Industry Best Practices Flashcards

A buyer receives an email that appears to come from the title company with new wiring instructions the day before closing. What is the best practice a transaction coordinator should advise?

Answer: Call the title company at a verified phone number from an independent source before sending any funds

Wire fraud prevention requires verbal verification using a known, independently sourced phone number, never contact details contained in the suspicious email.

When building a transaction timeline after mutual acceptance, which date should a TC confirm first because most other deadlines are calculated from it?

Answer: The acceptance (effective) date of the contract

Most contingency and delivery deadlines are counted from the contract's acceptance or effective date, so it anchors the entire timeline.

A TC notices the inspection contingency expires on a Saturday. What is the best practice?

Answer: Check the contract's language on how weekend and holiday deadlines are computed and alert the agent in advance

Deadline computation rules vary by contract form, so the TC should verify the contract language and give the agent advance notice.

Which practice best protects a TC from performing unlicensed real estate activity?

Answer: Limiting work to administrative tasks and referring negotiation or advice questions to the licensed agent

Unlicensed TCs should stay within administrative and clerical duties and leave negotiation and advice to licensed agents.

What is the primary purpose of sending a 'welcome' or introduction email to all parties at the start of a transaction?

Answer: To establish contact information, roles, key dates, and the preferred communication channels

An introduction email sets expectations, shares the timeline, and confirms who is responsible for what and how to reach them.

A document in the file is missing an initial on one page. What should the TC do?

Answer: Notify the agent so the missing initial can be obtained from the correct party before the file is submitted

A TC must never sign or initial for a party; missing items should be flagged so the agent can get them from the right person.

Why is it a best practice to use a standardized checklist for every transaction file?

Answer: It ensures consistent compliance and reduces the chance of missing required documents or deadlines

Checklists create consistency across files and help ensure every required document and deadline is tracked.