Chapter 13: The Brokerage Business Flashcards
Which of the following represents the core activity of real estate brokerage?
Procuring customers for clients and effecting transactions
What is co-brokerage?
Outside brokers acting a sub-agents assist a listing agent in procuring a customer
Which of the following best summarizes the critical skills in real estate brokerage?
Listing, marketing, facilitating transactions, and managing information
Which of the following is a valid distinction between a corporation and a proprietorship?
A corporation has perpetual existence: a proprietorship terminates upon the owner’s death
One similarity between a general partnership and a limited partnership is that…
Both my broker real estate is properly licensed
To real estate companies agree to conjoin the resources for the development and sale of an apartment complex, for which profits will be shared equally. This is an example of…
A joint venture
Which of the following characterizes a real estate franchisee?
A locally-owned brokerage affiliated with a national franchise or for purposes of enhanced image and resources
The term “realtor”…
May only be used by brokers belonging to the National Association of Realtors
Real estate sales agents are legally authorized to…
Represent their employing broker in procuring clients and customers
An important distinction between an independent contractor salesperson (IC) and an employee salesperson is…
The IC is responsible for taxes; the broker does not withhold
An important commitment employing brokers make to salespeople is…
Providing them with all things in the agency
A sales person’s commission rate and structure is established by…
Competitive conditions
Three of the most important skills involved in the listing process are…
Locating clients, pricing property, and making listing presentations
Pricing a property correctly is pivotal to marketing listings, because…
Underpricing a property does not serve the best interests of a client
The objective of the listing presentation is to…
Provide all information necessary for the owner to execute the listing
In marketing an owner’s property, the objective of an agent’s marketing plan is to…
Expose the property to the maximum number of prospects in relation to marketing expenses and efforts
Entertaining offers from a buyer, an agent must be careful to…
Avoid disclosing what price the owner will except
When a property is “under contract”…
The principles have entered into a sale contract and must satisfy any contingencies prior to closing
Conversation is the act of…
Appropriating client or customer deposits for use in the agencies business
Comingling is the practice of…
Mixing escrow funds with the brokers operating funds
Real estate advertising is a regulated activity. One important restriction in placing ads is…
The advertising must not be misleading
The three principal brokerage firms in a market agree to pay sales agents 15% more than any other competitor currently in practice. This is an example of…
Collusion
Two leading agencies jointly agree to raise commissions charging a certain class of clients 8% of the sales price. Which of the following is true?
The brokers have illlegally fixed prices
A corporation would like an agent to sell its country grocery store. Included in the sale are the inventory, equipment, and real property. The agent locates a full-price buyer who does not want to acquire any of the business’s actual or potential liabilities. To do this transaction, the corporation would most likely…
Propose an asset sale
A broker is reviewing the balance sheet of her new listing to sell the business. Three of the entries on the books or licenses, trademarks, and goodwill. These would be examples of…
Intangible assets
In business brokerage, the notion of goodwill is best defined as…
The value or price of the business over and above the value of its other assets
A syndication is…
A group of inactive investors who join with a number of active partners to purchase, manage, and sell properties for a profit
In order to sell interests in a syndication, an agent must…
Obtain a Series 22 securities license
