Chapter 1 Flashcards
The real estate marketplace is a/an …….. marketplace?
a. Efficient
b. Even
c. Stratified
D. Stagnate
C. Stratified
Commissions are always negotiable?
a. True
b. Fals
A. True
Most new home buyers purchase using cash…..?
A. True
B. False
B. False
Which of the following carries workers compensation insurance…….?
A. real estate salespersons
B. buyers
C. Real estate brokers
D. Sellers
C. Real Estate Brokers
Broker commissions are typically stated as a ….?
A. Flat fee
B. Percentage of the assessed value
C. Percentage of the listing price
D. Percentage of the sale price
D. Percentage of the sale price.
If the overall commission in a transaction is 6%, and the seller/buyer broker commission split is 50/50, what would the buyer broker’s commission be for the transaction ….?
A. 1.5 %
B. 2%
C. 3%
D. 6%
C. 3%
The overall commission for a transaction is 6%. The commission split between the seller’s and buyer’s broker is 50/50. the commission split between the seller’s broker and their real estate agent in the transaction is also 50/50. What would the seller’s broker’s real estate agent commission be for the transaction…?
A. 1.5%
B. 2%
C. 3%
D. 6%
A. 1.5%
If a property sells for a $500,000 and the seller’s broker commission is 6% how much will the broker earn from the transaction…?
B. $30,000
Which of the following should be considered when choosing a broker…?
A. Location
B. Commission Split
C. Training
D. All of the Above
D. All the Above
According to the IRS, real estate agents are …..?
A. Principals
B. Clients
C. Independent Contractors
D. Employees
C. Independent Contractors
Since a real estate agent operates as an independent contractor, the agent’s sponsoring broker is NOT required to withhold any income taxes….?
A. True
B. False
A. True
As a new licensee, what is the most important aspect in choosing a broker…?
A. Advertising
B. Number of agents in the office
C. Desk fee
D. Training
D.
An agent’s compensation for performing the duties of an agency is known as a ….?
A. Salary
B. Commission
C. Referral fee
D. Kickback
B. Commision
In addition to commission splits, brokers may make money from which of the following….?
A. Subscription fees
B. Desk Fees
C. Processing fess
D. Insurance fees
B. Desk Fees
New agents typically work better in an office environment….?
A. True
B. False
A. True
Real estate is cyclical….?
A. True
B. False
A. True
Real estate licensees are required to do…. in order to renew their license?
A. Prospecting
B. Sales training
C. Continuing education
D. A minimum number of closings
C. Continuing education
Which of the following issues a real estate license in California….?
A. California Association of Realtors
B. California Real Estate Commission
C. National Association of Realtors
D. California Bureau of Real Estate
D. California Bureau of Real Estate
High performing agents may demand a higher commission split with their sponsoring broker….?
A. True
B. False
A. True
In order to use the title Realtor, a licensee mush be a member of the …..?
A. California Division of Brokers
B. National Association of Realtors
C. National Institute of Realtors
D. California Bureau of Real Estate
D. California Bureau of Real Estate
New licensees are required to become members of the NAR….?
A. True
B. False
B. False
The California Bureau of Real Estate has the power to do which of the following…?
A. Issue a license
B. Suspend a license
C. Revoke a license
D. All of the above
D. All of the above
This refers to a person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another….?
A. Employee
B. Partner
C. Client
D. Indpendent contractor
D. Independent Contractor
A real estate salesperson must work under a sponsoring broker……?
A. True
B. False
A. True
A real estate salesperson can sell which of the following real property types……?
A. Luxury homes
B. Time-shares
C. Condominiums
D. All of the above
D. All of the above
In a buyer’s market, there is an excess of inventory…?
A. True
B, False
A. True
Any home that is not newly constructed is considered a…..?
A. Secondary home
B. Depreciated home
C. resale home
D. used home
C. Resale home
Most home purchases are now started online…?
A. True
B. False
A. True
A seller who must sell is known as a ……?
A. Reluctant seller
B. Motivated Seller
C. Patient Seller
D. Opportunistic seller
B. Motivated Seller
What is Commission?
An agent’s compensation for performing the duties of the agency; in real estate practice, a percentage of the selling price of property, percentage of rentals, etc. A fee for services.
What is an independent Contractor?
A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another.
