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Flashcards in Chapter 5 and 21 Deck (67)
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What is brokerage?

is the business parties together


What happen on april 30 2012?

broker doesn't mean a real state salesperson or leasing agent. After that date however brokerage services will be between a sponsoring broker and consumer


What happened after april 30, 2012?

all licenses acting as managing broker, self sponsored broker must have a managing broker license or get one with in 90 days


Who is sponsoring broker?

the broker is the entity holding the company real estate license


what is have to do managing broker?

has take additional course and received a managing broker license


What is manger broker responsible for?

is responsible of all estate actives performed by affiliated licenses


What is manager also responsible for?

record keeping mandated, maintenance of the employment agreements entered into the each sponsored licenses and if the escrow monies are maintained for the managing broker


what are the three specific criteria of independent contractor set by the IRS?

1. must hold a active real estate license
2, must agree in writing not to be treated as an employee for tax purposes
3. at least 90% of income must come from sales


what are the two requirements for the stationary non employee for the IRS

1 payment for service must be directly related to sales and not number of hours worked
2 the workers have contracts specifying that will treated as regular employees for tax purposes


who is responsible for taxes?

independent contractor or you


what is the manger responsibilities?

has supervisory responsibility for the licenses one or more in the multi office company


Can a manager head more than one office?



What is Maintenance of licenses?

sponsoring brokers are required to notify IDFPR in writing of the name and licenses number of all managing broker is responsible, the manager must have current active managing broker license.


What happen is there is a loss managing broker?

a request may be to IDFPR within 15 days to grant as extension for continue office operation, the extension may granted up to 60 days


What happen with the death of the owner?

a representative of the estate could operate the office for up 60 days


What happen after 60 day after manager dies or sole owner dies?

there must be a manager, or all restate transaction must be finish after the owner dies


What happen with a death of self sponsored broker?

IDFPR will honor the order of court of competent jurisdiction appointing a legal representative for sole purpose of closing out the affairs of the deceased but not in new business


What happens with manager gets the renewals?

the manager must notify the licensee of the receipt in person with seven days or by registered mail with in ten days


What happens with change of address?

All manager must notify IDFPR on business letterhead of change of business within 24 hours of any change


What happened on may 1, 2012 for advertising?

all managers who are named as managers with the division must indicate this status on all advertising that includes their names


What happen when they hold manager license but not named as manager (for advertising)?

are not required to include their names. they may not represent or indicate that they are manger.


What are the duties of supervisory for manger?

1. implementation of the office polices and procedures established by the spooning broker
2. training of license or unlicensed assistant
3. assisting licenses as necessary in real estate transaction
4. supervising escrow accounts over which the sponsoring brokers has delegated escrow account provision of the Act
5. familiarizing sponsored license with the requirement of the federal and state laws relating to the practice of real estate
6. compliance with rules for licenses and offices user his supervision


how should a manual written as and what should it serve?

the manual should be written and should serve as a risk management tool for the company.


why are the manual good?

1. establishing a clear understanding of the relationship between and sponsor
2. working to resolve conflicts before they come up
3. building confidence that everyone know that the rules are show the company is supposed to operate
4. giving guidance for many the situations licenses face on a day to day basis


Should all sponsoring broker must have E&O insurance?



why should brokers should have E&O?

brokers are held to fiduciary standards


What is fiduciary standards?

is level standard that hold licensees to the highest standards that law will provide.


what is policy procession and covered services for E&O insurance?

A real estate licensees need insurance protection from claims made by clients and ect


what determines whether E&O policy address ?

1. services are covered
2. person is covered
3. damages are covered
4. defense are covered
5. territory is covered


What is defense cost for E&O insurance?

polices may sometimes pay the cost involved in investigating, defending and settling claims