Agency Law II

Question 1

When was the Real Estate Settlement Procedures Act?

Answer 1

1974

Question 2

What does the Real Estate Settlements Act of 1974 prohibit?

Answer 2

Prohibits a licensee from accepting any compensation from a service company involved in a transaction without prior written consent of the client

Question 3

What are the 4 types of listing agreements?

Answer 3

• exclusive right to sell
• exclusive agency
• open listing
• net listing

Question 4

Exclusive Right to Sell

Answer 4

grants broker exclusive right to represent seller in the sale of seller’s property.

• provides broker will be compensated no matter WHO finds the buyer
• gives brokers the greatest opportunity to earn commission

Question 5

Exclusive Agency

Answer 5

gives specific agency the right to sell.

• Broker is compensated only if someone other than the seller finds the buyer.
• Broker only gets commission if they are responsible for the sale of property