PRINCIPLES AND PRACTICES CHP1 Flashcards
In general, a real estate licensee may NOT accept compensation for selling___ on behalf of a client.
A. commercial property
B. securities
C. timeshares
D. vacant land
B. securities
The majority of new licensees begin their work in what market?
A. commercial properties
B. multi-family residential
C. property management
D. single-family residential
D. single-family residential
Independent contractor licensees
A. are subject to strict direction or control by their broker.
B. are paid for the number of hours worked.
C. cannot be charged for office space or supplies provided by the broker.
D. earn commission based on the results of their work efforts.
D. earn commission based on the results of their work efforts.
Which is NOT a factor the IRS uses to determine whether a real estate agent qualifies as an independent contractor for tax purposes?
A. has a fiduciary relationship with clients
B. paid for output, not hours worked
C. properly licensed
D. written and signed contract with broker
A. has a fiduciary relationship with clients
At the end of the year, what form will independent contractors receive that details their compensation for the year?
A. 1040 ICA
B. 1099-MISC
C. W-2
D. W-4
B. 1099-MISC
The IRS issues rules that determine when a real estate agent is an employee and when they are an independent contractor. Which of the following statements on that topic is FALSE?
A. The brokerage may allow independent contractors to place their own ads if the ads conform with the firm’s advertising rules.
B. The brokerage may require an independent
contractor to have a cell phone.
C. The brokerage takes taxes from an employee’s paycheck.
D. The brokerage tells an employee to work certain hours.
B. The brokerage may require an independent contractor to have a cell phone.
A salesperson uses the multiple listing service to find the perfect house for a buyer. When the buyer purchases the house, who pays the salesperson the commission they earned?
A. the buyer client
B. the manager of the multiple listing service
C. the salesperson’s broker
D. the seller
C. the salesperson’s broker
Which is NOT an advantage of a career in real estate sales?
A. possibility of owning a brokerage with additional training, education, and experience
B. potential for unlimited earnings
C. setting your own hours
D. predictable income
D. predictable income
When may a person use the term REALTOR®?
A. after closing their first successful transaction
B. as soon as the person passes the real estate license examination
C. only after becoming a member of the National Association of REALTORS®
D. upon the sponsorship of their employing broker
C. only after becoming a member of the National Association of REALTORS®
The multiple listing service (MLS) was created so that
A. agency agreements and disclosures would not be necessary.
B. brokers could have a secure place to record a client’s confidential information.
C. member brokers could share listings with a blanket offer of cooperation and compensation.
D. sellers and buyers could find each other.
C. member brokers could share listings with a blanket offer of cooperation and compensation.
ABC Cable Inc. is getting ready to build a new call center in Smithton that should attract hundreds of new workers to the small town. What would you expect the immediate effect on home prices in the area to be?
A. Home prices should fall initially.
B. Home prices should rise initially.
C. Home prices should not be affected.
D. It’s not possible to predict.
B. Home prices should rise initially.
A large influx of people into a community is likely to result in which type of real estate market?
A. buyer’s market
B. seller’s market
C. should not affect the market
D. impossible to predict
B. seller’s market
What is the most important factor in determining supply in the real estate market?
A. economic base of an area
B. government programs
C. interest rates
D. population growth
A. economic base of an area
Which situation would NOT LIKELY result in a seller’s market?
A. high construction costs
B. low interest rates
C. migration out of an area
D. minimal new construction
C. migration out of an area
What is the impact of low inflation on the real estate market?
A. It raises interest rates.
B. It decreases the cost of a newly built home.
C. It increases the price of existing homes.
D. The market would not be affected.
B. It decreases the cost of a newly built home.
