Rules E 24-?

Question 1

E-24

Fraudulent application subject to discipline

Answer 1

Licensee who gets or attempts to get a license thru fraud, misrepresentation, deceit or making a material misstatement or fact in the application is subject to discipline.

Question 2

E-31

Reasonable supervision of employees with more than 2-years experience include:

Answer 2

• maintain a written office policy (signed by licensee) describing duties & responsibilities of licensee
• review all written contracts
• review transaction files
• delegation shall be in writing by the employed licensee and maintained by the Broker for inspection
• employing broker can’t use that employed licensee to avoid the requirement to provide supervision

Question 3

E-32

High-level of supervision

Answer 3

• provide specific training in office policies & procedures
• be reasonably available for consultation
• provide assistance in preparing contracts
• monitor transactions from contracting to closing
• review documents in preparation for closing
• ensure employing broker or experienced licensee attend closing or is available for assistance
• employing broker can delegate supervisory authority to other experienced licensee

Question 4

E-36

Good funds at closing

Answer 4

• licensee providing closing services shall not disburse funds or authorize disbursement until funds are received and available for immediate withdrawal from the financial institution where the funds have been deposited
• contingencies ir reservations (loan for example?) have to be satisfied before funds can be disbursed

Question 5

E-37

No fees to licensee/agent for preparation of legal documents

Answer 5

• if licensee or their agent prepares legal document, separate fees for preparation can’t be charged to client
• licensee isn’t responsible for fees charged if client’s attorney prepared legal documents

Question 6

E-38

Office policy contains designation of brokerage relationships

Answer 6

• employing broker or employed broker must be designated in writing by the employing broker to serve as a single agent or transaction broker for seller or buyer
• contract by teams: individual agent is designated, but designation status belongs to the team