Unit 9 Employment Issues

subagent

A license holder who represents a principal through cooperation with and the consent of a broker representing the principal, and who is not sponsored by or associated with the principal's broker

Broker Nelson Forbes wants to sue a seller-client because he was not paid his commission. Which of the following must Forbes prove to bring suit?

He was a licensed broker at the time the brokerage services began

Delila is a sales agent working for a buyer, Amon, who is purchasing raw land. Braxton is Delila's sponsoring broker. Delila did not have Amon sign a buyer representation agreement because Amon felt uncomfortable doing so. The sale has closed and Delila and Braxton are having problems collecting their share of the commission because the sellers think their agent breached the listing agreement. Delila is not worried because the TREC contract that was used to purchase the land states on the last page under "Broker Information" that the listing broker will pay the other broker 3% of the commission. Can Delilia sue Amon for collection of the commission on this basis?

No, Amon has not signed a written agreement to pay Delila or Braxton a commission

Christopher is a licensed sales agent sponsored by Coastal Realty in Corpus Christi, TX. Jose has been a real estate broker in Playa del Carmen, Mexico, for five years. In that time, Mexico has not required any kind of license or registration to engage in brokerage activity. Chris has clients interest in purchasing propety on the Gulf Coast of Mexico. Chris has referred his client to Jose. Can Chris accept compensation from Jose for referring his clients to Jose?

No, Chris must be paid through his broker

Indicate whether the following statement is true or false and why: Samson owns a brokerage firm, Strong Realty, LLC. He regularly gets paid profits from the brokerage activity conducted by the firm. Does he need a license to do so?

No, as long as Samson does not personally engage in brokerage activity, he can share in the business's income. An unlicensed person may share in the income earned by a business entity licensed as a broker or exempted from the licensing requirements under the Real Estate License Act if the person engages in no acts for which a license is required and does not lead the public to believe that the person is in the real estate brokerage business

Claudia Smith, a real estate attorney, solved complicated legal problems to make the sale of the Conner's farm. Broker Albert McLin, agent for the sellers, appreciated Smith's work and sent Smith a check after he collected his commission on the sale. Is this commission sharing permissible?

No, brokers are prohibited from sharing their commissions with attorneys

Attorney Eric Page received compensation from the sale of the White Ridge Ranch. In which of the following ways would the compensation to Page have been permissible?

Paid directly by the seller

Which state or federal agency publishes guidance to brokers to determine whether sponsored sales agents and broker associates are considered employees or independent contractors?

The Internal Revenue Service

when advertising a listing

a sales agent's name and broker's name should both be in the advertisement

A broker of one company representing a principal and a broker of another company acting as a subagent in the same transaction have what type of relationship?

arm around Subagency involves two separate brokerage firms, both representing the interest of the same client in an arm around relationship, as both firms represent the interest of the same client.

Debbie is the designated broker for Shetland Realty. She counsels Jenny, a sales associate, that Jenny must stop wearing miniskirts to work, start attending all sales meetings, be at her desk Monday through Friday by 9:00 am, and sign up for two Saturday duties every month. Debbie is jeopardizing Jenny's

independent contractor status

which of the following forms is a broker required to use when entering into a contract with a sales agent? a) none of these b) an independent contractor agreement created by the broker's attorney c) The TREC independent contractor agreement d) The TAR independent contractor agreement

none of these

Texas law prohibits a broker from sharing a sales commission with an attorney unless

the attorney is also a licensed as a broker

Attorney may conduct real estate transactions for compensations as long as the attorney is paid directly by

the principal