Ch 3 Section 2 The Real Estate Brokerage Business Flashcards
Brokerage
The aspect of the real business where a licensed agent brings together 2 or more persons to complete a real estate transaction
Compensation
Paid to a licensed broker for performing any of the 6 services of real estate
Monopolistic practices
Order to preserve and maintain competition among business
Competition
Interpreted by most courts as that economic condition in which prices are determined by market forces without interference from private concerns
At the federal level the ______________ is enforced by the Federal Trade Commission
Sherman Antitrust Law
Boycotting
When 2 or more firms conspire to cut out or not use another firm.
Allocate
Illegal for 2 or more firms to agree to divide
Tie -in
requirement that the client contract for a different service at the same time
CAN- SPAM Act
sets rules for commercial email, establishes requirements for commercial messages, gives recipients the right to stop unsolicited emails, and spells out tough penalties for violations $16,000
CAN SPAM main requirements
- Don’t use misleading or false header information
- Don’t use misleading or false header information
- Identify the message as an ad
- Tell recipients where you’re located
- Tell recipients how to opt- out of receiving future emails
- Honor opt- out requests promptly
- Monitor what others are doing on your behalf
this applies to any plan, program, or campaign to sell goods or services through interstate phone calls
Do Not Call Registry
Who are required to search the registry at least once every 31 days and remove from their call list all consumers who have registered their phone numbers with the service ?
Telemarketers and Sellers
Violators can be fined up to how much per incidence (do not call list)
$16,000
The law allows a call to be placed to a former client for up to how many months after the last transaction?
18 months
independent contractor
one who is hired or retained to do a particular job with little or no supervision as to how the work is to be accomplished
Employee
one who works under the direct supervision of an employer
Real estate licensees who operate as independent contractors must comply with the following requirements:
- Be licensed as real estate agent
- have a written contract specifying that the licensee will not be treated as an employee (licensee may not receive anything that might be considered an employee benefit and cannot have fixed office hours)
- be paid for services on the basis of sales production rather than the number of hours worked
a personal service contract and therefore may not be assigned
a listing contract
Elements of a typical listing contract :
- Date la of contract
- Names and addresses of the parties
- Description of the property ( in some states this must be the legal description, in others an address will suffice)
- information about the property
- selling price and terms
- commission agreement and protection clause
- required disclosures of agency relationships
- notification of disclosures required of the seller concerning the property
- brokers authority to place a “For Sale” sign on the property and advertise the property
Broker as agent
empowered to act for and in the name of his client within the scope of his authority
Licensees advise sellers by comparing the sellers property to similar properties that have sold recently
Competitive market analysis or CMA
Listing protection clause
states that the broker is owed a commission for a specified time period after expiration of the listing if the broker can prove he was the procuring cause to sale
3 classifications of listing contract
- Open listing
- exclusive listing
- exclusive right to sell
open listing contract
an oral or written listing agreement given to any number of brokers
