Brokerage Business; Sale Contracts

Which of the following business entities is generally prohibited from brokering real estate?

• Sole proprietorship

• partnership

• corporation for profit

• non-profit corporation

A joint venture may generally broker real estate if the co-venturers

• for a business trust

• form a co-operative association

• are properly licensed

• are limited partners

A licensed salesperson may work only for

• a client who has signed a listing agreement with a licensed broker.

• a single employing broker who has an active broker's license.

• a client who has signed an authorization agreement with a licensed salesperson.

• an employer who has an active or inactive broker's license.

Which of the following activities is a licensed salesperson allowed to engage in?

• Accept a listing that is in an associate's name.

• Accept a commission directly from the MLS.

• Offer a property for lease on behalf of the employing broker.

• Sign a contract with a management company on behalf of a client.

If a salesperson has worked on a completed transaction that involved a listing agent, a selling agent, and several subagents for each of these, from whom will the salesperson receive any compensation?

• The listing agent.

• The selling agent.

• The Seller.

• the employing broker.

A property has sold for $380,000. The listing agreement calls for a commission of 6.5%. The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 40% share?

• $4,445

• $3,556

• $2,667

• $4,940

A real estate salesperson finds a buyer to a For Sale By Owner property. The home sells for $245,000, and the seller agrees to pay a commission of 3%. The salesperson is on a 65% commission schedule with her broker, who pays her 65% minus office expenses of $500. How much will the salesperson receive from this transaction?

• $4,778

• $4,452

• $4,278

• $3,175

A salesperson makes a listing presentation to a homeseller and obtains a signed listing agreement. The first thing the salesperson must now do is

• make a final pricing determination for the property.

• negotiate the commission with the client.

• complete the signing of the listing.

• explain the agency relationship with the client.

Juan shows a customer a property that is listed by another brokerage firm. He obtains an offer that is $5,000 less than the listing price. How should Juan deal with this offer?

• Advise he buyer that the offer will be rejected.

• Present the offer to the seller at the earliest possible moment.

• Ask the listing broker to lower the listing price.

• counter the offer.

A broker receives an earnest money deposit from a buyer and signs the check over to the listing agent as a partial commission advance. What is wrong with this procedure?

• Nothing, provided the deposit clears the bank and doesn't bounce.

• The broker and the agent are guilty of price fixing.

• The broker has illegally converted security funds for business use.

• The agent may not be able to return the advance if the transaction falls through.