Chapter 11 Listings Flashcards
Which of the following statements concerning listing agreements are TRUE?
A. A listing agreement is a contract between the seller and the brokerage, the terms of which can be relied on by the buyer.
B. For the brokerage to become entitled to commission, the offer to purchase presented by the brokerage must be substantially in accord with the terms of the listing.
C. All owners listed on title must sign the listing contract.
D. A listing brokerage will not be entitled to a commission if it does not have a listing agreement with the seller prior to listing the property for sale.
(1) A and C only
(2) A, B and D only
(3) B and C only
(4) C only
4
Clive and Joyce signed an exclusive listing agreement with Lone Dove Realty Ltd. (“Dove”) for the sale of their jointly owned land. The agreement stipulated a price of $450,000 “all cash”. Graham, a trading services licensee employed by Dove, presented the sellers with an offer from a buyer for $450,000 “subject to seller accepting take-back mortgage of $30,000.” The sellers refused this offer and the listing has now expired. Dove feels that it is entitled to a commission notwithstanding that the offer was rejected.
Which of the following statements is TRUE?
(1) As a prerequisite to its claim for commission, Dove must prove that it was duly licensed under the Real Estate Services Act at the time the alleged cause of action arose.
(2) In the event that Dove was not licensed under the Real Estate Services Act, no commission can be recovered by Dove but the licensee, Graham, can recover commission as an independent licensee.
(3) No commission is payable by the sellers because the event stipulated in the listing agreement which would give rise to commission has not occurred.
(4) Both (1) and (3) are true.
4
which of the following is/are TRUE regarding listing contracts
- the purchaser can rely on the terms in the listing contract
- the listing contract must be signed by all persons who have an ownership interest in the property being sold
- if the licensee includes the terms “approximately” or “more less” when describing the property, the licensee does not have to perform a title search
- all of the above
2
what is the meaning of designated agency in the context of the standard form listing agreement?
- the licensee cannon act for both the buyer and the seller
- the licensee can act for both the buyer and seller
- the brokerage and its agents have been designated to act as a team for the buyer
- the brokerage appoints one or more specific licensees to act as the sellers sole agent
4
In interpreting a listing contract, the courts will:
(1) construe any ambiguous terms in favour of the party who wrote them.
(2) ascertain the event upon which commission is payable.
(3) determine whether the contract has been signed by all persons who have an ownership interest in the subject property.
(4) do all of the above.
2
When completing a listing contract, a licensee should:
(1) rely on all of the information provided by the seller.
(2) only rely on the seller’s information if the seller says he/she has checked it.
(3) independently check information with the appropriate authority where possible.
(4) use the seller’s information, but advise all buyers that it is unreliabl
3
