Module 9

Question 1

Receives a gross check and a 1099-NEC Form

Answer 1

Independent Contractor

Question 2

A license holder who is sponsored by a broker

Answer 2

Sales Agent

Question 3

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

Answer 3

Broker

Question 4

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.

Answer 4

Principal-Agent Relationship

Question 5

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

Answer 5

Personal Assistant

Question 6

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

Answer 6

Quarterly Filing

Question 7

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

Answer 7

Tax Equity and Fiscal Responsibility Act

Question 8

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

Answer 8

Employment Anti-Discrimination

Question 9

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

Answer 9

1099-NEC Form

Question 10

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

Answer 10

Principal Broker

Question 11

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

Answer 11

Employee

Question 12

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

Answer 12

1099-NEC

Question 13

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

Answer 13

Personal assistant

Question 14

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

Answer 14

Principle Broker

Question 15

Receives a gross check and a 1099-NEC.

Answer 15

Independent Contractor

Question 16

Agents generally get paid a commission with no

Answer 16

withholdings

Question 17

The sales agent cannot be made to

Answer 17

attend sales meetings

Question 18

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

Answer 18

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.

Question 19

Independent contractors should file an estimate of income tax liability

Answer 19

quarterly

Question 20

Estimated tax liability should be filed using IRS form

Answer 20

1040-ES

Question 21

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

Answer 21

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

Question 22

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

Answer 22

independent contractors

Question 23

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

Answer 23

has no job other than sales agent for the broker

Question 24

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

Answer 24

1099-NEC

Question 25

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

Answer 25

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

Question 26

Unlicensed Assistants May

Answer 26

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

Question 27

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?

Answer 27

"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."

Question 28

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?

Answer 28

Yes, TREC allows unlicensed assistants to accompany inspectors

Question 29

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:

Answer 29

TREC prohibits unlicensed assistants from telemarketing for listings

Question 30

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?

Answer 30

"Great I'd love the job and, even as an unlicensed assistant, I can act as an onsite apartment manager"

Question 31

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?

Answer 31

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

Question 32

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?

Answer 32

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

Question 33

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

Answer 33

Texas REALTORS

Question 34

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

Answer 34

in the broker's office

Question 35

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

Answer 35

broker

Question 36

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

Answer 36

the agent is required by court order to disclose the information is otherwise public information

Question 37

Associates must deposit checks or funds of others in

Answer 37

a trust account specified in the contract

Question 38

The agreement can be terminated by either party

Answer 38

at any time by either party with written notice