Real Estate Brokerage

Question 0

Real Estate Broker

Answer 0

A person licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services.

Question 1

Brokerage

Answer 1

The business of bringing parties together.

Question 2

Real Estate Salesperson

Answer 2

A person licensed to perform real estate activities on behalf of a licensed real estate broker.

All of the activities of a REAL ESTATE SALESPERSON are directed by that broker, performed in the name of that broker and are remunerated by that broker.

Question 3

Real Estate Assistant

Answer 3

A real estate LICENSEE or a person without a real estate license (depending on state law) with fundamental understanding of the real estate industry who serves as office manager, marketer, organizer and/or facilitator.

Question 4

Broker’s Compensation

Answer 4

The contractually specified amount the broker earns when work for which the broker was hired to perform is accomplished. Broker’s compensation must be negotiable, although a Broker may set a minimum acceptable rate.

Broker’s compensation may be calculated as:

1) Commission or Broker’s Fee (% of price)
2) Flat Fee
3) Fee for Service
4) Hourly Rate

Question 5

Tests for entitlement to commission

Answer 5

To be entitled to real estate sales commission, an individual must be:

1) A licensed real estate broker
2) The procuring cause of the sale
3) Employed by the buyer or seller under contract

Question 6

**Procuring Cause

Answer 6

The unbroken chain of events resulting in a sale that were caused by a broker under contract or promise of payment.

Question 7

Ready, Willing and Able Buyer

Answer 7

One who is prepared to buy on the seller’s terms and ready to take positive steps toward consummation of the transaction.

Question 8

Real Estate Salesperson

Answer 8

Any person licensed to perform real estate activities on behalf of a BROKER.

Question 9

4 Primary Anti-trust Activities

Answer 9

1) PRICE-FIXING
2) GROUP BOYCOTTING
3) ALLOCATION OF CUSTOMERS OR MARKETS
4) TIE-IN AGREEMENTS

Question 10

Price-Fixing

Answer 10

Practice of setting prices for products or services rather than letting competition in the open market establish prices. Competing brokers agreeing to set uniform sales commissions, fees or management rates are examples of this practice in real estate.

Question 11

Group Boycotting

Answer 11

Two or more businesses conspiring against other businesses or agreeing to withhold their patronage to reduce competition.

Question 12

Tie-in Agreement

Answer 12

Selling a desirable item or service only on the condition of the purchase of less desirable or unwanted item.