Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A Real Estate Agent Concepts > Section 14: Brokerage Operations and Listing Agreements > Flashcards

Section 14: Brokerage Operations and Listing Agreements Flashcards

1
Q

Brokerage Operations and Listing Agreements:
Brokerages:
There are many types of brokers and brokerages. Each brokerage is unique in what they offer and what they do. Our opinion is to look at brokers and brokerages to see what they do, if they do what you want to do, __________ them. Finding out what you want to do and then finding a broker who does that, is the best advice we can give.

A

Interview

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Brokerage Operations and Listing Agreements:
Brokerages:
Chain Of Command:
> Brokerage Entity Is In Charge Of The
> __________

A

Designated Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Brokerage Operations and Listing Agreements:
Brokerages:
Real Estate Firms, Broker and Agents in Arizona:
* __________: The Brokerage

A

Entity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Brokerage Operations and Listing Agreements:
Brokerages:
Real Estate Firms, Broker and Agents in Arizona:
o This is the __________ in which all agents and the Broker “work or are employed”.
o Could be a LLC, C Corp, S Corp or Partnership.

A

Corporation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Brokerage Operations and Listing Agreements:
Brokerages:
Real Estate Firms, Broker and Agents in Arizona:
 __________: The name of a corporation LLC or entity.
o CAN NOT be a PC, PLLC or private person.

A

Fictitious Name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* __________:
o The individual responsible for all activities and operations for the “entity”.

A

Designated Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o In charge of all branch offices, managing brokers, associate brokers and agents.
o Every single transaction i.e. __________ and __________ belong to this person.

A

Sale and Listing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Designated Broker owns ALL __________ and agrees to pay employed agents based upon their contract.

A

Commissions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Can only be __________ Designated Broker at a time.

A

One

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Designated Broker must be partner if entity is __________.

A

Partnership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Creates and updates the office policies manual or “__________”.
 All agents must sign and be given a copy of this manual.
 IMPORTANT: Failure of the brokerage to have a manual = $1000 Fine.

A

Standards of Practice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Creates and updates the office policies manual or “Standards of Practice”.
 All __________ must sign and be given a copy of this manual.
 IMPORTANT: Failure of the brokerage to have a manual = $1000 Fine.

A

Agents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
* Designated Broker: THE INDIVIDUAL
o Creates and updates the office policies manual or “Standards of Practice”.
 All agents must sign and be given a copy of this manual.
 IMPORTANT: Failure of the brokerage to have a manual = $__________ Fine.

A

$1000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
Brokerages:
Quiz:

A real estate office does not have a policy manual. What is the penalty?

Loss of license

$1000

$2000

$1000 and suspension

A

$1000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Brokerage Operations and Listing Agreements:
Brokerages:
Chain Of Command:

> Entity

is in charge of the

^ Designated Broker

is in charge of the

^ __________
^ __________
^ __________

A

Managing Broker

Associate Broker

Sales Agents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* __________: THE MANAGER
o An associate broker that has been given SPECIAL authority to REVIEW contracts on behalf of the Designated Broker and helps w/ day to day operations.
o Can be in same or different location as Designated Broker.

A

Managing Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* Associate Broker: STILL A SALESPERSON
o A sales agent that passed their Brokers test in AZ but works under Designated Broker
o Must have __________ Years out of past 5 Years current experience to be an Associate Broker.

A

3 Years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* __________:
o Any individual who have “hung” their license with a DB and Entity.
o MUST have a license on file before operating in Real Estate.

A

Sales Agents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* Sales Agents:
IMPORTANT: You CAN NOT be a licensed real estate agent without being under a __________.
o All business done in name of Designated Broker.

A

Designated Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Brokerage Operations and Listing Agreements:
Real Estate Firms, Broker and Agents in Arizona:
* Sales Agents:
o Acts as a “general real estate agent for the Designated Broker.
o Designated Broker is fully responsible for all actions of the sales agents while __________Employed.

A

Employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
* Any agent, associate broker or salesperson that works for a Designated Broker is
considered a __________ of the broker since they are doing business on behalf of the Broker.

A

Sub-Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
* If the Broker owns all listings, the BROKER is technically the real ‘__________’ working for the seller. You represent the Broker’s interests with the shared client.

A

Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
* __________:
Agent of the broker and also a fiduciary to their client.

A

Salesperson

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
o Salesperson is acting on behalf of their broker who is in charge of contracts.
o Salesperson is acting as a ‘Sub-Agent’ to the CLIENT on __________ of the Broker.

A

Behalf

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
* Sub-Agent: Agent is an ‘AGENT of the AGENT’ An Agent for the __________.

A

Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
o Broker works for client, but salesperson works for the broker, who in turn works on BEHALF of the broker for the client and as such IS a __________ to the client.

A

Sub-Agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Brokerage Operations and Listing Agreements:
Salesperson and Sub-Agents:
Quiz:

True or False:

Anyone that works for a designated broker is considered a sub-agent of the broker since they are doing business on behalf of the broker.

True

False

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Brokerage Operations and Listing Agreements:
Agent Status as Employee or Contractor:
* The STRICT difference is in taxes:
A __________ means this is an employee and thus the employer withholds or keeps taxes from the paycheck.

A

W-2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Brokerage Operations and Listing Agreements:
Agent Status as Employee or Contractor:
* The STRICT difference is in taxes:
A __________ is self-employed and they must pay all of their own taxes.

A

1099

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Brokerage Operations and Listing Agreements:
Agent Status as Employee or Contractor:
* Most brokerage firms maintain that agents are __________, NOT employees.
- Before joining any brokerage, it is important to understand the difference.

A

1099 Independent Contractors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Brokerage Operations and Listing Agreements:
Agent Status as Employee or Contractor:
o __________:
Acting as self-employed, the broker CANNOT dictate hours.

A

Independent Contractor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Brokerage Operations and Listing Agreements:
Agent Status as Employee or Contractor:
o __________:
You perform services that can be CONTROLLED by an employer. You work a set schedule.

A

Employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Brokerage Operations and Listing Agreements:
Agent Status as Employee or Contractor:
* IMPORTANT: The common rule is that an employer can tell an employee what will be done and how it will be done and __________ dictate this to an independent contractor.

A

Cannot

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Listing Agreements:
Agent Status as Employee or Contractor:
* Taxes are __________ from employee’s but NOT from contractors who will receive a 1099.

A

Withheld

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Brokerage Operations and Listing Agreements:
Real Estate Agent vs. Realtor:
* There are real estate agents and Realtors®.
There is a difference.
o Agents are licensed by the States Dept. of Real Estate and may perform acts in which a commission is paid but are NOT members of any __________.

A

Boards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Brokerage Operations and Listing Agreements:
Real Estate Agent vs. Realtor:
 Examples - __________, New Home Sales, Land, Commercial Agents, and Business Brokers.
- MOST LIKELY ARE NOT Realtors®

A

Timeshare Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Brokerage Operations and Listing Agreements:
Real Estate Agent vs. Realtor:
 Examples - Timeshare Sales, __________, Land, Commercial Agents, and Business Brokers.
- MOST LIKELY ARE NOT Realtors®

A

New Home Sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Brokerage Operations and Listing Agreements:
Real Estate Agent vs. Realtor:
 Examples - Timeshare Sales, New Home Sales, Land, __________, and Business Brokers.
- MOST LIKELY ARE NOT Realtors®

A

Commercial Agents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Brokerage Operations and Listing Agreements:
Real Estate Agent vs. Realtor:
 Examples - Timeshare Sales, New Home Sales, Land, Commercial Agents, and __________.
- MOST LIKELY ARE NOT Realtors®

A

Business Brokers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Brokerage Operations and Listing Agreements:
Real Estate Agent vs. Realtor:
o A real estate agent who is a member of the National Association of REALTORS® is
a Realtor®, which means that he or she must uphold the standards of the association and its __________.

A

Code of Ethics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Brokerage Operations and Listing Agreements:
Real Estate Agent vs. Realtor:
 These agents now MUST belong to the National Association of Realtors®
 Being a Realtor® – must use __________ and enables Realtor to be used.

A

Capital R

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
* __________:
This is the Realtor® Designation.
o Largest Trade Association in the World.

A

National Association of Realtors (NAR)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
* __________:
o They produce the boilerplate forms that most agents use in transactions.

A

States Association of Realtors (SAR)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
* __________:
o Peoria Association of Realtors (PAR), West and SouthEast REALTORS of the Valley (WeSERV), West Maricopa Association of Realtors (WMAR), and SouthEast Valley Regional Association of Realtors (SEVRAR) are all examples of local boards in Arizona.
- IMPORTANT: They are divided into a territory, but there are no limits or laws as to where they operate.

A

Local Boards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
* Local Boards:
o __________(PAR), __________(WeSERV), __________ (WMAR), and __________ (SEVRAR) are all examples of local boards in Arizona.
- IMPORTANT: They are divided into a territory, but there are NO limits or laws as to where they operate.

A

Peoria Association of Realtors

West and SouthEast REALTORS of the Valley

West Maricopa Association of Realtors

SouthEast Valley Regional Association of Realtors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
* Multiple Listing Service (MLS):
o Each __________ area has their own MLS (Prescott, Tucson, ARMLS, Etc.

A

Regional

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
Multiple Listing Service (MLS):
o Access to the MLS is by being a __________ only.

A

Realtor®

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
Multiple Listing Service (MLS):
o This is the database where all brokers/agents will __________ their listings with other realtors for their clients.

A

Advertise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
Multiple Listing Service (MLS):
o By offering to “__________” the commission, this is publicized ONLY in the MLS.

A

Share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Brokerage Operations and Listing Agreements:
National, State and Local Boards and Associations:
Multiple Listing Service (MLS):
o Brokers and agents CAN NOT negotiate __________ in the offer/acceptance of a contract.

A

Commissions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

REVIEW PRESCOTT BROKER LISTING:
Real Life NOTE:

Commissions are ALWAYS negotiable between the __________ and the Seller. The commission offered to a buyer’s agent (if any) is up to the listing agent to share and would be found in the MLS!

A

Listing Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

National, State and Local Boards and Associations:
Case Study:

What is the difference between a Managing Broker and an Associate Broker?

A

A Managing Broker is an associate broker who has been given special authority to review contracts on behalf of the DB and helps in day-to-day operations. They can be in the same or different location as DB. However, the Associate Broker is a sales agent who passed their Broker test in AZ but works under DB. They must have three years out of the past five years of experience to be AB.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

National, State and Local Boards and Associations:
Case Study:

Can you be a Real Estate Agent and not a Realtor®?

A

Yes, a real estate agent who is not a member of the National Association of REALTORS® is not a Realtor®.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

National, State and Local Boards and Associations:
Case Study:

What is the difference between an independent contractor and an employee?

A

Independent contractor is acting as self-employed. The broker cannot dictate hours. Whereas as an employee, you perform services that an employer can control.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

National, State and Local Boards and Associations:
Case Study:

How are brokers, salespersons, and sub-agent related?

A

Broker works for a client, but salesperson works for the broker, who in turn works on behalf of the broker for the client and, as such is a sub-agent to the client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

National, State and Local Boards and Associations:
Quiz:

Who is responsible for the licensing of agents in the State of Arizona:

Department of Real Education

Pierson Vue

School Facility

Department of Real Estate

A

Department of Real Estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

National, State and Local Boards and Associations:
Quiz:

SellingAZ real estate firm is expanding and opened up a new remote office in Show Low, ArizonA. This new office quickly grows under the watchful eye of a branch managing associate broker. One agent while out showing properties, steals a watch from a house while with his clients. Who is responsible:

Homeowners Insurance

Associate Broker acting as team lead

Branch Manager in charge of this office

Designated Broker of main company

A

Designated Broker of main company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

National, State and Local Boards and Associations:
Quiz:

If a newly formed real estate entity is created in Arizona, which of the following could not be used as the entity type:

Limited Liability Corporation (LLC)

S Corporation

Partnership

Professional Corporation (PC)

A

Professional Corporation (PC)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

National, State and Local Boards and Associations:
Quiz:

All of the following might be One way a real estate brokerage could be set up in the state of Arizona except :

a nonprofit

partnership

Corporation

LLC

A

a nonprofit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

National, State and Local Boards and Associations:
Quiz:

In the State of Arizona, the ________________ is responsible for the actions of all agents.

Department of Real Estate

Owner of the Brokerage

Associate and Mentor Broker

Designated Broker

A

Designated Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

National, State and Local Boards and Associations:
Quiz:

Which of the following reasons could be a reason why a salesperson would not be eligible to become a designated broker in the State of Arizona?

He or She is Not a Realtor

Previous ethics complaints

He or she is not yet 21 years of age

Does not have a college degree or higher

A

He or she is not yet 21 years of age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

National, State and Local Boards and Associations:
Quiz:

What type of agent is the real estate agent in regards to the brokerage:

Specific

Universal

General

Associate

A

General

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Brokerage Operations and Listing Agreements:
NAR® Code of Ethics:
* Realtors® adhere to a set of moral principles that govern our behavior.
* The Expectation to live up to the “__________” and to treat others as you want to be treated.
* We are expected to be honest, truthful, competent and of good moral character.

A

Golden Rule

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Brokerage Operations and Listing Agreements:
NAR® Code of Ethics:
o Duties to Clients and Customers, the Public and Duties to other Realtors.
o Knowledge of purpose and effects of both principles and practices.
o Knowledge of real estate contracts, financing, management etc.
o Knowledge of real estate statutes, laws, and __________ standards.

A

Commissioner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Brokerage Operations and Listing Agreements:
NAR® Code of Ethics:
The National Association of Realtors® has a “CODE OF ETHICS” that constrains Realtors® to a strict moral and ethical set of behaviors. Remember, this is not mandatory to become a Realtor® but it is very useful, especially if you need or want access to the __________!

A

MLS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Brokerage Operations and Listing Agreements:
NAR® Code of Ethics:
* IMPORTANT: REALTOR® members must complete __________ Hours of ethics training, meeting specific learning objectives and criteria, within three (3) year cycles.

A

2.5 Hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Brokerage Operations and Listing Agreements:
NAR® Code of Ethics:
* IMPORTANT: REALTOR® members must complete 2.5 Hours of ethics training, meeting specific learning objectives and criteria, within __________ Year cycles.

A

3 Year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

Brokerage Operations and Listing Agreements:
NAR® Code of Ethics:
NAR® Code Of Ethics to be used solely and exclusively by members of the __________.

A

Arizona Association Of
Realtors®

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
* Broker must review any and all contracts, offers, leases or addendums:
o within a period of __________ Business Days from execution of all parties.
o Review all contracts looking for errors or omissions.

A

10 Business Days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
* __________:
o Broker may assign broker supervision duties to an associate broker employed in either the main office or in a separate branch office.

A

Supervise the Activities of Licensees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
* Supervise the Activities of Licensees:
o Broker may NOT __________ all overall responsibility for supervision and control of the acts of an employing broker’s employees.

A

Relinquish

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
* Only the __________ may Hire or Fire a licensee.

A

Designated Broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
* Only the Designated Broker may sign __________.

A

Commission Checks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
* IMPORTANT: Only the Designated Broker may be a __________ on the branch office trust account or property management trust account & write checks from the broker’s trust accounts.

A

Signer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
* Only the Designated Broker may be the person collecting and paying __________.

A

Errors and Omission Insurance (E&O)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
o Errors and Omission Insurance (E&O):
Insurance Policy Brokers carry in case of __________ caused by their agents.

A

Lawsuits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

Brokerage Operations and Listing Agreements:
Designated Broker Duties:
o Errors and Omission Insurance (E&O):
o IMPORTANT: This is Not __________ in the State of Arizona but is generally carried by most brokers.

A

Mandatory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
*ALL advertising must be monitored and __________ by the Designated Broker.

A

Approved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
o To prevent fraud or misrepresenting to the __________.
o Must be accurate.
o Must disclose employing brokerage name predominantly.

A

General Public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* IMPORTANT: Agents MUST disclose that they are licensed in a transaction where they are representing a client – if they fail to it is known as a __________.

A

Blind Ad

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* IMPORTANT: Agents MUST list that they are “OWNER/AGENT” in any ad where they have an __________ Interest and must disclose this to all parties involved.

A

Ownership

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
__________:
Advertisements for real property where the agent fails to tell the general public that they are a licensed agent.

A

Blind Ad’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
Blind Ad’s:
* The employing __________ name must be clear and prominent in ads – the full name, NOT an abbreviation or parent company.

A

Broker’s

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
Blind Ad’s:
* All websites: The __________of the employing broker must be visible on the first page of the site without scrolling down.

A

Name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
Blind Ad’s:
* In order for an agent to place a “FOR SALE” sign on a property.
-MUST have owner’s written permission from owner in __________.

A

Writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
Blind Ad’s:
* If advertising another listing, the owning __________ name must be displayed as the factual broker representing that owner.

A

Brokerage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
Blind Ad’s:
* It is not allowed to ‘__________ or __________’ when advertising acreage.
- Any acreage that is advertised must be described as the square footage or the decimal. (.25 acres = ¼ acre = 10,890sqft or 43,560 sqft = 1 acre)

A

Round Up or Round Down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
*It is illegal to offer prizes or __________ to purchase to the general public for either free or reduced costs.

A

Incentives

89
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* Any ‘__________’ that includes an offer of money, discounts etc. must be PROMINENTLY disclosed in the listing.

A

Inducement

90
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* Games of chance or __________ are prohibited in the sales of real estate.

A

Lotteries

91
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* Games of chance or lotteries are prohibited in the sales of real estate.
**Exception: __________, Timeshare Sales, or Campgrounds, MAY with permission from Arizona Department of Real Estate (ADRE), host a lottery.

A

Land Sub-Dividers

92
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* Games of chance or lotteries are prohibited in the sales of real estate.
**Exception: Land Sub-Dividers, Timeshare Sales, or __________, MAY with permission from Arizona Department of Real Estate (ADRE), host a lottery.

A

Campgrounds

93
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* Games of chance or lotteries are prohibited in the sales of real estate.
**Exception: Land Sub-Dividers, __________, or Campgrounds, MAY with permission from Arizona Department of Real Estate (ADRE), host a lottery.

A

Timeshare Sales

94
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
Timeshares:
* A __________ may be given to persons who visit timeshare properties or who attend a timeshare presentation.

A

Premium

95
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
Timeshares:
- Maximum time to present is __________ Minutes to receive the premium or gift.
- Developer must in writing describe value of premium prior to presentation.

A

120 Minutes

96
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
Timeshares:
- Maximum time to present is 120 Minutes to receive the premium or gift.
- Developer must in _________ describes value of premium prior to presentation.

A

Writing

97
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* With team advertising it must be clear that the _________ is a part of the employing Brokerage.
i.e., placing “The (Team Name) Team” at the top of the page in large letters with a much smaller brokerage symbol somewhere below is NOT sufficient.

A

Team

98
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* All websites, the name of the employing broker must be visible on the first page of the site without scrolling down.
* If advertising another listing, the owning brokerage name must be displayed as the factual _________ representing that owner.

A

Broker

99
Q

Brokerage Operations and Listing Agreements:
Designated Broker Review of Advertising:
* “_________” sign on a property -MUST have owner’s written permission from owner in writing

A

For Sale

100
Q

Brokerage Operations and Listing Agreements:
Broker Review of Advertising:
* It is not allowed to ‘round up or down’ when advertising acreage. Any acreage that is advertised must be described as the square footage or the _________. (.25 acres = ¼ acre = 10,890sqft or 43,560 sqft = 1 acre)

A

Decimal

101
Q

Brokerage Operations and Listing Agreements:
Broker Review of Advertising (rules):
Quiz:

If describing an acre of land for sale, all of the following must be advertised:

The property must identify the actual listing broker

The property is exactly 43,560 square feet

The advertisement must be reviewed by the broker

A

The property must identify the actual listing broker

The property is exactly 43,560 square feet

The advertisement must be reviewed by the broker

102
Q

Brokerage Operations and Listing Agreements:
Absence of Designated Broker:
* If the designated broker is unable to act within _________ Hours, the broker may designate a licensee in the broker’s employ or another designated broker to act on the broker’s behalf.
o The designation must be made in writing and may not exceed 30-days in duration.

A

24 Hours

103
Q

Brokerage Operations and Listing Agreements:
Absence of Designated Broker:
* If the designated broker is unable to act within 24 Hours, the broker may designate a licensee in the broker’s employ or another designated broker to act on the broker’s behalf.
o The designation must be made in writing and may not exceed _________ Days in duration.

A

30 Days

104
Q

Brokerage Operations and Listing Agreements:
Absence of Designated Broker:
o May perform any duties the designated broker may lawfully perform.
o Except that a salesperson may _________ be authorized to hire or fire licensees.

A

Not

105
Q

Brokerage Operations and Listing Agreements:
Absence of Designated Broker:
o A written authorization is required for _________ temporary absence by the broker.

A

Each

106
Q

Brokerage Operations and Listing Agreements:
Absence of Designated Broker:
 A salesperson may act as a branch or limited broker / manager.
 They can perform office tasks that are not statutory duties of the broker.
 Be a _________ on the broker’s trust account or management trust account.

A

Signer

107
Q

Brokerage Operations and Listing Agreements:
* _________:
o This occurs anytime the DB has died or becomes incapacitated.
o The replacement individual does NOT need to be licensed in AZ.

A

Temporary Broker

108
Q

Brokerage Operations and Listing Agreements:
* Temporary Broker:
o Temporary Brokers time period is _________ Days.
o IMPORTANT: Can be extended up to 15 Months Total Duration (in some cases).

A

90 Days

109
Q

Brokerage Operations and Listing Agreements:
* Temporary Broker:
o Temporary Brokers time period is 90 Days.
o IMPORTANT: Can be extended up to _________ Months Total Duration (in some cases).

A

15 Months

110
Q

Brokerage Operations and Listing Agreements:
* Temporary Broker:
o Used to wrap up ANY and ALL business broker had at time.
- No _________ Business Can Be Started.

A

New

111
Q

Designated Broker:
Quiz:

The duties of a designated broker may include…

Supervise the activity of all licensees

Review any and all contracts, offers, leases or addendums within 10 days from execution.

All advertising unmonitored and not approved by broker

Sign commission checks and collect/pay the E&O

A

Supervise the activity of all licensees

Review any and all contracts, offers, leases or addendums within 10 days from execution.

Sign commission checks and collect/pay the E&O

112
Q

Designated Broker:
Case Study:

If an agent fails to disclose that they are licensed in a transaction representing a client, what type of ad is this?

A

Agents MUST DISCLOSE that they are licensed in a transaction representing a client. If they fail to, it is known as a BLIND AD.

113
Q

Designated Broker:
Case Study:

What must a broker review?

A

Broker must review any contracts, offers, leases, or addendums within ten days from execution of all parties. The review looks at errors or omissions made by the agent or principals.

114
Q

Designated Broker:
Case Study:

When may a licensee legally perform most of a broker’s duties?

A

If the designated broker cannot act within 24 hours, the broker may select a licensee in the broker’s employ or another designated broker to work on the broker’s behalf.

115
Q

Designated Broker:
Case Study:

Why does a broker carry E&O Insurance?

A

Brokers carry an E&O Insurance Policy in case of lawsuits caused by their agents.

116
Q

Designated Broker:
Quiz:

Who is responsible for the licensing of agents in the State of Arizona:

Department of Real Education

Pierson Vue

School Facility

Department of Real Estate

A

Department of Real Estate

117
Q

Designated Broker:
Quiz:

All of the following are required to be part of the brokers review except which one?

All contracts were signed and dated

The sellers capacity to buy/sell

The listing date and end date

The seller has agreed in writing to allow a sign to be placed on the property

A

The sellers capacity to buy/sell

118
Q

Designated Broker:
Quiz:

Who has the capacity to act while the Designated Broker is gone for a period of more than 24 hours but less than 30 days:

Licensed Broker from out of State

Associate Broker

A State Appointed Designated Broker

All of the Above

A

Associate Broker

119
Q

Designated Broker:
Quiz:

The National Realtor Code of Ethics has strict standards, but will always come second to what:

Brokers authority

Supervising Brokers written instructions

State, local, or national law

Fiduciaries written instructions

A

State, local, or national law

120
Q

Designated Broker:
Quiz:

The document that all Realtors must adhere to and uphold the standards is the:

Code of Realtor Behavior

Code of Ethics

Administrative Code

Commissioners Code

A

Code of Ethics

121
Q

Designated Broker:
Quiz:

The MLS is designed to be:

A tool used by the public to narrow down their property search

A database used to advertise listings to other brokers with an offer to share compensation for a sale

Multiple Layered Sales or a way for brokers to share listing data

A way to syndicate listings to 3rd party sites

A

A database used to advertise listings to other brokers with an offer to share compensation for a sale

122
Q

Designated Broker:
Quiz:

By stating a property is an acre, the listing agent must have a property that is exactly how many square feet?

40,200

43,560

45,260

52,800

A

43,560

123
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
* Required to maintain Employment Records confirming the hiring, severing or license renewal of all current and former employees, including employment agreements for a period of _________ Years.

A

5 Years

124
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
* Broker is required to keep retained records of _________ transactions handled by or through the Designated Broker.

A

All

125
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
* _________:
These are to be kept in the principal office, licensed branch office in this state, or off-site storage location in this state.

A

Closed “Sale” Files

126
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
o A transaction is not considered “_________” until the buyer has been supplied with:
- Evidence of Title
- Delivery of Deed
- Accounting to the Seller of Consideration Coming to him
- Delivery of Possession of the Premises to the Buyer
* IMPORTANT: These files must be kept for a period of 5 years for all CLOSED files.

A

Closed

127
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
o A transaction is not considered “closed” until the buyer has been supplied with
- Evidence of Title
- Delivery of Deed
- Accounting to the Seller of Consideration Coming to him
- Delivery of Possession of the Premises to the Buyer
* IMPORTANT: These files must be kept for a period of _________ Years for all CLOSED files.

A

5 Years

128
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
o A transaction is not considered “closed” until the buyer has been supplied with:
1.
2.
3.
4.
* IMPORTANT: These files must be kept for a period of 5 Years for all CLOSED files.

A
  1. Evidence of Title
  2. Delivery of Deed
  3. Accounting to the Seller of Consideration Coming to Him
  4. Delivery of Possession of the Premises to the Buyer
129
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
* These files must be kept for a period of 5 years for all CLOSED files.
- Part of the file that brokers have to keep on file for 5 years is the _________ or _________.

A

Closing Settlement Statement or Final Settlement Statement

130
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
* Part of the file that brokers have to keep on file for 5 years is the CLOSING settlement statement or FINAL settlement statement – this is also the _________ to all parties.

A

Distribution of Funds

131
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
* For a period of _________ Year for all rejected or contracts that did NOT close or Rejected Files.

A

1 Year

132
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
* Brokers “_________” must be on ALL closed files.

A

Initial and Date of Review

133
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
o Closed files must have copies of:
- Contracts/_________
- Earnest Money Deposit Receipt
- Receipts
- Closing or Settlement Statements
- _________/Rental Agreements
- Escrow Instructions
- Listing Agreements

A

Addendum

Lease

134
Q

Brokerage Operations and Listing Agreements:
Broker Records and File Retention:
o Closed files must have copies of:
1.
2.
3.
4.
5.
6.
7.
8.

A
  1. Contracts/Addendum
  2. Earnest Money Deposit Receipt
  3. Receipts
  4. Closing or Settlement Statements
  5. Lease/Rental Agreements
  6. Escrow Instructions
  7. Listing Agreements
135
Q

Brokerage Operations and Listing Agreements:
Off Site Storage of Records:
* Records are to be maintained in the employing broker _________ in Arizona.

A

Office

136
Q

Brokerage Operations and Listing Agreements:
Off Site Storage of Records:
* A broker MAY store paper records at an off-site storage location in Arizona if the broker provides prior written notification of the street address of the off-site storage location to the _________.

A

Arizona Department of Real Estate (ADRE)

137
Q

Brokerage Operations and Listing Agreements:
Off Site Storage of Records:
* The broker is required to provide written notification to the Arizona Department of Real Estate (ADRE) if the broker stores _________ maintained records at an off-site location.

A

Electronically

138
Q

Brokerage Operations and Listing Agreements:
Off Site Storage of Records:
Case Study:

Unless otherwise agreed upon by ADRE and the broker, all files must be kept in the __________ of the employing broker.

A

Office

139
Q

Brokerage Operations and Listing Agreements:
Listings:
* All Listings belong to the Designated Broker and are between Broker and Seller this is _________ Parties.

A

2 Parties

140
Q

Brokerage Operations and Listing Agreements:
Listings:
o _________:
Seller or entity who owns the property being listed.

A

Principal [Client]

141
Q

Brokerage Operations and Listing Agreements:
Listings:
o _________:
Broker Hired represent the principal in this transaction.

A

Agent

142
Q

Brokerage Operations and Listing Agreements:
Listings:
* The agreement is a “_________” which means that the broker has limited authority to represent the principal and is authorized to conduct a single transaction.

A

Special Agency Agreement

143
Q

Brokerage Operations and Listing Agreements:
Listings:
* All brokers listings must be in writing and signed by the _________.

A

Principal

144
Q

Brokerage Operations and Listing Agreements:
Listings:
* Listing Agreement would outline both parties’ responsibilities, dates and terms.
* All listings must have an _________.

A

End Date

145
Q

Brokerage Operations and Listing Agreements:
Listings:

True or False; Records are to only be maintained in the employing broker office in Arizona, no exceptions.

True

False

A

False

146
Q

Brokerage Operations and Listing Agreements:
Bilateral and Unilateral Listing Contracts:
* _________:
One sided, only one party has to perform.

A

Unilateral Contract

147
Q

Brokerage Operations and Listing Agreements:
Bilateral and Unilateral Listing Contracts:
* _________:
Two sided, both parties have to perform.

A

Bilateral Contract

148
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* There are multiple types of listings, not all are legal in every state and it all depends on _________ gets paid a commission when a buyer is found for the property.

A

Who

149
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Right to Sell (ER):
o _________:
The listing agent will find a buyer and principal will pay a commission to the listing agent for finding a buyer.

A

Bilateral

150
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Right to Sell (ER):
o Most _________ type of listing in AZ.

A

Common

151
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Right to Sell (ER):
o Principal contracts with ONLY _________ agent to list the property for sale.

A

One

152
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Right to Sell (ER):
o Listing agent is _________ owed a commission no matter who finds a buyer.

A

Always

153
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Right to Sell (ER):
o No matter WHO finds the buyer, the listing agent still gets his or her listing commission as was agreed upon in the contract. This makes it _________.

A

Bilateral

154
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Agency (EA):
o Could be either _________ or _________.
- Depends on how it is structured.

A

Unilateral or Bilateral

155
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Agency (EA):
Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Agency (EA):
o Brokers don’t typically use these agreements as it’s POSSIBLE they won’t get _________.

A

Paid

156
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Agency (EA):
o Listing agent is owed a commission if they find a buyer or another agent brings a buyer
because the property was _________ in the MLS by the listing agent.

A

Listed

157
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Exclusive Agency (EA):
o IF the SELLER finds his own buyer, the seller does NOT _________ commissions to anyone.

A

Owe

158
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Open Listing > Unilateral:
The listing agent who finds the buyer gets _________, any other agent does not get paid if they don’t find a buyer (Agents are not obligated to perform, but the seller must perform by paying the agent who does bring a buyer).
o IF the seller find the buyer, the seller does NOT owe commissions to anyone.

A

Paid

159
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* Open Listing > Unilateral:
o Principal can hire multiple agents to solicit offers from buyers, but only the agent who brings a buyer to _________ on the transaction gets paid a commission.
o IF the seller find the buyer, the seller does NOT owe commissions to anyone.

A

Close

160
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
Open Listing is considered a _________ agreement.

A

Unilateral

161
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
Net Listing is considered a _________ agreement.

A

Bilateral

162
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
Net Listing > Bilateral:
Principal will sell _________ agent brings a buyer and then the agent gets paid.

A

When

163
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
Net Listing > Bilateral:
o This listing is illegal in most states BUT IT IS _________ in AZ.

A

Legal

164
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
Net Listing > Bilateral:
o Seller allows a listing agent to sell the property for any amount OVER what they are willing to _________. That amount is the commission to the agent.

A

Net

165
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
Net Listing > Bilateral:
o Rarely USED as it is commonly used to cheat principals out of money. This constitutes _________.

A

Fraud

166
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
* _________:
o Even though the listing is signed, it’s exclusive only if the listing is NOT put into the MLS.

A

Exclusive Listing

167
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
o _________:
This type of listing again doesn’t offer a buyer’s agent commission – it’s up to the listing agent alone to find the buyer and collect the commission.

A

No Broker Cooperation

168
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
o No Broker Cooperation:
o Duties of Seller’s Agent:
Same duties owed to the seller, but it may be much HARDER to find a buyer _________ cooperating buyers agents and marketing via the MLS.

A

Without

169
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
o No Broker Cooperation:
o Compensation to Buyer’s Agent:
If another broker brings a buyer, there isn’t any written agreement to compensate, so it is up to the agents to negotiate and _________ before the offer is submitted to a commission.

A

Agree

170
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
_________:
This means from start to finish, post up to post down, contract to close.

A

Full Service

171
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
_________:
- This means the seller agrees in writing to waive some of or all of the duties owed by the agent.

A

Limited Service

172
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
*_________:
- Listings that an agent will shop around to other agents via email, calls or brokers open parties.

A

Pocket Listing

173
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
*Pocket Listing:
- Not the best idea, as you are eliminating the full marketing of the MLS and could increase liability for failing to get the _________ price.

A

Highest

174
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
*_________:
New field added to the MLS where agents can list their properties to go LIVE for a future date.

A

“Coming Soon” Listing

175
Q

Brokerage Operations and Listing Agreements:
Types of Listings:
“Coming Soon” Listing:
- Buyer’s offer on a Coming Soon Listing:
Agents must present all offers to the seller just as if the property were in a _________ transaction.

A

Normal

176
Q

Types of Listings:
Quiz:

Which of these is NOT a form of listing?

Open Listing

Exclusive Agency

Partial Service

Pocket Listing

A

Partial Service

177
Q

Types of Listings:
Case Study:

After initiating an Exclusive Right to Sell (ER) listing, your client (the seller) meets a potential buyer at a restaurant and agrees to lower the home price by cutting out your commission since you had “nothing to do with” acquiring the buyer. Is this legal?

A

No it is illegal, no matter who finds the buyer, the listing agent still gets his or her listing commission as was agreed upon in the contract.

178
Q

Types of Listings:
Case Study:

With what type of listing would a seller be able to hire multiple agents and only pay the one who brings them the buyer? Are all agents required to perform?

A

In open listing, principal can hire multiple agents to solicit offers from but only the agent who brings a buyer to close on the transaction gets paid commission. Agents are not obligated to perform, but the seller must perform paying the agent who does bring a buyer.

179
Q

Types of Listings:
Case Study:

Why is a listing agreement between Principal and Broker, considered a special agency agreement?

A

“Special agency agreement” means that the broker has limited authority to represent the principal and is authorized to conduct a single transaction. All broker’s listings must be in writing and signed by the principal. Listing would outline both party’s responsibilities, dates, and terms.

180
Q

Types of Listings:
Case Study:

What is the difference between a Unilateral Contract and a Bilateral Contract?

A

A unilateral contract is one-sided; only one party has to perform, while the bilateral agreement is two-sided, and both parties have to perform.

181
Q

Types of Listings:
Quiz:

Which of the following is a Bilateral contract that would be used in real estate listings to ensure that the broker who lists the property gets paid no matter who finds the buyer:

Exclusive Right Listing Agreement

Open Listing Agreement

Net Listing Agreement

Exclusive Agency Listing Agreement

A

Exclusive Right Listing Agreement

182
Q

Types of Listings:
Quiz:

Brokers must initial and date all closed files and all files must be stored for a period of:

12 months

30 months

36 months

60 months

A

60 months

183
Q

Types of Listings:
Quiz:

Which of the following does a designated broker not have to review within 5 days from execution:

Contracts

Offers that were not accepted

Leases

None of these

A

None of these

184
Q

Brokerage Operations and Listing Agreements:
AAR Supplied And Approved Forms For Arizona Realtors®
_________:
o These are to be used solely and exclusively by members of the Arizona Association of Realtors®

A

AAR Arizona Listing Contracts

185
Q

Brokerage Operations and Listing Agreements:
Earnest Monies And Receipts:
* _________:
Money used to confirm acceptance of a contract.

A

Earnest Money Deposit

186
Q

Brokerage Operations and Listing Agreements:
Earnest Monies And Receipts:
* Earnest Money Deposit:
o Sometimes referred to as Good Faith Money.
o Money used as _________ damages if one party breaches the contract.

A

Liquidated

187
Q

Brokerage Operations and Listing Agreements:
Earnest Monies And Receipts:
* Earnest Money Deposit:
o You as an agent would be wise to not accept the Earnest Money, but instead, have the buyer deliver the money to escrow or have the escrow send a _________ to pick it up.

A

Courier

188
Q

Brokerage Operations and Listing Agreements:
Earnest Monies And Receipts:
* Earnest Money Deposit:
* Broker or Agent to place “Earnest Money” with either _________ or Escrow Company.
* UNLESS otherwise agreed to in writing by ALL parties to a transaction.

A

Brokers Trust Account

189
Q

Brokerage Operations and Listing Agreements:
Earnest Monies And Receipts:
* Earnest Money Deposit:
* A _________ MUST be sent to all parties once deposit is made and recorded as part of contract.

A

Receipt of Earnest Money

190
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
* _________ or _________ of clients funds is ILLEGAL in Arizona.

A

Conversion or Commingling

191
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
* This is one of the most often _________ for brokerage investigations and violations with the Arizona Department of Real Estate (ADRE).

A

Reasons

192
Q

Brokerage Operations and Listing Agreements:
Commingling:
*It is LEGAL for a Broker to use up to $_________ of their OWN MONEY to fund the general operating account as long as it is recorded and managed as such.

A

$3000

193
Q

Brokerage Operations and Listing Agreements:
Commingling:
*It is LEGAL for a Broker to use up to $3000 of their OWN MONEY to fund the _________ as long as it is recorded and managed as such.

A

General Operating Account

194
Q

Brokerage Operations and Listing Agreements:
Commingling:
o _________:
Mixing a client’s funds with your own personal funds, which makes it difficult to determine WHICH funds belong to who.

A

Commingling

195
Q

Brokerage Operations and Listing Agreements:
Commingling:
 In commingling, the licensee mixes or COMBINES his/her client’s money with his/her own but does not change the intended purpose of the funds. This is considered _________.

A

Fraud

196
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
o _________:
Taking the client’s money and depositing those funds directly into one’s own accounts and using that money for their OWN purposes.

A

Conversion

197
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
o Conversion:
 In conversion, the licensee DIVERTS the client’s money to the licensee’s own use thereby changing the intended use of the money. This is considered _________.

A

Embezzlement

198
Q

Conversions And Commingling:
Quiz:

True or False; The conversion or commingling of a clients funds is legal in the state of Arizona.

True

False

A

False

199
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Case Study:

What is earnest money used for?

A

Earnest Money is used to confirm acceptance of a contract. Sometimes, it is referred to as Good Faith Money. Earnest Money is used as liquidated damages if one party breaches the contract.

200
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Case Study:

What are the only two types of accounts that earnest money may be placed into?

A

Broker or Agent to place earnest money with either Brokers Trust Account or Escrow Company.

201
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Case Study:

What is the difference between conversion and commingling?

A

Commingling is mixing a client’s funds with your funds, which makes it challenging to determine which funds belong to whom. However, conversion is taking the client’s money, depositing those funds directly into one’s accounts, and using that money for their purposes.

202
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Case Study:

Are either one of these legal in Arizona?

A

No, Conversion or Commingling of clients’ funds is illegal in Arizona.

203
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Quiz:

All of the following are required to be part of the brokers review except which one?

All contracts were signed and dated

The sellers capacity to buy/sell

The listing date and end date

The seller has agreed in writing to allow a sign to be placed on the property

A

The sellers capacity to buy/sell

204
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Quiz:

A real estate broker was found guilty of receiving money illegally as part of a real estate deal. Which of the following could be a reason that real estate broker was found guilty?

The agent received a referral from another broker

The agent received money from a broker other than his/her own

The agent received money from the home warranty company that was on the settlement statement

All of these are illegal

A

The agent received money from a broker other than his/her own

205
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Quiz:

The designated broker hires three new agents in one month. The designated broker has a commission sharing plan of 80/20 for the first 2 commissions in a month and then a 90/10 split for all remaining commissions in that same month. If 3 agents had 3 transactions that averaged $6800 per transaction what would the designated broker receive that month:

$4080

$2040

$6800

$10,200

A

$10,200

206
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Quiz:

The listing that a seller would most likely want to have where they specify the terms of how much they walk away with after selling and paying commissions would be what?

Exclusive Right

Exclusive Agency

Net Listing

Open Listing

A

Net Listing

207
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Quiz:

The newly licensed agent from Sunshine Realty has a client who wants to make an offer to purchase a property after a week of showings. Agent Sally would most likely use forms from what source:

State Licensing authority

Her Broker

The National Association of Realtors

States Real Estate Association

A

States Real Estate Association

208
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Quiz:

The earnest money in a transaction would be awarded to the party who did not breach the contract but suffered from the other parties actions or non-actions. What type of damages did the party recover:

Punitive

Liquid

Asset

Consent

A

Liquid

209
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Quiz:

Broker Stan is the Designated Broker for Stealin Stans Realty. He instructs all of his agents to place clients Earnest Monies into the companies’ trust fund to be held during the escrow period. Stan also uses that same trust fund to pay the commissions and operating expenses for the brokerage. This is:

Conversion

Commingling

Mixing

Fraud

A

Conversion

210
Q

Brokerage Operations and Listing Agreements:
Conversions And Commingling:
Quiz:

Pocket Listings are:

A way to keep more commission

Blind Ads

Exclusive to the listing Firm only

Not placing the listing in the MLS

A

Not placing the listing in the MLS

211
Q

Agent Commissions Math:
Commissions:
It’s the one word that all agents know and the one type of math that everyone will be sure to recall how to do! Nearly all commissions will use the T. Here are the most common examples of commission math you will see on the tests.

A
212
Q

Agent Commissions Math:
Thunder Dan the Man has sold his first property! He has a 80/20 commission split with his mentor and an office fee of $195. The sales price of the home was $420,000 and the agreed upon commission was 3%. What did Thunder Dan the Man receive?

A
  • $420,000 x .03 (3%) = $12,600
  • $12,600 - $195 (office fee) = $12,405 (gross commission)
  • $12,405 x .80 (80%) = $9,924
    ANSWER: Thunder Dan received $9,924
213
Q

Agent Commissions Math:
Randy Traps just received a check for $11,380 and since he is his own broker, he keeps 100% of that commission. The property sold for $405,200. What was the commission rate?

A
  • $11,380 ÷ $405,200 = .028
    o 2.8% was the commission rate
214
Q

Agent Commissions Math:
Thompson Peaks Realty has an agreed upon split of 75/25 for the first $30,000 in commissions and 80/20 from $30,000 to $50,000 in commissions and then a 90/10 split for anything over $50,000. In her 1st year, agent Samantha Jones earned sold $3,180,000 worth of real estate. What did she take home assuming that the commission was 3% on all
transactions?

A
  • $3,180,000 x .03 = $95,400
  • 75% x $30,000 = $22,500 (Tier 1 $30,000 at a 75/25 split)
  • 80% x $20,000 = $16,000 (Tier 2 from $30,000 to $50,000 at 80/20 split)
  • 90% x $45,400 = $40,860 (Tier 3 from $50,000 and up at 90/10 split)
  • $22,500 + $16,000 + $40,860 = $79,360
    o Use the T and don’t forget to look at how they tier their commissions!
     Samantha Jones earned $79,360
215
Q

Agent Commissions Math:
Jefferson Davis sold a section of land in Lake Havasu City. The total commission was $27,500 and the agreed commission was 5%. What was the sales price?

A
  • $27,500 ÷ .05 (5%) = $550,000
    o Work the problem backwards
    o $550,000 x .05 = $27,500
     The sales price was $550,000
216
Q

Agent Commissions Math:
Brokers Only Nevada has 20 agents who in all earned an average of $91,200 last year. Each agent has an 80/20 split. What was the average total commission for each agent before the splits?

A
  • $91,200 = .80 x (?)
  • $91,200 ÷ .80 = $114,000
    o The average total commission was $114,000
217
Q

Agent Commissions Math:
BuildersAZ has a sales staff that agreed to earn 2% commission on the first $500,000 in real estate sold, 4% on anything over $500,000. If agent Brian sold $612,000 that month what would he have earned?

A
  • $500,000 x .02 = $10,000
  • $612,000 - $500,000 = $112,000
    o $112,000 x .04 = $4480
     $10,000 + $4,480 = $14,480
  • Brian would have earned $14,480
218
Q

Brian has an opportunity to go work for BuildersNV. They offer a flat 3% commission on all
transactions. How much more or less would Brian make if he goes to work at BuildersNV?

A
  • $612,000 x .03 = $18,360
  • $18,360 - $14,480 = $3,880
    o $3,880 MORE if goes to work w/ BuildersNV
219
Q

On a recent flip, an investor offered a 6% total commission in an Exclusive Agency listing.
He ended up selling the house to a friend that he knew from work. The sales price was
$235,000. How much did he end up paying in commissions and to who?

A
  • We must remember that an EA (exclusive agency) if the seller procures their own buyer,
    then no commission is paid!
    o The answer is $0.00 commission

A Real Estate Agent Concepts (25 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions