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Flashcards in unit 8 Deck (31)
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1
Q

What is brokerage

A

the business of bringing parties together.

2
Q

What does a brokerage need to be lisenced

A

a physical address

3
Q

Can a sales associate make contracts with or receive compensation from any other party

A

no

4
Q

What are the three requirements must be met for a sales associate to establish a nonemployee status with the employing broker for tax purposes:

A

The sales associate must have a current real estate license.
The sales associate must have a written contract with the broker that specifies that the sales associate will not be treated as an employee for federal tax purposes.
A substantial portion of the sales associate’s income as a real estate professional must be based on sales production or other output and not on the number of hours worked.

5
Q

Who are real estate assistants

A

a combination office manager, marketer, organizer, and facilitator

6
Q

What are some things that an unlicensed ass do

A

clerical tasks, office management, website development and maintenance, and production of marketing pieces

7
Q

What are some things that an licensed ass do

A

they can also set up and host open houses and assist in all aspects of a real estate transaction

8
Q

What are the forms of compensation a broker can give the sales associate

A

commission
hourly rate
flat fee

9
Q

What is necessary to be compensated for a sale

A

an individual must be

a licensed real estate broker,
employed by the buyer or seller under a valid contract, and
the procuring cause of the sale.

10
Q

What does it mean to be the procuring cause

A

the broker or the broker’s sales associate must have started an uninterrupted chain of events that resulted in a sale.

11
Q

What are some events that fit into the procuring cause definition

A

hosting open houses
placing an advertisement in the local real estate advertising magazine
making the property listing available on the internet,

12
Q

When is a broker entitled to a commission

A

when the seller accepts an offer from a ready willling and able buyer

13
Q

What is a ready willing and able buyer

A

one who is prepared to buy on the seller’s terms and is ready complete the transaction.

14
Q

What scenarios might the broker still be entitled to a commission even when the transaction wasnt completed

A

if the seller
has a change of mind and refuses to sell,
has a spouse who refuses to sign the deed,
has a title with uncorrected defects,
committed fraud with respect to the transaction,
is unable to deliver possession within a reasonable time,
insists on terms not in the listing (e.g., the right to restrict the use of the property), or
has a mutual agreement with the buyer to cancel the transaction

15
Q

What are the antitrust laws 8

A
price-fixing,
the group boycott,
allocation of customers,
allocation of markets, and
tie-in agreements.
16
Q

What are examples of price fixing

A

setting prices of commissions, fees and management

17
Q

Should discussions over commission rates or fees be discussed between people from different brokerages

A

no

18
Q

What is a group boycott

A

when two or more businesses conspire against another business or agree to withhold their patronage to reduce competition

19
Q

What is an example of a group boycott

A

refusing to show a competitor firms listings

20
Q

What are examples of allocation of customers or markets

A

real estate brokers agreeing to work only in scepcific geographic regions, price range or category of housing

21
Q

An individual who has suffered a loss because of an antitrust violation may sue for what type of damages

A

treble damages

22
Q

What are treble damages

A

three times the actual damages sustained.

23
Q

What is the NAR

A

national assoc. of realtors

24
Q

What website could I find data on new home construction, building material costs, and building permits issued

A

the national assoc. of home builders (nahb)

25
Q

What are some general laws that are typically found in internet advertising laws

A

All electronic communication by a real estate professional must include the professional’s name, office address, and broker affiliation.
Real estate professionals must disclose their license status on each page of a website that contains an advertisement.
The listing of only a sales associate’s name without the sponsoring broker’s name in an advertisement is prohibited.
An advertisement must be a true, current representation of the information it contains and not be misleading.

26
Q

What are the two acts that govern electronic contracting

A

the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-Sign).

27
Q

What are the UETA’s four key provisions

A

A contract cannot be denied its legal effect just because an electronic record was used.
A record or signature cannot be denied its legal effect just because it is in an electronic format.
If a state’s law requires a signature on a contract, an electronic signature is sufficient.
If a state’s law requires a written record, an electronic record is sufficient.

28
Q

What does E-Sign enforce

A

to make contracts, signature etc. legally enforceable regardless of the medium

29
Q

What laws prohibit unsolicited fax advertisement

A

Telephone Consumer Protection Act (TCPA), Junk Fax Prevention Act, and rules of the Federal Communications Commission (FCC)

30
Q

What law protects against junk emails

A

Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, known as the CAN-SPAM Act.

31
Q

What do commercial electronic mail need to have

A

an option to unsubscribe to future messages