Unit 8: Real Estate Brokerage Flashcards

Unit 8: Real Estate Brokerage Flashcards

All of the following are prohibited under the antitrust laws EXCEPTA) real estate companies agreeing not to cooperate with a broker because of the fees that the broker charges.B) a broker setting a company commission schedule.C) competing brokers allocating markets based on the value of homes.D) competing property management companies agreeing to standardized management fees.

• a broker setting a company commission schedule.A

broker may independently determine commission rates or fees for the firm only.A recent important change to real estate brokerage practice isA) digital communication in all its forms.B) fax transmissions.C) the use of electronic signatures.D) use of personal assistants.

• digital communication in all its forms.The smartphone,

tablet, and laptop computer have greatly enhanced the ability of real estate licensees to stay in contact with clients and customers. The use of online listings and other resources has made consumers much more active participants in the transaction.Which law has a feature that commercial email messages must include a means by which the recipient can unsubscribe?A) TCPAB) CAN-SPAM ActC) FCC ActD) COPPA

• 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.

A broker has established the following office policy: "All

listings taken by any sales associate of this real estate brokerage must include compensation based on a 7% commission. No lower commission rate is acceptable." If the broker attempts to impose this uniform commission requirement, which statement is TRUE?A) A homeowner may sue the broker for violating the antitrust law's prohibition against price-fixing.B) The broker must present the uniform commission policy to the local professional association for approval.C) The sales associates of the brokerage will not be bound by the requirement and may negotiate any commission rate they choose.D) The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.

• The broker may, as a matter of office policy, legally set

the minimum commission rate acceptable for the firm.Brokers have the right to set commissions within their own firm. This is not an antitrust violation. Sales associates who wish to continue with that broker can be required to comply.The federal law that makes contracts originated, negotiated, and executed over a combination of computer and cell phone enforceable isA) COPPA.B) CAN-SPAM.C) UETA.D) Junk Fax Prevention Act.

• UETA.The law sets forth basic rules for entering an

enforceable contract using electronic means. The primary purpose of UETA is to remove barriers in electronic commerce that would otherwise prevent enforceability of contracts.Sales associates who are paid in a lump sum and who are personally responsible for paying their own taxes are

probably treated for tax purposes asA) employees.B) independent contractors.C) transactional brokers.D) buyer's agents.

• independent contractors.Most real estate sales

associates (whether licensed as brokers or salespersons)

are said to be independent contractors. They receive gross earnings-paid as though they were self-employed-with no withholding of income taxes or employer contributions to Social Security or Medicare, workers' compensation, and unemployment insurance.The National Association of REALTORS® is composed ofA) state associations.B) state and regional associations.C) local associations.D) state, regional, and local associations.

• state, regional, and local associations.Many trade

organizations serve the real estate business. The largest is the National Association of REALTORS® (NAR), whose website is www.realtor.org. NAR is composed of state, regional, and local associations.The National Association of REALTORS®(NAR)A) is the largest real estate trade association in the country.B) has somewhat less than one million members.C) is the tenth-largest trade association in the country.D) is the second-largest trade association in the country.

• is the largest real estate trade association in the

country.The National Association of REALTORS® (NAR) is the largest real estate trade association in the country.A broker would have the right to dictate which of the following to an independent contractor?A) Work schedule the person would have to followB) Conduct in compliance with statutory law and regulationsC) Sales meetings the person would need to attendD) Number of hours the person would have to work

• Conduct in compliance with statutory law and

regulationsBrokers may dictate behavior as it complies to laws and regulations, but they may not dictate working schedules or attendance at sales meetings.Practical applications of the articles of the REALTORS® Code of Ethics are known asA) Covenants of Practice.B) Standards of Practice.C) Standards of Business.D) Covenants of Business.

• Standards of Practice.Practical applications of the

articles of the REALTORS® Code of Ethics are known as Standards of Practice.A broker can agree upon which of the following with an independent contractor?A) Number of hours the person would have to workB) Sales meetings the person would need to attendC) Compensation the person would receiveD) Work schedule the person would have to follow

• Compensation the person would receiveBrokers 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.Members of professional associations are expected to comply with theA) code of ethics as set forth by each organization.B) code of brokers.C) standard operating morals.D) code of standards.

• code of ethics as set forth by each

organization.Requiring members to comply with the standards of practice and code of ethics and setting forth consequences for noncompliance helps ensure a high level of professionalism from the organization and its members.Under the Sherman Antitrust Act, market allocation is punishable byA) up to a $3 million fine and 10 years in prison.B) a minimum $10 million fine and 5 years in prison.C) a minimum $1 million fine and 5 years in prison.D) up to a $1 million fine and 10 years in prison.

• up to a $1 million fine and 10 years in prison.Price-fixing

or market allocation is a violation of the Sherman Antitrust Act and, a penalty can be up to a maximum $1 million fine and 10 years in prison. For corporations, the penalty may be as high as $100 million.The Uniform Electronic Transactions Act encourages the use ofA) all of these.B) virtual brokerages.C) electronic signatures.D) licensed assistants.

• electronic signatures.This makes routine paperwork

more efficient.In order for a broker to be paid on an open listing, the broker mustA) split the commission with any other broker

that listed the property.B) notify all other listing brokers if they have an offer.C) put the property in MLS and offer other brokers a co-op.D) be the procuring cause of the sale.

• be the procuring cause of the sale.In an open listing, the

seller will only pay the broker who procures (brings) the