Chapter 6: Brokerage Agreements

Question 1

There is one authorized broker. The broker receive the commission only if she is the procurring cause. The seller retains the right to sell without obligation.

Answer 1

Exclusive agency listing

Question 2

There are multiple brokers. Only the selling broker is entitled to commission. The seller retains the right to sell independently without obligation.

Answer 2

Open listing

Question 3

It’s the broker the right to purchase the listed property at some point in the future

Answer 3

Option listing

Question 4

The licensee must have a what of the seller to include the property and an MLS

Answer 4

Written consent

Question 5

Who determines the listing price for a property

Answer 5

The seller

Question 6

What is a comparative market analysis based on?

Answer 6

Recently closed properties

Properties currently on the market

Properties that did not sell

Question 7

The most probable price a property would bring in an arms length transaction under normal conditions on the open market

Answer 7

Market value

Question 8

Buyer is legally bound to compensate the broker whenever the buyer purchases the property of the type described in the contract

Answer 8

Exclusive buyer agency agreement

Question 9

Brokers are only entitled to payment if they locate the property the buyer ultimately purchases

Answer 9

Exclusive agency buyer agency agreement

Question 10

The buyer is obligated to compensate only the broker who locates the property the buyer ultimately purchases

Answer 10

Open buyer agency agreement

Question 11

Contracts to purchase or lease the same property

Answer 11

Contemporaneous offers

Question 12

A listing taken by the real estate licensee is an agreement between the seller and?

Answer 12

Sponsoring broker

Question 13

What is the similarity between an exclusive agency listing and an exclusive right to sell listing?

Answer 13

All types of listings give the responsibility of representing the seller to one broker only

Question 14

The listing agreement expires on March 2. What event would not terminate the listing?

Answer 14

On April 15, the seller tells the broker that he is dissatisfied with the brokers marketing effort.

Question 15

The seller has listed his property under an exclusive agency listing with the broker. If the seller sells the property himself during the term of the listing to someone introduced to the property by the seller, he will owe the broker?

Answer 15

No commission

Question 16

What is the similarity between an open listing and an exclusive agency listing?

Answer 16

Under both, the seller avoids paying the broker commission if the seller sells the property to someone the broker did not procure.

Question 17

What is true of the listing contract?

Answer 17

It obligates the seller to convey the property if the broker procures a ready, willing, and able buyer

Question 18

A salary listed her residence with the broker. The broker brought an offer at full price and terms of the listing from buyers who were ready, willing, and able to pay cash for the property. However, the seller changed her mind and rejected the buyers offer. In this situation the seller?

Answer 18

Owes the commission to the broker

Question 19

A comparative market analysis?

Answer 19

Can help the seller price the property.

Question 20

A broker enters into an agreement with the client. The agreement states, and return for the condensation agreed-upon, broker will assist client in locating in purchasing a suitable property. Broker will receive the agreed compensation regardless of whether broker, client, or some other party locates the property ultimately purchased by the client. What kind of agreement is this?

Answer 20

Exclusive buyer agency agreement

Question 21

One broker receives the commission regardless of who sells the property

Answer 21

Exclusive right to sell listing

Question 22

A listing agreement may be terminated for?

Answer 22

Changing the listing price

Question 23

By signing a listing agreement with a seller,, the managing real estate broker has become?

Answer 23

An agent of the seller

Question 24

The provision in a listing agreement that gives the broker authority to distribute the listing information to other brokers is?

Answer 24

A MLS clause

Question 25

A broker took a listing on a property and shortly thereafter discovered that the seller/client has been previously declared incompetent by the court. The listing agreement is now?

Answer 25

Still valid

Question 26

The type of listing agreement that provides for the payment of the commission to the listing broker even though the owner makes the sale without the aid of the broker is called?

Answer 26

Exclusive right to sell listing

Question 27

A property owner list his property for sale with the broker. During the negotiations, the owner told the broker that the owner wanted $238,000 for the property, and anything above that amount the broker to keep us his commission. The listing within this type of provisions is known as?

Answer 27

Net listing

Question 28

What listing agreement can the owner of the listed property sell the property on his or her own without having to pay the listing broker a commission?

Answer 28

Open and exclusive agency listing

Question 29

A property owner signed a 90-day listing agreement with a broker. The owner was killed in an accident before the listing expire. The listing is now?

Answer 29

Terminated automatically upon the death of the principal

Question 30

A listing agreement in which the brokers commission is contingent on the broker being able to produce a buyer before the property is sold by the owner or another broker is called?

Answer 30

An open listing

Question 31

A broker who represents the seller under an exclusive listing received two offers for the property at the same time, one from one of the sales people and one from a sales person of the cooperating broker. What should the broker do?

Answer 31

Submit both offers at the same time

Question 32

A managing broker listed house for sale under an exclusive right to sell agreement. One of the managing brokers license these obtained an offer to purchase the property along with the certified check for 5% of the purchase price as earnest money. The offer was excepted. What should the managing broker do with the earnest money check?

Answer 32

Put it in the brokerage account

Question 33

What are three typical provisions of a listing agreement?

Answer 33

Price the seller is asking for the property

Commission rate to be paid to the listing broker

Responsibilities of the broker

Question 34

The type of listing agreement that provides the least protection for the listing broker is?

Answer 34

Open listing

Question 35

A seller refused to pay a commission to the broker even though there was a valid the scene agreement and the broker procured a buyer for the property. What can the broker do?

Answer 35

Sue the seller in court for the commission

Question 36

Under an exclusive agency listing, the listing broker would not be entitled to a commission if?

Answer 36

The seller exchanges the property with a neighbor across the street who has her property listed with another broker

Question 37

A listing agreement can be terminated for?

Answer 37

Mutual agreement

Operation of law

Impossibility of performance

Question 38

A broker enters into a listing agreement with the seller in which the seller will receive $80,000 from the sale of the lot and the broker will receive any sale proceeds over this amount. This type of listing is?

Answer 38

Net listing

Question 39

And owner list her property for sale with the broker. Another broker, however, finds a buyer for the house. The listing broker did not receive a commission from the sale. The type of listing contract between the owner and the broker could have been?

Answer 39

Open listing

Question 40

An owner who is interested in selling his house is usually concerned about how much money he can get when it sells. A comparative market analysis may help the seller determine a realistic listing price. What is true of a comparative market analysis?

Answer 40

A comparative market analysis contains a compilation of other similar properties that have sold

Question 41

Two different brokerage companies claimed they were entitled to a commission from the sale of a property that was listed by one of the firms under an open listing agreement. The broker who is entitled to the commission is the one who?

Answer 41

Was the procurring cause of the sale