Unit 8 Flashcards
Broker
Licensed to buy/sell/exchange/lease. May operate as sole proprietorship, partnership, corporation, LLC
Brokerage
May be independent or part of a regional or national franchise
Sales associate
salesperson or broker who is licensed to perform activities only on behalf of a licensed broker
Broker employer
Liable for actions of the sales associate within the scope of the employment agreement
Independent contractor
Employee who usually receives a commission, with no withholding for SS, income tax, and has freedom to set hours and accomplish goals
Employee
May receive salary in lieu of or in addition to commisson; may receive benefits, health insurance, profit sharing, worker’s comp. Employers set hours, duties, day to day work activities. Employers are held liable for employee’s action
Real estate agents and taxes
IRS requires to be treated as non employee for tax purposes
Real estate assistant
May be a licensed employee compensated by broker. If not licensed, paid by either sales associate/broker and is limited in the activities than can be undertaken
Broker’s compensation
Can be based on sale’s price, flat fee, or hourly rate
When is commission earned?
When seller accepts offer from a Ready, Willing, and Able buyer prepared to buy on the seller’s terms and ready to take positive steps towards consummation of transaction
Fee for services
Broker’s compensation is based on charges for separate activities that a client desires (unbundling of services)
Antitrust laws
Both state and federal. Sherman Antitrust Act prohibits monopolies and conspiracies that unreasonably restrain trade; including price fixing, group boycott, allocation of customers or markets, and tie in agreements
Price fixing
Group boycott
Allocation of customers or markets
Tie-in agreements
Force customers to purchase a product when only another was wanted
Internet Data Exchange (IDX) policy, of the National Association of REALTORS
Allows members to limit internet distribution of listing info.
Uniform Electronic Transactions Act
Electronic Signatures in Global and National Commerce Act (E-sign)
Electronic transactions law in states that have not enacted UETA and makes contracts, signatures, and records legally enforceable, regardless of the medium in which they were created
National Do Not Call Registry
Regulated by Federal Trade Commission lists phone numbers of consumers who have asked to be registered and prohibits interstate calls to sell goods or services
CAN-SPAM Act
COPPA
