Unit 2 - Real Estate Brokerage

______ refers to a system of moral principles, rules, and standards of conduct.

Ethics

True or False - Brokerage firms are NOT required to withhold income tax from wages paid to their employees.

False

True or False - It is acceptable for two brokers who are good friends to discuss commissions even if they work for different firms.

False

True or False - It would be acceptable for an urban residential broker to sell farmland if he had reviewed and used the proper forms.

False

True or False - Responsible brokers can require independent contractors to keep specific office hours.

False

______ set their own work hours and pay their own taxes.

Independent contractors

True or False - A broker may continue to contact a lead for up to three months after the initial contact.

True

True or False - A brokerage firm's commission is always negotiable, but the principal or employing broker may set the minimum rate acceptable for the firm.

True

True or False - All contracts belong to the principal broker.

True

True or False - Independent contractors are responsible for their own taxes.

True

True or False - Real estate commissions are always negotiable.

True

True or False - The total real estate sale commission is based off a percentage of the sales price.

True

All listing, buyer, tenant, and landlord representation contracts belong to the ______ .

brokerage firm

Buyers, sellers, landlords, and tenants hire the ______ for representation.

brokerage firm

Brokerage firms may not ______ to boycott certain businesses, establish rates paid to salespersons or broker associates, or assign specific territories or price range.

collude

If brokerage firms ______ to boycott a certain business, establish a fixed commission rate, or assign territories in a given market area, they have violated the ______ .

collude Sherman Antitrust Act

Real estate professionals are expected to know when they are not ______ to perform certain tasks, such as taking a listing that is outside of their area of ______ .

competent experience & expertise

A brokerage firm hiring licensees as ______ must withhold taxes from the employee's pay.

employees

Real estate professionals must know when to recommend that the parties they are working with seek legal advice so they may avoid the ______ .

illegal practice of law

Commissions charged by brokerage firms for their services are set by ______ .

negotiation

The employing broker (principal broker) is responsible for creating a written ______ .

office policy

Brokerage firms must create a written ______ and provide training and ______ for all licensees and employees associated with the firm

office policy supervision

Clients are represented by a brokerage firm that hires ______ to represent the brokerage firm in assisting its clients

salespersons / broker associates