Unit #6

Question 1

Examples of Written Documents

Answer 1

1. offers
2. Exclusive listing agreements.
3. Agreements of sale.
4. Statements of estimated cost and return
5. Rental listing referral agreements.
6. Consumer Notice Disclosure
7. Disclosure summary for time-share
8. comparative market analysis disclosure.
9. Cemetery brokers disclosure.

Question 2

Duties of a licensee

Answer 2

1. The licensee may not give assurances or advice concerning real estate that he or she knows is incorrect.
2. A licensee may not be a party to materially false representation in writing regarding a real estate transaction.

Question 3

Disclosure of interest

Answer 3

1. A licensee cannot participate in a real estate transaction that they have ownership in unless they first disclose in interest in writing to all parties.
2. A licensee may not represent or purport to represent more than one party in a real estate transaction without written notice to all parties.
3. A broker who manages rental property may not accept a commission rebate or profit on expenditures made of the lessor without the lessors written consent.
4. a licensee who provides financial services, title services, insurance etc. may not require the consumer to use any of their services.
5. If the consumer chooses to use any of the services listed above, the licensee must provide the consumer with a written disclosure of any financial interest for the service.

Question 4

Disclosure of Business Relationships

Answer 4

1. A licensee must provide a disclosure summary to consumers seeking to purchase or sell at the initial interview.

Question 5

Disclosure Summary

Answer 5

A consumer notice, done for disclosure purposes for the purchase or sale of residential or commercial real estate. The licensee must make it clear who he is representing from the initial interview.

Question 6

Retention and Production of Records

Answer 6

Brokers must maintain all records for 3 years after the consumption or termination of a transaction.

Exemptions to the three year rule include:

1. The acknowledgement portion of the consumer notice must be kept for 6 months when there is no real estate transaction.
2. the acknowledgement portion of the consumer notice applicable to timeshares must be kept for 6 months.
3. the acknowledgement portion of the consumer notice applicable to leases when the licensee is working on behalf of the owner must be kept for 6 months.