Unit 5 - Real Estate Brokerage Flashcards
Antitrust Laws
Laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Most violations of antitrust laws in the real estate business involve either price-fixing or allocation of customers or markets (real estate companies agreeing to limit their areas of trade or dealing to certain areas or properties).
Broker
One who acts as an intermediary on behalf of others for a fee or commission.
CAN-SPAM Act Of 2003
Establishes requirements for commercial email, spells out penalties for email senders, and gives consumers the right to have emailers stop sending emails to them.
Commission
Payment to a licensee for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.
Cooperative Commission
In Illinois, an arrangement whereby both the buyer’s and the seller’s real estate agents are paid by the seller.
Designated Managing Broker
A broker who has supervisory responsibilities for licensees in one or, in the case of a multi-office company, more than one office and who has been appointed as such by the sponsoring broker.
Employee
Someone who works as a direct employee of an employer and has employee status. The employer is obligated to withhold income taxes and Social Security taxes from the compensation of employees.
Errors And Omissions (E&O) Insurance
Business liability insurance that helps protect real estate professionals, individuals, or companies from bearing the full cost of the defense for lawsuits relating to an error or omission in providing covered professional services.
Fiduciary Standard
A legal standard that holds a licensee to the highest ethical standards that the law provides.
Group Boycotting
Two or more businesses conspiring against another business, or agreeing to withhold their patronage, in order to reduce competition.
Independent Contractor
Someone who is retained to perform a certain act but who is subject to the control and direction of another only as to the end result and not as to the way in which the act is performed. Unlike an employee, an independent contractor pays for all expenses, Social Security, and income taxes, and receives no employee benefits. Most real estate brokers are independent contractors.
Junk Fax Prevention Act Of 2005
A federal law under which unsolicited fax advertisements and solicitations may only be sent to persons with whom the sender has an established business relationship.
National Do Not Call Registry
A registry managed by the Federal Trade Commission that lists the phone numbers of consumers who have indicated their preference to limit the telemarketing calls they receive.
Price-fixing
Real estate companies conspiring to set fixed compensation rates.
Procuring Cause
The chain of events, without abandonment or estrangement, which leads to a sale on the seller’s terms. Under an open listing, the sponsoring broker who is the procuring cause of the sale receives the commission.
