General - chapter 11 lesson 5 Flashcards
(16 cards)
Mishandling of trust funds
no licensee shall fail to account for and remit any money which comes into the licensee’s possession and which belongs to others (earnest money 5 business days)
Transparency is required when receiving funds; therefore…
no rebates or undisclosed commissions
you cannot pay a referral fee or commission to
anyone who does not hold a real estate license
you can’t represent…
a different broker without knowledge and consent of both brokers
guarantee of future profits is
prohibited`
you shouldn’t place signs on property without
obtaining written consent from the property owner or their agent
you can’t offer a property for sale without
sellers written permission
you can’t offer a property for sale on different terms than
authorized by the seller
licensees are cautioned against inducing
any party to breach a contract
financial obligations of the parties must be
documented
procuring signatures without
essential details
engaging in
fraud or misrepresentation
misrepresenting
property prices to lenders
all licensees are also prohibited from
failing to disclose personal interests, failing to inform parties about closing costs, failing to surrender documents to rightful owners, failing to promptly respond to KREC requests, refusing to appear and testify under oath, demonstarating incompetence as licensees
broker specific prohibitionsq
payment of commission to unlicensed individuals, failure to properly supervise salespersons and associate brokers, failure to deliver closing statements in a timely manner, lending of a broker license to a salesperson, failure to provide certain required reports to the commission, failure to propertyly maintain and reconcile client funds
