unit 9 exam

A real estate sales associate is an individual who is licensed to perform real estate activities on behalf of a licensed broker.

T

Price-fixing, group boycotting, and allocation of markets are three examples of antitrust violations.

T

Real estate license laws set up a disciplinary system to enforce the acceptable standards of conduct and practice for licensees.

T

The Internal Revenue Service has established criteria for determining whether a sales associate is classified as an employee or a nonemployee for income tax purposes.

T

The amount of a broker's compensation is always negotiable.

T

Under the Sherman Antitrust Act, people who fix prices or allocate markets may be subject to a maximum $1 million fine and 10 years in prison.

T

Although state laws vary regarding internet advertising, which of these is a typical element of state policy or law?

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

If present at the time the transaction closes, a broker is considered to be the procuring cause of a sale.

False. A broker is considered the procuring cause of a sale if the broker started an uninterrupted chain of events that resulted in the sale.

A real estate sales associate is licensed to buy, sell, exchange, or lease real property for others, and to charge a fee for those services.

False. A real estate broker is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for those services.

Only a few states regulate the activities of real estate brokers and salespeople.

False. All 50 states, the District of Columbia, and all Canadian provinces license and regulate the activities of real estate brokers and their sales associates.

The practice of illegally setting standard prices for products or services is called a tie-in agreement.

False. Price-fixing is the practice of competitors setting prices for products or services. A tie-in agreement is an agreement to sell one product only if the buyer also purchases another product.

What is the compensation plan called if a salesperson's commission split increases depending on whether the salesperson achieves higher production goals?

Graduated commission split

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

The seller decided not to sell.

Why have real estate license laws been put into effect?

To protect the public and establish standards of professionalism

What is the practice called when a consumer selects specific services to use and only pays the real estate professional for those services?

Unbundling services

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

Internet Data Exchange.

What is the main value of a multiple listing service (MLS) for sellers?

It exposes the property to a greater number of prospective buyers.

In real estate, a sales associate is always

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

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

a tie-in agreement.

All of these are violations of federal antitrust laws EXCEPT

commission splitting.

An important purpose of the E-Sign Act is to

give contracts created using email the same legal standing as those on paper.

The primary purpose of the Uniform Electronic Transactions Act (UETA) is to

remove barriers in electronic commerce that would otherwise prevent enforceability of contracts.

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

responding to emails within one week.

All of these are requirements for independent contractor status used by the Internal Revenue Service EXCEPT

specific hours stated in a written agreement.

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

standard community rate.

After license laws are enacted by the legislature, who is responsible for adopting administrative regulations?

Licensing authority (division, commission, etc.)

A qualified buyer makes a written offer on a property on March 6 by filling out and signing a sales agreement. Later that day, the seller accepts and signs the agreement, keeping one copy. The broker gives a copy of the signed agreement to the buyer on March 8. The seller's deed is delivered on May 1. The deed is recorded on May 7, and the buyer takes possession on May 15. When is the broker's commission payable if this is a usual transaction?

May 1

A broker who owns a realty agency does not permit his salespeople to charge less than an 8% commission in any transaction. After reading a newspaper article about this realty agency's policies, the broker of another realty agency decides to also adopt the 8% minimum. Based on these facts, which of these statements is TRUE?

Neither broker has committed an antitrust violation.

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 consumer's last purchase?

18

A real estate broker had a listing agreement with a seller that specified a 6% commission. The broker showed the home to a prospective buyer. The next day, the buyer called the seller directly and offered to buy the house for 5% less than the asking price. The seller agreed to the price and informed the broker in writing that no further brokerage services would be required. The sale went to closing six weeks later. Based on these facts, which of these statements is TRUE?

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