Industry Best Practices Flashcards

An agent asks the TC to backdate an addendum so it appears signed before a contingency expired. What is the correct response?

Answer: Decline, because backdating documents is unethical and may constitute fraud

Backdating documents misrepresents facts and can expose everyone to legal and licensing consequences.

What is the best way for a TC to document an important phone conversation about a deadline change?

Answer: Send a follow-up email summarizing the conversation and save it to the transaction file

A written recap creates a dated record and gives all parties a chance to correct any misunderstanding.

A deadline change agreed to verbally by both agents is NOT yet in writing. What should the TC advise?

Answer: Get a signed addendum or amendment documenting the change

Contract modifications for real estate should be in writing and signed by the parties to be enforceable and clear.

Which of the following is the best practice for storing transaction files containing personal financial information?

Answer: Use secure, access-controlled storage and avoid sending sensitive data through unencrypted email

Protecting nonpublic personal information requires secure, restricted storage and encrypted transmission.

How long should a TC generally keep transaction records?

Answer: At least as long as required by the state's broker record-retention rules and brokerage policy

States set minimum record-retention periods for brokerage files, commonly several years, and brokerage policies may require longer.

Midway through escrow, the TC learns the buyer's loan approval may be delayed past the financing contingency date. What is the best first step?

Answer: Promptly notify the buyer's agent so they can decide whether to seek an extension or take other action

Early notice to the responsible agent allows time to negotiate an extension before contingency rights are affected.

What is a key best practice when a TC works for both agents in the same transaction?

Answer: Get disclosure and consent as required, and keep each side's confidential information separate

Transparency about the dual role and strict confidentiality protect both clients and reduce conflict-of-interest risk.