both, an owner who gets less than they expected to receive from a sale is likely to be unhappy with you, and it is better to estimate costs a little on the high side than the low side. 3. 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. a credit on the buyers closing statement and a debit on the sellers statement. No. (Page 427), When dealing with a prospect who is silent, the BEST approach would be to. Which of the following statements regarding the time it takes for a property to sell is TRUE? remain silent to force the prospect to talk. (page 302), If a listing is overpriced, the agent should suggest to the owners that. greater responsibility. last 20 days of the listing. Brokers have liability to commission salespeople as to workers compensation. ask leading questions. The sublessee is a tenant of the sublessor. neither 39 years for the property life nor the straight-line method. While mortgage brokers act as middlemen.Page 517-518, A loan that can be increased to an agreed upon limit would be a. wrap-around loan. Which of the following statements regarding the use of goal-setting is FALSE? have a quicker sale. Prospecting from legal notices can be effective. the FHA. both blockbusting and steering. chemical tests of the soil for all dangerous contaminants. A both motivate salespeople and retain top producers. neither motivate salespeople nor retain top producers. Which of the following statements BEST describes a sublease? asking every prospect to recommend another prospect. A recorded abstract of judgment has priority over a homestead declaration when O it was recorded prior to the homestead O the owner has rented the property to another O. a licensed property manager. H0:80Ha:<80. both federally related loans and 1 to 4 residential units only. Which of the following statements regarding mobile home sales is TRUE? What are the advantages of a good time-management program? Yes, as long as you follow the rules set out in the Real Estate Settlement Procedures Act (RESPA). A common fee arrangement for commercial property managers would be a. percentage of the net. both is satisfied with the general appearance of the home and is satisfied with the area. A real estate agent can sell a mobile home with the land it is sited on. (Page 351-352). The damages cannot be recovered by the seller. portfolio loans. sell the item, not the benefits. direct mail solicitations. universal exclusion. deductibility of interest. Others claim that their programs have been blessed by HUD. waive their rights to arbitrate. restrictions on e-mail solicitations. a percentage lease. before the buyer executes an offer. all of these. All are protected by 1988 Amendment.page 73, Advertising a home in an area occupied solely by members of a minority group only in newspapers directed toward that minority group would be regarded as. Mentioning it could be steering. broker that fails to advertise a property every week is not doing a proper job of advertising. After careful review, the board of directors chose not to file the requested briefs. a counteroffer really rejects the offer. Defraying all or a portion of legal expenses for pending litigation in which a member is a party 4. 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). ad within a price range or area creates prospects for other homes in the price range or area. use their own funds to make loans. talk fast if the customer talks slowly. For listing agents, selling real estate involves three separate sales. Thus, the reversing entry is: On the 15th of the month, ABC pays Mr. Smith his commission and records this entry. The association needs you to volunteer your voice and exper. do all of these. Under the accrual basis of accounting, you should record an expense and an offsetting liability for a commission in the same period as you record the sale generated by the salesperson, and when you can calculate the amount of the commission. Ads in an outside column will generate more interest than ads in an inside column. These show that you understand the buyers concerns.Page 439-441. Reasonable compensation (generally a flat fee, not a percentage of the loan amount) may be justified. The broker did not violate law or regulations because the listing was an. showing owners you are working on their behalf. REALTOR membership is a criterion that a broker may voluntarily choose to require of independent contractors. obtaining listings from visitors. What is the best test to evaluate if an act is ethical? (Page 388). avoid seller disclosures. The mortgage company cant sponsor the luncheon on the condition that it will receive referrals, either. The firm's approximate desk cost is 19500.0 A licensed sales associate has employed an unlicensed personal assistant. 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. Present all offers together fairly. (c) minimum wage requirements. Which of the following is true of agency relationships? The sublessee is a tenant of the original lessee. welcoming the objections. ad will cover every major feature of a house. Secondary financing refers to the resale of existing loans. every residential listing. \end{aligned} - Once set, goals To be enforceable, which element is required in an exclusive right-to-sell listing? do all the talking yourself. demand advertising. get a higher gross price. sales taxes. These rules come into play any time a real estate broker in a position to refer mortgage business to a lender is paid a thing of value by the lender. One who has AIDS. 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. Is it difficult for a Texas REALTOR to obtain assistance from the legal fund? listings with your firm have a 30% greater chance of being sold than the average for your local MLS. For example, litigants in one case involving antitrust issues asked the association to file briefs with the court. influential people in the community. changes in the zoning. Advertising a property that is not available and you wont sell so you can find buyers that you hope to switch to other properties. (Page 397). In real estate, the term farming refers to. both you must mention this to a prospective buyer and failure to mention the presence of the group would make you liable for any damages the buyer suffered. The damages cannot exceed 3% of the purchase price. Which of the following statements regarding display advertising is TRUE? credit terms. minimum wage requirements. It saves time and buyers dont have to deal with owners directly. Am I still required to have a manual? Are there any additional restrictions or limitations for access to the legal fund? So if reasonable, it should be accepted. Which proposition makes it possible for taxpayers 55 years or older to transfer current base-year value of their principal residence to a replacement home within the same county? Ultimately, the board of directors must make a determination if the use of the Legal Fund satisfies the purposes and intent of the fund. primarily for 1 to 4 residential units. love of family. (Page 383). Buyers are attracted to bargains, not overpriced property. (page 63), The Seller Financing Disclosure Statement provided to both buyer and seller provides. all of these. I will obtain three new listings each month. (page 20), You can find out how things are done in your office by. If Im a broker whos exempt from continuing education requirements, do I still have to take the Broker Responsibility course? 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.The commission may be based on a flat fee arrangement, or (more commonly) as a percentage of the revenue generated. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to - military-based housing. the IRS is that the - broker-salesperson contract states that the salesperson shall be treated as an (Page 231). Fred Smith sells a $1,000 widget for ABC International. federally related loans. retain top producers. both A and. One who has a guide dog. both 39 years for the property life and the straight-line method. Question 4 1 / 1 pts The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to. inheritance taxes. Note, however, that real estate agents may not take loan applications in connection with FHA-insured loans. you will work just as hard as the large firm. 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. Turn perceived negative into a positive. arbitrate disputes if directed to by the court. While real estate agents will find it difficult to serve as both real estate agents and mortgage brokers, or real estate agents and part-time lender employees, agents may still be paid under a RESPA exemption that permits persons (even ones that refer lenders business) to be paid for services rendered, so long as the payment is commensurate with the services provided. You should contact your attorney to obtain advice with respect to any particular issue or problem. bare-bones classified ad on a property. redlining. an exclusive listing without a termination date. Directing to properties based on race.page 71. cooperate with other agents in designated areas. A broker may require salespeople to be members of the REALTORS association, as it indicates to the broker the sales agents' commitment to the real estate profession and to high ethical standards of practice. both motivate salespeople and retain top producers. apartments. independent contractor for tax purposes. 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. Having the ability to switch property is important. There is no limit for the damages. because you concentrate on a small number of select properties, you are able to give more individual attention to the property. The sellers MOST common objection to an offer is. (Page 369), In advertising, the real estate agent should know that it is illegal to. doubling A time activities should double your income. ), You can find out how things are done in your office by, d.) (studying your office procedure manual.). information about the buyers. show the prospective buyers homes they have listings for in order to please the owners of those listings. a 3-unit residential building. This appears permissible under RESPA guidelines as long as the fee is minimal and not tied to whether that click results in a loan. He says to them, "Would you prefer to take possession on September 1 or October 1?" If he were working exclusively for the builder, he would be exempt from the act and you would not be responsible for his activities. At the time of the refinance a survey incorrectly stated that the property did not lie in a flood hazard area. Disclose as soon as possible, confirm with offer.page 119-120. (Page 397), When a caller wont give a name, the best approach would be to, hang up. checks that have cleared. a debit on the buyers closing statement. all of these. accessible areas only. 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. A Transfer Disclosure Statement must be provided to the buyer when the sale involves. to disclosures to principals only. What is legal but unethical now might be illegal tomorrow. there is a licensed care facility that serves three people across the street from the property. Do I have to check the National Do Not Call Registry before soliciting listings of those who have a for sale by owner sign in their yard or sellers with expired listings in the MLS? Neither Primary financing refers to loans made directly by the lender to the borrower nor Secondary financing refers to the resale of existing loans. The case proceeded to a jury which found for the defendant REALTOR. all of these. Neither buyer nor seller may unilaterally modify the escrow instructions. The following statements are all examples of abstract goals EXCEPT. No. attention, interest, desire, action. 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. ignore the other agent and go ahead with your showing. 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. 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 Which promotion would have the lowest cost to the broker? One who has children. 1 to 4 residential units. workers compensation. Adjust does not have the connotation of lowering.page 312, The period that tends to be the most productive sales period for listings is the. The best heading for a classified ad on a home would be. If an employee is receiving a commission, then the company withholds income taxes on the amount of the commission paid to the employee. In each of these cases, the board of directors determined that there was a significance to REALTORS as a class. a particular subdivision. owners name from the tax number. The burden of responsibility. California Real Estate Law. To catch the eye of buyers who desire that feature.Page 352. allow the prospective buyers to bring along a friend or confidant. combination of percentage of the gross and minimum fee. (Page 238-239), In preparing estimated seller proceeds, you should remember that. If the flow rate of the river is F=2.3105m3/hrF=2.3 \times 10^5 \mathrm{~m}^3 / \mathrm{hr}F=2.3105m3/hr, use the formula you found in Question 4 to estimate the total amount of cadmium discharged from the plant during this 24-hour period. the Real Estate Settlement Procedures Act. the monthly gross income divided by the amount to be financed. What about programs that offer to pay a real estate agent for names of potential borrowers? the most desirable feature. Owner Adams has a listing in force with Broker Baker. a recapture clause. Net Exclusive agency Exclusive right-to-sell Open, It is a unilateral contract and the agent has not agreed to use diligence.Page 264. neither blockbusting nor steering. The recovery fund is a state-run consumer protection fund used to reimburse aggrieved persons who suffer actual damages by reasons of certain acts committed by brokers, salesmen, or their unlicensed employees or agents. 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. The Real Estate Recovery Fund is a fund created by the Real Estate License Act that is maintained by the Texas Real Estate Commission (the state agency regulating Texas real estate brokers and salesmen). Things such as car signs, business cards, and client referrals could lead a buyer to believe that your agent was acting as a real estate salesperson while working for the builder. If the agent advertises the APR, the agent must include all credit terms. both applies to 1 to 4 residential units and, Residential Earthquake Hazards Report.Page 124, The proper order of the steps taken in agency disclosure is. maximum that can be charged for the loan. present them in the order received, obtaining acceptance, rejection, or counteroffer for each offer before proceeding to the next offer. The Recovery Fund is funded by a $10 fee paid with every brokers or salesmans original license application. Under the terms of his commission agreement, he receives a 5% commission on the revenue generated by the transaction, and will be paid on the 15th day of the following month. neither it is best to advertise properties in areas or price ranges where other properties are also available nor prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised. insurance. they extend the listing for a longer period as price is related to time to sell. prospective buyers who respond to newspaper ads are likely to buy a property other than the property advertised. using one period of time to list and another period of time to sell in a never-ending cycle. a listing having a safety clause. d. You will not post any information intended to sell or advertise a business, product, or service. $570,000 $70,000 $650,000 None of these, They have a gain of $570,000 and a $500,000 exclusion.Page 634, A clause in a percentage lease whereby the landlord has a right to regain the premises if the tenant fails to achieve a stated gross would be. An unhappy seller could mean a sale that does not close. Index plus margin equal interest charged.Page 539, Loans that meet the underwriting standards of Fannie Mae or Freddie Mac are known as. his or her principal. In another case, litigants in a city-zoning dispute asked the Texas REALTORS to file briefs with the court. federal income taxes. A clear description of the copyrighted work infringed; A statement that you have a good faith belief that the use of the content identified in your DMCA notice is not authorized by the copyright owner, its agent or the law; Your contact information (such as your name, email address and telephone number); A certification, under penalty of perjury, that the DMCA notice is accurate, signed (either electronically or physically) by the copyright owner or the copyright owners legal representative. How can I help make clear to the IRS that my agents are independent contractors, not employees? First, there are no new changes to RESPA. Types of property requiring property management include. 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. address from the occupants name. What type of listing is legal in California, but is considered illegal in some other states? an estate from period to period. For a property built before 1960, earthquake weakness must be disclosed. At the time of the purchase, flood maps for the area showed the property not to lie in a flood hazard area. the factor that makes a neighborhood cohesive. total monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income. asking every prospect to recommend another prospect. The Texas REALTORS Legal Fund is maintained by the association through the oversight of the Legal Review Committee. a listing where the agent was not authorized to accept a deposit. uniformly to all real estate transactions. supporting statements with facts. Automatically ends at the end of the lease period.Page 694, A property manager would know that Section 8 housing refers to. recommend to the owner to accept it. o unemployment insurance. Usually 28 percent for qualifying. Bait-and-switch advertising is a federal offense. If the person receiving the commission is not an employee, then that person considers the commission to be revenue, and may pay taxes if there is a resulting profit. unsolicited fax messages. all of these. neither federally related loans nor 1 to 4 residential units only. H0:80Ha:<80\begin{aligned} She has a signed liquidated damages clause. neither use their own funds to make loans nor service loans they make. institutional loans. all of these. why the owners should deal with your firm. You should tell someone about your goals. the offer itself. Brokers have liability to commission salespeople as to - workers compensation. The buyers originally alleged damages in excess of $30 million. New listings excite agents and buyers.page 325, An open house was held on a property needing many obvious repairs. Salesperson Andrews listing was sold by another office for $189,500. The Residential Lease Application states that our company must make our office privacy policy available to rental applicants upon request. show unoccupied property first to give owner-occupants a chance to prepare for the showing. blockbusting. use technical terms wherever possible. The REALTOR's errors-and-omissions insurance carrier refused coverage on the basis that the claim involved bodily injury that was excepted from the policy. 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. salesperson is not responsible to a broker. the total monthly housing payment divided by the gross monthly income. Net Exclusive right-to-sell Exclusive agency Open, The broker did not give the principal a copy of the listing. However, while working as a salesperson under you as his sponsoring broker, he is covered by the provisions of the act and you are responsible for his real estate-related activities. Information about real estate agent and mortgage broker compensation first appeared in a 1995 HUD informal advisory opinion issued to the Independent Bankers Association of America. a.) that the Alquist-Priolo Act be complied with. Although HUD has never published criteria, it's likely the IRS rules would prevail.
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