Chapter 2: Types of Listing Agreements - INCOMPLETE

Question 1

What are the 3 different types of listing agreements?

Answer 1

1) Open listing
2) Exclusive agency listing
3) Exclusive right to sell listing

Question 2

Is an open listing exclusive or non-exclusive

Answer 2

non-exclusive

Question 3

T/F: The seller of an open listing can only have one agent

Answer 3

False

Question 4

In an open listing, who is the procuring cause of sale

Answer 4

Whichever agent finds the buyer

Question 5

If a seller of an open listing has more than one agent, who receives the commission?

Answer 5

Only the agent who is the procuring cause of sale receives the commission

Question 6

Procuring cause

Answer 6

the person primarily responsible for bringing about the purchase agreement between the parties

Question 7

The purchasing agent must find the buyer and ___ the sale

Answer 7

negotiate

Question 8

Open listings are ___ used

a) usually
b) rarely

Answer 8

b) rarely

Question 9

Exclusive agency listing

Answer 9

Seller pays agent a commission if anyone other than the seller finds a buyer

Question 10

T/F: In an exclusive agency listing, the seller owes the listing agent a commission if a buyer found the house by seeing a sign out front

Answer 10

True

Question 11

T/F: In an exclusive agency listing, the seller pays the listing agent a commission even if the seller finds the buyer

Answer 11

False

Question 12

In an exclusive agency listing, the seller still owes their listing agent the commission even if an agent from a different brokerage finds the buyer

Answer 12

True

Question 13

T/F: In an exclusive agency listing, if the seller finds the buyer without the help of any real estate agent, she doesn’t owe the listing agent a commission

Answer 13

True

Question 14

What is the major problem with exclusive agency listings?

Answer 14

The potential for a dispute between the seller’s broker and the seller over who procured the buyer

Question 15

What is a listing period?

Answer 15

the period of time residential property is listed for sale with a licensed real estate broker

Question 16

T/F: In an exclusive agency listing, the seller retains right to sell without obligation to pay commission

Answer 16

True

Question 17

Once the listing period of an exclusive agency listing agreement w/ a protection period clause ends, the owner is liable for the commission during the protection period if the property sells to a party that the broker procured UNLESS

Answer 17

the seller already listed the property with another broker

Question 18

Important difference from an open listing agreement and an exclusive agency listing agreement?

Answer 18

The exclusive agency listing agreement includes a clause stating that compensation will be paid if any agent procures a ready, willing, and able buyer whose offer is accepted by the seller

Question 19

T/F: In an exclusive agency agreement listing, if any real estate agent - you or another agent - finds a buyer for the property, the seller owes your broker the commission

Answer 19

True

Question 20

T/F: In exclusive agency agreement listings, if the seller finds the buyer, the seller does not need to compensate the broker

Answer 20

True

Question 21

What type of listing is most commonly used in residential sales?

Answer 21

The exclusive right to sell listing

Question 22

What type of listing assures a broker of compensation for procuring a customer, regardless of the procuring party

Answer 22

Exclusive right to sell listing

Question 23

In an exclusive right to sell listing, the seller has 1 agent

Answer 23

True

Question 24

T/F: During the term of an exclusive right to sell listing, the seller’s listing agent earns a commission regardless of who sells the property (the seller’s agent, another agent, or the seller)

Answer 24

True

Question 25

In an exclusive right to sell listing, if the seller finds the buyer, does the listing agent still get a commission?

Answer 25

Yes

Question 26

In an exclusive right to sell listing, if the seller finds the buyer, does the listing agent still get a commission?

Answer 26

Yes

Question 27

When does the listing period start?

Answer 27

On the date the residence is first listed for sale

Question 28

When does the listing period end (list all 3 possible scenarios)?

Answer 28

1) the date the sale of the residence is closed;
2) the date the residence is taken off the market; or
3) the date the listing contract with the real estate broker expires