WorksheetsChapter 13: General Brokerage Practices
Total questions: 28
Worksheet time: 14mins
Which of the following represents the core activity of real estate brokerage?
Prospecting for and qualifying potential customers
Buying and Selling properties for one's company
Procuring customers for clients and effecting transactions
Negotiating sale or lease terms for a client
What is a co-brokerage?
An owner agent and a buyer agent combine efforts to complete
Outside brokers acting as subagents assist a listing agent in procuring a customer
An owner or buyer lists with several brokers to complete a transaction
Agents from a single agency cooperate to generate listing for the broker
Which of the following best summarizes the critical skills in real estate brokerage?
Communications, market knowledge, mathematics, and analysis
Selling skills, law, and qualification
Fiduciary duties
Listing, marketing, facilitating transactions, and managing information
Which of the following is a valid distinction between a cooperation and a proprietorship?
A corporation has perpetual existence; a proprietorship terminates upon the owner's death
Proprietorships are liable for their actions, while corporations are not.
Proprietorships may broker real estate, while corporations can not.
Corporations are not subject to taxation, while proprietorships are.
One similarity between a general partnership and a limited partnership is that
both are subject to double-tax
both may broker real estate if properly licensed
the partners in both organizations take an active role in managing the business
all partners bear full liability for debts to the extent of the debt
Two real estate companies agree to conjoin their resources for the development of the sale of an apartment complex, for which profits will be shared equally. This is an example of
a cooperation a
a real estate investment trust
a limited partnership
a joint venture
The term "Realtor"
is the generic name used by brokers throughout the country as a trade identity
is the identity for any duly licensed, active agent or broker
is the trade identity for all members of any properly charted real estate trade organization
may only be used by brokers belonging to the National Association of Realtors
Real Estate agents are legally authorized to
represent their employing broker in procuring clients and customers
act directly on a client's behalf to discharge the broker's listing re
negotiate and execute contracts for sale on behalf of the client
take on the listing responsibilities for other listings in MLS
An important distinction between an independent contractor salesperson (IC) and an employee sales person is
the IC is responsible for taxes; the broker does not withhold
the IC must obtain his or her own training; it is not provided by the broker
the employee is not entitled to company benefits
the IC must abide by all office policies and meeting schedules
An important employing brokers make to salespeople is
a pledge of continued employment over a predetermined period
a guarantee of market-based, competitive commission structures
providing them with all listing in the agency
producing a sufficient number of customers through advertising to make a reasonable living
A salesperson's commission rate and structures is established by
state regulation
competitive conditions
agreement with other brokers in the marker
negotiations with the client
Three most important skills involved in the listing process are
persuasion, appraisal, and market analysis
communicating, co-brokering
marketing, advertising, and conducting open houses
locating clients, pricing property, and making listing presentations
Pricing property correctly is pivotal to marketing listings because
underpriced properties do not require the broker's services
overpricing a property will lengthen the time required to receive compensation for services
underpricing a property does not serve the best interests of clients
Overpricing a property does not serve the best interests of customers
The objective of the listing presentation is to
explain how the agent and the agency enjoy a competitive advantage over other compa
condition the owner to price the property at the lowest possible level
provide all information necessary for the owner to execute the listing
execute the listing agreement, then explain it's provisions
In marketing an owner's property, the objective of an agents marketing plan is to
actively participate in the multiple
expose the property to the maximum number of prospects in relation to marketing expenses and efforts
ensure that a transaction occurs that will compensate the agent
convince prospects of the property's superiority over other properties
In obtaining offers from buyer, an agent must be careful to
pursue only those offers which are at or near the listing price
balance the owner's price expectations with the buyer's opinion of value
avoid disclosing what price the owner will accept
avoid completing offers that are beneath market value
When a property is "under contract"
the principals have agreed to an option to purchase provided the buyer can obtain financing
the buyer and the seller are engaged in negotiations to complete a sale contract
the principals have entered into a sale contract and must satisfy any contingencies prior to closing
certain contingencies must be satisfied before the buyer or seller will agree to sign the sale contract
Conversion is the act of
mixing escrow funds with the broker's operating funds
appropriating client or customer deposits for use in the agency's business
converting an offer into a binding contract
converting escrow funds into equity funds in a property at the closing
Commingling is the practice of
blending escrow funds on a number of properties in one escrow account
mixing socially with prospects at open houses or other marketing functions
appropriating client or customer deposits for use in the agency's bu
mixing escrow funds with the broker's operating funds.
Real estate advertising is a regulated activity. One important restriction in placing ads is
a broker may only place blind ads in approved publications
a broker must have all advertising approved by the agen
the advertising must not be mis
sales agents may only advertise in their own name
Three principal brokerage firms in a market agree to pay sales agents 15% more than any other competitor currently in practice. This is an example of
coll
price fixing
allocation of market
steering
Two leading agencies jointly agree to raise commissions charged a certain class of client to 8% of the sales price. Which of the following is true?
This is a perfectly legitimate u
The brokers have illegally fixed
The brokers have allocated marker
The brokers have engaged in legal collusion
A corporation would like to sell its country grocery store. Included in the sale are the inventory, equipment, and real property. The agent locates a full-price buyer who does not want to acquire any of the business's actual potential liabilities. To do this transaction, the corporation would most likely
propose
undertake a stock
propose an exchange
enter into a sale-leaseback transaction
A broker is revising the balance sheet of her new listing to sell a business. Three of the entries on the books are licenses, trademarks, and goodwill. These would be examples of
tangible assets
intangible assets
short-term liabilities
long-term liabilities
In business brokerage, the notion of goodwill is best defined as
the commitment by the agent to expend maximum effort on the listing
establishing pricing levels that will generate the good will of prospective cust
the value or price of the business over and above the value of it's other assets
the portion of the sale price that is depreciable
A syndication is
a group of general partners who invest in and manage real estate for a profit
a group of inactive investors who join with a number of active partners to purchase, manage, and sell properties for a profit
a network of active brokers who purchase and sell properties
an organization engaged in illegal property acquisition and sale
In order to sell interests in a syndication, an agent must
obtain a Series 39 securities license
obtain a Series 22 securities licen
obtain a real estate broker's license
obtain a syndicator's license
Which of the following characterizes a real estate franchisee?
A local brokerage owned and operated by a national franchisor
A locally-owned brokerage affiliated with a national franchisor for purposes of enhanced image and resources
A national brokerage company which charges local brokers fees for membership
A national firm which contacts with local franchisors to promote the national identity
