In Texas, real estate commissions are
A) negotiable between the client and the broker.
B) set by law.
C) determined by local groups of brokers.
D) set by the Texas Real Estate Commission.
Answer: A) negotiable between the client and the broker.
Commissions are always negotiable between the principal and the agent. The commissions are not determined by law, the Real Estate Commission, or a group of local brokers. Any attempt to set commission rates among competitors in the real estate industry would be considered an antitrust violation. A broker does not commit an antitrust violation by requiring all the broker's own licensees to charge a specific rate or amount so long as the broker does not conspire or agree with competing brokers to do the same. All listings and buyer/tenant representation agreements in the firm belong to the broker. Therefore, the broker is only prescribing a commission amount for all the broker's own agreements.
You might also like to view...
Corporation can have one or more owners called ________________, operates under a name distinct from the names of its owners.
Fill in the blank(s) with the appropriate word(s).
The price of a stock is 60. This represent the present discounted value of all the future cash flows an investor expects to receive from the stock.
a. true b. false