Listing and Buyer Agency Agreements

Question 1

What is a contract of employment between a broker and a principal who is the property owner?

Answer 1

A listing

Question 2

The _____ obligates the owner to pay the broker a _______ when the broker brings a ready, willing, and able buyer who is willing to buy at the listing terms.

Answer 2

Listing agreement; comission

Question 3

True or False: In most states, a listing must be in writing and does not need an expiration date.

Answer 3

False; it must have a fixed expiration date

Question 4

What is the general term range for a listing?

Answer 4

60 - 120 days

Question 5

Who do listings belong to?

Answer 5

Broker, even when they are procured by a salesperson

Question 6

If a salesperson leaves the employment of a broker, what happens to their listing?

Answer 6

The listing remains the property of the broker

Question 7

What is an open listing?

Answer 7

The owner reserves the right to engage additional brokers. The one who sells the property earns the commission.

Question 8

When are open listings typically used?

Answer 8

In commercial property

Question 9

What is the term for a listing where only one broker earns the commission?

Answer 9

Exclusive agency.

Question 10

True or False: In exclusive agency, an owner cannot sell a property by their own efforts without paying a commission.

Answer 10

False

Question 11

True or False: In exclusive right o sell listings, the brokers only gets a commission from a sale if they sell the property.

Answer 11

False. The broker gets the commission no matter who sells (even the owner).

Question 12

What type of listing is illegal or unethical, depending on the state?

Answer 12

Net listings

Question 13

In net listings, the owner receives a stated net amount from a sale, and the broker commission is what amount?

Answer 13

The excess price over the stated net amount

Question 14

In multiple listings, the broker who has the _____ shares the commission in a sale with a cooperating broker who brings ______.

Answer 14

listing; the purchaser

Question 15

In what type of listing do brokers provide minimal work, such as helping the seller or buyer complete a contract-of-sale form, for a fixed fee?

Answer 15

Limited service

Question 16

True or False: The listing price is determined by the broker with market information.

Answer 16

False: It is established by the property owner, with market information provided by the broker.

Question 17

Where are rates of commission specified? How are they determined?

Answer 17

In the listing. They are negotiated with the owner.

Question 18

What does the Sherman Antitrust Act protect against?

Answer 18

Fixed commissions by different brokers in the local market because they are anticompetitive

Question 19

Who collects the commission at closing? What happens to it?

Answer 19

The listing broker collects the commission. That broker shares or splits the commission with the salesperson who procured the listing and with the cooperating broker who brought the buyer.

Question 20

What is a buyer agency agreement?

Answer 20

The buyer agrees to be represented by a broker who seeks a suitable property and owes fiduciary duties to the buyer.

Question 21

Explain dual agency

Answer 21

The same broker represents both parties. All parties must be aware that this arrangement exists and understand that the broker cannot provide loyalty to both parties. A broker may require that different salespersons within the same firm represent buyer and seller.

Question 22

A separate broker is brought in to assist a party in a sale instead of having both buyer and seller represented within the same firm. This is called _____.

Answer 22

Designated Agency

Question 23

A broker does not bring either buyer or seller, but a buyer or seller asks a broker to provide certain services, This is an example of _____.

Answer 23

Transaction brokerage

Question 24

What are the two categories of ways a listing is terminated?

Answer 24

By the parties or by operation of law

Question 25

True or false: A broker may revoke a listing

Answer 25

True, but they may be liable for damages.

Question 26

When both parties agree to terminate a listing, this is called?

Answer 26

Mutual consent

Question 27

True or False: When a property is sold, this is considered termination of a listing by parties.

Answer 27

True

Question 28

When a listing period expires, this is considered termination of a listing by law.

Answer 28

False. It is termination by parties.

Question 29

Can a principal revoke a listing?

Answer 29

Yes, but they may owe commission.

Question 30

What are the four types of termination of a listing by law?

Answer 30

1) Death of either party
2) Bankruptcy of either party
3) Insanity of either party
4) Destruction of the property

Question 31

True or False: a listing may be terminated by law if a party goes bankrupt.

Answer 31

True

Question 32

True or False: Insanity is not a valid reason for termination of a listing by law

Answer 32

False