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15 Cards in this Set
- Front
- Back
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Which statement BEST explains the meaning of the sentence: "To recover a commission for brokerage
services, a broker must BE EMPLOYED as the agent of the client"? a. the broker must work in a real estate office b. the client must make an express or implied agreement to pay a commission to the broker c. the broker must express an interest in represent ing the client d. the broker must have a salesperson employed in the office |
b. the client must make an express or implied
agreement to pay a commission to the broker |
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Licensees who are paid in a lump sum and who are personally responsible for paying their own taxes
are probably a. transactional brokers b. buyers agents c. independent contractors d. employees |
c. independent contractors
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When acting as an employee rather than an
independent contractor, a salesperson may be obligated to a. list properties in his or her own name b. work set hours c. accept a commission from another broker d. advertise property on his or her own behalf |
c. work set hours
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A real estate broker learns that her neighbor wishes to sell his house. The broker knows the property well and is able to persuade a customer-buyer to make an offer for the property. The broker then asks the neighbor if she can present an offer from the prospective buyer, and the neighbor agrees. At this point, which statement is TRUE?
a. the neighbor is not obligated to pay the broker a commission b. the buyer is obligated to pay the broker for locating the property c. the neighbor is obligated to pay the broker a commission for producing an offer to purchase d. the broker may not be considered the procuring cause without a written contract |
a. the neighbor is not obligated to pay the broker
a commission |
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A broker would have the right to dictate which of the following to an independent contractor?
a. number of hours the person would have to work b. work schedule the person would have to follow c. sales meetings the person would need to attend d. compensation the person would receive |
d. compensation the person would receive
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Two licensees were found guilty of conspiring with each other to allocate real estate brokerage markets. A woman suffered a $90,000 loss because of their activities. If the woman brings a civil suit against the
two licensees, what can she expect to recover? a. nothing, because a civil suit cannot be brought for damages resulting from antitrust activities. b. only $90,000-the amount of actual damages the woman suffered c. actual damages plus attorney's fees and costs d. $270,000 plus attorney's fees and costs |
d. $270,000 plus attorney's fees and costs
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Two salespeople who work for the same company agree to divide their town into a norther region and a southern regions/ one salesperson will handle listings in the norther regions, and the other will handle listing in the southern regions. Which statement is TRUE regarding this agreement?
a. the agreement does not violate antitrust laws b. the agreement constitutes illegal price-fixing c. the two salespeople have violated the Sherman Antitrust Act and are liable for triple damages d. the two salespeople are guilty of group boy- cotting with regard to other salespeople in their office |
a. the agreement does not violate antitrust laws
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A state has recently updated its RULES AND REGULATIONS FOR THE REAL ESTATE PROFESSION.
Assuming this state is like all other states and provinces, which statement is TRUE regarding this publication? a. the rules and regulations are state laws enacted by legislature b. the rules and regulations are a set of administrative rules adopted by the state real estate commission and do not have the same force and effect as the statutory license law c. the rules and regulations are a set of administrative rules adopted by the state real estate commission and do not have the same force and effect as the statutory license law d. the rules and regulations create a suggested level of competence and behavior but are not enforceable against real estate licensees. |
c.
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After a particularly challenging transaction finally
closes, the client gives a salesperson a check for $500 for all your extra work." Which statement is accurate? a. While such compensation is irregular, it is a appropriate for the saleperson to accept the check. b. the salesperson may receive compensation only from the broker c. the salesperson should accept the check and deposit it immediately in a special escrow acct. d. the salesperson's broker is entitled to 80 percent of the check |
b. the salesperson may only receive compensation
from the broker |
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A broker has established the following office policy:
"All listing taken by any salesperson associated with this real estate brokerage must include compensation based on a 7 percent 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 salespeople associated with the brokerage will not be bound by the requirement and may negotiate any commission rate they choose c. the broker must present the uniform commission policy to the local professional association for approval d. the broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm. |
d. the broker may, as a matter of policy, legally set the
minimum commission rate acceptable for the firm |
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A real estate company has adopted a 100% commission plan. The monthly desk rent required
of sales associates is $1,500, payable on the last day of the month. In August, a sales associate closed an $189,500 sale with a 6% commission and a $125,00 sale with a 5.5 percent commission. The salesperson's additional expenses for the month were $ 2,170. How much of the total monthly income did the salesperson keep? a. $ 14, 575 b. $ 16, 075 c. $ 16, 745 d. $ 18, 245 |
a. $ 14, 575
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A salesperson took a listing on a house that sold for
$329,985. The commission rate was 8%. Another salesperson employed by another broker found the buyer. The listing broker received 60% of the commission on the sale; the buyer's broker received 40%. If the listing broker kept 30% and paid the listing salesperson the remainder; how much did the listing salesperson earn on this sale? a. $ 3,167.86 b. $ 7,391.66 c. $ 11,087.50 d. # 15,839.28 |
c. $ 11,087.50
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On the sale of any propety, a salesperson's compensation is based on the total commission paid to the broker. The salesperson receives 30% of the first $2,500, 40% of any amount between $2,500 and $7,500. If a property sells for $234,500 and the broker's commission rate is 6.5%, what is the salesperson's total compensation?
a. $5,847.00 b. $ 6,621.25 c. $6,871.25 d. $7,621.25 |
b. $ 6,621.25
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Which law of agency is governed by rules of a society established by tradition and court decisions?
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common law
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Which law of agency is governed by laws, rules and regulations enacted by legislatures and other governing bodies?
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statutory law
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