Transaction Management & Coordination Flashcards

Both buyer and seller dispute who is entitled to the earnest money after a cancellation. What generally happens to the funds?

Answer: The escrow holder keeps them until both parties sign a mutual release or a court/arbitration orders disbursement

Escrow holders typically need mutual written release instructions or a legal order before disbursing disputed deposits.

Which communication practice best protects a TC in a dispute?

Answer: Documenting key communications in writing and saving them to the transaction file

Written records create an audit trail showing what was sent, to whom, and when.

A buyer asks the TC whether they should waive the home inspection. How should the TC respond?

Answer: Refer the question to their licensed agent or an attorney

Giving advice on contract decisions goes outside the TC's administrative role and belongs with the licensed agent or attorney.

What is a commission disbursement authorization (CDA)?

Answer: A broker-signed instruction telling the closing agent how to pay commissions

The CDA tells the title or escrow company how much commission to pay and to whom, as authorized by the brokerage.

The seller's HOA resale documents have not arrived, and the buyer's HOA review period depends on receiving them. What should the TC do?

Answer: Follow up with the HOA/management company and alert the agent that the review period may not have begun

Many HOA review periods begin only when the buyer receives the documents, so a delay affects the timeline and must be tracked.

When should a TC update the listing status from Active to Pending (or Under Contract) in the MLS?

Answer: Within the time frame required by local MLS rules after acceptance

MLS rules require timely status changes after acceptance, and missing them can bring fines.

Which situation most likely requires a contract amendment rather than just an internal note?

Answer: The parties agree to move the closing date

Changing material terms such as the closing date requires a written amendment signed by all parties.