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California Real Estate - Practice > Chapter 6 > Flashcards

Chapter 6 Flashcards

1
Q

A contract in which each party promises to do something is known as a….?

A. Bilateral contract
B. Implied contact
C. Unilateral Contract
D. Open Contract

A

A. Bilateral Contract

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2
Q

When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a….?

A. Bilateral contract
B. Implied Contract
C. Unilateral Contract
D. Open Contract

A

C. Unilateral Contract

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3
Q

A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right is known as a….?

A. Net Listing
B. Exclusive contract
C. Option
D. Open listing

A

C. Option

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4
Q

Which of the following is an exclusive listing given to only one broker who is entitled to commission if the broker effects a sale, but imposes no commission obligation on the owner if the owner finds a buyer themselves….?

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

A

B. Exclusive Agency Agreement

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5
Q

An open listing offers the least amount of protection to the broker….?

A. True
B. False

A

A. True

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6
Q

Which of the following is an example of a unilateral contract ….?

A. Net listing
B. Exclusive agency agreement
C. Exclusive right to sell agreement
D. Open listing

A

D. Open listing

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7
Q

Which of the following contracts are used between sellers and brokers…?

A Net listing
B Exclusive agency agreement
C Exclusive right to sell agreement
D All of the above

A

D. All of the above

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8
Q

Net listings are illegal in California…?
A T (True)
B. F (False)

A

B. False

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9
Q

Which of the following listing contracts is given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract…?

A Exclusive Agency Agreement
B Net Listing
C Exclusive Authorization and Right to Sell Contract
D Open Listing

A

C. Exclusive Authorization and Right to Sell Contract

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10
Q

Which of the following listing contracts offer the most protection to a broker…?

A Exclusive Agency Agreement
B Net Listing
C Exclusive Authorization and Right to Sell contract
D Open Listing

A

C. Exclusive Authorization and Right to Sell Contract

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11
Q

A seller’s attempt to sell their property whereby the liens are greater than the value of the property is known as a…?

A Short sale
B Foreclosure
C Lis pendens
D Option

A

A. Short Sale

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12
Q

To be enforceable, a listing agreement must be in-writing…?

A T (True)
B F (False)
A

A. True

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13
Q

Which of the following is a contract in which a property owner employs a real estate broker to market the property described in the contract…?

A Implied contract
B Listing contract
C Independent contractor agreement
D Open contract

A

B Listing Contract

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14
Q

An Exclusive Authorization and Right to Sell contract must have a termination date…?

A T (True)
B F (False)
A

A. True

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15
Q

A listing contract must include which of the following…?

A A start date
B A broker commission
C A termination date
D All of the above

A

D. All of the above

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16
Q

The agency contract must be signed before a broker and seller enter into a listing contract…?
A. T (True)
B. F (False)

A

A. True

17
Q

In California, real estate commissions are always negotiable…?
A. T (True)
B. F (False)

A

A. True

18
Q 
Who is responsible for completing the AVID form…?
A. The seller
B. The buyer
C. The seller's agent
D. The buyer's agent
A

C. The Seller’s Agent

19
Q

A short sale does not harm a homeowner’s credit score…?
A. T (True)
B. F (False)

A

B. False

20
Q

The seller is responsible for paying the broker’s commission in a short sale…?
A. T (True)
B. F (False)

A

B. False

21
Q

Real estate agents typically earn higher commissions for short sales…?
A. T (True)
B. F (False)

A

A. True

22
Q 
A Buyer Broker Agreement is also known as a…?
A. Net Listing
B. Option Agreement
C. Buyer Listing Agreement
D. Exclusive Buyer Agreement
A

C. Buyer Listing Agreement

23
Q 
This is a listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property…?
A. Net listing
B. Open listing
C. Exclusive Right to Sell Agreement
D. Exclusive listing
A

B. Open Listing

24
Q 
A listing agreement is a contract between the seller and the…?
A. Real estate agent
B. Customer
C. Real estate broker
D  Client
A

C. Real Estate Broker

25
Q

A listing contract is an example of a bilateral contract…?
A. T (True)
B. F (False)

A

A. True

26
Q 
An agency relationship is created with the signing of the…?
A. Purchase contract
B. Listing contract
C. Customer agreement
D. Closing statement
A

B. Listing Contract

27
Q

An open listing is an example of an exclusive agreement…?
A. T (True)
B. F (False)

A

B. False

28
Q 
Which of the following refers to a listing which provides that the agent may retain as compensation for agent’s services all sums received over and above a net price to the owner.
A. Net Listing
B. Exclusive Agency Agreement
C. Exclusive Right to Sell Agreement
D. Open Listing
A

A. Net Listing

29
Q

What is a Bilateral Contract?

A

A contract in which each party promised to do something.

30
Q

What is a Unilateral Contract?

A

It’s when one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it; the contract is formed only if the other party does perform the requested act.

31
Q

What is a listing contract?

A

A contract in which a property owner employs a real estate broker to market the property described int he contract.

32
Q

What is a Non-Exclusive Listing (Open Listing)

A

a listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property.

33
Q

What is a Net Listing?

A

A listing which provides that the agent may retain as compensation for agent’s services all sums received over and above a net price to the owner.

34
Q

What is an “Option”?

A

A right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right.

35
Q

What is an “Exclusive Agency Agreement?”

A

A listing given to only one broker (exclusive) who is entitled to the commission if the broker or any agent of the listing broker effects a sale but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or an agent of the listing broker.

36
Q

What is an Exclusive Agreement (Exclusive Right to Sell Listing Agreement)?

A

A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract.

37
Q

What is a short sale?

A

A seller’s attempt to sell the real estate whereby the liens are greater than the value of the property.

California Real Estate - Practice (15 decks)

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