Core Concepts and Principles Flashcards

An unlicensed transaction coordinator is asked by a buyer whether the offer price is fair. What is the most appropriate response?

Answer: Refer the buyer to their licensed agent for pricing advice

Advising on price is licensed activity, so an unlicensed TC must refer the question to the agent.

Which date typically starts the clock for most contractual deadlines in a residential purchase agreement?

Answer: The acceptance (effective) date of the contract

Most contingency and performance periods are counted from the contract's acceptance or effective date.

A TC notices the seller's signature is missing on one counteroffer page. What should the TC do first?

Answer: Notify the responsible agent so the missing signature can be obtained

TCs flag incomplete documents to the agent and never sign for a party.

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

Answer: Three business days

TRID requires the Closing Disclosure to be received at least three business days before consummation.

What is the primary purpose of a transaction timeline or checklist prepared by a TC?

Answer: To track every deadline, task, and responsible party through closing

A timeline organizes deadlines and responsibilities so nothing is missed from contract to close.

A buyer's inspection contingency expires today and the buyer has not responded. What is the TC's best action?

Answer: Immediately alert the buyer's agent of the expiring deadline

TCs proactively notify agents of expiring deadlines so the principals can decide how to act.

Which party usually holds earnest money deposits in a typical U.S. residential transaction?

Answer: A neutral escrow holder, title company, or broker trust account

Earnest money is held by a neutral third party such as escrow, title, or a broker's trust account.