Texas Principles of Real Estate 1 Latest 2023 Study Guide Brokerage, Exams of Construction

Download Texas Principles of Real Estate 1 Latest 2023 Study Guide Brokerage and more Exams Construction in PDF only on Docsity! Texas Principles of Real Estate 1 Latest 2023 study guide brokerage - The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate. real estate broker - A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee real estate salesperson - A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker residential property - A type of property that includes one to four dwelling units commercial property - Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial property. industrial property - Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components special purpose property - A category of real property created as a result of combining the land and its improvements for a single highest and best use mixed use property - Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections brokerage - The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate is known as...? public parks - Government held properties include which of the following...? yes - Must property inspections must be licensed by the Texas Real Estate Commission...? special purpose - A church is a definition of a _____________ ____________ property. continuing education courses - What courses must be taken after you obtain your real estate license...? 60 (part I and part II) - The qualifying Real Estate Principles course consists of how many classroom hours in total...? 3600 - How many points must an applicant earn in order to obtain their real estate broker's license...? educational standards advisory - The mission of the _______________ _______________ ________________ Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses...? qualifying education - The pre-licensing courses needed to obtain your real estate license are considered what type of courses...? improvements - Changes or additional made to a property, such as walls and roads. These typically increase the value of a property, except in some cases of over improvement non-homogeneity - A physical characteristic of land describing that land as a unique commodity value - The present worth of future benefits price - The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction cost - The total dollar expenditure for labor, materials, and other items related to construction supply - The amount of goods offered for sale within a given market at a given price during a given time period demand - The amount of goods consumers are willing and able to buy at any given price during any given time period An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process. market comparison approach - A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties. cost approach - An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land. income approach - One of the three methods of the appraisal process generally applied to income producing property, and involves a three-step process - (1) find net annual income, (2) set an appropriate capitalization rate or "present worth" factor, and (3) capitalize the income dividing the net income by the capitalization rate. assessed value - A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property. insured value - The cost of replacing a structure completely destroyed by an insured hazard. depreciated value - The basis of a depreciable asset used to compute the taxable gain from its sale; the basis is acquisition cost plus capital improvements less accrued depreciation. income approach - Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use...? Market Comparison Approach Income Approach Cost Approach All of the above cost approach - A non-profit organization in looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use...? Market Comparison Approach Income Approach Cost Approach All of the above depreciate - Improvements typically ............ in value? Rescind Escalate Appreciate Depreciate false - Price is typically equal to the cost of the property...? True False The licensee is convicted of a felony - A licensee's license may be suspended or revoked if which of the following occurs...? The licensee changes brokerages The licensee is convicted of a felony The licensee does not close a transaction within one calendar year The licensee negotiates on behalf of his/her client true - Real estate agents and brokers must be careful not to provide legal advice to their clients...? True False the agent's sponsoring broker - Who holds the real estate license of an agent...? The agent's sponsoring broker The agent themselves The Texas Real Estate Commission All of the above 18 - In order to obtain a real estate license, an applicant must be at least how many years of age...? 18 20 21 22 inactive - If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what...? Active Inactive Revoked Suspended 2 - Real estate licenses are issued for a period not to exceed how many years...? 1 2 3 4 A - A means of comparing similar type properties, which have recently sold, to the subject property is known as the...? AMarket Comparison Approach BIncome Approach CCost Approach DAssessment Approach A - The amount of goods offered for sale within a given market at a given price during a given time period is known as... ASupply BDemand CGDP DNone of the above B - A property manager is an example of what type of agent...? AGeneral Agent BSpecial Agent CSpecific Agent DUniversal Agent A - The employer of an agent is known as the...? APrincipal BCustomer CEscrow DAll of the above land - The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards. bundle of rights - The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property. mineral rights - The landowner's ability to take minerals from the earth or to sell or lease this right to others. air rights - The rights in real property to the reasonable use of the air space above the surface of the land. real estate - Land and everything permanently attached to land. mixed-use property - - Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections. mobile home - A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation systems. time-share - license or contractual or membership right of occupancy in a project which is not coupled with an estate in the real property. cooperative - A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a...? Cooperative Condominium Townhouse PUD manufactured home dealerships - Who is responsible for selling newly constructed mobile homes...? Manufactured home dealerships Real estate brokers Real estate agents Mobile home owners true - Modular homes can typically be built quicker and at a lower cost as compare to homes constructed on-site...? True False shares of stock - A cooperative owner owns ......................... in the cooperative? Shares of stock A deed Title All of the above deed - Since a CONDOMINIUM is considered Real Property, each unit owner receives a ____________ at closing. common areas - Areas in a condominium that are used by all residents. true - true/false The SHARES OF STOCK are considered PERSONAL PROPERTY NOT REAL PROPERTY proprietary lease - While cooperative owners do not own their apartment unit, they are allowed to occupy the unit through a __________________ _______________. capital gains - The profit realized from the sale of real estate or other investment. Capital loss occurs when an investment property or another type of investment is sold at a loss. true - For tax purposes, real estate taxes can be deducted from personal income...? True False all of the above - Which of the following is a tax deduction a homeowner can take advantage of...? Mortgage interest payments Real estate taxes Loan origination fees All of the above encourage homeownership - Tax benefits for homeowners are provided in part to...? Discourage homeownership Encourage homeownership Reduce the length of homeownership Decrease mortgage payments capital gains - The profit realized from the sale of real estate or other investment is known as...? Capital Gains Debits Credits Deductibles 500,000 - A married couple is exempt from paying taxes on capital gains for up to how much in profit if they lived in their house for at least 2 of the last 5 years...? $100,000 $250,000 $500,000 $1,000,000 all of the above - What is typically covered in a homeowners policy...? Personal property within the house The house itself Liability All of the above HOB - What is the most common homeowners policy found in Texas...? HOA HOB HOC HOD 20 - If the replacement cost of an item with a 5 year life span is $100, and it is 4 years old, what is the actual cash value of the item...? flood damage - Most homeowners policies do NOT cover which of the following...? Flood damage Smoke damage Fire damage All of the above actual cash value - The replacement cost minus depreciation is referred to as...? Net cash value Actual cash value Gross cash value Effective cash value A - Which of the following is an advantage to owning a home...? AAll of the above BTax benefits CPride of ownership DPotential for asset appreciation A - A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property is known as a...? ACondominium BCooperative CTownhouse DPUD A - Which of the following is NOT a form of real property...? ACooperative BCondominium CTownhouse DSingle family house disclosure - A broker must inform their clients of all known facts related to a transaction. This is an example of what fiduciary duty...? Disclosure Loyalty Care Accounting an escrow account - A buyer's earnest money should be deposited in which of the following...? The broker's account The seller's account An escrow account Any of the above disclosure - A seller's broker is required to tell their client any relationship they may have with the buyer. This is an example of which fiduciary duty...? Loyalty Disclosure Care Accounting Indemnification - Reimbursement or compensation paid to someone for a loss already suffered. indemnification - This reimbursement or compensation paid to someone for a loss already suffered is known as...? Indemnification Consideration Arbitration Conversion puffing - The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth is known as...? Redlining Novation Puffing Steering compensation - The 'C' in the acronym C.I.I.A. stands for...? Care Consideration Confidentiality Compensation availability - The seller must allow their agent to show the property to prospective buyers. This is an example of what responsibility owed by the seller to the agent...? Availability Care Disclosure Accounting all of the above - Which of the following is owed to a customer by an agent...? Reasonable care and skill Honesty Disclosure of any known material facts All of the above honesty - Which of the following is owed to a customer by an agent...? Honesty Accounting Availability Indemnification information - According to this responsibility, the seller must always provide any known material facts about the property...? Care Information Loyalty Accounting latent defect - A defect known to the seller but not to the buyer, and is not discoverable by ordinary inspections is referred to as a/an...? Latent Defect Non-structural Defect Structural Defect Insignificant Defect deceptive trade practices act - This Act protects consumers against false, misleading, or deceptive acts...? Deceptive Trade Practices Act Consumer Protection Act Fair Trade Act Texas Consumer Act seller's disclosure notice - The seller is required to provide buyers with which of the following documents...? Survey Property Inspection Report Seller's Disclosure Notice Property Condition Report false - Real estate agents cannot be held liable for any false or misleading information about a property...? True False consumer - The Texas Deceptive Trade Practices Act defines this individual as someone who seeks, or acquires, by purchase or lease, any goods or services...? Agent Principal Client Consumer 25,000,000 - According to the Texas Deceptive Trade Practices Act, businesses with assets exceeding .............. are not considered consumers? $1,000,000 $5,000,000 $10,000,000 $25,000,000 caveat emptor - When a buyer is required to examine the property and buy at his/her own risk, it is referred to as...? Caveat Emptor Indemnification Fraud Calculated Risk all of the above - Texas Real Estate License Act Texas Discrimination Act Texas Civil Rights Act All of the above - Fair housing complaints cannot be filed through the Texas Workforce Commission in which of the following cities...? Austin Corpus Christi Dallas All of the above HUD - The Texas Workforce Commission cannot take fair housing discrimination complaints if the same complaint is also filed with....? HUD US Attorney General Department of State TREC Texas Fair Housing Act - All buildings built after March 31, 1991 must comply with the design and construction requirements of the...? International Building Code US Fire Code Texas Fair Housing Act All of the above complainants - Those who file a fair housing complaint with HUD are referred to as...? Defendants Prosecutors Respondents Complainants respondents - Those who HUD fair housing complaints are filed against are referred to as...? Complainants Prosecutors Respondents Defendants - A respondent of a HUD fair housing complaint has how many days to submit a response...? 5 10 15 30 A - In addition to the loyalty owed by an agent to his/her client, the agent must also act fairly to other customers in the transaction. This is an example of...? AFidelity BIntegrity CCompetency DObedience A - The interest of a client must be put before the interests of the agent. This is an example of...? AFidelity BCompetency CIntegrity DAll of the above A - An agent should be informed on market conditions affecting the real estate business. This is an example of...? ACompetency BLoyalty CFidelity DAll of the above A - The intricacies in marketing properties for others involves...? ACompetency BFidelity CLoyalty DObedience A - Exercising judgment and skill in the performance of an agent's practice is also known as...? ACompetency BFidelity CLoyalty DObedience protect the public from incompetent or dishonest salespersons and brokers - What is the primary purpose of real estate licensing laws...? Protect the public from incompetent or dishonest salespersons and brokers Raise revenue Help licensees earn higher commissions Increase property values - Who administers the Texas Real Estate License Act...? U.S. Attorney General National Association of Realtors Texas Real Estate Commission Texas Association of Realtors - Who administers the Texas Real Estate License Act...? U.S. Attorney General National Association of Realtors Texas Real Estate Commission Texas Association of Realtors 9 - The Texas Real Estate Commission consists of how many members...? 5 6 7 9 6 - How many members of the Texas Real Estate Commission are real estate brokers...? 3 5 6 9 sunset act - The Texas Real Estate Commission is periodically reviewed under this Act...? Sunset Act Fair Housing Act ADA Texas Licensing Act 3 - The Texas Real Estate Commission consists of how many non-licensed public members...? 0 3 2 years - TREC may renew a real estate license for no more than...? 1 year 2 years 3 years 4 years 2x or 100% more - If an individual's license has been expired for greater than 90 days, but less than 6 months, they may renew their license by paying a fee to the Commission equal to...? 1.5x the required renewal fee 50% 2x the required renewal fee 100% more 3x the required renewal fee The required renewal fee Real Estate Recovery Trust Account - A seller may be reimbursed for damages caused by their real estate agent or broker from which of the following...? The Texas Association of Realtors The Real Estate Recovery Trust Account The Texas Escrow Account The U.S. Recovery Trust Account 2 - An action for judgment for order of payment from the Real Estate Recovery Trust Account must be made within .......... years of the cause of action? 2 3 4 7 sponsoring broker - As a real estate salesperson, all commissions must be paid to them by the...? Principal Client Sponsoring broker Customer dual agent - A broker who acts as an intermediary in a transaction operates as a...? Universal agent General agent Single agent Dual agent all of the above - Payments into the Real Estate Recovery Trust Account are provided by which of the following...? License application fees Certificate of Registration fees Administrative penalty fees All of the above David's sponsoring broker - David is a real estate agent who referred a client to Andrew, another agent in the office. Andrew agreed to give David a 25% referral fee. Who must pay the referral fee to David...? David's sponsoring broker Andrew The Client The Principal survey - A legal description is typically ascertained through a...? Key Plan Site Map Survey All of the above all of the above - Which of the following is a method used to describe property in the United States...? Government Survey Metes and Bounds Lot and Block All of the above legal description - An exact way of describing real estate in a contract, deed, mortgage, or any other document that will be accepted by a court of law is known as a...? Legal Description Site Description Plot Description Bench Mark bench mark - A monument used to establish the elevation of the point, usually relative to Mean Sea Level, is known as a...? Meridian Base Line Bench Mark Range Government Survey System - A method of specifying the location of a parcel of land using prime meridians, base lines, standard parallels, guide meridians, townships and sections is known as the...? GPS System Metes and Bounds System Government Survey System Lot and Block System range - A strip or column of land six miles wide, determined by a government survey, running in a north-south direction, lying east or west of a principal meridian is known as a...? Plat Block and Lot Township Range Range lines - A series of government survey lines running north and south at six-mile intervals starting with the principal meridian and forming the east and west boundaries of townships are known as...? Range Lines Bench Lines Datum Lines Plot Lines metes and bounds - Land in Texas was originally identified by...? Metes and Bounds Lot and Block Government Survey Townships all of the above - Which of the following is an example of a monument...? A tree A post A stream All of the above datum - Express Contract Implied Contract Note Deed all of the above - Real estate agents use which of the following contracts...? Express Contracts Listing Contracts Buyer Representation Agreements All of the above impied - When you give your keys to a valet, you assume that the valet will park your car in exchange for a fee. This is because a/an ................... contract was created between you and the valet? Express Voidable Implied Exclusive implied contract - An agreement that has not been put into words, but is implied by the actions of the parties is known as a/an...? Implied Contract Express Contract Deed Note bilateral contract - A contract in which each party promises to do something is referred to as a...? Unilateral Contract Bilateral Contract Executed Contract Voided Contract unilateral contract - This contract is formed only if another party performs the requested act...? Bilateral Contract Executed Contract Unilateral Contract Voided Contract void contract - A contract that has no force or effect is referred to as a/an...? Void Contract Valid Contract Executory Contract Executed Contract real estate broker - A listing contract exists between a seller and the...? Real estate broker Real estate salesperson Customer Any of the above Assignment - A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a/an...? Assignment Novation Conversion Offer and acceptance assignment - If one of the parties to a contract wants to withdraw without terminating the contract, which of the following can be used...? Novation Acknowledgement Assignment Conversion assignees - Those to whom property or interests therein shall have been transferred are known as...? Trustors Trustees Assignees Assignors assignor - One who assigns or transfers property is known as a/an...? Assignor Assignee Trustor Trustee breach - A violation of the terms or conditions of a contract without a legal excuse is known as a...? Discharge Conversion Breach All of the above liquidated damages - Damages benefiting the non-defaulting party as a result of a default of a contract are known as...? Liquidated Damages Consideration Novation Punitive Damages sales contract - A contract by which a buyer and seller agree to the terms of a sale is known as a...? Listing contract Sales contract Bill of Sale contract Listing agreement equitable titile - An interest in real estate such that a court will take notice and protect the owner's rights is known as...? Legal Title Secured Title Protected Title Equitable Title earnest money deposit - A down payment made by a purchaser of real estate as evidence of good faith is known as...? Earnest money deposit Escrow money Interest payment Binding deposit conversion - The unlawful appropriation of another's property or earnest money deposit is known as...? Commingling Conversion Freehold Estate Land Estate All of the above fee simple estate - Absolute ownership of real property is considered this type of estate...? Leasehold estate Land Estate Fee simple estate Estate in reversion fee simple absolute - An inheritable estate in land providing the greatest interest of any form of title is known as a/an...? Leasehold estate Estate in Remainder Fee simple absolute Fee simple determinable life estate - A freehold estate created for the duration of the life, or lives, of certain named persons is known as a...? Life estate Leasehold estate Fee simple estate Land estate homestead - A legal life estate in land that is owned and occupied as a family home is known as a...? Easement Reversionary interest Homestead Fee simple determinable 10 acres - In Texas, what is the limitation on homesteads in urban areas...? 10 acres 15 acres 50 acres 100 acres 200 acres - In Texas, what is the limitation on homesteads of a family in rural areas...? 10 acres 50 acres 100 acres 200 acres encumbrance - A claim, charge, or liability that attaches to, and is binding on real estate is known as a...? Prescription Rescission Encumbrance Novation restriction - A limitation on the use of real property is known as a...? Restriction Prescription Rescission Novation lien - A claim against a property that provides security for the repayment of a debt or an obligation of the property owner is known as a/an...? Easement Grant Prescription Lien easement by necessity - This type of easement exists when a landowner has no access to roads and is landlocked...? Easement by necessity Easement appurtenance Easement in gross Easement by prescription deed - Restrictive covenants are typically found in which of the following documents...? Mortgage Plot map Deed All of the above general lien - A lien on all the property of a debtor is referred to as a...? Specific lien General lien Universal lien Special lien specific lien - A lien that attaches to one specific property only is referred to as a...? General lien Universal lien Specific lien Special lien priority of liens - The order in which liens are given legal precedence or preference is known as...? Assessment of liens Lien ladder Rank of liens Priority of liens voluntary lien - Any lien placed on property with consent of, or as a result of, the voluntary act of the owner is referred to as a/an...? Voluntary lien Involuntary lien Subordinate lien Owner lien VISE - Which of the following acronyms describes the various ways a lien can be created...? VISE CATTL PETE OLD CAR tax levy - A form of action taken to impose a tax is known as a...? Tax lien Tax proposal Tax levy Eminent domain tax rate - Tenancy in Common all of the above - Real property can be owned in which of the following forms...? Severalty Co-ownership In trust All of the above all of the above - Which of the following is an example of co-ownership...? Tenancy in common Joint tenancy Community property All of the above community property - Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship is known as...? Joint tenancy Tenancy in common Community property Severalty ownership all of the above - Each spouse in a community property has equal rights to which of the following...? Alienation Management Testamentary disposition All of the above beneficiary - One entitled to the benefit of a trust is referred to as the...? Devisee Beneficiary Trustor Primary owner living trust - An agreement where the trustee holds legal possession of a fund or assets that belong to another person, the beneficiary, and it is created while the person is alive is referred to as a/an...? Living partition Escheat Living escrow Living trust corporation - An entity established and treated by law as an individual or unit with rights and liabilities, or both, distinct and apart from those of the persons composing it is referred to as a...? Corporation Partnership LLC Limited Partnership General partnership - In this type of arrangement, partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations...? LLP Corporation General partnership LLC Right of survivorship - The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is known as...? Testamentary trust Right of survivorship Tenancy in common Living trust severalty ownership - Property owned by one person only is referred to as...? Tenancy in Common Severalty Ownership Joint Tenancy Community Property ownership is divided equally - How is ownership in a community property between a husband and wife divided...? Based on the credit score of each owner Based on the amount of down payment by each owner None of the above Ownership is divided equally among the owners foreclosure - Co-ownership in a property can be terminated by which of the following...? All of the above Foreclosure Purchase of a new property Disagreement among co-owners Limited Liability company - This business structure combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation...? Limited Partnership S-Corp Limited Liability Partnership Limited Liability Company community property - Property acquired by husband and/or wife during a marriage when not acquired as the separate property of either spouse is known as...? Joint tenancy Severalty ownership Community Property Tenancy in common all of the above - A joint tenancy is terminated when which of the following ceases to exist...? Title All of the above Possession Interest Tenancy in Common - An ownership of realty by two or more persons, each of whom has an undivided interest, without the "right of survivorship" is known as...? Joint Tenancy Severalty Ownership Tenancy in Common Community Property partition - A division of real or personal property or the proceeds therefrom among co-owners is known as...? Separation Termination Right of survivorship Partition exclusive agency agreement - This type of listing is given to only one broker who is entitled to the commission if the broker or any agent of the listing broker effects a sale but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or an agent of the listing broker...? Non-Exclusive Agreement Net Listing A percentage of the assessed value A percentage of the market value A percentage of the listing price A percentage of the investment value mediation - If a dispute between the seller and the agent cannot be resolved through negotiations, the dispute should be resolved using the following method...? Civil Action Litigation Arbitration Mediation all - Which of the following may appear on a survey...? Improvements Driveways Fences All of the above 1978 - Lead based paint can be found in buildings built prior to...? 1964 1978 1988 1991 seller disclosure - This document gets completed by the seller and lists the condition of various items and appliances in the house...? HUD-1 Form Seller Disclosure Notice Property Condition Disclosure Personal Property Notice property survey - The T-47 Residential Real Property Affidavit verifies that which of the following documents is up to date...? Property survey Seller Disclosure Notice Floor plans Site Map seller disclosure - Sarah is in the process of selling her house. What must Sarah complete, which states the condition of various items and appliances in the house...? Seller Disclosure Notice HUD-1 Form Property Condition Disclosure Personal Property Notice find a ready... - A broker is entitled to a commission after they...? All of the above Show the property to a prospective buyer Market the property Find a ready, willing, and able buyer client - A listing contract exists between the real estate broker and the...? Real estate salesperson Customer Client All of the above net listing - Which of the following listing contracts is discouraged throughout the State of Texas...? Exclusive Right to Sell Agreement Exclusive Agency Agreement Open Listing Net Listing Texas Association of Realtors - Which entity produces the most commonly used Exclusive Right to Sell agreement in Texas...? National Association of Realtors Real Estate Commission Texas Association of Realtors Texas Bar Association net listing - This type of listing provides that the agent may retain as compensation for the agent's services all sums received over and above a net price to the owner...? Open Listing Exclusive Agency Agreement Exclusive Right to Sell Agreement Net Listing special provisions - If an additional contract item does not belong in the contract Addendum, it will most likely get listed in the...? Contract bulletin Contract notice form Special Provisions HUD-1 form exclusive right to sell - This type of contract gives the broker the greatest chance at receiving a commission...? Exclusive Agency Agreement Open Listing Contract Exclusive Right to Sell Agreement Net Listing Contract negotiable - A broker's compensation is...? Variable Fixed Negotiable Controlled