Communication and Documentation Flashcards

How long must real estate brokerages typically retain transaction files?

Answer: For the period required by state law, often 3 to 7 years

State license laws set record-retention periods, commonly ranging from about 3 to 7 years.

Which item is usually required in a compliant broker transaction file?

Answer: Fully executed purchase contract and required disclosures

Brokers must keep the executed contract, addenda, and mandatory disclosures for compliance review.

A lender requests a copy of the purchase contract. Before sending, what should the TC confirm?

Answer: That the version is the fully executed one with all addenda

Lenders need the complete executed contract including every addendum to underwrite correctly.

For a home built before 1978, which federal disclosure must be included in the file?

Answer: Lead-based paint disclosure

Federal law requires a lead-based paint disclosure and pamphlet for most residential properties built before 1978.

What is the best practice for naming digital documents in a transaction file?

Answer: Use a consistent convention such as address, document type, and date

Consistent naming makes files easy to locate, audit, and share accurately.

Which piece of information should a TC avoid sending over unencrypted email?

Answer: Full Social Security numbers and bank account numbers

Sensitive personal and financial data should only be sent through secure, encrypted channels.

Under the TRID rule, how many business days before consummation must the buyer receive the Closing Disclosure?

Answer: Three

TRID requires borrowers to receive the Closing Disclosure at least three business days before consummation.