Unit 15

Question 1

Multiple Listing Service MLS

Answer 1

Increases a properties exposure to more buyers.

Question 2

Salesperson compensation

Answer 2

• completed sales contract has been executed by a ready willing and able buyer
• The contract has been accepted and executed by the seller
• copies of the contact are in possession of all parties
• licensed real estate broker
• procuring cause of sale
• employed by the buyer pr seller under a valid contract

Question 3

Procuring cause

Answer 3

The broker must have started an unbroken chain of events that ultimately result in a sale

• Open houses
• Ads
• showing house

Question 4

Not consummated but broker is still entitled to compensation when…

Answer 4

• seller has a change of mind and refuses to sell
• spouse who refuses to sign the deed
• title with uncorrected defects
• fraud
• possession not delivered in reasonable time
• insisted on terms not in the listing
• mutual agreement with the buyer to cancel the transaction

Question 5

Salesperson as an independent contractor

Answer 5

the broker is permitted to control what the independent contractor does but not how it is done.

• Individual must have a valid real estate license
• The licenses must have a written contract with the broker that specifies that the licensee will not be treated as an employee for federal tax purposes
• At least 90% of the individuals income as a licensee must be based on sales production, not on the number of hours worked.

Question 6

Sherman antitrust law

Answer 6

prohibits contracts or conspiracies that create monopolies

Question 7

Clayton act

Answer 7

prohibits exclusive tie in sales, price discrimination, and mergers and acquisitions that unfairly restrain trade. injured parties may be awarded up to three times the amount of damage sustained attorney fees and other litigation costs.

Question 8

Price fixing (illegal under antitrust law)

Answer 8

competitors setting prices for products or services rather than letting competition in the open market establish prices. Competing brokers agree to set uniform sales commissions, fees, or management rates. Brokers must independently decides on rates and fees for their offices. Do not say going rate or normal.

Question 9

Group boycotting (illegal under antitrust law)

Answer 9

When 2 or more businesses conspire against another business or agree to withhold their patronage to reduce competition.

Question 10

Allocation of customers or markets

Answer 10

allocations may be made on a geographic basis with brokers agreeing to certain territories within which they will operate exclusively.

Question 11

Tie in agreements (illegal under antitrust law)

Answer 11

Agreement to sell one product only on the condition that the buyer also purchase another product that is less desirable.

Question 12

Penalties of antitrust laws

Answer 12

Fine of up to 1 million and or up to 10 years imprisonment

corporations can be fined up to $100 million per offense.

Question 13

NAR policy

Answer 13

allows al MLS members have equal rights to display MLS data and it respects the rights of property owners and their listing real estate brokers to market a property as they wish. Blanket opt out provision allows those who do not want their listing on competitors websites can at the direction of a seller make an exception and display the sellers property in the MLS website.

Question 14

National do not call registry

Answer 14

real estate licensee can call consumers for up to 18 months after the consumers last purchase delivery or payment even if the customer is on the national do not call registry. they can call a consumer for up to 3 months after the consumer makes an inquiry or submits an application. If they request you do not call even with a business relationship this must be honored for 5 years.