Unit 9

A sales associate took a listing on a house that sold for $329,985. The commission rate was 5%. A sales associate employed by another broker found the buyer. The seller's broker received 60% of the commission on the sale; the buyer's broker received 40%. If the seller's broker kept 30% and paid the seller's sales associate the remainder, how much did the seller's sales associate earn on this sale?

$6,929.68

All of the following are required of a broker who is seeking to collect a commission for brokering the sale of a property EXCEPT

complying with a commission rate set by a trade organization

A real estate broker was responsible for a chain of events that resulted in the sale of a client's property. This is called

procuring cause

Group boycotting is illegal and occurs when

two or more businesses conspire against another business or agree to withhold their patronage to reduce competition

When acting as an employee rather than an independent contractor, a sales associate may be obligated to

work set hours

After a particularly challenging transaction finally closes, the client gives a sales associate a check for $500 "for all your extra work." Which statement is accurate?

The sales associate may receive compensation only from the broker.

The federal law that makes contracts originated, negotiated, and executed over a combination of computer and cell phone enforceable is

UETA

A real estate sales associate, classified by the IRS as an independent contractor, receives

a negotiated share of commissions on transactions

Hinting to prospective clients that there is a "going rate" of commission or a "normal" fee implies that rates are, in fact, standardized and is

a violation of antitrust laws

On the sale of any property, a sales associate's compensation is based on the total commission paid to the broker. The sales associate receives 30% of the first $2,500, 40% of the next amount between $2,500 and $7,500, and 50% of any remaining amount exceeding $7,500. If a property sells for $234,500 and the broker's commission rate is 6.5%, what is the sales associate's total compensation?

$6,621.25 The answer is $6,621.25. Total commission to the firm: $234,500 × 6.5% = $15,242.50. The salesperson's commission is computed in three parts: (1) Use $2,500 of the $15,242.50 for a commission at 30% = $750. (2) Use another $5,000 of the $15,242.50 for commission at 40% = $2,000. So far, the salesperson has received commissions on $7,500: $2,500 + $5,000. The agent now gets 50 percent commission on the $7,742.50 that is left: $15,242.50 - $7,500 = $7,742.50. (3) The commission on $7,742.50 at 50% = $3,871.25. Total of three parts of the salesperson's commission: $750 + $2,000 + $3,871.25 = $6,621.25.

A broker asks a neighbor who wishes to sell her home if she can present an offer from a prospective buyer, and the neighbor agrees. At this point, which statement is TRUE?

The neighbor is not obligated to pay the broker a commission