RP UNIT8 Flashcards
What is the purpose of real estate license laws?
To establish basic requirements for licensing, define activities requiring licensing, describe acceptable standards of conduct, and establish a disciplinary system.
Each state has a licensing authority to enforce these laws.
Define a real estate broker.
A licensed individual who buys, sells, exchanges, or leases real property for others and charges a fee for services.
Brokers must be licensed to perform these activities.
What forms can a licensed brokerage take?
- Sole proprietorship
- Corporation
- Partnership
- Independent
- Franchise
These forms determine the structure and operation of the brokerage.
What are the responsibilities of a real estate broker?
- Manage the business
- Set effective office policies
- Maintain space and equipment
- Hire sales associates and staff
- Direct staff
- Implement procedures according to real estate laws
Brokers must ensure compliance with regulations.
Who is responsible for supervising the activities of sales associates?
The employing broker.
Sales associates must perform activities under the name of the employing broker.
What is the compensation structure for sales associates?
- Fixed salary
- Share of the broker’s commission
- Draw on future commissions
- Graduated commission splits
- 100 percent commission program
Compensation must be agreed upon between the broker and sales associate.
Fill in the blank: A real estate assistant may serve as a _______.
Combination office manager, marketer, organizer, facilitator.
The licensing requirement for assistants varies by state.
What are the common types of services offered to sellers?
- Helping prepare property for sale
- Performing a comparative market analysis (CMA)
- Marketing using MLS and websites
- Locating and screening buyers
- Assisting with negotiations
- Being available for closing
These services aim to facilitate the selling process.
What is a limited-service listing agreement?
An agreement that includes only listing a property in the MLS.
Some states require a minimum level of services to be offered.
What is price fixing in real estate?
When brokers conspire to set standard rates, which must be independently determined based on business judgment.
This practice is illegal and can lead to penalties.
True or False: Group boycotting is a legal practice among brokers.
False.
Group boycotting involves conspiring against businesses to reduce competition, which is illegal.
What are the penalties for violating antitrust laws?
- Individuals: Up to $1 million fine and ten years in prison
- Corporations: Up to $100 million in penalties
Violations can have severe legal consequences.
What is the role of the National Association of REALTORS® (NAR)?
It is the largest trade organization comprising state, regional, and local associations.
NAR establishes standards and promotes ethical practices in real estate.
What does the NAR Code of Ethics aim to achieve?
To establish standards within the industry and define a code of conduct for professionals.
It guides REALTORS® in their professional behavior.
What is the Internet Data Exchange (IDX) policy?
A policy that allows brokers to share listings on their websites.
IDX has transformed how listings are accessed and shared online.
What must electronic communications by a licensee include?
- Licensee’s name
- Office address
- Broker affiliation
This is to ensure transparency and compliance with state laws.
What does the CAN-SPAM Act require?
An ‘unsubscribe’ feature on marketing messages.
This act regulates commercial email to protect consumers.
What does the Children’s Online Privacy Protection Act (COPPA) require?
Posting a privacy policy and limiting information collected from children under 13.
It aims to protect children’s privacy online.
