0.065 387,492. - can be solved using these two steps: Find the e...

MRE_Unit9 Flashcards

• $12,593.50 x 2 = $25,187 total commission$25,187 /

6.5% = 387,492.31The answer is $387,492. The problem

can be solved using these two steps:(1) Find the entire

commission by doubling the listing broker's half: 2 ×

$12,593.50 = $25,187.(2) Find the sales price by dividing

the entire commission by the brokerage rate: $25,187 ÷

0.065 = $387,492.

Hinting to prospective clients that there is a "going rate" of commission or a "normal" fee implies that rates are, in fact, standardized and isA)not a violation of antitrust laws.B)recommended by the National Association of REALTORS® to insure fair competition in maintaining fair fees.C)a violation of antitrust laws.D)a common practice allowed in most states.

Price-fixingIllegal Business Activities: Two or more businesses

conspiring against another business brokerageThe occupation or business of a real estate broker in Georgia. The business of bringing parties together.

• The answer is price-fixing. Antitrust laws prohibit group

boycotting, allocation of customers and markets, tie-in agreements, and price-fixing. Price-fixing is when competing brokers set a standard commission rate.Regarding internet advertising, brokers shouldA)disregard policies and laws that regulate this type of advertising.B)follow NAR's internet data exchange policy only.C)develop websites without taking into consideration laws and regulations for internet advertising.D)follow NAR's internet data exchange policy and any state laws regarding such advertising.

• The answer is subject to negotiation between broker and

sales associate. There are no state laws or regulations regarding the method or amount of compensation that the sales associate can be paid.Sales associate A and sales associate B work for the same firm. They agree to divide their region into an eastern half and a western half; sales associate A will handle listings in the east, and sales associate B will handle listings in the west. Which statement is TRUE?A)The two sales associates are guilty of a group boycott with regard to other sales associates in their firm.B)The agreement does not violate antitrust laws.C)The two sales associates have violated the Sherman Antitrust Act and are liable for treble damages.D)The agreement constitutes illegal price-fixing.Antitrust Laws - ILLEGAL. An illegal agreement between competitors to set prices. 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. In real estate, price-fixing occurs when competing brokers agree to set sales commissions, fees, or management rates.procuring cause disclaimersA statement indicating no legal responsibility for information; no warranties or representations have been made.Membership provides that marketing opportunity, and the rules of the MLS set out the terms under which brokers agree to cooperate in a transaction, including the sharing of

the compensation earned. " National Do Not Call Registry combination office manager, marketer, organizer, and facilitator who has a fundamental understanding of the real

estate industry. Often works for a specific sales associate.Might be required to have a real estate license, depending on the tasks performed. Extend of assistance to the real estate broker or sales associate with transactions is determined by the state licensing law and regulations. Both the sales associate and licensed personal assistant are under the supervision of the employing broker. Can incur liability under the state licensing law, especially if that person conducts activities that require a real estate license.

Tasks: - An unlicensed assistant generally may perform

duties that include clerical tasks, office management, website development and maintenance, and production of marketing pieces, but with little direct contact with consumers. Working for a sales associate can be paid by the sales associate. - A licensed assistant, on the other hand, can also set up and host open houses and assist in all aspects of a real estate transaction, including day-to-day contact with consumers. Wworking for a sales associate must be paid by the employing broker. - OR depending on state laws/requirements Real estate broker

• The answer is two or more businesses conspire against

another business or agree to withhold their patronage to reduce competition. Group boycotting occurs when two or more businesses conspire against another business or agree to withhold their patronage to reduce competition.Group boycotting is illegal under the antitrust laws.Under the Sherman Antitrust Act, the penalty for a person found guilty of fixing prices or allocating markets isA)a maximum of $100 million.B)a maximum $1 million fine and 10 years in prison.C)$50,000 per transaction up to a maximum of $500,000.D)a minimum of $100,000.commissionPayment to a real estate professional for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property."B) $45,825\2 split commission with buyer/sellerBuyer total

commission: $22912.50$13,747.50*.6 = $13747.50The

answer is $13,747.50. Fifty percent of $45,825 is $22,912.50, and 60 percent of that amount is $13,747.50, which is the buyer's sales associate's compensation for the transaction.A broker can agree upon which of the following with an independent contractor?A)Work schedule the person would have to followB)Compensation the person would receiveC)Number of hours the person would have to workD)Sales meetings the person would need to attend fee-for-service (limited-service listing agreements)Many real estate professionals use either an hourly rate or a flat fee for particular services.

• The answer is do all of these. In communicating with

clients or consumers via email, best practices include using the subject line in a useful and helpful manner, avoiding spelling errors, responding promptly to all email messages, being specific and brief, and paying attention to the size of any file attachments. Real estate professionals should never send unsolicited email messages.A real estate sales associate, classified by the IRS as an independent contractor, receivesA)a negotiated share of commissions on transactions.B)company-provided health insurance.C)a monthly salary or hourly wage.D)a company-provided automobile.

• The answer is compensation the contractor would

receive. Brokers may agree upon the compensation that their independent contractors will receive for work not yet done, but they may not dictate working schedules or attendance at sales meetings.All of the following are required of a broker who is seeking to collect a commission for brokering the sale of a property EXCEPT.A)having a valid real estate broker's license.B)having had a contract of employment-an agency representation agreement.C)having been the procuring cause in the transaction or having an exclusive-right-to-sell agreement.D)complying with a commission rate set by a trade organization.Antitrust Laws - ILLEGAL. Agreements to sell one product only if the buyer purchases another product as well. A broker will agree to list a seller's home for sale only if the seller agrees to be represented by the broker in the purchase of a new home.Uniform Electronic Transactions Act (UETA)

independent contractorUnderstanding Brokerage: An analysis performed to assist

a seller in pricing a property

• The answer is consumers. The main objective of real

estate license laws is to make sure that the rights of purchasers, sellers, tenants, and owners are protected from unscrupulous or negligent practices.A sales associate took a listing on a house that sold for $329,985. The commission rate was 5%. A sales associate employed by another broker found the buyer. The seller's broker received 60% of the commission on the sale; the buyer's broker received 40%. If the seller's broker kept 30% and paid the seller's sales associate the remainder, how