Chapter 3 True/False

Question 1

A listing contract included a washer and a dryer, but the buyer’s offer does not mention a washer and a dryer. The purchase price includes the washer and dryer.

True
False

Answer 1

False: The offer to purchase controls which items a seller must include in the purchase price. The listing contract is what a seller wants but does not ultimately control which property is included in the purchase price.

Question 2

A valid agency agreement must contain the legal description of a property.

True
False

Answer 2

False: A valid agency agreement does not need to contain a legal description to identify the property. Parties can use a legal description if the street address is not sufficient to identify the property.

Question 3

For a buyer’s firm to receive money from the seller, the buyer must consent.

True
False

Answer 3

True: The buyer may request, as a condition of the offer to purchase, that the seller pay the buyer’s firm’s fee at closing with the buyer’s consent. The WB-36 Buyer Agency Agreement includes a provision authorizing the firm to seek compensation from the seller or the listing firm.

Question 4

A listing contract must be at least three months long.

True
False

Answer 4

False: A valid agency agreement must have a beginning an an end date but does not have to be for any specific period.

Question 5

A buyer’s firm may earn a commission if the buyer or any person acting on behalf of the buyer enters into an enforceable contract to acquire an interest in property covered by the buyer agency agreement during the term of the agreement.

True
False

Answer 5

True: If the buyer acquires an interest in a property covered under the terms of the agency agreement, the buyer’s firm earns a commission.

Question 6

A licensee listing a condominium where the condominium association has a right of first refusal should disclose that to a buyer in writing.

True
False

Answer 6

True: A right of first refusal is a material adverse fact that a licensee must disclose to a buyer before the buyer writes the offer to purchase.

Question 7

The state-approved residential listing contract is the exclusive right to sell.

True
False

Answer 7

True: The exclusive right to sell is the only type of listing contract approved by the state.