Unit 8: Real Estate Brokerage Flashcards
What’s the purpose of real estate licensing laws?
- Establishes basic requirements of licensure and CE for keeping a license
- Defines what activities require licensing
- Describes acceptable standards of conduct and practice for licensees
- Enforces these standards through a disciplinary system
What is the goal of a real estate brokerage
To bring parties together purpose of buying, selling, exchanging, or leasing real property for others and to charge a fee for those services.
The term used for a broker having responsibility for the acts of the sales person
Vicarious liability
The broker’s compensation is specified in the contract with the client and is always negotiable, this payment is:
Commission
When a broker has started or caused an uninterrupted chain of events that resulted in a sale, this is considered
Procuring cause
If a transaction is not consummated, the real estate broker may still be entitled to a commission if the seller has met the following conditions
- 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 (i.e. right to restrict the use of the property).
- Has a mutual agreement with the buyer to cancel the transaction.
When two firms are involved in a real estate transaction, they are:
Co-brokers
The real estate industry is subject to these laws, known as:
Antitrust laws. At the Federal level, the Sherman Antitrust Act provides specific penalties for a number of illegal business activities.
The Sherman Antitrust Act includes the following violations
- Price Fixing
- The Group boycott
- Allocation of customers
- Allocation of markets
- Tie-in agreements
