Real Estate Unit 8 Quiz

A commission might be shared by many people: the broker and sales associate working for the seller, as well as the broker and sales associate working for the buyer. A diagram may help you determine which real estate professional is entitled to receive what amount of the total commission. For example, a sales associate took a listing on a $289,000 house at a 5% commission rate. A sales associate employed by a different firm found the buyer for the property. If the property sold for the listed price, the seller’s broker and the buyer’s broker shared the commission equally, and the buyer’s broker kept 45% of the shared commission, how much did the sales associate employed by the buyer’s broker receive?

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

• The broker must work in a real estate office.

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

• The broker must express an interest in representing the client.

• The broker must have a sales associate employed in the office.

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

• employees.

• buyer’s agents.

• independent contractors.

• transactional brokers.

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

• self-employed.

• an employee.

• an independent contractor.

• a part-time real estate salesperson.

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

• list properties in the sales associate’s own name.

• work set hours.

• accept a commission from another broker.

• personally pay all withholding taxes.

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

• the personal assistant has a real estate license.

• the sales associate doesn’t make very much money.

• the personal assistant is a part-time employee.

• ultimate responsibility for the personal assistant’s conduct in the performance of work-related activities lies with the sales associate.

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

• Number of hours the person would have to work

• Work schedule the person would have to follow

• Sales meetings the person would need to attend

• Conduct in compliance with statutory and regulations

Two real estate professionals were found guilty of conspiring with each other to allocate real estate brokerage markets. A seller suffered an estimated $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?

• Nothing, because a civil suit cannot be brought for damages resulting from antitrust activities

• Only $90,000—the amount of actual damages the seller suffered

• Actual damages plus attorney’s fees and costs

• $270,000 plus attorney’s fees and costs

Two 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 agreement constitutes illegal price-fixing.

• The two sales associates have violated the Sherman Antitrust Act and are liable for treble damages.

• The two sales associates are guilty of a group boycott with regard to other sales associates in the firm.

A state has recently updated its Rules and Regulations for the Real Estate Profession. Which statement is most likely TRUE regarding this update?

• The rules and regulations are state laws enacted by the legislature.

• The rules and regulations do not have the same force and effect as the statutory license law.

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

• The rules and regulations are not enforceable against real estate professionals.