Real Estate Unit 9

Is a good source of information on current laws in real estate

Question 1

Ensuring a standard of competence and professionalism in the real estate industry.

Question 2

1. establishing basic requirements for obtaining a real estate license.

2. defining which activities require licensing;

3. describing the acceptable standards of conduct and practice for licensees;

4. enforcing those standards through a disciplinary system.

a commission, department, division, board, and/or agency—for real estate professionals.

It may be a sole proprietorship, a corporation, a limited liability company, or a partnership with another real estate broker.

A physical address

Website

1. Maintaining space and equipment

2. Hiring licensed real estate professionals, as well as unlicensed support staff

3. Determining compensation

4. Directing staff

5. Implementing procedures for licensees to follow in carrying out activities permitted by the state's real estate license laws and regulations

The broker for whom the salesperson works

This is an agreement btw a salesperson and a broker

is responsible for supervision of the real estate professionals who act on behalf of the brokerage.

The individual must have a current real estate license.

The individual must have a written contract with the broker that specifies that the individual will not be treated as an employee for federal tax purposes.

A substantial portion of the individual's income as a real estate professional must be based on sales production or other output and not on the number of hours worked.

can be a combination office manager, marketer, organizer, and facilitator who has a fundamental understanding of the real estate industry.

a licensed real estate broker

,employed by the buyer or seller under a valid contract,

Or the procuring cause of the sale.

the broker must have started or caused an uninterrupted chain of events that resulted in the sale.

is one who is prepared to buy on the seller's terms and is ready to take positive steps toward consummation of the transaction

has a change of mind and refuses to sell

,has a spouse who refuses to sign the deed,

has a title with uncorrected defects,

committed fraud with respect to the transaction,

is unable to deliver possession within a reasonable time,

insists on terms not in the listing (e.g., the right to restrict the use of the property), or

has a mutual agreement with the buyer to cancel the transaction.

1. Help the seller sale the property

2. Perform a comparative market analysis (CMA) to assist the seller in pricing the property

3. Assist with marketing the property using the MLS and websites

Locating and screening a buyer

4. Help fill in the blanks of a sales agreement

5. Assist with the closing of the transaction

Working out the economics of renting versus owning

Helping a buyer with a mortgage preapproval

Consulting on a buyer's desired location

Visiting properties with a buyer and checking property information

Helping fill in the blanks of an offer to purchase

Assisting with negotiations

Assist with the closing of the transaction

accept delivery of and present offers and counteroffers to the client;

assist the client in developing, negotiating, and presenting offers and counteroffers;

answer the client's questions about offers, counteroffers, and contingencies.

These laws prohibit monopolies and any contracts, combinations, and conspiracies among competitors that unreasonably restrain trade—that is, behaviors that interfere with the free flow of goods and services in a competitive marketplace.

price-fixing, the group boycott, allocation of customers or markets, and tie-in agreements.

is a practice in which competitors agree to set prices rather than letting competition in the open market establish those prices.

occurs when two or more businesses conspire against another business or agree to withhold their patronage to reduce competition.

involves an agreement between real estate brokers to divide their markets and refrain from competing for each other's business.

(also known as tying agreements) are agreements to sell one product only if the buyer purchases another product as well.

1 million dollars fine and 10 years in prison

allows all MLS members to have equal rights to display MLS data, while also respecting the rights of the property owner and the real estate broker who represents the property owner to market a property as they wish.

Says that MLS participants interested in keeping their listings from competitors' websites cannot then display other real estate brokers' listings.

Indicates that the material on the site is solely for informational purposes and that no warranties or representations have been made.

All electronic communication by a real estate professional must include the professional's name, office address, and broker affiliation.

Real estate professionals must disclose their license status on each page of a website that contains an advertisement.

The listing of only a sales associate's name without the sponsoring broker's name in an advertisement is prohibited.

An advertisement must be a true, current representation of the information it contains and not be misleading.

The transactions are conducted through email or fax and can save both time and money.

the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-Sign).

A contract cannot be denied its legal effect just because an electronic record was used.

A record or signature cannot be denied its legal effect just because it is in an electronic format.

If a state's law requires a signature on a contract, an electronic signature is sufficient.

If a state's law requires a written record, an electronic record is sufficient.

Was passed by Congress in 2000

The purpose of E-Sign is to make contracts (including signatures) and records legally enforceable, regardless of the medium in which they are created.

The registry is a list of telephone numbers from consumers who have indicated their preference to limit the telemarketing calls they receive.

Sets basic rules for entering an enforceable contract using electronic means

means that a broker's compensation is based on charges for separate activities that the client desires

1. regulate the real estate industry

2. main objective is to make sure that the rights of purchasers, sellers, tenants, and owners are protected from unscrupulous or negligent practices.

The regulations have the same force and effect as statutory law, though if they conflict, the statute will prevail.

might be licensed as a real estate salesperson or be a licensed real estate broker who simply chooses to work for another broker rather than set up an independent brokerage office.

to follow rules governing working hours, office routine, attendance at sales meetings, assignment of sales quotas, and adherence to dress codes

1. independent contractor operates with more independence than an employee

2. Independent contractors are responsible for paying their own income and Social Security taxes

Broker

include clerical tasks, office management, website development and maintenance, and production of marketing pieces, but with little direct contact with consumers.

can also set up and host open houses and assist in all aspects of a real estate transaction, including day-to-day contact with consumers.

1. Licensed assistant has to get paid by the employing broker

2. Unlicensed assistant can be paid by a sales associate

In the contact with the client

A written agreement

1. Commission

2. Brokers fee

3. Flat flee

4. Hourly rate

the broker representing the party who pays the commission, and the agreed-upon share of the commission is paid to the cooperating broker.

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?

CAN-SPAM Act