Real Estate 8

Sales associates in a real estate brokerage are compensated based on this formula: 35% of the commission earned on any sale, less a $200 per-transaction desk rental. Sales associates are responsible for paying 75% of all marketing and sales expenses for any property they list, and a $75 per-transaction fee to cover the monthly expenses of advertising and marketing the brokerage's services. If a sales associate sold a house for $500,000, with a 6% commission, how much would the associate be paid if the sale incurred $800 in marketing and advertising costs? a. $9,625 b. $9,700 c. $10,225 d. $10,500

a. $9,625

An arrangement to sell one product only if the buyer purchases another product as well is called a. a tie-in agreement b. a fee-for-services c. a buydown provision d. an allocation of customers

a. a tie-in agreement

An important purpose of the E-sign Act is to a. give contracts created electronically the same legal standing as those executed on paper b. require stringent security measures for email communication c. prevent notarization of electronically transmitted agreements d. require all parties to use electronic contracting if the seller prefers it

a. give contracts created electronically the same legal standing as those executed on paper

All of these are ways for a broker to charge for services EXCEPT a. standard community rate b. flat fee c. hourly rate d. commission based on a percentage of the selling price

a. standard community rate

What is the practice called when a consumer selects specific services to use and only pays the real estate professional for those services? a. unbundling services b. tie-in agreement c. discounted services d. allocation of markets

a. unbundling services

At a realty agency, sales associates pay a monthly desk rent of 15% of their monthly income. In May, one sales associate receives 5% on a $560,000 sale; 6% on a $348,000 sale; and 6.75% on an $89,500 sale. The only other sales associate at the agency who received a commission in May got 6% on a $410,000 sale. How much did the agency receive in May? a. $7,095.97 b. $11,928.19 c. $12,251.53 d. $14,945.00

b. $11,928.19

A qualified buyer makes a written offer on a property on March 6 by completing and signing a sales agreement. Later that day, the seller accepts and signs the agreement, keeping one copy. The seller's broker gives a copy of the signed agreement to the buyer on March 8. The seller's deed is delivered on May 1. The deed is recorded on May 7, and the buyer takes possession on May 15. When is the broker's commission payable if this is a usual transaction? a. March 8 b. May 1 c. May 7 d. May 15

b. May 1

Although state laws vary regarding internet advertising, which of these is a typical element of state policy or law? a. email sent by a real estate licensee needs to include the licensee's name, phone number, and real estate license number b. ads must contain true, current information and avoid misleading the potential client or customer c. on a website containing their ads, real estate licensees only need to identify themselves as a broker or salesperson on the site's home page d. it is acceptable for only the sales associate's name (without the broker's name) to be shown in an ad

b. ads must contain true, current information and avoid misleading the potential client or customer

All of these are requirements for independent contractor status used by the IRS EXCEPT a. a current real estate license b. specific hours stated in a written agreement c. a written agreement that specifies that the individual will not be treated as an employee for tax purposes d. a substantial portion of the individual's income is based on sales production rather than hours worked

b. specific hours stated in a written agreement

Why have real estate license laws been put into effect? a. to protect licensees from lawsuits b. to protect the public and establish a standard of competence c. to prevent licensees from engaging in profit-making activities d. to establish maximum levels of competency and a moral marketplace

b. to protect the public and establish a standard of competence

A broker listed a seller's home for $425,000 with a 4% commission, plus $3,000 for advertising costs. The buyer offered $380,000, and after several counteroffers, finally agreed to $400,000. What was the total cost to the seller? a. $16,000 b. $18,000 c. $19,000 d. $20,000

c. $19,000

The sales associate's agreement with the broker was a 40/60 split with the broker keeping 40% of the commission. The seller was charged 5.5%. How much did the sales associate receive if the associate listed and sold a house for $279,500? a. $6,149.00 b. $7,686.25 c. $9,223.50 d. $15,372.50

c. $9,223.50

The name for the current policy of the National Association of REALTORS that allows all multiple listing service (MLS) member equal rights to display MLS data is the a. virtual office website b. internet Listing Display Policy c. Internet Data Exchange d. Open Listing Date Service

c. Internet Data Exchange

In real estate, a sales associate is always a. an independent contractor b. an employee of a licensed broker c. a licensee who performs real estate activities on behalf of a broker d. a combination office manager, marketer, and organizer with a fundamental understanding of the real estate industry, who may or may not be licensed

c. a licensee who performs real estate activities on behalf of a broker

All of these are violations of federal antitrust laws EXCEPT a. group boycott b. allocation of customers c. commission split d. tie-in agreement

c. commission split

The compensation plan in which a sales associate's commission split increases depending on whether the associate achieves higher production goals is the a. procuring cause commission b. cooperating broker commission c. graduated commission split d. 100% commission plan

c. graduated commission split

after license laws are enacted by the legislature, who is responsible for adopting administrative regulations? a. a subcommittee that reports to the legislature b. a local association of REALTORS c. licensing authority (division, commission, etc.) d. brokers and salespeople appointed by the governor

c. licensing authority (division, commission, etc.)

The primary purpose of the Uniform Electronic Transactions Act (UETA) is to a. facilitate the use of social media b. protect consumers against unwanted email c. remove barriers in electronic commerce that would otherwise prevent enforceability of contracts d. allow brokers to close more deals

c. remove barriers in electronic commerce that would otherwise prevent enforceability of contracts

A broker may still be entitled to a commission in which of these situations where a pending property sale did NOT close? a. the buyer wanted to add the kitchen appliances to the sale, but the seller refused b. the buyer decided not to buy the property c. the seller decided not to sell d. financing fell through for the buyer

c. the seller decided not to sell

A seller had agreed to pay the listing broker a 5% commission on property that was sold for $325,000. The listing broker offered a listing 40/60 selling split to any cooperating broker who sold the property. How much did the seller have to pay in commission fees? a. $9,100 b. $11,375 c. $13,650 d. $16,250

d. $16,250

Even if a consumer has requested placement on the National Do Not Call Registry, a real estate professional may call the consumer up to how many months after the consumer's last purchase? a. 3 b. 6 c. 12 d. 18

d. 18

What is the main value of a multiple listing service (MLS) for sellers? a. real estate professionals do not have to work as hard to secure property listings b. it simplifies closing procedures c. it reduces cooperation among brokers d. it exposes the property to a greater number of prospective buyers

d. it exposes the property to a greater number of prospective buyers

A broker does not permit his sales associates to charge less than an 8% commission in any transaction. After reading a newspaper article about this broker's policy, the broker at another firm decides to also adopt the 8% minimum. Based on these facts, which of these statements is TRUE?

d. neither broker has committed an antitrust violation

When communicating with clients or consumes via email, all of these are examples of professional email etiquette EXCEPT a. using spell check b. providing useful information in the subject line c. avoiding sending large attachments d. responding to emails within one week

d. responding to emails within one week

A real estate broker had a listing agreement with a seller that specified a 6% 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 5% less than the asking price. The seller agreed to the price and informed the broker in writing that no further brokerage services would be required. The sale went to closing six weeks later. Based on these facts, which of these statements is TRUE? a. while the broker was the procuring cause of the sale, the seller properly canceled the contract; without a valid employment agreement in force at the time of closing, the broker is not entitled to a commission b. the broker is entitled to a partial commission, and the buyer is obligated to pay it c. under the facts as stated, the broker is not the procuring cause of this sale but is still entitled to a commission d. the broker was the procuring cause of the sale and is entitled to the full 6% commission

d. the broker was the procuring cause of the sale and is entitled to the full 6%