AZK RE L-03 C-19 Brokerage 1 - 0-52

  1. Purpose of license Lows (4)
    • 1) Establish basic requirements to obtain and to keep (continuing education) RE license
    • 2) Define which activities require licensing
    • 3) Describing standards of conduct and practices for licensees  
    • 4) Enforcing standards through disciplinary system
  2. RE Brokerage
    • - is a business for bringing parties together
  3. Licensed to buy, sell, exchange, or lease real property for others and to charge a fee for those services
    Real Estate Broker
  4. Real Estate Broker is licensed to
    - is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for those services
  5. Sales associate is licensed as
    • - RE salesperson employed by a broker
    •       - or
    • - RE broker who simply chooses to work for another broker rather than set up an independent brokerage office
  6. Licensed to perform real estate activities on behalf of a licensed RE Broker
    RE Salesperson
  7. RE Salesperson is licensed to
    - is licensed to perform real estate activities on behalf of a RE Broker (Employing Broker)
  8. Broker for whom the Salesperson works
    Employing Broker
  9. Employing Broker
    - broker for whom the Salesperson works 
  10. Real Estate Salesperson and Employing Broker are subject to the terms of
    - of an Employment Agreement, even when the salesperson is an Independent Contractor for tax and other purposes
  11. All REPs licensed as a
    - real estate broker
  12. Supervising broker (or) responsible for
    • - or Managing broker
    • - responsible for the provision of the real estate professionals
  13. Managing broker (or) responsible for
    • - or Supervising broker
    • - responsible for the provision of the real estate professionals
  14. Broker responsible for the provision of the real estate professionals
    • - Managing broker
    • - Supervising broker
  15. Employee rules for
    - Rules for working hours, office routines, attendance at meetings, sales quotas, dress codes
  16. Rules for working hours, office routines, attendance at meetings, sales quotas, dress codes
    Employee
  17. Independent Contractor
    • .
    •    - No employee benefits
    •    - Set own rules
    •    - Responsible for income and SS taxes
  18. Three requirements of non-employee status (3)
    • .
    •     1) The individual must have a current real estate license
    •     2) The individual must have a written contract with the broker (agreement) that specifies that the individual will not be treated as an employee for federal tax purposes
    •     3) The compensation must be based on sales production or other output and not on the number of hours worked
  19. Real estate assistants can be (2)
    • .
    •    - Unlicensed
    •       - clerical tasks
    •       - office management
    •       - website development
    •       - maintenance and production of marketing pieces
    •       - little direct contact with consumers

    •    - Licensed
    •       - can set up and host open houses
    •       - assist in all aspects of a RE transactions w day-to-day contact with consumers
  20. Service that provides the terms under which Brokers agree to cooperate in a transaction including the sharing of the compensation earned
    • - MLS
    • - Multiple Listing Service
  21. MLS
    • - Multiple Listing Service
    •       - provides the terms under which Brokers agree to cooperate in a transaction including the sharing of the compensation earned
  22. When the work has been accomplished, commission is considered...
    - earned
  23. Commission Is Considered earned
    - when the work has been accomplished
  24. When this sale is consummated by delivery and acceptance of the seller's deed, commission is considered...
    - paid
  25. Commission Is Considered paid
    - when this sale is consummated by delivery and acceptance of the seller's deed
  26. To be entitled to receive compensation an individual must be (3)
    • .
    •       1) Licensed RE broker
    •       2) Employed by the buyer or seller under a valid contract
    •       3) Procuring Cause of The Sale
  27. Procuring Cause of The Sale
    - uninterrupted chain of events that resulted in a sale
  28. When broker is entitled to a commission
    - once a seller accepts an offer from a ready, willing and able buyer
  29. Ready, Willing and Able Buyer is
    • - is one who is prepared to buy on the seller’s terms
    • - is ready to complete the transaction
  30. If transaction is not consummated the real estate broker may still be entitled to a commission if the seller...(7)
    • .
    •       1) change of mind and refuses to sell
    •       2) spouse who refuses to sign the deed
    •       3) title with uncorrected defect
    •       4) committed fraud with respect to the transaction
    •       5) unable to deliver possession within a reasonable time
    •       6) insist on terms not in the listing ( the right to restrict the use of their property)
    •       7) mutual agreement with the buyer to cancel the transaction
  31. Sales associate's compensation can be paid by...
    only by RE Broker
  32. Sales associate's compensation is set by...
    - is set by mutual agreement between the broker and the sales associate
  33. Types of Sales associate's compensation
    • - fixed salary
    • - share of commissions
  34. Minimum level of services (3)
    • 1) Accept delivery of and present offers and counteroffers to the client
    • 2) Assist the client in developing, negotiation and presenting offers and counter-offers
    • 3) Answer declines questions about offers, counter-offers and contingencies
  35. Graduated commission splits
    - based on a sales associate’s achieving specified production goals
  36. Services for Seller (7)
    • 1) prepare the property for sale
    • 2) CMA - comparative market analysis
    • 3) marketing the property using that MSL and websites
    • 4) locating and screening a buyer
    • 5) helping feel in the blanks of a sales agreement
    • 6) assistant with negotiations
    • 7) assisting with the closing
  37. Services for Buyer (7)
    • 1) renting versus owning
    • 2) helping with a mortgage pre-approval
    • 3) Consulting on desired location
    • 4) visiting properties and checking property information
    • 5) helping fill in the blanks of an offer to purchase
    • 6) assisting with negotiations
    • 7) assisting with the closing
  38. Antitrust laws (4)
    • 1) Price-Fixing
    • 2) Group Boycott
    • 3) Allocation of Customers or Markets
    • 4) Tie-In Agreements
  39. When competing Brokers agree to set sales commissions, fees or management rates, it is...
    Price-Fixing Antitrust law
  40. Price-Fixing
    • - Antitrust law
    •        - occurs when competing Brokers agree to set sales commissions, fees or management rates
  41. When traditional full-service brokers not showing the competitor films listing it is...
    Group Boycott Antitrust law
  42. Group Boycott
    • - Antitrust law
    •        - occurred when traditional full-service brokers not showing the competitor films listing
  43. Agreement between real estate brokers to divide their markets and refrain from competing for each other businesses is...
    Allocation of Customers or Markets Antitrust law
  44. Allocation of Customers or Markets
    • - Antitrust law
    •      - agreement between real estate brokers to divide their markets and refrain from competing for each other businesses
  45. Broker trying to sell one product only if the buyer purchases another product as well
    Tie-In Agreements Antitrust law
  46. Tie-In Agreements
    • - Antitrust law
    •      - to sell one product only if the buyer purchases another product as well
Author
flashsmilenet
ID
343928
Card Set
AZK RE L-03 C-19 Brokerage 1 - 0-52
Description
AZK RE L-03 C-19 Brokerage 1 - 0-52
Updated