Chapter 10 Review: Listing

Question 1

With a short sale, the lender agrees to accept _____ ____ _____ __ ______ on the property.

Answer 1

less than what is owed

Question 2

The purpose of a deed is to

Answer 2

transfer title

Question 3

A ___ listing is illegal; it stipulates a net price to the owner and the excess over the net price becomes the licensee’s commission

Answer 3

net

Question 4

A(n) ____ listing requires the seller to pay the commission to the first real estate brokerage agency to bring a buyer ready, willing and able to purchase the property

Answer 4

open

Question 5

A seller lists with only one company yet retains the right to sell the property on his own without owing a commission; this is an example of an ________ _______ listing

Answer 5

exclusive agency

Question 6

Real estate brokerage agencies prefer ________-_____-__-____ listing agreements because regardless of where the buyer comes from, the agency will be paid its fee

Answer 6

exclusive-right-to-sell

Question 7

Listing agreements cannot automatically renew; they must have a specific ending

Answer 7

date and time

Question 8

When does a listing agreement automatically terminate?

Answer 8

Death of seller
Condemnation or destruction of property
Involuntary sale (foreclosure)
Bankruptcy of either party
Abandonment of the agency by the broker

Question 9

When a buyer or seller signs any document, the licensee must leave a _______ ______ with them

Answer 9

signed copy

Question 10

The act that prohibits brokers or agency owners to agree to fix their fees is the

Answer 10

Sherman Antitrust Act

Question 11

The act that prohibits collusion, price fixing, market allocation or restriction is the

Answer 11

Clayton Antitrust Act

Question 12

A group boycott occurs when two or more brokers conspire to _______ to _______ with a third agency

Answer 12

refuse to cooperate

Question 13

An illegal policy that requires consumers to use the loan origination services also owned by the real estate brokerage agency is called a

Answer 13

tie-in agreement

Question 14

A licensee may release confidential information about a client if:

Answer 14

The seller grants written consent
It is required by law
The information is made public by the seller
It is necessary to defend the licensee against an accusation of wrong-doing

Question 15

The ___________ ________ is when the agent’s authority to represent the principal comes to an end.

Answer 15

termination date

Question 16

The two fiduciary duties that survive the termination of the listing agreement are

Answer 16

accounting and confidentiality

Question 17

The ________ clause in a listing agreement states that the real estate brokerage agency may be entitled to the commission if the property is sold to a buyer introduced to the property during the term of the listing

Answer 17

carryover

aka: broker protection clause

Question 18

The carryover clause is no longer valid if the seller subsequently

Answer 18

lists the property with another broker

Question 19

An agreement between the broker and the seller to not actively market the property to the public is called

Answer 19

pocket listing