Handling of Documents & Record Keeping

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

A broker can be sued for failing to disclose knowledge of an adverse fact for as long as three years following date of discovery of the adverse fact.

True!

A broker can be sued in Tennessee for breach of contract for as long as six years from the date of the breach.

True!

A broker is required to keep records of all consummated transactions for at least three years.

True!

In the case of a TREC audit, the broker may be in violation of license law as she must provide technology and hardware which ensures the accessibility of records in a readable format within 24 hours of request for the information.

True!

Overall responsibility of the firm's record keeping belongs to the principal/managing broker.

True!

The Commission can audit a broker's files and records at its discretion anytime without notice.

True!

The IRS may require brokers to produce income/expense records for as long as seven years.

True!

When transactions are consummated, affiliate brokers should turn over all records of the transaction to the broker, who then must keep them for a minimum of at least three years.

True!

Licensees who possess broker's licenses may also conduct closings.

True.

All documents in designated transactions should be accessible by the broker only. There shall be no imputation of knowledge or information among or between clients, the managing broker and any designated agent or agents in a designated agency situation.

True. But weird.

Agency Disclosure Document

Form that states whether an agent is representing the seller or the buyer, or both, in a transaction

Time share records must be kept by a broker for a minimum of at least:

4 years. All other records are kept minimum of 3 years.

Sales Contract

A contract for the sale of real estate, establishing the legal rights and obligations of both buyer and seller, both in regard to the property itself and to the real estate transaction.

Audit

A review of a broker's files and records at its discretion anytime without notice by the Commission

Listing Agreement

A written agency contract between seller and a real estate broker, stating the broker will be paid a commission for finding (or attempting to find) a buyer for the seller's real property

A broker wants to be thorough and in compliance with TREC requirements in retaining all proper documentation. In addition to keeping records of listings, contracts, closing documents, agency agreements, agency disclosure documents, property condition and disclosure documents she also asks her agents to provide offers (even those that do not become contracts), correspondence, notes, etc. The broker's actions are which of the following?

All of the documents outlined in the question are required under TREC's policy of record retention by the broker.

Brokers are required to keep records of all "consummated" transactions. TREC interprets "consummated" as meaning which of the following?

All transactions, whether or not they close or become contracts.

Licensees who possess broker's licenses may also conduct closings. Should a broker conduct a closing, it is the responsibility of the broker to ascertain that both buyer and seller have copies of which item?

If the broker conducts the closing, it is the responsibility of the broker to provide a Closing Document to both buyer and seller.

An affiliate broker completes a listing agreement on the hood of a tractor in the middle of a 20 acre field. The seller signs the agreement. The agent tells the seller that she will return with a copy for the seller within 30 minutes. The agent

License law states that signers of document receive a copy at the time of execution. As the agent could not provide it for 30 minutes, she is in violation

Listing Agent X has closed a transaction and has given her broker copies of the listing agreement, Confirmation of Agency form, and Property Condition Disclosure. Which of the following is true?

Missing items that should have been included in her documentation are: copies of the sales contract, closing document, correspondence, notes, and any other relevant information.

It is a violation of license law if a licensee fails to give a copy to all signatories of documents at the time of execution.

So even if your client only signs one side, they have to get a copy of it!

Affiliate brokers are encouraged to keep records of their consummated transactions, but brokers are responsible to keep records, not affiliate brokers.

So technically, we don't have to keep the record, they do.

You have to give ALL people signed docs at time of execution.

The agent violated license law by not giving the sellers a copy of the listing agreement at the time of execution.

What if TREC shows up for an audit?

The broker must make records for TREC's representative within 24 hours of their request for inspection. The records must be in an organized format providing ease in document identification.

An affiliate broker assisted a buying customer in the completion of an offer. The buyer, unrepresented, signed the offer and before leaving, the affiliate gave the buyer a copy of the signed offer. The affiliate broker's actions:

The licensee is in compliance with license law requirements as a copy of the signed document was immediately provided to the buyer

Retention of an improperly completed document is not permissible as may violate license law.

Which is why agents aren't allowed to complete PCDs other than lines 1-5.


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