QUESTIONS AND ANSWERS 2025 LATEST UPDATED | 100% RATED
A Licensee may not earn compensation when there license - VIP - (Correct Answer)is
INACTIVE or EXPIRED
A Licensee can receive compensation that was earned WHEN - VIP - (Correct Answer)the
license was current and active even if inactive of expired after
A BIC may NOT pay a licensee's ENTITY - (Correct Answer)unless the entity has a firm license.
A Licensee can share commission with parties BUT - (Correct Answer)1) Must be in writing - as
part of the agreement
2) Must be subject to Lender Approval in case of loans
3) Disclosed on the Closing Disclosure
4) Is considered a gift
5) Only with principal or client (not others)
Compensation ALWAYS flows through the firm - (Correct Answer)1) from the BIC
2) NO payment directly by the firm
3) Brokers MAY NOT pay brokers directly except a SOLE PROPrietorships
,When Paying Non-Affiliated Brokers or Firms - (Correct Answer)1) Best Practice to put in
writing - Not a Rule
2) May pay referral fees to brokers in any state if person has a CURRENT and ACTIVE license
3) DOCUMENTATION in broker's file:
- Written documentation regarding fee
- Proof of licensure
- Copy of a W9 for Brokerage Insurance or a 1099
When receiving Bonuses & Incentives - (Correct Answer)Disclosure AND consent by Principal
is REQUIRED
RESPA Prohibits - (Correct Answer)KICKBACKS to
Settlement Service Providers
- BANKS
- APPRAISAL COMPANIES
- TITLE OFFICERS
- ATTORNEYS
RESPA STATUTE - (Correct Answer)Applies to:
- 1-4 units RESIDENTIAL PROPERTIES WITH A FEDERALLY RELATED LOAN
- ENFORCED BY HUD
RESPA does not apply to (VIP) - (Correct Answer)1) Vacant Land Transactions
2) Cash Transactions
, 3) Seller Financed Transactions
) Commercial Transactions
RESPA CO-OWNERSHIP with different settlement service providers - (Correct Answer)Also
known as:
- Affiliated Business Arrangements (ABAs)
- Controlled Business Arrangements (CBAs)
These are permitted but 3 requirements:
1) Disclosure of the relationship
2) Use of the service provider cannot be forced
3) must disclose fees
RESPA PROHIBITS - (Correct Answer)Real Estate Licenses from forcing client or customer to
use a particular settlement service provider
Commercial Real Estate Lien Act says - (Correct Answer)Lien May be placed on Commercial
properties for commercial service rendered in a sales or lease transaction
Commercial Real Estate Lien Requirements - (Correct Answer)1) Written Agreement specifying
services and compensation
2) Must be a listing agent to file