Chapter 2 - Before the Real Estate Transaction

Question 1

Real Estate Broker

Answer 1

A person licensed to engage in the real estate brokerage BUSINESS.

They oversee and are responsible for all their salespersons’ transactions.

Question 2

Real Estate Salesperson

Answer 2

A person licensed to engage in real estate brokerage but must place license under a licensed broker.

Can only receive compensation from their broker.

Question 3

What are some types of financing available to homebuyers?

Answer 3

1. Prevailing market interest rates - Conventional
2. Prevailing market interest rates - Jumbo
3. Federal Housing Administration (FHA) insured
4. Department of Veterans Affairs (VA) guaranteed

Question 4

Broker-Salesperson Agreement

Answer 4

aka employment contract - A written agreement between a RE broker and RE salesperson outlining the agency relationship and duties that exist between the parties.

Question 5

A real estate salesperson is legally an _________ of the real estate broker, but is considered an ___________ for income tax, unemployment insurance, and social security purposes.

Answer 5

Employee ; Independent Contractor

Question 6

Real Estate Salesperson is considered an EMPLOYEE for:

Answer 6

1. By law
2. By the CA Real Estate Commissioner
3. For Worker’s Comp purposes

Question 7

Real Estate Salesperson is considered an INDEPENDENT CONTRACTOR for:

Answer 7

1. Income tax
2. Unemployment insurance
3. Social security tax