Unit 26: Virginia Brokerage Regulation & Disclosures Exam Questions & Answers 100% verified

independent contractor vs. employee - ANSWER-licensees are either employees or independent contractors based on the characteristics of the job they perform Employment agreement - ANSWER-employment agreements include the type of relationship between the broker and the licensee Compensation - ANSWER-based on employment relationship and agreement; salespersons and associate brokers may accept compensation only from the supervising broker Broker's supervisory requirements - ANSWER-include broker's availability to licensees, providing training and written procedures, monitoring licensure and activities, maintaining records, reporting to REB, no disciplinary action against brokers for licensee violations if unknown to broker death or disability of principal broker - ANSWER-firm can appoint individual to complete broker's business within 180 days of death or disability; must select from designated list of individuals escrow account requirements - ANSWER-● escrow accounts used for rents and deposits and purchase transactions ● maintained to hold funds belonging to others until transaction closes or cancels; broker is responsible for accounts and must have signatory authority; funds to be identified as to source and labeled "escrow," interest to be disbursed according to contract; interest-bearing not required; interest allowed with disclosure ● broker must comply with proper maintenance of escrow funds; if broker fails, the REB can file a petition with the court to protect the funds deposits - ANSWER-lease transactions; deposit funds by end of 5th business day