Ch. 5 Re Brokerage

Front 1

sponsoring broker

Back 1

the entity holding the company RE license.

Front 2

managing broker

Back 2

has taken additional courses and received a managing broker license.

Front 3

written employment agreement

Back 3

for every hire there should be a written employment agreement that defines the employment or independent contractor relationship, including supervision, duties, compensation, and termination.

Front 4

employees

Back 4

a sponsoring broker is required by federal law to withhold Social Security tax and income tax from wages paid to those employees.

Front 5

independent contractor criteria

Back 5

-must have RE license

-must agree in writing not to be treated as an employee for federal tax purposes.

-at least 90% of the individual’s income as a licensee must be based on sales production rather than hours worked.

Front 6

sponsor card

Back 6

a 45 day permit for a license to carry until a new license and pocket card arrives.

Front 7

fiduciary standard

Back 7

a legal standard that holds a licensee to the highest ethical standards that the law provides.

Front 8

personal assistant

Back 8

(re assistant or professional assistant) is often a combination office manager, marketer, organizer, and facilitator with a fundamental understanding of the re industry.

Front 9

ready willing and able buyer

Back 9

one who is prepared to buy on the seller’s terms and ready to take positive steps toward consummation of the transaction.

Front 10

antitrust laws

Back 10

These laws prohibit monopolies and any contracts, combinations, and conspiracies that unreasonably restrain trade

Front 11

price fixing

Back 11

the practice of setting prices for products or services rather than letting competition in the open market establish those prices.

Front 12

group boycotting

Back 12

occurs when two or more businesses conspire against another business, or agree to withhold their patronage, in order to reduce competition.

Front 13

allocation of customers or markets

Back 13

involves an agreement among real estate companies to divide their markets and refrain from competing for each other’s business. (re companies agreeing to specific territories)

Front 14

tie in agreements

Back 14

(or tying agreements) are agreements to sell one product only if the buyer purchases another product as well.

Front 15

National Do Not Call Registry

Back 15

a list of phone numbers of consumers who do not want to be contacted by commercial telemarketers.

(managed by the Federal Trade Commission (FTC))

Front 16

(CAN-SPAM Act of 2003)

Back 16

established requirements for sending commercial email; establishes penalties for noncompliance; and gives consumers the right to have emailers (not just spammers) stop emailing them.

(enforced by the Federal Trade Commission)