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Law of Agency > Module 9 > Flashcards

Module 9 Flashcards

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1
Q

Receives a gross check and a 1099-NEC Form

A

Independent Contractor

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2
Q

A license holder who is sponsored by a broker

A

Sales Agent

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3
Q

A person who represents a buyer, seller, landlord, or tenant in a transaction.

A

Broker

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4
Q

The agency relationship that exists when one person, the agent, acts for or on behalf of another person, the principal, who is also known as the client. This relationship is a fiduciary relationship, meaning that it is a relationship based on trust.

A

Principal-Agent Relationship

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5
Q

May be hired to assist a sales agent, but is not required to hold a real estate license.

A

Personal Assistant

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6
Q

An IRS requirement that all independent contractors pay a deposit for the agent’s estimated federal tax liability.

A

Quarterly Filing

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7
Q

A federal law that sets guidelines on how to determine an agent’s independent contractor status.

A

Tax Equity and Fiscal Responsibility Act

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8
Q

Federal and state of Texas laws preventing discrimination in the workplace.

A

Employment Anti-Discrimination

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9
Q

An IRS form that shows the sum of payments received from a sales agent’s broker during the tax year.

A

1099-NEC Form

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10
Q

The broker who is represented by a sales associate in a principal-agent relationship.

A

Principal Broker

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11
Q

Receives a paycheck that is net of deductions for income taxes and other charges.

A

Employee

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12
Q

Shows the sum of payments received from a sales agent’s broker during the tax year.

A

1099-NEC

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13
Q

May be hired to assist a sales agent, but is not required to hold a real estate license.

A

Personal assistant

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14
Q

The broker in the broker-sales agent relationship in real estate.

A

Principle Broker

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15
Q

Receives a gross check and a 1099-NEC.

A

Independent Contractor

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16
Q

Agents generally get paid a commission with no

A

withholdings

17
Q

The sales agent cannot be made to

A

attend sales meetings

18
Q

What are three tests for specifying that a sales agent is an independent contractor:

A

The sales agent must hold a real estate license.

The sales agent must be paid on a commission basis.

The sales agent must have a written contract with the broker specifying the sales agent is not an employee.

19
Q

Independent contractors should file an estimate of income tax liability

A

quarterly

20
Q

Estimated tax liability should be filed using IRS form

A

1040-ES

21
Q

Which of the following activities might lead the IRS to determine that the agent is an employee?

A

If a broker pays the agent’s license fees, the IRS might determine that the agent is an employee

22
Q

In most real estate companies, the agents of the firm are

A

independent contractors

23
Q

An agent will be considered to be “full time” if the agent

A

has no job other than sales agent for the broker

24
Q

For the tax year, the sales agent will receive a ___________ that details all of the commissions paid during the year.

A

1099-NEC

25
Q

The sales agent should keep careful records of income and business expenses because

A

the sales agent does not want to pay too much in income tax

26
Q

Unlicensed Assistants May

A

Answer phone calls

Register prospects

Greet prospects and give general information about the area

Type correspondence

Schedule appointments for a license holder to show property

Telemarket if not soliciting for listings or buyers

27
Q

Dr. Morris Ashcroft, a buyer-client of Scott’s, calls the office to schedule a Saturday afternoon showing at 2:00 p.m. for a three-bed, three-and-a-half-bath home in a gated community on the golf course. Jeanne tells Dr. Ashcroft that Scott already has an open house scheduled for another client from 12:00-6:00 p.m. on Saturday. Dr. Ashcroft asks Jeanne if she is available to open the home and show him the property. How should Jeanne respond?

A

“I’m sorry, only licensed assistants are permitted to unlock and show properties to clients and customers, and I have not yet obtained my real estate license. I’d be happy to schedule an earlier showing on Saturday for Scott to show you the home.”

28
Q

Jeanne rushes out to 813 Euclid St. to meet the home inspector, Orlando, after Scott texts her that he is stuck in traffic across town. Can Jeanne accompany Orlando until Scott can arrive and take over? Why or why not?

A

Yes, TREC allows unlicensed assistants to accompany inspectors

29
Q

Scott has been so busy that he has fallen behind in his marketing activities, particularly on his cold calling. Jeanne wants to help him generate more business so he can be a top producer at the brokerage. She learns in her Law of Agency course that:

A

TREC prohibits unlicensed assistants from telemarketing for listings

30
Q

The owner of the apartment complex Jeanne lives in knows that Jeanne has a lot of knowledge about real estate because she has been taking classes and working as an assistant for her son. She is looking for a reliable and knowledgeable person to take over for the former on-site apartment manager and offers Jeanne the job. The money is very enticing for Jeanne, who is now living on a fixed income until she finishes her coursework and takes the exam. What should Jeanne tell the owner?

A

“Great I’d love the job and, even as an unlicensed assistant, I can act as an onsite apartment manager”

31
Q

Jeanne is an excellent motivational speaker who has the uncanny ability to encourage people to strive for the best and to reach new heights in their careers. Scott’s broker, Stefan, noticed Jeanne’s go-get-’em attitude and asked her if she could lead a motivational coaching session for the sales agents during the firm’s next marketing meeting. Is this an activity Jeanne can take part in?

A

Absolutely, unlicensed assistants are allowed to train and motivate license holders

32
Q

Jeanne finished her 6 qualifying real estate courses and took the Prep course at Champions School of Real Estate. After passing the National and State exams on the first try, Jeanne signs an Independent Contractor agreement with Broker Stefan. Scott has to go out of town suddenly, so he and his wife can spend time with his wife’s ailing father. He asks Jeanne if she can fill in for him as host of an open house that Saturday afternoon. Can Jeanne fill in for him at the open house?

A

Yes, now that Jeanne has her real estate license, she is permitted to host an open house.

33
Q

The Independent Contractor Agreement For Sales Associate is a _____ form.

A

Texas REALTORS

34
Q

The Independent Contractor Agreement For Sales Associate requires that the sales associate maintain files for each transaction

A

in the broker’s office

35
Q

An associate can’t terminate an agency relationship unless the _________ approves the termination in writing

A

broker

36
Q

Files related to the Broker’s real estate business are confidential business property. The associate is not to disclose information without Brokers knowledge and consent unless:

Select all that are correct

the information request is from a client

the information is useful in negotiations

the agent is required by court order to disclose

the information is otherwise public information

A

the agent is required by court order to disclose

the information is otherwise public information

37
Q

Associates must deposit checks or funds of others in

A

a trust account specified in the contract

38
Q

The agreement can be terminated by either party

A

at any time by either party with written notice

Law of Agency (10 decks)

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