Chapter 13 - Brokerage Operations & Agreements

Question 1

Name the four types of listing agreements.

Answer 1

1. Exlusive right to sell.
2. Exclusive agency.
3. Open listing
4. Net listing

Question 2

Exclusive right to sell (listing agreements)

Answer 2

Most common. Seller lists property with only one sponsoring broker. If any broker (or the owner) sells the property, the listing broker gets commission.

Question 3

Exclusive agency (listing agreements)

Answer 3

Seller lists property with only one sponsoring broker. Listing broker gets commission if property is sold by any broker, BUT NOT if seller sells the property on their own.

Question 4

Open agency (listing agreements)

Answer 4

Seller can list their property with as many sponsoring brokers as they’d like. Seller pays commision to broker who is the “procuring cause of sale”. No commisison of seller finds a buyer.

Question 5

Net listing (listing agreements)

Answer 5

Broker takes anything above an agreed-upon value as comission (not very common).

Question 6

In the event of a business name change, how long does a brokerage have to notify IDFPR?

Answer 6

24 hours

Question 7

In event of a managing broker loss…

Answer 7

IDFPR most be contacted within 15 days to request an extension of up to 60 days.

Question 8

Price fixing (aka collusion)

Answer 8

When real estate companies attempt to set standard prices, instead of letting the open market establish the prices.

Question 9

Tie-in agreements

Answer 9

Use of blackmail, tying purchase of one thing to another.

Question 10

How long after a sale does a licensee have to phone a consumer?

Answer 10

18 months (under law)