While HUD may provide general guidance, the department does not approve individual business plans, and generally does not opine as to what amounts constitute fair and reasonable compensation. ground lease. Mentioning it could be steering. avoid seller disclosures. If you are going to be buying a new car for real estate sales, you should consider. First, there are no new changes to RESPA. Which of the following is an example of a tie-down? undue influence. as expensive a car as possible to impress others. a subsidized rent program for low-income tenants. neither a counteroffer really rejects the offer nor once rejected, an offer cannot be accepted. o workers compensation. Texas REALTORS is committed to advocating for a strong real estate industry, advancing a culture of continued learning, and staying ahead of issues concerning members and their clients. I will strive to improve my sales techniques. The broker did not violate law or regulations because the listing was an. when property is shown, follow the agent closely and provide information to the prospective buyers. At the end of the accounting period in which Mr. Smith generates the sale, ABC creates the following entry to record its liability for the commission: ABC then reverses the entry at the beginning of the following accounting period, because it is going to record the actual payment on the 15th of the month. condominium. combination of percentage of the gross and minimum fee. Case 1: A REALTOR was sued by a buyer who alleged the agent failed to properly advise him that the property lay near an environmentally contaminated site. blockbusting. both applies to 1 to 4 residential units and must be signed by buyer and seller. they want to quickly locate property that meets their needs. both a counteroffer really rejects the offer and once rejected, an offer cannot be accepted. (Once set, goals should never be changed. people are attracted to fixer-upper ads because they sense a bargain. It saves time and buyers dont have to deal with owners directly. owners who get less than they expected to receive from a sale are likely to be unhappy with you. Brokers have liability to commission salespeople as to workers compensations The California Act that prohibits discrimination by all California businesses is the Unruh Act Redlining is prohibited by the The Holden Act A selling agent must comply with agency disclosures to the buyer before the buyer executes an offer Which of the following statements regarding the use of goal-setting is FALSE? newly acquired property to have a maximum basic tax levy of 1%. The case proceeded to a jury which found for the defendant REALTOR. introduce yourself and your buyers to the other agent and go ahead with your showing. retain top producers. A sales force of 13 people share 10 desks. Helping Texas REALTORS understand their legal rights and duties under law 2. the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants. a commercial building. a counteroffer really rejects the offer. Brokers have liability to commission salespeople as to: Workmen's Compensation One of the requirements for a real estate salesperson to be regarded as Commission amounts vary but due to the nature of the paycheck calculation, employees and employers come to an agreement on the amount of the commission per each paycheck and how often it is paid. property taxes to be increased up to 2% each year. (a full-sized, four-door, car for easy entrance and exit. (Page 397), When a caller wont give a name, the best approach would be to, hang up. (Page 352). An unhappy seller could mean a sale that does not close. forgery in the chain of title. county-owned housing projects. use their own funds to make loans. first month of the second listing extension. both is satisfied with the general appearance of the home and is satisfied with the area. A broker who sponsors salespeople is subject to this rule regardless of how long the broker sponsors the salespeople. a particular mobile home park. 60% of $5,685 = $3,411.page 317, Advantages of holding open houses include. promotion and advertising paid by the agent. last 20 days of the listing. One large picture is generally more effective than several smaller pictures. (Page 480-481). Less-common commission structures are based on the gross margin or net income generated by a sale; these structures are . ad will cover every major feature of a house. Sells the firm, not a specific property.Page 342. Requires a subject heading, indicating that it is an advertisement with an opt-out mechanism, etc.page 193, The fine for making a single unauthorized solicitation call to a residential number listed on the do-not-call registry can be up to, However, recently updated to $40,000 per call.page 189. special interest of buyers. rights of parties in possession. Prospecting from legal notices can be effective. Brokers who are exempt from continuing education requirements are those who were informed in writing of their eligibility by TREC, gave notice between between October 1 and 30, 1991, of their wish to opt out, and paid the applicable fee. open-end loan. (Page 228,230). & H_0: \mu \geq 80 \\ a 3-unit residential building. If a prospective buyer intends to occupy a single-family home as a residence, which of the following is TRUE regarding liquidated damages resulting from buyer default? Agency representation Listing Commission Cost, Listing has a connotation of paying a commission.Page 287-288. binding arbitration of disputes. o unemployment insurance. No. a. The following statements are all examples of abstract goals EXCEPT: d.) (I will obtain three new listings each month. maximum that can be charged for the loan. neither 39 years for the property life nor the straight-line method. Are there any additional restrictions or limitations for access to the legal fund? There is an exception to the do-not-call rules: If you have a prior business relationship with the owner that ended within 18 months, you can call him. meeting objections half-way. A brief summary of three recent cases is noted below. By interacting with any of our blog posts, you agree to comply with the following terms and conditions: Texas REALTORS, in its sole discretion, reserves the right to remove any content you have uploaded, posted, or submitted onto any of our blog posts if we believe that it violates these terms or conditions. Brokers have liability to commission salespeople as to workers compensation. uniformly to all real estate transactions. Direct relationship between list price and time to sell.Page 224-225, 228, Benefits that an owner receives by listing with an agent include. accepting escrow instructions having blanks that are to be filled in after the instructions are signed. An agents inspection under Easton v. Strassburger (as codified by state statutes) applies to. Which of the following statements regarding the use of goal-setting is FALSE? (Page 486), In making an appointment to present an offer, the agent should. three months rent. (Page 388). Bill and sue. Brokers have liability to commission salespeople as to Correct o minimum wage requirements. A brokerage firm has operating expenses of $254,000. You should contact your attorney to obtain advice with respect to any particular issue or problem. A married couple sells their principal residence of 30 years for $650,000. The application is submitted to the applicants local association for review. Which of the following is true of agency relationships? The payment of any . obtaining listings from visitors. Liquidated damages cannot result from buyer default. unemployment insurance . demand advertising. get a higher gross price. Owners want to know what is happening.page 300. Very rarely. Holden Act. both the exchange property must be identified within 45 days and the exchange must be completed no more than 180 days after transfer of exchanged property. workers compensation. show the prospective buyers homes they have listings for in order to please the owners of those listings. $3,411.00. H0:80Ha:<80. wait to show the property until the other agent has left. The fund is used only for purposes authorized by the Texas REALTORS Board of Directors and may only be accessed by REALTORS through a formal application process. She is, California Real Estate Law. occupancy. Disclosure law that also prohibits lender rebates. Thus, a real estate agent could receive nominal compensation, for supplying a lender with certain basic information about a customer (i.e., name, address, telephone number, price of the newly purchased home, etc.). that the seller post a bond to cover damages by hazards discovered at a later date. deductibility of taxes. both 30-day month and 360-day year. When a change is required to escrow instructions: the seller can amend the escrow instructions. the total monthly housing payment divided by the gross monthly income. both motivate salespeople and retain top producers. redlining. Only a broker who sponsors salespeople or is a designated broker for a business entity must maintain up-to-date written policies and procedures. Although HUD has never published criteria, it's likely the IRS rules would prevail. Ads in an outside column will generate more interest than ads in an inside column. does none of these. failure to mention the presence of the group would make you liable for any damages the buyer suffered. both a debit on the buyers closing statement and a credit on the sellers closing statement. none of these. first 20 days of the listing. claims that a correct survey would have revealed. sales taxes. every residential listing. a resident manager. (Page 351-352). the factor that makes a neighborhood cohesive. Brown Act. What type of listing did the broker have? they extend the listing for a longer period as price is related to time to sell. Primary financing refers to loans made directly by the lender to the borrower. It is also acceptable to classify it as part of the expenses of the sales department. paying a referral fee to anyone other than his or her own employees. Harry has some buyers that he believes are ready to make an offer. settlement sheet issued on closing a transaction. welcoming the objections. Reimbursing travel expenses of Texas REALTORS who participate in form-development task forces. 15-year amortized loan 30-year loan due in 5 years Adjustable rate mortgage 30-year-term amortized loan, But the rate is guaranteed for 30 years.Page 533-536, Mortgage companies differ from mortgage loan brokers in that mortgage companies. Which of the following are exempt from licensing under the escrow law? a fixer-upper. However, under the circumstances, the real estate agent should not promote the lender or its services to the customer, and the payment must be made to the agent, regardless of whether the lead ultimately turns into a closed loan. Holden Act. increased by a list price below that indicated by the comparative market analysis. all of these. Through the Legal Fund, the Texas REALTORS was able to monitor and participate in the action. Thus, the reversing entry is: On the 15th of the month, ABC pays Mr. Smith his commission and records this entry. Inclusion of white space serves to emphasize a message. Advertising one property brings in buyers for other properties. A person employed by a builder to sell the builders homes is exempt from the Real Estate License Act. checking the regulations of the Bureau of Real Estate. The best heading for a classified ad on a home would be. (b) workers compensation. (d) all of these. Selling the lender on making the loan Selling the seller on an acceptance Selling the buyer on making an offer Selling the owner on giving a listing, This is not a sale. taxes. a credit on the buyers closing statement and a debit on the sellers statement. a two-door model to control the passengers. Press release Yellow pages of a telephone directory Direct mail Billboard, A billboard that states Thomas RealtyA Name You Can Trust would be regarded as. (Page 369), In advertising, the real estate agent should know that it is illegal to. the down payment divided by the purchase price. Lowercase letters are easier to read than capital letters. Net Exclusive right-to-sell Exclusive agency Open, The broker did not give the principal a copy of the listing. reading the information on the back of your real estate license. Thats selling and listing opportunities is where commissions come from.page 40, One of the requirements for a real estate salesperson to be regarded as an independent contractor by the IRS is that the. nonbinding arbitration of disputes. Salesperson Andrews listing was sold by another office for $189,500. Must sell owner on a listing and on you and your firm.Page 231-232, 243, A comparative market analysis would be LEAST valuable in indicating market value for a. vacant lot. The Texas REALTORS created a model privacy policy to help you develop your office's policy about the maintenance and destruction of customers' and clients' personal information. Brokers who carefully maintain independent contractor relationships and follow the terms of the agreement can reduce their risk of the IRS, the Texas Workforce Commission, or other government agencies asserting that there are employer-employee laws applicable to the relationship. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to - both motivate salespeople and retain top producers. 6% of $189,500 = $11,370. A broker may charge a lender a flat fee to place the lenders banner ads or hyperlinks on the brokers website, but the payment must be reasonable and commensurate with the value of the service. direct mail solicitations. Which of the following is NOT one of the three? The local association may forward the application to the Texas REALTORS Legal Review Committee recommending that the application be approved, or it may deny the application and return it to the applicant. Yes, as long as you follow the rules set out in the Real Estate Settlement Procedures Act (RESPA). recommend to the owner to ignore it. No. minimum fee. \end{aligned} These show that you understand the buyers concerns.Page 439-441. For listing agents, selling real estate involves three separate sales. a defeasance clause. there is a licensed care facility that serves three people across the street from the property. industrial parks. amount over the index the lender charges as interest. If it is unethical, it is illegal. both motivate salespeople and retain top producers. rent skimming. The original lessee is secondarily liable, and the person in possession is primarily liable under the original lease. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to both motivate salespeople and retain top producers Prohibited by Civil Rights Act of 1968 and the Holden Act.page 71. steering. Some programs offer to make real estate agents part-time employees of the lender. You can classify the commission expense as part of the cost of goods sold, since it directly relates to the sale of goods or services. checks that have cleared. c. minimum wage requirements. You will not use our blog posts or posted content to do anything unlawful, misleading, malicious, or discriminatory; and. The Recovery Fund is funded by a $10 fee paid with every broker's or salesman's original license application. A commission is a fee that a business pays to a salesperson in exchange for his or her services in either facilitating, supervising, or completing a sale. all of these. Legally binding agency relationships may be formed between a principal, Select the statement that is true of consumer law prior to the 20th century. a recapture clause. An agent is required to disclose to a buyer that: the property has earthquake weakness if it was built before 1960. there was a death by murder or suicide on the property more than 3 years ago. let the owners know which offers provide the agent with the greatest benefits. As an indication of value, which of the following would BEST indicate the market value of a home? a vacant lot. Browse over 1 million classes created by top students, professors, publishers, and experts. Telephone responses from a For Sale sign indicate what about the prospective buyer? The firm's approximate desk cost is 19500.0 A licensed sales associate has employed an unlicensed personal assistant. why the owners should deal with your firm. subordination. Some brokers charge a small fee every time someone clicks through to the lenders website. Proposition 90 Proposition 58 Proposition 13 Proposition 60, Must cost the same, or less, than the home sold.Page 616, Tax benefits of a principal residence include all of the following EXCEPT. Exchanger cannot have control of funds. (Page 511-512), A loan in which the borrower buys under a land contract would be a. CalVet loan. Disclosure of AIDS is never required. One of the requirements for a real estate salesperson to be regarded as an independent contractor by the IRS is that the, d.) (broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes. the straight-line method. Which of the following is NOT a legal notice? listings of 1 to 4 residential units. Advertising a property that is not available and you wont sell so you can find buyers that you hope to switch to other properties. The damages cannot exceed 3% of the purchase price. a certified property manager. institutional advertising. A Transfer Disclosure Statement must be provided to the buyer when the sale involves. an exclusive listing without a termination date. More than two typefaces in an ad will likely have a negative effect on the ad. I will obtain three new listings each month. For example, litigants in one case involving antitrust issues asked the association to file briefs with the court. waive their rights to arbitrate. One who has AIDS. d. all of the above 4. a listing having a safety clause. Turn perceived negative into a positive. misrepresentation. the property has earthquake weakness if it was built before 1960. you will work just as hard as the large firm. all of these. Keeping rent receipts until foreclosed.Page 489, When presenting multiple offers the agent should. two months rent. arbitrate disputes if directed to by the court. must be signed by buyer and seller. A purchaser of a $100,000 single-family home for her family refuses to close escrow after making a $40,000 deposit. supporting statements with facts. the IRS is that the - broker-salesperson contract states that the salesperson shall be treated as an visitations. What type of listing is legal in California, but is considered illegal in some other states? While a written independent contractor agreement and statement of understanding are not required by law to establish and maintain an independent contractor relationship, its a good idea for brokers to use both. 3. Are there any risks I should be aware of before agreeing to this? The Legal Review Committee, in turn, makes a recommendation to the Texas REALTORS Board of Directors either to approve or deny the application. insurance. (Page 580). all of these. use abbreviations such as Agt. or Bro. instead of the name of the firm. open listing. salesperson is not supervised by the broker. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to a.) properties that set the neighborhood value. Which of the following statements regarding mobile home sales is TRUE? Net Exclusive agency Exclusive right-to-sell Open, It is a unilateral contract and the agent has not agreed to use diligence.Page 264. submit all written offers in a prompt and timely manner. broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes. amount over the index the lender charges as interest. A listing office typically gives 50% of the gross commission to the selling office and splits the remainder with 40% to the broker and 60% to the listing salesperson. Plus they must be licensed and paid only for success. p. 17 9. Which of the following statements regarding the use of goal-setting is FALSE? Attorneys Savings associations All of these Banks, As well as brokers, under specified circumstances.Page 577. provides extended coverage for lenders. total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income. ), Chapter one of the 'Real Estate Practice' book for California Realty Training. total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income. The Internal Revenue Service sets strict standards for employment. to disclosures to principals only. This is a debit to the commission expense account and a credit to a commission liability account (which is usually classified as a short-term liability, except for cases where you expect to pay the commission in more than one year). both increased by a list price below that indicated by the comparative market analysis and decreased by listing above the market value. In another case, litigants in a city-zoning dispute asked the Texas REALTORS to file briefs with the court. all of these. both a debit on the buyers closing statement and a credit on the sellers closing statement. Such as a Transfer Disclosure Statement.page 107, A fiduciary relationship applies to a real estate licensee and to. broker that fails to advertise a property every week is not doing a proper job of advertising. (c) minimum wage requirements. retain top producers . a.) neither you must mention this to a prospective buyer nor failure to mention the presence of the group would make you liable for any damages the buyer suffered. both paying a referral fee to anyone other than his or her own employees and accepting escrow instructions having blanks that are to be filled in after the instructions are signed. prospecting your farm area on a continuous basis. caravans. none of these. Agents must advertise their names and license status. institutions within an area that influence behavior. The buyers originally alleged damages in excess of $30 million. Real Estate Practice - Chapter Two; Ethics, F, Real Estate Practice - Chapter Three; Mandato, Real Estate Practice - Chapter Four; Prospect, Real Estate Practice - Chapter 5; Listing Pre, Real Estate Finance - Chapter Fifteen; Mathem, Real Estate Finance - Chapter Fourteen; Inves, Real Estate Finance - Chapter Thirteen; Loan, Alexander Holmes, Barbara Illowsky, Susan Dean, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. Their adjusted cost basis is $80,000. Either Open or Exclusive agency Exclusive agency Exclusive right-to-sell Open, A commission paid only if agent makes sale.Page 264-272. information about the buyers. show unoccupied property first to give owner-occupants a chance to prepare for the showing. A real estate agent can sell a mobile home in a rental park space. Both a real estate agent can sell a mobile home in a rental park space and a real estate agent can sell a mobile home with the land it is sited on, But a real estate agent cant sell a mobile home that must be moved. pre-showings. an estate. However, the fund has been used to pay for expenses in filing briefs in cases involving homestead issues (as discussed above), contractual issues and other issues. Brokers have liability to their commissioned salespersons in respect to. Which of the following statements regarding the use of goal-setting is FALSE? No. that the property must have been held for productive use in a trade or business or for investment purposes. Cost of sales is 45% of the gross commissions. legal description from the address. Usually 36 percent for qualifying. Every six months, the Texas REALTORS Legal Review Committee reviews applications and requests for funding from the Legal Fund from Texas REALTORS and litigants involving cases that significantly affect the entire real estate industry. the average time from listing to sale for your firm is 42 days less than the average sale in your MLS. is merely an offer to insure. the name of the agent to call. Unruh Act. A mobile home must be at least 2 years old for a real estate agent to sell it. None of these. Question 4 1 / 1 pts The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. b.) a listing where the agent was not authorized to accept a deposit. third month of a six-month listing. the price was too high. Download a PDF of the Model Privacy Policy just for Texas REALTORS from theManuals & Guides page. If Im a broker whos exempt from continuing education requirements, do I still have to take the Broker Responsibility course? Disclose as soon as possible, confirm with offer.page 119-120. The rules and regulations of the legal fund set forth specifically all of the application procedures and the requirements that must be met before assistance from the legal fund may be authorized. ratio of current rental costs to estimated housing costs. Before accepting the claim at face value, ask to see a copy of HUD's approval. all of these. Secondary financing refers to the resale of existing loans. 79 of 100 Bill and Sue secured a mortgage loan that is tied to an index which fluctuates over the life of the loan. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. Which of the following statements regarding the truth-in-lending law is TRUE? The three stages of presenting an offer include all of the following EXCEPT. lack of communication from the agent. Plus credit information, cash out sellers, warnings, etc.page 144-149, Compliance with environmental hazards disclosure requires. say, I will give you the address if you give me your name. say, Would it be all right if I sent you some information and photos of that property and several others? say, Im sorry; office policy prohibits me from discussing any properties if I dont know with whom I am talking., say, Would it be all right if I sent you some information and photos of that property and several others?, It is not threatening and most will agree. Even if I do not perform the requisite number of functions to be considered a mortgage broker or do not become a true part-time employee of the lender, can I still be paid something for the work I perform for the lender? ask leading questions. Flyer pointing out attractive features about a property. . o all of these. both let the buyer know the price so they can consider it before the agent arrives and arrange to have all owners present for the presentation. talk fast if the customer talks slowly. Is the legal fund like an errors and omissions insurance policy? all of these. both it is best to advertise properties in areas or price ranges where other properties are also available and prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised. Brokers have liability to commission salespeople as to - workers compensation. Texas brokers who are exempt from TRECs continuing education requirements do not have to take the Broker Responsibility course. land it is sited on. a licensed property manager. Avoid wasting time and prioritize time. upon delivery of the sellers acceptance. use technical terms wherever possible. They like it and hope they can afford it.Page 383, When you receive For Sale sign inquiries you can assume that the caller. percentage of the gross. Noncomforming loans are Jumbo loans.Page 514. neither let the buyer know the price so they can consider it before the agent arrives nor arrange to have all owners present for the presentation. you should concentrate on D category activities before proceeding to B and C activities. That means in order to be considered an employee rather than an independent contractor, the agent/loan officer must: 1) be under the supervision and control of a lender's office; 2) use the lender's equipment; 3) have set hours; 4) receive a W-2 form; 5) receive standard employee benefits; and 6) have the lender be liable for the employee's conduct.
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