Chapter 5 and 21 Flashcards
What is brokerage?
is the business parties together
What happen on april 30 2012?
broker doesn’t mean a real state salesperson or leasing agent. After that date however brokerage services will be between a sponsoring broker and consumer
What happened after april 30, 2012?
all licenses acting as managing broker, self sponsored broker must have a managing broker license or get one with in 90 days
Who is sponsoring broker?
the broker is the entity holding the company real estate license
what is have to do managing broker?
has take additional course and received a managing broker license
What is manger broker responsible for?
is responsible of all estate actives performed by affiliated licenses
What is manager also responsible for?
record keeping mandated, maintenance of the employment agreements entered into the each sponsored licenses and if the escrow monies are maintained for the managing broker
what are the three specific criteria of independent contractor set by the IRS?
- must hold a active real estate license
2, must agree in writing not to be treated as an employee for tax purposes - at least 90% of income must come from sales
what are the two requirements for the stationary non employee for the IRS
1 payment for service must be directly related to sales and not number of hours worked
2 the workers have contracts specifying that will treated as regular employees for tax purposes
who is responsible for taxes?
independent contractor or you
what is the manger responsibilities?
has supervisory responsibility for the licenses one or more in the multi office company
Can a manager head more than one office?
yes
What is Maintenance of licenses?
sponsoring brokers are required to notify IDFPR in writing of the name and licenses number of all managing broker is responsible, the manager must have current active managing broker license.
What happen is there is a loss managing broker?
a request may be to IDFPR within 15 days to grant as extension for continue office operation, the extension may granted up to 60 days
What happen with the death of the owner?
a representative of the estate could operate the office for up 60 days
What happen after 60 day after manager dies or sole owner dies?
there must be a manager, or all restate transaction must be finish after the owner dies
What happen with a death of self sponsored broker?
IDFPR will honor the order of court of competent jurisdiction appointing a legal representative for sole purpose of closing out the affairs of the deceased but not in new business
What happens with manager gets the renewals?
the manager must notify the licensee of the receipt in person with seven days or by registered mail with in ten days
What happens with change of address?
All manager must notify IDFPR on business letterhead of change of business within 24 hours of any change
What happened on may 1, 2012 for advertising?
all managers who are named as managers with the division must indicate this status on all advertising that includes their names
What happen when they hold manager license but not named as manager (for advertising)?
are not required to include their names. they may not represent or indicate that they are manger.
What are the duties of supervisory for manger?
- implementation of the office polices and procedures established by the spooning broker
- training of license or unlicensed assistant
- assisting licenses as necessary in real estate transaction
- supervising escrow accounts over which the sponsoring brokers has delegated escrow account provision of the Act
- familiarizing sponsored license with the requirement of the federal and state laws relating to the practice of real estate
- compliance with rules for licenses and offices user his supervision
how should a manual written as and what should it serve?
the manual should be written and should serve as a risk management tool for the company.
why are the manual good?
- establishing a clear understanding of the relationship between and sponsor
- working to resolve conflicts before they come up
- building confidence that everyone know that the rules are show the company is supposed to operate
- giving guidance for many the situations licenses face on a day to day basis
Should all sponsoring broker must have E&O insurance?
yes
why should brokers should have E&O?
brokers are held to fiduciary standards
What is fiduciary standards?
is level standard that hold licensees to the highest standards that law will provide.
what is policy procession and covered services for E&O insurance?
A real estate licensees need insurance protection from claims made by clients and ect
what determines whether E&O policy address ?
- services are covered
- person is covered
- damages are covered
- defense are covered
- territory is covered
What is defense cost for E&O insurance?
polices may sometimes pay the cost involved in investigating, defending and settling claims
what is covered territory for E&O insurance?
Most E&O cover claims resulting from anywhere in the world, provided the claim and concomitant is brought in the U.S.
Who collects a commission in IL?
Manager or sponsor
how is commission is earned?
when the work for which the broker was hired has been accomplished. Most commission are payable when delivery of the seller’s deed
what is a ready, willing and able buyer?
someone who is prepared to buy on the seller terms and ready take positive step toward consummation of the transaction
what are the antitrust violations?
- price fixing
- group boycotting
- allocation of customers
- allocation of markets
- tie in agreements
what is price fixing?
is practice of setting prices for products or services with the competition
what is group boycotting?
occurs when two or business conspire against another business or free to withhold their patronage to reduce competition
what tis allocation of customers or markets?
involves an agreement among real estate companies to divided their market and refrain from competing for each other’s business. Allocation may be on a geographic basis.
what is tie in agreement?
are agreements to sell one product only if the buyer purchase another product as well
when was the national do not call registry?
2003
what is national do not call registry?
is list of phone numbers of consumer who don’t want be contacted by commercial telemarketers.
who is national do not call registry managed by and force by?
manage by FTC and enforced by FCC and state officials
What are the guid lines for national do not call registry?
licensees may contact consumer even when they are listed in the national do not call registry. you are allowed to call with consumers with whom they have establish business up to 18 months
What is can-span act of 2003?
establishes requirements for sending commercial email
What is requirement for can-spam?
- false or misleading information is banned
- deceptive subject lines are prohibited. the subject line can’t mislead the recipient about the contents or subject matter of the message
- email recipients must have an opt out method
- commercial email must be identified as advertisement and include the senders valid physical postal address
what is junk fax prevention act of 2005?
doesn’t legalize unsolicited fax ads, but does allow for an established business relationship exception
what are the federal protected classes?
- race
- color
- religion
- sex
- disability
- family status
- nation orgin
What is civil rights act of 1968?
prohibits discrimination base on race,color religion and national origin
what happen in 1974 for fair housing?
sex was added for federal law
what happened in 1988 for fair housing?
disability and family status was added for federal law
what does HUD stand for?
department of housing and unbar development
what is HUD?
administer the fair housing act has established rules and regulation that further interpret impacted housing practices
what did congress pass in 1955 for federal housing?
they passed the housing for older persons act act. or HOPA
What is HOPA?
it states that 80% must be 55 or older
if the age is 62, all residents must be 62 or older
What is familial status?
refers people that have not reach 18 who live a parent
what is exemption to the fair housing act?
- owner occupied building with no more than four units
- single family housing old or rented with the sue real estates licensee
- housing operation by organization and private clubs that limit occupancy to members
what happened the case Jones v. Mayer?
the supreme court upheld the civil right act of 1988
what is Megan’s law?
it states registration system to maintain residential information every who commit crimes toward children
what is exempt for sale or rental of single family home?
the home owned by individual who does not won more then three home at one time
- a real estate licensee is not involved in the transaction
- discriminatory adverting is no used
what is american with disabilities act?
goal is enable people with disabilities to become part of the ecumenic and social mainstream of society
title 1: requires that employers make reasonable accommodation that enable an person with disability to perform essential job functions
title 3: person with disabilities have accessibility to business, goods, and public services
what are exempts to ADA and fair housing?
- property tha covered by fair housing act
2. property that exempt from coverage by the fair housing act
what is blockbusting?
is the act of encouraging people to sell or rent their by claiming that the entry of a protected call of people into the neighborhood will have some sort of negative impact on property values
what is steering?
is channeling of home seeder of particular neighborhood
what should advertising not have in it?
adverting of property for sale or rent may not included language indication a preference or limitation. No exceptions
What is red lining?
the practice of refusing to make mortgage loans or issue insurance polices in specific ares of reason othe the applicant’s financial qualification
what are all the protected classes in IL?
race, color, religion, national origin, ancestry, age, sex, martial status, familial status, sexual orientation, order of protection, military service
what are the exemption under human rights act for discrimination?
- private owner of single family home, A: they own fewer than three single family homes B: they were (or family member) was the last current resident of the home C: home was sold without the use of broker D: sold without use of discriminatory adverting
- owner occupied apartment building of five units or less
- private rooms in a private home by owner or family member
- reasonable local, state or fed restriction regarding the max number of occupants permitted in a dwelling
- a religious organization, association or society
- restricting the rental of rooms in housing accommodation to per for one sex
- person who have been convicted by any court of illegally manufacturing or distributing controlled substance
7 appraiser may take into consideration any fact other than those based on unlawful discrimination or family status - a child sex offender who owns residential real restate, in which the offender live and rents is exempt from renting, unit property to a person who is a parent
