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Principles of Real Estate 1 > Module 11 > Flashcards

Module 11 Flashcards

1
Q

Listing Agreement

A

A contract between a landowner (as Principal) and a licensed real estate broker (as Agent) by which the Broker is employed to sell real estate on the owner’s terms within a given time, for which service the landowner agrees to pay a Commission

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2
Q

Exclusive Right to Sell

A

A listing contract under which the owner appoints a real estate Broker as his or her Exclusive Agent for a designated period of time to sell the property on the owner’s stated terms and agrees to pay the broker a Commission when the property is sold, whether by the broker, the owner or another broker

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3
Q

Comparative Market Analysis

A

CMA - A range of market values for a property given to prospective buyers/sellers by a real estate license holder (not an actual appraisal)

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4
Q

Deceptive Trade Practices Act

A

Part of the Federal Consumer Protection Act, originally passed in 1973 and made specifically applicable to real estate in 1975; prohibits a lengthy number of false, misleading, or deceptive acts or practices

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5
Q

Open Listing

A

A listing contract under which the Broker’s Commission is contingent on the broker producing a ready, willing, and able buyer before the property is sold by the seller or another broker

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6
Q

Net Listing

A

A listing based on the net price the seller will receive if the property is sold. Under a net listing the Broker is free to offer the property for sale at the highest price he or she can get in order to increase the Commission. This type of listing is outlawed in many states (it is not recommended in Texas)

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7
Q

Broker’s Price Opinion

A

An analysis of price used by a broker and typically requested by an attorney, a relocation company, or by a lender

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8
Q

Puffing

A

Exaggerated or superlative comments/opinions not made as representations of fact, and thus not Misrepresentation.

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9
Q

Exclusive Agency

A

A listing contract under which the owner appoints a real estate Broker as his or her Exclusive Agent for a designated period of time to sell the property, on the owner’s stated terms, for a Commission. The owner reserves the right to sell, without paying anyone a commission if he or she sells to a prospect who has not been introduced or claimed by the broker.

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10
Q

Multiple Listing Service

A

An Exclusive Listing (generally an Exclusive Right to Sell) with the additional authority and obligation on the part of the listing Broker to distribute the listing to other brokers in the multiple-listing organization (not a separate type of listing)

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11
Q

Procuring Cause of Sale

A

The effort that brings about the desired result. Under an Open Listing, the Broker who is the procuring cause of the sale receives the Commission. The broker is providing a ready, willing and able buyer at a price and terms acceptable to the seller

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12
Q

Mold

A

Fungi that can be found both indoors and outdoors

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13
Q

The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract

A

Procuring cause of sale

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14
Q

Marketing that uses adjectives and opinions rather than details or facts

A

Puffing

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15
Q

The broker is the only listing broker, and a commission is paid even if the property is sold by the owner

A

Exclusive right to sell

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16
Q

Gives the seller the right to list the property with multiple competing brokers and to sell the property personally without liability for payment of a commission

A

Open listing

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17
Q

The broker’s commission is the difference between the seller’s established net and the price that the buyer is willing to pay

A

New listing

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18
Q

Agency agreements are employment contracts, should be

A

in writing, and establish the Principal-Agent relationship

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19
Q

All listings must be in _______________ to be enforceable.

A

writing

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20
Q

The listing is taken in the name of the _______________ , and all commissions and fees must be paid directly to the broker.

A

Broker

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21
Q

The listing agreement establishes the _______________ relationship between the client and the broker.

A

Principle-agent

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22
Q

_______________are not enforceable against the client.

A

Oral agreement

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23
Q

Listing agreements are _______________ between a seller or landlord and the broker.

A

employment contracts

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24
Q

_______________are the lifeblood of any real estate operation.

A

Listings

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25
Q

The listing agreement is a _______________ relationship between the broker and the client.

A

special agency

26
Q

The real estate broker’s commission is the difference between

A

the minimum net established by the seller and the price that the buyer is willing to pay

27
Q

A benefit of the Exclusive Right to Sell listing agreement is that it helps to avoid the problem of

A

procuring cause lawsuits because the listing broker is the only one with the right to sell the property

28
Q

Under ______________, the seller establishes a minimum acceptable net price

A

Net Listings

29
Q

Listings terminate at any time by

A

Mutual Recission

30
Q

True or False: The open listing gives the seller the right to list the property with multiple competing brokers and to sell the property personally, without liability for payment of a commission.

A

T

31
Q

True or False: In an exclusive agency listing, the seller agrees to list the property with only one broker during the listing term, with the provision that the seller can sell the property independently, without paying a commission.

A

T

32
Q

True or False: Under a net listing, the seller establishes a minimum acceptable net price. The real estate broker’s commission is the difference between the minimum net established by the seller and the price that the buyer is willing to pay.

A

T

33
Q

True or False: Net listings should be qualified so as to assure the principal of not less than his desired price, and to limit the broker to a specified maximum commission.

A

T

34
Q

True or False: The exclusive right to sell and exclusive agency listing agreements usually call for the broker to place the listing into one or more net listings.

A

F

35
Q

True or False: The listing agreement is not an employment contract between a seller or landlord and the broker.

A

F

36
Q

The broker must have a(n) ______________ in writing to enforce payment of commission in court.

A

employment agreement

37
Q

The ______________ prevents brokers from price-fixing and setting standard commission rates across the industry.

A

Sherman Anti-Trust Act

38
Q

Only a ______________ can earn a commission.

A

Broker

39
Q

Commission rates, according to anti-trust laws are always ______________

A

Negotiable

40
Q

The ______________ is the individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract.

A

Procuring cause of sale

41
Q

Only a broker can sue to collect a ______________

A

commission

42
Q

Exceptions to Giving a Seller’s Disclosure Notice include

A

sales by a bankruptcy trustee, from one co-owner to another, and to/from any government entity

43
Q

A property where there has been a murder or an alleged haunting is called a

A

Stigmatized Property

44
Q

______________ are fungi that can be found both indoors and outdoors.

A

Mold

45
Q

Latent or hidden defects such as _______________ or zoning or deed restrictions must be disclosed.

A

Enroachments

46
Q

_______________ can suspend or revoke an agent’s license if the license holder is found guilty of making a material misrepresentation or failing to disclose.

A

TREC

47
Q

In Texas, the state consumer protection law that affects the brokerage business the most is the _______________.

A

DTPA

48
Q

The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract is called the _______________.

A

Procuring Cause of Sale

49
Q

_______________ is a federal law requiring all states to release information to the public about know convicted sex offenders.

A

Megan’s Law

50
Q

Mold remediators must provide a _______________ no later than 10 days after completion of mold removal.

A

Certificate of mold remediation

51
Q

Certain sellers must provide a _______________ before a buyer signs a contract or the buyer may back out of the agreement.

A

Seller’s Disclosure Notice

52
Q

A type of listing that allows the seller to list with as many brokers as the seller chooses or seller the property himself or herself.

A

Open Listing is a type of listing that allows the seller to list with as many brokers as the seller chooses or seller the property himself or herself

53
Q

A listing is terminated by all of the following except:

Death of the Sales Agent
Bankruptcy of the Seller
Fulfillment of purpose
Death of the Broker

A

the death of the sales agent

54
Q

Consumer protection law that allows the purchaser of a good or service to sue the provider for monetary loss due to misrepresentation of the condition of the good or service.

A

DTPA is a consumer protection law that allows the purchaser of a good or service to sue the provider for monetary loss due to misrepresentation of the condition of the good or service

55
Q

In Texas, a seller uses a certain document to tell prospective buyers the seller’s knowledge of the condition of the property.

A

In Texas, a seller uses a Seller’s Disclosure Notice to tell prospective buyers the seller’s knowledge of the condition of the property

56
Q

Which of the following seller is exempt from disclosing the known condition of the property?

An estate sale
A trustee in a foreclosure sale
A builder
none, all must disclose

A

All sellers must disclose.

57
Q

Which listing allows the seller to list with only one broker and the broker gets paid even if the seller sells the property himself or herself?

A

Exclusive Right to Sell allows the seller to list with only one broker and the broker gets paid even if the seller the property himself or herself.

58
Q

When a listing is terminated, the listing agent must do all of the following except:

Terminate the listing in the MLS
Remove signs and lockboxes
Cease all marketing activities
Withdraw the listing in the MLS

A

When a listing is terminated, the listing agent must do all of the following, except withdraw the listing in the MLS.

59
Q

Procuring cause is determined by

A

by a series of uninterrupted events

60
Q

An agent describes a property in an advertisement as having “The best view of downtown!” This is an example of:

A

puffing

61
Q

Commission rates are

A

negotiable

Principles of Real Estate 1 (12 decks)

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