Real Estate Brokerage Flashcards With 100%
Verified Solutions
Federal Trade Commission (FTC) - ANSWERS A federal body formed through an act of
Congress in 1914 with the power to declare trade practices unfair that conflict with basic
policies of antitrust legislation
Price fixing - ANSWERS The illegal agreement between competitors to fix services or
products at a specific price
Market allocation - ANSWERS The illegal process of dividing up a market by
geography, price point, etc., to limit competition
Group boycotting - ANSWERS An illegal agreement between parties to not do business
with a particular person or company
Policies and procedures manual - ANSWERS Outlines a brokerage's guidelines for
employees and independent contractors that clarify direction, reduce confusion, and
provide specific parameters for everyone to follow
Employee - ANSWERS A worker whose employer controls the details of the worker's
performance
Independent contractor - ANSWERS A person whose work is not directly controlled by a
supervisor or manager
Referral fee - ANSWERS A fee paid to someone who receives a client or customer for
service to the person referring the client or customer
Real Estate Settlement Procedures Act (RESPA) - ANSWERS An act which protects
borrowers from overcharges by requiring disclosure and prohibiting kickbacks
Procuring cause - ANSWERS The initiator in a chain of events that leads to a real
estate sale
Code of ethics - ANSWERS A system of rules and norms established by a group of
professionals who agree to adhere to them to maintain the standards of their profession
Tie-in arrangement - ANSWERS An antitrust violation in which the provider of a service
requires the customer or client to purchase another service
Verified Solutions
Federal Trade Commission (FTC) - ANSWERS A federal body formed through an act of
Congress in 1914 with the power to declare trade practices unfair that conflict with basic
policies of antitrust legislation
Price fixing - ANSWERS The illegal agreement between competitors to fix services or
products at a specific price
Market allocation - ANSWERS The illegal process of dividing up a market by
geography, price point, etc., to limit competition
Group boycotting - ANSWERS An illegal agreement between parties to not do business
with a particular person or company
Policies and procedures manual - ANSWERS Outlines a brokerage's guidelines for
employees and independent contractors that clarify direction, reduce confusion, and
provide specific parameters for everyone to follow
Employee - ANSWERS A worker whose employer controls the details of the worker's
performance
Independent contractor - ANSWERS A person whose work is not directly controlled by a
supervisor or manager
Referral fee - ANSWERS A fee paid to someone who receives a client or customer for
service to the person referring the client or customer
Real Estate Settlement Procedures Act (RESPA) - ANSWERS An act which protects
borrowers from overcharges by requiring disclosure and prohibiting kickbacks
Procuring cause - ANSWERS The initiator in a chain of events that leads to a real
estate sale
Code of ethics - ANSWERS A system of rules and norms established by a group of
professionals who agree to adhere to them to maintain the standards of their profession
Tie-in arrangement - ANSWERS An antitrust violation in which the provider of a service
requires the customer or client to purchase another service
