Chapter 1: The Salesperson (Mobility is Key) Flashcards
The California Department of Real Estate, which governs all real estate licensing and enforces the California Real Estate Commissioner’s Regulations.
DRE
Calling prospective clients who are not known to the salesperson.
Cold calls
The illegal mixing of the client’s and broker’s funds.
Commingling
What percentage that goes to the salesperson and what percentage goes to the broker.
Commission split
The illegal practice of misappropriation and using the client’s money.
Conversion
Brokers (listing and selling) who agree to split commissions.
Cooperating Brokers
A form of ownership considered a legal “artificial being” conducting business under its California chartered name.
Corporation
The unique name that identifies a website.
Domain name
When a broker represents more than one party (i.e. both buyer and seller).
Dual agency
This person works under the direct control and supervision of the employer.
Employee
Most brokers carry this professional liability insurance to protect themselves and their agents against catastrophic lawsuits.
Errors and Omission Insurance
Listings that did not sell within the contract period.
Expired listings
Brokers owe a duty of highest care and confidentiality to their principals (clients), whose interest they promote even at the cost of some greater benefit to themselves.
Fiduciary relationship
A group of households within a geographical area with whom the agent stays in touch on a regular basis.
Geographical farm
The goal here is to create a healthy work environment, conserve energy, and reduce pollution.
Green office
This person sells results rather than time, and his or her physical conduct is not subject to the control of another.
Independent contractor
This guide is found in many brokerage offices to help handle recurring situations and is designed to give rules and policies for the staff in their relationships inside and outside the office sphere.
Office policy manual
A commission system where the broker pays all of the commission to the salesperson but charges the salesperson a desk fee of $750 to $1000 per month.
100% commission
An association of two or more persons as co-owners of a business for profit.
Partnership
A website or publication, similar to a phone book, where numbers are listed by address rather than name.
Reverse directory
An inventory of items, or aids, that you may need in your daily real estate-related activities.
Sales kit
An office run by one owner solely responsible for all decisions.
Sole proprietorship
A list of prospects that an agent regularly contacts in the hope they will become clients.
Sphere of influence
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.
Straight commission
Owners of a corporation each own shares of this as evidence of ownership.
Stock
Hands on experience and mentoring meant to improve your performance or help you attain a required level of skill.
Training
Includes all property contracts, documents, and disclosures signed or initialed by the principals (broker must keep for at least three years).
Transaction file
Calls made to people you already know and which are usually more productive.
Warm calls
Catalog of contract forms widely used in California and available for free to CAR members.
zipForms®
How many brokers may a salesperson work for at one time?
a) Three
b) Two
c) One
d) Unlimited
c) One
(Multiple Choice) Which of the following is a way to find a sponsoring broker?
a) Observe
b) Check online sites and newspaper ads in the areas you plan to service
c) Call the local Association of REALTORS®
d) All the above
d) All the above
What is the best example of a “sphere of influence”?
a) Central location of a telecommunication company
b) People living outside of an agent’s city
c) Friends, family, neighbors, and business associates you know and contact regularly
d) Both b and c
c) Friends, family, neighbors, and business associates you know and contact regularly
A salesperson who is actively engaged in professional real estate activities:
a) must have his or her own office.
b) must be employed by a licensed real estate broker.
c) must pay compensation directly to cooperating agents.
d) none of the above.
b) must be employed by a licensed real estate broker.
A broker is required to have:
a) a trust account.
b) an accounting system (disbursement ledger).
c) an escrow company.
d) $300 of the broker’s personal funds in the trust account.
b) an accounting system (disbursement ledger).
The listing agreement can best be described as a(n):
a) dual agency.
b) deposit receipt.
c) employment contract.
d) offer to buy.
c) employment contract.
What is Broker’s Errors and Omission Insurance?
a) Insurance to protect the borrower against foreclosure
b) Insurance to protect the seller against buyers’ claims
c) Insurance to protect the agent and broker against buyers’ and sellers’ claims
d) Buyers’ protection against earthquake damages
c) Insurance to protect the agent and broker against buyers’ and sellers’ claims
In order to open his or her own office, a real estate agent must:
a) obtain a broker’s license.
b) secure necessary capital.
c) decide on a location.
d) all of the above.
d) all of the above.
What are cold calls?
a) Contacting clients late at night
b) Contacting people the agent does not know
c) Contacting people with whom the agent has done business
d) Returning calls for another agent
b) Contacting people the agent does not know
All deposits from clients must be placed in a broker’s trust fund account, given to the principal, or placed in a neutral escrow depository:
a) within one week.
b) within 10 days.
c) minus a small fee.
d) within 3 business days from acceptance of offer.
d) within 3 business days from acceptance of offer.
