Real Estate Brokerage Unit 9 Flashcards

Questions and Answers

What do antitrust laws prohibit in the real estate industry?

Monopolies

Price-fixing

Group boycotts

All of the above (correct)

What is a boycott in the context of antitrust laws?

Occurs when two or more businesses conspire against another business to reduce competition.

What is the definition of brokerage?

The business of bringing parties together, licensed to buy, sell, exchange, or lease real property.

What forms can compensation for real estate brokers take?

Commission, flat fee, or hourly rate. Signup and view all the answers

What is the purpose of disclaimers on real estate websites?

To indicate that the material is for informational purposes only, with no warranties made. Signup and view all the answers

What is electronic contracting in real estate?

Integrates information in real estate transactions electronically between parties. Signup and view all the answers

What is the Electronic Signatures in Global and National Commerce Act (e-sign)?

A law passed in 2000 to enforce electronic contracts the same as paper contracts. Signup and view all the answers

What does the term 'employee' refer to in real estate?

An individual who must follow rules governing working hours and office routines. Signup and view all the answers

What is an independent contractor in real estate?

A person who operates with more independence and less control from the employer. Signup and view all the answers

What is the Internet Data Exchange (IDX) policy?

Allows MLS members to have equal rights to display MLS data while respecting property owner rights. Signup and view all the answers

What is the role of a managing broker?

Responsible for the supervision of real estate professionals acting on behalf of the brokerage. Signup and view all the answers

What is meant by a minimum level of services in real estate?

A requirement for a minimum standard of services that must be provided by real estate professionals. Signup and view all the answers

What does MLS membership provide to real estate professionals?

Marketing opportunities and terms for cooperation in transactions. Signup and view all the answers

Study Notes

Antitrust Laws

Governed by the Sherman Antitrust Act at the federal level, with each state having its own antitrust laws.
Prohibit monopolies and contracts that unreasonably restrain trade, ensuring a competitive marketplace.
Common violations include price-fixing, group boycotts, customer or market allocation, and tie-in agreements.

Group Boycott

Occurs when multiple businesses conspire against another or agree to withhold patronage to limit competition.
Considered illegal under antitrust laws.

Brokerage

The practice of bringing parties together in real estate transactions.
Licensed brokers can buy, sell, exchange, or lease property for clients and may charge fees for these services.
Brokers can act as agents for clients or represent themselves differently as permitted by state law.

Commission

Broker compensation can take forms such as commissions, flat fees, or hourly rates.
Commission amounts are negotiable and should be agreed upon before representation begins.
Attempting to impose uniform commission rates violates antitrust laws; brokers can set their minimum acceptable rates.

Disclaimers

Real estate websites often include disclaimers to clarify that the information provided is for informational purposes only, with no warranties or representations made.

Electronic Contracting

A growing practice in real estate, facilitating transactions between clients, lenders, and agents via email or fax.
Aims to save time and money in real estate dealings.

Electronic Signatures in Global and National Commerce Act (e-sign)

Enacted in 2000 to provide legal validity to electronic contracts and signatures.
Ensures that contracts created electronically hold the same legal weight as traditional paper contracts.

Employee

Employers may establish rules concerning working hours, attendance, sales quotas, and dress codes for employees.

Independent Contractor

Operates with greater autonomy compared to an employee, with less control exerted by the employer over activities.

Internet Data Exchange (IDX) Policy

Allows all MLS members to equally display MLS data, respecting rights of property owners and brokers to market properties.

Managing Broker

Also known as the supervising broker, responsible for overseeing real estate professionals within the brokerage.

Minimum Level of Services

Some states mandate a minimum service level, emphasizing the need for real estate professionals to understand and explain the law to clients.

Multiple Listing Service (MLS)

Membership provides marketing opportunities for brokers, with rules outlining cooperation terms and compensation sharing in transactions.

Federal Trade Commission (FTC) and Do Not Call Registry

The FTC manages the registry, which lists telephone numbers of consumers indicating their preference to avoid telemarketing calls.

Description

Explore key concepts related to antitrust laws in the real estate industry through these flashcards. This unit focuses on the Sherman Antitrust Act and its implications at both federal and state levels. Enhance your understanding of how these laws protect competition and the free flow of goods and services.