Unit 8 - Real Estate Brokerage

Question 1

Whey are there Real Estate license laws

Answer 1

To protect the public by ensuring a standard of competence and professionalism in the real estate industry

Question 2

Real Estate laws protect the by public by doing what 3 things

Answer 2

• establish basic requirements for obtaining a real estate
  license, and require continuing education
• defining which activities require licensing
• describing the acceptable standards of conduct and practice
  for licensees
• enforcing those standards through a disciplinary system

Question 3

What is a licensing authority

Answer 3

commission, department, or division for real estate professionals. Has power to issue licenses, make real estate information available to licensees and the public, and enforce the statutory real estate law

Question 4

What is a sales associate

Answer 4

Might be licensed as a real estate broker who simply chooses to work for another broker rather than set up an independent brokerage.

Question 5

What is an Employing Broker

Answer 5

The broker for who the salesperson works for

Question 6

What is a managing broker

Answer 6

also called the supervising broker, is responsible for supervision of the real estate professionals who act on behalf of the brokerage.

Question 7

What is an employee

Answer 7

Requires specific working hours, office routines, attend sales meetings, sales quotas, etc. Employer is required to withold social securityt taxes and income taxes (W2)

Question 8

What is an independent contractor

Answer 8

operates with more independence than employee, and employer may not exercise the same degree of control over. Employer does not pay SS or taxes (1099)

Question 9

Under the Qualified Real Estate Agent category what 3 requirements need to be met to establish nonemployee status

Answer 9

• sales associate must have a current real estate license
• sales associate must have written contract stating will not be
  treated as employee for federal tax purposes
• substantial portion of income must be based on sales
  production and not on the number of hours worked.

Question 10

What can an unlicensed real estate assistant do

Answer 10

clerical tasks, office management, website development, marketing, with little to no contact with consumer

Question 11

What can a licensed real estate assistant do

Answer 11

set up and host open houses, and assist in all aspects of real estate transaction, including day-to-day contact with consumers

Question 12

What is a commission

Answer 12

compensation in form of percentage of total sales price, or a flat fee, or an hourly rate

Question 13

When is a commission paid

Answer 13

when the sale is consummated by delivery and acceptance of the seller’s deed

Question 14

What 3 requirements are needed to be entitled to receive compensation from a real estate transaction

Answer 14

must be:
- licensed real estate broker
- employed by the buyer or seller under a valid contract
- procuring cause of the sale

Question 15

what is meant to be a procuring cause

Answer 15

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

Question 16

What is a ready, willing, and able buyer

Answer 16

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

Question 17

What is a 100% commission plan

Answer 17

sales associate pays a monthly charge to broker for office space, phone, and supervision, but keeps 100% of commission

Question 18

What is a graduated commision split

Answer 18

based on sales associate’s achieving specified production goals

Question 19

What does it mean to bundle and unbundle services

Answer 19

bundle is to give full service to clients, such as helping prepare property for sale, assist in marketing, perfrom CMA, consult.
unbundle is to give limited services

Question 20

What are the 3 requirements for minimum level of services

Answer 20

• accept delivery of and present offers and counteroffers to the
  client
• assist the client in developing , negotiating, and presenting
  offers and counteroffers
• anser the client’s questions about offers, counteroffers, and
  contingencies

Question 21

What is a fee-for-service concept

Answer 21

using a flat fee or hourly rate to create marketing opportunites for specifice services, such as preparing a property for sale, but can also lead to a recognition by the consumer of the real estate professional’s knowledge and experience

Question 22

What is the Sherman Antitrust Act

Answer 22

federal law that provides specific penalties for illegal business practices.

Question 23

What are the 4 Antitrust violations

Answer 23

• Price Fixing
• Group Boycott
• Allocation of Customers or Markets
• Tie-In Agreements

Question 24

What is Price Fixing

Answer 24

Competitors agree to set prices or other terms and conditions for products or services rather than letting competition in the open market establish those prices

Question 25

What is a Group Boycott

Answer 25

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

Question 26

What is Allocation of customers or markets

Answer 26

involves agreement between real estate brokers to divide their markets and refrain from competing for each other’s business

Question 27

What are Tie-In Agreements

Answer 27

To sell one product only if the buyer purchaes another product as well.

Question 28

What are penalties for violating Sherman Antitruct Act

Answer 28

maximum $1 million dollar fine and up to 10 years in prison. Corporations can be fined up to $100 million

Question 29

What is NAR

Answer 29

National Association of Realtors, larges trade organization in real estate. Trademarked word REALTOR

Question 30

What are Ethics

Answer 30

Syestem of moral principles, rules, and standards of conduct

Question 31

What 2 things do ethics in real estate do

Answer 31

• establish standards for integrity and competence in dealing
  with consumers
• define a code of conduct for relations within the industry
  among its professionals

Question 32

What is the Internet Data Exchange (IDX) policy

Answer 32

Allows all MLS (multiple listing service) members to have equal rights to display MLS data (on their website)

Question 33

What are 3 internet advertising stipulations

Answer 33

• electronic communication must include professional name, office address and broker affiliation
• disclose their license status on each page of a website that contains an advertisement
• advertisement must be a true, current representation of the information it contains and not be misleading

Question 34

How is electronic contracting beneficial

Answer 34

it quickly and efficiently integrates information in a real estate transaction between clients, lenders, and title and closing agents

Question 35

What two federal acts govern electronic contracting

Answer 35

(UETA) Uniform Electronic Transaction Act and (E-Sign) Electronic Signatures in Global and National Commerce Act

Question 36

National Do Not Call Registry does not pertain to what 4 things

Answer 36

political organizations, charities, collection agencies, telephone surveyors

Question 37

What 2 circumstances exlude the No Call list for real estate professionals

Answer 37

-if have established business relationship with consumer may call 18 months after last buy/sell
- may call consumer for up to 3 months after the consumer makes an inquiry or submits an application