Core Concepts and Principles Flashcards

Why should a TC confirm wire instructions by phone using a verified number before funds are sent?

Answer: To prevent wire fraud from spoofed or hacked emails

Verbal verification via a known number protects against business email compromise and wire fraud.

A TC working for the listing agent receives the buyer's pre-approval letter. Who may the TC share the buyer's financial details with?

Answer: Only parties with a legitimate need in the transaction, as authorized

Confidential financial information should go only to authorized parties who need it for the transaction.

What is a contingency in a real estate purchase contract?

Answer: A condition that must be met or waived for the contract to proceed

A contingency is a condition, such as financing or inspection, that must be satisfied or removed.

Which document is most often used to change terms, like the closing date, after a contract is accepted?

Answer: An addendum or amendment signed by all parties

Post-acceptance changes require a written amendment or addendum signed by both buyer and seller.

For homes built before 1978, which federal disclosure must the seller provide?

Answer: Lead-based paint disclosure

Federal law requires a lead-based paint disclosure and pamphlet for pre-1978 housing.

What does 'time is of the essence' mean in a purchase contract?

Answer: Deadlines are strictly enforceable and missing them may be a breach

The clause makes contract deadlines strict, so missing one can be treated as a breach.

Which task is generally appropriate for an unlicensed TC?

Answer: Scheduling inspections and collecting signed documents

Administrative tasks like scheduling and document collection are typically allowed for unlicensed staff.