Listing Contracts Flashcards
To be enforceable, an open listing:
I. Must have a specific termination date and be in writing
II. Must be signed by both buyer and seller
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
D) Neither I nor II
Unlike an exclusive listing, the open listing needs no specific termination date, although it must be in wiring to be enforceable. Only seller signs listings
A copy of the listing agreement must:
I. Be presented to the person signing the agreement
II. Include all the terms and conditions of the sale
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
A) I Only
I. Be presented to the person signing the agreement
While the listing should be as specified as possible, it need not be as definite as the buyer’s offer. The conditions of the sale are in the sales contract.
When a broker has an exclusive right to sell the listing:
I. The seller may sell of his own efforts without the obligation to pay a commission
II. The broker may be entitled to a commission even if the sale does not close due to the seller’s fault
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
B) II Only
II. The broker may be entitled to a commission even if the sale does not close due to the seller’s fault
For example, if the seller did not have complete authority to sell, as where there are several co-tenants, and he can’t get the others to sign, then the broker can get his commission
Which type of listing gives a broker the greatest protection?
A) Open Listing
B) Net Listing
C) Exclusive Right to Sell
D) Exclusive Agency
C) Exclusive Right to Sell
If Sue Salesperson holds two listings, an open listing on one property, and an exclusive listing on another, and one week after both listings expire the two owners get together and exchange properties without previously being shown the property.
A) Sue for full commissions on both
B) Sue for commission on the open listing
C) Demand full commission on the exclusive listing
D) Receive no commission from either listing
D) Receive no commission for either listing
If the property were exchanged during the protection period in the listing then there would be a commission owing
An agent is considered to have earned his commission:
I. Only if a sale is completed and title is transferred
II. If he produces a purchaser who is ready, willing, and able to buy on terms acceptable to the seller
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
B) II Only
II. If he produces a purchaser who is ready, willing, and able to buy on terms acceptable to the seller
Part I, See answer 14
Which of the following statements is true?
I. A listing broker can tell a prospective buyer that the seller will accept less than the asking price if the seller will in fact accept the lower figure
II. A listing broker can refuse to transmit an offer to the seller if he thinks it is too low
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
D) Neither I Nor II
Both are in violations of common law agency duties and the licensing law
Which of the following is true:
I. A broker must get the signatures of all owners on the listing form to be entitled to a commission
II. A broker can’t advertise without the written authorization of the owner
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
B) II Only
II. A broker can’t advertise without the written authorization of the owner
A broker shall get all owners to sign, but if only one co-tenant or spouse signed, the broker could still earn his commission. If he brought a full price offer and the others refused to sign, he has performed the task for which he was hired, and has thus earned his commission from the co-tenant or spouse who signed the listing. The listing is an employment contract not a sales contract.
Under an open listing:
I. More than one broker may attempt to sell the listed property
II. All brokers with open listings on the property will split commission when the property is sold.
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
A) I Only
I. More than one broker may attempt to sell the listed property
Only the broker who is procuring cause is entitled to the commission
When a broker gets a listing:
I. He should put it in writing
II. He must furnish the buyer with a copy of the listing
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
A) I Only
I. He should put it in writing
The buyer should not be showing the actual listing as there may be errors that could mislead. A buyer can be shown a fact sheet that does not contain any confidential data that may appear on the listing such as reason for selling: lost his job
A contract providing for the payment of commission to the listing broker no matter who sells the property is called.
A) Net Listing
B) Open Listing
C) Exclusive Agency Listing
D) Exclusive Right to Sell Listing
D) Exclusive Right to Sell Listing
A broker brought a buyer and seller together a property deal and opened an escrow with the $500.000 deposit. Later the buyer and seller decided to rescind the contract and did so. How much commission would the broker earn?
A) $500
B) $1,250
C) Full commission
D) Nothing
C) Full commission
A property is listed with a broker at $150,000. The owner tells the broker that he is willing to sell for $145,000. A buyer is willing to sign an offer for $145,000, but indicates he will pay up to $150,000. The broker should:
A) Refuse to submit the $145,000
B) Suggest compromise fo $148,500
C) Persuade the buyer to make a $150,000 offer
D) Persuade the buyer to go to another broker
C) Persuade the buyer to make a $150,000 offer
As the seller’s agent the broker should argue for the best price
A broker secured a signed offer with a $500 deposit on the exact terms of a listing but the seller refused to accept it:
A) The broker could maintain a suit for commission in court
B) The buyer could maintain a suit to force the seller to sell since he had signed a listing
C) The seller cannot refuse to accept
D) The broker cannot collect commission in excess of $500
A) The broker could maintain a suit for commission in court
A listing is not an offer to sell and thus the buyer can’t force the seller to sell
A listing agreement which the owner promises to pay a commission under all circumstances of sale except if he sells the property himself is known as:
A) An exclusive right to sell
B) An exclusive agency
C) Net Listing
D) Option
B) An exclusive agency
A listing broker typically can do all of the following except:
A) Conduct “open house”
B) Advertising listed properties
C) Spilt fees with the buyer’s broker without the seller’s knowledge
D) Open escrow
C) Spilt fees with the buyer’s broker without the seller’s knowledge
A listing broker tells a buyer-customer that the seller is under pressure to sell because of business problems. Such disclosure is:
A) Proper if a sale occurs
B) Proper if no specifics of the business are disclosed
C) Improper because of the fiduciary duties owed to the seller
D) Improper because the listing broker owes fiduciary duties to the buyer
C) Improper because of the fiduciary duties owed to the seller
Under HAR Standard Listing Agreement, who pays the state general excise tax on the listing commission?
A) Buyer
B) Seller
C) Broker, unless seller agrees to pay in the listing
D) Title Company
C) Broker, unless seller agrees to pay in the listing
Under the HAR Standard Listing Agreement includes provisions with respect to all of the following except:
A) leasehold disclosure
B) Sex offender registration
C) FIRPTA/HARPTA tax withholding
D) Selection for seller attorney
D) Selection for seller attorney
The HAR Standard Listing Agreement covers all of the following types of properties except:
A) Industrial
B) Residential
C) Land
D) Government
D) Government
All of the following are true except, according to the HAR Exclusive Right to Sell Listing agreement, the broker:
A) May place signs on the property
B) Has the right to take a deposit
C) May advertise the property
D) Agrees to pay the excise tax on commission
D) Agrees to pay the excise tax on commission
According to the HAR Exclusive Right to Sell listing, all of the following are true except:
A) Seller will help prepare property for open houses
B) Seller will allow a lock box on the property
C) Seller will give a list of prospects given by a broker with an earlier listing
D) Seller agrees that broker will be responsible fora care or control of the property
D) Seller agrees that broker will be responsible fora care or control of the property
An owner requests a broker to list his property for sale at $70,000. Upon inspection, the broker believes the property is worth $80,000. The broker should:
A) Get a net listing for the property at $70,000
B) Buy the property himself for $70,000
C) Inform the seller that his property is worth $80,000
D) Suggest that the owner lists the property for $75,000
C) Inform the seller that his property is worth $80,000
A broker agrees to give their sales people 55% of all sales generated by them, One sales person sold a house for $126,000 and the total commission was 5.5%. What will the salesperson earn?
A) $3,119
B) $3,465
C) $3,812
D) $4,158
C) $3,812
A salesperson receives 50% of all commissions. He sells 160 acres for $750 per acre. The commission rates are 10% on the first $50,000; 8% on the next $25,000; and 6% thereafter. What is the salesperson’s commission?
A) $9,700
C) $4,850
C) $5,000
D) $7,700
B) $4,850
A piece of land 400ft. by 550 ft. is for sale. The owner is asking $3,000 per acre. What is the asking price?
A) $22,000
B) $5,051
C) $43,500
D) $15,150
D) $15,150
An agent will usually be entitled to receive a commission if he:
I. Presents a written offer to purchase during the term of a valid general listing
II. Is the procuring cause of the sale
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
B) II Only
II. Is the procuring cause of the sale
- Net Listing - Owner specifies net price for property and any amount over and above the price is commission paid to the selling broker for services. Not allowed on MLS
- Open Listing - Allowed seller to list the property with more than one broker and can sell themselves without liability for commission.
- Exclusive Agency Listing - One broker only for definite time, owner can sell property with no liability
- Exclusive Right to Sell Listing - One broker/seller agent for definite time. Assures commission to broker.
