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27 Cards in this Set

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organization of state license law officials that promote uniform policies and standards for administering and enforcing state license laws
ARELLO
Association of Real Estate License Law Officials
what is the purpose of license laws
-establish basic requirements for obtaining a real estate license and, in many cases, requiring continuing education to keep a license
-define which activities require licensing
-describe the acceptable standards of conduct and practice for licensees; and enforcing those standards through a discplinary system
business of bringing parties together
brokerage
how do state license laws treat a salesperson of an affiliate broker
as an employee whether person ks considered an employee or independent contractor for income tax purposes
under the qualified real estate agent category in the IRS code, meeting these 3 requirements can establish an independent contractor status
-individual must have a current real estate license
-he/she must have a written contract with the broker that specifies that the salesperson will not 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 and not on the number of hours worked
a policy from the National Association of Realtors that allows all MLS members to have equal rights to display MLS data, and respects the rights of property owners and their listing brokers to market a property as they wish
Internet Listing Display Policy
process of integrating information in a real estate transaction between clients, lender, and title and closing agents electronically
electronic contracting
sets forth rules for entering into an enforceable contract using electronic means
Uniform Electronic Transactions Act (UETA)
an act that makes contracts (including signatures) and records legally enforceable regardless of the medium in which they are created
Electronic Signatures in Global and National Commerce Act (E-Sign)
4 key provisions for UETA
-a contract cannot be denied its legal effect just because an electronic record was used
-a record or signature cannot be denied its legal effect just because it is in an electronic format
-if a state's law requires a signature on a contract, an electronic signature is sufficient
-if a state's law requires a written record, an electronic record is sufficient
situation where someone denies having signed a document online
nonrepudation
to be entitled to a sales commission, an individual must be....
-a licensed broker
-the procuring cause of the sale
-employed by the buyer or seller under a valid contract
broker must have started or caused a chain of events that resulted in the sale
procuring cause
person prepared to buy on the seller's terms and ready to take positive steps toward consummation of the transaction
ready, willing and able buyer
commission plan in which the salespersons pay a monthly service charge to their brokers to cover the costs of office space, telephones, and supervision in return for keeping 100% of commissions from the sales they negotiate
100% commission plan
commission plan based on a salesperson's achieving specified production goals
graduated commission splits
-a broker might agree to split commissions 50/50 up to a $25,000 salesperson's share; 60/40 for shares from $25,000 to $30,000 and so on
practice of setting prices for products or services rather than letting competition in the open market establish those prices
price fixing
occurs when competing brokers agree to set sales commssions, fees, or management rates
anti-trust violations include...
price fixing
group boycotting
allocation of customers
allocation of markets
tie-in agreements
occurs when 2 or more businesses conspire against another business or agree to withhold their patronage to reduce competition
group boycotting
involves an agreement between brokers to divide their markets and refrain from competing for each other's business
allocation of customers or markets
agreements to sell one product only if the buyer purchases another product as well
tie-in agreements
Sherman Antitrust penalties
-maximum $1 million fine and 10 years in prison
-for corporations, may be as high as $100 million
arrangement where the consumer decides which services he/she needs and then works with and pays the licensee solely for those services
fee-for-services
arrangement where a consumer receives all of the real estate services, but at a discounted price
discounted real estate services
offering real estate services in piecemeal fashion
unbundling services
-agreements that stipulate that a listing broker offers services other than that of placing a listing in the MLS
-seller essentially represents themselves
limited service listing agreements
what minimum level of services do states require brokers to provide
-accept delivery of and present offers and counteroffers to the client
-assist the client in developing, negotiating, and presenting offers and counteroffers
-answer the client's questions about offers, counteroffers, and contingencies