Unit 9 Real estate brokerage

All of these are requirements for independent contractor status use by the Internal Revenue Service except A. Current real estate license B. A written agreement specifies that the individual will not be treated as an employee for tax purposes C. Specific hours stated in a written agreement D. Substantial portion of the individual income is based on sales production rather than hours worked

Specific our stated in a written agreement

All of these are ways for broker to charge for services except A. Commission based on a percentage of the selling price B. Hourly rate C. Standard community rate D. Flat fees

Standard community rate

Although state laws vary regarding Internet advertising which of these is a typical element of state policy or law

That's must contain true, current information and avoid misleading the potential client or customer

An arrangement to sell one product only if the buyer purchases another product as well is called

A tie in agreement

Sales associate A and sales associate B work for the same firm they agreed to divide their region into eastern half and western half; sales associate will handle listings on the east so so she'll be will handle listings on the west

The agreement does not violate antitrust laws

If present at the time the transaction closes, a broker is considered to be the procuring cause of a sale. True or false

False, a broker is considered the procuring cause of a sell if the broker started an uninterrupted chain of events that resulted in the sale

A real estate sales associate is license to buy, sell, exchange, or lease real property for others and charge a fee for those services true or false

False, a real estate broker is license to buy, sell, exchange, or lease real property for others into charge a fee for those services

Only a few states regulate the activities of real estate brokers in sales people is this true or false

False, all 50 states, the district of Columbia ,and all Canadian providences license and regulate the activities of real estate brokers and their sales associates

The practice of illegally setting standard prices for products or services is called a tie in agreement true or false

False, price-fixing is the practice of competitor setting prices for products or services Tie-in agreement is agreement to sell one product only if the buyer also purchases another product

The broker may still be entitled to a commission in which of these situations or a pending property sale did not close

The seller decided not to sell

An important purpose of the E sign act is to

Give contracts created using email the same legal standing as those on paper

What is the compensation plan called if a sales person commission split increases depending on whether the Sales person achieve higher production goals

Graduated commission split

Administrative regulations that administer real estate license laws

Have the same force and affect as statutory law

Commissions are negotiable

In all cases

A licensed real estate sales person has a written contact with his broker specifying that he will not be treated as an employee. The sales person's entire income is from sales commissions rather than an hourly wage. Based on the fact of sales person is considered a

Independent contractor

Why have real estate law's been put into affect

To protect the public and establish standards of professionalism

A real estate sales associate is an individual who is licensed to perform real estate activities on behalf of a licensed broker

True

Price-fixing, group boycotting, and allocation of markets are three examples of antitrust violations True or false

True

Real estate license law set up a disciplinary system to enforce the acceptable standards of conduct and practice for licensees True or false

True

The amount of a brokers compensation is always negotiable true or false

True

The internal revenue services have establish criteria for determining whether a sales associate is classified as an employee or a non-employee for income tax purposes True or false

True

Under the Sherman antitrust act, people who fix prices or allocate markets may be subject to a maximum 1 million fine in 10 years in prison

True

What is the practice called when a consumer select specific services to use only and only pays the real estate professional for those services

Unbundling services

The use of of electronic signatures make routine paperwork more efficient and has been encouraged by adoption by most states of the

Uniform electric transaction Act UETA

To be entitled to receive compensation from a real estate sales transaction, an individual must be all of the following except A. A licensed real estate broker B. The procuring cause of the sale C. Unrelated to either the buyer or the seller D. Employed by the buyer or seller under a valid contract

Unrelated to either the buyer or the seller

The name for the current policy of the national Association of realtors allows all multiple listing service MLS members equal rights to display MLS data in the

Internet data exchange

What is the main value of multiple listing service MLS for sellers

It exposes the property to greater number perspective buyers

After license laws are in acted by the legislator, who is responsible for adopting administrative regulations

Licensing authority (division commission etc.)

A qualified buyer makes a written offer on a property on March 6 by filling out and signing a sales agreement later that day, the seller excepts and signs the agreement, keeping one copy. The broker gives a copy of the signed agreement to the buyer on March 8. The sellers deed is delivered on May 1. The deed is recorded on May 7, and the buyer takes possession on May 15. When is the brokers commission payable if this is a usual transaction

May 1st

A broker who owns a realty agency does not permit his sales people to charge less than eight percent commission in any transaction. After reading a newspaper article about this realty agencies policy the broker of another realty agency decides to also charge a 8% percent minimum based on these facts which of these statements are true

Neither broker has committed an antitrust violation

A real estate sales associate has a license personal assistant who usually must be

Paid by the sales associates employing broker

And owner tells a group of brokers, I will pay a commission to go ever brings me a buyer. In this case the broker who was going to get paid must be the

Procuring cause

Do not call registry and laws such as telephone consumer protection act, junk fax prevention act, and rules of the Federal Communications Commission dictate

Prohibited communications

Even if a consumer has requested placement on the national do not call registry, a real estate professional make call to the customer up to how many months after the customers last purchase

18

Assuming that the listing broker and selling broker split their commission from a transaction equally, what was the sales price of the property if the commission rate was 6.5% and the listing broker received 12,593.50

387, 492

All of the following are prohibited under the antitrust laws except A. Real estate companies agreeing not to go cooperate with a broker because of the fees that the broker charges B. Competing property management companies agreeing to standardize management fees C. A broker setting a company commission schedule D. Competing brokers allocating markets based on the value of homes

A broker setting a company commission schedule

Which of the following is allowed under antitrust laws

A broker setting a company commission schedule

In real estate a sales associate is always

A licensee who performs real estate activities on behalf of a broker

Under the Sherman Antitrust Act, the penalty for a person found guilty of fixing prices or allocating markets is

A maximum $1 million fine and 10 years in prison

The real estate industry, including all licensed real estate broker in sales associates, is subject to

Antitrust laws

A rep estate associate who is an independent contractor, as opposed to an employee, will have a substantial portion of the individual's home

Based on sales production or other output

In order for a broker to be paid on an open listing the broker must

Be a procuring cause of the sale

Which law has a feature that commercial email messages must include a means by which a recipient can unsubscribe

CAN-SPAM Act

All of these are violations of federal antitrust laws except A. Tie-in agreement B. Commission splitting C. Allocation of customers D. Group boycotting

Commission splitting

An independent contractor in a broker can agree upon what

Compensation the contractor would receive

Real estate license laws exist primarily to protect

Consumers

A recent important change to real estate brokerage practice is

Digital communication in all it's forms

The primary purpose of the uniform electric transaction act UETA is to

Remove barriers in electronic commerce that would otherwise prevent enforceability of contract

When communicating with clients or customers via email all of these are examples of professional email etiquette except A. Using spellcheck B. Providing useful information in the subject line C. Avoiding sending large attachments D. Responding to emails within one week

Responding to emails within one week

Many states have modified the traditional term broker and sales person to stress that all licensees must be knowledgeable of and comply with the law. The person who performs licensed activities under the authority of a broker is frequently called a

Sales associate

Antitrust all do not prohibit real estate

Sales persons with in the same office agreeing on a standard commission right

I real estate broker had a listing agreement with a seller that specified a six percent commission. The broker showed the home to a prospective buyer. The next day, the buyer called the seller directly and offered to buy the house for five percent less than the asking price the seller agreed to the price and inform the broker in writing that no further brokerage services would be required. The sale went to closing six weeks later. Is the broker entitled to the commission

The broker was the procuring cause of the sale and is entitled to the full six percent commission