Unit 8 Real Estate Brokerage Flashcards
When is a commission earned?
1-a completed sales contract has been executed by a ready, willing and able buyer.
2-the contract has been executed.
3-copies of the contract is in possession of all parties.
What is a real estate salesperson?
Any person licensed to perform real estate activities on behalf of a licensed real estate broker.
When is a brokers commission earned?
when the seller accepts an offer from a ready, willing, and able buyer prepared to buy the on the seller’s terms.
What is a ready, willing, and able buyer?
A buyer who is prepared to buy on the sellers terms and ready to complete the transaction.
Who determines a salespersons compensation?
It’s established by a mutually agreed upon rate by the salesperson, and the broker.
What is the definition of Minimum Level of Services?
1-accept delivery of and present offers and counter offers to the client.
2-assist the client in developing, negotiating, and presenting offers! and counter offers.
3-answer the clients questions about offers, counter offers, and contingencies.
What is an independent contractor?
Someone who works for a fee and not a wage.
IRS Rules:
1-Must have a current license.
2-Written contract with the broker.
3-90% of income must be based on production and not hours worked.
What are the types of antitrust violations?
Price fixing group boycotting allocation of customers allocation of markets tie in agreements.
What is price fixing?
The setting of prices for products or services, rather than letting the market decide.
What is a group boycott?
When two or more businesses conspire against another business to reduce competition.
What is an allocation of customers or markets?
An agreement between brokers to split the market. And not compete.
What is a tie in agreement?
One product only happens if they buy another.
What form of employment are most real estate licensees?
Independent contractors
How does an independent contractor differ from an employee?
Employees receive a a salary, usually have benefits and employer sets schedule and activities. IC does not receive a salary or benefits and can set their own schedule.
What are the requirements for a qualified real estate agent?
The IRS rules for an agent to be a nonemployee
