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Vocabulary flashcards covering brokerage eligibility, agency relationships, compensation, and regulatory topics (advertising, TCPA, CAN-SPAM, and anti-trust).
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Who may broker
States vary; allowed entities typically include sole proprietorship, for-profit corporation, general or limited partnership, and joint venture; not allowed forms include non-profit corporation, business trust, and cooperative association.
Broker-Agent Relationship
The legal relationship where the salesperson is the agent and fiduciary of the broker, acts in the broker's name, and can be a subagent to the client.
Salesperson as fiduciary
The salesperson acts as an agent and fiduciary of the broker, representing the broker and the broker's interests in transactions.
Dual employment restriction
A salesperson may not have two employers or be paid by other parties; governed by the broker's agreement and state regulations.
Commission schedule
Agent compensation is determined by a pre-set schedule, typically after splits with cooperating brokers.
Commingling
Mixing broker's personal or business funds with trust funds; includes failure to deposit funds promptly.
Conversion
Using trust funds for personal or business purposes; misappropriating client or trust funds.
Advertising requirements
Ads must be truthful and not misleading, must contain the broker's ID, broker is responsible for content, and there must be no blind ads; disclose if an agent owns property.
No blind ads
Advertisements must reveal the broker/agent involvement and identity; cannot conceal who is advertising.
Telephone Consumer Protection Act (TCPA)
Regulates unsolicited telemarketing; solicitors must identify themselves, state how they can be contacted, and comply with do-not-call requests.
Do-Not-Call list
Consumers can place numbers on a Do-Not-Call list to restrict unsolicited calls.
CAN-SPAM Act
Bans sending unwanted commercial emails to wireless devices; requires express prior authorization and an opt-out option.
Antitrust laws (Sherman & Clayton)
Laws that prohibit restraints of trade, monopolies, predatory pricing, and exclusive dealing to maintain competition.
No collusion
Two or more businesses conspiring to disadvantage a competitor.
No price fixing
Two or more brokers agreeing to set or fix prices for services or commissions.
No market allocation
Colluding to restrict competition by dividing markets or segments in exchange for reciprocal agreements.