Brokerage Basics
A person licensed to represent others in the sale, purchase, or lease of real estate for compensation.
Who is a real estate broker?
This broker represents the seller in a real estate transaction.
This fiduciary duty requires a broker to put the client's interests above all others.
What is loyalty?
This organization publishes the Code of Ethics for REALTORS®.
What is the National Association of REALTORS® (NAR)?
Money received from clients that must be kept separate from the broker's personal funds.
What are trust (escrow) funds?
This individual must work under the supervision of a licensed broker.
Who is a real estate salesperson (sales associate)?
This broker works with buyers to locate and purchase property.
Who is the buyer's broker?
A broker must keep this type of client information private unless authorized to disclose it.
What is confidential information?
This illegal practice involves competitors agreeing to charge the same commission rates.
What is price fixing?
This account is used to hold earnest money deposits.
What is an escrow (trust) account?
The legal relationship between a broker and a client is called this.
What is agency?
This occurs when one broker represents both buyer and seller in the same transaction with informed consent.
What is dual agency?
This fiduciary duty requires a broker to account for all money and property entrusted to them.
What is accounting?
This antitrust violation occurs when competitors divide markets or territories.
What is market allocation?
This type of brokerage business is owned and operated by a single broker.
What is a sole proprietorship?
This agreement authorizes a broker to represent a client in a real estate transaction.
What is a listing agreement?
This broker helps facilitate a transaction without representing either party as an agent.
Who is a transaction broker (facilitator)?
This duty requires brokers to disclose all known material facts about a property.
What is disclosure?
This federal law promotes competition and prohibits unfair business practices.
What is the Sherman Antitrust Act?
Brokers are responsible for supervising these licensed individuals.
Who are sales associates (salespersons)?
The compensation a broker earns for successfully completing a transaction is called this.
What is a commission?
A broker who works with another broker to sell a listed property is known as this.
Who is the cooperating broker?
The acronym OLD CAR helps remember these six fiduciary duties.
What are Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care?
Members of NAR pledge to follow this document in addition to obeying the law.
What is the REALTOR® Code of Ethics?
A broker who owns or manages the brokerage firm is known by this title.
Who is the principal (managing) broker?