Real Estate Documentation & Compliance Flashcards

One spouse can't attend closing and wants the other spouse to sign under a power of attorney. What should the TC do first?

Answer: Get lender and title company approval of the POA before closing

Lenders and title insurers must review and approve a power of attorney in advance, and it often has to be recorded.

A file has a fully signed contract but the seller's property disclosure is missing a signature. What is the best move?

Answer: Send it back to the seller for signature and record the follow-up in the file

A TC must never sign for a party, and missing signatures must be collected and documented for compliance.

Under NAR practice changes effective August 2024, what must MLS participants working with buyers have in place before touring a home?

Answer: A written agreement with the buyer

After the NAR settlement, MLS participants working with buyers must enter a written agreement before touring a home.

In a condo purchase, which document usually provides the HOA's dues, special assessments, and financial status to the buyer?

Answer: The resale certificate or estoppel letter

A resale certificate or estoppel letter states dues owed, assessments, and other association information for the unit.

What does a 'time is of the essence' clause mean for a TC managing contract deadlines?

Answer: Missing a stated deadline can be a material breach

With this clause, missing a contract deadline can be a material breach, so deadlines must be tracked strictly.

Which party must sign a deed for it to convey title?

Answer: The grantor

The grantor, who is the person transferring title, must sign the deed, and it is usually acknowledged before a notary for recording.

In states that allow it, what does dual agency generally require?

Answer: Informed written consent from both buyer and seller

Dual agency generally requires informed written consent from both parties because the agent represents both sides.