Flashcards in Chapter 9-- Yellow Text Real Estate Brokerage Deck (19)
the business of bringing parties together
Real Estate Broker
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.
licensed as a RE salesperson or be a RE Broker who chooses to work for another broker (the Employing Broker)
is responsible for supervision of the RE professionals who act on behalf of the brokerage
Qualified RE Agent Category
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.
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
Delivery and Acceptence
when the sale is consummated
the broker or the broker's sales associate must have started an uninterrupted chain of events that resulted in a sale.
Ready, willing and able buyer
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.
Comparative Market Analysis (CMA)
an opinion of the property's worth provided by the RE professional
prohibit Monopolies, and any contracts, combinations and conspiracies among competitors that unreasonably restrain trade.
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!
occurs when tow or more businesses conspire against another business or agree to withhold their patronage to reduce competition.
IT IS Illegal!
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.
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.
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,
National Do Not Call Registry
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
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