Practice Flashcards
___ agreements are employment contracts for the personal professional services of the sponsoring broker.
Brokerage
Brokerage agreements employment contracts for…
Personal professional services of the sponsoring broker
___ agreements establish the basic relationships between the parties.
Brokerage
___ agreements provide different levels of rights and responsibilities for the sponsoring broker, and address the essential questions of exclusivity and compensation.
Brokerage
___ agreements are an employment contract between the sponsoring broker and seller.
Listing
A(n) ___ agreement is an employment contract that establishes the rights and responsibilities of the sponsoring broker as an agent for the buyer.
Buyer representation
A(n) ___ contract sets up the relationship between the sponsoring broker and the owner of a rental property.
management
What is the part of a state law that requires that certain instruments, such as deeds, real estate sales contracts, and certain leases, be in writing to be legally enforceable?
Statute of Frauds
According to the Illinois Real Estate License Act, all exclusive brokerage agreements must be…
in writing
According to the Illinois Real Estate License Act, all exclusive brokerage agreements must indicate the required ___ in return for ___.
minimum services in return for compensation.
Race, color, religion, national origin, sex, ancestry, age, marital status, mental & physical disabilities, familial status are all classes protected by the ___.
Illinois Human Rights Act
In Illinois, each brokerage agreement must clearly state that it is illegal for either the owner or sponsoring broker to refuse to display or sell to any person because of their membership in ___.
A protected class
In a(n) ___ listing agreement, one broker is appointed as the seller’s sole agent.
Exclusive Right to Sell
In a(n) ___ listing agreement, the agent is given the exclusive right to market the seller’s property.
Exclusive Right-to-Sell
Bob is an agent who entered into an exclusive right-to-sell listing agreement with a seller named John. Bill is another agent who ends up helping John sell his home while this listing was still in effect. What is Bob entitled to?
Receiving a commission
___ listing agreements allow brokers the greatest opportunity to receive a commission.
Exclusive Right-to-Sell
In a(n) ___ listing agreement, one broker is authorized to act as the exclusive agent to the seller-principal.
Exclusive-agency
In an exclusive-agency listing, the seller retains the right to sell the property without ___ to the listing broker
financial obligation
In an exclusive-agency listing, the seller is only obligated to pay a commission to the listing broker if the listing broker has…
been the procuring cause of a sale
In Illinois, what 9 things must be included in a written exclusive listing agreement?
1) Listing price of property
2) Amount of commission and time of payment
3) Duration of the agreement
4) Names of the broker and seller
5) Identification of the property involved (address or legal description)
6) Duties of the listing broker
7) Minimum services
8) Nondiscrimination statement
9) Statement regarding antitrust
Licensees may use listing agreements with fill-in-the-blank spaces to save time with their clients. True or false?
False
An open listing agreement may also be called a(n) ___ listing in some areas.
nonexclusive
In a(n) ___ listing agreement, the seller has the right to employ any amount of brokers to act as their agent.
Open (or nonexclusive)
In an open listing agreement with multiple brokers acting as agents to the seller, who does the seller owe financial obligation to?
The agent who produces a ready, willing, able buyer
Bob and John are agents who entered into an open listing agreement with their seller, Bill. After entering into this agreement, Bill eventually sells his property to his neice, Sarah, without the help of either broker. Is Bill still obligated to pay a commission to Bob and John?
No
A(n) ___ listing provision specifies that the seller will receive a net amount of money from any sale, and that the broker will receive any excess funds as their commission.
net
A(n) ___ listing provision allows the broker to offer a property at any price greater than the amount the seller wants, and the difference in price is the broker’s fee
net
A net listing can create a conflict of interest with the broker’s ___ to the seller.
Fiduciary responsibility
Net listings are ___ in Illinois due to their potential for fraud.
discouraged
Net listings are illegal in some states. Are they legal in Illinois?
yes
In a(n) ___ listing, the broker is entitled to any amount exceeding the seller’s stated price.
net
In a(n) ___ listing, actual sale price minus the seller-required price equals the broker’s profit.
net
A(n) ___ listing provision gives the broker the right to purchase the listed property at some point in the future
option
An option listing may open the broker to ___ unless the broker fulfills all obligations to the property owner.
fraud
A(n) ___ allows the consumer to purchase a given property.
option contract
A(n) ___ agreement is when the broker agrees to buy the listed property if it fails to sell before the end of the listing period.
guaranteed sale
A(n) ___ clause may be included in an exclusive listing.
multiple listing
A(n) ___ is a marketing organization whose members make their listings available for showing and sale through all other member licensees.
Multiple Listing Service (MLS)
An advantage of a(n) ___ for licensees is that they develop a sizable inventory of properties to be sold, and that they are entitled to a portion of the commission if they either list the property or participate in the sale of another licensee’s listing.
Multiple Listing Service
An advantage of a(n) ___ to sellers is that their property is exposed to a larger market.
Multiple Listing Service
An advantage of a(n) ___ for buyers is that they can browse a variety of properties on the market.
Multiple Listing Service
If an agent delays turning over a listing to a Multiple Listing Service, what two things does the agent need to do for the seller?
Inform the seller and obtain their written consent
Most Multiple Listing Services require that licensees turn over new listings within a specific…
Time frame after obtaining the listing
A licensee must have ___ from the seller in order to include the property in a Multiple Listing Service.
written consent
___ often offer additional information about mortgage loans, real estate taxes & assessments, municipalities, and school districts.
Multiple Listing Services
A(n) ___ is helpful to a licensees who need to make a comparative market analysis (CMA) to determine a particular property’s value before suggesting an appropriate range of prices.
Multiple Listing Service
Paying someone a commission does not create ___ in Illinois
Agency
A few buyers may choose to remain as customers without representation, in Illinois, that lack of agency is now subject to ___, and by statute, a(n) ___ should be provided.
Disclosure; notice of no agency
In Illinois, if nothing is said about agency while a licensee is working with a consumer, licensees are considered to be…
representing the consumer as their designated agent
In Illinois, if a licensee is working with a consumer, however nothing has been said about agency, what obligation do they owe to the client?
Written disclosure of the designated agency relationship
In Illinois, the ___ often pays the fees for both agents in a real estate transaction.
Seller
If a seller pays the fees for both agents in a real estate transaction, those fees are called ___.
Cooperative commissions.
In an Illinois Multiple Listing Service data sheet, cooperative commissions are typically stated as ___ or as a(n) ___.
Co-op X% or as a flat fee
When listing a property for sale, an important safeguard is to check ___ to see who has an interest in the property so that all the appropriate parties are involved.
Title records
The ___ is the backbone of real estate practice.
Listing appointment
The ___ is the meeting of the licensee with a potential client (seller).
Listing appointment
The collection of data on other similar properties is also known as ___ or ___.
Comparables or “comps”
What are the 3 general categories of comparables/ comps?
1) Sold
2) Active
3) Expired
___ comps inform the agent as to what prices are attractive to buyers and what the average neighborhood market time is.
sold
___ comps show an agent what the competition is and if there are any “price points” in the current market
Active
___ are the high or low ends of a range of prices for similar properties.
Price Points
___ comps usually indicate a price that did not attract a buyer
Expired
___ comps are most often an indication of overpricing
Expired
Who determines the final decision about the price of a listed property?
The seller
The final decision about the price of a listed property is determined by the seller with ___ from the agent.
Advice
Is it legal in IL for a licensee to promote a price other than the price the seller agrees to?
No, this violates the Act
At a listing appointment, sellers often need help determining what their ___ is and what their ___ will be.
Equity; net
When a licensee helps calculate what a seller’s equity is and what their net will be, it is important that they stress to the seller that these calculations are only ___
Estimates
Brokers can help sellers determine a listing price for the property by using a(n) ___.
Comparative Market Analysis (CMA)
A(n) ___ analyzes properties similar to the subject property in size, location, and amenities.
Comparative Market Analysis (CMA)
Which provides a more in depth analysis in regards to the value of a property— appraisal or CMA?
Appraisal
A Comparative Market Analysis is based on properties that are ___, ___, or ___.
Sold, active, or expired
What should an Illinois licensee do before creating a CMA?
Review the requirements and restrictions in the Act
A comparative market analysis or broker price opinion needs to be prepared in ___
writing
A comparative market analysis or broker price opinion must be prepared in writing, either on ___ or ___.
Paper or electronically
In IL, what 7 provisions must be included in a CMA or broker price opinion?
1) Intended purpose
2) Brief description of the interest in real estate
3) Methodology used to develop the CMA or price opinion
4) Any assumptions or limiting conditions
5) A disclosure of any interest the broker or managing broker has in the real estate
6) Name, license number, and signature of the broker or managing broker who developed the opinion
7) “Not an appraisal” and “prepared by a licensed real estate broker / managing broker, who is NOT an appraiser”
When preparing a CMA or broker price opinion, the broker or managing broker who developed it must include their ___, ___, and ___.
Name, license number, and signature
When preparing a CMA or broker price opinion, the broker or managing broker who developed it must state in writing that it is not a(n) ___.
Appraisal
When preparing a CMA or broker price opinion, the broker or managing broker who developed it must state in writing it was prepared by a real estate broker, who is NOT a state certified ___.
real estate appraiser
___ prices represent what buyers have been willing to pay for similar properties in the neighborhood.
sold
___ prices often are prices that buyers have not been willing to pay for similar property
Expired
Asking prices ___ than sold prices indicate a slow or declining market.
lower
Asking prices that are ___ than sold prices indicate an optimistic market.
Higher
___ data includes information about the social, economic, governmental, and environmental influences on value.
General (secondary)
___ data is typically not collected by the appraiser.
General (secondary)
___ data details about the subject, comparable, and local market conditions.
Specific (primary)
Specific (primary) data is collected by the ___.
appraiser
___ data describes things that cannot be expressed with a numerical value
Qualitative
___ data includes information that can be expressed as a numerical value
Quantitative
Square feet and dimensions would be considered as ___ data.
Quantitative
The number of rooms a property has is considered as ___ data.
Quantitative
