R E Ch 15 Brokerage and Broker-Salesperson Relationships and Compensation

Commissions are always:

Negotiable.

Which of the following types of agency is not permitted in Nevada?

Transactional agency.

If a Nevada real estate licensee wants to serve in a dual agent capacity, he must have a signed disclosure form known as:

"Consent to Act" form.

Someone who handles all the business of the principal is known as:

The universal agent

When the conduct of the agent and the consumer indicates that they have mutually agreed to an agency relationship, this is known as:

Implied agency.

If a real estate licensee is acting for more than one party in a transaction (also known as "dual agency"), one part of the written consent he obtains from all parties to the transaction must promise that he will not disclose any confidential information for how long after the revocation or termination of the brokerage agreement?

One year.

Collusion between brokers and sales people with competing companies to set commission rates is an illegal practice known as:

Price-fixing.

An exaggeration, superlative comment, or subjective opinion, which is legal, is known as:

Puffing.

Which of the following statements is a true statement?

Nevada licensees owe the duty of disclosure to their clients. This means the licensees must disclose all material facts about the property and the transaction to their clients.

If a licensee's actions started or caused a chain of events that resulted in the sale, the licensee is considered to be:

The procuring cause of sale

An actual agency relationship that arises by the actions of the parties rather than by express agreement

Ostensible Agency

A method of creating an agency relationship in which the principal (seller or buyer) accepts the conduct of someone who acted without prior authorization as the principal's agent.

Ratification

This type of agency occurs when a real estate licensee is a partner in the ownership of the subject property

Agent Coupled with an Interest

In Nevada, there are three ways in which a client can be represented in a real estate transaction

Single Agency, Dual Agency, Assigned Agency

Another disclosure form required by Nevada law is

Form 525 - Duties Owed By A Nevada Real Estate Licensee

Consent to Act is form

Form 524

Most commonly a commission will be

A percentage of the sale price or a Flat fee

 This occurs when two or more companies agree to the division of a particular market area, so as not to be in direct competition with one another in specific areas

Market Division is illegal

The Sherman Antitrust Act imposes criminal penalties of:

• Up to $1 million for an individual; and

• Up to 10 years in prison for an individual; or

• Up to $100 million for a corporation.