Real Estate Unit 9 Flashcards

Real Estate Unit 9 Flashcards Many states have modified the traditional terms broker and salesperson to stress that all licensees must be knowledgeable of and comply with the law. The person who performs licensed activities under the authority of a broker is frequently called a sales associate Under the Sherman Antitrust Act, the penalty for a person found guilty of fixing prices or allocating markets is a maximum $1 million fine and 10 years in prison.An owner tells a group of brokers, "I will pay a commission to whoever brings me a buyer." In this case, the broker who is going to get paid must be the procuring cause.Which law has a feature that commercial email messages must include a means by which the recipient can unsubscribe?CAN-SPAM ActThe federal Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, known as the CAN-SPAM Act, prohibits junk emails. An important feature of this law, which applies to commercial electronic mail messages, is that email solicitations must include a means by which the recipient can unsubscribe from future messages.All of the following are prohibited under the antitrust laws EXCEPTA)competing property management companies agreeing to standardized management fees.B)competing brokers allocating markets based on the value of homes.C)real estate companies agreeing not to cooperate with a broker because of the fees that the broker charges.D)a broker setting a company commission schedule.a broker setting a company commission schedule.An independent contractor and a broker can agree upon which of the following?A)Sales meetings the contractor would need to attendB)Work schedule the contractor would have to followC)Compensation the contractor would receiveD)Number of hours the contractor would have to work Compensation the contractor would receive Real estate license laws exist primarily to protectConsumers Administrative regulations that administer real estate license laws have the same force and effect as statutory law.Assuming that the listing broker and selling broker split their commission from a transaction equally, what was the sales price of the property if the commission rate was 6.5% and the listing broker received $12,593.50?$387,492(1) Find the entire commission by doubling the

listing broker's half: 2 × $12,953.50 = $25,187.(2) Find the

sales price by dividing the entire commission by the

brokerage rate: $25,187 ÷ 0.065 = $387,492.

The real estate industry, including all licensed real estate brokers and sales associates, is subject to Antitrust laws

Antitrust laws do NOT prohibit real estate salespersons within the same office agreeing on a standard commission rate.A licensed real estate salesperson has a written contract with his broker specifying that he will not be treated as an employee. The salesperson's entire income is from sales commissions rather than an hourly wage. Based on these facts, the salesperson is considered a(n) Independent contractor A real estate sales associate who is an independent contractor, as opposed to an employee, will have a substantial portion of the individual's income based on sales production or other output.To be entitled to receive compensation from a real estate sales transaction, an individual must be all of the following

EXCEPT

unrelated to either the buyer or the seller.A real estate sales associate has a license personal assistant who usually must be paid by the sales associate's employing broker.In order for a broker to be paid on an open listing, the broker must be the procuring cause of the sale.Commissions are negotiablein all cases 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 two sales associates have violated the Sherman Antitrust Act and are liable for treble damages.C)The agreement does not violate antitrust laws.D)The agreement constitutes illegal price-fixing.The agreement does not violate antitrust laws.A recent important change to real estate brokerage practice is digital communication in all its forms.Do-not-call registries and laws such as the Telephone Consumer Protection Act, Junk Fax Prevention Act, and rules of the Federal communications Commission dictate prohibited communications.The use of electronic signatures makes routine paperwork more efficient and has been encouraged by adoption by most states of the Uniform Electronic Transactions Act.