Unit 9- Real Estate Brokerage

Antitrust laws

Both state and federal, and prohibit monopolies, and contracts, combinations, and conspiracies that unreasonably restrain trade.

Sales associates who are paid in a lump sum and who are personally responsible for paying their own taxes are probably treated as what for tax purposes?

Independent Contractors

IDX Policy

Internet Data Exchange policy of the National Association of REALTORS allows members to limit the internet distributino of listing information.

A sales associate took a listing on a house that sold for $329,985. The commission rate was 5%. A sales associate employed by another broker found the buyer. The seller's broker received 60% of the commission on the sale; the buyer's broker received 40%. If the seller's broker kept 30% and paid the seller's sales associate the remainder, how much did the seller's sales associate earn on this sale?

$6,929.68

Sales Associate

A salesperson or broker who is licensed to perform real estate activities only on behalf of a licensed real estate broker.

The amount of commission paid to a sales associate is determined by what?

Mutual agreement with the broker

Terry is the personal assistant of a real estate sales associate. Terry must be paid by the broker who employees the sales associate. This means what about Terry?

Terry has a real estate license.

COPPA

The Children's Online Privacy Protection Act places restrictions on collection of information from children younger than 13 by means of the internet, including mobile apps.

A state has recently updated its Rules and Regulations for the Real Estate Profession. Assuming this state is like all others, what is true about this publication?

The rules and regulations have the same force and effect as the license law itself.

A broker has established that any listings taken by any sales associate of that real estate brokerage must include compensation based on a 7% commission. No lower commission rate would be acceptable. Can the broker impose this uniform commission requirement, and how?

Yes. The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.

Two real estate professionals were found guilty of conspiring with each other to allocate real estate brokerage markets. A seller suffered a $90,000 loss because of their activities. If the seller brings a civil suit against the two real estate professionals, what can the seller expect to recover?

$270,000 plus attorney's fees and costs

A real estate company has adopted a 100% commission plan. The monthly desk rent required of sales associates is $1,500, payable on the last day of the month. In August, a sales associate closed a transaction that earned a commission of $11,370 and a second transaction that earned a commission of $6,875. The sales associate's additional expenses for the month were $2,170. How much of the total monthly income did the sales associate keep?

$414, 575

On the sale of any property, a sales associate's compensation is based on the total commission paid to the broker. The sales associate receives 30% of the first $2,500, 40% of any amount between $2,500 and $7,500, and 50% of any amount exceeding $7,500. If a property sells for $234,500 and the broker's commission rate is 6.5%, what is the sales associate's total compensation?

$6,621.25

A sales associate's contract with her broker states that she is not an employee. In the past year, less than half her income was commission, with the rest an hourly wage paid by the broker. What would the IRS classify her as?

An employee

Independent Contractor

An employee who usually received a commission, with no withholding for Social Security, income tax, and other purposes and has the freedom to set hours and accomplish goals.

Two sales associates who work for the same firm agree to divide their town into a northern region and a southern region; one sales associates will handle listings in the north, and the other will handle listings in the south. Does this agreement violate antitrust laws?

No.

Broker

One who is licensed to buy, sell, exchange, or lease real property for others for a fee and may operate as a sole proprietorship, partnership, corporation, or limited liability company.

A real estate broker was responsible for a chain of events that resulted in the sale of a client's property. What is this called?

Procuring cause.

After a particularly challenging transaction finally closes, the client gives a sales associate a check for $500 "for all your extra work." Who is the only person the sales associate may receive compensation from?

The broker

UETA

The federal law that makes contracts originated, negotiated, and executed over a combination of computer and cell phone enforceable.