Industry Best Practices Flashcards

A TC receives a request from the buyer to explain whether they should waive the appraisal contingency. What is the best practice?

Answer: Refer the question to the licensed agent and suggest the buyer consult appropriate professionals

Advising on contract strategy is the agent's role, so a TC should refer such questions instead of answering them.

Which practice best ensures that no deadline is missed across many active files?

Answer: Using a centralized calendar or transaction management system with automated reminders before each deadline

Centralized tracking with advance reminders gives the TC time to act before deadlines pass.

Under RESPA Section 8, which of the following is generally prohibited?

Answer: Giving or accepting a kickback or referral fee for referring settlement service business

RESPA Section 8 prohibits kickbacks and unearned fees for referring settlement service business on federally related mortgage loans.

After closing, what is a recommended best practice for a TC?

Answer: Confirm the file is complete, submitted for broker compliance review, and archived, and send closing follow-ups to clients as directed

Post-closing tasks include final compliance submission, proper archiving, and client follow-ups that support the agent's business.

When a contingency removal form is signed, what should the TC do?

Answer: Deliver it promptly to the other side and escrow as the contract requires, and update the timeline

Contingency removals often must be delivered to be effective, and the timeline should reflect the change.

Which communication habit is considered a best practice for TCs?

Answer: Sending regular, proactive status updates to agents and clients at key milestones

Proactive milestone updates reduce anxiety, prevent surprises, and cut down on repetitive inquiries.

A TC discovers the property address on the contract has a typo that differs from the preliminary title report. What is the best action?

Answer: Alert the agent so the discrepancy can be corrected by addendum and confirmed with title

Discrepancies in property identification must be corrected properly with the parties' signatures and confirmed with title to avoid closing problems.