Chapter 13 Quiz

Question 1

In Arizona a listing broker must be able to prove employment by a seller in order to be assured of collecting a commission. Proof of employment is a(n)

A. Deposit receipt
B. Escrow agreement
C. Listing contract
D. Purchase contract

Answer 1

C. Listing contract

Question 2

A listing agreement is a mutual agreement between broker and a principal and is considered a(n)

A. Contract of Sale
B. Agreement of Sale
C. Purchase Contract
D. Authorization to Sell

Answer 2

D. Authorization to Sell

Question 3

A listing agreement provides for the payment of a commission to the broker if the owner sells the property without the broker’s help. This type of listing agreement is called a(n)

A. Net Listing
B. Exclusive Agency Listing
C. Exclusive Right-to-Sell Listing
D. Open Listing

Answer 3

C. Exclusive Right-to-Sell Listing

Question 4

A property owner and broker agree to a listing that provides for the owner to receive a specified amount from the sale and the broker to receive anything above that amount. This type of listing is called a(n)

A. Net Listing
B. Exclusive Agency Listing
C. Exclusive Right-to-Sell Listing
D. Open Listing

Answer 4

A. Net Listing

Question 5

What is NOT allowed in a valid listing agreement?

A. Signature of the principal
B. Material terms
C. Provisions for automatic renewal
D. Inception and expiration dates

Answer 5

C. Provisions for automatic renewal

Question 6

Which contract addresses the payment of a retainer?

A. Listing Agreement
B. Purchase Contract
C. Counteroffer
D. Addendum

Answer 6

A. Listing Agreement

Question 7

The commission amount is by agreement between the seller and the broker; this is according to

A. Fair Housing Act
B. Sherman Antitrust Act
C. Statute of Frauds
D. Statute of Limitations

Answer 7

B. Sherman Antitrust Act

Question 8

A competitive market analysis is performed by reviewing

A. Recently sold properties only
B. Similar properties
C. Recently sold properties and other properties currently on the market
D. The appraiser’s notes

Answer 8

C. Recently sold properties and other properties currently on the market

Question 9

Which of the following is NOT a way that a listing agreement can be terminated?

A. Revocation
B. Renunciation
C. Destruction of property
D. Insanity, death or bankruptcy of the agent

Answer 9

D. Insanity, death or bankruptcy of the agent

Question 10

Brokers are required to keep copies of completed contracts for a period of

A. 1 year
B. 3 years
C. 5 years
D. 10 years

Answer 10

C. 5 years

Question 11

Brokers are required to keep copies of rejected offers for a period of

A. 1 year
B. 3 years
C. 5 years
D. 10 years

Answer 11

A. 1 year

Question 12

A salesperson who prepares a written listing agreement with a seller is assisting in the creation of a contractual relationship between the

A. Salesperson and the listing broker
B. Salesperson’s broker and the seller
C. Salesperson and the buyer
D. Salesperson and the seller

Answer 12

B. Salesperson’s broker and the seller

Question 13

In order to collect a commission under an exclusive right-to-sell listing, it is NOT necessary for a broker to prove which of the following?

A. The listing was signed by the seller
B. The listing was valid
C. The broker was licensed at the time
D. The broker was the procuring cause

Answer 13

D. The broker was the procuring cause

Question 14

In an exclusive right-to-sell listing with a 120-day expiration period, the owner sells the property to one of the broker’s previous referrals on day 121. What commission is the broker entitled to receive if the property was relisted?

A. None
B. 50%
C. 75%
D. 100%

Answer 14

A. None

Question 15

Bob, the seller, signs an exclusive right-to-sell agreement with Bill, then signs exclusive agency agreements with Rick and Don, trying to get the most exposure for his house. If Don sells the house, who gets paid a commission?

A. Don
B. Rick and Don
C. Bill and Don
D. Don, Rick, and Bill

Answer 15

D. Don, Rick, and Bill

Question 16

The type of listing in which the broker and seller are LEAST LIKELY to know the amount of money that will be received as commission for the sale of the property is a(n)

A. Open Listing
B. Exclusive Right-to-Sell Listing
C. Exclusive Agency Listing
D. Net Listing

Answer 16

D. Net Listing

Question 17

The listing contract is an agreement between a broker and seller in which the broker is hired to

A. Find a ready, willing and able buyer
B. Become a universal agent for the seller
C. Exercise power of attorney on behalf of the seller
D. Hold open houses

Answer 17

A. Find a ready, willing, and able buyer

Question 18

Which is true regarding the printed words in a standard form listing contract?

A. The parties may not cross out any of the printed words
B. Handwritten words take precedence over printed words if there is an inconsistency
C. Nothing may be added to the printed form except in spaces provided
D. If handwritten items are added, signatures must be acknowledged

Answer 18

B. Handwritten words take precedence over printed words if there is an inconsistency

Question 19

A salesperson receives an offer on a listing that much lower than the listing price. What should the salesperson do?

A. Ignore the offer
B. Present the offer
C. Counter the offer for the seller
D. Reject the offer for the seller

Answer 19

B. Present the offer

Question 20

The language in the listing agreement obtains preliminary permission for the broker to represent which of the following parties in a transaction?

A. Seller only
B. Buyer only
C. Buyer and seller
D. Seller as an attorney-in-fact

Answer 20

C. Buyer and seller