Brokerage activities (continued)

Question 1

Sales associates must work under the supervision of a ____ or an _____

Answer 1

broker or an owner-developer

Question 2

All commissions, listings, and contracts are legal property of the _____

Answer 2

broker

Question 3

Monies earned by sales associates for real estate services must be paid by ____ and not by ____

Answer 3

their employer and not directly by buyers or sellers

Question 4

Can sales associates contract directly with customers or clients?

Answer 4

no

Question 5

What is the exception for sharing commission?

Answer 5

Commission can be shared with a party to the transaction with full disclosure in writing to all interested parties

Question 6

What is price-fixing?

Answer 6

When competing brokers conspire to establish a standard commission rate rather than let the rate be set by the open market

This is illegal and considered an antitrust law

Question 7

What is market allocation?

Answer 7

Market allocation is an agreement between brokers to split up competitive market areas among themselves and not compete in each other’s areas

This is illegal and considered an antitrust law

Question 8

Who can initiate an action for unpaid commission?

Answer 8

only the broker

Question 9

Can a sales associate sue a customer or client for unpaid commission?

Answer 9

no, the broker has to do it

Question 10

Who must be authorized in the contract to place a lien on residential real property?

Answer 10

a broker

Question 11

What can happen if a broker has an unauthorized recording of a lis pendens or a lien that affects the title of residential real property?

Answer 11

The broker’s license may be suspended or revoked