Course 1, Level 3 Quiz and definitions Flashcards

Course 1, Level 3 Quiz and definitions Flashcards ComminglingCommingling is the act of mixing the broker's personal or business funds with escrow funds. A broader definition of commingling includes the failure to deposit earnest money into escrow in a timely manner. In most states, commingling funds constitutes grounds for license suspension or revocation.collusionsecret agreement or cooperation, conspiracy ConversionConversion is the act of misappropriating escrow funds for the broker's business or personal use. More serious than

mere commingling, conversion is effectively an act of theft:

using monies which do not belong to the broker.Conversion carries serious consequences, including license revocation.Course 1, Level 3: The Brokerage Business a company that buys or sells goods or assets for clients.ComminglingA practice in which a person in a fiduciary capacity illegally mixes his/her personal funds with funds he/she is holding in trust.SyndicationInvestors pooling their resources to purchase real estate, usually through a limited partnership.The Brokerage Businessa company that buys or sells goods or assets for clients.GoodwillIn the business context, the valuable reputation of a business viewed as an intangible asset. Also, the intangible asset could refer to a long history of success, a dominant market share, or an excellent business location.A second definition of "goodwill" in business would be a tangible asset (to accountants), in that it is the value between an owner's price and the value of a ll other business assets.For example, if an owner wants $100,000 for a business, and the totality of tangible and intangible assets is valued at $80,000, the goodwill is now a $20,000 asset.Level 3 Quiz attempt 117 out of 20, Pass Score for this attempt: 17 out of 20Submitted Oct 21 at

10:08pmThis attempt took 53 minutes.Question 11 / 1

ptsWhich of the following best summarizes the critical skills in real estate brokerage?Communications, market knowledge, mathematics, and analysisSelling skills, law, and qualificationFiduciary dutiesListing, marketing, facilitating transactions, and managing informationQuestion 21 / 1 ptsReal estate sales agents are legally authorized torepresent their employing broker in procuring clients and customers.act directly on a client's behalf to discharge the broker's listing responsibilities.negotiate and execute

contracts for sale on behalf of the client.take on the listing responsibilities for other listings in MLS.Question 31 / 1 ptsConversion is the act ofmixing escrow funds with the broker's operating funds.appropriating client or customer deposits for use in the agency's business.converting an offer into a binding contract.converting escrow funds into equity funds in a property at the closing.Question 41 / 1 ptsWhich of the following is a valid distinction between a corporation and a proprietorship?A corporation has perpetual existence; a proprietorship terminates upon the owner's death.Proprietorships are liable for their actions, while corporations are not.Proprietorships may broker real estate, while corporations may not.Corporations are not subject to taxation, while proprietorships are.Question 51 /

• ptsA broker is reviewing the balance sheet of her new

listing to sell a business. Three of the entries on the books are licenses, trademarks, and goodwill. These would be examples oftangible assets.intangible assets.short-term liabilities.long-term liabilities.Question 61 / 1 ptsReal estate advertising is a regulated activity. One important restriction in placing ads isa broker may only place blind ads in approved publications.a broker must have all advertising approved by the proper state regulatory agency.the advertising must not be misleading.sales agents may only advertise in their own name.Question 71 / 1 ptsAn important distinction between an independent contractor salesperson (IC) and an employee salesperson isthe IC is responsible for taxes; the broker does not withhold.the IC must obtain his or her own training; it is not provided by the broker.the employee is not entitled to company benefits.the IC must abide by all office policies and meeting schedules.Question 81 / 1 ptsIn order to sell interests in a syndication, an agent mustobtain a Series 39 securities license.obtain a Series 22 securities license.obtain a real estate broker's license.obtain a syndicator's license.Question 91 / 1 ptsTwo real estate companies agree to conjoin their resources for the development and sale of an apartment complex, for which profits will be shared equally. This is an example ofa cooperative association.a real estate investment trust.a limited partnership.a joint venture.Question 100 / 1 ptsTwo leading agencies jointly agree to raise commissions charged a certain class of client to 8% of the sales price. Which of the following is true?This is a perfectly legitimate business practice.The brokers have illegally fixed prices.The brokers

have allocated markets.The brokers have engaged in legal collusion.Question 111 / 1 ptsWhat is co-brokerage?An owner agent and a buyer agent combine efforts to complete a sale.Outside brokers acting as subagents assist a listing agent in procuring a customer.An owner or buyer lists with several brokers to complete a transaction.Agents from a single agency cooperate to generate listings for the broker.Question 121 / 1 ptsIn marketing an owner's property, the objective of an agent's marketing plan is toactively participate in the multiple listing service.expose the property to the maximum number of prospects in relation to marketing expenses and efforts.ensure that a transaction occurs that will compensate the agent.convince prospects of the property's superiority over other properties.Question 131 / 1 ptsWhich of the following characterizes a real estate franchisee?A local brokerage owned and operated by a national franchisorA locally-owned brokerage affiliated with a national franchisor for purposes of enhanced image and resourcesA national brokerage company which charges local brokers fees for membershipA national firm which contracts with local franchisors to promote the national identityQuestion 140 / 1 ptsA syndication isa group of general partners who invest in and manage real estate for a profit.a group of inactive investors who join with a number of active partners to purchase, manage, and sell properties for a profit.a network of active brokers who purchase and sell properties.an organization engaged in illegal property acquisition and sale.Question 151 / 1 ptsThe three principal brokerage firms in a market agree to pay sales agents 15% more than any other competitor currently in practice. This is an example ofcollusion.price fixing.allocation of markets.steering.Question 160 / 1 ptsA salesperson's commission rate and structure is established bystate regulation.competitive conditions.agreement with other brokers in the market.negotiations with the client.Question 171 / 1 ptsCommingling is the practice ofblending escrow funds on a number of properties in one escrow account.mixing socially with prospects at open houses or other marketing functions.appropriating client or customer deposits for use in the agency's business.mixing escrow funds with the broker's operating funds.Question 181 / 1 ptsPricing property correctly is pivotal to marketing listings, becauseunderpriced properties do not require the broker's services.overpricing a property will lengthen the time

required to receive compensation for services.underpricing a property does not serve the best interests of a client.overpricing a property does not serve the best interests of customers.Question 191 / 1 ptsIn obtaining offers from a buyer, an agent must be careful topursue only those offers which are at or near the listing price.balance the owner's price expectations with the buyer's opinion of value.avoid disclosing what price the owner will acceptavoid completing offers that are beneath market value.Question 201 / 1 ptsIn business brokerage, the notion of goodwill is best defined asthe commitment by the agent to expend maximum effort on the listing.establishing pricing levels that will generate the good will of prospective customers.the value or price of the business over and above the value of its other assets.the portion of the sale

price that is depreciable.Quiz Score: 17 out of 20Last

Attempt Details:Time: 53 minutesCurrent Score: 17 out of

20Kept Score: 17 out of 20Unlimited AttemptsTake the

Quiz Again(Will keep the highest of all your scores) Marketing PlanThe best combination is one that aims to have maximum impact on the marketplace in relation to the time and money expended..co-brokerageA brokerage practice where agents and brokers outside of the listing broker's agency assist as sub-agents in procuring a customer in exchange for portions of the commission.franchised brokeragean independently-owned company that enters into a licensing arrangement with a franchisor to participate in various benefits offered in exchange for