AZ Real Estate Unit 8; Real Estate Brokerage

The sale of a single-family house produced a total commission of $45,825. The sales associate who was responsible for bringing the buyer to the transaction has a 60/40 commission split arrangement with the employing broker, with the sales associate receiving the 60 percent. If the total commission was split between the listing and selling firms, what is the commission that the buyer's sales associate will receive?

$13,747.5

Selling price = $80,000 Commission rate = 6% Commission = ? What is commission

$4,800 80k x 6%

Commission Splits

Commission Splits

The National Association of REALTORS® has adopted a code of ethics for

Its member

What are some Antitrust violations

Limiting competition Price fixing Group boycotting Allocation of market Tie-in agreements

The Do Not Call Improvement Act of 2007 states that real estate professionals may call consumers with whom they have an established business relationship for up to how many months after the consumer's last purchase, delivery, or payment?

18 months

Selling price = $80,000 Commission rate = ? Commission = $4,800

6% 4800 / 80,000

Disclaimers

A statement indicating no legal responsibility no information

Code of Ethics

A written system of standards for ethical conduct

Electronic Signatures in Global and national Commerce Act (E-Sign)

Act that makes all contracts and records legally enforceable regardless how they were created

National Association of Real Estate Brokers (NAREB) A) is part of the National Association of REALTORS®. B) members are known as REALTORS®. C) no longer concerns itself with equal housing opportunity. D) members are known as Realtists.

Members are known as Realtists.

The Counselors of Real Estate (CRE), Commercial Investment Real Estate Institute (CIREI), and Institute of Real Estate Management (IREM) are affiliated institutes of

National Association of Realtors (NAR)

Procuring cause

The actions by a broker which result in the owner being able to make a sale

A real estate company has adopted a 100% commission plan. The monthly desk rent required of sales associates is $1,500. 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?

$14,575

You are an agent working for a broker and sell $300,000 house with 5% commission. Determine how much gets splits up between both brokers and both agents all using a 60/40 split

$4,500 per agent $3,000 per broker $300k x 5% (commission rate) $15k / 2 (seller and buyer brokers) $7.5k x 60% = $4.5k $7.5k x 40% = $3k

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

True

A real estate broker's compensation is specified in the contract with the client

True

ARELLO promotes state licensing standards

True

Laws cannot guarantee an ethical or moral marketplace

True

Many trade organizations serve the real estate business. The largest is the National Association of REALTORS® (NAR)

True

Real estate license laws are intended to protect the public

True

Commission

Usually a percentage of the selling price of property

Antitrust Laws

laws that prevent monopolies and promote competition and fairness

Electronic Contracting

A process of integrating information electronically between clients, lender, and title and closing agents.

A real estate assistant would never be required to have a real estate license

False

A sales associate can carry out all the same activities as a real estate broker

False

A sales associate's compensation is determined by the client

False

If a state licensing authority's regulations conflict with statutory law, the regulations will prevail

False

Real estate license laws do not include disciplinary systems

False

States' licensing rules and regulations do NOT have the same force and effect as statutory law

False

The Institute of Real Estate Management (IREM) is affiliated with the National Association of Real Estate Brokers (NAREB)

False

What are the four keys to the UETA

1) A contract cannot be denied its legal effect just because an electronic record was used 2) A record or signature cannot be denied its legal effect just because it is in an electronic format 3) If a state's law requires a signature on a contract, an electronic signature is sufficient 4) If a state's law requires a written record, an electronic record is sufficient.

National Do Not Call Registry

A list of people not available to be contacted in order to limit telemarketing calls

Multiple Listing Service (MLS)

A marketing organization composed of member real estate professionals who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most multiple listing services accept exclusive right-to-sell or exclusive agency listings from their member real estate professionals.

A broker has established the following office policy: "All listings taken by any sales associate of this real estate brokerage must include compensation based on a 7% commission. No lower commission rate is acceptable." If the broker attempts to impose this uniform commission requirement, which statement is TRUE? The broker must present the uniform commission policy to the local professional association for approval. B) A homeowner may sue the broker for violating the antitrust law's prohibition against price-fixing. C) The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm. D) The sales associates of the brokerage will not be bound by the requirement and may negotiate any commission rate they choose.

C

A recent important change to real estate brokerage practice is

Digital communication in all its forms

Boycott

Individuals or businesses withhold buying goods from a business to protest or reduce competition

Independent Contractor

One who operates with more independence than an employee. Responsible for paying own Income and Social Security tax

Ready, Willing, and Able buyer

Person who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction

Internet Data Exchange (IDX) Policy

Policy that allows all multiple listing service (MLS) members to restrict internet access to MLS property listings

Uniform Electronic Transactions Act (UETA)

Sets forth rules for entering into an enforceable contract using electronic means

Real Estate Broker

Someone licensed to buy, sell, exchange, or lease real estate

Employee

Someone who works for an employer. Not responsible for paying Income and Social Security tax

Managing Broker

Supervisor Broker who is held responsible for actions of RE Licensee's on behalf of brokerage

Brokerage

The bringing together of parties interested in making a real estate transaction

Minimum Levels of Services

The minimum amount of services a brokerage must provide 1) Accept delivery and present offers/counteroffers to client 2) Assist client in developing, negotiating, and presenting offers 3) answer clients questions about offers, counteroffers, and contingencies

Price-fixing

an agreement among different firms to charge one price for the same good

In order for a brokerage to sign an licensee as an independent contractor, what must the brokerage do

1) Licensee must have current RE license 2) Licensee must have written contract with broker that specifies licensee will not be treated as employee for tax purposes 3) Substantial portion of licensee's income must be based on sales production and not on number of hours worked

All 50 states regulate the activities of real estate professionals

True