Unit 8: Real Estate Brokerage Flashcards
Are there many choices in brokerages?
Yes
What kind of fees do brokerages pay?
Brokerages may also have franchise fees, brokerage fees and ad fund fees
How are comission plans offered?
There are many choices for commission plans offered by brokerages from 100% commission plans that brokers pay a monthly fee and commission split plans.
Good ideas to choose Real Estate Brokerages
Interview companies to determine if the brokerage will meet your needs as a new broker.
Determine the annual cost to be with the brokerage including office expenses, commission splits, franchise fees etc.
What is the office atmosphere
How available is the supervising broker
What training is offered
What marketing resources and administrative support and resources does the broker offer
What will the brokerage expect of you in terms of time and sales expectations as a new broker
Do real estate assistants need license?
No
What can’t real estate assistants say?
If a real estate assistant is going to show property or host an open house, they cannot discuss topics or the property that would require a license. They can provide a flyer and the agent contact information.
Some brokerages will not provide lock box information to anyone that does not have a license.
What is are Antitrust Laws
The Sherman Antitrust Act is a federal law that prohibits monopolies, arrangements that constrain trade.
Most common activities the Antitrust laws applies are:
price fixing,
group boycotts
allocation of markets
tie in agreements
What is Price Fixing:
EXAMPLE: Saying “No the commission rate is the same for everyone so I won’t move it.”
The practice of setting prices rather than letting the market and competition set prices.
Price fixing is illegal.
Brokers must never leave a customer with the impression that there is a “standard” commission.
Each individual broker establishes a commission based on services etc.
What is Group Boycotting:
EXAMPLE: Two brokerages agree not to offer compensation to buyer brokers from a competing broker.
Two or more businesses work together to eliminate the competition from a third business.
Group boycotting is illegal.
What’s Allocating Customers:
EXAMPLE: Two brokerages agree that one brokerage will work with one price range and another will work with another price range.
Two or more businesses decide that certain business niches or territories belong to one business and others belong to the other business.
What’s Tie in Agreements:
In order to purchase one good or service, the customer must purchase another good or service.
Fines for violating Sherman Antitrust Laws are up to a $1 million dollar fine and 10 years in prison.
What is the Do No Call Registry:
The do not call registry is maintained by the Federal Trade Commission
A real estate licensee may call a past client up to 18 months from the completion of the transaction.
A real estate licensee may call a consumer for up to three months after the consumer makes an inquiry.
Telemarketers must check the list every 31 days and drop registered phone numbers from their calling lists.
