Chp 5 - Real Estate Brokerage

Front 1

organization of state license law officials that promote uniform policies and standards for administering and enforcing state license laws

Back 1

ARELLO
Association of Real Estate License Law Officials

Front 2

what is the purpose of license laws

Back 2

-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

Front 3

business of bringing parties together

Back 3

brokerage

Front 4

how do state license laws treat a salesperson of an affiliate broker

Back 4

as an employee whether person ks considered an employee or independent contractor for income tax purposes

Front 5

under the qualified real estate agent category in the IRS code, meeting these 3 requirements can establish an independent contractor status

Back 5

-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

Front 6

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

Back 6

Internet Listing Display Policy

Front 7

process of integrating information in a real estate transaction between clients, lender, and title and closing agents electronically

Back 7

electronic contracting

Front 8

sets forth rules for entering into an enforceable contract using electronic means

Back 8

Uniform Electronic Transactions Act (UETA)

Front 9

an act that makes contracts (including signatures) and records legally enforceable regardless of the medium in which they are created

Back 9

Electronic Signatures in Global and National Commerce Act (E-Sign)

Front 10

4 key provisions for UETA

Back 10

-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

Front 11

situation where someone denies having signed a document online

Back 11

nonrepudation

Front 12

to be entitled to a sales commission, an individual must be....

Back 12

-a licensed broker
-the procuring cause of the sale
-employed by the buyer or seller under a valid contract

Front 13

broker must have started or caused a chain of events that resulted in the sale

Back 13

procuring cause

Front 14

person prepared to buy on the seller's terms and ready to take positive steps toward consummation of the transaction

Back 14

ready, willing and able buyer

Front 15

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

Back 15

100% commission plan

Front 16

commission plan based on a salesperson's achieving specified production goals

Back 16

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

Front 17

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

Back 17

price fixing
occurs when competing brokers agree to set sales commssions, fees, or management rates

Front 18

anti-trust violations include...

Back 18

price fixing
group boycotting
allocation of customers
allocation of markets
tie-in agreements

Front 19

occurs when 2 or more businesses conspire against another business or agree to withhold their patronage to reduce competition

Back 19

group boycotting

Front 20

involves an agreement between brokers to divide their markets and refrain from competing for each other's business

Back 20

allocation of customers or markets

Front 21

agreements to sell one product only if the buyer purchases another product as well

Back 21

tie-in agreements

Front 22

Sherman Antitrust penalties

Back 22

-maximum $1 million fine and 10 years in prison
-for corporations, may be as high as $100 million

Front 23

arrangement where the consumer decides which services he/she needs and then works with and pays the licensee solely for those services

Back 23

fee-for-services

Front 24

arrangement where a consumer receives all of the real estate services, but at a discounted price

Back 24

discounted real estate services

Front 25

offering real estate services in piecemeal fashion

Back 25

unbundling services

Front 26

-agreements that stipulate that a listing broker offers services other than that of placing a listing in the MLS
-seller essentially represents themselves

Back 26

limited service listing agreements

Front 27

what minimum level of services do states require brokers to provide

Back 27

-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