Safety and Compliance Flashcards

Which federal law gives electronic signatures and records the same legal effect as paper in interstate commerce?

Answer: ESIGN Act

The 2000 Electronic Signatures in Global and National Commerce Act validates electronic signatures and records.

What state-level framework, adopted by nearly every state, governs electronic transactions and signatures?

Answer: Uniform Electronic Transactions Act (UETA)

UETA has been adopted by 49 states plus DC; New York relies on its own electronic signature statute.

How should a TC decide how long to keep closed transaction files?

Answer: Follow state license law and brokerage policy, and keep whichever period is longer

Retention periods vary by state, commonly three to five years or more, and brokerage policy may require longer.

Which federal rule requires businesses to properly destroy consumer report information, such as by shredding, before disposal?

Answer: FTC Disposal Rule under FACTA

The FTC Disposal Rule, issued under FACTA, requires reasonable measures like shredding or wiping to dispose of consumer report information.

A new client the agent has never met asks to view a vacant listing alone at night. What safety practice should the TC help put in place?

Answer: Verify the client's identity, meet at the office first, and share the showing schedule with the brokerage

Verifying identity, meeting first at a public place, and sharing itineraries are standard agent safety protocols.

What is the TC's proper role with the seller's property condition disclosure?

Answer: Make sure the seller completes, signs, and delivers it on time

Only the seller can disclose known material defects, so the TC tracks completion and delivery without supplying or changing answers.

During a pre-closing compliance review, the TC finds a buyer's initials missing on an addendum. What should the TC do?

Answer: Send the addendum to the buyer for initials before closing and record the correction in the file

Missing signatures or initials must be supplied by the party, never by the TC, and the correction should be documented.