Chapter 15 Flashcards
Real Estate Brokerage (15 cards)
Brokerage
bringing parties together to buy, sell, lease, or exchange property
Unlicensed Assistant
performs administrative tasks, no interaction with consumers interpreting real estate
Licensed Assistants
employed by brokers, agreement specifies level of compensation and activities; broker is ultimately responsible for actions of licensee and assistant
Salesperson
may only perform activities approved by the broker, and are paid by their employing broker
Liability in employer-employee relationship
employer can be responsible for actions of employee; respondeat superior
Liability in principal-agent relationship
principle becomes responsible for actions of agent
Liability in independent contractor relationship
solely responsible for their actions
Broker earns commission by: (2)
- finding a buyer that makes an offer to the seller that the seller accepts
- finding a buyer that makes an offer to the seller that matches seller’s listing criteria
Broker receives commission:
- at closing-final settlement
2. right after seller chooses no to sign agreement of sale
Commission
a percentage of the sale price, split between the broker and salesperson; listing broker and buying broker split commission
Antitrust Violations (5)
Price fixing Group boycotting Allocation of Customers Allocation of Markets Tie-in agreements
Price Fixing
setting prices (commission) rather than letting prices be determined through competition
Group Boycotting
businesses conspire against competitors to restrict competition
Allocation of Customers and Markets
agreement between brokers to divide markets and refrain from competing with each others business
Tie-in Agreements
requiring customers to “bundle” services
