Chapter 12 - Listing Agreements Flashcards
13 questions
To be valid, a listing agreement
a. must be in writing.
b. may be oral or written.
c. must be an express agreement.
d. must be enforceable.
b. may be oral or written.
The type of listing that assures a broker of compensation for procuring a customer, regardless of the procuring party, is a(n)
a. exclusive right-to sell agreement.
b. exclusive agency agreement.
c. open listing.
d. net listing.
a. exclusive right-to sell agreement.
An owner agrees to pay a broker for procuring a tenant unless it is the owner who finds the tenant. This is an example of a(n)
a. exclusive right-to sell agreement.
b. exclusive agency agreement.
c. open listing.
d. net listing.
b. exclusive agency agreement.
A landlord promises to compensate a broker for procuring a tenant, provided the broker is the procuring cause. This is an example of a(n)
a. exclusive right-to sell agreement.
b. exclusive agency agreement.
c. open listing.
d. net listing.
c. open listing.
A property owner agrees to pay a broker a commission, provided the owner receives a minimum amount of proceeds from the sale at closing. This is an example of a(n)
a. exclusive right-to sell agreement.
b. exclusive agency agreement.
c. open listing.
d. net listing.
d. net listing.
The most significant difference between an owner representation agreement and a buyer representation agreement is
a. the client.
b. the commission amount.
c. agency law applications.
d. contract law applications.
a. the client.
A multiple listing authorization gives a broker what authority?
a. To list the owner’s property in a multiple listing service
b. To sell several properties for the owner at once
c. To sell or lease the property
d. To delegate the listing responsibilities to other agents
a. To list the owner’s property in a multiple listing service
A broker is hired to procure a customer for a client. In order to earn compensation, the agent must procure a customer who
a. has seen the property and reviewed all documents.
b. is ready, willing, and able to transact.
c. has completed an acceptable sale or lease contract.
d. will successfully complete the transaction at closing.
b. is ready, willing, and able to transact.
One of the most important actions an owner’s agent is authorized to perform under an exclusive listing agreement is
a. showing the property.
b. assisting the customer in evaluating the relative merits of other properties.
c. authorizing price adjustments in a timely manner.
d. executing the sale or lease agreement.
a. showing the property.
An agent’s performance of due diligence concerning a listing can best be described as
a. initiating the marketing plan on or before a deadline.
b. expending an amount of effort that is commensurate with the nature and size of the transaction.
c. ascertaining the facts about the client and the property at the onset of the listing period.
d. helping customers satisfy their needs to the extent they are entitled.
c. ascertaining the facts about the client and the property at the onset of the listing period.
The amount of a real estate broker’s commission is
a. established among competing brokers.
b. established through negotiation with clients.
c. established by the Board of Realtors.
d. established by state real estate license law.
b. established through negotiation with clients.
A client suddenly decides to revoke an exclusive right-to-sell listing midway through the listing term. The reason stated: the client did not like the agent. In this case,
a. the client is criminally liable for discrimination on the basis of the cause for cancellation.
b. the client may be liable for a commission and marketing expenses.
c. the agent can sue the client for specific performance, even if no customer had been located.
d. the agent has no recourse but to accept the revocation.
b. the client may be liable for a commission and marketing expenses.
A “protection period” clause in an exclusive listing provides that
a. the owner is protected from all liabilities arising from the agent’s actions performed within the agent’s scope of duties.
b. the agent has a claim to a commission if the owner sells or leases to a party within a certain time following the listing’s expiration.
c. agents are entitled to extend a listing agreement’s term if a transaction is imminent.
d. an owner is not liable for a commission if a prospective customer delays in completing an acceptable offer.
b. the agent has a claim to a commission if the owner sells or leases to a party within a certain time following the listing’s expiration
