unit 8 Flashcards
What is brokerage
the business of bringing parties together.
What does a brokerage need to be lisenced
a physical address
Can a sales associate make contracts with or receive compensation from any other party
no
What are the three requirements must be met for a sales associate to establish a nonemployee status with the employing broker for tax purposes:
The sales associate must have a current real estate license.
The sales associate must have a written contract with the broker that specifies that the sales associate will not be treated as an employee for federal tax purposes.
A substantial portion of the sales associate’s income as a real estate professional must be based on sales production or other output and not on the number of hours worked.
Who are real estate assistants
a combination office manager, marketer, organizer, and facilitator
What are some things that an unlicensed ass do
clerical tasks, office management, website development and maintenance, and production of marketing pieces
What are some things that an licensed ass do
they can also set up and host open houses and assist in all aspects of a real estate transaction
What are the forms of compensation a broker can give the sales associate
commission
hourly rate
flat fee
What is necessary to be compensated for a sale
an individual must be
a licensed real estate broker,
employed by the buyer or seller under a valid contract, and
the procuring cause of the sale.
What does it mean to be the procuring cause
the broker or the broker’s sales associate must have started an uninterrupted chain of events that resulted in a sale.
What are some events that fit into the procuring cause definition
hosting open houses
placing an advertisement in the local real estate advertising magazine
making the property listing available on the internet,
When is a broker entitled to a commission
when the seller accepts an offer from a ready willling and able buyer
What is a ready willing and able buyer
one who is prepared to buy on the seller’s terms and is ready complete the transaction.
What scenarios might the broker still be entitled to a commission even when the transaction wasnt completed
if the seller
has a change of mind and refuses to sell,
has a spouse who refuses to sign the deed,
has a title with uncorrected defects,
committed fraud with respect to the transaction,
is unable to deliver possession within a reasonable time,
insists on terms not in the listing (e.g., the right to restrict the use of the property), or
has a mutual agreement with the buyer to cancel the transaction
What are the antitrust laws 8
price-fixing, the group boycott, allocation of customers, allocation of markets, and tie-in agreements.
What are examples of price fixing
setting prices of commissions, fees and management
Should discussions over commission rates or fees be discussed between people from different brokerages
no
What is a group boycott
when two or more businesses conspire against another business or agree to withhold their patronage to reduce competition
What is an example of a group boycott
refusing to show a competitor firms listings
What are examples of allocation of customers or markets
real estate brokers agreeing to work only in scepcific geographic regions, price range or category of housing
An individual who has suffered a loss because of an antitrust violation may sue for what type of damages
treble damages
What are treble damages
three times the actual damages sustained.
What is the NAR
national assoc. of realtors
What website could I find data on new home construction, building material costs, and building permits issued
the national assoc. of home builders (nahb)
