unit 8

Question 1

What is brokerage

Answer 1

the business of bringing parties together.

Question 2

What does a brokerage need to be lisenced

Answer 2

a physical address

Question 3

Can a sales associate make contracts with or receive compensation from any other party

Answer 3

no

Question 4

What are the three requirements must be met for a sales associate to establish a nonemployee status with the employing broker for tax purposes:

Answer 4

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.

Question 5

Who are real estate assistants

Answer 5

a combination office manager, marketer, organizer, and facilitator

Question 6

What are some things that an unlicensed ass do

Answer 6

clerical tasks, office management, website development and maintenance, and production of marketing pieces

Question 7

What are some things that an licensed ass do

Answer 7

they can also set up and host open houses and assist in all aspects of a real estate transaction

Question 8

What are the forms of compensation a broker can give the sales associate

Answer 8

commission
hourly rate
flat fee

Question 9

What is necessary to be compensated for a sale

Answer 9

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.

Question 10

What does it mean to be the procuring cause

Answer 10

the broker or the broker’s sales associate must have started an uninterrupted chain of events that resulted in a sale.

Question 11

What are some events that fit into the procuring cause definition

Answer 11

hosting open houses
placing an advertisement in the local real estate advertising magazine
making the property listing available on the internet,

Question 12

When is a broker entitled to a commission

Answer 12

when the seller accepts an offer from a ready willling and able buyer

Question 13

What is a ready willing and able buyer

Answer 13

one who is prepared to buy on the seller’s terms and is ready complete the transaction.

Question 14

What scenarios might the broker still be entitled to a commission even when the transaction wasnt completed

Answer 14

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

Question 15

What are the antitrust laws 8

Answer 15

price-fixing,
the group boycott,
allocation of customers,
allocation of markets, and
tie-in agreements.

Question 16

What are examples of price fixing

Answer 16

setting prices of commissions, fees and management

Question 17

Should discussions over commission rates or fees be discussed between people from different brokerages

Answer 17

no

Question 18

What is a group boycott

Answer 18

when two or more businesses conspire against another business or agree to withhold their patronage to reduce competition

Question 19

What is an example of a group boycott

Answer 19

refusing to show a competitor firms listings

Question 20

What are examples of allocation of customers or markets

Answer 20

real estate brokers agreeing to work only in scepcific geographic regions, price range or category of housing

Question 21

An individual who has suffered a loss because of an antitrust violation may sue for what type of damages

Answer 21

treble damages

Question 22

What are treble damages

Answer 22

three times the actual damages sustained.

Question 23

What is the NAR

Answer 23

national assoc. of realtors

Question 24

What website could I find data on new home construction, building material costs, and building permits issued

Answer 24

the national assoc. of home builders (nahb)

Question 25

What are some general laws that are typically found in internet advertising laws

Answer 25

All electronic communication by a real estate professional must include the professional’s name, office address, and broker affiliation.
Real estate professionals must disclose their license status on each page of a website that contains an advertisement.
The listing of only a sales associate’s name without the sponsoring broker’s name in an advertisement is prohibited.
An advertisement must be a true, current representation of the information it contains and not be misleading.

Question 26

What are the two acts that govern electronic contracting

Answer 26

the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-Sign).

Question 27

What are the UETA’s four key provisions

Answer 27

A contract cannot be denied its legal effect just because an electronic record was used.
A record or signature cannot be denied its legal effect just because it is in an electronic format.
If a state’s law requires a signature on a contract, an electronic signature is sufficient.
If a state’s law requires a written record, an electronic record is sufficient.

Question 28

What does E-Sign enforce

Answer 28

to make contracts, signature etc. legally enforceable regardless of the medium

Question 29

What laws prohibit unsolicited fax advertisement

Answer 29

Telephone Consumer Protection Act (TCPA), Junk Fax Prevention Act, and rules of the Federal Communications Commission (FCC)

Question 30

What law protects against junk emails

Answer 30

Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, known as the CAN-SPAM Act.

Question 31

What do commercial electronic mail need to have

Answer 31

an option to unsubscribe to future messages