History and Structure of the RE Industry
When was the first American real estate brokerage established?
A. 1803
B. 1855
C. 1908
D. 2001
What is B, 1855?
What must brokers ensure for their licensees?
A. They are paid on time
B. They remain licensed
C. They advertise daily
D. They work weekends
What is B. They remain licensed?
Salespeople are classified as?
A. Employees
B. Statutory nonemployees
C. Volunteers
D. Freelancers
What is B. statutory nonemployees?
What is the most common way to find business?
A. Cold calls
B. Mailers
C. People they know
D. Billboards
What is C. People they know?
Who pays commission to a salesperson?
A. Client
B. Buyer
C. Employing broker
D. Brokerage board
What is C. Employing broker?
What year was the National Association of Realtors (NAR) founded?
A.1803
B.1855
C.1908
D.2000
What is C. 1908?
Improper handling of trust funds may lead to?
A. Awards
B. Commissions
C. Fines and suspension
D. Promotions
What is C. Fines and suspension?
Salespersons usually get paid by?
A. Hourly wages
B. Bonuses
C. Commision from closings
D. Tips
What is C. Commision from closings?
What does FSBO stand for?
A. For Sale By Owner
B. Free Service Broker Only
C. First Seller's Broker Offer
D. Full Sale By Offer
What is A. For Sale By Owner?
Commision rate times sales price equals?
A. Salary
B. Commision
C. Referral fee
D. Bonus
What is B. Commision?
Which event added a vast amount land to the US in 1803?
A. Gold Rush
B. Louisiana Purchase
C. Homestead Act
D. Land Act
What is B. Louisiana Purchase?
What are trust funds?
A. Brokers salary
B. Client funds
C. Taxes
D. Rebates
What is B. Client funds?
Licensees should save how many months of living expenses before starting?
A. 1
B. 3
C. 6
D. 12
What is C. 6?
Which activity helps maintain relationships?
A. Ignore emails
B. Follow up gifts
C. Avoid calls
D. Skip newsletters
What is B. follow up gifts?
Which must be disclosed to all parties?
A. Broker's birthdate
B. All sources of compensation
C. Personal expenses
D. Phone number
What is B. All sources of compensation?
Which of the following is NOT a type of real estate business entity?
A. Corporation
B. LLC
C. Partnership
D. Collective
What is D. Collective?
What should brokers maintain for holding client trust funds?
A. Credit account
B. Separate trust account
C. Brokerage general account
D. Checking account
What is B. separate trust account?
Which of the following is a start-up cost?
A. Client dinner
B. Postcard mailers
C. Pre-license education
D. MLS renewal
What is C. Pre-license education?
What happens if a license doesn't keep in touch?
A. They get more business
B. They maintain clients
C. They lose referrals
D. They get fined
What is C. They lose referrals?
If commission is 6% on a $500,000 sale, what is the total?
A. $30,000
B. $25,000
C. $35,000
D. $20,000
What is A. $30,000?
What is a real estate broker responsible for?
A. Training buyers
B. Supervising licensees
C. Buying homes
D. Loan underwriting
What is B. Supervising licensees?
What is a key aspect of broker availability?
A. Weekends only
B. Business hours only
C. Defined office hours
D. Holiday work
What is C. Defined office hours?
What form do licensees typically use to report income?
A. W-2
B. 1040EZ
C. Schedule C
D. 1040A
What is C. Schedule C?
What is a lead funnel used for?
A. Refinancing
B. Prospecting sources
C. MLS listings
D. Home inspections
What is B. prospecting sources?
What is required for a salesperson to receive a commission?
A. License must be active
B. Approval by seller
C. Broker bonus
D. MLS fee paid
What is A. License must be active?