Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/20

Click to flip

20 Cards in this Set

  • Front
  • Back
After a particularly challenging transaction finally closes, the client gives a sales associate a check for $500 "for all your extra work." Which statement is accurate?
The sales associate may receive compensation only from the broker.
wo sales associates who work for the same firm agree to divide their town into a northern region and a southern region; one sales associate will handle listings in the north, and the other will handle listings in the south. Which statement is TRUE?
The agreement does not violate antitrust laws.

The federal law that makes contracts originated, negotiated, and executed over a combination of computer and cell phone enforceable is

UETA.

A broker would have the right to dictate which of the following to an independent contractor?

Conduct in compliance with statutory law and regulations

A broker was accused of violating antitrust laws. Of the following, the broker was MOST likely accused of

price-fixing.

A state has recently updated its Rules and Regulations for the Real Estate Profession. Assuming this state is like all others, which statement is TRUE regarding this publication?

The rules and regulations have the same force and effect as the license law itself.

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 as

independent contractors.

A sales associate's contract with her broker states that she is not an employee. In the past year, less than half her income was commission, with the rest an hourly wage paid by the broker. The IRS would classify her as

an employee.

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?

The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.

A real estate sales associate, classified by the IRS as an independent contractor, receives

a negotiated share of commissions on transactions

Which statement BEST explains this sentence: "To recover a commission for brokerage services, a broker must be employed as the agent of the client"?

The client must make an express or implied agreement to pay a commission to the broker.

A real estate broker was responsible for a chain of events that resulted in the sale of a client's property. This is called

procuring cause

When acting as an employee rather than an independent contractor, a sales associate may be obligated to

work set hours.

The amount of commission paid to a sales associate is determined by

mutual agreement with the broker.

Two real estate professionals were found guilty of conspiring with each other to allocate real estate brokerage markets. A seller suffered a $90,000 loss because of their activities. If the seller brings a civil suit against the two real estate professionals, what can the seller expect to recover?

$270,000 plus attorney's fees and costs

A sales associate wants to be classified by the IRS as a qualified real estate agent—the equivalent of holding independent contractor status for tax purposes. The sales associate must meet all of the following requirements

have a written agreement with the broker stating that the sales associate will not be treated as an employee for federal tax purposes


receive substantially all income from the brokerage based on production, not time worked


hold a current real estate license.

Terry is the personal assistant of a real estate sales associate. Terry must be paid by the broker who employs the sales associate. This means that

Terry has a real estate license.

The amount of commission paid to a sales associate is determined by

mutual agreement with the broker.

A sales associate wants to be classified by the IRS as a qualified real estate agent—the equivalent of holding independent contractor status for tax purposes. The sales associate must meet all of the following requirements

have a written agreement with the broker stating that the sales associate will not be treated as an employee for federal tax purposesreceive substantially all income from the brokerage based on production, not time workedhold a current real estate license.

A sales associate wants to be classified by the IRS as a qualified real estate agent—the equivalent of holding independent contractor status for tax purposes. The sales associate must meet all of the following requirements

have a written agreement with the broker stating that the sales associate will not be treated as an employee for federal tax purposesreceive substantially all income from the brokerage based on production, not time workedhold a current real estate license.