Flashcards in unit 5 real estate practice Deck (10)
an employing broker would be commingling trust funds if the employing broker deposited monies and rents received from a client's various properties in the same trust account
commingling would be if all trust funds are deposited in the same trust account
the purpose of the americans with disabilities act (ADA) is to ensure equal access to public accommodations for disabled people
under an exclusive agency listing, the broker is entitled to receive a commission, regardless of who sells the property
this type of listing puts the seller and the broker in competition. if the seller finds a buyer, there is no commission paid to the listing brokerage. however, all brokerages must go through the listing office, not directly to the seller. if another brokerage has a buyer, the seller pays as promised in the listing.
the four risk management evaluation points are as follows: avoid, control, defer, and ignor
for risk management to be effective, the four evaluation points are taken into account. they are as follows: avoid, control, transfer, retain (ACTR)
E & O insurance that is held by the brokerage firm will cover all errors and acts of negligence by all salespeople.
this will not cover criminal acts, fraud, and violations of civil rights and antitrust
duress, fraud, minors, and misrepresentation make contracts voidable
professional liability insurance for real estate professionals is known as a surety bond
the most common (and in some states, mandatory) insurance for a real estate entity is errors and omissions insurance.
if a seller misrepresents a material fact about the property, from the buyer's point of view, the contract is unenforceable
a property management company has installed fire doors and ceiling sprinklers. this is an example of control