Unit 3 Flashcards
Does the trade name need to be larger than the broker name on advertising?
No.
What must appear on all advertising?
The firm’s name as registered with the Commission
Is a broker’s name, phone # and email required to be on adverting?
No.
Who is required to have reasonable supervision?
Broker’s with 2+ years of active experience
Who is required to have a high level of supervision?
Broker’s with 2- years of active experience
What must an office manual have?
The written office manual must have a method for designating brokers and what brokerage relationships are allowed to be offered in the brokerage firm
True or false? All contracts have to be reviewed before they go in a file?
True. Once executed.
What kind of supervision is and is not required for high level supervision?
- Attending, training, or being available to answer questions for all closings
- Does not require attending broker’s meeting with clients or mentoring them
Who can be left in charge when an employing broker leaves town?
Another qualified broker (not an unlicensed individual, such as an office manager)
What two ways can you be a licensee?
Independent contractor or employee
Describe an independent contractor
-No income taxes or payroll taxes
-Must have a signed independent contractor agreement
=No set schedule or paid vacation
Describe an employee
- A broker supervised by an employing broker may be an employee for federal income tax purposes
- The employing broker must withhold federal income tax and payroll taxes, such as Social Security from the paycheck of an employee license.
True or false? You can pay a referral fee to out-of-state inactive licensees?
- False. Only to active licensees with a business office.
- You can pay for a name, and only a name, and has performed no activities requiring a license.
What is it to rebate a commission?
Give back money in negotiation (i.e. if you agree to do more work for them so you get paid for that too)
What is a commission negotiation or renegotiation?
A licensee may rebate a commission to a buyer or a seller as part of the broker’s service. Payment to buyer should be disclosed to the seller and should comply with RESPA and HUD.
Can a licensee pay a fee to an unlicensed person for brokerage functions?
No.
What can an unlicensed assistant NOT do?
- Negotiating
- Independently drafting or filling in legal docs/contracts
- Offering opinions, advice, or interpretations
What CAN an unlicensed assistant do?
- Hold open houses and hand out brochures (can’t give info about price, advice, or confidential info)
- Prepare a market analysis (can’t give opinion of value)
- Measure sf of property (must disclose method)
- Sign checks on a trust account if authorized by responsible broker
- Perform clerical duties
- Distribute info on listed properties when info is prepared by the broker
- Fill in a contract and deliver it (without providing advice or opinions)
- Drive a buyer to a property
How many levels of appraiser licensing is in CO?
4
Who typically hires the appraiser?
The lender
CMA
Comparative market analysis
BPO
Buyers Price Opinion
Are you an appraiser if you do a CMA or a BPO
No.
What is Rule E-42?
Brokers doing a CMA or BMO that is not being used as part of a listing or buyer representation agreement must state that they are not appraisers
