Unit 8 Flashcards
What is the purpose of real estate state license laws?
to protect the public
If a personal assistant does not have a real estate license, can they hold an open house for you?
no
What is the most famous antitrust law?
Sherman Antitrust Act
National Do Not Call Registry
legislation that requires you check the registry if you are going to make solicitation calls
CAN-SPAM Act
act that says if you are going to be sending out emails to people, you have to identify who you are, specific subject line, and identify it as a solicitation add, and give people an opportunity to opt out of receiving any more emails
What is the purpose of real esatte license laws?
to protect the public
Are licensing laws statutory or federal?
statutory
How do real estate laws protect the public
- establishing basic requirements for getting a license
- High school graduate or completed GED
- Fingerprinted
- Purchase insurance
- Requirements for keeping license after you get it (continuing education, renewal fee)
- Define which activities require a license and which do not
- Standards of conduct and practices (ethics and morals)
- Enforcing standards through disciplinary system (TN State Commission)
Brokerage
business of bringing parties together in a real estate transaction
Real Estate Broker
real estate agent licensed to buy, sell, exchange or lease real property for others and to charge a fee for those services; Can own and run a real estate company
Requirements to qualify as an independent contractor
- Sales associate must have a current real estate license
- 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
Real Estate Assistant
a combination office manager, marketer, organizer, and facilitator who has the fundamental understanding of the real estate industry with good clerical, technological and communication skills
Commission
a percentage of the final sales price; negotiable amount
Is commission negotiable?
yes
Discount brokers
charge a lower commission for doing less work for seller
flat rate broker
flat rate no matter the price of listing
limited service brokerage
agent just puts listing in MLS and seller does the rest of the work, pays for them to list it
Multiple Listing Service
expose listing to other real estate firms for a cooperative transaction in the MLS
What has to happen for commission to be paid?
has to be a broker
Can an affiliate broker be paid directly by the consumer?
never
How does a broker receive compensation?
- be a licensed real estate broker
- employed by the buyer or seller under a valid contract
- procuring cause of sale
Procuring cause
started an uninterrupted chain of events that ultimately ended up in the sale
Ready, Willing and Able buyer
one who is prepared to buy on the seller’s terms and is ready to take positive steps towards consummation of the transaction
When are most commissions paid
at delivery and acceptance of seller’s deed
graduated compensation splits
based on a sales associate’s achieving specific production goals
Listing company
one who lists house for sale for seller
Selling company
one who gets buyer for sale of home
Comparative Market Analysis
way of assisting the seller in pricing the property by comparing it to similar properties
Limited Services have to have at least
- Accept delivery of and present offers and counteroffers to the client
- Assist the client in developing, negotiating, adn presenting offers and counteroffers
- Answer the client’s questions about offers, counteroffers, and contingencies
What do you have to disclose for homes built before 1978?
dead based paint form
Antitrust laws
federal laws that prohibit monopolies and any contracts, combinations and conspiracies among competitors that unreasonably restrain trade
What are the 4 major violations of antitrust
- Price fixing
- group boycotting
- allocation of customers or markets
- Tie in agreements
Price Fixing
when 2 or more brokers collectively agree to charge the same commission
Group boycotting
when 2 or more businesses conspire against another business or agree to withhold their patronage to reduce competition
Allocation of customers or markets
agreement between real estate brokers to divide their markets and refrain from competing for each other’s business
Tie in agreements
agreements to sell one product only if the buyer purchases another product as well
What are antitrust penalties
severe with fines up to $1,000,000 and 10 years in prison
How much can an individual who has suffered a loss because of an antitrust violation?
treble
Trade associations
rganizations that serve the real estate business
Code of Ethics
a written system of standards for ethical conduct
What do trade associations offer?
training, networking, designations, etc.
What’s the largest trade association?
National Association of Realtors®
How do you become a Realtor®
you take a course on the association then the code of ethics course (17 articles)
Internet Data Exchange (IDX)
for cooperative transactions on MLS; allows all MLS members to have equal rights to display MLS data while respecting the rights of the property owner and real estate broker
If you have a personal real estate website, what must be on each page of the website?
company name and telephone number
What must all advertisements be?
true, current and accurate
Electronic Contracting
most paperwork is done electronically now (including signatures)
Do not call act
solicitors cannot solicit people if they are on the do not call list
What are the do not call lists of TN
federal and state
How much can you get fined if you call someone on the do not call list?
$11,000 in Nashville and $2,000 in TN
