Delaware Real Estate Orientation EXAM
QUESTIONS WITH ANSWERS
On the surface, most brokers may seem pretty similar. So it's up to you to do a
little probing to discover what makes one broker different than another. That's
where you'll start to determine if you and the broker are a good fit. Which five
of these areas should you inquire about when looking for a broker? -
ANSWER>>1. Reputation
2. Policies and Procedures
3. Training Program
4. Culture
5. Specialites
One recommendation for finding a broker who works as hard as you will to
avoid liability is to review the firm's policies and procedures manual. But what
should you be looking for when you crack that manual open? Select the best
two . - ANSWER>>1. Clear Policies
2. Thoroughness
One recommendation is to find out about the size of the firm. Why is this an
important item to research? - ANSWER>>The size of the firm can affect the ways
you can relate to your fellow licensees and your broker.
It's a good idea to prepare for your interview with a broker by making a list of
the questions you'll ask. Identify each of the following questions as one that
should be on your list, and one that you don't want to ask a broker. -
ANSWER>>-What will you do to guarantee my success? (Don't ask)
-Are you still a practicing broker? (Ask)
-What strategies do your top producers use to succeed? (Ask)
-What types of marketing materials do you provide to your licensees? (Don't
ask)
,-What's your floor time policy? (Ask)
It's a good idea to prepare for your interview with a broker by making a list of
the questions you'll ask. Identify each of the following questions as one that
should be on your list, and one that you don't want to ask a broker. Part 2 -
ANSWER>>-What kind of salary do you offer? (Don't ask)
-What costs would I be responsible for? (Ask)
-What type of technology support do you provide? (Ask)
-Tell me about the training program you provide to new licensees. (ask)
Mr. Brady works in real estate for a brokerage firm called Whosit Properties. His
broker provides him with training and supervision. His work hours and the work
he does aren't set by his broker. As long as Mr. Brady gets the job done, his
broker doesn't care how much time it takes. Mr. Brady isn't required to work in
the office, and he must pay for his own work supplies.
Is Mr. Brady an independent contractor or an employee? -
ANSWER>>Independent Contractor
Independent Contractor - ANSWER>>-Worker's hours are set by the worker.
-Worker is responsible for expenses and must provide own work tools.
-Worker can choose to work from home or in the broker's office.
-Worker is paid by the job, not by the hour.
-Worker is supervised by the broker, but the broker doesn't direct or control the
worker's work.
Employee - ANSWER>>-Worker's expenses are covered by the broker.
-Worker's hours are set by the broker.
-Worker is required to work at a specified location chosen by the broker.
-Worker is required to do the work in the order specified by the broker.
Ms. Bumblegard receives a regular paycheck each pay period from the
brokerage firm for which she works. Her broker withholds money from her
paycheck and pays her state unemployment taxes. Ms. Bumblegard cannot file
, Schedule C to deduct business expenses, and her broker does not send her a
1099 for income-reporting purposes. When she started with the brokerage firm,
her broker asked her to fill out a W-4 form.
Is Ms. Bumblegard an independent contractor or an employee? -
ANSWER>>Employee
Worker fills out a W-9 form. - ANSWER>>Independent Contractor
Broker doesn't withhold taxes from the worker's pay. - ANSWER>>Independent
Contractor
Broker makes no tax payments or deposits on the worker's behalf. -
ANSWER>>Independent Contractor
Worker pays self-employment taxes. - ANSWER>>Independent Contractor
Worker fills out a W-4 form. - ANSWER>>Employee
Broker withholds federal, state, and Social Security taxes (FICA) for the worker. -
ANSWER>>Employee
If the worker earned $600 or more, the broker prepares forms 1096 and 1099,
distributes form 1099 to the worker for tax-preparation purposes, and submits
both of the forms to the IRS for income-reporting purposes. -
ANSWER>>Independent Contractor
Broker pays federal unemployment (FUTA) and state unemployment taxes. -
ANSWER>>Employee
Broker prepares quarterly reports (941) and annual reports (W-2, W-3, and
Form 940) and submits them to the IRS for income-reporting purposes. -
ANSWER>>Employee
QUESTIONS WITH ANSWERS
On the surface, most brokers may seem pretty similar. So it's up to you to do a
little probing to discover what makes one broker different than another. That's
where you'll start to determine if you and the broker are a good fit. Which five
of these areas should you inquire about when looking for a broker? -
ANSWER>>1. Reputation
2. Policies and Procedures
3. Training Program
4. Culture
5. Specialites
One recommendation for finding a broker who works as hard as you will to
avoid liability is to review the firm's policies and procedures manual. But what
should you be looking for when you crack that manual open? Select the best
two . - ANSWER>>1. Clear Policies
2. Thoroughness
One recommendation is to find out about the size of the firm. Why is this an
important item to research? - ANSWER>>The size of the firm can affect the ways
you can relate to your fellow licensees and your broker.
It's a good idea to prepare for your interview with a broker by making a list of
the questions you'll ask. Identify each of the following questions as one that
should be on your list, and one that you don't want to ask a broker. -
ANSWER>>-What will you do to guarantee my success? (Don't ask)
-Are you still a practicing broker? (Ask)
-What strategies do your top producers use to succeed? (Ask)
-What types of marketing materials do you provide to your licensees? (Don't
ask)
,-What's your floor time policy? (Ask)
It's a good idea to prepare for your interview with a broker by making a list of
the questions you'll ask. Identify each of the following questions as one that
should be on your list, and one that you don't want to ask a broker. Part 2 -
ANSWER>>-What kind of salary do you offer? (Don't ask)
-What costs would I be responsible for? (Ask)
-What type of technology support do you provide? (Ask)
-Tell me about the training program you provide to new licensees. (ask)
Mr. Brady works in real estate for a brokerage firm called Whosit Properties. His
broker provides him with training and supervision. His work hours and the work
he does aren't set by his broker. As long as Mr. Brady gets the job done, his
broker doesn't care how much time it takes. Mr. Brady isn't required to work in
the office, and he must pay for his own work supplies.
Is Mr. Brady an independent contractor or an employee? -
ANSWER>>Independent Contractor
Independent Contractor - ANSWER>>-Worker's hours are set by the worker.
-Worker is responsible for expenses and must provide own work tools.
-Worker can choose to work from home or in the broker's office.
-Worker is paid by the job, not by the hour.
-Worker is supervised by the broker, but the broker doesn't direct or control the
worker's work.
Employee - ANSWER>>-Worker's expenses are covered by the broker.
-Worker's hours are set by the broker.
-Worker is required to work at a specified location chosen by the broker.
-Worker is required to do the work in the order specified by the broker.
Ms. Bumblegard receives a regular paycheck each pay period from the
brokerage firm for which she works. Her broker withholds money from her
paycheck and pays her state unemployment taxes. Ms. Bumblegard cannot file
, Schedule C to deduct business expenses, and her broker does not send her a
1099 for income-reporting purposes. When she started with the brokerage firm,
her broker asked her to fill out a W-4 form.
Is Ms. Bumblegard an independent contractor or an employee? -
ANSWER>>Employee
Worker fills out a W-9 form. - ANSWER>>Independent Contractor
Broker doesn't withhold taxes from the worker's pay. - ANSWER>>Independent
Contractor
Broker makes no tax payments or deposits on the worker's behalf. -
ANSWER>>Independent Contractor
Worker pays self-employment taxes. - ANSWER>>Independent Contractor
Worker fills out a W-4 form. - ANSWER>>Employee
Broker withholds federal, state, and Social Security taxes (FICA) for the worker. -
ANSWER>>Employee
If the worker earned $600 or more, the broker prepares forms 1096 and 1099,
distributes form 1099 to the worker for tax-preparation purposes, and submits
both of the forms to the IRS for income-reporting purposes. -
ANSWER>>Independent Contractor
Broker pays federal unemployment (FUTA) and state unemployment taxes. -
ANSWER>>Employee
Broker prepares quarterly reports (941) and annual reports (W-2, W-3, and
Form 940) and submits them to the IRS for income-reporting purposes. -
ANSWER>>Employee
