Ch. 6 - Agency Disclosures and Agreements

Question 1

The most widely used agreement is the _______ agreement

Answer 1

Exclusive right to sell listing

Question 2

Under this arrangement, the broker has the exclusive right to market the property for a specified period of time. If the property sells while the broker has the listing, the seller must pay the agreed upon commission, regardless of who actually procured the buyer (who was the procuring cause). This means that even if the seller himself finds the buyer with no help from the broker, the seller still owes the broker the commission.

Answer 2

the exclusive right to sell listing agreement.

Question 3

_____ agency listing agreement gives a broker the right to market and sell a property for a specified time period, while the owner retains the right to find a buyer and sell the property without owing the broker a commission.

Answer 3

An exclusive agency listing agreement

Question 4

This type of listing gives the seller or buyer the right to engage any number of brokers as agents. With an open listing, all contracted brokers can market the property or search for property at the same time. But only the one broker who brings the ready, willing and able buyer to the seller or who finds the right property for a buyer will receive the commission.

Answer 4

An open listing agreement

Question 5

In a _______ listing, an owner sets a minimum amount that he wants to receive from the sale of the property and lets the broker have as commission any amount above the set minimum. These listings are illegal in NYS.

Answer 5

net listing

Question 6

In an exclusive right to rent agreement, under what conditions will the broker receive a commission?

Answer 6

at either the execution of the lease or at the time of occupancy

Question 7

This disclosure explains what choices consumers have with regard to representation by a licensee.

Answer 7

agency disclosure form

Question 8

When are licensees required to provide the agency disclosure form with a potential buyer or seller?

Answer 8

at the first substantive contact

Question 9

According to Article 14 of the Real Property Law, every seller of residential real estate property must complete and sign this statement and see that it is delivered to a buyer or the buyer’s agent prior to the acceptance of a purchase offer.

Answer 9

a property disclosure statement

Question 10

If the seller fails to provide the property disclosure form to the buyer before the buyer signs the contract, what happens?

Answer 10

the buyer will receive a $500 credit against the purchase price of the property at closing.