Unit 8. RE brokerage

Neither broker has committed and anti-trust violation

A broker does not permit to sales associates to charge less than 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

$19,000 = $400,000 * .04 =$16,000 +$3000

A broker listed a sellers home for $425,000 with a 4% commission, plus $3000 for advertising costs. The buyer offered $380,000, and after several counter offers, finally agreed to $400,000. What was the total cost to the seller

The broker was the procuring cause of the sale and is entitled to the full 6% commission

A broker listed for a 6% commission. The broker showed the home. next day, Buyer called seller directly and offered to buy the house for 5% less. seller agreed to the price and informed the broker in writing that no further services were required. Based on these facts

$16,250 = $325,000 * .05

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 does the seller have to pay and commission fees

Licensing authority (division, commission, etc.)

After license laws are enacted by the legislature, who is responsible for rules and regulations?

A. A current real estate license, B. a written agreement specifies the individual will not be treated as an employee for tax purposes, C. a substantial portion of income is based on sales production rather than hours worked D. not not specific hours stated in a written agreement

All of these are requirements for independent contractor status used by the internal revenue service except

A. Group boycott, B. allocation of customers, C. tie and agreements D. not not commission split

All of these are violations of federal antitrust laws except

A. Flat fee, B. hourly rate, C. commission based on percentage of selling price D. not not standard community rate

All of these are ways for a broker to charge for services except

Adds must contain true, current information and avoid misleading the potential client or customer

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

Tie-in agreements

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

Give contracts created electronically the same legal standing as those executed on paper

An important purpose of the E sign act is to

18

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 consumers last purchase

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

In real estate, a sales associate is always

$9625 =$500,000 * .06= $30,000 * .35= $10,500 -200-75-(.75*800)

SA compensation; 35% commission earned per sale, less $200 per trans desk rental. Less 75% of all mktg & sales expenses per property listed, less $75 per transaction fee for adv & mktg expenses If a SA sold a house for $500,000, with a 6% commission, how much will the associate be paid if the sale incurred $800 adv & mktg cost

$11,928.19 = $560,000 * .05= $28,000 $348,000*.06=$20,880 $89,500*.0675=$6041.25 $410,000*.06=$24,600. $79,521.25*.15

SA pay monthly desk rent of 15% of their monthly income. In May, 1 SA receives 5% on $560,000 sale; 6% on $348,000 sale; And 6.75% on $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. The seller decided not to sell B. Not not financing fell through, C. not not the buyer wanted to add the kitchen appliances to the sale but the seller refused

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

Graduated commission split

The compensation plan in which a sales associates commission split increases depending on whether the associate achieve higher production goals is the

Internet data exchange

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

Remove barriers in electronic-commerce that would otherwise prevent enforceability of contracts

The primary purpose of the uniform electronica transactions act UETA Is to

It exposes the property to a greater number of prospective buyers

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

Unbundling services

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

A. Using spellcheck, B. providing useful information in the subject line, C. avoiding sending large attachments D. not not Responding to emails within one week

When communicating with clients or consumers via email, all of these are examples of professional email etiquette except

To protect the public and establish a standard of competence

Why have real estate license laws been put into affect

March 8

buyer makes offer Mar6 by completing, signing a sales agreement. seller excepts/signs agreement, keeps 1 copy. sellers broker gives copy of signed agreement to buyer Mar 8. sellers deed delivered May 1. deed recorded may 7 buyer takes possession May 15. When is commission earned

$9223.50 =$279,500 * .055 = $15,372.50* .60

sales associate Agreement with broker was a 40/60 split with broker keeping 40% of commission. seller was charged 5.5% how much did the sales associate receive if the associate listed and sold a house for $279,500