Chapter 05

Question 1

ARELLO

Answer 1

The association of real estate license law officials

Question 2

Purpose of licensing laws

Answer 2

• Establish basic requirements for obtaining and continuing license
• Defining which activities require licensing
• Describing standards
• Enforcing standards through a disciplinary system

Question 3

Brokerage

Answer 3

A person licensed to buy, sell, exchange, or lease real property for others and charge a fee

Question 4

Real Estate Salesperson

Answer 4

Any person licensed to perform real estate activities on behalf of a licensed broker

Broker is responsible for all actions in a transaction

Question 5

Procuring clause

Answer 5

Broker must have started or caused a chain of events that resulted in the sale

Question 6

Broker compensation

Answer 6

Commission, flat fee, or hourly rate

Agreed to by broker and principal

Question 7

Real estate salesperson compensation

Answer 7

• May be a percentage of brokers commission
• May be a flat rate
• May be 100% of commission
• Commission must be payed to the broker, then the broker pays the salesperson

Question 8

Minimum level of service

Answer 8

A state regulation that requires certain service be conducted by a sales person

Question 9

Independent contractor VRS employee

Answer 9

For independent contractor:

• Broker doesn’t control activities such as hours at work, dress code, required meetings
• Broker doesn’t withhold taxes or ss
• Broker doesn’t ofer befits

Question 10

Independent contractor requirements

Answer 10

• Must have a license
• Must have contract stating they are not an employee
• At least 90% of income must be based on sales production, not hours

Question 11

Antitrust laws (Sherman antitrust act)

Answer 11

• price fixing
• group boycotting
• Allocation of customers or markets
• tie in agreements

Question 12

Antitrust penalties

Answer 12

• 1 million in fines for individual, 100 million for cooperation
• 10 years in prison
• Three times damages of plaintive
• legal fees of plaintive

Question 13

Commission is earned when

Answer 13

• A completed sales contract has been execute by buyer
• The contract has been accepted by seller
• Copies of contract are in possession of all parties

Question 14

National do not call registry

Answer 14

A list of people who don’t want phone solicitation. Managed by FTC

• Agents can call consumers with whom they have had business with for up to 18 months if on list or not
• Agents can call someone for up to 3 months after someone makes an inquiry

Question 15

Uniform electronic Transaction (UETA)

Answer 15

• Contract cannot be denied because electronic records were or because it is electronic format
• if state requires signature, electronic signature is sufficient
• if state requires written record, electronic record is sufficient

Question 16

Electronic signature in Globke and national commerce act ( E-sign)

Answer 16

Makes electronic contracts and signatures legally in forcible