Realty & Personal Property

What is the best definition of a brokerage?

A(n) _____ Individual who works under a broker as a self-employed individual.

What is the MOST likely tool a broker would use to help ensure that associated licensees remain in compliance with the law?

What is the best definition of a trust fund, as used in real estate?

Barb is a broker-owner of Barb’s Houses, LLC. She decides not to maintain a client trust account. Barb is:

Miller is a real estate broker who supervises licensees at ABC Realty. Miller does not practice real estate, nor does he invest in it. Where does he get the income to operate the firm?

What business entity offers its members the advantage of limited personal liability and a choice of how the business will be taxed?

Which business entity operates like a corporation but is treated like a partnership for tax purposes and passes gains and losses directly to its shareholders?

A partnership may perform acts for which a real estate broker license is required, as long as every general partner has:

Sherman is a new salesperson working for Rhonda, his broker. What is Sherman’s relationship to Rhonda, per the IRS designation?

As a new real estate salesperson, in what area will Rachel MOST likely practice?

One test to see whether a licensee is in fact an employee of a broker is:

Nia was deemed a statutory nonemployee in part because:

Which worker would likely qualify as a statutory nonemployee?

Kali is an employing broker who begins to treat one salesperson like an employee, providing benefits, requiring them to work certain hours, and compensating them for their time rather than their closed sales. What might happen if the IRS learns of this new treatment?

A good rule of thumb is for licensees to have ______ of living expenses set aside before launching their business.

Which of the following is important knowledge for a real estate salesperson to have?

Which is the most important trait for Rachel, a licensed real estate salesperson, to have if Rachel wants to gain referrals?

From whom can a salesperson receive commission?

To better serve clients, Bart, a real estate salesperson, should gain specific knowledge of:

What percentage of a licensee’s gross commissions should be set aside for taxes?

You’re just starting out in real estate, and you feel financially prepared because you have an adequate amount of savings set aside. How many months of income should you have saved and why?

As a self-employed salesperson, Scott will have to pay which of the following taxes? Select all correct responses.

As a self-employed salesperson, what tax forms will Roberto file each year? Select all correct responses

When it gets right down to it, real estate is a _________ business

What is the purpose of the mayor campaign?

What’s the best way to turn a client into future business?

A real estate licensee’s biggest investment is:

One relationship mistake many licensees make after a closed sale is that they fail to:

A real estate business is built on:

Which of the following is required for a real estate licensee to be eligible for a sales commission? Select all correct responses.

During a listing interview, a seller demands that the listing agent reduce the proposed commission by 1%. What is the best course of action for the licensee?

The amount of commission that a licensee is paid:

Jack knows that his neighbor Peg’s brother is moving to town. He tells Peg that if she gets her brother to buy his house, he’ll give her a 5% commission, even though she’s not a real estate licensee. Peg’s brother buys the house, and Jack doesn’t pay her a dime. What can Peg do to get her commission?

What mandates how much a real estate broker can charge for a commission?

Prices in a local market are trending downward. A seller found that she had to lower the price of her house by $25,000 over the course of six months before she could find a buyer. Upset over selling at a loss, she informs her listing agent that she is going to lower the commission rate that she pays. Can she do this?

Which of these are possible ways in which real estate licensees may be compensated through their employing broker? Select all correct responses.

Which situation would NOT require a licensee to disclose their compensation arrangement?

In the multiple listing service, it states that the listing broker will pay 4% to a buyer’s broker. Buyer’s broker Sue earns a total of $5,660 commission. What was the sales price of the property?

A property sold for $249,500. The total sales commission is 6% and is divided as follows: Listing brokerage gets 60% of the commission; selling brokerage gets 40% of the commission. The selling agent gets 60% of the selling brokerage commission. How much will the selling agent earn?

A licensee who receives a commission of $11,268 has a 50%-50% split with their broker. The sales price of the property is $375,600. What rate of commission did the broker charge?

Seller Barbara just sold her house for $234,500. Her listing agreement indicates that she will pay 6.5% of the sales price as commission when the transaction closes. How much commission does she owe?

Big Town Developer hires broker Bob to sell condominium units for a 5.5% commission on each sale. If every condo unit sells for $145,000, how many condos does Bob have to sell to earn at least $70,000?

A broker listed a property for sale, negotiating 5% commission on the first $200,000, 4% commission on the next $300,000, and 6% commission on any amount over half a million dollars. The property sold for $600,000. What is the broker’s commission?