) may be justified. At the time of the refinance a survey incorrectly stated that the property did not lie in a flood hazard area. information about yourself. Yes, as long as you follow the rules set out in the Real Estate Settlement Procedures Act (RESPA). 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. Although HUD has never published criteria, it's likely the IRS rules would prevail. recommend to the owner to counter the offer. every residential listing. Which of the following statements regarding the use of goal-setting is FALSE? why the owners should deal with your firm. allow the prospective buyers to bring along a friend or confidant. minimum fee. (Page 411), When showing a property to a prospective buyer, the agent should. changes in the zoning. What type of listing did the broker have? Question 4 1 / 1 pts The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. The opposite of most advertising. 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). If a prospective buyer intends to occupy a single-family home as a residence, which of the following is TRUE regarding liquidated damages resulting from buyer default? However, only bona fide employees are covered by this exemption. prior to showing property. Brokers have liability to commission salespeople as to workers compensation. property taxes to be increased up to 2% each year. One who has AIDS. misrepresentation. 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. You will not post any defamatory, discriminatory, libelous, threatening, vulgar, sexually explicit, abusive, profane, rude, or obscene content (including comments); b. Which of the following statements regarding display advertising is TRUE? Turn perceived negative into a positive. Brokers have liability to commission salespeople as to unemployment insurance. none of these. One of the requirements for a real estate salesperson to be regarded as an independent contractor by I will become a better salesperson. 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. All of these. benefits of listing. The seller entitled to it and the buyer pays. net lease. The caller can afford the home and area or they would not have called. three months rent. 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. The application is submitted to the applicants local association for review. A broker who sponsors salespeople is subject to this rule regardless of how long the broker sponsors the salespeople. Case 1: A REALTOR was sued by a buyer who alleged the agent failed to properly advise him that the property lay near an environmentally contaminated site. a subsidized rent program for low-income tenants. Brokers have liability to commission salespeople as to - workers compensation. 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. It saves time and buyers dont have to deal with owners directly. 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. As an indication of value, which of the following would BEST indicate the market value of a home? Such as an equity line of credit.Page 531, A rescission right until midnight of the 3rd day after signing is provided for by. The original lessee is secondarily liable, and the person in possession is primarily liable under the original lease. keep in mind their first duty is to the owners, not to themselves or their firm. If the price quoted is too high, you can be sure the caller will let the agent know. use technical terms wherever possible. portfolio loans. institutional loans. using one period of time to list and another period of time to sell in a never-ending cycle. (Page 480-481). It should not matter. The Internal Revenue Service sets strict standards for employment. a commercial building. all of these. Since it indicates that you fail to sell 50 percent of your listings.Page 253, Serious buyers contact real estate agents because. 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. Owners are most interested in the bottom line.Page 490, When an offer is received, the owner should be made aware that. cashiers checks. Agents sell while owners seldom sell themselves.Page 239. does none of these. 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. (doubling "A" time activities should double your income.). None of these. Which of the following statements regarding the time it takes for a property to sell is TRUE? Direct relationship between list price and time to sell.Page 224-225, 228, Benefits that an owner receives by listing with an agent include. ask, interact, demonstrate, approve. Holden Act. Law provides that agents are not liable for failure to disclose any deaths on the property that occurred more than three years ago. percentage lease. properties that set the neighborhood value. Liquidated damages are limited by law.Page 465. comfort and convenience. Since RESPA exempts payments by an employer to its employees, several programs offer to make the real estate agent a part-time employee of the lender. Plus credit information, cash out sellers, warnings, etc.page 144-149, Compliance with environmental hazards disclosure requires. 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. visitations. 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. Brokers have liability to their commissioned salespersons in respect to: a.) uniformly to all real estate transactions. neither 39 years for the property life nor the straight-line method. you will work just as hard as the large firm. In another case, litigants in a city-zoning dispute asked the Texas REALTORS to file briefs with the court. B. motivate salespeople . a certified property manager. A fee based on a transaction between the lender and a consumer is prohibited by RESPA. a full-sized, four-door car for easy entrance and exit. Avoid wasting time and prioritize time. Net Exclusive right-to-sell Exclusive agency Open, The broker did not give the principal a copy of the listing. county-owned housing projects. 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). it is better to estimate costs a little on the high side than the low side. The damages cannot exceed 3% of the purchase price. doubling A time activities should double your income. interest. settlement sheet issued on closing a transaction. both a debit on the buyers closing statement and a credit on the sellers closing statement. A brokerage firm has operating expenses of $254,000. conceding before answering. 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. The property was most likely advertised as. both federally related loans and 1 to 4 residential units only. 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. health. (Page 128), A selling agent must comply with agency disclosures to the buyer. owners name from the tax number. 3. 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. If it is unethical, it is illegal. steering. an estate from period to period. advertising by season. The sublessee is a tenant of the sublessor. What is legal but unethical now might be illegal tomorrow. I will obtain three new listings each month. staying with a prospect until you have a contract. decreased by listing above the market value. greater responsibility. The legal fund is not a substitute for errors-and-omissions insurance. 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. Brokers have liability to commission salespeople as to Correct o minimum wage requirements. You will not use our blog posts or posted content to do anything unlawful, misleading, malicious, or discriminatory; and. real property taxes. all of these. the worse you make the property appear, the greater your response is likely to be. Usually 36 percent for qualifying. Nonresidential real estate purchased since 1987 must be depreciated using: both 39 years for the property life and the straight-line method. 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. (Page 427), When dealing with a prospect who is silent, the BEST approach would be to. I will strive to improve my sales techniques. (a full-sized, four-door, car for easy entrance and exit. Which of the following statements regarding the use of goal-setting is FALSE? 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. Which of the following statements regarding the use of goal-setting is FALSE? More than two typefaces in an ad will likely have a negative effect on the ad. Owner Adams sold the house without the aid of Broker Baker. What about programs that offer to pay a real estate agent for names of potential borrowers? the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants. Increased income After careful review, the board of directors chose not to file the requested briefs. salesperson is not supervised by the broker. elect, confirm, disclose. It depends. blockbusting. type of property. salesperson is not responsible to a broker. One large picture is generally more effective than several smaller pictures. Helping Texas REALTORS understand their legal rights and duties under law 2. accepting escrow instructions having blanks that are to be filled in after the instructions are signed. Unruh Act. office buildings. Reg. they extend the listing for a longer period as price is related to time to sell. Which of the following is true of agency relationships? show unoccupied property first to give owner-occupants a chance to prepare for the showing. first month of the second listing extension. The burden of responsibility. 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. 4: The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to: (a) motivate salespeople. an estate at will. This letter, often referred to as the Retsinas Letter (after the former FHA Commissioner who issued the letter), was later incorporated by reference in a March 1, 1999, RESPA Statement of Policy Regarding Payments By Lenders To Mortgage Brokers, 64 Fed. Although showing owners you are working on their behalf is least important.page 327-331. procedure for showing a property to prospective buyers. An agents inspection under Easton v. Strassburger (as codified by state statutes) applies to. talk fast if the customer talks slowly. Are there any risks I should be aware of before agreeing to this? they adjust the price to the current market. both is satisfied with the general appearance of the home and is satisfied with the area. The Real Estate Commissioners suggestions for professional conduct include that the agent. An agent is required to disclose to a buyer that: the property has earthquake weakness if it was built before 1960. there was a death by murder or suicide on the property more than 3 years ago. The commission may be based on a flat fee arrangement, or (more commonly) as a percentage of the revenue generated. The case proceeded to a jury which found for the defendant REALTOR. Under these guidelines, agents and brokers may receive fees for performing loan origination work on a lender's behalf, such as taking a loan application, counseling borrowers, ordering credit reports and appraisals, and completing loan documents used to process the loan. ), The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. address from the occupants name. 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. 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. These are suggestions not necessarily legal duties.page 66-67. Three years after the purchase, the property flooded and the buyers then learned that the property had previously flooded. - Both A real estate agent combination of percentage of the gross and minimum fee. federally related loans. Ethics tends to precede the law. a particular subdivision. do all the talking yourself. any of these. can sell a mobile home in a rental park space and A real estate agent can sell a mobile home with the 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. all parties the agent has dealings with. 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. a gross lease. rights of parties in possession. One who has children. the commission was too high. Only part of the leasehold is transferred in a sublease. sales taxes. They like it and hope they can afford it.Page 383, When you receive For Sale sign inquiries you can assume that the caller. Ultimately, the board of directors must make a determination if the use of the Legal Fund satisfies the purposes and intent of the fund. By interacting with any of our blog posts, you agree to comply with the following terms and conditions: Texas REALTORS, in its sole discretion, reserves the right to remove any content you have uploaded, posted, or submitted onto any of our blog posts if we believe that it violates these terms or conditions. Liquidated damages cannot result from buyer default. both buyer and seller must agree to amend the escrow instructions. apartments. Attorneys Savings associations All of these Banks, As well as brokers, under specified circumstances.Page 577. provides extended coverage for lenders. love of family. Note, however, that real estate agents may not take loan applications in connection with FHA-insured loans. Owner Adams has a listing in force with Broker Baker. 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. Independent Contractor Agreement for Sales Associate, Texas REALTORS is stronger when members work together. 50% of $11,370 = $5,685. Need adequate number of comparable sales.Page 222-223, The likelihood of a sale within 90 days is. H0:80Ha:<80. And get buyer reactions which might alter showings. What are the advantages of a good time-management program? The Recovery Fund is funded by a $10 fee paid with every brokers or salesmans original license application. (Page 630), The dates November 1, December 10, February 1, and April 10 relate to. Some programs offer to make real estate agents part-time employees of the lender. To catch the eye of buyers who desire that feature.Page 352. Which of the following statements BEST describes a sublease? particular ethnic group. a two-door model to control the passengers. primarily for 1 to 4 residential units. Unruh Act. do all of these. neither you must mention this to a prospective buyer nor failure to mention the presence of the group would make you liable for any damages the buyer suffered. both motivate salespeople and retain top producers. the buyer can amend the escrow instructions. A broker never saw, talked to, or corresponded with a buyer, yet earned a commission. The firm's approximate desk cost is 19500.0 A licensed sales associate has employed an unlicensed personal assistant. neither you must mention this to a prospective buyer nor failure to mention the presence of the group would make you liable for any damages the buyer suffered. Through the Legal Fund, the Texas REALTORS was able to monitor and participate in the action. Yes. information about the buyers. ), Using time-management to increase income, you should realize that, b.) an open listing. 1031 exchange. appearing confident. open listing. avoid cooking with foods having strong and lasting odors. In each of these cases, the board of directors determined that there was a significance to REALTORS as a class. claims that a correct survey would have revealed. Prospecting from legal notices can be effective. occupants name from the address. all of these. I will improve my communication skills. It is also acceptable to classify it as part of the expenses of the sales department. get a higher gross price. Others claim that their programs have been blessed by HUD. I recently got my brokers license, but I dont sponsor any agents. condominium. When loan puts a lien on borrowers residence.Page 560. paying a referral fee to anyone other than his or her own employees. both A and. an exclusive listing without a termination date. Either Open or Exclusive agency Exclusive agency Exclusive right-to-sell Open, A commission paid only if agent makes sale.Page 264-272. 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. Which promotion would have the lowest cost to the broker? a warning as to balloon payments. amount over the index the lender charges as interest. sell the item, not the benefits. increased by a list price below that indicated by the comparative market analysis. (Page 511-512), A loan in which the borrower buys under a land contract would be a. CalVet loan. 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). Rumford Act. a recapture clause. Inclusion of white space serves to emphasize a message. Buyers are attracted to bargains, not overpriced property. Usually 28 percent for qualifying. the average time from listing to sale for your firm is 42 days less than the average sale in your MLS. all of these. A mortgage company sponsoring an educational event to promote its services can do so as long as the cost associated with the event doesnt cover any of the agents other expenses they would otherwise have to pay, such as the cost of the CE credit. you should concentrate more on possibilities than probabilities. Brokers have liability to commission salespeople as to workers compensation. A broker may discriminate against which type of tenant? exclusive right to represent listing. the Real Estate Settlement Procedures Act. Which of the following statements regarding mobile home sales is TRUE? neither agents have inventory nor they want to quickly locate property that meets their needs. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to a. motivate salespeople. She is, California Real Estate Law. industrial parks. DVA loan. unrecorded liens. risk. maximum that can be charged for the loan. 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. 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. 60% of $5,685 = $3,411.page 317, Advantages of holding open houses include. list in designated areas. locating prospective buyers. 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. One risk you face is that the lines of activities, duties, and responsibilities between the two positions can become blurred, especially to a buyer. operational advertising. c. minimum wage requirements. 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. owners who get less than they expected to receive from a sale are likely to be unhappy with you. If he were working exclusively for the builder, he would be exempt from the act and you would not be responsible for his activities. Primary financing is first trust deeds and secondary financing refers to junior liens. prior to qualifying the buyer. a fixer-upper. If an employee is receiving a commission, then the company withholds income taxes on the amount of the commission paid to the employee. How much of their gain would be taxable? subordination. particular subdivision. prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised. all of these. the firms logo. neither is satisfied with the general appearance of the home nor is satisfied with the area. federal income taxes. gap loan. a.) In fact, the Legal Review Committee recommends that a number of applications be denied each year. checking the regulations of the Bureau of Real Estate. recommend to the owner to ignore it. The Texas REALTORS Legal Fund is maintained by the association through the oversight of the Legal Review Committee. promotion and advertising paid by the agent. Principal residence does not qualify for a tax deferred exchange.Page 628. none of these. First-time visits to new listings by groups of agents are commonly known as. Which of the following statements regarding mobile home sales is TRUE? motivate salespeople and retain top producers. lack of liquidity. a defeasance clause. introduce yourself and your buyers to the other agent and go ahead with your showing. I know that Texas Real Estate Commission rules require a broker to maintain written policies and procedures for the brokers sponsored salespersons. Thus, the reversing entry is: On the 15th of the month, ABC pays Mr. Smith his commission and records this entry. to disclosures to principals only. He says to them, "Would you prefer to take possession on September 1 or October 1?"