real estate ch 10

market allocation

An agreement between brokers not to compete with each other in certain areas or markets.

Group Boycott

An agreement between two or more real estate brokers to exclude other brokers from fair participation in real estate activities.

tie-in arrangement

An agreement to sell one product only on the condition that the buyer also purchases a different product.

trust account

a bank account used to keep trust funds segregated from the broker's personal funds and general business funds

Real Estate Broker

a person who is licensed to represent others for compensation in real estate transactions.

Real Estate Salesperson

a person who is licensed to work for and represent a broker in real estate transactions.

inducement

a prize, gift, or rebate used to encourage a member of the public to attend a sales presentation

real estate license law

a state statute that governs the licensing and business practices of real estate agents.

Blind Ad

an advertisement placed by a licensee that fails to disclose the name of the licensee's broker and/or fails to indicate that the ad was placed by a real estate agent.

Affiliated Licensee

any real estate licensee who works for a broker, whether licensed as a broker, associate broker, or salesperson

Associate Broker

broker who works for another broker

trust funds

funds held by a broker on behalf of clients or customers

Recovery Fund

in some states, an account funded by license fees that is used to compensate members of the public injured by the unlawful acts of a real estate licensee, when they cant collect a judgment from the licensee.

disciplinary action

legal action taken by the director of the real estate licensing agency against a licensee for violations of the license law, which may lead to license suspension or revocation

Commingling

mixing trust funds together with a broker's personal funds or general business funds.

price fixing

the cooperative setting of prices by competing firms

Conversion

when a real estate licensee takes trust funds and uses them for her own purposes