Brokerage Flashcards
To establish non employee status with brokerage a sales associate must
- have a current real estate license
- written contract with broker specifying that he/she will not be acting as an employee for tax purposes
- substantial portion of compensation must be based on sales performance not time
Sherman antitrust Act
Laws prohibiting monopolies and conspiracies/contracts between competitors that unreasonably restrain trade (free flow of goods in completive marketplace)
Price-fixing
competitors agree to fix a price or other terms for product or services rather than allowing competition to be open
Group Boycott
two or more businesses conspire against another business or agree to withhold their patronage to reduce competition
Allocation of customers or markets
Agreement between real estate brokers to divide their markets and refrain from competing with each others’ business
NAR
National Assoication of Realtors
MLS
Multiple listing service
Code of ethics
Written system of standards for ethical conduct
IDX (internet data exchange) policy
Adopted by NAR and allows MLS members to display MLS data, while also respecting the rights of the property owner and broker who represents the property owner to market the property as they wish. Blanket opt out provision provides that those MLS participants interests in keeping their listings from competitors’ websites cannot then display other real estate broker’s listings
Internet advertising
Often governed by internet advertising laws that often contain the following stipulations
- electronic comms by real estate pro must include the pro’s name, office address, broker affiliation
- must disclose license status on every page of website that contains ads
- listing only a sales associate name on ad is not permitted
- ads must be true and current representation of information it contains and not be misleading
Two federal acts governing electronic contracting
Uniform Electronic Transactions Act (UETA)
- rule for entering an enforceable contract via electronic means - goal is remove barriers that would prevent enforceability of electronic contracts
National Commerce Act (E-sign)
- Goal is to make electronic contracts legally enforceable
UETA’s 4 key points
- contract cannot be denied legal effect just because it is electronic
- signature cannot be denied legal effect just because it is electronic
- if state law requires signature on contract, electronic is sufficient
- if state law requires written recordt, electronic is sufficient
Risk management components
Avoid: knowledge of all relevant laws standards, etc
Control: Prepare before ti happens
Transfer: shift risk to another party (insurance)
Retain: Determine that ads of risk are too small to justify cost of response
