MacIntosh Real Estate School Colorado Course - Chapter 16

Transcription

1 Chapter 16 - SHORT-ANSWER QUESTION ANSWERS 1. owns, land, buildings, licensing. 2. corporate officers, regularly salaried. 3. No. 4.a. The salary must be an actual stated amount; b. The salary must be regularly paid (weekly, monthly, etc.); c. The salary must be at least federal minimum wage; d. The corporation must deduct commonly deductible expenses such as FICA and withholding taxes. 5. No. Payments of a commission, if it is in addition to the regular salary, will not in itself invalidate the exemption. 6. referral, name, settlement. 7. compensation, leads. 8. lender, title. 9. a) attorney b) title c) lender d) salary e) cooperative f) promotional, educational g) employees 10. administrative, commission, single. 11. promotion. 12. settlement, advertising. 13.a. Prevent detriment to the owner from interference with existing listing contracts. b. Protect the owner from claims for two commissions. 14.a. Negotiate the terms of a future listing b. Take a listing effective on the expiration of the current listing. first. 83 Copyright All Rights Reserved 1 Colorado Contracts & Regs (48 credit hrs)

2 15. Yes. 16. does not 17. deposits, interest, seller, forfeiture, purchaser 18. mobile, security, compensation, trust account 19. notice, written, owner. 20. notice a. civil liability b. censure, suspension, revocation of broker's license. 21. both parties, disciplinary action, dispute, appropriate 22. release 23. Earnest Money Release 24. hold, interpleader, commission, notice, appearance, restrained (enjoined). 25. may not, legal documents, specify, costs, written. 26.a. When licensees are preparing legal documents for their clients, they are responsible for the costs; b. Other costs associated with closings can be paid by the licensee or any other party; c. With the consent of all parties, the broker may close his or her own transaction and make additional charges for the closing services, except no charge is allowed for preparation of legal documents; d. If an attorney for one of the parties prepares the legal documents, the licensee is not responsible for the cost; e. The broker must still provide accurate closing statements. 27. listing. 28. assume. 29. deeds, notes, trust deeds, mortgages. 30. listing contract, seller s. 31. public, title, applications, disclosures, affirmations. 32. does not, disciplinary. 33. employing broker. 34. Yes. (This is NOT referring to a fee-splitting arrangement, or sharing your commission with an unlicensed person. It is talking about having the title company 84 Copyright All Rights Reserved 2 Colorado Contracts & Regs (48 credit hrs)

3 issue the check directly to another person/company, instead of having it go from the title company to the licensee, who then pays it over to that other person or company. An example might be that the licensee owes some money for medical bills. In order to ensure that the licensee doesn t go and spend his/her commission before turning around and paying the hospital, s/he may simply sign a formal assignment so the payment goes directly to the hospital.) 35. forbids, consideration, "referral fees", "finders fees". 36. principal. 37. commission, unlicensed, reduction, do not, unlicensed. 38. rebating, purchaser, inducement. 39. Assignments, informed, Listing, consent 40. entitlement, others, closing 41. unlawful, Employing, assign, rights 42. a. "The provisions of Section 13(b) of this listing contract shall apply only in the event a sale is made to.."; b. "The termination date shall not be extended by Section 13(b)(3) of this listing contract"; c. "In the event a sale is made by the owner or their agent to any other party than the above names, this listing contract is void." 43. affixed, pre-arranged. 44. agency. 45. conjunction, executed, process, employing broker. 46. contract of sale, directly. 47. Disclosure. 48. disclosure, buyer and seller. 49. Commission, no, unconnected. 50. Megan s, identified, register, public 51. Sentenced as a sexually violent predator; or Convicted of a sexual offense involving children. 52. motivations, Designated 53. E-32, E policies, locked 55. supervising, attorney 85 Copyright All Rights Reserved 3 Colorado Contracts & Regs (48 credit hrs)

4 56. employing 57.a. Relieve the employing broker of any obligation to supervise the employed licensee. b. Relieve the employed licensee from civil liability for his or her activities by interposing the corporate form. 58. lease, hotel. 59. possession, broker or salesperson. 60. short term, escrow, account. 61. assistants, negotiating the sale, disclose. 62. a. Complete forms prepared for, and as directed by a broker. But - unlicensed assistants cannot independently draft legal documents such as listing or sales contracts, and they cannot offer opinions, advice or interpretations of these documents. b. Distribute preprinted, objective information prepared by the broker about a property listed for sale. c. Perform clerical duties, including gathering information for a listing. d. If authorized by the seller, provide access to property, conduct showings or open houses. e. Deliver paperwork to other brokers, buyers or sellers. f. Deliver paperwork that requires signatures in regard to financing documents that are prepared by lending institutions. g. Prepare market analyses on behalf of the broker, if the analyses are approved and submitted by the broker to the client with a disclosure that the market analyses were prepared by the unlicensed assistant. The broker must ensure that market analyses comply with Commission Rule E-42. h. Collect and receipt for earnest money deposits, security deposits or rents. i. Schedule property repairs on behalf of the broker, if there is an existing agreement that authorizes the broker to make repairs to the property. 63. supervision, purview. 64. access, Listing, safeguard 65.a. When a licensee enters into a contract to purchase a property concurrent with the listing of such property. b. When a licensee enters into a contract to purchase a property as an inducement or to facilitate the property owner's purchase of another property, the purchase or sale of which will generate a commission or fee to the licensee. c. When a licensee 86 Copyright All Rights Reserved 4 Colorado Contracts & Regs (48 credit hrs)

5 enters into a contract to purchase a property from an owner but continues to market that property on behalf of the owner under an existing listing contract. 66. estimate, value, appraisal, financing. 67. No, because the broker has no legal interest in the real estate. 68. real estate brokers, legal documents. 69. advice, legal. 70.a. Did the preparation of documents such as receipt and option contracts, deeds, mortgages, etc., by completing standard and approved printed forms, coupled with an explanation or advice of the legal effect constitute the practice of law?. b. Should real estate brokers be restrained from doing the above?. 71.a. Yes. b. No. 72.a. The broker's office must be connected with the transaction as a broker. b. They must not charge extra for the preparation of these documents. c. The broker must use standard and approved forms. 73.a. Always recommend to the purchaser that the title be examined. b. Inform the parties of their right to have the papers drawn up by an attorney of their choosing. c. Advise the parties of their right to be represented by an attorney of their choosing. d. If questions arise or legal ramifications arise that are beyond the knowledge of the broker, an attorney's advice should be sought. 74. No. 75. The formulation of Rule F by the Real Estate Commission in a. listing contracts b. preliminary sales contracts c. exchange contracts d. settlement sheets e. extension agreements f. counterproposals. 77.a. business opportunity listing or sales contracts b. management agreements 87 Copyright All Rights Reserved 5 Colorado Contracts & Regs (48 credit hrs)

6 c. leases d. deeds, etc. 78. The same as in the Conway Bogue case: that the actions complained of, did constitute the practice of law. 79. No. The Supreme Court restrained the Title Companies from preparing these documents except in the one situation previously mentioned. 80.a. Could the Title Company prepare these documents in connection with a loan made with funds belonging to the corporation. The decision was 'Yes.' b. Could the Title Company operate an escrow service for others preparing the type of documents in question for a fee? The decision was 'No,' and the companies were restrained from doing the same. c. The third question was whether the Title Companies could conduct their "closing services" if they also sold the title policy. The Court held that these services were not necessary to the sale of the title policy and they were restrained from doing so. 81. Yes, under certain circumstances. 82. real estate broker. 83. real estate broker. 84. crier. 85. No. 86. No. 87. control, broker, crier, broker, license law 88. real estate broker, minority, New York 89. business opportunity, dominant. 90. majority, New Jersey. 91. ownership, business, interest, leasehold. 92. separable, compensation. 93. investigate, disciplinary, dishonest, defect, purchaser, fraudulent, Seibel. 94. leasing, management, Policy, Employing, Security. 95. Multiple, accessibility, lock, appointment. 96. concessions, personal property, value. 97. costs, documents, sold, attorneys, appraisers 98. research, adjustments. 88 Copyright All Rights Reserved 6 Colorado Contracts & Regs (48 credit hrs)

7 99. fiduciary, advocate, neutral, own, family, friend, repeat Right-to-Buy, Transaction Broker, Agency 101. in hand, Certified, Cashiers 102. loan, title, insurance, closing, instructions, title, earnest, third, Receipt 103. material fact, brokerage relationships, terms, clouds, status, funds, financing, interest, disclosures 104. (a) listing, (a) care, (b) faithful, II. III. offers, material, V. legal, VI. VII. Accounting, liable Duties, houses, writing, agency Commissions 105. terminate, survey, lease 106. settlement services, RESPA, writing 107. options, purchase, installment, title, competency, law 108. Advertise, office, experienced, unlicensed, commission 109. unworthiness, incompetency, decline, assistance 110. a. Performance of clerical duties, including gathering information about competing projects. b. Interview prospective tenants. Obtain information necessary to qualify perspective tenants for a lease: Obtaining and verifying information regarding employment history, credit information, references and personal information as necessary. c. Provide access to a property, distribute preprinted, objective information prepared by a broker As long as no negotiating, offering or contracting is involved. 89 Copyright All Rights Reserved 7 Colorado Contracts & Regs (48 credit hrs)

8 d. Distribute preprinted information at an on-site leasing office that is prepared by an owner or broker, as long as no negotiating, offering or contracting is involved. e. Quote the rental price. f. Filling in the lease with the tenant: Act as a scrivener to the owner or the broker for purposes of completing predetermined lease terms on preprinted forms as negotiated by the owner or broker. g. Deliver paperwork to other brokers. h. Deliver paperwork to landlords and tenants, if such paperwork has already been reviewed by the owner, or a broker or has been prepared in accordance with the supervising broker s instructions. i. Collect and deposit rents and security deposits in accordance with the owner s lease agreement or the brokerage firm s written office policy. j. Schedule property maintenance in accordance with the brokerage firm s management agreement or the owner s lease agreement. If the owner has executed a Power of Attorney form or a written delegation of authority that authorizes the unlicensed, on-site manager to sign and execute leases on behalf of the owner, the unlicensed, on-site manager may execute those without possessing a real estate broker s license. (Under review of Supervising Brokers.) 90 Copyright All Rights Reserved 8 Colorado Contracts & Regs (48 credit hrs)

9 Chapter 16 QUIZ ANSWERS 1. d 2. a 3. c 4. c 5. a 6. b 7. d 8. d 9. d 10. a 11. b 12. d 13. d 14. a 15. b 16. d 17. a 18. d 19. d 20. c 21. d 22. b 91 Copyright All Rights Reserved 9 Colorado Contracts & Regs (48 credit hrs)

10 92 Copyright All Rights Reserved 10 Colorado Contracts & Regs (48 credit hrs)