Operating a Real Estate Office II

Question 1

T/F
According to the NY DOS, it is the listing broker who establishes the terms of compensation offered to subagents or buyers’ agents

Answer 1

False - the DOS states clearly that it is the seller who has the right to establish the amount and terms of compensation offered to co-brokers, subagents or buyer’s agents

Question 2

T/F

Commissions are always negotioable

Answer 2

True

Question 3

What is a procurement fee?

Answer 3

Fee paid by a commercial tenant to a licensee who helps the tenant find a suitable space

Question 4

If associate broker James has two deals signed and waiting to close when she leaves Star Realty to work for Ace Real Estate, she could still be paid any commission she would have earned from those deals. This is known as ___________

Answer 4

Dangling Commission

Question 5

What is arbitration?

Answer 5

An alternative to a court proceeding where the parties agree to submit facts and evidence to an impartial third party

Question 6

Jim had an exclusive listing on Susie’s house for 9 months. The week after it expired, she sold it to a co-worker. Is there anything that might help Jim collect commission on this transaction?

Answer 6

Protection Period Clause - commission to be paid even if the property is sold after the listing agreement expires

Question 7

What is self-dealing

Answer 7

When an agent buys the principal’s property (or sells it to a relative, friend, etc.) without disclosing that fact to the principal, and then sells it again for a profit