Real Estate Brokerage

Do-not-call registries and laws such as the Telephone Consumer Protection Act, Junk Fax Prevention Act, and rules of the Federal communications Commission dictate A) how many direct mail solicitations can be sent to a single address. B) how often a business person can contact a customer. C) prohibited communications. D) communications that are permitted.

C) prohibited communications.

Many states have modified the traditional terms broker and salesperson to stress that all licensees must be knowledgeable of and comply with the law. The person who performs licensed activities under the authority of a broker is frequently called a A) junior broker. B) junior licensee. C) sales associate. D) managing broker.

C) sales associate.

An independent contractor and a broker can agree upon which of the following? A) Compensation the contractor would receive B) Sales meetings the contractor would need to attend C) Number of hours the contractor would have to work D) Work schedule the contractor would have to follow

A) Compensation the contractor would receive

Sales associate A and sales associate B work for the same firm. They agree to divide their region into an eastern half and a western half; sales associate A will handle listings in the east, and sales associate B will handle listings in the west. Which statement is TRUE? A) The agreement does not violate antitrust laws. B) The two sales associates are guilty of a group boycott with regard to other sales associates in their firm. C) The agreement constitutes illegal price-fixing. D) The two sales associates have violated the Sherman Antitrust Act and are liable for treble damages.

A) The agreement does not violate antitrust laws.

The use of electronic signatures makes routine paperwork more efficient and has been encouraged by adoption by most states of the A) Uniform Electronic Transactions Act. B) Real Estate Transactions Act. C) real estate licensing laws. D) Uniform Brokerage Transactions Act.

A) Uniform Electronic Transactions Act.

The real estate industry, including all licensed real estate brokers and sales associates, is subject to A) antitrust laws. B) more regulations for smaller firms. C) fair competition laws. D) social security taxation.

A) antitrust laws.

Administrative regulations that administer real estate license laws A) have the same force and effect as statutory law. B) can only be changed by the legislature. C) are optional for licensees, though their adherence is always recommended. D) can be modified, if necessary, to insure compliance by large real estate firms.

A) have the same force and effect as statutory law.

Commissions are negotiable A) in all cases. B) when using an exclusive listing agreement, but not an open listing. C) unless representing a buyer, when the listing broker offers a co-op. D) unless the exclusive agency listing is used, because the seller can compete with the broker.

A) in all cases.

A licensed real estate salesperson has a written contract with his broker specifying that he will not be treated as an employee. The salesperson's entire income is from sales commissions rather than an hourly wage. Based on these facts, the salesperson is considered a(n) A) independent contractor. B) employee. C) real estate assistant. D) subagent.

A) independent contractor.

Which law has a feature that commercial email messages must include a means by which the recipient can unsubscribe? A) COPPA B) CAN-SPAM Act C) TCPA D) FCC Act

B) CAN-SPAM Act

Under the Sherman Antitrust Act, the penalty for a person found guilty of fixing prices or allocating markets is A) a maximum of $100 million. B) a maximum $1 million fine and 10 years in prison. C) $50,000 per transaction up to a maximum of $500,000. D) a minimum of $100,000.

B) a maximum $1 million fine and 10 years in prison.

A recent important change to real estate brokerage practice is A) the use of electronic signatures. B) digital communication in all its forms. C) fax transmissions. D) use of personal assistants.

B) digital communication in all its forms.

An owner tells a group of brokers, "I will pay a commission to whoever brings me a buyer." In this case, the broker who is going to get paid must be the A) exclusive agent. B) procuring cause. C) facilitator. D) dual agent.

B) procuring cause.

To be entitled to receive compensation from a real estate sales transaction, an individual must be all of the following EXCEPT A) the procuring cause of the sale. B) unrelated to either the buyer or the seller. C) a licensed real estate broker. D) employed by the buyer or the seller under a valid contract.

B) unrelated to either the buyer or the seller.

A real estate sales associate who is an independent contractor, as opposed to an employee, will have a substantial portion of the individual's income A) based on the number of hours worked. B) determine eligibility for health insurance and workers' compensation. C) based on sales production or other output. D) subject to federal tax and withheld by the employer.

C) based on sales production or other output.

In order for a broker to be paid on an open listing, the broker must A) put the property in MLS and offer other brokers a co-op. B) notify all other listing brokers if they have an offer. C) be the procuring cause of the sale. D) split the commission with any other broker that listed the property.

C) be the procuring cause of the sale.

A real estate sales associate has a license personal assistant who usually must be A) hired by the sales associate independently and not under the employ of the brokerage. B) paid by the sales associate, who is then reimbursed by the employing broker. C) paid by the sales associate's employing broker. D) subject to all federal requirements applicable to an employee.

C) paid by the sales associate's employing broker.

Assuming that the listing broker and selling broker split their commission from a transaction equally, what was the sales price of the property if the commission rate was 6.5% and the listing broker received $12,593.50? A) $256,200 B) $193,746 C) $139,900 D) $387,492

D) $387,492

All of the following are prohibited under the antitrust laws EXCEPT A) competing property management companies agreeing to standardized management fees. B) real estate companies agreeing not to cooperate with a broker because of the fees that the broker charges. C) competing brokers allocating markets based on the value of homes. D) a broker setting a company commission schedule.

D) a broker setting a company commission schedule.

Real estate license laws exist primarily to protect A) government agencies. B) real estate firms. C) licensees from unlicensed individuals. D) consumers.

D) consumers.

Antitrust laws do NOT prohibit real estate A) brokers allocating markets based on the value of homes. B) companies agreeing on fees charged to sellers. C) companies allocating markets based on the location of commercial buildings. D) salespersons within the same office agreeing on a standard commission rate.

D) salespersons within the same office agreeing on a standard commission rate.