Unit 8 Quiz

A broker would have the right to dictate which f the following to an independent contractor?

Conduct in compliance with statutory law and regulations

A real estate company has adopted a 100% commission plan. The monthly desk rent required of sales associates is $1,500, payable on the last day of the month. 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

A sales associate took a listing on a house that sold for $329,985. The commission rate was 5%. A sales associate employed by another broker found the buyer. The seller's broker received 60% of the commission on the sale; the buyer's broker received received 40%. If the seller's broker ket 30% and paid the seller's sales associate the remainder, how much did the seller's sales associate earn on this sale?

$6,929.68

A broker was accused of violating antitrust laws. Of the following, the broker was MOST likely accused of

price-fixing

A real estate broker was responsible for a chain of events that resulted in the sale of a client's property. This is called

procuring cause

When acting as an employee rather than an independent contractor, a sales associate may be obligated to

work set hours

Terry is the personal assistant of a real estate sales associate. Terry must be paid by the broker who employs the sales associate. This means that

Terry has a real estate license

Two sales associate's who work for the same firm agree to divide their town into northern region and souther region; one sales associate will handle listings in the north, and the other will handle listing in the south. What is TRUE?

The agreement does not violate antitrust laws

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, what is TRUE?

The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm

The federal law that makes contracts originated, negotiated, and executed over a combination of computer and cell phone enforceable is

UETA

A real estate sales associate, classified by the IRS as independent contractor, receives

a negotiated share of commission on transactions

A REALTOR is BEST described as an individual who is

a real estate licensee and a member of the National Association of REALTORS (NAR)

Two real estate professionals were found guilty of conspiring with each other to allocate real estate brokerage markets. A seller suffered an estimated $90,000 loss because of their activities. If the seller brings a civil suit against the two real estate professionals, what can the seller expect to recover?

$270,000 plus attorney's fees and costs

On the sale of the property, a sales associate's compensation is based on the total commission paid to the broker. The sales associate receives 30% of the first $2,500, 40% of the next amount between $2,500 and $7,500 and 50% of any remaining amount exceeding $7,500. If a property sells for $234,500 and the broker's commission rate is 6.5%, what is the sales associate's total compensation?

$6,621.25

A state has recently updated its Rules and Regulations for the Real Estate Profession. What is TRUE?

The rules and regulations have the same force and effect as the license law itself

Which statement BEST explains this sentence: "To recover a commission for brokerage services, a broker must BE EMPLOYED by a client"?

The client must make an express or implied agreement to pay commission to the broker

A sales associate's contract with her broker states that she is not an employee. In the past year, less than half her income was commission, with the rest an hourly wage paid by the broker. The IRS would classify her as

an employee

Sales associates who are paid in a lump sum and wha are personally responsible for paying their own taxes are probably treated for tax purposes as

independent contractors

The amount of commission paid to sales associate is determined by

mutual agreement with the broker

A sales associate wants to be classified by the IRS as a qualified real estate agent -- the equivalent of holding independent contractor status for tax purposes. The sales associate must meet all of the following requirements EXCEPT

perform all work unsupervised by the managing broker