Course 1, Module 1, Lesson 5 Flashcards
When is Remuneration paid?
Remuneration is paid after the transaction is complete. NOT after the offer has been signed (ie have to clear conditions etc).
Which TWO factors will effect remuneration most strongly?
- The type of market
2. The season
What are SIX things to consider when budgeting for your first year?
- Keep business expense separate
- Should be financially independent for 6 months
- Never spend all the remuneration
- Pay yourself a stable wage and put the rest aside
- ensure you have decent tools like a camera and laptop
- seek tax advice
What will be your FOUR initial expenses?
- RECO application review fee
- Salesperson registration fee
- RECO insurance
- General start up costs (signage, cards etc)
Which side of the transaction is also know as the listing side?
The Seller side
Which side of a transaction is also known as the selling side
The Buyer side
Where is remuneration paid from?
Remuneration is paid out of the proceeds of the seller’s property
How does the seller pay out remuneration?
The Seller’s lawyer sends a cheque to the listing brokerage to be distributed according to the listing agreement
What happens to a Salesperson’s share of remunerations as they make more sales?
Typically, the share of remuneration increases
What happens if a Salesperson agrees to an annual standard remuneration share with their brokerage? (ie 95/5 with the brokerage)
Typically with the fixed rate, the Salesperson bares more expenses in exchange for the certainty of a fixed share
Does the share of remuneration that your brokerage gets typically rise or fall if you are paying a desk fee?
Usually it is lower as you are paying them a monthly fee already (could be 95/5 as opposed to 75/25)
