Real Estate Practice Ch. 1

Since a real estate agent operates as an independent contractor, the agent's sponsoring broker is NOT required to withhold any income taxes. T/F?

True

If a property sells for $500,000 and the seller's broker commission is 6%, how much will the broker earn from the transaction

$30,000

The overall commission for a transaction is 6%. The commission split between the seller's and buyer's broker is 50/50. The commission split between the seller's broker and their real estate agent in the transaction is also 50/50. What would the seller's broker's real estate agent's commission be for the transaction

1.5%

If the overall commission in a transaction is 6%, and the seller/buyer broker commission split is 50/50, what would the buyer broker's commission be for the transaction

3%

A real estate salesperson can sell which of the following real property types? A-Luxury homes B-Time-shares C-Condominiums D-All of the above

All of the above

The California Bureau of Real Estate has the power to do which of the following? A-Issue a license B-Suspend a license C-Revoke a license D-All of the above

All of the above

Which of the following should be considered when choosing a broker? A-Location B-Commission split C-Training D-All of the above

All of the above

Which of the following issues a real estate license in California

California Bureau of Real Estate

An agent's compensation for performing the duties of the agency is known as a

Commission

Real estate licensees are required to do ..............in order to renew their license

Continuing Education

In addition to commission splits, brokers may make money from which of the following

Desk Fees

Most new home buyers purchase using cash. T/F?

False

New licensees are required to become members of the NAR. T/F?

False

This refers to a person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another

Independent Contractor

A seller who must sell is known as a

Motivated seller

The real estate marketplace is a/an .......... marketplace

Stratified

As a new licensee, what is the most important aspect in choosing a broker

Training

A real estate salesperson must work under a sponsoring broker. T/F?

True

Commissions are always negotiable. T/F?

True

In a buyer's market, there is an excess of inventory. T/F?

True

Most home purchases are now started online. T/F?

True

According to the IRS, real estate agents are

Independent Contractors

In order to use the title REALTOR, a licensee must be a member of the

National Association of Realtors

New agents typically work better in an office environment. T/F?

True

Broker commissions are typically stated as a

Percentage of the sale price

Any home that is not newly constructed is considered a

Resale Home

Which of the following carries workers compensation insurance

Real Estate Brokers

Real estate is cyclical. T/F?

True

High performing agents may demand a higher commission split with their sponsoring broker. T/F?

True

Real estate salespersons must have good time management skills. T/F?

True