Chapter 1 Flashcards
DRE
The California dept. of real estate, which governs all real estate licensing and enforces the California real estate commissioners regulation
cold calls
calling prospective clients who are not known to the salesperson
commingling
the illegal mixing of client and broker funds
commission split
what percentage goes to the salesperson and what percent goes to the broker
conversion
the illegal practice of misappropriation and using the clients money
cooperating broker
brokers (listing and selling) who agree to split commission
corporation
a form of ownership considered a legal “artificial being” conducting business under its California chartered name
domain name
the unique name that identifies a website
dual agency
when a broker represents more than one party (both buyer and seller).
employees
this person works under the direct control and supervision of the employer
errors and omission insurance
most brokers carry this professional liability insurance to protect themselves and their agents against lawsuits
fiduciary relationship
brokers owe a duty of the highest care and confidentiality to their principals (clients) whose interest they promote even at the cost of some greater benefits to themselves
geographical farm
a group of households within a geographical area with whom the agent stays in touch with on a regular basis
green office
the goal here is to create a healthy work environment, conserve energy, and reduce pollution
independent contractor
this person sells results rather than time, and his or her physical conduct is not subject to the control of others
office policy manual
guide found in most brokerage offices to help handle recurring situations and is designed to give rules and policies for the staff
100% commission
a commission system where the broker pays all of the commission but charges the salesperson a desk fee of $750 to $1000 a month
partnership
an association of two or more persons as co-owners of a business for profit
reverse directory
a website or publication where numbers are listed by address rather than name
sales kit
an inventory of items, or aids, that you may need in your daily real estate activities
sole proprietorship
an office run by one owner solely responsible for all decisions
sphere of influence
a list of prospects that an agent regularly contacts in the hope they will become clients
straight commission
the broker usually does not charge a desk fee, but pays the agent based on a set percentage of the selling price at the close of escrow
stock
owners of a corporation each own shares of this as evidence of ownership
training
hands on experience to improve performance or skill
transaction file
includes all property contracts documents, and disclosures signed or initialed by the principals.
warm calls
calls made to people you know and are usually more productive
zipforms
catalog of contract forms widely used in California and available for free to CAR members
