UNIT 8 REAL ESTATE BROKERAGE

Question 1

ANTITRUST LAWS

Answer 1

Laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Most violations of antitrust laws in the real estate business involve either price fixing or allocation of customers or markets.

Question 2

BOYCOTT

Answer 2

When individuals or businesses withhold their patronage to a business as a protest or to reduce competition.

Question 3

BROKERAGE

Answer 3

The bringing together of parties interest in making a real estate transaction.

Question 4

CODE OF ETHICS

Answer 4

A written system of standards for ethical conduct.

Question 5

COMMISSION

Answer 5

Payment to a real estate professional for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.

Question 6

DISCLAIMERS

Answer 6

A statement indicating no legal responsibility for information; no warranties or representations have been made.

Question 7

ELECTRONIC CONTRACTING

Answer 7

A process of integrating information electronically in a real estate transaction between clients, lender, and title and closing agents.

Question 8

ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT (E -Sign)

Answer 8

An act that makes contracts (including signatures) and records legally enforceable regardless of the medium in which they are created.

Question 9

EMPLOYEE

Answer 9

For tax purposes, someone who works as a direct employee of an employer and has employee status. The employer is obligated to withhold income taxes and social security taxes from the compensation of employees.

Question 10

INDEPENDENT CONTRACTOR

Answer 10

Someone who is retained to perform a certain act but who is subject to the control and direction of another only as to the end result and not as to which the way the act is performed. Unlike an employee, an independent contractor pays for all expenses and social security and income taxes and receives no employee benefits. Most real estate sales associates are independent contractors.

Question 11

INTERNET DATA EXCHANGE (IDX) POLICY

Answer 11

Policy that allows all multiple listing service (MLS) members to restrict internet access to MLS property listings.

Question 12

MANAGING BROKER

Answer 12

The real estate profession who is responsible for supervision of the real estate professionals who act on behalf of the brokerage; aka supervising broker.

Question 13

MINIMUM LEVEL OF SERVICES

Answer 13

The services that real estate professionals must provide to clients, as prescribed differently by certain states.

Question 14

MULTIPLE LISTING SERVICE (MLS)

Answer 14

A marketing organization composed of member real estate professionals who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most multiple listing services accept exclusive right-to-sell or exclusive agency listings from their member real estate professionals.

Question 15

PRICE FIXING

Answer 15

Real estate professionals conspiring to set fixed compensation rates.

Question 16

PROCURING CAUSE

Answer 16

The effort that brings about the desired result. Under an open listing, the real estate professional who is the procuring cause of the sale receives the compensation.

Question 17

READY, WILLING, AND ABLE BUYER

Answer 17

Person who is prepared to buy property on the seller’s terms and is ready to take positive steps to consummate the transation.

Question 18

UNIFORM ELECTRONIC TRANSACTIONS ACT (UETA)

Answer 18

Sets forth rules for entering into an enforceable contract using electronic means.