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WorksheetsReal Estate Unit 8 Quiz
Total questions: 21
Worksheet time: 13mins
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?
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.
A REALTOR® is BEST described as an individual who is
A real estate professional who acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property.
Any real estate professional who assists buyers, sellers, landlords, or tenants in any real estate transaction.
A member of the National Association of Real Estate Brokers who specializes in residential properties.
A real estate licensee and a member of the National Association of REALTORS® (NAR).
A broker has established the following office policy: “All listings taken by any sales associate of this real estate brokerage must include compensation based on a 7% commission. No lower commission rate is acceptable.” If the broker attempts to impose this uniform commission requirement, which statement is TRUE?
A homeowner may sue the broker for violating the antitrust law’s prohibition against price-fixing.
The sales associates of the brokerage are not bound by the requirement and may negotiate any commission rate they choose.
The broker must present the uniform commission policy to the local professional association for approval.
The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.
A real estate company has adopted a 100% commission plan. The monthly desk rent required of sales associates is $1,500, payable on the last day of the month. In August, a sales associate closed a transaction that earned a commission of $11,370 and a second transaction that earned a commission of $6,875. The sales associate’s additional expenses for the month were $2,170. How much of the total monthly income did the sales associate keep?
$14,575
$10,075
$16,745
$18,245
A sales associate took a listing on a house that sold for $329,985. The commission rate was 5%. A sales associate employed by another broker found the buyer. The seller’s broker received 60% of the commission on the sale; the buyer’s broker received 40%. If the seller's broker kept 30% and paid the seller’s sales associate the remainder, how much did the seller’s sales associate earn on this sale?
$4,346.85
$5,774.74
$6,929.68
$8,249.00
On the sale of any property, a sales associate's compensation is based on the total commission paid to the broker. The sales associate receives 30% total commission paid to the broker. If a property sells for $234,500 and the broker's commission rate is 6.5%, what is the sales associate's total compensation?
$15,242.50
$10,669.75
$4,221.00
The federal law that makes contracts originated, negotiated, and executed over a combination of computer and cell phone enforceable is
CAN-SPAM.
Junk Fax Prevention Act.
COPPA.
UETA.
The amount of commission paid to a sales associate is determined by
state law.
the local real estate board.
mutual agreement with the broker.
mutual agreement with the client.
A broker was accused of violating antitrust laws. Of the following, the broker was MOST likely accused of
not having an equal housing opportunity sign in the office window.
undisclosed dual agency.
price-fixing.
dealing in unlicensed exchange services.
A real estate broker was responsible for a chain of events that resulted in the sale of a client's property. This is called
pro forma.
procuring cause.
private offering.
proffered offer.
A sales associate wants to be classified by the IRS as a qualified real estate agent—the equivalent of holding independent contractor status for tax purposes. The sales associate must
receive substantially all income from the brokerage based on time worked, rather than production.
perform all work supervised by the managing broker.
hold a current IRS-issued license.
have a written agreement with the broker stating that the sales associate will be treated as an employee for federal tax purposes.
A real estate sales associate, classified by the IRS as an independent contractor, receives
a monthly salary or hourly wage.
company-provided health insurance.
a company-provided automobile.
a negotiated share of commissions on transactions.
