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Unit 6: Brokerage Agreements > Assessment > Flashcards

Assessment Flashcards

1
Q

An agency agreement may end upon mutual agreement between…

A

All parties

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2
Q

If a house burns to the ground before the broker can find a buyer, the listing agreement is…

A

Automatically terminated

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3
Q

Agency agreement where seller retains the right to sell the property without owing a commission to the broker

A

Exclusive agency listing agreement

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4
Q

Agency agreement where sponsoring brokers are entitled to payment regardless of whether they locate the property

A

Exclusive buyer agency agreement

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5
Q

A marketing organization whose broker members make their listings available for showing and sale through all the other member brokers

A

Multiple Listing Service (MLS)

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6
Q

Agency agreement where sponsoring brokers entitled to payment only if they locate the property the buyer ultimately purchases

A

Exclusive agency buyer agency agreement

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7
Q

Agency agreement where if the property is sold, the seller must pay the sponsoring broker a commission no matter who sold the property

A

Exclusive right-to-sell listing

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8
Q

Clause that states property owner owes the listing broker a commission if the owner transfers the property title to someone who saw the property while it was listed with the sponsoring broker

A

Broker protection clause

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9
Q

Employment contracts for the personal professional services of the broker

A

Brokerage agreements

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10
Q

In a(n) ___ listing, one authorized broker receives a commission regardless of who sells the property.

A

Exclusive Right-to-Sell

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11
Q

A ___ provision specifies that the seller will receive a specific amount of money from any sale, with the excess going to the listing broker as commission.

A

Net listing

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12
Q

A broker must not withhold ___ concerning a property of which he has knowledge from any purchaser.

A

material facts

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13
Q

The ___ must determine the listing price from a property.

A

seller

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14
Q

A(n) ___ buyer agency agreement provides the most protection to the broker.

A

Exclusive

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15
Q

A(n) ___ buyer agency agreement permits the buyer to enter into similar agreements with any number of brokers.

A

open

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16
Q

With a(n) ___ buyer agency agreement, the buyer is only obligated to compensate the broker who locates the property that is ultimately purchased.

A

open

17
Q

A listing taken by a real estate licensee is an agreement between the seller and the…

A

sponsoring broker

18
Q

What is a similarity between an exclusive agency listing and an exclusive right to sell listing?

A

Both types of listings give responsibility of representing the seller to one broker only

19
Q

A listing agreement expires on May 2. The seller’s house is destroyed by a fire on April 25. Therefore the agreement may be ___ due to the destruction of the property.

A

canceled

20
Q

The seller has listed his property under an exclusive agency listing with the broker. If the seller sells the property himself during the term of the listing to someone introduced to the property by the seller, he will owe the broker…

A

No commission

21
Q

A broker sold a residence for $235,000 and received $12,925 as her commission in accordance with the terms of the listing. What was her commission rate?

A

5.5%

22
Q

Under a listing agreement, the broker is entitled to sell the property for any price as long as the seller receives $185,000. The broker may keep any amount over what the seller specifies. This type of listing is called…

A

A net listing

23
Q

What is a similarity between an open listing and an exclusive agency listing?

A

Under both, seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure

24
Q

The final decision on a property’s listed value should be determined by the ___.

A

Seller

25
Q

The final decision on a property’s listed value should be determined by the seller based on…

A

The broker’s CMAs and advice

26
Q

A listing contract is a(n) ___ contract for the professional services of the broker.

A

employment

27
Q

A real estate company received a 6.5% commission on the sale of a property. The listing broker in the company received 40% of the commission, which was $9,750. What was the selling price of the property?

A

$375,000

28
Q

A seller listed her residence with a broker. The broker brought an offer at full price and satisfying terms of the listing from buyers who were ready, willing, and able to pay cash for the property. However, the seller changed her mind and rejected the buyer’s offer. Is the broker entitled to a commission from the seller?

A

Yes

29
Q

A comparative market analysis can help the seller ___ their property.

A

price

30
Q

A property was listed with a broker who belonged to a MLS and was sold by another member broker for $153,500. The total commission was 6% of the sales price. The selling broker received 60% of the commission, and the listing broker kept the balance. What was the listing broker’s commission?

A

$3,684

31
Q

A seller signs a listing agreement with a broker to sell his home. The agreement states that the broker will receive a 5.5% commission. The home sells for $387,000. What is the net amount that the seller will receive from the sale?

A

$365,715

32
Q

A real estate broker and a seller enter into a listing agreement that contains the following language: “Seller will receive $100,000 from the sale of the subject property. Any amount greater than $100,000 will constitute Broker’s sole and complete compensation. In Illinois, the broker may offer the property for any price above $100,000, however the agreement may be ___.

A

unethical

33
Q

A broker enters into an agreement with a client. The agreement states “In return for the compensation agreed upon, Broker will assist Client in locating and purchasing a suitable property. Broker will receive the agreed compensation regardless of whether Broker, Client, or some other party locates the property ultimately purchased by Client.” What kind of agreement is this?

A

Exclusive Buyer Agency Agreement

34
Q

Illinois licensees may submit a listing to a(n)…

A

Multiple listing service

35
Q

Under what conditions is a disclosure of contemporaneous offers required?

A

When a buyer’s agent is acting as a designated agent for more than one buyer interested in buying the same property

36
Q

Illinois requires listing agreements to contain what in regards to termination of the contract?

A

either an automatic expiration date or a statement of the client’s right to terminate

37
Q

In Illinois, what brokerage agreements must be in writing?

A

Exclusive brokerage agreements

38
Q

In Illinois, an exclusive listing agreement may contain blank spaces to be filled in later. True or false?

A

False

39
Q

In Illinois a(n) ___ agreement must be in writing and include the amount of brokerage compensation, and the listing price of the property

A

Exclusive listing agreement

Unit 6: Brokerage Agreements (2 decks)

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