Chapter 9-- Yellow Text Real Estate Brokerage

Question 1

Brokerage

Answer 1

the business of bringing parties together

Question 2

Real Estate Broker

Answer 2

licensed to buy, sell, exchange, or lease real property for others and to CHARGE A Fee for those services

Always FULLY Responsible for the actions performed in the course of the RE business by all persons licensed under the broker.

Question 3

Sales Associate

Answer 3

licensed as a RE salesperson or be a RE Broker who chooses to work for another broker (the Employing Broker)

Question 4

Managing Broker

Answer 4

is responsible for supervision of the RE professionals who act on behalf of the brokerage

Question 5

Qualified RE Agent Category

Answer 5

The IRS Code requires 3 things in order for a Sales associate to establish a non employee status with the employing broker for tax purposes:

1) current RE license
2) have a written contract with the broker that specifies that the individual will not be treated as an employee for federal tax purposes
3) a substantial portion of the individual’s income as a re professional must be based on sales production or other output and not on the number of hours worked.

Question 6

commission

Answer 6

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

It is earned when the work for which the RE broker was hired has been completed

Question 7

Delivery and Acceptence

Answer 7

when the sale is consummated

Question 8

Procuring Cause

Answer 8

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

Question 9

Ready, willing and able buyer

Answer 9

once a broker has secured a buyer that is R W A B (one who is ready to buy on the seller’s terms and is ready to take positive steps toward consummation of the transaction.

Question 10

Comparative Market Analysis (CMA)

Answer 10

an opinion of the property’s worth provided by the RE professional

Question 11

Antitrust laws

Answer 11

prohibit Monopolies, and any contracts, combinations and conspiracies among competitors that unreasonably restrain trade.

Question 12

Price-Fixing

Answer 12

the 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.

This happens when brokers agree to set sales commissions, fees or management rates.

IT IS Illegal!

Question 13

Group Boycott

Answer 13

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

IT IS Illegal!

Question 14

Tie -in-Agreements

Answer 14

agreements to sell one product only if the buyer purchase another product as well. The sale of the first product is tied to the purchase of a second product.

Question 15

Penalties

Answer 15

the penalty for price-fixing or allocations markets is a maximum of $1 million fine and 10 years in prison.

An individual may sue for Treble damages-up to 3 times the actual damages sustained.

Question 16

Electronic Contracting

Answer 16

a process of integration information electronically in a re transaction between clients, lenders, and title and closing agents. (Y 144) Must follow UETA and (E-Sign) which functions as the electronic transactions law in states that have not enacted UETA. and makes contracts (including signatures) and records legally enforceable,

Question 17

National Do Not Call Registry

Answer 17

a list of phone numbers from consumers who have indicated their preference to limit the telemarketing calls the receive.

Regulated by the Federal Trade Commission

Question 18

independent contractor

Answer 18

an employee who usually receives a commission with NO withholding for Social Security, income tax, and other purposes and has the freedom to set hours and accomplish goals

Question 19

Internet Data Exchange (IDX) Policy

Answer 19

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