Chapter 12 Remuneration Flashcards
If there is no listing contract in existence but the agent effects a sale of the principal’s property at the request of the principal, the courts will:
(1) not imply an undertaking to pay the agent remuneration.
(2) imply a promise to pay the agent remuneration.
(3) allow the agent to collect only his/her out of pocket expenses.
(4) hold the agent liable for any default of the buyer.
2
Which of the following would be relevant in determining whether an individual was an employee or an agent?
(1) the contract which exists between the alleged agent and the alleged principal
(2) the degree of control the alleged principal has over the alleged agent
(3) the method of remuneration of the alleged agent
(4) all of the above
4
Elly, a licensed real estate representative, entered into a written exclusive listing contract with Laura to list Laura’s house for $300,800. Shortly after entering into this agreement, Ellyls licence expired. Unaware of the expiration of her licence, Elly proceeded to hold three open houses and numerous other showings of the house, eventually finding a buyer who made an offer of $300,800. Laura accepted the offer, but when she learned about Elly’s licence expiry, she refused to pay any commission to Elly. Which of the following statements is/are true?
A. The Real Estate Services Act permits Elly to sue Laura for commission in this situation whether or not the listing contract specified the amount Elly was to receive.
B. A lawsuit to recover damages against Laura for breach of the listing contract will probably succeed even if Laura later refuses to complete the sale of her house.
C. A court will not award Elly any form of remuneration in this situation.
D. Based on the limited facts in this situation, it appears that the listing contract complies with the statutory requirements of the Real Estate Services Act.
(1) Only C and D are true.
(2) Only A, B and D are true.
(3) Only D is true.
(4) Only A and B are true.
1
which of the following is NOT a duty that is owed by a principle to their agent
- the duty to indemnify the agent
- the duty to remunerate the agent
- the duty to comply with the agency agreement
- the duty to avoid conficts of interest with the agent
4
the remuneration figures contained in the disclosure of expected remuneration (payment) form:
- can be disclosed as a percent or a dollar amount
- must be expressed as a dollar amount if the remuneration is to be received as money
- must be expressed in the same way that they are expressed in the listing contract
- can be expressed in anyway that is most transparent to the seller
2
gertrude is the listing licensee for anika in the sale of her property. gertrude receives an offer from a buyer for anikas property. when is gertrude expected to provide a disclosure of expected remuneration (payment) from anika?
- if anika decides to make a counter offer to the buyer
- before the deadline of acceptance of the offer
- only when anika decides to accept the offer
- when gertrude presents the offer to anika
4
Elly, a licensed real estate representative, entered into a written exclusive listing contract with Laura to list Laura’s house for $300,800. Shortly after entering into this agreement, Ellyls licence expired. Unaware of the expiration of her licence, Elly proceeded to hold three open houses and numerous other showings of the house, eventually finding a buyer who made an offer of $300,800. Laura accepted the offer, but when she learned about Elly’s licence expiry, she refused to pay any commission to Elly. Which of the following statements is/are true?
- A court will not award Elly any form of remuneration in this situation.
- The Real Estate Services Act permits Elly to sue Laura for commission in this situation whether or not the listing contract specified the amount Elly was to receive.
- A lawsuit to recover damages against Laura for breach of the listing contract will probably succeed even if Laura later refuses to complete the sale of her house
- Based on the limited facts in this situation, it appears that the listing contract complies with the statutory requirements of the Real Estate Services Act.
1
