Chapter 15 - Real Estate Brokerage Flashcards
Licensees who are paid in a lump sum and who are personally responsible for paying their own taxes are probably …
-independent contractors
A licensed real estate salesperson entered a written contract with a broker, specifying that the salesperson is not an employee. In the past year, just less than half of the salesperson’s income from real estate transactions came from sales commissions. The remainder was based on an hourly wage paid by the broker. Using these facts, it is likely that the IRS would classify the salesperson as which of the following for federal income tax purposes?
- Independent contractor
- Employee
- Part-time real estate salesperson
- Self-Employed
-Employee
Two licensees were found guilty of conspiring with each other to allocate real estate brokerage markets. A women suffered a $90,000 loss because of their activities. If the women brings a civil suit against the two licensees, what can she expect to recover?
$270,000 plus attorney’s fees and costs (3 times as much as she lost)
Two salespersons who work for the same brokerage firm agree to divide their town into a northern region and a southern region. One salesperson will handle listings in the northern region and the other will handle listings in the southern region. Which statement is TRUE regarding this agreement?
- The two salesperson have violated the Sherman Anti-Trust Act and are liable for triple damages
- The two salespersons are guilty of group boycotting with regard to other salespersons in their office.
- The agreement constitutes illegal price-fixing
- The agreement does not violate anti-trust laws
-The agreement does not violate anti-trust laws
Any comment about a new listing on an internet social site …
-can become permanent record
After a particularly challenging transaction finally closes, the client gives the listing salesperson a check for $500 “for all your extra work”. Which statement is TRUE?
- While such compensation is irregular, it is appropriate for the salesperson to accept the check.
- The salesperson should accept the check and deposit it immediately in a special escrow account.
- The salesperson may receive compensation only from the broker.
- The salesperson’s broker is entitled to 80% of the check.
-The salesperson may receive compensation only from the broker.
A broker has established the following office policy: “All listings taken by any salesperson associated with this real estate brokerage must include compensation based on a 7% commission. No lower compensation rate is acceptable”. If the broker attempts to impose this uniform commission requirement, which statement is TRUE?
- A homeowner may sue the broker for violating the antitrust law’s prohibition against price-fixing
- The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.
- The salespersons associated with the brokerage will not be bound by the requirement and may negotiate any commission rate they choose.
- The broker must present the uniform commission policy to the local professional association for approval.
-The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.
In general, under the Junk Fax Prevention Act of 2005, without express written consent or without an established business relationship with the recipient, real estate licensees …
-may not legally send out an unsolicited commercial fax message
In Pennsylvania, a salesperson may advertise a property for sale on the internet only if the salesperson …
-uses the employing broker’s name in the advertisement.
A broker was accused of violating antitrust laws. Of the following, the broker was MOST likely accused of
-price-fixing
A real estate salesperson, classified by the IRS as an independent contractor, receives
-negotiated commissions on transactions
As a general agent of the broker, a salesperson may …
-carry out real estate activities in the name of the broker
With regard to commission rates, a broker may …
-impose a minimum rate in the office.
Pennsylvania’s real estate licensee law considers the broker’s affiliated licensees, whether associate broker or salesperson as
-an employee of the broker
The real estate website should include…
a disclaimer that this site is for information only.
Violations of federal antitrust laws committed by individuals can result in …
-a fine up to 1 Million dollars for individuals
100 million for corporation
After the last transaction, real estate licensees may call consumers with whom they have an established business relationship for up to …
-18 months
Which of the following is required under the CAN-SPAM Act?
- If not pornographic, misleading subject lines are permitted
- Routing information may be hidden
- Commercial emails may appear to be personal messages
- Email recipients must have an opt-out method.
-Email recipients must have an opt-out method.
-refrain from controlling how the salespersons conducts business activities
For a salesperson to be viewed as an independent contractor, federal law requires
-a written employment contract with the broker that clearly states the terms of the employment
The amount of commission due to a salesperson is determined by
-mutual agreement
A real estate broker was responsible for a chain of events that resulted in the sale of a client’s properties. This is referred to as a …
procuring cause
In Pennsylvania, salespeople may advertise a property for sale only if they
-use the employing broker’s name in the advertisement
A real estate salesperson who is an independent contractor receives
-negotiated commissions on transactions
Upon discovering a latent defect in the property, the licensee should discuss the problem with the seller and then
-inform any prospective buyers of the defect
To be entitled to collect a real estate commission, brokers must be able to prove all of the following EXCEPT
- that they have a valid real estate broker’s license
- that they were the procuring cause
- that they are employed to perform certain activities
- that they belong to a real estate board
-that they belong to a real estate board
A broker lists a property for sale at $100,000 with a 5 percent commission, and he later obtains a verbal offer to purchase the property from a perspective buyer. The seller indicates to the broker that the offer would be acceptable if it were submitted in writing. Before it can be put in writing, the buyer backs out and revokes the verbal offer. In this situation, the broker is entitle to …
-no commision
A salesperson finally concluded difficult negotiations that resulted in the sale of a listed parcel of property. For all of her extra efforts, the salesperson can legally demand a performance bonus from …
- no one
Antitrust laws prohibit all of the following EXCEPT…
- property management companies standardizing management fees
- brokers allocating markets based on the value of homes
- real estate companies agreeing not to cooperate with a broker because of the fees that broker charges.
- a broker deciding whether to join a multiple listing service (MLS)
-a broker deciding whether to join a multiple listing service(MLS)
A licensed salesperson may receive compensation or commission from
-only the employing broker
The broker informs the affiliate licensees that from now on, the minimum commission they may charge a seller is 7 percent. In this situation, the broker is …
-legally permitted to do this
