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
