Real Estate- Business (Roles) Flashcards
Mortgage brokers or bankers hire loan originators who must comply with all of the following EXCEPT:
Select one:
a. Be licensed as a Loan Originator
b. Pass and complete 20 hours of approved education
c. Be licensed as a real estate broker
d. Pass a Loan Originator Examination
c. Be licensed as a real estate broker
When a license is issued to a corporation, who is entitled to act as the designated broker?
a. Sales manager of the corporation
b. Corporation president only
c. One officer of the corporation
d. All officers of the corporation
c. One officer of the corporation.
Correct! The corporation must designate one individual as the Designated Broker and the individual must be an officer of the corporation.
In real estate, to qualify as an independent contractor, a salesperson must meet all of the following conditions EXCEPT:
a. Be a licensed real estate agent
b. Follow the brokerage requirements for floor time, attendance at sales meetings, etc.
c. Receive all income as a result of sales commissions
d. Have a written contract giving agent’s status as an independent contractor.
b. Follow the brokerage requirements for floor time, attendance at sales meetings, etc.
Correct! The broker can tell the licensed salesperson “what to do”, but not how to do it. Specific requirements such as for floor time would make the independent contractor agent an employee.
The real estate broker’s equivalent of medical doctor’s malpractice insurance is:
a. Errors and omissions insurance
b. Realty malpractice insurance
c. Extended homeowner’s coverage
d. Irate homeowners insurance
a. Errors and omissions insurance
Correct! Error and omissions insurance protects real estate brokers and licensed salespersons from liability due to not meeting the professional standards of the real estate profession.
What does the Sherman Antitrust Act prohibit brokers from doing?
a. Discriminating on the basis of race, religion, or national origin.
b. Selling each other’s listings
c. Setting standard commission rates with other brokerages
d. Advertising required down payment amounts.
c. Setting standard commission rates with other brokerages.
The Sherman Antitrust Act is the law designed to encourage competition, eliminate price-fixing and disallow monopolies. Brokerages agreeing to establish standard commission rates is a violation of the price-fixing under the Sherman Antitrust Act.
A real estate licensee who is a partner in a partnership and who acts as the principal broker for the firm is called:
a. the employing broker
b. an associate broker
c. the broker manager
d. the designated broker
d. the designated broker
Correct! The Designated Broker is defined as “a natural person licensed as a broker who is either 1) Designated to act on behalf of an employing real estate entity, or 2) Doing business as a sole proprietor.
A salesperson can be compensated for an act within the scope of the real estate law by:
a. Another salesperson
b. His or her client
c. Another broker
d. His or her own broker
d. His or her own broker
Correct! A licensed salesperson is a representative of the Broker and can only be compensated by the Broker for any licensed activities.
A salesperson who is responsible for his or her broker only for the results of his or her work is:
a. An employee
b. An independent contractor
c. An agent
d. A servant
b. An independent contractor
A salesperson who is responsible only as to the results of his/her work is most likely an independent contractor.
A real estate salesperson MUST comply with all of the following EXCEPT:
a. Complete at least 24 hours of continuing education every license renewal period
b. Disclose position as a licensee when purchasing or selling property on the licensee’s behalf
c. Take all listings in writing and in the name of the employing broker
d. Accept a position as the branch manager for the employing broker at the broker’s branch office.
d. Accept a position as the branch manager for the employing broker at the broker’s branch office.
Correct! A real estate salesperson is generally an independent contractor and would not be required to accept the position and responsibilities of a branch manager if the broker offered such a position.
Poorly worded quiz question
A licensed salesperson referred a buyer to an out of state broker who agreed to pay a commission for the referral
a. His broker
b. The seller
c. The out of state broker
d. The buyer
a. His broker
Correct! A broker shall employ and pay only active licensees, and a licensee shall accept employment and compensation as a licensee only from the legally licensed broker to whom the licensee is licensed.
A licensee who acts as the broker for a corporation is a/an:
a. Broker DBW&F
b. Designated Broker
c. Principal Broker
d. Associate Broker
b. Designated Broker
