Unit 9 Real Estate Brokerage

Question 1

Real estate license laws protect the public by ensuring competence and professionalism . The laws achieve this goal by

Answer 1

Establishing basic requirements for obtaining a real estate license and requiring continuing education to keep a license.

• defining which activities require licensing
• describing the acceptable standards of conduct and practice for licensees
• enforcing those standards through a disciplinary system

Question 2

Maintaining space and equipment

• hiring licensed real estate professionals as well as un licensed support staff.
• determining compensation
• directing staff
• implementing procedures for licensees to follow

Answer 2

The real estate broker operation should handle

Question 3

The real estate professional who’s responsible for supervision of the real estate professionals who act on behalf of the brokerage

Answer 3

Managing broker (supervising broker)

Question 4

Works for them selves, pays for all expenses and social security and income taxes , receives no employee benefits.

Answer 4

Independent contractor

Question 5

Someone who works for an employer and has employee status . The employer is obligated to withhold income taxes and social security taxes from compensation

Answer 5

Employee

Question 6

Combination of office manager , marketer, organizer and facilitator who has a fundamental understanding of the real estate industry

Answer 6

Real estate assistant … personal assistant ….professional assistant

Question 7

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

Answer 7

A licensed assistant

Question 8

Specified in the contract with the client . The real estate license law ( statute of frauds) usually will require that there will be a written agreement to establish the ……… to be paid

Answer 8

Brokers compensation

Question 9

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

Answer 9

MLS multiple listing service

Question 10

The broker or the brokers sales associate must have started an uninterrupted chain of events that resulted in a sale .

Answer 10

Procuring cause

Question 11

One who is prepared to buy on the sellers terms and is ready to complete the transaction

Answer 11

Ready, willing and able buyer

Question 12

To be entitled to receive a compensation from a real estate sales transaction and person must be

Answer 12

A licensed real estate broker
Employed by the buyer or seller under a valid contract
The procuring cause of the sale

Question 13

Real estate broker may still be entitled to a commission if the seller ….

Answer 13

Has a change of mind and refuses to sell

• has a spouse who refuses to sign deed
• has a title with Un corrected defects
• committed fraud with respect to the transaction
• unable to deliver possession within a reasonable time
• insist on terms not in the listing
• has a mutual agreement with the buyer to cancel the transaction

Question 14

The services that real estate professionals must provide to clients .

Answer 14

Minimum level of services

Question 15

A comparison of the prices of recently sold homes that are similar to a listing sellers Home in terms of location , style , and amenities

Answer 15

Comparative market analysis (cma)