Owning, Managing, and Supervising a Real Estate Office

Question 1

What do many brokers believe is the best way to get listings

Answer 1

Institutional Advertising. Institutional advertising describes the firm, its personnel, and its services. (the history, the quality, and the personel

Question 2

What are the three major requirements a sales associate must meet to qualify for independent contractor status.

Answer 2

1. the sales associate must hold a real estate license.
2. the sales associate’s gross income must be based on production rather than on the number of hours worked.
3. the sales associate must work based on a written contract that states, among other things, that the sales associate is not considered an employee for federal tax purposes.

NOTE: a broker does not need to provide adequate office space for sales/broker associate.

Question 3

How to compute the sales associates desk costs

Answer 3

Projected total expenses (including the brokers salary and a fair profit) DIVIDED BY number of sales associates.

Question 4

Sales Associates and Broker Associates can pay what/who.

Answer 4

Ministerial activity can be paid by sales associate or broker associate.

Brokerage activity must be paid by the broker.

A non licensed person can’t pay a real estate agent.

Question 5

Is there a standard commission slip?

Answer 5

No.

Question 6

What percentage of commission given away without charging a desk fee historically looses the broker money.

Answer 6

If a broker gives away more than 60% of commission without charging a desk fee historically the broker runs out of money.

Question 7

Does a brokers training program have to provide training on listing skills.

Answer 7

No but they should.