Unit 9 Vocabulary

Question 1

Brokerage

Answer 1

is simply the business of bringing parties together

Question 2

managing broker

Answer 2

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

Question 3

employee

Answer 3

follow rules governing working hours, office routine, attendance at sales meetings, assignment of sales quotas, and adherence to dress codes.

Question 4

independent contractor

Answer 4

In most businesses, the employer’s relationship with a person who is an

Question 5

Commission

Answer 5

or broker’s fee (computed as a percentage of the total sales price), a flat fee, or an hourly rate.

Question 6

multiple listing service (MLS)

Answer 6

provides that marketing opportunity, and the rules of the MLS set out the terms under which brokers agree to cooperate in a transaction, including the sharing of the compensation earned.

Question 7

procuring cause

Answer 7

of a sale, the broker must have started or caused an uninterrupted chain of events that resulted in the sale.

Question 8

ready, willing, and able buyer

Answer 8

is one who is prepared to buy on the seller’s terms and is ready to take positive steps toward consummation of the transaction. A court may prevent the real estate broker from receiving a commission if the real estate broker knew the buyer was unable to perform

Question 9

minimum level of services

Answer 9

The range of services offered must always comply with state law, particularly those that may be viewed as the unlicensed practice of law. Some states also require a

Question 10

Antitrust Laws

Answer 10

antitrust laws
Antitrust Laws
Laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Most violations of antitrust laws in the real estate business involve either price-fixing (real estate professionals conspiring to set fixed compensation rates) or allocation of customers or markets (real estate professionals agreeing to limit their areas of trade or dealing to certain areas or properties).

Question 11

Price-fixing

Answer 11

is a practice in which 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 12

boycott

Answer 12

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

Question 13

Internet Data Exchange (IDX) policy

Answer 13

that allows all MLS members to have equal rights to display MLS data, while also respecting the rights of the property owner and the real estate broker who represents the property owner to market a property as they wish.

Question 14

disclaimers

Answer 14

indicate that the material on the site is solely for informational purposes and that no warranties or representations have been made.

Question 15

Electronic contracting

Answer 15

is a growing part of real estate practice because it quickly and efficiently integrates information in a real estate transaction between clients, lenders, and title and closing agents. The transactions are conducted through email or fax and can save both time and money.

Question 16

Uniform Electronic Transactions Act (UETA)

Answer 16

was created by the National Conference of Commissioners on Uniform State Laws,

Question 17

Electronic Signatures in Global and National Commerce Act (E-Sign).

Answer 17

was passed by Congress in 2000. E-Sign functions as the electronic transactions law in states that have not enacted UETA, and some sections of E-Sign apply to states that have enacted UETA.

Question 18

National Do Not Call Registry,

Answer 18

which is managed by the Federal Trade Commission (FTC).

Question 19

All of these are requirements for independent contractor status used by the Internal Revenue Service EXCEPT

Answer 19

specific hours stated in a written agreement.