Lesson One Test Real Estate Flashcards

Lesson One Test Real Estate Flashcards a real estate agent may use trust account funds: to pay for repairs on the house managed by the broker.trust founds are money or things of value received by the broker or salesperson on behalf of his principal. This money is being held for the benefit of the parties involved in the deal and can be used to benefit all parties in the deal only, not for the benefit of the broker.on july 10, 1998, a buyer executes a deposit receipt and gives the agent a check. in doing so he instructs the agent to hold the check until july 30, 1998. under these circumstances the agent should?hold the check un cashed and inform the seller accordingly.the broker holds the check as the agent of the buyer until the offer is accepted. the broker may take a check and hold it un-cashed, but he must inform the seller and obtain the sellers consent to do so.comminglingthe act of mixing or blending together a broker was authorized to accept a deposit in his listing agreement with the seller. he broker accepts an offer with a deposit in the form of a check made payable to the seller.the broker lost the check prior to his presenting the offer, in

this case:

because the seller had authorized the broker to accept the do posit as his agent, the risk of its loss by the wrongful actor negligent act of the broker rests upon the seller.when using a note as a deposit from a buyer in making an

offer:

the agent should inform the the seller that the deposit is in the form of a note before the seller accepts the offer.the desk cost for a broker is______?the total current cost including salaries paid to the office manager and receptionist decided by the number of agents in the office.Because the real estate housing market, as you have seen, is varied in nature and because the housing market deals with many different types of desires and needs, it is said to be ________?stratified means different levels. people acquire property for a specific purpose such as residential, business, investment, agriculture and industrial.withdrawals from a real-estate brokers trust account cannot be made a=excepting on the signature of the broker or upon the signature of at least one of the following persons,

when authorized by a broker:

a.) a sales person the broker employsb.)any corporate officer through whom the corporation is licensed as a brokerc.) any unlicensed employee provided a sufficient fiduciary bond covers such an employee indemnifying the broker against loss of money or property by act of such employee.D.) ALL OF THE ABOVE ARE CORRECT!!!a real estate broker found guilty of conversion would be subject to heavy penalty. what following act best describes conversion?the sales person receives $500 cash from the buyer, together with a signed offer and before the offer is accepted, the licensee spends the $500 on a vacation in Nevada.Conversionis the misappropriation and use of moneys os property of another, and should not be confused with commingling.conversion is a far greater offense.Sam Smith, the owner of blackacre, lists the property for sale with broker brown. Sam fails to authorize the agent to

accept a deposits on his behalf. Charles Cable makes an offer on Blackacre and gives Broker Brown a check for $5000 as a deposit. under these circumstances, Broker

Brown:

can accept the deposit as the agent for Buyer Cable and place the money in a buyers trust fund. the law demands

that an agent to accept all offers unless told not to by his principal. Under these circumstances broker Brown should accept the deposit as the agent of Charles Cable and hold the deposit as the agent of the buyer.the following could be used by a buyer as an ernest money deposit in purchasing real property...?a.) postdated checkb.) unsecured promissory notec.)promissory note secured by a deed of trustd.) ALL

OF THE ABOVE !!!!

commingling is is most nearly the opposite of ______?segregate if a broker maintains a trust account, such an account:benefits both the beneficiary and the trustor. no minimum balance is required for a trust account and under present law it may not draw interest. it is maintained for the benefit of the person to whom the money belongs and is for the benefit of all parties to a transaction should a civil action occur.as a broker you receive an offer to purchase with the buyers personal check for $1000 as a deposit. the buyers offer states that the check is to be held un-cashed until the

close of escrow. you should:

take the offer and inform the seller of the conditions on the deposit before his acceptance.